VALLEY FORGE, Pa.--(BUSINESS WIRE)--#Earnings--UGI Corporation (NYSE: UGI) today reported financial results for the fiscal quarter ended March 31, 2021.

HEADLINES

• Q2 GAAP diluted earnings per share ("EPS") of $2.33 and adjusted diluted EPS of $1.99 compared to GAAP diluted EPS of $1.07 and adjusted diluted EPS of $1.56 in the prior-year period.
• Year-to-date GAAP diluted EPS of $3.77 and adjusted diluted EPS of $3.17 compared to GAAP diluted EPS of $2.08 and adjusted diluted EPS of $2.73 in the prior-year period.
• Q2 reportable segments earnings before interest expense and income taxes¹ ("EBIT") of $630 million compared to $527 million in the prior-year period.
• Strong results across the entire business, with each business unit delivering increased EBIT vs. prior year. These improvements were driven by colder than prior-year weather in all of UGI's service territories, higher average LPG unit margin due to strong margin management, effective operating expense management and the increase in base rates at UGI Utilities that went into effect on January 1, 2021.
• Year-to-date cash flow from operating activities grew by 15% compared to the prior-year period, demonstrating continued cash flow stability and growth.
• On April 12, 2021, UGI announced that John L. Walsh, President and CEO, will retire on June 25, 2021, to be succeeded by Roger Perreault, current EVP, Global LPG.
• On May 5, 2021, UGI's Board of Directors approved an increase to its quarterly dividend to $0.345 per share marking the 34th consecutive year of annual dividend increases.
• Increased Fiscal 2021 adjusted EPS guidance to a range of $2.90 - $3.00² per share due to strong year-to-date performance, inclusive of the anticipated negative impact of the COVID-19 pandemic and positive tax benefits.

ESG HIGHLIGHTS

• On January 29, 2021, UGI created a new employee resource group, Black Organization & Leadership Development (BOLD), as a part of its continued commitment to fostering a diverse and inclusive company.
• On April 6, 2021, UGI announced that UGI Utilities and Energy Services had joined the Natural Gas Supply Collaborative (NGSC) to further enhance and expand UGI's ESG initiatives aimed at lowering methane and greenhouse gas emissions, enhancing system integrity and improving safety.
• On April 19, 2021, UGI hired a VP, Talent Management and Diversity & Inclusion to support the advancement of Belonging, Inclusion, Diversity & Equity (BIDE).
• On May 4, 2021, UGI announced that Energy Services entered into definitive agreements to develop dairy farm digester projects to produce renewable natural gas in upstate New York, through its investment in Cayuga RNG.

"UGI delivered record second quarter results with GAAP diluted EPS of $2.33 and adjusted diluted EPS of $1.99," said John L. Walsh, President and Chief Executive Officer of UGI Corporation. "The strong performance clearly demonstrates the depth of our diversified set of businesses. While we benefited from weather that was colder than the prior year, weather was still warmer than normal, which only further highlights the strength of our performance. This strong operating performance was fueled by higher margins across our businesses, new base rates in our Gas Utility that went into effect on January 1st, and continued contributions from our growth drivers and recent investments. These factors more than offset the headwinds from the COVID-19 pandemic. We benefited greatly from the strength of our strategic assets and diversified portfolio, disciplined capital allocation strategy and robust execution capabilities. As a result of the strong performance in the first half of the fiscal year, we have increased our fiscal 2021 guidance to a range of $2.90 - $3.00² per share.

“During the quarter, our businesses continued to make progress on crucial initiatives. AmeriGas and UGI International remain on pace to deliver total ongoing annual benefits of more than $140 million and €30 million, respectively, by the end of fiscal year 2022. The Midstream and Marketing team, through a joint venture, completed the acquisition of Pine Run Midstream, which operates 43-miles of dry gas gathering pipeline and compression assets. This transaction was immediately accretive to earnings and further strengthened our foundation, which enables us to provide low-cost, environmentally responsible energy to customers. We also made significant progress in developing an exciting range of renewable solutions opportunities, with particular emphasis on renewable natural gas, bioLPG and renewable DME. These projects have strong return profiles, with attractive unlevered IRRs. Earlier this week, we announced that UGI Energy Services entered into definitive agreements to produce renewable natural gas in upstate New York, further leveraging our GHI platform.

"We remain on track to close on the Mountaineer transaction in the second half of the calendar year. As previously announced, this transaction will be financed through a combination of equity-linked securities, existing liquidity and debt. This week, we received firm commitments associated with the debt financing portion of the transaction.

"At UGI, we continue to focus on disciplined execution of our strategy and delivering our long-term commitments of 6-10% EPS growth and 4% dividend growth. We are excited about the opportunities for growth that exist and are committed to creating value for our customer, shareholders and employees."

KEY DRIVERS OF SECOND QUARTER RESULTS

• AmeriGas: Retail volume increased 5% on weather that was 8.4% colder than the prior-year period, National Accounts volume increased 15%; higher average LPG unit margins due to effective margin management
• UGI International: Retail volume increased 5% on weather that was 11.8% colder than the prior-year period; higher average LPG unit margins due to effective margin management
• Midstream & Marketing: Higher EBIT from natural gas, peaking and capacity management primarily attributable to weather that was 11.7% colder than the prior-year period; continued build out of the Texas Creek gathering assets
• UGI Utilities: Core market volumes increased 15% primarily due to weather that was 13.3% colder than the prior-year period; higher total margin largely driven by the increase in base rates and higher margin from large firm customers

EARNINGS CALL AND WEBCAST

UGI Corporation will hold a live Internet Audio Webcast of its conference call to discuss the quarterly earnings and other current activities at 9:00 AM ET on Thursday, May 6, 2021. Interested parties may listen to the audio webcast both live and in replay on the Internet at https://www.ugicorp.com/investors/financial-reports/presentations or by visiting the company website https://www.ugicorp.com and clicking on Investors and then Presentations. A telephonic replay will be available from 12:00 PM ET on May 6 through 11:59 PM ET May 13. The replay may be accessed toll free at 855-859-2056 and internationally at +1 404-537-3406, conference ID 2876774.

ABOUT UGI

UGI Corporation is a distributor and marketer of energy products and services. Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania, distributes LPG both domestically (through AmeriGas) and internationally (through UGI International), manages midstream energy assets in Pennsylvania, Ohio, and West Virginia and electric generation assets in Pennsylvania, and engages in energy marketing, including renewable natural gas, in twelve states and the District of Columbia and internationally in France, Belgium, the Netherlands and the UK.

Comprehensive information about UGI Corporation is available on the Internet at https://www.ugicorp.com.

USE OF NON-GAAP MEASURES

Management uses "adjusted diluted earnings per share," a non-GAAP financial measure, when evaluating UGI's overall performance. Management believes that this non-GAAP measure provides meaningful information to investors about UGI’s performance because it eliminates the impact of (1) gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions and (2) other significant discrete items that can affect the comparison of period-over-period results. Volatility in net income at UGI can occur as a result of gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions but included in earnings in accordance with U.S. generally accepted accounting principles ("GAAP").

Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures.

Tables on the last page reconcile net income attributable to UGI Corporation, the most directly comparable GAAP measure, to adjusted net income attributable to UGI Corporation, and diluted earnings per share, the most comparable GAAP measure, to adjusted diluted earnings per share, to reflect the adjustments referred to above.

¹ Reportable segments earnings before interest expense and income taxes represents an aggregate of our operating segment level EBIT as determined in accordance with GAAP.

² Because we are unable to predict certain potentially material items affecting diluted earnings per share on a GAAP basis, principally mark-to-market gains and losses on commodity and certain foreign currency derivative instruments we cannot reconcile fiscal year 2021 adjusted diluted earnings per share, a non-GAAP measure, to diluted earnings per share, the most directly comparable GAAP measure, in reliance on the “unreasonable efforts” exception set forth in SEC rules.

USE OF FORWARD-LOOKING STATEMENTS

This press release contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended). Management believes that these are reasonable as of today’s date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management’s control. You should read UGI’s Annual Report on Form 10-K for a more extensive list of factors that could affect results. Among them are adverse weather conditions (including increasingly uncertain weather patterns due to climate change) and the seasonal nature of our business; cost volatility and availability of all energy products, including propane, natural gas, electricity and fuel oil as well as the availability of LPG cylinders; increased customer conservation measures; the impact of pending and future legal or regulatory proceedings, inquiries or investigations, liability for uninsured claims and for claims in excess of insurance coverage; domestic and international political, regulatory and economic conditions in the United States and in foreign countries, including the current conflicts in the Middle East and the withdrawal of the United Kingdom from the European Union, and foreign currency exchange rate fluctuations (particularly the euro); the timing of development of Marcellus and Utica Shale gas production; the availability, timing and success of our acquisitions, commercial initiatives and investments to grow our business; our ability to successfully integrate acquired businesses and achieve anticipated synergies; the interruption, disruption, failure, malfunction, or breach of our information technology systems, including due to cyber-attack; the inability to complete pending or future energy infrastructure projects; our ability to achieve the operational benefits and cost efficiencies expected from the completion of pending and future transformation initiatives including the impact of customer disruptions resulting in potential customer loss due to the transformation activities; uncertainties related to the global pandemics, including the duration and/or impact of the COVID-19 pandemic; and the extent to which we are able to utilize certain tax benefits currently available under the CARES Act and similar tax legislation and whether such benefits will remain available in the future.

SEGMENT RESULTS ($ in millions, except where otherwise indicated)

• Retail gallons sold increased 5% largely due to weather that was 8.4% colder than the prior-year period, higher Cylinder Exchange and National Account volumes, partially offset by structural conservation and other residual volume loss, and the impact of COVID-19 on commercial and motor fuel volumes.
• Total margin increased $32 million primarily attributable to higher retail propane volumes ($20 million) and higher average retail unit margins ($15 million), partially offset by lower non-propane margin attributable to fees and services ($3 million) compared to the prior-year period.
• Operating and administrative expenses increased $2 million largely due to higher incentive compensation, higher advertising costs and higher telecommunications expenses, partially offset by lower general insurance costs.
• Operating income and earnings before interest expense and income taxes each increased $33 million reflecting the higher total margin, slightly offset by the higher operating and administrative expenses.

UGI International base-currency results are translated into U.S. dollars based upon exchange rates experienced during the reporting periods. Differences in these translation rates affect the comparison of line item amounts presented in the table above. The functional currency of a significant portion of our UGI International results is the euro and, to a much lesser extent, the British pound sterling. During the 2021 and 2020 three-month periods, the average unweighted euro-to-dollar translation rates were approximately $1.21 and $1.10, respectively, and the average unweighted British pound sterling-to-dollar translation rates were approximately $1.38 and $1.28, respectively.

• Retail volume increased 5% largely due to weather that was 11.8% colder than the prior-year period and increased cylinder volume, partially offset by lower wholesale volumes from one-off spot transactions in the prior-year period and the continued impact of the COVID-19 pandemic.
• Total margin increased $48 million compared to the prior-year period reflecting increases in bulk and cylinder volumes, higher average LPG unit margins attributable to margin management efforts, and the translation effects of the stronger euro.
• The increase in operating and administrative expenses largely reflects the translation effects of the stronger euro.
• Operating income increased $30 million compared to the prior-year period reflecting the translation effects of the stronger euro of $13 million.
• Earnings before interest expense and income taxes increased $23 million compared to the prior-year period due to the higher operating income, partially offset by lower pre-tax realized gains on foreign currency exchange contracts ($7 million).

• Temperatures were 5.8% warmer than normal but 11.7% colder than the prior-year period.
• Total margin increased $18 million primarily reflecting increased margins from natural gas marketing activities ($10 million), renewable energy marketing activities ($6 million), capacity management ($6 million), and natural gas gathering activities ($4 million) compared to the prior-year period. The effect of these increases was partially offset by the absence of margins attributable to HVAC and Conemaugh ($7 million) that were divested in Fiscal 2020.
• Operating and administrative expenses decreased $6 million largely due to lower expenses attributable to the divested assets, partially offset by higher expenses for new assets placed into service and acquisitions.
• Operating income increased due to higher total margin and lower operating and administrative expenses, partially offset by an adjustment to the contingent consideration related to the GHI acquisition ($4 million).
• Earnings before interest expense and income taxes increased $21 million compared to the prior-year period due to the higher operating income and equity earnings from the investment in Pine Run Midstream.

• Gas Utility service territory experienced temperatures that was 13.3% colder than the prior-year period.
• Core market volumes increased due to the colder weather, customer growth, and higher average use per customer, partially offset by volume reductions attributable to COVID-19.
• Total Gas Utility distribution throughput increased 2 bcf reflecting higher core market and large firm delivery service volumes, partially offset by lower interruptible delivery service volumes.
• Total margin increased $31 million primarily due to higher total margin from Gas Utility customers ($30 million), largely driven by the increase in volumes and gas base rates which became effective January 1, 2021.
• Operating income increased reflecting the higher total margin, partially offset by higher depreciation expense ($3 million) and slightly higher operating and administrative expenses. The increased depreciation expense is attributable to continued distribution system and IT capital expenditure activity.

INVESTOR RELATIONS
610-337-1000
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Arnab Mukherjee, ext. 1004
Shelly Oates, ext. 3202

• Reported net income attributable to HollyFrontier stockholders of $148.2 million, or $0.90 per diluted share, and adjusted net loss of $(85.3) million, or $(0.53) per diluted share, for the first quarter

• Reported EBITDA of $281.3 million and Adjusted EBITDA of $47.3 million for the first quarter

DALLAS--(BUSINESS WIRE)--HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the “Company”) today reported first quarter net income attributable to HollyFrontier stockholders of $148.2 million, or $0.90 per diluted share, for the quarter ended March 31, 2021, compared to a net loss of $(304.6) million, or $(1.88) per diluted share, for the quarter ended March 31, 2020.

The first quarter results reflect special items that collectively increased net income by a total of $233.5 million. On a pre-tax basis, these items include a lower of cost or market inventory valuation adjustment of $200.0 million and a $51.5 million gain on a tariff settlement, partially offset by severance costs of $7.8 million related to restructuring in our Lubricants and Specialty Products segment and charges related to the Cheyenne Refinery conversion to renewable diesel production, including decommissioning charges of $8.3 million, last-in, first-out (“LIFO”) inventory liquidation costs of $0.9 million and severance charges totaling $0.5 million. Excluding these items, net loss for the current quarter was $(85.3) million ($(0.53) per diluted share) compared to net income of $86.5 million ($0.53 per diluted share) for the first quarter of 2020, which excludes certain items that collectively decreased net income by $391.1 million.

HollyFrontier’s President & CEO, Michael Jennings, commented, “A record earnings quarter in our Lubricants and Specialties business, as well as steady performance from HEP, helped offset the impacts of heavy planned maintenance and winter storm Uri on our refining segment during the quarter. As we enter the summer, our focus remains on safely completing the build-out of our Renewables business on schedule.”

The Refining segment reported Adjusted EBITDA of $(65.8) million for the first quarter of 2021 compared to $175.9 million for the first quarter of 2020. This decrease was driven by the impacts of planned maintenance and winter storm Uri on our operations and lower realized margins along with higher laid-in crude costs, which resulted in a consolidated refinery gross margin of $8.00 per produced barrel, a 28% decrease compared to $11.06 for the first quarter of 2020. Crude oil charge averaged 348,170 barrels per day (“BPD”) for the current quarter compared to 392,630 BPD for the first quarter of 2020.

The Lubricants and Specialty Products segment reported EBITDA of $87.1 million for the first quarter of 2021 compared to $32.3 million in the first quarter of 2020. Excluding the $7.8 million related to restructuring in our Lubricants and Specialty Products segment, Adjusted EBITDA was $94.9 million. This increase was driven by strong base oil margins in the first quarter of 2021.

Holly Energy Partners, L.P. (“HEP”) reported EBITDA of $96.2 million for the first quarter of 2021 compared to $64.4 million in the first quarter of 2020.

For the first quarter of 2021, net cash provided by operations totaled $62.3 million. During the period, HollyFrontier declared and paid a dividend of $0.35 per share to shareholders totaling $57.7 million. At March 31, 2021, the Company's cash and cash equivalents totaled $1,193.4 million, a $174.9 million decrease over cash and cash equivalents of $1,368.3 million at December 31, 2020. Additionally, the Company's consolidated debt was $3,126.1 million. The Company’s debt, exclusive of HEP debt, which is nonrecourse to HollyFrontier, was $1,737.8 million at March 31, 2021.

The Company has scheduled a webcast conference call for today, May 5, 2021, at 8:30 AM Eastern Time to discuss first quarter financial results. This webcast may be accessed at: https://event.on24.com/wcc/r/3081846/EF98CFA2BFD7FDCC6F3E486A1640262F. An audio archive of this webcast will be available using the above noted link through May 19, 2021.

HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HollyFrontier owns and operates refineries located in Kansas, Oklahoma, New Mexico and Utah and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. In addition, HollyFrontier produces base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and exports products to more than 80 countries. HollyFrontier also owns a 57% limited partner interest and a non-economic general partner interest in Holly Energy Partners, L.P., a master limited partnership that provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HollyFrontier Corporation subsidiaries.

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are “forward-looking statements” based on management’s beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings with the Securities and Exchange Commission. Forward-looking statements use words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “intend,” “should,” “would,” “could,” “believe,” “may,” and similar expressions and statements regarding our plans and objectives for future operations. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that our expectations will prove correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Any differences could be caused by a number of factors, including, but not limited to, the Company’s ability to successfully close the pending Puget Sound refinery transaction, or, once closed, integrate the operation of the Puget Sound refinery with our existing operations; the extraordinary market environment and effects of the COVID-19 pandemic, including a significant decline in demand for refined petroleum products in markets that the Company serves; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products or lubricant and specialty products in the Company’s markets; the spread between market prices for refined products and market prices for crude oil; the possibility of constraints on the transportation of refined products or lubricant and specialty products; the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, whether due to infection in the workforce or in response to reductions in demand; the effects of current and/or future governmental and environmental regulations and policies, including the effects of current and/or future restrictions on various commercial and economic activities in response to the COVID-19 pandemic; the availability and cost of financing to the Company; the effectiveness of the Company’s capital investments and marketing strategies; the Company’s efficiency in carrying out and consummating construction projects, including the Company's ability to complete announced capital projects, such as the conversion of the Cheyenne Refinery to a renewable diesel facility and the construction of the Artesia renewable diesel unit and pretreatment unit, on time and within budget; the Company's ability to timely obtain or maintain permits, including those necessary for operations or capital projects; the ability of the Company to acquire refined or lubricant product operations or pipeline and terminal operations on acceptable terms and to integrate any existing or future acquired operations; the possibility of terrorist or cyberattacks and the consequences of any such attacks; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States; continued deterioration in gross margins or a prolonged economic slowdown due to the COVID-19 pandemic could result in an impairment of goodwill and/or additional long-lived asset impairments; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s Securities and Exchange Commission filings. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Segment Information

Our operations are organized into three reportable segments, Refining, Lubricants and Specialty Products and HEP. Our operations that are not included in the Refining, Lubricants and Specialty Products and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column.

The Refining segment includes the operations of our El Dorado, Tulsa, Navajo, Woods Cross Refineries and HollyFrontier Asphalt Company LLC (“HFC Asphalt”) (aggregated as a reportable segment). Refining activities involve the purchase and refining of crude oil and wholesale and branded marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma. The Refining segment also included the operations of the Cheyenne Refinery until it permanently ceased petroleum refining operations during the third quarter of 2020.

The Lubricants and Specialty Products segment involves Petro-Canada Lubricants Inc.’s (“PCLI”) production operations, located in Mississauga, Ontario, that include lubricant products such as base oils, white oils, specialty products and finished lubricants and the operations of our Petro-Canada Lubricants business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China. Additionally, the Lubricants and Specialty Products segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America, the operations of Red Giant Oil, one of the largest suppliers of locomotive engine oil in North America and the operations of Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe.

The HEP segment involves all of the operations of HEP, a consolidated variable interest entity, which owns and operates logistics assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units in the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. The HEP segment also includes a 75% interest in UNEV Pipeline, LLC (an HEP consolidated subsidiary), and a 50% ownership interest in each of Osage Pipeline Company, LLC, Cheyenne Pipeline LLC and Cushing Connect Pipeline & Terminal LLC. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. Due to certain basis differences, our reported amounts for the HEP segment may not agree to amounts reported in HEP's periodic public filings.

Refining Segment Operating Data

The following tables set forth information, including non-GAAP (Generally Accepted Accounting Principles) performance measures about our refinery operations. Refinery gross and net operating margins do not include the non-cash effects of long-lived asset impairment charges, lower of cost or market inventory valuation adjustments and depreciation and amortization. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

As of March 31, 2021, our refinery operations included the El Dorado, Tulsa, Navajo and Woods Cross Refineries. In the third quarter of 2020, we permanently ceased petroleum refining operations at our Cheyenne Refinery and subsequently began converting certain assets at our Cheyenne Refinery to renewable diesel production. The disaggregation of our refining geographic operating data is presented in two regions, Mid-Continent and West, to best reflect the economic drivers of our refining operations. The Mid-Continent region continues to be comprised of the El Dorado and Tulsa Refineries, and the new West region is comprised of the Navajo and Woods Cross Refineries. Refining segment operating data for the three months ended March 31, 2020 has been retrospectively adjusted to reflect the revised regional groupings.

Lubricants and Specialty Products Segment Operating Data

The following table sets forth information about our lubricants and specialty products operations.

Supplemental financial data attributable to our Lubricants and Specialty Products segment is presented below:

Richard L. Voliva III, Executive Vice President and
Chief Financial Officer
Craig Biery, Vice President,
Investor Relations
HollyFrontier Corporation
214-954-6510

BOGOTA, Colombia--(BUSINESS WIRE)--GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Ecuador, Chile, Brazil and Argentina today announced its Board of Directors has declared its quarterly cash dividend of $0.0205 per share ($1.25 million in the aggregate) payable on May 28, 2021 to the shareholders of record at the close of business on May 17, 2021.

GeoPark is on track to deliver strong operational and financial performance and free cash flow generation while remaining committed to returning value to its shareholders.

Additional information about GeoPark can be found in the “Investor Support” section on the website at www.geo-park.com.

Certain amounts included in this press release have been rounded for ease of presentation.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’ among others.

Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including expected future financial performance and free cash flow generation. Forward-looking statements are based on management’s beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors.

Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances, or to reflect the occurrence of unanticipated events. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see filings with the U.S. Securities and Exchange Commission (SEC).

INVESTORS:
Stacy Steimel
Shareholder Value Director
T: +562 2242 9600
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Miguel Bello
Market Access Director
T: +562 2242 9600
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Diego Gully
Investor Relations Director
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MEDIA:
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Proceeds to be used for general corporate purposes, including clean energy growth initiatives, potential future acquisitions and reduction of net leverage

AKRON, Ohio--(BUSINESS WIRE)--$BW #BabcockWilcox--Babcock & Wilcox Enterprises, Inc. ("B&W" or the "Company") (NYSE: BW) announced the pricing of its underwritten registered public offering of 4,000,000 shares of its 7.75% Series A Cumulative Perpetual Preferred Stock, par value $0.01 per share with a liquidation preference of $25.00 per share (the “Preferred Stock”), at an offering price of $25.00, for gross proceeds of approximately $100 million before deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. B&W has granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of the Preferred Stock in connection with the offering. The offering is expected to close on or about May 7, 2021, subject to satisfaction of customary closing conditions.

The Company has applied to list the Preferred Stock on the NYSE under the symbol “BW PRA” and expects the Preferred Stock to begin trading within 30 business days of the closing date of this offering, if approved.

Dividends on the Preferred Stock will be paid when, as and if declared by the Company’s Board of Directors at the annual rate of 7.75% of the $25.00 liquidation preference per year (equivalent to $1.9375 per year). Dividends on the Preferred Stock will be payable quarterly when, as and if declared in arrears on March 31, June 30, September 30 and December 31 of each year. The first dividend on the Preferred Stock, when, as and if declared, will be paid on June 30, 2021, for less than a full quarter after the initial issuance of the Preferred Stock and covering the period from the first date the Preferred Stock is issued and sold through, but not including, June 30, 2021.

B&W intends to use the net proceeds of the offering for general corporate purposes, including clean energy growth initiatives, potential future acquisitions and reduction of net leverage.

B. Riley Securities, Inc. is serving as the lead book-running manager for the offering. D.A. Davidson & Co., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., National Securities Corporation and William Blair & Company are acting as joint book-running managers for the offering. Kingswood Capital Markets, division of Benchmark Investments, Inc. is acting as lead manager for the offering. Aegis Capital Corp., Boenning & Scattergood, Inc., Huntington Securities, Inc., Incapital LLC and Wedbush Securities Inc. are acting as co-managers for the offering.

The offering of these securities is being made pursuant to an effective shelf registration statement on Form S-3, which was initially filed with the Securities and Exchange Commission (“SEC”) on April 22, 2021 and declared effective by the SEC on April 30, 2021. The offering is being made only by means of the prospectus supplement dated May 3, 2021 and the accompanying base prospectus dated April 30, 2021, as may be further supplemented by any free writing prospectus and/or pricing supplement that the Company may file with the SEC. Copies of the preliminary prospectus supplement and the accompanying base prospectus and any free writing prospectus and/or pricing supplement for the offering may be obtained on the SEC's website at www.sec.gov, or by contacting B. Riley Securities by telephone at (703) 312-9580, or by email at This email address is being protected from spambots. You need JavaScript enabled to view it.. The final terms of the proposed offering will be disclosed in a final prospectus supplement to be filed with the SEC.

The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

Statements in this press release that are not descriptions of historical facts are forward-looking statements that are based on management's current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of the date of this press release. Such forward looking statements include, but are not limited to, statements regarding the Company's public offering of Preferred Stock and intended use of net proceeds. Factors that could cause such actual results to differ materially from those contemplated or implied by such forward-looking statements include, without limitation, the risks associated with the unpredictable and ongoing impact of the COVID-19 pandemic and other risks described from time to time in the Company's periodic filings with the SEC, including, without limitation, the risks described in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 8, 2021, under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" (as applicable) and the prospectus supplement related to the offering of the Preferred Stock. These factors should be considered carefully, and the Company cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

About Babcock & Wilcox Enterprises

Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises is a global leader in energy and environmental technologies and services for the power and industrial markets.

Investor Contact:
Megan Wilson
Vice President, Corporate Development & Investor Relations
Babcock & Wilcox Enterprises
704.625.4944 | This email address is being protected from spambots. You need JavaScript enabled to view it.

Media Contact:
Ryan Cornell
Public Relations
Babcock & Wilcox Enterprises
330.860.1345 | This email address is being protected from spambots. You need JavaScript enabled to view it.

Strong Free Cash Flow Generation

Funds Increased Development and Exploration Program,

Debt Reduction and Balance Sheet Strengthening,

and Cash Dividends to Shareholders

BOGOTA, Colombia--(BUSINESS WIRE)--GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Ecuador, Chile, Brazil and Argentina reports its consolidated financial results for the three-month period (“First Quarter” or “1Q2021”). A conference call to discuss 1Q2021 financial results will be held on May 6, 2021 at 10:00 am (Eastern Daylight Time).

All figures are expressed in US Dollars and growth comparisons refer to the same period of the prior year, except when specified. Definitions and terms used herein are provided in the Glossary at the end of this document. This release does not contain all of the Company’s financial information and should be read in conjunction with GeoPark’s consolidated financial statements and the notes to those statements for the period ended March 31, 2021, available on the Company’s website.

FIRST QUARTER 2021 HIGHLIGHTS

Strong Free Cash Flow from Profitable Low-Breakeven Production

• Consolidated oil and gas production of 38,131 boepd
• Revenue of $146.6 million
• Operating Profit of $15.9 million / Net Loss of $10.3 million
• Operating Netback of $79.4 million / Adjusted EBITDA of $66.5 million (both including protective cash hedge losses of $20.6 million)
• Capital expenditures of $20.3 million
• Every $1 invested yielded $3.9 in Operating Netback

Successful Debt Reduction

• $187.6 million of cash & cash equivalents as of March 31, 2021
• $75 million oil prepayment facility, with $50 million committed and no amounts drawn
• $106.2 million in uncommitted credit lines
• Strategic deleveraging executed in April 2021 resulted in significant debt reduction with extended maturities and lower cost of debt

Self-Funded, Expanded 2021 Work Program

• Full-year 2021 work program of $130-150 million, targeting 41,000-43,000¹ boepd average production and operating netbacks of $330-370 million assuming Brent at $50-55 per bbl²
• Flexible to quickly adapt to any oil price scenario

Shareholder Value Returns

• Quarterly Dividend of $0.0205 per share ($1.25 million), paid on April 13, 2021
• Quarterly Dividend of $0.0205 per share ($1.25 million), to be paid on May 28, 2021
• Resumed discretionary share buyback program, having acquired 119,289 shares for $1.2 million since November 6, 2020, while executing self-funded and flexible work programs, and paying down debt

James F. Park, Chief Executive Officer of GeoPark, said: “Thanks again to the GeoPark team for its relentless discipline and for delivering another period of important achievements, driving forward our performance and improving our Company overall. Our powerful cash generation was again demonstrated by being able to simultaneously carry out three key initiatives: expand our exploration and development investment program; pay down debt, extend maturities and strengthen our balance sheet; and return cash to our shareholders. We appreciate the support of the investment community which has backed our plan and efforts over many years – including just awarding us the lowest yield ever for any B-rated issue in Latin America. With our foundational low-cost, low-risk, big-upside asset inventory, our strong and consistently successful oil and gas operating team, and our ahead-of-the-game SPEED (ESG+) strategy, we are looking forward to the remainder of 2021 and the abundant opportunities ahead.”

CONSOLIDATED OPERATING PERFORMANCE

Key performance indicators:

STRATEGIC DELEVERAGING (APRIL 2021)

In April 2021 GeoPark executed a series of transactions³ that included a successful tender to purchase $255 million of the 2024 Notes that was funded with a combination of cash in hand and a $150 million new issuance from the reopening of the 2027 Notes. The tender also included a consent solicitation to align covenants of the 2024 Notes to those of the 2027 Notes. The new notes offering and the tender offer closed on April 23 and April 26, respectively.

The reopening of the 2027 Notes was priced above par at 101.875%, representing a yield to maturity of 5.117%. This yield reflects a negative concession of 2.3 basis points relative to the yield to maturity of the day before pricing. Total demand reached over $780 million at its peak and ended at over $540 million. The transaction was oversubscribed by more than 3.5 times from diversified, top tier institutional investors.

Rationale and Benefits

• Reduced total financial debt by $105 million
• Annual interest savings of approximately $9 million
• Improved financial profile by extending debt maturities by 2.3 years
• Flexible debt structure with 25% of outstanding financial debt maturing in September 2024 (callable from September 2021) and the remaining 75% of financial debt maturing in January 2027 (callable from January 2024)
• Alignment of covenants

For further details, please refer to the press release published on April 22, 2021.

Production: Oil and gas production in 1Q2021 decreased by 17% to 38,131 boepd from 45,731 boepd in 1Q2020, due to limited drilling and maintenance activities during 2020 in Colombia, Chile and Argentina, as part of the Company’s risk-managed response to preserve shareholder value and to minimize contractor and employee activity in the fields due to the lower oil price environment and the pandemic. Oil represented 86% and 89% of total reported production in 1Q2021 and 1Q2020, respectively.

For further details, please refer to the 1Q2021 Operational Update published on April 13, 2021.

Reference and Realized Oil Prices: Brent crude oil prices averaged $61.1 per bbl during 1Q2021, $10.3 per bbl higher than 1Q2020 levels. However, the consolidated realized oil sales price averaged $49.8 per bbl in 1Q2021, $12.8 per bbl higher than the $37.0 per bbl in 1Q2020, reflecting a lower local marker differential in Colombia and improved commercial and transportation discounts.

The tables below provide a breakdown of reference and net realized oil prices in Colombia, Chile and Argentina in 1Q2021 and 1Q2020:

(*) Specified Brent oil price may differ in each country as sales are priced with different Brent reference prices.

Revenue: Consolidated revenue increased by 10% to $146.6 million in 1Q2021, compared to $133.2 million in 1Q2020 reflecting higher oil prices, partially offset by lower production and deliveries.

Sales of crude oil: Consolidated oil revenue increased by 11% to $137.3 million in 1Q2021, driven by a 34% increase in realized oil prices and a 17% decrease in oil deliveries due to temporary shut-ins and limited drilling and maintenance activity in 2020. Oil revenue was 94% and 93% of total revenue in 1Q2021 and 1Q2020, respectively.

• Colombia: In 1Q2021, oil revenue increased by 15% to $130.1 million reflecting higher realized oil prices and lower oil deliveries. Realized prices increased by 37% to $49.7 per bbl due to higher Brent oil prices while oil deliveries decreased by 17% to 30,087 bopd. Earn-out payments remained flat at $4.5 million in 1Q2021, compared to $4.6 million in 1Q2020.
• Chile: In 1Q2021, oil revenue decreased by 35% to $1.4 million, due to lower volumes sold, partially offset by higher oil prices. Oil deliveries decreased by 38% to 292 bopd. Realized oil prices increased by 6% to $51.9 per bbl, in line with higher Brent prices, partially offset by higher discounts.
• Argentina: In 1Q2021, oil revenue decreased by 26% to $5.8 million due to lower deliveries and lower realized oil prices. Oil deliveries decreased by 23% to 1,267 bopd. Realized oil prices decreased by 2% to $50.6 per bbl reflecting local market conditions.

Sales of gas: Consolidated gas revenue remained flat at $9.3 million in 1Q2021 compared to $9.4 million in 1Q2020 reflecting 8% higher deliveries and 8% lower gas prices. Gas revenue was 6% and 7% of total revenue in 1Q2021 and 1Q2020, respectively.

• Chile: In 1Q2021, gas revenue decreased by 34% to $3.2 million reflecting lower gas prices and lower gas deliveries. Gas prices were 23% lower, at $2.9 per mcf ($17.1 per boe) in 1Q2021. Gas deliveries fell by 14% to 12,492 mcfpd (2,082 boepd).
• Brazil: In 1Q2021, gas revenue increased by 70% to $4.7 million, due to higher gas deliveries and higher gas prices. Gas deliveries increased by 67% from the Manati gas field (GeoPark non-operated, 10% WI) to 10,374 mcfpd (1,789 boepd). Gas prices increased by 3% to $4.9 per mcf ($29.3 per boe) due to the impact of the annual price inflation adjustment effective January 2021, which was partially offset by the devaluation of the local currency.
• Argentina: In 1Q2021, gas revenue decreased by 26% to $0.8 million, resulting from lower gas prices, and lower deliveries. Gas prices decreased by 19% to $2.2 per mcf ($13.4 per boe) due to local market conditions while deliveries decreased by 7% to 4,213 mcfpd (702 boepd).

Commodity Risk Management Contracts: Consolidated commodity risk management contracts amounted to a $47.3 million loss in 1Q2021, compared to a $32.0 million gain in 1Q2020.

The table below provides a breakdown of realized and unrealized commodity risk management contracts in 1Q2021 and 1Q2020: