DALLAS--(BUSINESS WIRE)--Atmos Energy Corporation (NYSE: ATO) said today that its Board of Directors declared a quarterly dividend on the company’s common stock of 62.5 cents per share. The indicated annual dividend is $2.50.

The dividend will be paid on June 7, 2021, to shareholders of record on May 24, 2021. This is the company’s 150^th consecutive quarterly dividend.

Atmos Energy Corporation, an S&P 500 company headquartered in Dallas, is the country’s largest natural gas-only distributor. We safely deliver reliable, affordable, efficient and abundant natural gas to more than 3 million distribution customers in over 1,400 communities across eight states located primarily in the South. As part of our vision to be the safest provider of natural gas services, we are modernizing our business and infrastructure while continuing to invest in safety, innovation, environmental sustainability and our communities. Atmos Energy manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas. Find us online at http://www.atmosenergy.com, Facebook, Twitter, Instagram and YouTube.

Analyst and Media Contact:
Dan Meziere
(972) 855-3729

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:

The realized portion of the commodity risk management contracts registered a loss of $20.6 million in 1Q2021 compared to a $5.6 million gain in 1Q2020. Realized losses recorded in 1Q2021 reflected the impact of zero cost collar hedges covering approximately 77% of oil production with average ceiling prices below Brent oil prices during the quarter.

The unrealized portion of the commodity risk management contracts amounted to a $26.7 million loss in 1Q2021, compared to a $26.4 million gain in 1Q2020. Unrealized losses during 1Q2021 resulted from the increase in the forward Brent oil price curve compared to December 31, 2020 which caused the market value of the Company’s hedging portfolio for 2Q2021 onwards to decrease, as measured on March 31, 2021.

GeoPark continuously monitors market conditions to add new hedges and further increase its risk protection to lower oil prices over the upcoming 12 months. Please refer to the “Commodity Risk Oil Management Contracts” section below for a description of hedges in place as of the date of this release.

Production and Operating Costs⁴: Consolidated production and operating costs increased by 8% to $44.3 million from $41.1 million resulting from higher cash royalties, partially offset by lower operating costs.

The table below provides a breakdown of production and operating costs in 1Q2021 and 1Q2020:

Consolidated royalties increased by 56% or $7.1 million to $19.8 million in 1Q2021 compared to $12.7 million in 1Q2020, mainly resulting from higher oil prices.

Consolidated operating costs decreased by 14%, or $3.8 million to $24.5 million in 1Q2021 compared to $28.3 million in 1Q2020.

The breakdown of operating costs is as follows:

• Colombia: Operating costs per boe increased to $7.4 in 1Q2021 compared to $6.1 in 1Q2020. Total operating costs increased by 3% and amounted to $18.8 million, due to incremental maintenance and well intervention activities in the Llanos 34 block.
• Chile: Operating costs per boe decreased by 27% to $9.2 in 1Q2021 compared to $12.7 in 1Q2020, due to successful cost reduction efforts implemented during 2020 (including fewer well intervention activities, efficiencies and the renegotiation of existing contracts). Total operating costs decreased by 41% to $2.0 million in 1Q2021, in line with lower operating costs per boe and lower oil and gas deliveries (which decreased by 18%).
• Brazil: Operating costs per boe decreased by 56% to $6.0 in 1Q2021 compared to $13.5 in 1Q2020. Total operating costs decreased by 46% to $0.5 million in 1Q2021, reflecting higher gas deliveries in the Manati gas field (which increased by 53%) and lower operating costs per boe.
• Argentina: Operating costs per boe decreased by 29% to $18.8 in 1Q2021 compared to $26.7 in 1Q2020 due to successful cost reduction efforts implemented during 2020 (including fewer well intervention activities, efficiencies and the renegotiation of existing contracts) and to a lesser extent, because of local currency devaluation. Total operating costs decreased by 44% to $3.2 million in 1Q2021 due to lower operating costs per boe and lower oil and gas deliveries, which decreased by 18%.

Selling Expenses: Consolidated selling expenses decreased by $1.6 million to $0.4 million in 1Q2021, compared to $2.0 million in 1Q2020 mainly due to lower sales at the wellhead and resulting from the connection of the Tigana field in the Llanos 34 block to the ODCA pipeline, which further reduces costs and overall operational risk.

Administrative Expenses: Consolidated G&A decreased by 11% to $11.3 million in 1Q2021 due to cost reduction initiatives implemented during 2020.

Geological & Geophysical Expenses: Consolidated G&G expenses decreased by 31% to $3.1 million in 1Q2021 due to cost reduction initiatives implemented during 2020.

Adjusted EBITDA: Consolidated Adjusted EBITDA⁵ decreased by 14% to $66.5 million, or $20.3 per boe, in 1Q2021 compared to $77.7 million, or $20.1 per boe, in 1Q2020.

• Colombia: Adjusted EBITDA of $64.3 million in 1Q2021
• Chile: Adjusted EBITDA of $1.7 million in 1Q2021
• Brazil: Adjusted EBITDA of $3.2 million in 1Q2021
• Argentina: Adjusted EBITDA of $1.1 million in 1Q2021
• Corporate, Ecuador and Peru: Adjusted EBITDA of negative $3.8 million in 1Q2021

The table below shows production, volumes sold and the breakdown of the most significant components of Adjusted EBITDA for 1Q2021 and 1Q2020, on a per country and per boe basis:

Depreciation: Consolidated depreciation charges decreased by 43% to $22.6 million in 1Q2021, compared to $39.3 million in 1Q2020, in line with lower volumes delivered and lower depreciation costs per boe.

Write-off of unsuccessful exploration efforts: The consolidated write-off of unsuccessful exploration efforts was zero in 1Q2021 compared to $3.2 million in 1Q2020. Amounts recorded in 1Q2020 refer to unsuccessful exploration costs incurred in Chile in the Huillin exploration prospect on the Isla Norte block.

Impairment of Non-Financial Assets: Consolidated non-cash impairment of non-financial assets was zero in 1Q2021 compared to $97.5 million in 1Q2020. Amounts recorded in 1Q2020 included $50.3 million in Chile, $31.0 million in Peru and $16.2 million in Argentina, resulting from the significant decrease in crude oil prices caused by the Covid-19 pandemic and its effect on global energy prices.

Other Income (Expenses): Other operating expenses showed a $1.8 million loss in 1Q2021, compared to a $0.2 million loss in 1Q2020.

CONSOLIDATED NON-OPERATING RESULTS AND PROFIT FOR THE PERIOD

Financial Expenses: Net financial expenses increased to $15.5 million in 1Q2021, compared to $13.3 million in 1Q2020 mainly resulting from higher interest expenses related to the issuance of the 2027 Notes in mid- January 2020.

Foreign Exchange: Net foreign exchange charges amounted to a $2.7 million gain in 1Q2021 compared to a $10.8 million loss in 1Q2020.

Income Tax: Income taxes totaled a $13.4 million loss in 1Q2021 compared to a $30.3 million loss in 1Q2020, mainly resulting from the effect of fluctuations of local currencies over deferred income taxes, partially offset by higher profit before income tax.

Profit: Losses of $10.3 million in 1Q2021 compared to a $89.5 million loss recorded in 1Q2020, mainly due to the impact of impairments and write-offs recorded in 1Q2020.

BALANCE SHEET

Cash and Cash Equivalents: Cash and cash equivalents totaled $187.6 million as of March 31, 2021 compared to $201.9 million as of December 31, 2020. Cash generated from operating activities equaled $36.4 million while cash used in financing activities equaled $29.7 million and cash used in investing activities equaled $20.3 million.

Cash used in financing activities of $29.7 million mainly included interest payments of $23.5 million, lease payments of $2.5 million and $3.6 million related to the acquisition of the LG International Corp’s non-controlling interest in Colombia and Chile that closed in 2018.

Financial Debt: Total financial debt net of issuance cost was $773.0 million, including the 2024 Notes, the 2027 Notes and other bank loans totaling $3.4 million. Short-term financial debt was $5.9 million as of March 31, 2021.

For further details, please refer to Note 12 of GeoPark’s consolidated financial statements as of March 31, 2021, available on the Company’s website.

FINANCIAL RATIOS^a

Covenants in the 2024 and 2027 Notes: The 2024 and 2027 Notes include incurrence test covenants that provide, among other things, that the Net Debt to Adjusted EBITDA ratio should not exceed 3.25 times and the Adjusted EBITDA to Interest ratio should exceed 2.5 times. As of the date of this release, the Company is compliant with both covenants.

For further details, please refer to Note 12 and 16 of GeoPark’s consolidated financial statements as of March 31, 2021, available on the Company’s website.

COMMODITY RISK OIL MANAGEMENT CONTRACTS

GeoPark recently added new oil hedges further increasing its price risk protection over the next 12 months, now reaching 25,500 bopd in 2Q2021, 20,000 bopd in 3Q2021, 19,500 bopd in 4Q2021, 8,500 bopd in 1Q2022 and 2,000 in 2Q2022. Hedges include a portion providing protection to the Vasconia local marker in Colombia.

The Company has the following commodity risk management contracts in place as of the date of this release:

For further details, please refer to Note 4 of GeoPark’s consolidated financial statements for the period ended March 31, 2021, available on the Company’s website.

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
T: +5411 4312 9400
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MEDIA:

Communications Department
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ALEXANDRIA, Va.--(BUSINESS WIRE)--VSE Corporation (NASDAQ: VSEC), a leading provider of aftermarket distribution and maintenance, repair and overhaul (MRO) services for land, sea and air transportation assets supporting government and commercial markets, announced that the Company's Board of Directors has declared a regular quarterly cash dividend of $0.09 per share of VSE common stock. The dividend is payable on July 28, 2021 to stockholders of record at the close of business on July 14, 2021.

ABOUT VSE CORPORATION

VSE is a leading provider of aftermarket distribution and repair services for land, sea and air transportation assets supporting government and commercial markets. Core services include maintenance, repair and overhaul (MRO) services, parts distribution, supply chain management and logistics, engineering support, and consulting and training services for global commercial, federal, military and defense customers. VSE also provides information technology and energy consulting services. For additional information regarding VSE’s products and services, visit www.vsecorp.com.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause VSE’s actual results to vary materially from those indicated or anticipated by such statements. Many factors could cause actual results and performance to be materially different from any future results or performance, including, among others, the risk factors described in our reports filed or expected to be filed with the SEC. Any forward-looking statement or statement of belief speaks only as of the date of this press release. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

INVESTOR RELATIONS CONTACT: Noel Ryan | 720.778.2415 | This email address is being protected from spambots. You need JavaScript enabled to view it.

The combination brings together an unrivalled corporate client base with industry-leading project development capabilities and growth capital, to scale the ambition to reduce emissions and transform the global economy.

OXFORD, England--(BUSINESS WIRE)--Two of the most well respected and experienced organisations operating in the Voluntary Carbon Market, ClimateCare and Natural Capital Partners, have today come together to form a world-leading solutions provider for companies and organisations looking to meet ambitious climate goals. The combined group has been responsible for the reduction of more than 100 million tonnes of CO₂e.

The merger, arranged by Averna Capital, was funded by Averna’s investors in order to bring these two expert organisations together to create a market-leading business in the Voluntary Carbon Market. The group will use its access to capital, global reach, longstanding industry and project development expertise and unrivalled experience working with the world’s largest brands and global companies, to partner with clients and governments to deliver on their ambitious climate and Net Zero goals. Together the group will serve more than 500 clients across six continents and have access to upwards of 600 projects reducing and removing carbon emissions across 56 countries.

The combination of skills and expertise that the merger delivers are key elements in a strategy to further grow and develop the group to meet the increasing global demand for carbon market solutions and deliver greater scale and impact.

Edward Hanrahan, Chairman at ClimateCare said: “We have long respected the team at Natural Capital Partners for the fantastic levels of service and insight they provide to their substantial client base, as well as the value and quality of their carbon neutral certification. We look forward to combining our products and services to offer a comprehensive range of solutions that will meet the climate goals of businesses across the world. This is just the first step in our collaborative effort to work towards a truly Net Zero future, and we are excited by the opportunities to build further on this foundation.”

Stephen Killeen, Chairman and CEO at Natural Capital Partners said: “We are delighted to announce this merger with ClimateCare. With the increasing client demand for projects of the highest quality and the development of new projects, ClimateCare’s multi award-winning Project Development and Carbon Asset Development teams will further bolster the solutions we offer to guarantee tangible climate impact, sustainable development and the transformation of our global economy.”

Vaughan Lindsay, CEO at ClimateCare said: “We are hugely excited by this opportunity, bringing together the complementary strengths of our like-minded organisations, and sharing the knowledge and experience of this industry’s most respected professionals. Together we will be able to accelerate the global impact our clients can make through a comprehensive network of carbon removal and reduction projects and provide them with the reach and scale they need to deliver their climate ambitions.”

As business action on climate increases, and the Voluntary Carbon Market grows to meet the substantial demand for private sector finance, this merger creates a world-leading organisation with a unique combination of knowledge, scale, skills and resources to meet that demand.

Richard Tudor, Founder Partner at Averna Capital concludes: “When deciding where to invest in this market, it became immediately clear that over the last twenty years, Natural Capital Partners and ClimateCare have always been the benchmark organisations for quality and innovation. Bringing the two expert teams together - and at such a pivotal point in the rapid scaling and evolution of this market - is a critical first step in meeting the unprecedented demand in the Voluntary Carbon Markets globally. The combined client expertise, industry knowledge and project development strategy are key differentiators which makes the group stand above all others and ensures we are able to deliver a real and tangible set of solutions to the climate crisis. It is just the first step in our growth plan, and we look forward to further investing in this market.”

….ends….

Notes to editors

Natural Capital Partners

With more than 300 clients in 34 countries, including Microsoft, MetLife, Logitech, PwC and Sky, Natural Capital Partners is harnessing the power of business to create a more sustainable world. Through a global network of projects, the company delivers the highest quality solutions which make real change possible: reducing carbon emissions, generating renewable energy, building resilience in supply chains, conserving and restoring forests and biodiversity, and improving health and livelihoods.

ClimateCare

ClimateCare helps organisations take responsibility for their climate impact by financing, developing and managing carbon reduction projects across the world. Based in Oxford and Nairobi, ClimateCare helped create the voluntary carbon market and pioneered carbon finance for community development projects. Some of the largest carbon offsetting programmes in the world are delivered by ClimateCare. Leading organisations and governments trust ClimateCare to solve complex climate and sustainability issues. With ClimateCare by their side, they can be confident on their journey to Net Zero.

Averna Capital

Averna Capital is an independent mid-market private equity firm founded by Richard Tudor and Stephen Green in 2019 that pursues unique opportunities which leverage its team and network’s wealth of experience. The Averna team's long track record of generating strong returns for investors and successful deal execution makes it a preferred partner for investors, business owners and management teams.

Press enquiries and image requests
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DALLAS--(BUSINESS WIRE)--Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its second fiscal quarter ended March 31, 2021.

Highlights

• Earnings per diluted share was $4.01 for the six months ended March 31, 2021; $2.30 per diluted share for the second fiscal quarter.
• Consolidated net income was $514.4 million for the six months ended March 31, 2021; $296.8 million for the second fiscal quarter.
• Capital expenditures totaled $845.7 million for the six months ended March 31, 2021, with approximately 87 percent of capital spending related to system safety and reliability investments.

Outlook

• Earnings per diluted share for fiscal 2021 is expected to be in the previously announced range of $4.90 to $5.10.
• Capital expenditures are expected to be in the range of $2.0 billion to $2.2 billion in fiscal 2021.
• The company's Board of Directors has declared a quarterly dividend of $0.625 per common share. The indicated annual dividend for fiscal 2021 is $2.50, which represents an 8.7% increase over fiscal 2020.

"Our operating and financial performance for the first six months of the fiscal year reflects our employees’ continued ability to execute at the highest levels on all facets of our business,” said Kevin Akers, President and Chief Executive Officer of Atmos Energy. ”Their dedication and resilience leaves us well positioned for a successful fiscal 2021,” Akers concluded.

Results for the Three Months Ended March 31, 2021

Consolidated operating income increased $50.4 million to $381.8 million for the three months ended March 31, 2021, from $331.4 million in the prior-year quarter. Rate case outcomes in both segments and customer growth in our distribution segment were partially offset by lower through system revenue in our pipeline and storage segment, decreased service order revenue and higher bad debt expense in our distribution segment and higher depreciation and property tax expenses.

Distribution operating income increased $49.8 million to $303.3 million for the three months ended March 31, 2021, compared with $253.5 million in the prior-year quarter. The increase primarily reflects a net $65.8 million increase in rates and a $4.9 million increase due to net customer growth, partially offset by a $12.3 million increase in depreciation and property tax expenses associated with increased capital investments, a $6.5 million increase in bad debt expense, and a $3.9 million decrease in service order revenues.

Pipeline and storage operating income increased $0.7 million to $78.5 million for the three months ended March 31, 2021, compared with $77.9 million in the prior-year quarter. This increase is primarily attributable to a $14.0 million increase in rates, due to the GRIP filing approved in fiscal 2020, partially offset by a $6.8 million increase in depreciation and property tax expenses due to increased capital investments, a $6.4 million decrease due to the refund of excess deferred income taxes to customers and a $3.4 million decrease in through system revenues.

Results for the Six Months Ended March 31, 2021

Consolidated operating income increased $96.4 million to $680.6 million for the six months ended March 31, 2021, compared to $584.2 million in the prior year, which primarily reflects rate outcomes in both segments, customer growth in our distribution segment and lower operating and maintenance expenses, partially offset by higher bad debt expense and lower service order revenue in our distribution segment, lower through system revenue in our pipeline and storage segment and increased depreciation and property tax expenses.

Distribution operating income increased $79.0 million to $512.8 million for the six months ended March 31, 2021, compared with $433.8 million in the prior year. The increase reflects a net $102.7 million increase in rates, customer growth of $10.7 million and a $6.2 million savings in operations and maintenance expense excluding bad debt expense, partially offset by a $22.1 million increase in depreciation and property tax expenses associated with increased capital investments, increased bad debt expense of $8.8 million, an $8.1 million decrease in weather and consumption and an $8.4 million decrease in service order revenues.

Pipeline and storage operating income increased $17.4 million to $167.8 million for the six months ended March 31, 2021, compared with $150.4 million in the prior year. This increase is primarily attributable to a $27.3 million increase from our GRIP filings approved in fiscal 2020 and a $7.7 million decrease in operating and maintenance expense due primarily to nonrecurring well integrity costs in the prior-year period. These increases were partially offset by an $11.4 million increase in depreciation and property tax expenses due to increased capital investments, a $6.4 million decrease due to the refund of excess deferred income taxes to customers and a $4.9 million decrease in through system revenues.

Additionally, our year-to-date results reflect a reduction in our annual effective tax rate related to the refund of excess deferred taxes, primarily to APT customers, which has been or will be offset by a corresponding decrease in revenues over the remainder of the fiscal year. As a result, our consolidated effective tax rate declined from 22.1% in the prior-year period to 19.8% for the six months ended March 31, 2021.

Capital expenditures decreased $149.0 million to $845.7 million for the six months ended March 31, 2021, compared with $994.7 million in the prior year, primarily as a result of timing of spending in our distribution segment.

For the six months ended March 31, 2021, the company generated negative operating cash flow of $1,402.2 million, a $2,036.0 million decrease compared with the six months ended March 31, 2020. The year-over-year decrease is primarily the result of gas costs incurred during Winter Storm Uri.

Our equity capitalization ratio at March 31, 2021 was 51.7%, compared with 60.0% at September 30, 2020, due to the issuance of $600 million of 1.50% senior notes in October 2020 and a $2.2 billion debt issuance in March 2021 in order to finance gas costs incurred during Winter Storm Uri. Excluding the $2.2 billion of incremental financing, our equity capitalization ratio would have been 60.4% at March 31, 2021.

Conference Call to be Webcast May 6, 2021

Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2021 second quarter financial results on Thursday, May 6, 2021, at 10:00 a.m. Eastern Time. The domestic telephone number is 877-407-3088 and the international telephone number is 201-389-0927. Kevin Akers, President and Chief Executive Officer, and Chris Forsythe, Senior Vice President and Chief Financial Officer, will participate in the conference call. The conference call will be webcast live on the Atmos Energy website at www.atmosenergy.com. A playback of the call will be available on the website later that day.

Forward-Looking Statements

The matters discussed in this news release may contain “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 in this news release are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this news release or any of the company’s other documents or oral presentations, the words “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “goal”, “intend”, “objective”, “plan”, “projection”, “seek”, “strategy” or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in this presentation, including the risks relating to regulatory trends and decisions, the company’s ability to continue to access the credit and capital markets, and the other factors discussed in the company’s reports filed with the Securities and Exchange Commission. These risks and uncertainties include the following: federal, state and local regulatory and political trends and decisions, including the impact of rate proceedings before various state regulatory commissions; increased federal regulatory oversight and potential penalties; possible increased federal, state and local regulation of the safety of our operations; the impact of greenhouse gas emissions or other legislation or regulations intended to address climate change; possible significant costs and liabilities resulting from pipeline integrity and other similar programs and related repairs; the inherent hazards and risks involved in distributing, transporting and storing natural gas; the availability and accessibility of contracted gas supplies, interstate pipeline and/or storage services; increased competition from energy suppliers and alternative forms of energy; adverse weather conditions; the impact of climate change; the inability to continue to hire, train and retain operational, technical and managerial personnel; increased dependence on technology that may hinder the Company's business if such technologies fail; the threat of cyber-attacks or acts of cyber-terrorism that could disrupt our business operations and information technology systems or result in the loss or exposure of confidential or sensitive customer, employee or Company information; natural disasters, terrorist activities or other events and other risks and uncertainties discussed herein, all of which are difficult to predict and many of which are beyond our control; the capital-intensive nature of our business; our ability to continue to access the credit and capital markets to execute our business strategy; market risks beyond our control affecting our risk management activities, including commodity price volatility, counterparty performance or creditworthiness and interest rate risk; the concentration of our operations in Texas; the impact of adverse economic conditions on our customers; changes in the availability and price of natural gas; increased costs of providing health care benefits, along with pension and postretirement health care benefits and increased funding requirements; and the outbreak of COVID-19 and its impact on business and economic conditions.

Accordingly, while we believe these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. Further, the company undertakes no obligation to update or revise any of our forward-looking statements whether as a result of new information, future events or otherwise.

About Atmos Energy

Atmos Energy Corporation, an S&P 500 company headquartered in Dallas, is the country’s largest natural gas-only distributor. We safely deliver reliable, affordable, efficient and abundant natural gas to more than 3 million distribution customers in over 1,400 communities across eight states located primarily in the South. As part of our vision to be the safest provider of natural gas services, we are modernizing our business and infrastructure while continuing to invest in safety, innovation, environmental sustainability and our communities. Atmos Energy manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas. Find us online at http://www.atmosenergy.com, Facebook, Twitter, Instagram and YouTube.

This news release should be read in conjunction with the attached unaudited financial information.

Analysts and Media Contact:
Dan Meziere (972) 855-3729

DUBLIN--(BUSINESS WIRE)--The "Global Portable Gas Chromatography Market 2021-2025" report has been added to ResearchAndMarkets.com's offering.

The portable gas chromatography market is poised to grow by $ 568.48 mn during 2021-2025, progressing at a CAGR of over 5% during the forecast period.

The market is driven by the growing applications for portable gas chromatography and the increasing need for effective on-field analytical instruments.

The report on portable gas chromatography market provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 25 vendors. The report offers an up-to-date analysis regarding the current global market scenario, latest trends and drivers, and the overall market environment. The portable gas chromatography market analysis includes application segment and geographic landscape.

This study identifies the increasing demand for fuel and energy as one of the prime reasons driving the portable gas chromatography market growth during the next few years.

The publisher's robust vendor analysis is designed to help clients improve their market position, and in line with this, this report provides a detailed analysis of several leading portable gas chromatography market vendors that include ABB Ltd., Agilent Technologies Inc., AMETEK Inc., Emerson Electric Co., INFICON Holding AG, PerkinElmer Inc., Shimadzu Corp., Siemens AG, SRI Instruments, and Thermo Fisher Scientific Inc.

Also, the portable gas chromatography market analysis report includes information on upcoming trends and challenges that will influence market growth. This is to help companies strategize and leverage all forthcoming growth opportunities.

The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to an analysis of the key vendors.

Key Topics Covered:

Executive Summary

• Market overview

Market Landscape

• Market ecosystem
• Value chain analysis

Market Sizing

• Market definition
• Market segment analysis
• Market size 2020
• Market outlook: Forecast for 2020 - 2025

Five Forces Analysis

• Five forces summary
• Bargaining power of buyers
• Bargaining power of suppliers
• Threat of new entrants
• Threat of substitutes
• Threat of rivalry
• Market condition

Market Segmentation by Application

• Market segments
• Comparison by Application
• Oil and gas - Market size and forecast 2020-2025
• Food and agriculture - Market size and forecast 2020-2025
• Others - Market size and forecast 2020-2025
• Market opportunity by Application

Customer landscape

Geographic Landscape

• Geographic segmentation
• Geographic comparison
• North America - Market size and forecast 2020-2025
• APAC - Market size and forecast 2020-2025
• Europe - Market size and forecast 2020-2025
• ROW - Market size and forecast 2020-2025
• Key leading countries
• Market opportunity by geography
• Market drivers
• Market challenges
• Market trends

Vendor Landscape

• Overview
• Landscape disruption

Vendor Analysis

• Vendors covered
• Market positioning of vendors
• ABB Ltd.
• Agilent Technologies Inc.
• AMETEK Inc.
• Emerson Electric Co.
• INFICON Holding AG
• PerkinElmer Inc.
• Shimadzu Corp.
• Siemens AG
• SRI Instruments
• Thermo Fisher Scientific Inc.

Appendix

For more information about this report visit https://www.researchandmarkets.com/r/jt9j

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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For E.S.T Office Hours Call 1-917-300-0470
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HOUSTON--(BUSINESS WIRE)--USD Partners LP (NYSE: USDP) (the “Partnership”) announced today its operating and financial results for the three months ended March 31, 2021. Financial highlights with respect to the first quarter of 2021 include the following:

• Generated Net Cash Provided by Operating Activities of $12.6 million, Adjusted EBITDA⁽¹⁾ of $14.6 million and Distributable Cash Flow⁽¹⁾ of $12.5 million
• Reported Net Income of $7.3 million
• Increased quarterly cash distribution to $0.1135 per unit ($0.454 per unit on an annualized basis) with approximately 4.0x Distributable Cash Flow Coverage⁽²⁾
• Announced that Management intends to recommend to the Board of Directors of the Partnership’s general partner to increase the quarterly cash distribution per unit by an additional $0.0025 per quarter for each of the second, third and fourth quarters in 2021 as compared to the preceding quarter

“We are pleased to report a strong start to 2021 at the Partnership as well as our intent to resume growing our quarterly distribution during 2021,” said Dan Borgen, the Partnership’s Chief Executive Officer. “Our strategically located terminals continue to perform well, and our recommendation to the Board to increase our quarterly distribution by 2.25% relative to the fourth quarter of 2020 was reinforced by our improved outlook for our business along with our enhanced liquidity position.”

“We continue to be very excited about our Sponsor’s previously announced diluent recovery unit (“DRU”) project and destination terminal in Port Arthur, Texas (“PAT”) and look forward to announcing their in-service dates next quarter. We expect that construction of the DRU will reach substantial completion in July, ramping to its full capacity in August,” added Mr. Borgen.

Partnership’s First Quarter 2021 Liquidity, Operational and Financial Results

Substantially all of the Partnership’s cash flows are generated from multi-year, take-or-pay terminalling services agreements related to its crude oil terminals, which include minimum monthly commitment fees. The Partnership’s customers include major integrated oil companies, refiners and marketers, the majority of which are investment-grade rated.

The Partnership’s operating results for the first quarter of 2021 relative to the same quarter in 2020 were primarily influenced by higher revenue at its Stroud terminal during the quarter due to higher rates that are based on crude oil index pricing differentials, which was partially offset by revenue that was deferred in the first quarter of 2021 in connection with the make-up right options that the Partnership granted to its customers. Additionally, revenue at the Hardisty terminal was slightly lower in the first quarter of 2021 relative to the first quarter of 2020 resulting from the recognition in the first quarter of 2020 of revenue that was deferred in 2019 in connection with the make-up rights granted to our customers, compared to the first quarter of 2021 where no previously deferred revenue was recognized and a minor amount of revenue was deferred. This decrease in Hardisty revenues was partially offset by a favorable variance resulting from the change in the Canadian exchange rate associated with the Partnership’s Canadian-dollar denominated contracts and increased rates on certain of the Partnership’s Hardisty agreements when compared to the first quarter of 2020.

The Partnership experienced lower operating costs during the first quarter of 2021 as compared to the first quarter of 2020. This decrease was primarily due to a non-cash impairment of the goodwill associated with the Casper terminal that was recognized in the first quarter of 2020, with no similar charge recognized in the first quarter of 2021.

Net income increased in the first quarter of 2021 as compared to the net loss recognized in the first quarter of 2020, primarily because of the operating factors discussed above coupled with lower interest expense incurred during the 2021 period resulting from lower interest rates and a lower weighted average balance of debt outstanding. Additionally, the Partnership recognized a non-cash gain associated with its interest rate derivatives during the first quarter of 2021.

Net Cash Provided by Operating Activities for the quarter increased 8% relative to the first quarter of 2020, primarily due to the operating factors discussed above and the general timing of receipts and payments of accounts receivable, accounts payable and deferred revenue balances.

Adjusted EBITDA and Distributable Cash Flow (“DCF”) increased by 18% and 27%, respectively, for the quarter relative to the first quarter of 2020. The increase in Adjusted EBITDA was primarily a result of the operating factors discussed above. DCF was also positively impacted by a decrease in cash paid for interest and income taxes during the quarter, partially offset by slightly higher maintenance capital expenditures incurred during the current quarter, which included technology upgrades and safety maintenance at the Partnership’s Hardisty and Stroud terminals.

As of March 31, 2021, the Partnership had approximately $3 million of unrestricted cash and cash equivalents and undrawn borrowing capacity of $196 million on its $385 million senior secured credit facility, subject to the Partnership’s continued compliance with financial covenants. As of the end of the first quarter of 2021, the Partnership had borrowings of $189 million outstanding under the Revolving Credit Facility. Pursuant to the terms of the Partnership’s Credit Agreement, the Partnership’s borrowing capacity is currently limited to 4.5 times its trailing 12-month consolidated EBITDA, as defined in the Credit Agreement. As such, the Partnership’s available borrowings under the senior secured credit facility, including unrestricted cash and cash equivalents, was approximately $75 million as of March 31, 2021. The Partnership was in compliance with its financial covenants, as of March 31, 2021.

On April 22, 2021, the Partnership declared a quarterly cash distribution of $0.1135 per unit ($0.454 per unit on an annualized basis), representing an increase of $0.0025 per unit, or 2.25% over the distribution declared for the fourth quarter of 2020. The distribution is payable on May 14, 2021, to unitholders of record at the close of business on May 5, 2021.

Since the end of the first quarter of 2020, the Partnership has reduced the outstanding balance of its revolving credit facility by $35 million as of March 31, 2021. In addition, the Partnership has repaid an additional $3 million subsequent to the end of the first quarter of 2021.

First Quarter 2021 Conference Call Information

The Partnership will host a conference call and webcast regarding first quarter 2021 results at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on Thursday, May 6, 2021.

To listen live over the Internet, participants are advised to log on to the Partnership’s website at www.usdpartners.com and select the “Events & Presentations” sub-tab under the “Investors” tab. To join via telephone, participants may dial (877) 266-7551 domestically or +1 (339) 368-5209 internationally, conference ID 4593597. Participants are advised to dial in at least five minutes prior to the call.

An audio replay of the conference call will be available for thirty days by dialing (800) 585-8367 domestically or +1 (404) 537-3406 internationally, conference ID 4593597. In addition, a replay of the audio webcast will be available by accessing the Partnership's website after the call is concluded.

About USD Partners LP

USD Partners LP is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group, LLC (“USD”) to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. The Partnership generates substantially all of its operating cash flows from multi-year, take-or-pay contracts with primarily investment grade customers, including major integrated oil companies, refiners and marketers. The Partnership’s principal assets include a network of crude oil terminals that facilitate the transportation of heavy crude oil from Western Canada to key demand centers across North America. The Partnership’s operations include railcar loading and unloading, storage and blending in on-site tanks, inbound and outbound pipeline connectivity, truck transloading, as well as other related logistics services. In addition, the Partnership provides customers with leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons and biofuels by rail.

USD, which owns the general partner of USD Partners LP, is engaged in designing, developing, owning, and managing large-scale multi-modal logistics centers and energy-related infrastructure across North America. USD solutions create flexible market access for customers in significant growth areas and key demand centers, including Western Canada, the U.S. Gulf Coast and Mexico. Among other projects, USDG, along with its partner Gibson Energy, Inc., is pursuing long-term solutions to transport heavier grades of crude oil produced in Western Canada through the construction of a Diluent Recovery Unit at the Hardisty terminal. USDG is also currently pursuing the development of a premier energy logistics terminal on the Houston Ship Channel with capacity for substantial tank storage, multiple docks (including barge and deepwater), inbound and outbound pipeline connectivity, as well as a rail terminal with unit train capabilities. For additional information, please visit texasdeepwater.com. Information on websites referenced in this release is not part of this release.

Non-GAAP Financial Measures

The Partnership defines Adjusted EBITDA as Net Cash Provided by Operating Activities adjusted for changes in working capital items, interest, income taxes, foreign currency transaction gains and losses, and other items which do not affect the underlying cash flows produced by the Partnership’s businesses. Adjusted EBITDA is a non-GAAP, supplemental financial measure used by management and external users of the Partnership’s financial statements, such as investors and commercial banks, to assess:

• the Partnership’s liquidity and the ability of the Partnership’s businesses to produce sufficient cash flows to make distributions to the Partnership’s unitholders; and
• the Partnership’s ability to incur and service debt and fund capital expenditures.

The Partnership defines Distributable Cash Flow, or DCF, as Adjusted EBITDA less net cash paid for interest, income taxes and maintenance capital expenditures. DCF does not reflect changes in working capital balances. DCF is a non-GAAP, supplemental financial measure used by management and by external users of the Partnership’s financial statements, such as investors and commercial banks, to assess:

• the amount of cash available for making distributions to the Partnership’s unitholders;
• the excess cash flow being retained for use in enhancing the Partnership’s existing business; and
• the sustainability of the Partnership’s current distribution rate per unit.

The Partnership believes that the presentation of Adjusted EBITDA and DCF in this press release provides information that enhances an investor's understanding of the Partnership’s ability to generate cash for payment of distributions and other purposes. The GAAP measure most directly comparable to Adjusted EBITDA and DCF is Net Cash Provided by Operating Activities. Adjusted EBITDA and DCF should not be considered alternatives to Net Cash Provided by Operating Activities or any other measure of liquidity presented in accordance with GAAP. Adjusted EBITDA and DCF exclude some, but not all, items that affect Net Cash Provided by Operating Activities and these measures may vary among other companies. As a result, Adjusted EBITDA and DCF may not be comparable to similarly titled measures of other companies. Reconciliations of Net Cash Provided by Operating Activities to Adjusted EBITDA and DCF are presented in this press release.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, including statements with respect to the ability of the Partnership and USD to achieve contract extensions, new customer agreements and expansions; the ability of the Partnership and USD to develop existing and future additional projects and expansion opportunities and whether those projects and opportunities developed by USD would be made available for acquisition, or acquired, by the Partnership; the timing and impact of the completion of USD’s DRU project; volumes at, and demand for, the Partnership’s terminals; and the amount and timing of future distribution payments and distribution growth. Words and phrases such as “expect,” “plan,” “intent,” “believes,” “projects,” “begin,” “anticipates,” “subject to” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to the Partnership are based on management’s expectations, estimates and projections about the Partnership, its interests and the energy industry in general on the date this press release was issued. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include the impact of the novel coronavirus (COVID-19) pandemic and related economic downturn and changes in general economic conditions and commodity prices, as well as those factors set forth under the heading “Risk Factors” and elsewhere in the Partnership’s most recent Annual Report on Form 10-K and in the Partnership’s subsequent filings with the Securities and Exchange Commission (many of which may be amplified by the COVID-19 pandemic and the significant reductions in demand for, and fluctuations in the prices of, crude oil, natural gas and natural gas liquids). The Partnership is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

__________________________

__________________________

Category: Earnings

Adam Altsuler
Senior Vice President, Chief Financial Officer
(281) 291-3995
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Jennifer Waller
Director, Financial Reporting and Investor Relations
(832) 991-8383
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Co-led by ENGIE New Ventures and Clean Energy Ventures, the investment enables expansion across key global industrial markets

RALEIGH, N.C.--(BUSINESS WIRE)--ndustrial, a provider of software and services that seamlessly optimize industrial facilities across all stages of discrete and process manufacturing supply chains, announced today the closing of a $6 million Series A funding co-led by ENGIE New Ventures and Clean Energy Ventures, with participation from Orion Energy Systems, Lineage Logistics, and Clean Energy Venture Group.

In today’s world, where industrial businesses need a path to extract more value from their digitization efforts and where they have already implemented the “easy” efficiency wins, ndustrial enable customers to better access, aggregate, analyze, optimize, and act on data. Leveraging the company’s technology platform – and applying its integration and advanced analytics know-how to captured data – ndustrial enables companies to gain deeper insights into their business, identify and automate improvements, and drive innovation that positively impacts the customer’s bottom line.

“This funding will enable us to move our technology into broader market areas and use cases within the industrial segment,” said Jason Massey, Founder and CEO, ndustrial. “Expanding our footprint will allow more industrial businesses to derive insights from real-time, streaming data, and to apply algorithms to automate efficiencies in energy usage or production applications. This gives our customers a competitive advantage as well as the ability to drive innovation across their sites.”

Lineage Logistics, the world’s largest and most innovative temperature-controlled industrial REIT and logistics solutions provider, has taken advantage of ndustrial’s technology across more than 200 of its 350+ facilities in real-time, and avoided significant energy spend over the last five years. Similarly, a leading biotech company has leveraged ndustrial’s platform and services to enable predictive analysis and modelling and make adjustments that deliver significantly increased yields delivering up to 30 percent more revenue annually.

ENGIE New Ventures’ Investment Director, Vincent Pichon, commented, “Clean energy isn’t just about producing clean electricity; it’s also about reducing the amount of electricity used per unit of production.” Sheeraz Haji, Senior Advisor, ENGIE New Ventures added, “Industrial facilities are incredibly complex behind the utility meter. Each site has a unique combination of systems and software, often built up over many years. That reality makes aggregating data and modelling across multi-site businesses hugely challenging, but also extremely important in order to reduce energy.”

“We’ve conducted due diligence on over 100 commercial and industrial efficiency technologies in the last four years, and ndustrial is one of the few we’ve chosen to invest in,” said Daniel Goldman, Managing Director and Co-founder, Clean Energy Ventures. “Their tangible application of machine learning for energy efficiency and process improvement stands apart. We believe their technology has the potential to materially impact carbon emissions in older industrial facilities across a wide range of sectors, and we’re looking forward to helping them scale their innovative technology.”

“When we decided to invest in ndustrial and join the Board in 2015, they had already helped our site in North Carolina save hundreds of thousands of dollars, and Lineage Logistics had just 30 cold storage warehouses. Today, we are more than 350 sites globally. We’ve been proud to scale our applied sciences and energy efficiency initiatives with the ndustrial team,” said Adam Forste, Co-Founder and Co-Chairman of Lineage Logistics and Co-Founder and Managing Partner of Bay Grove, its manager.

Vincent Pichon, ENGIE New Ventures, and Daniel Goldman, Clean Energy Ventures, will join ndustrial’s Board of Directors as part of the investment.

About ndustrial:

ndustrial delivers software and services that enable industrial companies to gain deeper insights into their business, actively optimize systems and drive efficiency at scale. ndustrial was founded in 2011 and is headquartered in Raleigh, North Carolina. For more information, visit www.ndustrial.io.

About Engie New Ventures:

ENGIE New Ventures (ENV) is the corporate venture capital arm of ENGIE, the global energy and services provider. ENGIE is committed to lead the energy revolution, towards a more decarbonized, decentralized and digitized world. ENV is a €180 million investment fund focused on making minority investments in innovative start-ups. Since 2014, ENV has deployed over €164 million of capital across 27 investments, in disruptive start-ups leading the energy transition and active in renewable energies, hydrogen, energy efficiency and flexibility, heating and cooling networks. ENV's offices are represented in Paris, San Francisco, Singapore, Santiago and Tel Aviv. Please visit: www.engieventures.com.

About Clean Energy Ventures:

Clean Energy Ventures is a venture capital firm investing in early-stage climate tech startups who can reduce greenhouse gas emissions by 2.5 gigatons of CO₂e each between now and 2050, while providing venture-grade returns to our investors. Learn more at cleanenergyventures.com.

For further information please contact:
Anna Cahill James
The Halo Agency (for ndustrial)
415.866.3663
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Rising Nitrogen Prices Supported by Increased Global Energy Spreads

Positive Nitrogen Outlook Driven by Robust Demand

Continued Progress on Clean Energy Initiatives

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 quarter ended March 31, 2021.

Highlights

• First quarter net earnings of $151 million⁽¹⁾, or $0.70 per diluted share; EBITDA⁽²⁾ of $398 million; adjusted EBITDA⁽²⁾ of $398 million
• Trailing twelve month net cash from operating activities of $1.52 billion, free cash flow⁽³⁾ of $1.05 billion
• Company completed redemption of remaining $250 million of Senior Secured Notes due December 2021
• Engineering and procurement contract signed with thyssenkrupp for electrolysis plant to supply green hydrogen for green ammonia production at Donaldsonville

“The CF team delivered solid results in the first quarter as increased global energy spreads and strong demand led to rising nitrogen prices,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “We experienced a number of unusual negative impacts from weather and other factors that created challenges during the quarter, but we navigated those issues successfully in a way that mitigated a potentially negative outcome.”

Operations Overview

The Company continues to operate safely and efficiently across its network. As of March 31, 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 first quarter of 2021 was approximately 2.5 million tons compared to 2.7 million tons for the first quarter of 2020. During the quarter, winter weather events in the United States disrupted the natural gas market, temporarily restricting the availability of natural gas into several of the Company’s manufacturing complexes, which resulted in lower gross ammonia production. Plant outages generated higher costs for the Company related to fixed cost write-offs and higher maintenance expenses. The Company also experienced higher realized natural gas costs compared to the first quarter of 2020.

During the severe weather-related disruption of the natural gas market, management was informed that gas deliveries would be curtailed and force majeure gas shut-offs were likely at several of the Company’s facilities. Facing imminent shut-down of several plants, management worked with its suppliers of natural gas to net settle certain gas contracts the Company had in place. The net settlement of the natural gas purchase contracts resulted in the Company receiving prevailing market prices for the natural gas, resulting in a gain of $112 million.

Management expects gross ammonia production in 2021 will be approximately 9.5 - 10 million tons. This is lower than 2020 production due to a higher number of planned maintenance activities this year and knock-on plant outages from the forced February shut-downs due to natural gas availability issues.

“I am particularly proud of the way the CF team responded to the challenging situation brought on by the lack of gas availability at our plants. This would have been an extremely costly event had the team not responded quickly, and effectively mitigated the higher costs and lost production we were facing,” said Will.

First Quarter 2021 Financial Results Overview

For the first quarter of 2021, net earnings attributable to common stockholders were $151 million, or $0.70 per diluted share; EBITDA was $398 million; and adjusted EBITDA was $398 million. These results compare to first quarter 2020 net earnings attributable to common stockholders of $68 million, or $0.31 per diluted share; EBITDA of $314 million; and adjusted EBITDA of $318 million.

Net sales in the first quarter of 2021 were $1.05 billion compared to $971 million in the first quarter of 2020. Average selling prices for the first quarter of 2021 were higher than the first quarter of 2020 across most segments due to decreased global supply availability as higher global energy costs drove lower global operating rates. Sales volumes in the first quarter of 2021 were lower than the first quarter of 2020 due to lower supply availability from lower production.

Cost of sales for the first quarter of 2021 was essentially flat with the first quarter of 2020 on lower sales volume.

In the first quarter of 2021, the average cost of natural gas reflected in the Company’s cost of sales was $3.22 per MMBtu⁽⁴⁾ compared to the average cost of natural gas in cost of sales of $2.61 per MMBtu in the first quarter of 2020 due to higher natural gas costs in the United Kingdom as well as higher daily gas prices in North America due to severe winter weather.

Capital Management

Capital expenditures in the first quarter of 2021 were $71 million. Management projects capital expenditures for full year 2021 will be in the range of $450 million, which reflects a return to a normal level of maintenance activities and includes expenditures for the green ammonia project at the Donaldsonville manufacturing complex.

The Company’s wholly owned subsidiary CF Industries, Inc. redeemed in full all of the remaining $250 million outstanding principal amount of its 3.400% Senior Secured Notes due December 2021 (the “2021 Notes”) on March 20, 2021, in accordance with the optional redemption provisions provided in the indenture governing the 2021 Notes. The total amount for the redemption of the 2021 Notes was $258 million, including accrued interest.

CHS Inc. (CHS) is entitled to semi-annual distributions resulting from its minority equity investment in CF Industries Nitrogen, LLC (CFN). The estimate of the partnership distribution earned by CHS, but not yet declared, for the first quarter of 2021 is approximately $50 million.

Nitrogen Market Outlook

The global nitrogen pricing outlook remains positive, as low global coarse grains stocks-to-use ratios and higher energy prices in Europe and Asia have significantly tightened the global nitrogen supply and demand balance. CF Industries believes these dynamics are highly favorable for low-cost nitrogen producers and appear sustainable into at least 2022.

Strong global coarse grains demand has brought major global coarse grains stocks-to-use ratios to multi-year lows. This has driven commodity crop near-term and futures prices to the highest prices in nearly a decade, supporting strong demand for nitrogen fertilizer to maximize yield. The Company projects that coarse grains stocks will require more than one growing season to be replenished.

In line with the global nitrogen demand outlook, CF Industries expects strong nitrogen demand in North America. The Company expects 90-92 million planted corn acres in the United States, higher canola plantings in Canada and industrial use rising with higher economic activity in 2021.

Nitrogen requirements in other key regions are expected to remain robust throughout the year, driven by continued strong demand for urea imports from India and Brazil. The Company projects urea tender volumes in India this year will be well above the five-year average of 6.5-7.0 million metric tons. The Company also believes that improved farm incomes in Brazil will support demand in 2021 at a similar level to 2020.

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 these energy spreads will persist throughout 2021 and into 2022.

Clean Energy Strategy Update

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.

In April, CF Industries signed an engineering and procurement contract with thyssenkrupp to supply a 20 MW alkaline water electrolysis plant to produce green hydrogen at the Company’s Donaldsonville, Louisiana, manufacturing complex. Construction and installation, which will be managed by CF Industries, is expected to begin in the second half of 2021 and to finish in 2023. The cost of the project is expected to fit within the Company’s annual capital expenditure budget. CF Industries will integrate the green hydrogen generated by the electrolysis plant into existing ammonia synthesis loops to enable the production of 20,000 tons per year of green ammonia. When complete in 2023, the Donaldsonville green ammonia project will be the largest of its kind in North America.

CF Industries also is developing initiatives related to carbon dioxide sequestration and other carbon abatement projects across the Company's network to enable net-zero carbon blue ammonia production.

________________________________________________________________

_______________________________________________________________________________

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.

_______________________________________________________________________________

Comparison of 2021 to 2020 first quarter periods:

• Ammonia sales volume decreased for the first quarter of 2021 compared to 2020 due to lower supply availability from lower production.
• Ammonia average selling prices increased for the first quarter of 2021 compared to 2020 due to decreased global supply availability as higher global energy costs drove lower global operating rates.
• Ammonia adjusted gross margin per ton increased for the first quarter of 2021 compared to 2020 due to the gain the Company recognized from the net settlement of certain natural gas contracts with suppliers during February 2021 and higher average selling prices, partially offset by higher maintenance costs and higher realized natural gas costs.

   

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.