Business Wire | Page 1440

: Business Wire; Posted On Nov 06, 2020

Superior Drilling Products, Inc. Reports Third Quarter 2020 Results

Diversification strategy drove 49% growth in International revenue to $429 thousand; sequentially, International revenue was up 28%
Drill-N-Ream active in Kuwait, Ukraine, Oman, the UAE and Qatar
Total annualized cost reductions of approximately $3.5 million implemented year-to-date in response to industry conditions
Latest cost reduction efforts reduced cash break even to $700 thousand per month
Expects to achieve cash breakeven entering into 2021

VERNAL, Utah--(BUSINESS WIRE)--Superior Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or the “Company”), a designer and manufacturer of drilling tool technologies, today reported financial results for the third quarter ended September 30, 2020.

Troy Meier, Chairman and CEO, commented, “We are taking measures to provide for liquidity while keeping our sights on the long term. Importantly, our results demonstrate that the value of our Drill-N-Ream® well bore conditioning tool has been gaining traction internationally even against the temporary headwinds of current industry conditions. We are now operating in five countries outside of North America, as we are pulled into more regions by global oil field service companies who benefit from the economic value of the DNR technology. In addition, given the documented increase of drilling efficiencies when using the DNR, we believe it also contributes to the reduction of environmental impact while drilling for fossil fuels.”

Third Quarter 2020 Review ($ in thousands, except per share amounts) (See at “Definitions” the composition of product/service revenue categories.)


($ in thousands, except per share amounts)	September 30, 2020		June 30, 2020		September 30, 2019		Change Sequential		Change Year/Year
North America		1,118		1,689		4,788	(33.8	)%	(76.6	)%
International		429		335		289	27.9	%	48.7	%
Total Revenue	$	1,547	$	2,024	$	5,076	(23.6	)%	(69.5	)%
Tool Sales/Rental	$	549	$	371	$	1,361	48.1	%	(59.7	)%
Other Related Tool Revenue		642		973		1,834	(34.0	)%	(65.0	)%
Tool Revenue		1,191		1,343		3,195	(11.4	)%	(62.7	)%
Contract Services		357		681		1,881	(47.6	)%	(81.0	)%
Total Revenue	$	1,547	$	2,024	$	5,076	(23.6	)%	(69.5	)%

Year-over-year revenue was down $3.5 million, or 70%. Sequentially, revenue declined about 24%, or $0.5 million demonstrating improving market conditions given the August 2020 low point in U. S. rig count. The market was driven to its low point due to the initial impacts of COVID-19 and the geopolitically driven imbalance of supply and demand in the global oil market. Even as production activity declined around the world, International revenue grew $141 thousand, or 49%, to $429 thousand. This supported total Tool revenue, which was down just 11.4%, a much lower rate than the overall market. The Company attributes these results to the value created from improved drilling efficiencies provided by the DNR.

International revenue grew to 28% of total revenue in the quarter compared with 6% the prior-year period.

Additionally, the Company recognized $41 thousand in other income related to a machine tool lease under an SBA loan that was forgiven as part of the CARES act.

Third Quarter 2020 Operating Costs


($ in thousands, except per share amounts)	September 30, 2020			June 30, 2020			September 30, 2019			Change Sequential		Change Year/Year
Cost of revenue	$	871		$	1,100		$	2,063		(20.8	)%	(57.8	)%
As a percent of sales		56.3	%		54.3	%		40.6	%
Selling, general & administrative	$	1,530		$	1,340		$	2,502		14.2	%	(38.9	)%
As a percent of sales		98.9	%		66.2	%		49.3	%
Depreciation & amortization	$	693		$	680		$	739		1.9	%	(6.1	)%
Total operating expenses	$	3,094		$	3,120		$	5,303		(0.8	)%	(41.7	)%
Operating loss	$	(1,546	)	$	(1,096	)	$	(227	)	NM		NM
As a % of sales		(99.9	)%		(54.1	)%		(4.5	)%
Other (expense) income including income tax (expense)	$	(185	)	$	(146	)	$	(191	)	26.9	%	(3.0	)%
Net loss	$	(1,731	)	$	(1,242	)	$	(418	)	NM		NM
Diluted loss per share	$	(0.07	)	$	(0.05	)	$	(0.02	)	NM		NM
Adjusted EBITDA⁽¹⁾	$	(607	)	$	(222	)	$	1,083		NM		NM

⁽¹⁾See the attached tables for important disclosures regarding SDP’s use of Adjusted EBITDA, as well as a reconciliation of net loss to Adjusted EBITDA.

The cost of revenue decreased approximately $1.2 million over the prior-year period reflecting lower volume and lower costs resulting from the execution of the first two phases of the Company’s plans to reduce costs to better align with current demand. As a percentage of revenue, cost of sales was 56% compared with 41% for prior-year period. The increase reflects lower absorption of overhead costs on reduced volume.

The 39% decline in selling, general and administrative expense (SG&A), which includes research and development projects, was primarily due to Phases I and II of cost reduction measures initiated in April 2020.

The Company has reduced its monthly cash burn rate to approximately $700 thousand through further payroll reductions beginning October 23, 2020. This is down 22% from the previous level of approximately $200 thousand per month. The Company expects that at this rate, and given expected improvements in monthly revenue, it will achieve cash break even entering into 2021.

Net loss for the quarter was $1.7 million, compared with a net loss of $418 thousand in the third quarter of 2019. Adjusted EBITDA⁽¹⁾, a non-GAAP measure defined as earnings before interest, taxes, depreciation and amortization, non-cash stock compensation expense and unusual items, was a negative $607 thousand.

The Company believes that when used in conjunction with measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), Adjusted EBITDA, which is a non-GAAP measure, helps in the understanding of its operating performance.

Year-to-Date Review

Revenue in the first nine months of 2020 was $8.9 million, compared with $14.0 million in the same period in 2019. International revenue increased 121% in the first nine months, and U.S. revenue was down just 47%, while the average U.S. rig count market declined by 52%. The first nine months of 2020 were impacted by the effect COVID-19 has had on the demand for oil and gas which resulted in a significant reduction in drilling activity in the U.S.

Tool revenue was $6.1 million, down 33%, or $3.1 million, from the prior-year period. Contract Services revenue decreased approximately $2.7 million, or 49%, to $2.8 million. Net loss for the first nine months of 2020 was $2.8 million, or $(0.11) per diluted share. Adjusted EBITDA⁽¹⁾ for the first nine months of 2020 was $391 thousand. Adjusted EBITDA margin was 4.4% in 2020, compared with 22.9% in 2019.

Balance Sheet and Liquidity

Cash at the end of the quarter was $1.4 million, up from $1.2 million at the end of 2019, but down from $2.5 million at the end of the second quarter of 2020. Cash used in operations in the third quarter of 2020 was $842 thousand.

Total debt at the end of the third quarter was $6.7 million, down $0.2 million, or 3.6%, compared with $6.9 million at June 30, 2020.

Strategy and outlook

Mr. Meier concluded, “We expect that as the DNR is actively employed in new basins around the world and we further diversify our customer base, revenue should improve from here. We are working to develop the logistical and partnership structures to continue to penetrate international markets and globally improve how fossil fuels are produced.”

Definitions and Composition of Product/Service Revenue:

Contract Services Revenue is comprised of drill bit and other repair and manufacturing services.

Other Related Tool Revenue is comprised of royalties and fleet maintenance fees.

Tool Sales/Rental revenue is comprised of revenue from either the sale of tools or tools rented to customers.

Tool Revenue is the sum of Other Related Tool Revenue and Tool Sales/Rental revenue.

Webcast and Conference Call

The Company will host a conference call and live webcast today at 10:00 am MT (12:00 pm ET) to review the results of the quarter and discuss its corporate strategy and outlook. The discussion will be accompanied by a slide presentation that will be made available prior to the conference call on SDP’s website at www.sdpi.com/events. A question-and-answer session will follow the formal presentation.

The conference call can be accessed by calling (201) 689-8470. Alternatively, the webcast can be monitored at www.sdpi.com/events. A telephonic replay will be available from 1:00 p.m. MT (3:00 p.m. ET) the day of the teleconference until Friday, November 13, 2020. To listen to the archived call, please call (412) 317-6671 and enter conference ID number 13710951, or access the webcast replay at www.sdpi.com, where a transcript will be posted once available.

About Superior Drilling Products, Inc.

Superior Drilling Products, Inc. is an innovative, cutting-edge drilling tool technology company providing cost saving solutions that drive production efficiencies for the oil and natural gas drilling industry. The Company designs, manufactures, repairs and sells drilling tools. SDP drilling solutions include the patented Drill-N-Ream® well bore conditioning tool and the patented Strider^™ oscillation system technology. In addition, SDP is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits for a leading oil field service company. SDP operates a state-of-the-art drill tool fabrication facility, where it manufactures its solutions for the drilling industry, as well as customers’ custom products. The Company’s strategy for growth is to leverage its expertise in drill tool technology and innovative, precision machining in order to broaden its product offerings and solutions for the oil and gas industry.

Additional information about the Company can be found at: www.sdpi.com.

Safe Harbor Regarding Forward Looking Statements

This news release contains forward-looking statements and information that are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than statements of historical fact included in this release, including, without limitations, the continued impact of COVID-19 on the business, the Company’s strategy, future operations, success at developing future tools, the Company’s effectiveness at executing its business strategy and plans, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management, and ability to outperform are forward-looking statements. The use of words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project”, “forecast,” “should” or “plan, and similar expressions are intended to identify forward-looking statements, although not all forward -looking statements contain such identifying words. These statements reflect the beliefs and expectations of the Company and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the duration of the COVID-19 pandemic and related impact on the oil and natural gas industry, the effectiveness of success at expansion in the Middle East, options available for market channels in North America, the deferral of the commercialization of the Strider technology, the success of the Company’s business strategy and prospects for growth; the market success of the Company’s specialized tools, effectiveness of its sales efforts, its cash flow and liquidity; financial projections and actual operating results; the amount, nature and timing of capital expenditures; the availability and terms of capital; competition and government regulations; and general economic conditions. These and other factors could adversely affect the outcome and financial effects of the Company’s plans and described herein. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

Superior Drilling Products, Inc.
Consolidated Condensed Statements Of Operations
For the Quarter Ended September 30, 2020 and 2019
(unaudited)

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
		2020			2019			2020			2019

Revenue
North America	$	1,118,404		$	4,787,693		$	7,387,847		$	13,957,666
International		429,038			288,522			1,541,746			698,337
Total revenue	$	1,547,442		$	5,076,215		$	8,929,593		$	14,656,003

Operating cost and expenses
Cost of revenue		870,655			2,062,803			4,284,716			6,119,429
Selling, general, and administrative expenses		1,529,887			2,501,970			4,887,999			6,387,205
Depreciation and amortization expense		693,259			738,555			2,134,398			2,680,070

Total operating costs and expenses		3,093,801			5,303,328			11,307,113			15,186,704

Operating loss		(1,546,359	)		(227,113	)		(2,377,520	)		(530,701	)

Other income (expense)
Interest income		145			12,080			5,775			52,444
Interest expense		(126,482	)		(196,582	)		(450,210	)		(590,805	)
Impairment on asset held for sale		-			(6,143	)		(30,000	)		(6,143	)
Loan forgiveness		41,403			-			41,403			-
Gain on disposition of assets		-			-			142,234			14,147
Total other expense		(84,934	)		(190,645	)		(290,798	)		(530,357	)

Loss before income taxes		(1,631,293	)		(417,758	)		(2,668,318	)		(1,061,058	)

Income tax expense		(99,979	)		-			(106,414	)		-
Net loss	$	(1,731,272	)	$	(417,758	)	$	(2,774,732	)	$	(1,061,058	)

Basic loss earnings per common share	$	(0.07	)	$	(0.02	)	$	(0.11	)	$	(0.04	)

Basic weighted average common shares outstanding		25,555,167			25,074,466			25,469,609			25,042,577

Diluted loss per common share	$	(0.07	)	$	(0.02	)	$	(0.11	)	$	(0.04	)

Diluted weighted average common shares outstanding		25,555,167			25,074,466			25,469,609			25,042,577

Superior Drilling Products, Inc.
Consolidated Condensed Balance Sheets
(Unaudited)

			September 30, 2020		December 31, 2019
Assets
Current assets:
	Cash		$	1,412,370	$	1,217,014
	Accounts receivable, net			1,441,783		3,850,509
	Prepaid expenses			73,785		139,070
	Inventories			943,870		924,032
	Asset held for sale			40,000		252,704
	Other current assets			-		252,178

		Total current assets		3,911,808		6,635,507

Property, plant and equipment, net				7,859,200		8,045,692
Intangible assets, net				1,111,111		1,986,111
Right of use assets				146,450		-
Deferred tax asset				34,692		-
Other noncurrent assets				83,114		93,619
		Total assets	$	13,146,375	$	16,760,929

Liabilities and Owners' Equity
Current liabilities:
	Accounts payable		$	663,090	$	945,414
	Accrued expenses			843,197		683,832
	Customer deposits			-		61,421
	Income tax payable			98,028		15,880
	Current portion of operating lease liability			108,104		-
	Current portion of long-term debt, net of discounts			4,760,252		4,102,543

		Total current liabilities		6,472,671		5,809,090

Operating lease liability				38,346		-
Long-term debt, less current portion, net of discounts				1,937,271		3,848,863
		Total liabilities		8,448,288		9,657,953

Shareholders’ equity
	Common stock - $0.001 par value; 100,000,000 shares authorized; 25,434,776 and 25,418,126 shares issued and outstanding			25,617		25,418
	Additional paid-in-capital			40,439,035		40,069,391
	Accumulated deficit			(35,766,565)		(32,991,833)
Total shareholders’ equity				4,698,087		7,102,976
		Total liabilities and shareholders' equity	$	13,146,375	$	16,760,929

Superior Drilling Products, Inc.
Consolidated Condensed Statement of Cash Flows
For The Nine Months Ended September 30, 2020 and 2019
(Unaudited)

			September 30, 2020			September 30, 2019
Cash Flows From Operating Activities
	Net loss	$	(2,774,732	)	$	(1,061,058	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
	Depreciation and amortization expense		2,134,398			2,680,070
	Share based compensation expense		369,843			473,717
	Impairment on asset held for sale		30,000			6,143
	Gain on disposition of assets		(142,234	)		(14,147	)
	Gain on forgiveness of loan		(41,403	)		-
	Amortization of deferred loan costs		13,894			10,561
Changes in operating assets and liabilities:
	Accounts receivable		2,408,726			(1,825,347	)
	Inventories		(942,831	)		(539,586	)
	Prepaid expenses and other noncurrent assets		327,968			(39,998	)
	Accounts payable, accrued expenses and income tax payable		(18,728	)		1,531,085
	Other noncurrent assets		(34,692	)		-
	Other long term liabilities		(61,421	)		-
Net Cash From Operating Activities			1,268,788			1,221,440

Cash Flows From Investing Activities
	Purchases of property, plant and equipment		(154,475	)		(392,691	)
	Proceeds from sale of fixed assets		117,833			-
Net Cash From Investing Activities			(36,642	)		(392,691	)

Cash Flows From Financing Activities
	Principal payments on debt		(2,167,539	)		(3,813,443	)
	Proceeds received from debt borrowings		964,120			800,000
	Payments on revolving loan		(1,018,690	)		(735,019	)
	Proceeds received on revolving loan		1,185,319			1,517,005
	Debt issuance costs		-			(70,103	)
Net Cash From Financing Activities			(1,036,790	)		(2,301,560	)

Net Change in Cash			195,356			(1,472,811	)
Cash at Beginning of Period			1,217,014			4,264,767
Cash at End of Period		$	1,412,370		$	2,791,956

Supplemental information:
	Cash paid for Interest	$	460,640		$	673,251
	Acquisition of equipment by issuance of note payable		-			183,378
	Inventory converted to property, plant and equipment		922,993			582,879
	Reduction of debt with sale of asset		211,667			-

Superior Drilling Products, Inc.
Adjusted EBITDA⁽¹⁾ Reconciliation
(unaudited)

($, in thousands)	Three Months Ended
	September 30, 2020			September 30, 2019			June 30, 2020

GAAP net loss	$	(1,731,272	)	$	(417,758	)	$	(1,241,506	)

Add back:
Depreciation and amortization		693,259			738,555			680,375
Inventory write off		-			6,143			-
Interest expense, net		126,337			184,502			145,528
Share-based compensation		157,842			155,749			105,005
Net non-cash compensation		88,200			415,438			88,200
Income tax expense		99,979			-			225
Gain on disposition of assets		(41,403	)		-			-
Non-GAAP adjusted EBITDA⁽¹⁾	$	(607,058	)	$	1,082,629		$	(222,173	)

GAAP Revenue	$	1,547,442		$	5,076,215		$	2,024,388
Non-GAAP Adjusted EBITDA Margin		-39.2	%		21.3	%		-11.0	%


	Nine Months Ended
	September 30, 2020			September 30, 2019

GAAP net loss	$	(2,774,732	)	$	(1,061,058	)
Add back:
Depreciation and amortization		2,134,398			2,680,070
Inventory write off		-			142,143
Interest expense, net		444,435			538,361
Share-based compensation		369,843			473,717
Net non-cash compensation		264,600			591,838
Income tax expense		106,414			-
Gain on disposition of assets		(153,637	)		(14,147	)
Non-GAAP adjusted EBITDA⁽¹⁾	$	391,321		$	3,350,924

GAAP Revenue	$	8,929,593		$	14,656,003
Non-GAAP Adjusted EBITDA Margin		4.4	%		22.9	%

⁽¹⁾ Adjusted EBITDA represents net income adjusted for income taxes, interest, depreciation and amortization and other items as noted in the reconciliation table. The Company believes Adjusted EBITDA is an important supplemental measure of operating performance and uses it to assess performance and inform operating decisions. However, Adjusted EBITDA is not a GAAP financial measure. The Company’s calculation of Adjusted EBITDA should not be used as a substitute for GAAP measures of performance, including net cash provided by operations, operating income and net income. The Company’s method of calculating Adjusted EBITDA may vary substantially from the methods used by other companies and investors are cautioned not to rely unduly on it.

Contacts

For more information, contact investor relations:
Deborah K. Pawlowski, Kei Advisors LLC
(716) 843-3908, This email address is being protected from spambots. You need JavaScript enabled to view it.

: Business Wire; Posted On Nov 06, 2020

Cheniere Partners Reports Third Quarter 2020 Results and Provides Guidance Update

Reconfirms 2020 Guidance and Provides 2021 Guidance

Increases Run Rate Production and Financial Guidance

HOUSTON--(BUSINESS WIRE)--Cheniere Energy Partners, L.P. (NYSE American: CQP):

Summary of Third Quarter 2020 Results (in millions, except LNG data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020				2019		2020			2019
Revenues	$	982			$	1,476	$	4,170		$	4,930
Net income (loss)	$	(67	)		$	110	$	774		$	727
Adjusted EBITDA¹	$	352			$	543	$	1,990		$	1,741
LNG exported:
Number of cargoes		36				79		186			241
Volumes (TBtu)		126				280		656			856
LNG volumes loaded (TBtu)		122				277		656			855

Summary Guidance


2020 Full Year Distribution Guidance
							2020
Distribution per Unit							$	2.55	-	$	2.65

2021 Full Year Distribution Guidance
							2021
Distribution per Unit							$	2.60	-	$	2.70

Run Rate Guidance
	Previous Run Rate						Current Run Rate²
Distributable Cash Flow¹ per Unit	$	3.70		-	$	3.90	$	3.75	-	$	3.95
Production Capacity per Train³ (mtpa)		4.8		-		4.9		4.9	-		5.1

Recent Highlights

Strategic

In August 2020, Sabine Pass Liquefaction, LLC (“SPL”) entered into an agreement with certain Cheniere Energy, Inc. (“Cheniere”) subsidiaries to provide the ability, in limited circumstances, to fulfill commitments to LNG buyers in the event operational conditions impact operations at either the SPL Project (defined below) or Cheniere’s Corpus Christi liquefaction facility. The purchase price for such cargoes would be (i) 115% of the applicable natural gas feedstock purchase price or (ii) a free-on-board U.S. Gulf Coast LNG market price, whichever is greater.

Operational

As of October 31, 2020, more than 1,075 cumulative LNG cargoes totaling approximately 75 million tonnes of LNG have been produced, loaded, and exported from the SPL Project.
In August and September 2020, we coordinated with Cheniere’s Corpus Christi liquefaction facility and with our counterparties to fulfill all of our commercial obligations despite the operational impacts of Hurricane Laura, which included a temporary suspension of operations at the SPL Project.

Financial

In July 2020, the board of directors of our general partner confirmed and approved that, following the distribution with respect to the three months ended June 30, 2020, the financial tests required for conversion of our subordinated units were met under the terms of the partnership agreement. Accordingly, effective August 17, 2020, the first business day following the payment of the distribution, all of our subordinated units were automatically converted into common units on a one-for-one basis and the subordination period was terminated.

Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE American: CQP) reported net loss of $67 million for the three months ended September 30, 2020, compared to net income of $110 million for the comparable 2019 period. The increase in net loss for the three months ended September 30, 2020 was primarily due to decreased total margins⁴, partially offset by decreased costs related to certain maintenance and related activities at the SPL Project which occurred in the 2019 period. Total margins decreased during the three months ended September 30, 2020 primarily due to the accelerated recognition of revenues in prior periods related to elections by our long-term SPA customers to not take delivery of LNG cargoes that were scheduled for delivery during the current period, partially offset by an increase in margins per MMBtu of LNG delivered to customers and recognized in income.

Cheniere Partners reported net income of $774 million for the nine months ended September 30, 2020, compared to $727 million for the comparable 2019 period. The increase in net income for the nine months ended September 30, 2020 was primarily due to increased total margins, partially offset by increases in interest expense, loss on modification or extinguishment of debt, and costs incurred in response to the COVID-19 pandemic. Total margins increased during the nine months ended September 30, 2020 primarily due to increased LNG revenues including both cargoes delivered to customers and cargoes for which customers notified us that they would not take delivery, primarily as a result of an additional Train in operation and slightly increased margins per MMBtu of LNG delivered to customers and recognized in income, partially offset by an increase in net losses from changes in fair value of commodity derivatives.

Margins per MMBtu of LNG delivered to customers and recognized in income increased during the three and nine months ended September 30, 2020 primarily due to a higher proportion of total volumes sold under higher-margin long-term contracts.

Adjusted EBITDA¹ was $352 million for the three months ended September 30, 2020, compared to $543 million for the comparable 2019 period. The decrease in Adjusted EBITDA during the three months ended September 30, 2020 was primarily due to a decrease in total margins as detailed above, partially offset by decreased costs related to certain maintenance and related activities at the SPL Project which occurred in the 2019 period.

Adjusted EBITDA was $1.99 billion for the nine months ended September 30, 2020, compared to $1.74 billion for the comparable 2019 period. The increase in Adjusted EBITDA during the nine months ended September 30, 2020 was primarily due to increased LNG revenues including both cargoes delivered to customers and cargoes for which customers notified us that they would not take delivery, primarily as a result of an additional Train in operation and slightly increased margins per MMBtu of LNG delivered to customers and recognized in income as detailed above, partially offset by costs incurred in response to the COVID-19 pandemic.

During the three and nine months ended September 30, 2020, we recognized $109 million and $513 million, respectively, in revenues recognized from LNG cargoes for which customers have notified us that they will not take delivery, of which $21 million would have otherwise been recognized subsequent to September 30, 2020, if the cargoes were lifted pursuant to the delivery schedules with the customers. LNG revenues during the three months ended September 30, 2020 excluded $244 million that would have otherwise been recognized during the quarter if the cargoes were lifted pursuant to the delivery schedules with the customers, as these revenues were recognized during the three months ended June 30, 2020. Excluding the impact of cargo cancellations related to periods subsequent to September 30, 2020 and those received in prior periods for the current periods, our total revenues would have been $1.21 billion and $4.15 billion for the three and nine months ended September 30, 2020, respectively.

During the three and nine months ended September 30, 2020, 36 and 186 LNG cargoes, respectively, were exported from the SPL Project and recognized in income. Additionally, during the three and nine months ended September 30, 2020, SPL recognized in income three cargoes totaling approximately 11 TBtu of LNG which were procured from Cheniere’s Corpus Christi liquefaction facility due to the operational impact of Hurricane Laura.

Cargo Cancellation Revenue Summary

The following table summarizes the timing impacts of revenue recognition related to cargoes for which customers elected to not take delivery on our revenues for the three and nine months ended September 30, 2020 (in millions):

	Three Months Ended			Nine Months Ended
	September 30, 2020			September 30, 2020
Total revenues	$	982		$	4,170
Impact of cargo cancellations recognized in the prior period for deliveries scheduled in the current period	244			—
Impact of cargo cancellations recognized in the current period for deliveries scheduled in subsequent periods	(21		)	(21		)
Total revenues excluding the timing impact of cargo cancellations	$	1,205		$	4,149

Liquefaction Project Update

	SPL Project
	Train 6
Project Status	Under Construction
Project Completion Percentage ⁽¹⁾	70.9% ⁽²⁾
Expected Substantial Completion	2H 2022
Note: Project update excludes Trains in operation
(1) Project completion percentage as of September 30, 2020
(2) Engineering 97.8% complete, procurement 98.2% complete, and construction 34.6% complete

SPL Project

We operate five natural gas liquefaction Trains and are constructing one additional Train for a total production capacity of approximately 30 million tonnes per annum (“mtpa”) of LNG at the Sabine Pass LNG terminal (the “SPL Project”).

Distributions to Unitholders

We will pay a cash distribution of $0.650 per common unit to unitholders of record as of November 6, 2020 and the related general partner distribution on November 13, 2020.

Investor Conference Call and Webcast

Cheniere will host a conference call to discuss its financial and operating results for the third quarter 2020 on Friday, November 6, 2020, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website. The call and accompanying slide presentation may include financial and operating results or other information regarding Cheniere Partners.

¹		Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for further details.
²		Run rate assumes full operations of six Trains.
³		Run rate average annual production capacity which includes expected impacts of planned maintenance, production reliability, potential overdesign, and debottlenecking opportunities.
⁴		Total margins as used herein refers to total revenues less cost of sales.

About Cheniere Partners

Cheniere Partners is developing, constructing and operating natural gas liquefaction facilities at the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less than four miles from the Gulf Coast. Cheniere Partners is currently operating five natural gas liquefaction Trains and is constructing one additional Train for a total production capacity of approximately 30 mtpa of LNG at the Sabine Pass terminal. The Sabine Pass LNG terminal has operational regasification facilities that include five LNG storage tanks, two marine berths and vaporizers and an additional marine berth that is under construction. Cheniere Partners also owns the Creole Trail Pipeline, a 94-mile pipeline that interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines.

For additional information, please refer to the Cheniere Partners website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, filed with the Securities and Exchange Commission.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements.” All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere Partners’ financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding expectations regarding regulatory authorizations and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere Partners’ LNG terminal and liquefaction business, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, and (vii) statements regarding the COVID-19 pandemic and its impact on our business and operating results. Although Cheniere Partners believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere Partners’ actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere Partners’ periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere Partners does not assume a duty to update these forward-looking statements.

(Financial Tables Follow)



Cheniere Energy Partners, L.P. Consolidated Statements of Operations (in millions, except per unit data)⁽¹⁾ (unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020			2019			2020			2019
Revenues
LNG revenues	$	807		$	1,140		$	3,588		$	3,678
LNG revenues—affiliate	103			257			352			1,017
Regasification revenues	67			66			202			199
Other revenues	5			13			28			36
Total revenues	982			1,476			4,170			4,930

Operating costs and expenses
Cost of sales (excluding items shown separately below)	454			742			1,551			2,501
Cost of sales—affiliate	33			6			38			6
Operating and maintenance expense	146			172			463			472
Operating and maintenance expense—affiliate	34			34			115			100
General and administrative expense	2			3			12			9
General and administrative expense—affiliate	24			34			73			82
Depreciation and amortization expense	137			138			413			390
Impairment expense and loss on disposal of assets	—			1			5			6
Total operating costs and expenses	830			1,130			2,670			3,566

Income from operations	152			346			1,500			1,364

Other income (expense)
Interest expense, net of capitalized interest	(221		)	(231		)	(691		)	(648		)
Loss on modification or extinguishment of debt	—			(13		)	(43		)	(13		)
Other income, net	2			8			8			24
Total other expense	(219		)	(236		)	(726		)	(637		)

Net income (loss)	$	(67	)	$	110		$	774		$	727

Basic and diluted net income (loss) per common unit	$	(0.08	)	$	0.19		$	1.55		$	1.38

Weighted average number of common units outstanding used for basic and diluted net income (loss) per common unit calculation	414.8			348.6			370.9			348.6

______________
(1)		Please refer to the Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, filed with the Securities and Exchange Commission.

Cheniere Energy Partners, L.P. Consolidated Balance Sheets (in millions, except unit data) ⁽¹⁾

	September 30,			December 31,
	2020			2019
ASSETS	(unaudited)
Current assets
Cash and cash equivalents	$	1,254		$	1,781
Restricted cash	157			181
Accounts and other receivables, net	204			297
Accounts receivable—affiliate	82			105
Advances to affiliate	120			158
Inventory	113			116
Derivative assets	14			17
Other current assets	117			51
Other current assets—affiliate	—			1
Total current assets	2,061			2,707

Property, plant and equipment, net	16,666			16,368
Operating lease assets, net	100			94
Debt issuance costs, net	18			15
Non-current derivative assets	30			32
Other non-current assets, net	155			168
Total assets	$	19,030		$	19,384

LIABILITIES AND PARTNERS’ EQUITY
Current liabilities
Accounts payable	$	17		$	40
Accrued liabilities	564			709
Accrued liabilities—related party	2			—
Due to affiliates	42			46
Deferred revenue	179			155
Deferred revenue—affiliate	—			1
Current operating lease liabilities	7			6
Derivative liabilities	31			9
Total current liabilities	842			966

Long-term debt, net	17,573			17,579
Non-current operating lease liabilities	92			87
Non-current derivative liabilities	25			16
Other non-current liabilities	2			1
Other non-current liabilities—affiliate	18			20

Partners’ equity
Common unitholders’ interest (484.0 million and 348.6 million units issued and outstanding at September 30, 2020 and December 31, 2019, respectively)	627			1,792
Subordinated unitholders’ interest (zero and 135.4 million units issued and outstanding at September 30, 2020 and December 31, 2019, respectively)	—			(996		)
General partner’s interest (2% interest with 9.9 million units issued and outstanding at September 30, 2020 and December 31, 2019)	(149		)	(81		)
Total partners’ equity	478			715
Total liabilities and partners’ equity	$	19,030		$	19,384

______________
(1)		Please refer to the Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, filed with the Securities and Exchange Commission.

Reconciliation of Non-GAAP Measures

Regulation G Reconciliation

In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains a non-GAAP financial measure. Adjusted EBITDA is a non-GAAP financial measure that is used to facilitate comparisons of operating performance across periods. This non-GAAP measure should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP, and the reconciliation from these results should be carefully evaluated.

Adjusted EBITDA is calculated by taking net income (loss) before interest expense, net of capitalized interest, changes in the fair value and settlement of our interest rate derivatives, taxes, depreciation and amortization, and adjusting for the effects of certain non-cash items, other non-operating income or expense items and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, changes in the fair value of our commodity derivatives, impairment expense and loss on disposal of assets, and non-recurring costs related to our response to the COVID-19 outbreak which are incremental to and separable from normal operations. Adjusted EBITDA is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.

We believe Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management’s evaluation of business performance. Management believes Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation and amortization which vary substantially from company to company depending on capital structure, the method by which assets were acquired and depreciation policies. Further, the exclusion of certain non-cash items, other non-operating income or expense items and other items not otherwise predictive or indicative of ongoing operating performance enables comparability to prior period performance and trend analysis.

Distributable Cash Flow is defined as Adjusted EBITDA adjusted for taxes, maintenance capital expenditures, interest expense net of capitalized interest, interest income, and changes in the fair value and non-recurring settlement of interest rate derivatives.

We believe Distributable Cash Flow is a useful performance measure for management, investors and other users of our financial information to evaluate our performance and to measure and estimate the ability of our assets to generate cash earnings after servicing our debt, paying cash taxes and expending sustaining capital, that could be used for discretionary purposes such as common unit distributions, unit repurchases, retirement of debt, or expansion capital expenditures. Management uses this measure and believes it provides users of our financial statements a useful measure reflective of our business’s ability to generate cash earnings to supplement the comparable GAAP measure. Distributable Cash Flow is not intended to represent cash flows from operations or net income (loss) as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.

Adjusted EBITDA

The following table reconciles our Adjusted EBITDA to U.S. GAAP results for the three and nine months ended September 30, 2020 and 2019 (in millions):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020			2019			2020			2019
Net income (loss)	$	(67	)	$	110		$	774		$	727
Interest expense, net of capitalized interest	221			231			691			648
Loss on modification or extinguishment of debt	—			13			43			13
Other income, net	(2		)	(8		)	(8		)	(24		)
Income from operations	$	152		$	346		$	1,500		$	1,364
Adjustments to reconcile income from operations to Adjusted EBITDA:
Depreciation and amortization expense	137			138			413			390
Loss (gain) from changes in fair value of commodity derivatives, net	62			58			36			(19		)
Impairment expense and loss on disposal of assets	—			1			5			6
Incremental costs associated with COVID-19 response	1			—			36			—
Adjusted EBITDA	$	352		$	543		$	1,990		$	1,741

We have not made any forecast of net income on a run rate basis, which would be the most directly comparable financial measure under GAAP, in part because net income includes the impact of derivative transactions, which cannot be determined at this time, and we are unable to reconcile differences between run rate Distributable Cash Flow and income.

Contacts

Cheniere Energy Partners, L.P.
Investors
Randy Bhatia, 713-375-5479
Megan Light, 713-375-5492
or
Media Relations
Eben Burnham-Snyder, 713-375-5764
Jenna Palfrey, 713-375-5491

: Business Wire; Posted On Nov 06, 2020

North America LNG Liquefaction Industry Outlook Report 2020-2024 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "LNG Liquefaction Industry Outlook in North America to 2024 - Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Liquefaction Terminals" report has been added to ResearchAndMarkets.com's offering.

"LNG Liquefaction Industry Outlook in North America to 2024 - Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Liquefaction Terminals" is a comprehensive report on the North America LNG liquefaction industry.

The report provides terminal name, operator name and design liquefaction processing capacity for all active, planned, announced, suspended and decommissioned liquefaction terminals in the region by country for the period 2014 to 2024. The report provides new-build LNG liquefaction capital expenditure outlook by key countries, year on year, from 2020 to 2024. Further, the report also offers recent developments and latest awarded contracts at the country level, wherever available.

Scope

Updated information on all active, planned and announced liquefaction terminals in North America with start year up to 2024
Provides capacity data by liquefaction terminals from 2014 to 2019, outlook up to 2024
Provides key details such as terminal name, operator name, terminal status for all active, planned and announced liquefaction terminals in North America
Provides capital expenditure outlook by year and by key countries for planned and announced (new-build) liquefaction terminals till 2024
Latest developments and contracts related to liquefaction terminals, wherever available

Reasons to Buy

Obtain the most up to date information available on active, planned and announced liquefaction terminals in North America
Identify growth segments and opportunities in the industry
Facilitate decision making on the basis of strong historic and outlook of capacity data
Assess key liquefaction terminals data of your competitors

Key Topics Covered:

1. Introduction

1.1 What is this Report About?

1.2 Market Definition

2. North America LNG Liquefaction Industry

2.1 North America LNG Liquefaction Industry, Overview of Active LNG Liquefaction Terminals Data

2.2 North America LNG Liquefaction Industry, Overview of Planned and Announced LNG Liquefaction Terminals Data

3. North America LNG Liquefaction Industry, Liquefaction Snapshot

3.1 North America LNG Liquefaction Industry, Capacity by Country, 2014-2024

3.2 North America LNG Liquefaction Industry, Country Comparisons

3.3 North America LNG Liquefaction Industry, Planned and Announced Liquefaction Terminals, Capacity Additions and Capex by Country

3.4 North America LNG Liquefaction Industry, New Terminals and Capacity Expansions by Country

4. North America LNG Liquefaction Industry, US

4.1 Recent Developments

4.2 Recent Contracts

5. North America LNG Liquefaction Industry, Canada

5.1 Recent Developments

5.2 Recent Contracts

6. North America LNG Liquefaction Industry, Mexico

6.1 Recent Developments

6.2 Recent Contracts

7. Appendix

For more information about this report visit https://www.researchandmarkets.com/r/bq0x50

Contacts

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

: Business Wire; Posted On Nov 06, 2020

Trex Company Named Among FORTUNE’s 100 Fastest Growing Companies

Composite Decking Leader Recognized as Highest Ranking Building Materials Manufacturer

WINCHESTER, Va.--(BUSINESS WIRE)--Trex^® Company (NYSE: TREX), the world’s #1 brand of wood-alternative decking and railing and leader in high-performance, low-maintenance outdoor living products, was named to FORTUNE Magazine’s 2020 list of the 100 fastest-growing companies worldwide. Trex captured spot #57 and was the highest-ranked building materials manufacturer on this year’s list.

“We are honored to be recognized by FORTUNE as one of the fastest-growing public companies in 2020 and inspired to continue enhancing the lives of people by engineering what’s next in outdoor living,” said Bryan Fairbanks, president and CEO of Trex Company. “Since Trex's inception, we’ve developed and nurtured long-standing relationships with the top specialty material distributors, pro channel dealers and DIY retailers, making Trex the most widely available and purchased brand throughout North America and increasingly around the world. We continue to focus on ensuring these channel partners grow alongside Trex as we invest in our brand and deliver market-leading products that meet the needs of homeowners seeking to improve their outdoor living spaces.”

Trex was founded in the mid-1990s on the premise that ingenuity can help extract value from what was once seen as waste. Today, the entire high-performance Trex decking portfolio is made from a minimum of 95% recycled material that repurposes more than 800 million pounds of recycled plastic and reclaimed wood fiber annually. In fact, Trex is one of the largest recyclers of discarded plastic shopping bags and polyethylene film in North America. Furthermore, the company uses some of the most earth-friendly manufacturing processes in the world, reclaiming factory waste and eliminating the use of harmful chemicals.

“This accolade is especially meaningful to us because it demonstrates that a company can build a successful business model based on recycled materials and ingenious design,” noted Fairbanks. “As proud as I am about our outstanding growth, I am even more excited about our strategic initiative to accelerate the conversion from wood decking to sustainable Trex composite decking – raising the bar for product performance and aesthetics – as well as environmental responsibility.”

FORTUNE measures and ranks the top-performing companies over three years based on revenues, profits and stock returns. Because the methodology evaluates companies over a three-year period, the bulk of the performance results that drove this year’s rankings were accumulated before COVID-19 began affecting the global economy. Trex, however, has continued to grow despite and throughout the pandemic recently reporting a 19% YOY increase in consolidated net sales for Q3 2020.

For more information on the FORTUNE 2020 Fastest-Growing Companies list methodology, visit https://fortune.com/100-fastest-growing-companies/.

For more information about high-performance, low-maintenance Trex products, visit trex.com.

About Trex Company, Inc.

Trex Company, Inc. [NYSE: TREX] is the world’s largest manufacturer of high performance wood-alternative decking and railing, with more than 25 years of product experience. Stocked in more than 6,700 retail locations worldwide, Trex outdoor living products offer a wide range of style options with fewer ongoing maintenance requirements than wood, as well as a truly environmentally responsible choice. For more information, visit trex.com. You also can follow Trex on Twitter (@Trex_Company), Instagram (@trexcompany), Pinterest (trexcompany) or Houzz (trexcompany-inc), “like” Trex on Facebook (@TrexCompany) or view product and demonstration videos on the brand’s YouTube channel (TheTrexCo).

Contacts

Ben Arens or Sara Tatay
L.C. Williams & Associates
800/837-7123 or 312/565-3900
This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it.

: Business Wire; Posted On Nov 06, 2020

International Seaways Reports Third Quarter 2020 Results

NEW YORK--(BUSINESS WIRE)--International Seaways, Inc. (NYSE: INSW) (the “Company” or “INSW”), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets, today reported results for the third quarter of 2020.

Highlights

Net income for the third quarter was $14.0 million, or $0.50 per diluted share, compared to a net loss of $11.1 million, or $0.38 per diluted share, in the third quarter of 2019. Net income for the quarter reflects the impact of a $12.8 million impairment charge and loss on sale of vessels and a $0.7 million write-off of deferred finance costs and fees associated with the extinguishment of debt. Net income excluding these items was $27.6 million, or $0.98 per diluted share.
Time charter equivalent (TCE) revenues^(A) for the third quarter were $94.0 million, compared to $65.8 million for the third quarter of 2019.
Adjusted EBITDA^(B) for the third quarter was $54.6 million, compared to $23.8 million for the same period of 2019.
Cash^(C) was $153.7 million as of September 30, 2020; total liquidity was $193.7 million, including $40.0 million of undrawn revolver.
Renewed share buyback program and increased authorization to a further $50 million.
Paid a regular quarterly cash dividend of $0.06 per share in September 2020 and announced a quarterly cash dividend of $0.06 per share payable in December 2020.

Prepaid the full $40.0 million outstanding under the Transition Term Loan Facility
Subsequent to the end of the quarter, agreed to sell a 2002-built VLCC, Seaways Mulan, a 2003-built VLCC, Seaways Rosalyn, and a 2001-built Aframax, Seaways Fran.
Signed 10-year extensions to our contracts for our two FSO joint ventures, which are expected to generate in excess of $322 million of contract revenues for the Company over the additional 10-year extension periods.

“During the third quarter, we generated solid results and increased our cash position despite current pressure on rates,” said Lois K. Zabrocky, International Seaways’ President and CEO. “Our sizeable fleet of crude and product tankers performed well during the quarter, and the four favorable time charters we executed earlier this year at very strong rates were instrumental in enabling us to optimize revenue during the current period of oil inventory destocking. Importantly, taking into consideration these time charters, two of which extend well into 2021, the contributions from our FSO JV, and our ongoing strategy of paying down debt, we have reduced our cash breakeven rate to approximately $17,500 per day.”

Ms. Zabrocky continued, “Moving forward, we remain positive on the long-term outlook of the tanker market. Our strategic focus continues to be on executing our disciplined and balanced approach to capital allocation, while continuing to advance initiatives that unlock significant value for shareholders. With this important goal in mind, we have finalized 10-year extensions for our FSO joint venture contracts, which are expected to generate in excess of $322 million of contract revenues for the Company, bolstering our contracted cash flows for another decade. In addition, and as we continue to operate in a COVID-19 environment, our priorities remain the safety of our onshore and at-sea professionals and providing best-in-class service to our leading energy customers.”

Jeff Pribor, the Company’s CFO, added, “We have succeeded in generating strong cash flows year-to-date for shareholders and deploying capital to further pay down debt and significantly enhance our financial strength. Notably, our total liquidity at quarter’s end was $194 million, and our net loan to value was 39%, one of the lowest among our tanker peers. We also paid our regular quarterly cash dividend of $0.06, complementing the approximate 5% of stock we have purchased in 2020 thus far. With our ample liquidity, we remain in a strong position to continue to return capital to shareholders and take advantage of strategic opportunities as they arise.”

Third Quarter 2020 Results

Net income for the third quarter was $14.0 million, or $0.50 per diluted share, compared to a net loss of $11.1 million, or $0.38 per diluted share, in the third quarter of 2019. The increase in the third quarter of 2020 primarily reflects higher TCE revenues and substantially lower charter hire expenses and interest expense. An increase of $14.3 million in losses on disposals of vessels, and other property, including impairments served to partially offset such increases. Net income for the nine months ended September 30, 2020 was $111.4 million, or $3.88 per diluted share, compared to a net loss of $16.7 million, or $0.57 per share, for the nine months ended September 30, 2019.

Consolidated TCE revenues for the third quarter of 2020 were $94.0 million, compared to $65.8 million for the third quarter of 2019. Shipping revenues for the third quarter of 2020 were $99.9 million, compared to $71.3 million for the third quarter of 2019. Consolidated TCE revenues for the nine months ended September 30,2020 were $349.1 million, compared to $222.3 million in the prior year period. Shipping revenues for the nine months ended September 30, 2020 were $364.9 million compared to $242.2 million for the prior year period.

The third quarter began with some strength in the crude tanker market, carried over from the strong environment of the second quarter. The large inventory build-up seen in the second quarter as a result of overproduction and oil contango put pressure on tanker rates during the third quarter.

In the third quarter of 2020, the Company recorded an impairment charge of $11.7 million for a 2002-built and 2003-built VLCC, both of which have been contracted for sale, to write-down their carrying values to their estimated fair values at September 30, 2020. Interest expense decreased by $9.0 million for the third quarter of 2020 compared to the third quarter of 2019 as a result of lower average outstanding debt balances in the current year periods compared to the 2019 periods. This was principally attributable to $110 million in principal prepayments on the 2017 Term Loan Facility during the second half of 2019, the $40 million repayment of the Transition Loan Facility in August 2020 and the use of cash in the January 2020 refinancing. In addition, lower average margins and interest rates on the refinanced portion of debt entered into by the Company during the first quarter of 2020, and lower average LIBOR rates during the third quarter of 2020 contributed to the decline in interest expense.

Adjusted EBITDA was $54.6 million for the quarter, compared to $23.8 million for the third quarter of 2019. Adjusted EBITDA was $225.1 million for the nine months ended September 30, 2020, compared to $92.5 million for the nine months ended September 30, 2019.

Crude Tankers

TCE revenues for the Crude Tankers segment were $79.8 million for the quarter compared to $49.4 million for the third quarter of 2019. This increase primarily resulted from the impact of higher average rates in the VLCC, Suezmax, and Panamax sectors, with average spot earnings climbing to approximately $35,800, $28,200, and $15,500 per day, respectively, aggregating approximately $33.9 million. Also contributing was a 214-day increase in VLCC revenue days, which includes 110 days covered under the Company’s loss of hire insurance policy related to an off-hire period for the Seaways Mulan, as it was held by Indonesian authorities from February 8, 2020 through June 8, 2020 and was not redelivered back to the Tankers International Pool until June 28, 2020. The Company received $4.1 million from its insurance provider as a result of this recovery. Shipping revenues for the Crude Tankers segment were $83.6 million for the third quarter of 2020 compared to $54.9 million for the third quarter of 2019. TCE revenues for the Crude Tankers segment were $274.5 million for the nine months ended September 30, 2020, compared to $167.0 million for the same period last year. Shipping revenues for the Crude Tankers segment were $287.7 million for the nine months ended September 30, 2020, compared to $186.7 million for the same period last year.

Product Carriers

TCE revenues for the Product Carriers segment were $14.2 million for the quarter, compared to $16.4 million for the third quarter of 2019. Higher period-over-period average daily blended rates earned by the LR2 and MR fleets, with average spot rates rising to approximately $21,500 and $14,400 per day, respectively, accounted for an increase in TCE revenues of approximately $0.8 million. This was offset by a $2.6 million days-based decline arising primarily from a 283-day decrease in MR revenue days in the third quarter, which resulted principally from the redelivery of four time chartered-in MRs to their owners between the third quarter of 2019 and July 2020. Shipping revenues for the Product Carriers segment were $16.2 million for the third quarter of 2020, compared to $16.4 million for the third quarter of 2019. TCE revenues for the Product Carriers segment were $74.5 million for the nine months ended September 30,2020, compared to $55.3 million in the 2019 nine-month period. Shipping revenues for the Product Carriers segment were $77.2 million for the nine months ended September 30, 2020, compared to $55.4 million for the same period last year.

Share Repurchases

During the quarter, the Company’s Board of Directors authorized a renewal of the share repurchase program in the amount of $30 million. On October 28, 2020, the Board of Directors increased the share repurchase program authorization to $50 million. No shares were acquired under the repurchase program in the third quarter.

Debt Prepayment

During the third quarter of 2020, the Company prepaid the $40.0 million outstanding principal balance under the Transition Term Loan Facility using available cash on hand, increasing the number of unencumbered ships in our fleet to 14.

Payment of Regular Cash Dividend

The Company’s Board of Directors declared a regular quarterly cash dividend of $0.06 per share of common stock on October 28, 2020. The dividend will be paid on December 23, 2020 to shareholders of record at the close of business on December 8, 2020.

Vessel Sales

Subsequent to quarter end, the Company agreed to sell a 2002-built VLCC, Seaways Mulan, a 2003-built VLCC, Seaways Rosalyn, and a 2001-built Aframax, Seaways Fran, for delivery to buyers between November 2020 and January 2021.

10-Year Contract Extensions for FSO Joint Venture

In October 2020, the FSO Joint Venture signed a 10-year extension on each of the existing service contracts with North Oil Company (“NOC”), relating to the two FSO service vessels. The extensions will commence in direct continuation of the existing contracts, which were originally scheduled to expire during the third quarter of 2022.

Conference Call

The Company will host a conference call to discuss its third quarter 2020 results at 9:00 a.m. Eastern Time (“ET”) on Friday, November 6, 2020. To access the call, participants should dial (855) 940-9471 for domestic callers and (412) 317-5211 for international callers. Please dial in ten minutes prior to the start of the call. A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at www.intlseas.com.

An audio replay of the conference call will be available starting at 12:00 p.m. ET on Friday, November 6, 2020 through 11:59 p.m. ET on Friday, November 13, 2020 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Access Code 10149198.

About International Seaways, Inc.

International Seaways, Inc. (NYSE: INSW) is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. International Seaways owns and operates a fleet of 39 vessels, including 13 VLCCs, two Suezmaxes, five Aframaxes/LR2s, 13 Panamaxes/LR1s and 4 MR tankers. Through joint ventures, it has ownership interests in two floating storage and offloading service vessels. International Seaways has an experienced team committed to the very best operating practices and the highest levels of customer service and operational efficiency. International Seaways is headquartered in New York City, NY. Additional information is available at https://www.intlseas.com.

Forward-Looking Statements

This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to the Company’s plans to issue dividends, its prospects, including statements regarding vessel acquisitions, trends in the tanker markets, and possibilities of strategic alliances and investments. Forward-looking statements are based on the Company’s current plans, estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors outlined in more detail in the Annual Report on Form 10-K for 2019 for the Company, the Quarterly Report on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, and in similar sections of other filings made by the Company with the SEC from time to time. The Company assumes no obligation to update or revise any forward-looking statements. Forward-looking statements and written and oral forward-looking statements attributable to the Company or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by the Company with the SEC.



Consolidated Statements of Operations
($ in thousands, except per share amounts)
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2020		2019		2020		2019
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Shipping Revenues:
Pool revenues	$	49,217	$	46,278	$	250,485	$	158,628
Time and bareboat charter revenues		31,294		7,638		66,553		19,699
Voyage charter revenues		19,372		17,362		47,907		63,835
Total Shipping Revenues		99,883		71,278		364,945		242,162

Operating Expenses:
Voyage expenses		5,851		5,470		15,893		19,838
Vessel expenses		31,501		30,350		94,739		91,634
Charter hire expenses		6,442		14,381		24,213		44,599
Depreciation and amortization		19,014		18,961		56,161		56,708
General and administrative		7,422		6,449		21,550		19,519
Provision for credit losses, net		(13)		(18)		(80)		1,259
Third-party debt modification fees		-		-		232		30
Loss/(gain) on disposal of vessels and other property,
including impairments		12,834		(1,472)		14,164		28
Total operating expenses		83,051		74,121		226,872		233,615
Income/(loss) from vessel operations		16,832		(2,843)		138,073		8,547
Equity in income of affiliated companies		5,356		8,474		15,672		24,559
Operating income		22,188		5,631		153,745		33,106
Other (expense)/income		(208)		284		(13,497)		2,159
Income before interest expense and income taxes		21,980		5,915		140,248		35,265
Interest expense		(7,999)		(17,010)		(28,889)		(51,986)
Income/(loss) before income taxes		13,981		(11,095)		111,359		(16,721)
Income tax provision		-		-		(1)		-
Net Income/(loss)	$	13,981	$	(11,095)	$	111,358	$	(16,721)

Weighted Average Number of Common Shares Outstanding:
Basic		27,932,928		29,249,233		28,517,037		29,217,188
Diluted		28,026,005		29,249,233		28,665,961		29,217,188

Per Share Amounts:
Basic net income/(loss) per share	$	0.50	$	(0.38)	$	3.90	$	(0.57)
Diluted net income/(loss) per share	$	0.50	$	(0.38)	$	3.88	$	(0.57)

Consolidated Balance Sheets
($ in thousands)
		September 30,		December 31,
		2020		2019
		(Unaudited)		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	137,340	$	89,671
Voyage receivables		71,431		83,845
Other receivables		4,702		3,938
Inventories		1,400		3,896
Prepaid expenses and other current assets		5,372		5,994
Total Current Assets		220,245		187,344

Restricted Cash		16,314		60,572
Vessels and other property, less accumulated depreciation		1,262,469		1,292,516
Deferred drydock expenditures, net		28,785		23,125
Total Vessels, Deferred Drydock and Other Property		1,291,254		1,315,641
Operating lease right-of-use assets		24,013		33,718
Investments in and advances to affiliated companies		156,589		153,292
Long-term derivative asset		973		-
Other assets		2,925		2,934
Total Assets	$	1,712,313	$	1,753,501

LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and other current liabilities	$	27,355	$	27,554
Current portion of operating lease liabilities		9,949		12,958
Current installments of long-term debt		61,483		70,350
Current portion of derivative liability		4,035		3,614
Total Current Liabilities		102,822		114,476
Long-term operating lease liabilities		11,593		17,953
Long-term debt		489,194		590,745
Long-term derivative liability		6,200		6,545
Other liabilities		15,986		1,489
Total Liabilities		625,795		731,208

Equity:
Total Equity		1,086,518		1,022,293
Total Liabilities and Equity	$	1,712,313	$	1,753,501

Consolidated Statements of Cash Flows
($ in thousands)
		Nine Months Ended September 30,
		2020		2019
		(Unaudited)		(Unaudited)
Cash Flows from Operating Activities:
Net income/(loss)	$	111,358	$	(16,721)
Items included in net income/(loss) not affecting cash flows:
Depreciation and amortization		56,161		56,708
Loss on write-down of vessels and other assets		17,136		-
Amortization of debt discount and other deferred financing costs		2,338		5,373
Deferred financing costs write-off		13,073		343
Stock compensation, non-cash		3,993		2,912
Earnings of affiliated companies		(15,566)		(24,945)
Change in fair value of interest rate collar recorded through earnings		1,271		-
Other – net		904		538
Items included in net income/(loss) related to investing and financing activities:
(Gain)/loss on disposal of vessels and other property, net		(2,972)		28
Loss on extinguishment of debt		1,195		100
Cash distributions from affiliated companies		8,500		10,214
Payments for drydocking		(15,825)		(13,539)
Insurance claims proceeds related to vessel operations		4,706		967
Changes in operating assets and liabilities		12,519		21,378
Net cash provided by operating activities		198,791		43,356
Cash Flows from Investing Activities:
Expenditures for vessels and vessel improvements		(46,449)		(9,797)
Proceeds from disposal of vessels and other property		13,564		15,762
Expenditures for other property		(493)		(406)
Investments in and advances to affiliated companies, net		2,347		2,104
Repayments of advances from affiliated companies		-		4,836
Net cash (used in)/provided by investing activities		(31,031)		12,499
Cash Flows from Financing Activities:
Issuance of debt, net of issuance and deferred financing costs		362,989		-
Extinguishment of debt		(422,699)		(10,000)
Premium and fees on extinguishment of debt		(163)		(100)
Payments on debt		(66,636)		(38,531)
Payments on derivatives containing other-than-insignificant financing element		(1,331)		-
Cash dividends paid		(5,091)		-
Repurchases of common stock		(29,997)		-
Cash paid to tax authority upon vesting of stock-based compensation		(1,272)		(369)
Other – net		(149)		(277)
Net cash used in financing activities		(164,349)		(49,277)
Net increase in cash, cash equivalents and restricted cash		3,411		6,578
Cash, cash equivalents and restricted cash at beginning of year		150,243		117,644
Cash, cash equivalents and restricted cash at end of period	$	153,654	$	124,222

Spot and Fixed TCE Rates Achieved and Revenue Days

The following tables provides a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months ended September 30, 2020 and the comparable periods of 2019. Revenue days in the quarter ended September 30, 2020 totaled 3,123 compared with 3,529 in the prior year quarter. A summary fleet list by vessel class can be found later in this press release. The information in these tables excludes commercial pool fees/commissions averaging approximately $654 and $689 per day for the three months ended September 30, 2020 and 2019, respectively.



		Three Months Ended September 30, 2020					Three Months Ended September 30, 2019
		Spot		Fixed	Total		Spot		Fixed	Total
Crude Tankers
VLCC
Average TCE Rate	$	35,740	$	73,399		$	22,434	$	-
Number of Revenue Days		810		362	1,172		1,068		-	1,068
Suezmax
Average TCE Rate	$	28,246	$	-		$	18,470	$	-
Number of Revenue Days		180		-	180		184		-	184
Aframax
Average TCE Rate	$	10,860	$	-		$	15,342	$	-
Number of Revenue Days		368		-	368		368		-	368
Panamax
Average TCE Rate	$	15,508	$	15,790		$	7,846	$	13,772
Number of Revenue Days		118		269	387		92		551	643
*Total Crude Tankers Revenue Days*		1,476		631	2,107		1,712		551	2,263
Product Carriers
LR2
Average TCE Rate	$	21,505	$	-		$	17,253	$	-
Number of Revenue Days		92		-	92		87		-	87
LR1
Average TCE Rate	$	14,900	$	-		$	15,475	$	-
Number of Revenue Days		534		-	534		506		-	506
MR
Average TCE Rate	$	14,368	$	-		$	11,430	$	-
Number of Revenue Days		390		-	390		673		-	673
*Total Product Carriers Revenue Days*		1,016		-	1,016		1,266		-	1,266
Total Revenue Days		2,492		631	3,123		2,978		551	3,529

Revenue days in the above table exclude days related to full service lighterings and days for which recoveries were recorded under the Company’s loss of hire insurance policies.

Fleet Information

As of September 30, 2020, INSW’s owned and operated 39 vessels, 34 of which were owned, 3 of which were chartered in, and 2 FSOs were held through joint venture partnerships.



	Vessels Owned		Vessels Chartered-in		Total at September 30, 2020
Vessel Type	Number	Weighted by Ownership	Number	Weighted by Ownership	Total Vessels	Vessels Weighted by Ownership	Total Dwt
Operating Fleet
FSO	2	1.0	-	-	2	1.0	864,046
VLCC	13	13.0	-	-	13	13.0	3,947,222
Suezmax	2	2.0	-	-	2	2.0	316,864
Aframax	2	2.0	2	2.0	4	4.0	450,804
Panamax	7	7.0	-	-	7	7.0	487,365
Crude Tankers	26	25.0	2	2.0	28	27.0	6,066,301

LR2	1	1.00	-	-	1	1.0	112,691
LR1	5	5.00	1	1.0	6	6.0	443,077
MR	4	4.00	0	0.0	4	4.0	201,225
Product Carriers	10	10.00	1	1.0	11	11.0	756,993



Total Operating Fleet	36	35.0	3	3.0	39	38.0	6,823,294

Contacts

Investor Relations & Media:
David Siever, International Seaways, Inc.
(212) 578-1635
This email address is being protected from spambots. You need JavaScript enabled to view it.

Read full story here

: Business Wire; Posted On Nov 06, 2020

Moog Announces Cash Dividend

EAST AURORA, N.Y.--(BUSINESS WIRE)--The Board of Directors of Moog Inc. (NYSE: MOG.A and MOG.B) has declared a quarterly dividend of $.25 per share on the Company’s issued and outstanding shares of Class A common stock and Class B common stock. The dividend will be paid on December 7, 2020 to all shareholders of record as of the close of business on November 20, 2020.

The dividend represents a use of cash of approximately $8 million. Future declarations of quarterly dividends are subject to the determination and discretion of Moog’s Board of Directors.

Moog Inc. is a worldwide designer, manufacturer, and integrator of precision control components and systems. Moog’s high-performance systems control military and commercial aircraft, satellites and space vehicles, launch vehicles, missiles, automated industrial machinery, marine and medical equipment. Additional information about the company can be found at www.moog.com.

Cautionary Statement

Information included or incorporated by reference in this report that does not consist of historical facts, including statements accompanied by or containing words such as “may,” “will,” “should,” “believes,” “expects,” “expected,” “intends,” “plans,” “projects,” “approximate,” “estimates,” “predicts,” “potential,” “outlook,” “forecast,” “anticipates,” “presume” and “assume,” are forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to certain current and future events and financial performance and are not guarantees of future performance. This includes but is not limited to, the Company’s expectation and ability to pay a quarterly cash dividend on its common stock in the future, subject to the determination by the board of directors, and based on an evaluation of company earnings, financial condition and requirements, business conditions, capital allocation determinations and other factors, risks and uncertainties. The impact or occurrence of these could cause actual results to differ materially from the expected results described in the forward-looking statements. These important factors, risks and uncertainties include:

COVID-19 Pandemic Risks

We face various risks related to health pandemics such as the global COVID-19 pandemic, which may have material adverse consequences on our operations, financial position, cash flows, and those of our customers and suppliers.

Strategic Risks

We operate in highly competitive markets with competitors who may have greater resources than we possess;
Our new products and technology research and development efforts are substantial and may not be successful which could reduce our sales and earnings;
Our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete; and
Our sales and earnings may be affected if we cannot identify, acquire or integrate strategic acquisitions, or as we conduct divestitures.

Market Condition Risks

The markets we serve are cyclical and sensitive to domestic and foreign economic conditions and events, which may cause our operating results to fluctuate;
We depend heavily on government contracts that may not be fully funded or may be terminated, and the failure to receive funding or the termination of one or more of these contracts could reduce our sales and increase our costs;
The loss of The Boeing Company as a customer or a significant reduction in sales to The Boeing Company could adversely impact our operating results; and
We may not realize the full amounts reflected in our backlog as revenue, which could adversely affect our future revenue and growth prospects.

Operational Risks

Our business operations may be adversely affected by information systems interruptions, intrusions or new software implementations;
We may not be able to prevent, or timely detect, issues with our products and our manufacturing processes which may adversely affect our operations and our earnings;
If our subcontractors or suppliers fail to perform their contractual obligations, our prime contract performance and our ability to obtain future business could be materially and adversely impacted; and
The failure or misuse of our products may damage our reputation, necessitate a product recall or result in claims against us that exceed our insurance coverage, thereby requiring us to pay significant damages.

Financial Risks

We make estimates in accounting for over-time contracts, and changes in these estimates may have significant impacts on our earnings;
We enter into fixed-price contracts, which could subject us to losses if we have cost overruns;
Our indebtedness and restrictive covenants under our credit facilities could limit our operational and financial flexibility;
The phase out of LIBOR may negatively impact our debt agreements and financial position, results of operations and liquidity;
Significant changes in discount rates, rates of return on pension assets, mortality tables and other factors could adversely affect our earnings and equity and increase our pension funding requirements;
A write-off of all or part of our goodwill or other intangible assets could adversely affect our operating results and net worth; and
Unforeseen exposure to additional income tax liabilities may affect our operating results.

Legal and Compliance Risks

Contracting on government programs is subject to significant regulation, including rules related to bidding, billing and accounting standards, and any false claims or non-compliance could subject us to fines, penalties or possible debarment;
Our operations in foreign countries expose us to political and currency risks and adverse changes in local legal and regulatory environments;
Government regulations could limit our ability to sell our products outside the United States and otherwise adversely affect our business;
We are involved in various legal proceedings, the outcome of which may be unfavorable to us; and
Our operations are subject to environmental laws, and complying with those laws may cause us to incur significant costs.

General Risks

The United Kingdom's decision to exit the European Union may result in short-term and long-term adverse impacts on our results of operations;
Escalating tariffs, restrictions on imports or other trade barriers between the United States and various countries may impact our results of operations;
Future terror attacks, war, natural disasters or other catastrophic events beyond our control could negatively impact our business; and
Our performance could suffer if we cannot maintain our culture as well as attract, retain and engage our employees.

These factors are not exhaustive. New factors, risks and uncertainties may emerge from time to time that may affect the forward-looking statements made herein. Given these factors, risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictive of future results. We disclaim any obligation to update the forward-looking statements made in this report.

Contacts

Ann Marie Luhr
716-687-4225

: Business Wire; Posted On Nov 06, 2020

Northern Oil and Gas, Inc. Announces Third Quarter 2020 Results and 2021 Guidance

HIGHLIGHTS

Third quarter production of 29,051 Boe per day, at the high end of guidance, up 22% from the second quarter
Third quarter cash flow from operations of $69.0 million, excluding $12.6 million spent to reduce net working capital, up 30% from the second quarter
Total capital expenditures of $43.8 million in the third quarter
Operating expenses down 9% in total, and down 27% on a per unit basis, from the second quarter
Total debt reduced by $6.5 million in the third quarter, and an additional $21.0 million since the end of the third quarter, for a total of $160.0 million year-to-date
Approximately 25,800 barrels per day of fourth quarter 2020 oil hedged at an average price of $58.03 per barrel
Approximately 19,400 barrels per day of 2021 oil hedged at an average price of $55.68 per Bbl
5,000 barrels per day of first quarter 2022 oil hedged at an average price of $51.77 per Bbl

MINNEAPOLIS--(BUSINESS WIRE)--Northern Oil and Gas, Inc. (NYSE American: NOG) (“Northern”) today announced the company’s third quarter results.

MANAGEMENT COMMENTS

“Northern’s business model continues to deliver on its 2020 plan,” commented Nick O’Grady, Northern’s Chief Executive Officer. “Costs were down, production was up and we generated meaningful free cash flow while continuing to strategically bolt on high return assets. As of November 6, 2020, our debt is already down $160 million year-to-date, and our 2021 outlook continues to be focused on delivering more free cash flow, debt reduction and taking advantage of market distress. Despite the industry challenges, we continue to work through a great pipeline of deal flow at some of the most compelling valuations seen in energy in decades.”

THIRD QUARTER FINANCIAL RESULTS

Third quarter Adjusted Net Income was $27.5 million or $0.51 per diluted share. Third quarter GAAP net loss was $233.0 million or $5.44 per diluted share, driven in large part by non-cash items: a $199.5 million impairment expense and a $70.2 million mark-to-market loss on unsettled commodity derivatives. Cash flow from operations was $69.0 million in the third quarter, excluding $12.6 million spent to reduce net working capital. Adjusted EBITDA in the third quarter was $82.7 million. (See “Non-GAAP Financial Measures” below.)

PRODUCTION

Third quarter production was 29,051 Boe per day, a 22% increase from the second quarter. Oil production represented 77% of total production at 22,335 Bbls per day. Production increased due to an increase in net completions and a partial return of curtailed production by many of Northern’s operating partners. Northern estimates that curtailments, shut-ins and delayed well completions still reduced the Company’s average daily production by over 11,000 Boe per day in the third quarter. Northern had 3.4 net wells turned online during the third quarter, compared to 1.3 net wells turned online in the second quarter of 2020.

PRICING

During the third quarter, NYMEX West Texas Intermediate (“WTI”) crude oil averaged $40.90 per Bbl, and NYMEX natural gas at Henry Hub averaged $1.97 per million cubic feet (“Mcf”). Northern’s unhedged net realized oil price in the third quarter was $34.36, representing a $6.54 differential to WTI prices. Oil differentials narrowed from significantly higher levels in the second quarter. Northern’s third quarter unhedged net realized gas price was $0.83 per Mcf, representing approximately 42% realizations compared with Henry Hub pricing.

OPERATING COSTS

Lease operating costs were $24.2 million in the third quarter of 2020, or $9.04 per boe, down 9% on a total basis and down 27% on a per unit basis compared to the second quarter. Third quarter general and administrative (“G&A”) costs totaled $4.6 million, which includes non-cash stock-based compensation. Cash G&A expense totaled $3.7 million or $1.39 per Boe in the third quarter, down 14% on a per unit basis compared to the second quarter.

CAPITAL EXPENDITURES AND ACQUISITIONS

Capital spending for the third quarter was $43.8 million, made up of $27.7 million of organic drilling and completion (“D&C”) capital and $16.1 million of total acquisition spending and other items, inclusive of ground game D&C spending. Northern added 3.4 net wells to production in the third quarter, and wells in process increased to 28.3 net wells, up 1.6 net wells from the prior quarter. On the ground game acquisition front, Northern closed on 10 transactions during the third quarter totaling 4.6 net wells, 653 net mineral acres and 141 net royalty acres (standardized to a 1/8 royalty interest).

LIQUIDITY AND CAPITAL RESOURCES

On November 2, 2020, Northern’s borrowing base under its revolving credit facility was reaffirmed at $660 million. As of November 6, 2020, Northern has $550.0 million of borrowings outstanding on its revolving credit facility, with $110.0 million of current borrowing capacity. Northern expects an additional $15 - 30 million reduction in borrowings under the revolving credit facility by the end of 2020, but will continue to defer payment of any dividends on its Perpetual Preferred Stock due to the current environment.

As of September 30, 2020, Northern had $1.8 million in cash and $571.0 million of borrowings outstanding on its revolving credit facility. Northern had total liquidity of $90.8 million as of September 30, 2020, consisting of cash and borrowing availability under the revolving credit facility.

As of September 30, 2020, Northern had additional debt outstanding consisting of a $130.0 million 6% Senior Unsecured Note and $287.8 million of 8.5% Senior Secured Notes. During the third quarter, Northern strengthened its balance sheet through two negotiated agreements with noteholders, which resulted in $9.5 million in principal amount of the 8.5% Senior Secured Notes being retired, capturing $0.8 million in discounts to par value. In addition, Northern executed an agreement to retire approximately $7.6 million in liquidation value of its Perpetual Preferred Stock, capturing a discount to liquidation value of approximately $3.6 million.

2021 ESTIMATED GUIDANCE RANGES

	Full Year 2021
	Base Case $40+ WTI	$35-$40 WTI	Sub-$35 WTI
Production (Boe/day)	37,500 - 42,500	32,500 - 37,500*	27,500 - 32,500**
Total Capital Expenditures	$190 - $240 million	$100 - $175 million	$50 - $100 million

____________
*		Assumes approximately 2,500-5,000 Boe per day of production is shut-in or curtailed for low prices
**		Assumes approximately 3,500-5,500 Boe per day of production is shut-in or curtailed for low prices

Northern reiterates its 2020 total capital spending and production guidance. Northern continues to closely monitor oil pricing with its operating partners to best determine the appropriate cadence to return remaining curtailments to sales.

Northern is providing WTI price based capital spending and production guidance for 2021. Northern allocates its capital budget based on rate of return. Northern’s 2021 base case is unchanged from the second quarter and predicated upon $40+ average WTI oil price for 2021. In this scenario, Northern expects total capital expenditures of $190 – $240 million and production of 37,500 – 42,500 Boe per day for 2021. A significant portion of capital allocated in this scenario would be for wells in process that would turn to sales in 2022 and beyond. If oil prices are greater than $35 but less than $40, Northern anticipates continued curtailments, limited new drilling, and the bulk of its capital going towards the completion of wells in process. If WTI prices average less than $35, Northern anticipates additional curtailments, minimal new drilling, and potentially only a portion of wells in process being completed and turned to sales. However, in scenarios where WTI averages below $40, Northern anticipates significantly higher free cash flow due to the reduced capital spending.

Northern expects to enter 2021 with nearly 9.0 net wells drilled and completed but delayed from being turned to sales. Northern conservatively projects in its base case that the bulk of its wells will be turned to sales in the second quarter through the fourth quarter in 2021. As is typical in the Williston basin, Northern expects the first quarter of 2021 to be seasonally lower than the annual range due to winter weather restrictions for the completions of new wells.

THIRD QUARTER 2020 RESULTS

The following tables set forth selected operating and financial data for the periods indicated.

	Three Months Ended September 30,
	2020		2019		% Change
Net Production:
Oil (Bbl)	2,054,847		3,002,789		(32)	%
Natural Gas and NGLs (Mcf)	3,706,853		4,496,860		(18)	%
Total (Boe)	2,672,656		3,752,266		(29)	%

Average Daily Production:
Oil (Bbl)	22,335		32,639		(32)	%
Natural Gas and NGLs (Mcf)	40,292		48,879		(18)	%
Total (Boe)	29,051		40,786		(29)	%

Average Sales Prices:
Oil (per Bbl)	$	34.36	$	50.90	(33)	%
Effect of Gain on Settled Oil Derivatives on Average Price (per Bbl)	21.11		6.12
Oil Net of Settled Oil Derivatives (per Bbl)	55.47		57.02		(3)	%

Natural Gas and NGLs (per Mcf)	0.83		1.15		(28)	%
Effect of Gain on Settled Natural Gas Derivatives on Average Price (per Mcf)	0.13		—
Natural Gas and NGLs Net of Settled Natural Gas Derivatives (per Mcf)	0.96		1.15		(17)	%

Realized Price on a Boe Basis Excluding Settled Commodity Derivatives	27.57		42.10		(35)	%
Effect of Gain on Settled Commodity Derivatives on Average Price (per Boe)	16.40		4.90
Realized Price on a Boe Basis Including Settled Commodity Derivatives	43.97		47.00		(6)	%

Costs and Expenses (per Boe):
Production Expenses	$	9.04	$	8.62	5	%
Production Taxes	2.60		4.10		(37)	%
General and Administrative Expenses	1.72		1.12		54	%
Depletion, Depreciation, Amortization and Accretion	11.52		14.81		(22)	%

Net Producing Wells at Period End	468.8		444.0		6	%

HEDGING

Northern hedges portions of its expected production volumes to increase the predictability of its cash flow and to help maintain a strong financial position. The following table summarizes Northern’s open crude oil commodity derivative contracts scheduled to settle after September 30, 2020.

Crude Oil Commodity Derivative Swaps⁽¹⁾
Contract Period	Volume (Bbls)	Volume (Bbls/Day)	Weighted Average Price (per Bbl)
2020:
4Q	2,372,362	25,787	$58.03
2021:
1Q	2,021,250	22,458	$56.48
2Q	1,815,458	19,950	$56.99
3Q	1,625,410	17,668	$54.44
4Q	1,616,506	17,571	$54.45
2022:
1Q	450,000	5,000	$51.77
2Q	91,000	1,000	$50.05
3Q	92,000	1,000	$50.05
4Q	92,000	1,000	$50.05

_____________
(1)		This table does not reflect additional potential hedged volumes under “swaption” contracts, which are crude oil derivative contracts entered into by Northern that give counterparties the option to extend certain current derivative contracts for additional periods. Based on current pricing, none of these swaptions would be expected to be exercised.

The following table summarizes Northern’s open natural gas commodity derivative contracts scheduled to settle after September 30, 2020.

Natural Gas Commodity Derivative Swaps
Contract Period	Gas (MMBTU)	Volume (MMBTU/Day)	Weighted Average Price (per Mcf)
2020:
4Q	2,760,000	30,000	$2.44
2021:
1Q	3,375,000	37,500	$2.47
2Q	3,185,000	35,000	$2.51
3Q	3,220,000	35,000	$2.51
4Q	3,220,000	35,000	$2.51
2022:
Q1	900,000	10,000	$2.61
Q2	910,000	10,000	$2.61
Q3	920,000	10,000	$2.61
Q4	920,000	10,000	$2.61

CAPITAL EXPENDITURES & DRILLING ACTIVITY

*(In millions, except for net well data)*	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020
Capital Expenditures Incurred:
Organic Drilling and Development Capital Expenditures	$	27.7	$	125.3
Ground Game Drilling and Development Capital Expenditures	$	10.1	$	24.4
Ground Game Acquisition Capital Expenditures	$	5.5	$	12.9
Other	$	0.5	$	2.4

Net Wells Added to Production	3.4		12.0

Net Producing Wells (Period-End)	—		468.8

Net Wells in Process (Period-End)	—		28.3
Increase in Wells in Process over Prior Period	1.6		2.6

Weighted Average AFE for Wells Elected to	$7.0 million		$7.5 million

Capitalized costs are a function of the number of net well additions during the period, and changes in wells in process from the prior year-end. Capital expenditures attributable to the increase of 2.6 in net wells in process during the nine months ended September 30, 2020 are reflected in the amounts incurred year-to-date for drilling and development capital expenditures.

ACREAGE

As of September 30, 2020, Northern controlled leasehold of approximately 183,222 net acres primarily targeting the Bakken and Three Forks formations of the Williston Basin, and approximately 90% of this total acreage position was developed, held by production, or held by operations. As previously disclosed, Northern made its first Permian Basin acquisition in the third quarter, acquiring acreage with proposed wells in Lea County, NM.

THIRD QUARTER 2020 EARNINGS RELEASE CONFERENCE CALL

In conjunction with Northern’s release of its financial and operating results, investors, analysts and other interested parties are invited to listen to a conference call with management on Friday, November 6, 2020 at 9:00 a.m. Central Time.

Those wishing to listen to the conference call may do so via the company’s website, www.northernoil.com, or by phone as follows:

Website: https://78449.themediaframe.com/dataconf/productusers/nog/mediaframe/41688/indexl.html
Dial-In Number: (866) 373-3407 (US/Canada) and (412) 902-1037 (International)
Conference ID: 13712449 - Northern Oil and Gas, Inc. Third Quarter 2020 Earnings Call
Replay Dial-In Number: (877) 660-6853 (US/Canada) and (201) 612-7415 (International)
Replay Access Code: 13712449 - Replay will be available through November 16, 2020

UPCOMING CONFERENCE SCHEDULE

Bank of America Leveraged Finance Conference
November 30, 2020

Capital One Annual Energy Conference
December 7-8, 2020

ABOUT NORTHERN OIL AND GAS

Northern Oil and Gas, Inc. is a company with a primary strategy of investing in non-operated minority working and mineral interests in oil & gas properties, with a core area of focus in the Williston Basin Bakken and Three Forks play in North Dakota and Montana. More information about Northern Oil and Gas, Inc. can be found at www.northernoil.com.

SAFE HARBOR

This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). All statements other than statements of historical facts included in this release regarding Northern’s financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our company’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: the effects of the COVID-19 pandemic and related economic slowdown, changes in crude oil and natural gas prices, the pace of drilling and completions activity on Northern’s current properties, infrastructure constraints and related factors affecting Northern’s properties, ongoing legal disputes over and potential shutdown of the Dakota Access Pipeline, Northern’s ability to acquire additional development opportunities, Northern’s ability to consummate any pending acquisition transactions, other risks and uncertainties related to the closing of pending acquisition transactions, changes in Northern’s reserves estimates or the value thereof, general economic or industry conditions, nationally and/or in the communities in which Northern conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, Northern’s ability to raise or access capital, changes in accounting principles, policies or guidelines, financial or political instability, health-related epidemics, acts of war or terrorism, and other economic, competitive, governmental, regulatory and technical factors affecting Northern’s operations, products and prices.

Northern has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Northern’s control. Northern does not undertake any duty to update or revise any forward-looking statements, except as may be required by the federal securities laws.

CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)

	Three Months Ended September 30,				Nine Months Ended September 30,
*(In thousands, except share and per share data)*	2020		2019		2020		2019
Revenues
Oil and Gas Sales	$	73,680	$	157,989	$	224,541	$	440,519
Gain (Loss) on Commodity Derivatives, Net	(26,361)		75,892		277,582		(27,139)
Other Revenue	3		3		12		10
Total Revenues	47,322		233,883		502,135		413,389

Operating Expenses
Production Expenses	24,159		32,347		88,132		83,146
Production Taxes	6,936		15,391		20,750		41,944
General and Administrative Expense	4,605		4,206		14,185		15,506
Depletion, Depreciation, Amortization and Accretion	30,786		55,566		129,350		146,791
Impairment of Other Current Assets	—		5,275		—		7,969
Impairment Expense	199,489		—		962,205		—
Total Operating Expenses	265,975		112,784		1,214,622		295,355

Income (Loss) From Operations	(218,653)		121,100		(712,487)		118,034

Other Income (Expense)
Interest Expense, Net of Capitalization	(14,637)		(21,510)		(45,145)		(58,836)
Write-off of Debt Issuance Costs	(1,543)		—		(1,543)		—
Gain (Loss) on Unsettled Interest Rate Derivatives, Net	224		—		(1,205)		—
Gain (Loss) on Extinguishment of Debt, Net	1,592		—		(3,718)		(425)
Debt Exchange Derivative Gain/(Loss)	—		(23)		—		1,390
Contingent Consideration Loss	—		(5,262)		—		(28,633)
Other Income (Expense)	13		75		14		88
Total Other Income (Expense)	(14,351)		(26,719)		(51,597)		(86,416)

Income (Loss) Before Income Taxes	(233,004)		94,381		(764,084)		31,619

Income Tax Provision (Benefit)	—		—		(166)		—

Net Income (Loss)	$	(233,004)	$	94,381	$	(763,918)	$	31,619

Cumulative Preferred Stock Dividend	(3,718)		—		(10,986)		—

Net Income (Loss) Attributable to Common Shareholders	$	(236,722)	$	94,381	$	(774,904)	$	31,619

Net Income (Loss) Per Common Share – Basic*	$	(5.44)	$	2.38	$	(18.53)	$	0.83
Net Income (Loss) Per Common Share – Diluted*	$	(5.44)	$	2.38	$	(18.53)	$	0.83
Weighted Average Common Shares Outstanding – Basic*	43,517,074		39,604,482		41,812,553		38,204,403
Weighted Average Common Shares Outstanding – Diluted*	43,517,074		39,653,070		41,812,553		38,274,426

___________
*		Adjusted for the 1-for-10 reverse stock split.

CONDENSED BALANCE SHEETS

*(In thousands, except par value and share data)*	September 30, 2020		December 31, 2019
Assets	(Unaudited)
Current Assets:
Cash and Cash Equivalents	$	1,803	$	16,068
Accounts Receivable, Net	60,067		108,274
Advances to Operators	714		893
Prepaid Expenses and Other	1,697		1,964
Derivative Instruments	119,468		5,628
Income Tax Receivable	—		210
Total Current Assets	183,749		133,037

Property and Equipment:
Oil and Natural Gas Properties, Full Cost Method of Accounting
Proved	4,344,346		4,178,605
Unproved	10,328		11,047
Other Property and Equipment	2,215		2,157
Total Property and Equipment	4,356,889		4,191,809
Less – Accumulated Depreciation, Depletion and Impairment	(3,533,887)		(2,443,216)
Total Property and Equipment, Net	823,002		1,748,593

Derivative Instruments	6,826		8,554
Deferred Income Taxes	—		210
Acquisition Deposit	225		—
Other Noncurrent Assets, Net	11,722		15,071

Total Assets	$	1,025,524	$	1,905,465

Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts Payable	$	20,372	$	69,395
Accrued Liabilities	70,203		110,374
Accrued Interest	8,442		11,615
Derivative Instruments	5,438		11,298
Current Portion of Long-term Debt	65,000		—
Other Current Liabilities	1,000		795
Total Current Liabilities	170,455		203,477

Long-term Debt	918,327		1,118,161
Derivative Instruments	2,456		8,079
Asset Retirement Obligations	17,891		16,759
Other Noncurrent Liabilities	126		345

Total Liabilities	$	1,109,255	$	1,346,822

Commitments and Contingencies (Note 8)

Stockholders’ Equity (Deficit)
Preferred Stock, Par Value $.001; 5,000,000 Shares Authorized; 2,218,732 Series A Shares Outstanding at 9/30/2020 1,500,000 Series A Shares Outstanding at 12/31/2019	2		2
Common Stock, Par Value $.001; 135,000,000* Shares Authorized; 45,556,326* Shares Outstanding at 9/30/2020 40,608,518* Shares Outstanding at 12/31/2019	448		406
Additional Paid-In Capital	1,554,053		1,431,438
Retained Deficit	(1,638,234)		(873,203)
Total Stockholders’ Equity (Deficit)	(83,731)		558,643
Total Liabilities and Stockholders’ Equity (Deficit)	$	1,025,524	$	1,905,465

__________
*		Adjusted for the 1-for-10 reverse stock split.

Non-GAAP Financial Measures

Adjusted Net Income and Adjusted EBITDA are non-GAAP measures. Northern defines Adjusted Net Income (Loss) as net income (loss) excluding (i) (gain) loss on unsettled commodity derivatives, net of tax, (ii) (gain) loss on extinguishment of debt, net of tax, (iii) debt exchange derivative (gain) loss, net of tax, (iv) contingent consideration loss, net of tax, (v) acquisition transaction costs, net of tax, (vi) impairment of other current assets, net of tax, (vii) impairment expense, net of tax, (viii) (gain) loss on unsettled interest rate derivatives, net of tax, and (ix) write-off of debt issuance costs, net of tax. Northern defines Adjusted EBITDA as net income (loss) before (i) interest expense, (ii) income taxes, (iii) depreciation, depletion, amortization and accretion, (iv) non-cash stock-based compensation expense, (v) (gain) loss on extinguishment of debt, (vi) debt exchange derivative (gain) loss, (vii) contingent consideration loss, (viii) (gain) loss on unsettled commodity derivatives, (ix) (gain) loss on unsettled interest rate derivatives, (x) impairment of other current assets, (xi) impairment expense, and (xii) write-off of debt issuance costs.

Contacts

CONTACT:
Mike Kelly, CFA
EVP Finance
952-476-9800
This email address is being protected from spambots. You need JavaScript enabled to view it.

Read full story here

: Business Wire; Posted On Nov 06, 2020

Cheniere Reports Third Quarter 2020 Results and Provides Guidance Update

Reconfirms 2020 Guidance and Provides 2021 Guidance

Increases Run Rate Production and Financial Guidance

HOUSTON--(BUSINESS WIRE)--Cheniere Energy, Inc. (NYSE American: LNG):

Summary of Third Quarter 2020 Results (in millions, except LNG data)

	Three Months Ended September 30,								Nine Months Ended September 30,
	2020			2019			% Change		2020		2019			% Change
Revenues	$	1,460		$	2,170		(33	)%	$	6,571	$	6,723		(2	)%
Net income (loss)¹	$	(463	)	$	(318	)	(46	)%	$	109	$	(291	)	nm
Consolidated Adjusted EBITDA²	$	477		$	694		(31	)%	$	2,909	$	1,959		48	%
LNG exported:
Number of cargoes	55			108			(49	)%	261		299			(13	)%
Volumes (TBtu)	193			383			(50	)%	920		1,054			(13	)%
LNG volumes loaded (TBtu)	187			384			(51	)%	920		1,057			(13	)%

Summary Guidance (in billions, except LNG and per share data)

2020 Full Year Guidance
	2020
Consolidated Adjusted EBITDA²	$	3.8	-	$	4.1
Distributable Cash Flow²	$	1.0	-	$	1.3

2021 Full Year Guidance
	2021
Consolidated Adjusted EBITDA²	$	3.9	-	$	4.2
Distributable Cash Flow²	$	1.2	-	$	1.5

Run Rate Guidance
	Previous Run Rate					Revised Run Rate³
Consolidated Adjusted EBITDA²	$	5.2	-	$	5.6	$	5.3	-	$	5.7
Distributable Cash Flow²	$	2.5	-	$	2.9	$	2.6	-	$	3.0
Distributable Cash Flow per Share^2,4	$	8.40	-	$	9.60	$	10.25	-	$	11.75
Production Capacity per Train⁵ (mtpa)	4.7		-	5.0		4.9		-	5.1

Recent Highlights

Operational

As of October 31, 2020, more than 1,250 cumulative LNG cargoes totaling over 85 million tonnes of LNG have been produced, loaded and exported from our liquefaction projects.
In August and September 2020, we coordinated across our liquefaction facilities and with our counterparties to fulfill all of our commercial obligations despite the operational impacts of Hurricane Laura, which included a temporary suspension of operations at the SPL Project (defined below).
In October 2020, as part of the commissioning process, feed gas was introduced to Train 3 of the CCL Project (defined below).

Financial

For the nine months ended September 30, 2020, we reported net income¹ of $109 million, Consolidated Adjusted EBITDA² of approximately $2.9 billion, and Distributable Cash Flow² of over $1.0 billion.
During the three months ended September 30, 2020, in line with our previously announced capital allocation priorities, we prepaid $100 million of outstanding borrowings under the three-year Cheniere Term Loan Facility with available cash. During the nine months ended September 30, 2020, we repurchased an aggregate of 2.9 million shares of our common stock for $155 million under our share repurchase program.
In July 2020, the Cheniere Term Loan Facility was increased from $2.62 billion to $2.695 billion, and we used borrowings under the facility to (1) redeem all of the remaining outstanding principal amount of the 11.0% Convertible Senior Secured Notes due 2025 issued by Cheniere CCH Holdco II, LLC (the “CCH Holdco II Notes”), subsequent to the $300 million redemption in March 2020, with cash at a price of $1,080 per $1,000 principal amount of notes, (2) repurchase $844 million in aggregate principal amount of outstanding 4.875% Convertible Senior Notes due 2021 issued by Cheniere (the “2021 Convertible Notes”) at individually negotiated prices from a small number of investors, and (3) pay related fees and expenses of the Cheniere Term Loan Facility. The remaining borrowing capacity under the Cheniere Term Loan Facility, approximately $372 million, is expected to be used to repay and/or repurchase a portion of the remaining outstanding principal amount of the 2021 Convertible Notes and for the payment of related fees and expenses.
In August 2020, Cheniere Corpus Christi Holdings, LLC (“CCH”) issued an aggregate principal amount of $769 million of 3.52% Senior Secured Notes due 2039. The net proceeds of these notes were used to repay a portion of the outstanding borrowings under the CCH Credit Facility, pay costs associated with certain interest rate derivative instruments that were settled, and pay certain fees, costs and expenses incurred in connection with the transactions contemplated thereby.
In August 2020, Moody’s Investors Service upgraded its rating of CCH’s senior debt from Ba1 (Positive Outlook) to Baa3.
In September 2020, we issued an aggregate principal amount of $2.0 billion of 4.625% Senior Secured Notes due 2028 (the “2028 Senior Secured Notes”) and used net proceeds to prepay approximately $2.0 billion of the outstanding borrowings under the Cheniere Term Loan Facility.

Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG) reported net loss¹ of $463 million, or $1.84 per share—basic and diluted for the three months ended September 30, 2020, compared to a net loss of $318 million, or $1.25 per share—basic and diluted, for the comparable 2019 period. Net loss increased during the three months ended September 30, 2020 primarily due to decreased total margins⁶, increased loss on modification or extinguishment of debt primarily related to the redemption of the remaining CCH Holdco II Notes and a portion of the 2021 Convertible Notes, and increased loss on our equity method investments, partially offset by increased losses attributable to non-controlling interest, decreased interest expense, and increased income tax benefit. Total margins decreased during the three months ended September 30, 2020 primarily due to the accelerated recognition of revenues in prior periods related to elections by our long-term SPA customers to not take delivery of LNG cargoes that were scheduled to be delivered during the current period, partially offset by an increase in margins per MMBtu of LNG delivered to customers and recognized in income.

Cheniere reported net income of $109 million, or $0.43 per share—basic and diluted for the nine months ended September 30, 2020, compared to a net loss of $291 million, or $1.13 per share—basic and diluted, for the comparable 2019 period. Net income increased during the nine months ended September 30, 2020 primarily due to increased total margins, partially offset by increased operating costs and expenses primarily due to additional Trains in operation and costs incurred in response to the COVID-19 pandemic, increased loss on modification of extinguishment of debt as detailed above, increased interest expense, increased income tax expense, and increased loss on our equity method investments. Total margins increased during the nine months ended September 30, 2020 primarily due to increased LNG revenues including both cargoes delivered to customers and cargoes for which customers notified us that they would not take delivery, primarily as a result of additional Trains in operation and slightly increased margins per MMBtu of LNG delivered to customers and recognized in income, and increased net gains from changes in fair value of commodity derivatives.

Margins per MMBtu of LNG delivered to customers and recognized in income increased during the three and nine months ended September 30, 2020 primarily due to an increase in the proportion of volumes sold pursuant to higher-margin long-term contracts, partially offset by a decrease in market pricing for short-term cargoes sold.

Consolidated Adjusted EBITDA was $477 million for the three months ended September 30, 2020, compared to $694 million for the comparable 2019 period. The decrease in Consolidated Adjusted EBITDA during the three months ended September 30, 2020 was primarily due to the accelerated recognition of revenues in prior periods related to elections by our long-term SPA customers to not take delivery of LNG cargoes that were scheduled to be delivered during the current period.

Consolidated Adjusted EBITDA was $2.91 billion for the nine months ended September 30, 2020, compared to $1.96 billion for the comparable 2019 period. The increase in Consolidated Adjusted EBITDA during the nine months ended September 30, 2020 was primarily due to increased LNG revenues including both cargoes delivered to customers and cargoes for which customers notified us that they would not take delivery, primarily due to additional Trains in operation and slightly increased margins per MMBtu of LNG delivered to customers and recognized in income, partially offset by increased operating costs and expenses primarily due to additional Trains in operation.

During the three and nine months ended September 30, 2020, we recognized $171 million and $932 million, respectively, in revenues associated with LNG cargoes for which customers have notified us that they will not take delivery, of which $47 million would have otherwise been recognized subsequent to September 30, 2020, if the cargoes were lifted pursuant to the delivery schedules with the customers. LNG revenues during the three months ended September 30, 2020 excluded $458 million that would have otherwise been recognized during the quarter if the cargoes were lifted pursuant to the delivery schedules with the customers, as these revenues were recognized during the three months ended June 30, 2020. Excluding the impact of cargo cancellations related to periods subsequent to September 30, 2020 and those received in prior periods for the current periods, our total revenues would have been $1.87 billion and $6.52 billion for the three and nine months ended September 30, 2020, respectively.

During the three and nine months ended September 30, 2020, 55 and 261 LNG cargoes, respectively, were exported from our liquefaction projects, none of which were commissioning cargoes. Six cargoes exported from our liquefaction projects and sold on a delivered basis were in transit as of September 30, 2020.

“We are once again delivering strong results in the face of challenges, including two major hurricanes which recently impacted the Sabine Pass area, further cementing our reputation for resilience and operational excellence,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. "The stability in our operations, along with a strengthening of LNG market conditions, supports our ability to reconfirm our full year 2020 financial guidance and provide robust financial guidance for full year 2021.”

“As we look ahead to 2021, we expect the global LNG market to continue rebalancing and look forward to the completion of Train 3 at Corpus Christi ahead of schedule and within budget. Today we are also raising our run rate Consolidated Adjusted EBITDA and Distributable Cash Flow guidance. The increases in these guidance ranges are driven by increased expected run-rate LNG production, as we have continued to execute on optimization and debottlenecking opportunities to maximize production from our existing infrastructure.”

LNG Volume Summary

The following table summarizes the volumes of operational and commissioning LNG that were loaded from our liquefaction projects and for which the financial impact was recognized on our Consolidated Financial Statements during the three and nine months ended September 30, 2020:

	Three Months Ended			Nine Months Ended
	September 30, 2020			September 30, 2020
(in TBtu)	Operational		Commissioning	Operational		Commissioning
Volumes loaded during the current period	187		—	920		—
Volumes loaded during the prior period but recognized during the current period	2		—	33		—
Less: volumes loaded during the current period and in transit at the end of the period	(21	)	—	(21	)	—
Total volumes recognized in the current period	168		—	932		—

In addition, during the three and nine months ended September 30, 2020, we recognized the financial impact of 31 TBtu and 79 TBtu of LNG, respectively, on our Consolidated Financial Statements related to LNG cargoes sourced from third parties.

Cargo Cancellation Revenue Summary

	Three Months Ended			Nine Months Ended
	September 30, 2020			September 30, 2020
Total revenues	$	1,460		$	6,571
Impact of cargo cancellations recognized in the prior period for deliveries scheduled in the current period	458			—
Impact of cargo cancellations recognized in the current period for deliveries scheduled in subsequent periods	(47		)	(47		)
Total revenues excluding the timing impact of cargo cancellations	$	1,871		$	6,524

Liquefaction Projects Update

	CCL Project	SPL Project
	Train 3	Train 6
Project Status	Commissioning	Under Construction
Project Completion Percentage ⁽¹⁾	96.7% ⁽²⁾	70.9% ⁽³⁾
Expected Substantial Completion	1Q 2021	2H 2022

Note: Projects update excludes Trains in operation

(1) Project completion percentages as of September 30, 2020

(2) Engineering 100.0% complete, procurement 100.0% complete, and construction 91.1% complete

(3) Engineering 97.8% complete, procurement 98.2% complete, and construction 34.6% complete

Additional Discussion and Analysis of Financial Condition and Results

Details Regarding Third Quarter and Year-to-Date September 30, 2020 Results

Our financial results are reported on a consolidated basis. Our ownership interest in Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE American: CQP) as of September 30, 2020 consisted of 100% ownership of the general partner and a 48.6% limited partner interest.

Income from operations decreased $235 million during the three months ended September 30, 2020, as compared to the comparable 2019 period, primarily due to the decrease in total margins as detailed above. Income from operations increased $1.0 billion during the nine months ended September 30, 2020, as compared to the comparable 2019 period, primarily due to the increase in total margins as detailed above, partially offset by costs incurred in response to the COVID-19 pandemic and increased operating costs and expenses primarily due to additional Trains in operation.

Selling, general and administrative expense included share-based compensation expenses of $16 million and $54 million for the three and nine months ended September 30, 2020, respectively, compared to $22 million and $65 million for the comparable 2019 periods.

Capital Resources

As of September 30, 2020, we had cash and cash equivalents of $2.1 billion on a consolidated basis, of which $1.3 billion was held by Cheniere Partners. In addition, we had current restricted cash of $522 million designated for the following purposes: $157 million for the SPL Project, $145 million for the CCL Project and $220 million for other restricted purposes.

Liquefaction Projects

SPL Project

Through Cheniere Partners, we operate five natural gas liquefaction Trains and are constructing one additional Train for a total production capacity of approximately 30 million tonnes per annum (“mtpa”) of LNG at the Sabine Pass LNG terminal (the “SPL Project”).

CCL Project

We operate two Trains and are commissioning one additional Train for a total production capacity of approximately 15 mtpa of LNG near Corpus Christi, Texas (the “CCL Project”).

Corpus Christi Stage 3

We are developing an expansion adjacent to the CCL Project for up to seven midscale Trains with an expected total production capacity of approximately 10 mtpa of LNG (“Corpus Christi Stage 3”). We expect to commence construction of the Corpus Christi Stage 3 project upon, among other things, entering into an engineering, procurement, and construction contract and additional commercial agreements, and obtaining adequate financing.

Investor Conference Call and Webcast

We will host a conference call to discuss our financial and operating results for the third quarter 2020 on Friday, November 6, 2020, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website.

^{___________________________}

¹		Net income (loss) as used herein refers to Net income (loss) attributable to common stockholders on our Consolidated Statements of Operations.
²		Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for further details.
³		Run rate assumes full operations of nine Trains.
⁴		Previous run rate Distributable Cash Flow per Share assumed ~300 million shares outstanding, revised run rate Distributable Cash Flow per Share assumes ~255 million shares.
⁵		Run rate average annual production capacity which includes expected impacts of planned maintenance, production reliability, potential overdesign, and debottlenecking opportunities.
⁶		Total margins as used herein refers to total revenues less cost of sales.

About Cheniere

Cheniere Energy, Inc. is the leading producer and exporter of liquefied natural gas (LNG) in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with expected total production capacity of approximately 45 million tonnes per annum of LNG operating or under construction. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.

For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, filed with the Securities and Exchange Commission.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements” within the meanings 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 or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere’s financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding expectations regarding regulatory authorizations and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, (vii) statements relating to the amount and timing of share repurchases, and (viii) statements regarding the COVID-19 pandemic and its impact on our business and operating results. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere’s periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.

Cheniere Energy, Inc. Consolidated Statements of Operations (in millions, except per share data)⁽¹⁾ (unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020			2019			2020			2019
Revenues
LNG revenues	$	1,373		$	2,059		$	6,236		$	6,375
Regasification revenues	67			66			202			199
Other revenues	20			45			133			149
Total revenues	1,460			2,170			6,571			6,723

Operating costs and expenses
Cost of sales (excluding items shown separately below)	768			1,267			2,295			3,758
Operating and maintenance expense	317			308			988			824
Development expense	—			2			5			6
Selling, general and administrative expense	70			72			224			222
Depreciation and amortization expense	233			213			699			561
Impairment expense and loss on disposal of assets	—			1			5			7
Total operating costs and expenses	1,388			1,863			4,216			5,378

Income from operations	72			307			2,355			1,345

Other expense
Interest expense, net of capitalized interest	(355		)	(395		)	(1,174		)	(1,014		)
Loss on modification or extinguishment of debt	(171		)	(27		)	(215		)	(27		)
Interest rate derivative loss, net	—			(78		)	(233		)	(187		)
Other expense, net	(129		)	(70		)	(115		)	(38		)
Total other expense	(655		)	(570		)	(1,737		)	(1,266		)

Income (loss) before income taxes and non-controlling interest	(583		)	(263		)	618			79
Income tax benefit (provision)	75			3			(119		)	—
Net income (loss)	(508		)	(260		)	499			79
Less: net income (loss) attributable to non-controlling interest	(45		)	58			390			370
Net income (loss) attributable to common stockholders	$	(463	)	$	(318	)	$	109		$	(291	)

Net income (loss) per share attributable to common stockholders—basic and diluted ⁽²⁾	$	(1.84	)	$	(1.25	)	$	0.43		$	(1.13	)

Weighted average number of common shares outstanding—basic	252.2			256.0			252.5			256.8
Weighted average number of common shares outstanding—diluted	252.2			256.0			253.2			256.8

___________________
(1)		Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, filed with the Securities and Exchange Commission.
(2)		Earnings per share in the table may not recalculate exactly due to rounding because it is calculated based on whole numbers, not the rounded numbers presented.

Cheniere Energy, Inc. Consolidated Balance Sheets (in millions, except share data)⁽¹⁾⁽²⁾

	September 30,			December 31,
	2020			2019
ASSETS	(unaudited)
Current assets
Cash and cash equivalents	$	2,091		$	2,474
Restricted cash	522			520
Accounts and other receivables, net	390			491
Inventory	280			312
Derivative assets	195			323
Other current assets	154			92
Total current assets	3,632			4,212

Property, plant and equipment, net	30,201			29,673
Operating lease assets, net	630			439
Non-current derivative assets	592			174
Goodwill	77			77
Deferred tax assets	414			529
Other non-current assets, net	385			388
Total assets	$	35,931		$	35,492

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	41		$	66
Accrued liabilities	1,006			1,281
Current debt	338			—
Deferred revenue	179			161
Current operating lease liabilities	160			236
Derivative liabilities	164			117
Other current liabilities	29			13
Total current liabilities	1,917			1,874

Long-term debt, net	30,949			30,774
Non-current operating lease liabilities	473			189
Non-current finance lease liabilities	58			58
Non-current derivative liabilities	173			151
Other non-current liabilities	14			11

Commitments and contingencies

Stockholders’ equity
Preferred stock, $0.0001 par value, 5.0 million shares authorized, none issued	—			—
Common stock, $0.003 par value, 480.0 million shares authorized
Issued: 273.0 million shares at September 30, 2020 and 270.7 million shares at December 31, 2019
Outstanding: 252.2 million shares at September 30, 2020 and 253.6 million shares at December 31, 2019	1			1
Treasury stock: 20.8 million shares and 17.1 million shares at September 30, 2020 and December 31, 2019, respectively, at cost	(872		)	(674		)
Additional paid-in-capital	4,246			4,167
Accumulated deficit	(3,399		)	(3,508		)
Total stockholders' deficit	(24		)	(14		)
Non-controlling interest	2,371			2,449
Total equity	2,347			2,435
Total liabilities and stockholders’ equity	$	35,931		$	35,492

Contacts

Cheniere Energy, Inc.

Investors
Randy Bhatia, 713-375-5479
Megan Light, 713-375-5492
or
Media Relations
Eben Burnham-Snyder, 713-375-5764
Jenna Palfrey, 713-375-5491

Read full story here

: Business Wire; Posted On Nov 06, 2020

China Oil Refining Industry Report 2020 - Historic Capacity and Forecasts, 2012-2025 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Oil Refining Industry in China 2020" report has been added to ResearchAndMarkets.com's offering.

The downstream energy sector report, "Oil Refining Industry in China" is a complete source of information on China crude oil refining industry.

The report also covers complete details of major players operating in the refining sector in China and in depth analysis of the latest industry news and deals.

Report Scope

Outlook of Country Oil Refining Industry and refined petroleum products beyond 2020
Forecasts of refined products production and consumption along with major refining companies and operators.
Historic and Forecasted Refining capacity and secondary units capacities beyond 2020
Key Opportunities and Restraints in country Refinery market
Benchmark with five peer group countries on Nelson Complexity Factor.
Market structure of Country Refining Industry, companies, capacities and market share.
Information on planned refineries such as planned capacity, equity structure, Operator Company, expected commissioning date and project cost.
Refined petroleum products production and demand beyond 2020.
Refinery level information such as refinery name, commissioned year, primary and secondary units installed capacities along with future capacity expansions, refinery complexity factor, ownership and operator details.
Company profiles of major refining companies including SWOT Analysis.
Latest mergers, acquisitions, contract announcements and all related industry news and deals analysis.

Key Topics Covered:

1 Table of Contents

1.1 List of Figures

1.2 List of Tables

2 Introduction to China Refining Markets

2.1 What is This Report About?

2.2 Market Definition

3 Refining Industry in China

3.1 China Refining Market Snapshot, 2019

3.2 Role of China in Global and Regional Refining Markets

3.2.1 Contribution to Asia Pacific and Global Refining Capacity, 2019

3.2.2 China Average Nelson Complexity Factor (NCF) vs. Asia Pacific and Global, 2019

4 China Refining Market- Drivers and Restraints

4.1 China Refining Industry: Trends and Issues

4.1.1 China Refining Industry: Major Trends

4.2 Major Restrains of Investing in China Refining Sector

5 China Oil Products Demand and Supply Forecast to 2025

5.1 China Refined Products Demand Forecast to 2025

5.1.1 China Gasoline Demand Forecast to 2025

5.1.2 China Diesel Oil Demand Forecast to 2025

5.1.3 China Kerosene Demand Forecast to 2025

5.1.4 China LPG Demand Forecast to 2025

5.2 China Refined Products Production Forecast to 2025

5.2.1 China Gasoline Production Forecast to 2025

5.2.2 China Diesel Oil Production Forecast to 2025

5.2.3 China Kerosene Production Forecast to 2025

5.2.4 China LPG Production Forecast to 2025

6 China Refinery Capacities Forecast to 2025

6.1 Location, Operator, Ownership, Startup Details of Operational Refineries in China

6.1.1 Refinery Location, Operator, Ownership, Startup Details

6.2 China Total Refining Capacity Historic and Forecast, 2012-2025

6.3 China Refining Capacity Historic and Forecast, 2012-2025

6.4 China Refinery wise Secondary Conversion Unit-1 Capacity, 2012-2025

6.5 China Refinery wise Secondary Conversion Unit-2 Capacity, 2012-2025

6.6 China Refinery wise Secondary Conversion Unit-3 Capacity, 2012-2025

7 China Refining Industry- Future Developments and Investment Opportunities

7.1 Capital Investment Details of All Upcoming Refineries

7.2 Location, Operator, Ownership, Start Up Details of Planned Refineries in China

7.2.1 Refinery Location, Operator, Ownership, Startup Details

7.3 Refinery Capacities of All Upcoming Refineries

8 Key Strategies China Refining Companies

8.1 China Company wise Refining Capacity Forecast, 2012-2025

9 China National Petroleum Corporation Company Profile

9.1 China National Petroleum Corporation Key Information

9.2 China National Petroleum Corporation Company Overview

9.3 China National Petroleum Corporation Business Description

9.4 China National Petroleum Corporation SWOT Analysis

9.5 China National Petroleum Corporation Financial Ratios - Capital Market Ratios

9.6 China National Petroleum Corporation Financial Ratios - Annual Ratios

9.7 China National Petroleum Corporation Financial Ratios - Interim Ratios

10 China Refining Industry Latest Tenders and Contracts

11 China Refining Industry Updates

12 China Refining Industry Deals

12.1 Detailed Deal Summary

13 Appendix

Companies Mentioned

China National Petroleum Corporation

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

Contacts

: Business Wire; Posted On Nov 06, 2020

Hess Completes Sale of Interests in Shenzi Field, Gulf of Mexico

NEW YORK--(BUSINESS WIRE)--Hess Corporation (NYSE: HES) announced today that it has completed the previously announced sale of its 28% working interest in the Shenzi Field in the deepwater Gulf of Mexico to BHP, the field’s operator, for a total consideration of $505 million, subject to customary adjustments, with an effective date of July 1, 2020.

“This transaction brings value forward in the current low price environment and further strengthens our cash and liquidity position,” CEO John Hess said. “Proceeds will be used to fund our world class investment opportunity in Guyana.”

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

Cautionary Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. These forward-looking statements may include, without limitation, the use of proceeds from our asset sale and our future financial and operational results. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices of crude oil, natural gas liquids and natural gas; demand for our products, including due to the global COVID-19 pandemic or due to the impact of competing or alternative energy products and political conditions and events; the ability of our contractual counterparties to satisfy their obligations to us; contract and other laws, regulations and governmental actions applicable to our business; and other factors described in the Risk Factor section in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and any additional risks described in our other filings with the Securities and Exchange Commission. As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.

Contacts

Investor Contact:
Jay Wilson
(212) 536-8940
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media Contact:
Lorrie Hecker
(212) 536-8250
This email address is being protected from spambots. You need JavaScript enabled to view it.

: Business Wire; Posted On Nov 06, 2020

Oman Oil Refining Industry Report 2020 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Oil Refining Industry in Oman 2020" report has been added to ResearchAndMarkets.com's offering.

The downstream energy sector report, "Oil Refining Industry in Oman" is a complete source of information on Oman crude oil refining industry.

The report also covers complete details of major players operating in the refining sector in Oman and in depth analysis of the latest industry news and deals.

Report Scope

Outlook of Country Oil Refining Industry and refined petroleum products beyond 2020
Forecasts of refined products production and consumption along with major refining companies and operators.
Historic and Forecasted Refining capacity and secondary units capacities beyond 2020
Key Opportunities and Restraints in country Refinery market
Benchmark with five peer group countries on Nelson Complexity Factor.
Market structure of Country Refining Industry, companies, capacities and market share.
Information on planned refineries such as planned capacity, equity structure, Operator Company, expected commissioning date and project cost.
Refined petroleum products production and demand beyond 2020.
Refinery level information such as refinery name, commissioned year, primary and secondary units installed capacities along with future capacity expansions, refinery complexity factor, ownership and operator details.
Company profiles of major refining companies including SWOT Analysis.
Latest mergers, acquisitions, contract announcements and all related industry news and deals analysis.

Key Topics Covered:

1 Table of Contents

1.1 List of Figures

1.2 List of Tables

2 Introduction to Oman Refining Markets

2.1 What is This Report About?

2.2 Market Definition

3 Refining Industry in Oman

3.1 Oman Refining Market Snapshot, 2019

3.2 Role of Oman in Global and Regional Refining Markets

3.2.1 Contribution to Middle East and Africa and Global Refining Capacity, 2019

3.2.2 Oman Average Nelson Complexity Factor (NCF) vs. Middle East and Africa and Global, 2019

4 Oman Refining Market- Drivers and Restraints

4.1 Oman Refining Industry: Trends and Issues

4.1.1 Oman Refining Industry: Major Trends

4.2 Major Restrains of Investing in Oman Refining Sector

5 Oman Oil Products Demand and Supply Forecast to 2025

5.1 Oman Refined Products Demand Forecast to 2025

5.1.1 Oman Gasoline Demand Forecast to 2025

5.1.2 Oman Diesel Oil Demand Forecast to 2025

5.1.3 Oman Kerosene Demand Forecast to 2025

5.1.4 Oman LPG Demand Forecast to 2025

5.2 Oman Refined Products Production Forecast to 2025

5.2.1 Oman Gasoline Production Forecast to 2025

5.2.2 Oman Diesel Oil Production Forecast to 2025

5.2.3 Oman Kerosene Production Forecast to 2025

5.2.4 Oman LPG Production Forecast to 2025

6 Oman Refinery Capacities Forecast to 2025

6.1 Location, Operator, Ownership, Startup Details of Operational Refineries in Oman

6.1.1 Refinery Location, Operator, Ownership, Startup Details

6.2 Oman Total Refining Capacity Historic and Forecast, 2012-2025

6.3 Oman Refining Capacity Historic and Forecast, 2012-2025

6.4 Oman Refinery wise Secondary Conversion Unit-1 Capacity, 2012-2025

6.5 Oman Refinery wise Secondary Conversion Unit-2 Capacity, 2012-2025

6.6 Oman Refinery wise Secondary Conversion Unit-3 Capacity, 2012-2025

7 Oman Refining Industry- Future Developments and Investment Opportunities

7.1 Capital Investment Details of All Upcoming Refineries

7.2 Location, Operator, Ownership, Start Up Details of Planned Refineries in Oman

7.2.1 Refinery Location, Operator, Ownership, Startup Details

7.3 Refinery Capacities of All Upcoming Refineries

8 Key Strategies Oman Refining Companies

8.1 Oman Company wise Refining Capacity Forecast, 2012-2025

9 Oman Oil Company Company Profile

9.1 Oman Oil Company Key Information

9.2 Oman Oil Company Company Overview

9.3 Oman Oil Company Business Description

9.4 Oman Oil Company SWOT Analysis

9.5 Oman Oil Company Financial Ratios - Capital Market Ratios

9.6 Oman Oil Company Financial Ratios - Annual Ratios

9.7 Oman Oil Company Financial Ratios - Interim Ratios

10 Oman Refining Industry Latest Tenders and Contracts

11 Oman Refining Industry Updates

12 Oman Refining Industry Deals

12.1 Detailed Deal Summary

13 Appendix

Companies Mentioned

Oman Oil Company

For more information about this report visit https://www.researchandmarkets.com/r/fgw47v

Contacts

: Business Wire; Posted On Nov 06, 2020

Gas Engine Market will Exhibit Negative Impact During 2020-2024 | Expanding Gas Generator Market to Improve the Market Growth | Technavio

LONDON--(BUSINESS WIRE)--#GasEngineMarket--Technavio has been monitoring the global gas engine market size, operating under the consumer discretionary industry. The latest report on gas engine market, 2020-2024 estimates it to register an incremental growth of by USD 1.85 billion, almost at a CAGR of 7% during the forecast period. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment.

Technavio’s in-depth research has all your needs covered as our research reports include all foreseeable market scenarios, including pre- & post-COVID-19 analysis. Download Latest Free Sample Report on COVID-19 Analysis

The market is fragmented, and the degree of fragmentation will accelerate during the forecast period. Competitors have to focus on differentiating their product offerings with unique value propositions to strengthen their foothold in the market. Market vendors also have to leverage on the existing growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments. Caterpillar Inc., Cummins Inc., Doosan Infracore Co. Ltd., Hyundai Heavy Industries Co. Ltd., INNIO Jenbacher GmbH & Co. OG, Kawasaki Heavy Industries Ltd., MAN SE, Mitsubishi Heavy Industries Ltd., Rolls-Royce Plc, and Siemens AG are among some of the major market participants.

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Expanding gas generator market has been instrumental in driving the growth of the market. However, the irregularities in natural gas reserves and supplies might hamper the market growth.

Technavio's custom research reports offer detailed insights on the impact of COVID-19 at an industry level, a regional level, and subsequent supply chain operations. This customized report will also help clients keep up with new product launches in direct & indirect COVID-19 related markets, upcoming vaccines and pipeline analysis, and significant developments in vendor operations and government regulations. Download a Free Sample Report on COVID-19 Impacts

Gas Engine Market 2020-2024: Segmentation

Gas Engine Market is segmented as below:

Based on geographic segmentation, over 44% of the market growth originated from Europe during the forecast period. In addition, the power segment led the growth under the end-user segments. This report provides an accurate prediction of the contribution of all the segments to the growth of the market size.

End-user
- Power
- Industrial
- Residential
- Commercial
Material
- Titanium Dental Implants
- Zirconium Dental Implants
Geographic Landscape
- Europe
- North America
- APAC
- South America

Gas Engine Market 2020-2024: Scope

Technavio presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources. The gas engine market report covers the following areas:

Gas Engine Market Size
Gas Engine Market Trends
Gas Engine Market Industry Analysis

This study identifies the development of nano coating as one of the prime reasons driving the Gas Engine Market growth during the next few years.

Technavio suggests three forecast scenarios (optimistic, probable, and pessimistic) considering the impact of COVID-19. Technavio’s in-depth research has direct and indirect COVID-19 impacted market research reports.

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Gas Engine Market 2020-2024: Key Highlights

CAGR of the market during the forecast period 2020-2024
Detailed information on factors that will assist gas engine market growth during the next five years
Estimation of the gas engine market size and its contribution to the parent market
Predictions on upcoming trends and changes in consumer behavior
The growth of the gas engine market
Analysis of the market’s competitive landscape and detailed information on vendors
Comprehensive details of factors that will challenge the growth of gas engine market, vendors

Table of Contents:

Executive Summary

Market Landscape

Market ecosystem
Value chain analysis

Market Sizing

Market definition
Market segment analysis
Market size 2019
Market outlook: Forecast for 2019 - 2024

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 End-user

Market segments
Comparison by End user
Power - Market size and forecast 2019-2024
Industrial - Market size and forecast 2019-2024
Residential - Market size and forecast 2019-2024
Commercial - Market size and forecast 2019-2024
Market opportunity by End user

Customer landscape

Customer landscape

Geographic Landscape

Geographic segmentation
Geographic comparison
Europe - Market size and forecast 2019-2024
North America - Market size and forecast 2019-2024
APAC - Market size and forecast 2019-2024
South America - Market size and forecast 2019-2024
MEA - Market size and forecast 2019-2024
Key leading countries
Market opportunity by geography
Volume driver - Demand led growth
Volume driver - External factors
Market challenges
Market trends

Vendor Landscape

Vendor landscape
Landscape disruption

Vendor Analysis

Vendors covered
Market positioning of vendors
Caterpillar Inc.
Cummins Inc.
Doosan Infracore Co. Ltd.
Hyundai Heavy Industries Co. Ltd.
INNIO Jenbacher GmbH & Co. OG
Kawasaki Heavy Industries Ltd.
MAN SE
Mitsubishi Heavy Industries Ltd.
Rolls-Royce Plc
Siemens AG

Appendix

Scope of the report
Currency conversion rates for US$
Research methodology
List of abbreviations

About Us

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.technavio.com/

: Business Wire; Posted On Nov 06, 2020

Overseas Shipholding Group Reports Third Quarter 2020 Results

TAMPA, Fla.--(BUSINESS WIRE)--Overseas Shipholding Group, Inc. (NYSE: OSG) (the “Company” or “OSG”), a provider of energy transportation services for crude oil and petroleum products in the U.S. Flag markets, today reported results for the third quarter of 2020.

Highlights

	●	Net loss for the third quarter 2020 was $0.7 million, or $(0.01) per diluted share, compared with a net loss of $3.8 million, or $(0.04) per diluted share, for the third quarter 2019.

	●	Shipping revenues for the third quarter 2020 were $105.7 million, up 30.7% compared with the third quarter 2019.

	●	Time charter equivalent (TCE) revenues^(A), a non-GAAP measure, for the third quarter 2020 were $92.2 million, up 20.6% compared with the third quarter 2019.

	●	Third quarter 2020 Adjusted EBITDA^(B), a non-GAAP measure, was $21.8 million, up 35.7% from $16.1 million in the third quarter 2019.

	●	Third quarter 2020 193 day increase in off hire days due to drydock activities, resulting in a $9.9 million loss in revenues.

	●	Total cash^(C) was $54.1 million as of September 30, 2020.

	●	On July 30, 2020, the Company repaid, using cash on hand, its $24 million term loan secured by the Overseas Gulf Coast.

Sam Norton, President and CEO, stated, “OSG delivered solid financial results in the quarter just completed. We continued to benefit from a high percentage of fixed revenue streams and we have continued to manage pandemic related logistical, health, safety and other costs in line with expectations. As a result, cashflow from operations continued to be strong, particularly when considering the nearly 200 days of revenue lost during the quarter to drydock operations. We have taken steps to preserve value and to strengthen our liquidity in anticipation of heightened volatility in the months ahead. With a strengthened balance sheet and the good prospects for a sustained recovery in 2021, we remain confident in our long-term strategy and the fundamentals of our business.

Mr. Norton added, “The sense of responsibility shared by OSG’s mariners and shore-based support team in meeting the essential need to supply transportation fuels to the markets that we serve is commendable. We are managing our operations very much aware that the systems within which we operate are under stress, with risks and vulnerabilities that have previously not affected our performance. The contribution made by all of our employees, and in particular our seafarers, in realizing the strong financial results reported this morning should thus be applauded by all who benefit from their service.”

^{A, B, C} Reconciliations of these non-GAAP financial measures are included in the financial tables within this press release below

Third Quarter 2020 Results

Shipping revenues were $105.7 million for the quarter, up 30.7% compared with the third quarter of 2019. TCE revenues for the third quarter of 2020 were $92.2 million, an increase of $15.8 million, or 20.6%, compared with the third quarter of 2019. The increase primarily resulted from the addition to our fleet of two Marshall Islands flagged MR tankers, Overseas Gulf Coast and Overseas Sun Coast, three crude oil tankers, Alaskan Explorer, Alaskan Legend and Alaskan Navigator, and one ATB, OSG 204 and OSG Endurance, and two Government of Israel voyages during the third quarter of 2020 compared to one during the third quarter of 2019. The increase was offset by (a) three fewer ATBs in our fleet, including one ATB sold in August 2020, (b) a 193-day increase in scheduled drydocking, resulting in a $9.9 million loss in revenues and (c) a decrease in Delaware Bay lightering volumes during the third quarter of 2020 compared to the third quarter of 2019. One vessel was redelivered from time charter during the third quarter of 2020 and placed in lay-up, a decision taken in light of the lack of spot market activity during the quarter.

Operating income for the third quarter of 2020 was $5.2 million compared to operating income of $1.2 million in the third quarter of 2019.

Net loss for the third quarter 2020 was $0.7 million, or $(0.01) per diluted share, compared with a net loss of $3.8 million, or $(0.04) per diluted share, for the third quarter 2019.

Adjusted EBITDA was $21.8 million for the quarter, an increase of $5.7 million compared with the third quarter of 2019.

Conference Call

The Company will host a conference call to discuss its third quarter 2020 results at 9:30 a.m. Eastern Time (“ET”) on Friday, November 6, 2020.

To access the call, participants should dial (844) 850-0546 for domestic callers and (412) 317-5203 for international callers. Please dial in ten minutes prior to the start of the call.

A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at http://www.osg.com/

An audio replay of the conference call will be available starting at 11:30 a.m. ET on Friday, November 6, 2020 through 10:59 p.m. ET on Friday, November 20, 2020 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Access Code 10149303.

About Overseas Shipholding Group, Inc.

Overseas Shipholding Group, Inc. (NYSE:OSG) is a publicly traded company providing energy transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG is a major operator of tankers and ATBs in the Jones Act industry. OSG’s 21 vessel U.S. Flag fleet consists of three crude oil tankers doing business in Alaska, one conventional ATB, two lightering ATBs, three shuttle tankers, ten MR tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program. OSG also currently owns and operates two Marshall Islands flagged MR tankers which trade internationally. In addition to the currently operating fleet, OSG has on order one Jones Act compliant barge which is scheduled for delivery in late 2020.

OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in Tampa, FL. More information is available at www.osg.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, the Company may make or approve certain forward-looking statements in future filings with the Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to our prospects, supply and demand for vessels in the markets in which we operate and the impact on market rates and vessel earnings, the expected delivery schedule of our two new barges under construction and their expected participation in the Jones Act trade, the continued stability of our niche businesses, and the impact of our time charter contracts on our future financial performance. Forward-looking statements are based on our current plans, estimates and projections, and are subject to change based on a number of factors. COVID-19 has had, and will have in the future, a profound impact on our workforce, and many aspects of our business and industry. Investors should carefully consider the risk factors outlined in more detail in our Annual Report on Form 10-K for the year ended December 31, 2019, in our upcoming Form 10-Q filing, and in similar sections of other filings we make with the SEC from time to time. We do not assume any obligation to update or revise any forward-looking statements except as may be required by applicable law. Forward-looking statements and written and oral forward-looking statements attributable to us or our representatives after the date of this press release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by us with the SEC.

Consolidated Balance Sheets
($ in thousands)

	September 30, 2020			December 31, 2019
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	54,018		$	41,503
Restricted cash		49			60
Voyage receivables, including unbilled of $9,542 and $5,611, net of reserve for doubtful accounts		12,366			9,247
Income tax receivable		454			1,192
Other receivables		1,780			3,037
Inventories, prepaid expenses and other current assets		2,929			2,470
Total Current Assets		71,596			57,509
Vessels and other property, less accumulated depreciation		834,857			737,212
Deferred drydock expenditures, net		39,358			23,734
Total Vessels, Other Property and Deferred Drydock		874,215			760,946
Restricted cash - non current		73			114
Investments in and advances to affiliated companies		—			3,599
Intangible assets, less accumulated amortization		28,367			31,817
Operating lease right-of-use assets		234,756			286,469
Other assets		21,342			35,013
Total Assets	$	1,230,349		$	1,175,467
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and other current liabilities	$	50,789		$	35,876
Current portion of operating lease liabilities		90,656			90,145
Current portion of finance lease liabilities		4,001			4,011
Current installments of long-term debt		36,795			31,512
Total Current Liabilities		182,241			161,544
Reserve for uncertain tax positions		902			864
Noncurrent operating lease liabilities		166,411			219,501
Noncurrent finance lease liabilities		21,916			23,548
Long-term debt		367,746			336,535
Deferred income taxes, net		80,032			72,833
Other liabilities		37,046			19,097
Total Liabilities		856,294			833,922
Equity:
Common stock - Class A ($0.01 par value; 166,666,666 shares authorized; 86,337,072 and 85,713,610 shares issued and outstanding)		863			857
Paid-in additional capital		591,916			590,436
Accumulated deficit		(212,491	)		(243,339	)
		380,288			347,954
Accumulated other comprehensive loss		(6,233	)		(6,409	)
Total Equity		374,055			341,545
Total Liabilities and Equity	$	1,230,349		$	1,175,467

Consolidated Statements of Operations ($ in thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Shipping Revenues:

Time and bareboat charter revenues	$	89,273		$	63,491		$	264,085		$	188,619
Voyage charter revenues		16,475			17,435			57,061			68,503
		105,748			80,926			321,146			257,122

Operating Expenses:
Voyage expenses		13,467			4,424			31,364			15,762
Vessel expenses		43,044			33,993			120,456			98,960
Charter hire expenses		22,782			22,802			67,746			67,645
Depreciation and amortization		15,253			13,324			43,488			38,922
General and administrative		6,140			5,288			19,915			16,917
Bad debt expense		—			—			—			4,300
(Gain)/loss on disposal of vessels and other property, including impairments, net		(151	)		36			959			87
Total operating expenses		100,535			79,867			283,928			242,593
Income from vessel operations		5,213			1,059			37,218			14,529
Equity in income of affiliated companies		—			156			—			224
Gain on termination of pre-existing arrangement		—			—			19,172			—
Operating income		5,213			1,215			56,390			14,753
Other (expense)/income, net		(160	)		375			(187	)		992
Income before interest expense and income taxes		5,053			1,590			56,203			15,745
Interest expense		(5,902	)		(6,047	)		(18,143	)		(19,124	)
(Loss)/income before income taxes		(849	)		(4,457	)		38,060			(3,379	)
Income tax benefit/(expense)		192			694			(7,212	)		1,075
Net (loss)/income	$	(657	)	$	(3,763	)	$	30,848		$	(2,304	)

Weighted Average Number of Common Shares Outstanding:
Basic - Class A		89,998,301			89,375,668			89,723,751			89,210,136
Diluted - Class A		89,998,301			89,375,668			90,727,485			89,210,136
Per Share Amounts:
Basic and diluted net (loss)/income - Class A	$	(0.01	)	$	(0.04	)	$	0.34		$	(0.03	)

Consolidated Statements of Cash Flows ($ in thousands)

	Nine Months Ended September 30,
	2020			2019
	(unaudited)			(unaudited)
Cash Flows from Operating Activities:
Net income/(loss)	$	30,848		$	(2,304	)
Items included in net income not affecting cash flows:
Depreciation and amortization		43,488			38,922
Bad debt expense		—			4,300
Gain on termination of pre-existing arrangement		(19,172	)		—
Loss on disposal of vessels and other property, including impairments, net		959			87
Amortization of debt discount and other deferred financing costs		1,714			1,477
Compensation relating to restricted stock awards and stock option grants		1,685			1,212
Deferred income tax expense/(benefit)		7,237			(1,851	)
Interest on finance lease liabilities		1,493			941
Non-cash operating lease expense		68,706			68,057
Loss on extinguishment of debt, net		503			72
Distributed earnings of affiliated companies		3,562			3,314
Payments for drydocking		(20,819	)		(11,477	)
Operating lease liabilities		(69,263	)		(61,366	)
Changes in operating assets and liabilities, net		1,329			4,368
Net cash provided by operating activities		52,270			45,752
Cash Flows from Investing Activities:
Acquisition, net of cash acquired		(16,973	)		—
Proceeds from disposals of vessels and other property		1,407			3,404
Expenditures for vessels and vessel improvements		(55,197	)		(105,244	)
Expenditures for other property		—			(1,399	)
Net cash used in investing activities		(70,763	)		(103,239	)
Cash Flows from Financing Activities:
Payments on debt		(35,844	)		(16,667	)
Extinguishment of debt		(25,249	)		(3,271	)
Tax withholding on share-based awards		(197	)		(294	)
Issuance of debt, net of issuance and deferred financing costs		95,370			48,583
Payments on principal portion of finance lease liabilities		(3,124	)		(1,847	)
Net cash provided by financing activities		30,956			26,504
Net increase/(decrease) in cash, cash equivalents and restricted cash		12,463			(30,983	)
Cash, cash equivalents and restricted cash at beginning of period		41,677			80,641
Cash, cash equivalents and restricted cash at end of period	$	54,140		$	49,658

Spot and Fixed TCE Rates Achieved and Revenue Days

The following tables provide a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three and nine months ended September 30, 2020 and the comparable period of 2019. Revenue days in the quarter ended September 30, 2020 totaled 1,874 compared with 1,735 in the prior year quarter. A summary fleet list by vessel class can be found later in this press release.

	2020				2019
*Three Months Ended September 30,*	Spot Earnings		Fixed Earnings		Spot Earnings		Fixed Earnings
Jones Act Handysize Product Carriers:
Average rate	$	2,437	$	61,418	$	2,825	$	57,494
Revenue days		67		922		184		1,009
Non-Jones Act Handysize Product Carriers:
Average rate	$	32,089	$	15,778	$	32,809	$	12,810
Revenue days		184		185		92		91
ATBs:
Average rate	$	2,786	$	29,616	$	938	$	21,507
Revenue days		60		86		14		166
Lightering:
Average rate	$	79,214	$	—	$	56,923	$	—
Revenue days		94		—		179		—
Alaska (a):
Average rate	$	—	$	58,669	$	—	$	—
Revenue days		—		276		—		—

	2020				2019
*Nine Months Ended September 30,*	Spot Earnings		Fixed Earnings		Spot Earnings		Fixed Earnings
Jones Act Handysize Product Carriers:
Average rate	$	34,806	$	60,999	$	20,635	$	57,192
Revenue days		248		3,061		431		2,950
Non-Jones Act Handysize Product Carriers:
Average rate	$	29,137		16,434	$	25,213	$	12,319
Revenue days		494		548		303		242
ATBs:
Average rate	$	17,244	$	27,119	$	18,573	$	21,565
Revenue days		277		175		188		685
Lightering:
Average rate	$	59,145	$	61,012	$	65,984	$	—
Revenue days		337		87		529		—
Alaska (a):
Average rate	$	—	$	58,643	$	—	$	—
Revenue days		—		605		—		—

(a) Excludes one Alaska vessel currently in layup.

Fleet Information

As of September 30, 2020, OSG’s operating fleet consisted of 24 vessels, 12 of which were owned, with the remaining vessels chartered-in. Vessels chartered-in are on Bareboat Charters.

	Vessels Owned		Vessels Chartered- In		Total at September 30, 2020
Vessel Type	Number		Number		Total Vessels		Total dwt ⁽³⁾
Handysize Product Carriers ⁽¹⁾		6		11		17		810,825
Crude Oil Tankers ⁽²⁾		3		1		4		772,194
Refined Product ATBs		1		—		1		27,091
Lightering ATBs		2		—		2		91,112
Total Operating Fleet		12		12		24		1,701,222

	(1)		Includes two owned shuttle tankers, 11 chartered-in tankers, two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program, all of which are U.S. flagged, as well as two owned Marshall Island flagged non-Jones Act MR tankers trading in international markets.
	(2)		Includes three crude oil tankers doing business in Alaska and one crude oil tanker bareboat chartered-in and in layup.
	(3)		Total dwt is defined as aggregate deadweight tons for all vessels of that type.

Reconciliation to Non-GAAP Financial Information

The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the following non-GAAP measures provide investors with additional information that will better enable them to evaluate the Company’s performance. Accordingly, these non-GAAP measures are intended to provide supplemental information, and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.

(A) Time Charter Equivalent (TCE) Revenues

Consistent with general practice in the shipping industry, the Company uses TCE revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. TCE revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. Reconciliation of TCE revenues of the segments to shipping revenues as reported in the consolidated statements of operations follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Time charter equivalent revenues	$	92,281	$	76,502	$	289,782	$	241,360
Add: Voyage expenses		13,467		4,424		31,364		15,762
Shipping revenues	$	105,748	$	80,926	$	321,146	$	257,122

Vessel Operating Contribution

Vessel operating contribution, a non-GAAP measure, is TCE revenues minus vessel expenses and charter hire expenses.

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2020			2019			2020		2019
Niche Market Activities	$	22,091		$	20,435		$	61,513	$	63,786
Jones Act Handysize Tankers		(4,178	)		(1,590	)		18,134		3,555
ATBs		343			862			3,323		7,414
Alaska Crude Oil Tankers		8,199			—			18,610		—
Vessel Operating Contribution		26,455			19,707			101,580		74,755
Depreciation and amortization		15,253			13,324			43,488		38,922
General and administrative		6,140			5,288			19,915		16,917
Bad debt expense		—			—			—		4,300
(Gain)/loss on disposal of vessels and other property, including impairments, net		(151	)		36			959		87
Equity in income of affiliated companies		—			156			—		224
Gain on termination of pre-existing arrangement		—			—			19,172		—
Operating income	$	5,213		$	1,215		$	56,390	$	14,753

(B) EBITDA and Adjusted EBITDA

EBITDA represents net income/(loss) before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted to exclude amortization classified in charter hire expenses, interest expense classified in charter hire expenses, loss/(gain) on disposal of vessels and other property, including impairments, net, non-cash stock based compensation expense and loss on repurchases and extinguishment of debt and the impact of other items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be a substitute for, net income/(loss) or cash flows from operations as determined in accordance with GAAP. Some of the limitations are: (i) EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; (ii) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and (iii) EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt. While EBITDA and Adjusted EBITDA are frequently used as a measure of operating results and performance, neither of them is necessarily comparable to other similarly titled measures used by other companies due to differences in methods of calculation. The following table reconciles net income/(loss) as reflected in the consolidated statements of operations, to EBITDA and Adjusted EBITDA.

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2020			2019			2020		2019
Net (loss)/income	$	(657	)	$	(3,763	)	$	30,848	$	(2,304	)
Income tax (benefit)/expense		(192	)		(694	)		7,212		(1,075	)
Interest expense		5,902			6,047			18,143		19,124
Depreciation and amortization		15,253			13,324			43,488		38,922
EBITDA		20,306			14,914			99,691		54,667
Amortization classified in charter hire expenses		143			231			428		692
Interest expense classified in charter hire expenses		368			398			1,117		1,202
Non-cash stock based compensation expense		631			450			1,685		1,212
(Gain)/loss on disposal of vessels and other property, including impairments, net		(151	)		36			959		87
Loss on extinguishment of debt, net		488			24			503		72
Adjusted EBITDA	$	21,785		$	16,053		$	104,383	$	57,932

(C) Total Cash

($ in thousands)	September 30, 2020		December 31, 2019
Cash and cash equivalents	$	54,018	$	41,503
Restricted cash - current		49		60
Restricted cash – non-current		73		114
Total Cash	$	54,140	$	41,677

Category: Earnings.

Contacts

Investor Relations & Media Contact:
Susan Allan, Overseas Shipholding Group, Inc.
(813) 209-0620
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: Business Wire; Posted On Nov 06, 2020

Hess to Participate in Bank of America Securities 2020 Global Energy Conference

NEW YORK--(BUSINESS WIRE)--#exploration--Hess Corporation (NYSE: HES) announced today that John Hess, Chief Executive Officer, will speak at the Bank of America Securities 2020 Global Energy Conference on November 10, 2020 at 10:00 a.m. Eastern Time.

A live audio webcast and a replay of the presentation will be accessible via Hess Corporation’s website

Cautionary Statements

This presentation will contain projections and other 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. These projections and statements reflect the company’s current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved, and actual results could differ materially from those projected as a result of certain risk factors. A discussion of these risk factors is included in the company’s periodic reports filed with the Securities and Exchange Commission.

Contacts

Investor contact:
Jay Wilson
(212) 536-8940
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Media contact:
Lorrie Hecker
(212) 536-8250
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: Business Wire; Posted On Nov 06, 2020

Tellurian Reports Third Quarter 2020 Results

HOUSTON--(BUSINESS WIRE)--Tellurian Inc. (Tellurian) (NASDAQ: TELL) continues to build its integrated global natural gas business. During the third quarter of 2020, Tellurian raised $32.8 million in net proceeds through issuances of common stock, reduced debt by $33.9 million and extended the Term Loan maturity to March 2022.

Natural gas production for the third quarter was approximately 4.1 billion cubic feet equivalent (Bcfe) and remained flat with an exit rate of 47 million cubic feet equivalent per day (mmcfed). Natural gas sales rose to $7.3 million for the third quarter, which was an increase over $6.3 million in sales for the last quarter.

President and CEO Meg Gentle said, “Natural gas markets and prices have recovered worldwide. Investment in new drilling and infrastructure is acutely needed to balance the market in 2021 and beyond. Building liquefaction terminals as fully integrated partnerships is the only way partners will secure the lowest cost of gas and be protected from the market’s inherent volatility.”

Financial results

Tellurian ended its third quarter of 2020 with approximately $77.9 million in cash and cash equivalents and approximately $80.8 million in current borrowings. Tellurian’s balance sheet consisted of approximately $293.3 million in total assets.

Tellurian reported a net loss of approximately $29.4 million, or $0.10 per share (basic and diluted), for the three months ended September 30, 2020.

About Tellurian Inc.

Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide. Tellurian is developing a portfolio of natural gas production, LNG trading, and infrastructure that includes an ~ 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol “TELL”.

For more information, please visit www.tellurianinc.com. Follow us on Twitter at twitter.com/TellurianLNG

CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of U.S. federal securities laws. The words “anticipate,” “assume,” “believe,” “budget,” “estimate,” “expect,” “forecast,” “initial,” “intend,” “may,” “plan,” “potential,” “project,” “proposed,” “should,” “will,” “would,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements herein relate to, among other things, future drilling and economic results, future demand and market conditions, and the benefits of integrated partnerships. These statements involve a number of known and unknown risks, which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements. These risks include the matters discussed in Item 1A of Part I of the Annual Report on Form 10-K of Tellurian for the fiscal year ended December 31, 2019, and other Tellurian filings with the Securities and Exchange Commission, all of which are incorporated by reference herein. The forward-looking statements in this press release speak as of the date of this release. Although Tellurian may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by securities laws.

Contacts

Media:
Joi Lecznar
SVP Public Affairs and Communication
Phone +1.832.962.4044
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Investors:
Matt Phillips
Senior Manager, Investor Relations
Phone +1.832.320.9331
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: Business Wire; Posted On Nov 06, 2020

Wisconsin's First Large-Scale Solar Facility Producing Clean Energy

MGE's 50-megawatt share of project advances company's net-zero carbon goal

MADISON, Wis.--(BUSINESS WIRE)--Wisconsin's first large-scale solar project is complete and powering Madison-area households and businesses. Madison Gas and Electric (MGE) is a co-owner of the 150-megawatt (MW) Two Creeks Solar facility with Wisconsin Public Service (WPS). MGE owns 50 MW; WPS owns 100 MW.

"We are excited that Two Creeks Solar is now generating cost-effective, carbon-free energy for all our customers," said Jeff Keebler, MGE Chairman, President and CEO. "Growing our use of renewable resources is a key strategy for achieving our goal of net-zero carbon electricity by the year 2050. The completion of Two Creeks Solar is an important step in our ongoing transition toward deep decarbonization."

Two Creeks Solar features 500,000 solar panels across 800 acres in Manitowoc County. It can power more than 33,000 homes.

NextEra Energy Resources LLC developed and built Two Creeks Solar in partnership with MGE and WPS. Construction began in August 2019. Many of the facility’s components, including its half-million panels, were installed this spring and summer. Two Creeks is located in the Town of Two Creeks and City of Two Rivers.

Badger Hollow Solar Farm

MGE also will own 100 MW of the 300-MW Badger Hollow Solar Farm in Iowa County, Wisconsin, about 12 miles west of Dodgeville. Construction continues on the 150-MW Phase I of the project. It is expected online in spring 2021.

MGE targeting net-zero carbon by 2050

Consistent with the latest climate science, MGE is targeting net-zero carbon electricity by 2050. The company continues to work toward carbon reductions of at least 40% by 2030, as announced in 2015 and consistent with the landmark Paris Agreement on climate change. If MGE can go further faster in reducing carbon emissions, it will. To reach its carbon-reduction goals, MGE is growing its use of renewable energy, engaging customers around energy efficiency and facilitating the electrification of transportation, all of which are key strategies identified by the United States for achieving deep decarbonization. Visit mge2050.com to learn more.

About MGE

MGE generates and distributes electricity to 155,000 customers in Dane County, Wis., and purchases and distributes natural gas to 163,000 customers in seven south-central and western Wisconsin counties. MGE's parent company is MGE Energy, Inc. The company's roots in the Madison area date back more than 150 years.

Contacts

Steve Schultz
Corporate Communications Manager
608-252-7219 | This email address is being protected from spambots. You need JavaScript enabled to view it.

: Business Wire; Posted On Nov 06, 2020

Bahrain Oil Refining Industry Report 2020 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Oil Refining Industry in Bahrain 2020" report has been added to ResearchAndMarkets.com's offering.

The downstream energy sector report, "Oil Refining Industry in Bahrain" is a complete source of information on Bahrain crude oil refining industry.

It provides refinery level information relating to existing and planned (new build) refineries such as insights and forecasts of refinery capacities, refined petroleum products production and consumption, refinery complexity factor and comparison against peer group countries in the respective region. The report also covers complete details of major players operating in the refining sector in Bahrain and in depth analysis of the latest industry news and deals.

Report Scope

Outlook of Country Oil Refining Industry and refined petroleum products beyond 2020
Forecasts of refined products production and consumption along with major refining companies and operators.
Historic and Forecasted Refining capacity and secondary units capacities beyond 2020
Key Opportunities and Restraints in country Refinery market
Benchmark with five peer group countries on Nelson Complexity Factor.
Market structure of Country Refining Industry, companies, capacities and market share.
Information on planned refineries such as planned capacity, equity structure, Operator Company, expected commissioning date and project cost.
Refined petroleum products production and demand beyond 2020.
Refinery level information such as refinery name, commissioned year, primary and secondary units installed capacities along with future capacity expansions, refinery complexity factor, ownership and operator details.
Company profiles of major refining companies including SWOT Analysis.
Latest mergers, acquisitions, contract announcements and all related industry news and deals analysis.

Key Topics Covered:

1 Table of Contents

1.1 List of Figures

1.2 List of Tables

2 Introduction to Bahrain Refining Markets

2.1 What is This Report About?

2.2 Market Definition

3 Refining Industry in Bahrain

3.1 Bahrain Refining Market Snapshot, 2019

3.2 Role of Bahrain in Global and Regional Refining Markets

3.2.1 Contribution to Middle East and Africa and Global Refining Capacity, 2019

3.2.2 Bahrain Average Nelson Complexity Factor (NCF) vs. Middle East and Africa and Global, 2019

4 Bahrain Refining Market- Drivers and Restraints

4.1 Bahrain Refining Industry: Trends and Issues

4.1.1 Bahrain Refining Industry: Major Trends

4.2 Major Restrains of Investing in Bahrain Refining Sector

5 Bahrain Oil Products Demand and Supply Forecast to 2025

5.1 Bahrain Refined Products Demand Forecast to 2025

5.1.1 Bahrain Gasoline Demand Forecast to 2025

5.1.2 Bahrain Diesel Oil Demand Forecast to 2025

5.1.3 Bahrain Kerosene Demand Forecast to 2025

5.1.4 Bahrain LPG Demand Forecast to 2025

5.2 Bahrain Refined Products Production Forecast to 2025

5.2.1 Bahrain Gasoline Production Forecast to 2025

5.2.2 Bahrain Diesel Oil Production Forecast to 2025

5.2.3 Bahrain Kerosene Production Forecast to 2025

5.2.4 Bahrain LPG Production Forecast to 2025

6 Bahrain Refinery Capacities Forecast to 2025

6.1 Location, Operator, Ownership, Startup Details of Operational Refineries in Bahrain

6.1.1 Refinery Location, Operator, Ownership, Startup Details

6.2 Bahrain Total Refining Capacity Historic and Forecast, 2012-2025

6.3 Bahrain Refining Capacity Historic and Forecast, 2012-2025

6.4 Bahrain Refinery wise Secondary Conversion Unit-1 Capacity, 2012-2025

6.5 Bahrain Refinery wise Secondary Conversion Unit-2 Capacity, 2012-2025

6.6 Bahrain Refinery wise Secondary Conversion Unit-3 Capacity, 2012-2025

7 Bahrain Refining Industry- Future Developments and Investment Opportunities

7.1 Capital Investment Details of All Upcoming Refineries

7.2 Location, Operator, Ownership, Start Up Details of Planned Refineries in Bahrain

7.2.1 Refinery Location, Operator, Ownership, Startup Details

7.3 Refinery Capacities of All Upcoming Refineries

8 Key Strategies Bahrain Refining Companies

8.1 Bahrain Company wise Refining Capacity Forecast, 2012-2025

9 Bahrain Petroleum Company Company Profile

9.1 Bahrain Petroleum Company Key Information

9.2 Bahrain Petroleum Company Company Overview

9.3 Bahrain Petroleum Company Business Description

9.4 Bahrain Petroleum Company SWOT Analysis

9.4.1 Overview

9.4.2 Strengths

9.4.3 Weaknesses

9.4.4 Opportunities

9.4.5 Threats

9.5 Bahrain Petroleum Company Financial Ratios - Capital Market Ratios

9.6 Bahrain Petroleum Company Financial Ratios - Annual Ratios

9.7 Bahrain Petroleum Company Financial Ratios - Interim Ratios

10 Bahrain Refining Industry Latest Tenders and Contracts

11 Bahrain Refining Industry Updates

12 Bahrain Refining Industry Deals

12.1 Detailed Deal Summary

13 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/qmath8

Contacts

: Business Wire; Posted On Nov 06, 2020

Middle East Renewable Energy Markets, 2020-2025 - Solar PV Dominating Investments in the Potential $340+ Billion Industry - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Solar PV Dominating Investment Opportunities in Renewable Sector Across the Middle East, 2020-2025" report has been added to ResearchAndMarkets.com's offering.

Renewable energy presents a $341.1 billion opportunity for companies wishing to ride on the growth in this decade.

Sustainable development is the theme gaining unparalleled levels of attention and importance across the globe. The Middle East hosts top oil exporters in the world along with some of the top carbon emitters. The onus to reduce greenhouse gases (GHG) has fallen on the region and, therefore, the countries in the region have ambitious targets to promote renewables and thereby, reduce the carbon footprint.

Key drivers of market growth are climate change commitments, abundance of resources, falling costs of renewables, and progressive policies being implemented by countries in the region to promote clean energy and reduce carbon footprint.

This study explores the avenues for investments available for renewables companies in this region that arise as a result of this serious effort towards promoting renewables in the region and also as a result of localisation efforts by these countries as they move towards building well-diversified and non-oil dependent economies.

The scope of the study is limited to solar (PV and CSP) and wind (onshore) technologies and geographic coverage is the Middle East, covering the Gulf Cooperation Council (GCC) countries and also Iran, Iraq, Jordan, and Lebanon.

Opportunities are abound with capacity additions of more than 57.0 GW in the pipeline. This study explores critical success factors and growth opportunities available for companies with the right strategy, along with technology trends and growth themes.

While the Kingdom of Saudi Arabia (KSA) is the leader in terms of planned capacity addition, other key markets include Qatar and the UAE. In terms of technologies, solar PV is expected to gain maximum traction during the next 5 years compared to other technologies. The study touches upon the current capacity of local equipment manufacturers, the key participants in the market and possible future capabilities of manufacturers.

This is a market that requires strategic partnerships and critical local market knowledge for success. Besides, due to limitations in resources other than oil, a robust procurement strategy is key to sustain profits.

Key Issues Addressed

What is the installed capacity of renewable energy in the region and what is the expected investment in each renewable energy technology type?
What are the trends affecting the renewable energy industry?
How is the competitive landscape, and what are the critical success factors?
What are the growth opportunities available for new entrants and existing participants?
What are the opportunities available in each country in the region?

Key Topics Covered:

1. Strategic Imperatives

Why Is It Increasingly Difficult to Grow?
The Strategic Imperative
Middle Eastern Renewable Energy and the Strategic Imperative-Top 3 Strategic Imperatives Affecting Growth
Growth Opportunities Fuel the Growth Pipeline Engine

2. Growth Opportunity Analysis, Middle Eastern Renewable Energy-Executive Summary

Key Findings
Top Power Industry Trends in the Middle East
Renewable Energy Installed Capacity and Trends
Renewable Energy Capacity Targets
RE Installed Capacity Breakdown
Top Trends

3. Investment Opportunity and Outlook

Localisation Drive in the Region
CEO's Perspective

4. Research Scope and Segmentation

Research Scope
Key Questions this Study will Answer

5. Drivers and Restraints-ME Renewable Energy

Growth Drivers
Growth Drivers Explained
Growth Restraints
Growth Restraints Explained

6. Middle Eastern Power Industry Outlook

Overall Power Generation Capacity
Growth in Power Demand at a CAGR of 4.1%
Role of Renewables
Middle Eastern Renewable Energy Sector Overview

7. Forecast Assumptions, Middle Eastern Renewable Sector

Overall Power Generation Capacity
Regional Attractiveness

8. Renewable Energy Outlook and Investment Opportunities-KSA

KSA RE Sector Snapshot
KSA-Key Government Policies and Initiatives
Key Competitors
Renewable Energy Installed Capacity and Trends
Opportunity Size
Projects
Opportunities in Local Manufacturing-Wind and Solar
Opportunities in Local Manufacturing-Solar PV Value Chain
Opportunities in Local Manufacturing-Solar CSP Value Chain
Opportunities in Local Manufacturing-Wind Value Chain

9. Renewable Energy Outlook and Investment Opportunities-UAE

UAE RE Sector Snapshot
UAE-Key Government Policies and Initiatives
Key Competitors
Renewable Energy Installed Capacity and Trends
Opportunity Size
Projects
Opportunities in Local Manufacturing-Solar PV Value Chain
Opportunities in Local Manufacturing-Solar CSP Value Chain
Opportunities in Local Manufacturing-Wind Value Chain

10. Renewable Energy Outlook and Investment Opportunities-Qatar

Qatar RE Sector Snapshot
Qatar-Key Government Policies and Initiatives
Key Competitors
Renewable Energy Installed Capacity and Trends
Opportunity Size
Opportunities in Local Manufacturing-Solar PV Value Chain

11. Renewable Energy Outlook and Investment Opportunities-Kuwait

Kuwait RE Sector Snapshot
Kuwait-Key Government Policies and Initiatives
Key Competitors
Renewable Energy Installed Capacity and Trends
Opportunity Size
Projects
Opportunities in Local Manufacturing-Solar PV Value Chain

12. Renewable Energy Outlook and Investment Opportunities-Bahrain

Bahrain RE Sector Snapshot
Bahrain-Key Government Policies and Initiatives
Key Competitors
Renewable Energy Installed Capacity and Trends
Opportunity Size
Opportunities in Local Manufacturing-Solar PV Value Chain

13. Renewable Energy Outlook and Investment Opportunities-Oman

Oman RE Sector Snapshot
Oman-Key Government Policies and Initiatives
Key Competitors
Renewable Energy Installed Capacity and Trends
Opportunity Size
Projects
Opportunities in Local Manufacturing-Solar PV Value Chain

14. Renewable Energy Outlook and Investment Opportunities-Rest of the Middle East

Rest of ME RE Sector Snapshot
Rest of ME-Key Government Policies and Initiatives
Key Competitors
Renewable Energy Installed Capacity and Trends
Opportunity Size
Opportunities in Local Manufacturing-Solar PV Value Chain (Lebanon)

15. Growth Opportunity Universe, Middle Eastern Renewable Energy Sector

Growth Theme 1-RE for Desalination
Growth Theme 2-RE in Mobility
Growth Theme 3-RE in District Cooling
Growth Opportunity 1-Anti-soiling and Efficiency Improvement Solutions for Addressing Efficiency Losses, 2020
Growth Opportunity 2-Storage Solutions to Address Intermittency and Output Stabilisation
Critical Success Factors

16. The Last Word

For more information about this report visit https://www.researchandmarkets.com/r/2lx1ny

Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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: Business Wire; Posted On Nov 06, 2020

DXP Enterprises Reports Third Quarter 2020 Results

$97.4 million in cash and cash equivalents
$220.2 million in sales
GAAP diluted EPS of $(1.95), excluding non-cash, one-time items, adjusted EPS of $0.16
Cash flow from operating activities of $30.5 million
Free cash flow for the quarter of $29.1 million
Recorded $48.4 million in goodwill impairments and other one-time, non-cash charges

HOUSTON--(BUSINESS WIRE)--DXP Enterprises, Inc. (NASDAQ: DXPE) today announced financial results for the third quarter ended September 30, 2020. The following are results for the three and nine months ended September 30, 2020, compared to the three and nine months ended September 30, 2019. A reconciliation of the non-GAAP financial measures can be found in the back of this press release.

Third Quarter 2020 financial highlights:

Sales were $220.2 million, compared to $327.2 million for the third quarter of 2019.
Earnings per diluted share for the third quarter was $(1.95) based upon 17.8 million diluted shares, compared to $0.71 per share in the third quarter of September 30, 2019, based on 18.4 million diluted shares. Excluding non-cash impairment charges of $48.4 million, earnings per diluted share was $0.16 per share, assuming a 22.4 percent tax rate.
Adjusted EBITDA for the third quarter of 2020 was $13.7 million, versus $13.8 million for the second quarter of 2020 and $28.6 million for the third quarter of 2019. Adjusted EBITDA as a percentage of sales was 6.2 percent versus 5.5 percent for the second quarter of 2020 and 8.7 percent in 2019, respectively.
Free cash flow (cash flow from operating activities less capital expenditures) for the third quarter of 2020 was $29.1 million compared to $5.3 million for the third quarter of 2019.

David R. Little, Chairman and CEO commented, “Our solid execution and focus in a challenging environment continued to deliver reasonable results with significant progress in the quarter serving our customers, most notably $29.1 million in resilient free cash flow and a continued strong balance sheet. Our cash from operations continues to put us in a position to grow the business when the opportunity presents itself and pay down debt, when appropriate. We are aggressively working opportunities to sharpen our focus, transform our operations and continue investing in growth areas, with the customer at the center of everything we do."

Mr. Little continued, "During the third quarter, we achieved $220.2 million in sales, including $5.1 million from acquisitions. In terms of our business segments for the third quarter, sales were $164.9 million for Service Centers, $21.9 million for Innovative Pumping Solutions and $33.4 million for Supply Chain Services. Although the majority of lockdowns have been easing and economic activity is likely near trough levels, visibility on the economic outlook remains extremely limited. Specifically, the risk of a third wave of virus cases, the reinstitution of select geographic lockdowns, and the risk of lingering high unemployment create an uncertain economic environment that likely persists through the rest of 2020, based upon what we know today. Our results demonstrate a significant and sustainable reset to the power of our business to generate positive earnings and free cash flow and capture market share for our future."

Kent Yee, CFO commented, "Overall, we continue to grow sales in the markets we see strength and manage costs while adjusting to the COVID-19 operating challenges. Similar to our second quarter, we delivered financial results that display our ability to adjust to the current levels of activity. Additionally, like many of our peers, during the third quarter we incurred a pre-tax non-cash impairment and other one-time charges of $48.4 million related to goodwill and certain assets. This reflects the proper accounting treatment given the triggering events of COVID-19 and likely reaching a sales bottom and full impact of COVID during the third quarter. We remain positive around all of our acquisitions and their ability to positively contribute to DXP’s overall business and strategy. We had another strong quarter of free cash flow generation, producing $29.1 million in free cash flow. As of September 30, 2020, we had $97.4 million in cash and cash equivalents on the balance sheet. Our senior leverage was 2.8:1, well under the Q3 covenant limit of 4.5:1."

Financial Strength and Liquidity

Net debt, calculated as total long-term debt, net of cash and cash equivalents, on our balance sheet as of September 30, 2020, was down to $120.1 million compared to $216.4 million at September 30, 2019. As of September 30, 2020, DXP has approximately $211.6 million in liquidity, consisting of $97.3 million in cash on hand and approximately $114.3 million in availability under our ABL facility.

We will host a conference call regarding September 30, 2020 third quarter results on the Company’s website (www.dxpe.com) Friday, November 6, 2020 at 10:30 am CST. Web participants are encouraged to go to the Company’s website at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. The on-line archived replay will be available immediately after the conference call at www.dxpe.com.

Non-GAAP Financial Measures

DXP supplements reporting of net income with non-GAAP measurements, including EBITDA, adjusted EBITDA, free cash flow, non-GAAP net income and net debt. This supplemental information should not be considered in isolation or as a substitute for the unaudited GAAP measurements. Additional information regarding EBITDA, free cash flow and non-GAAP net income referred to in this press release are included below under "Unaudited Reconciliation of Non-GAAP Financial Information."

The Company believes EBITDA provides additional information about: (i) operating performance, because it assists in comparing the operating performance of the business, as it removes the impact of non-cash depreciation and amortization expense as well as items not directly resulting from core operations such as interest expense and income taxes and (ii) the performance and the effectiveness of operational strategies. Additionally, EBITDA performance is a component of a measure of the Company’s financial covenants under its credit facility. Furthermore, some investors use EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry. Management believes that some investors’ understanding of performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing ongoing results of operations. By providing this non-GAAP financial measure, together with a reconciliation from net income, the Company believes it is enhancing investors’ understanding of the business and results of operations, as well as assisting investors in evaluating how well the Company is executing strategic initiatives.

About DXP Enterprises, Inc.

DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada, Mexico and Dubai. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production ("MROP") services that emphasize and utilize DXP’s vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer-driven, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to www.dxpe.com.

The Private Securities Litigation Reform Act of 1995 provides a “safe-harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. These forward-looking statements include without limitation those about the Company’s expectations regarding the impact of the COVID-19 pandemic and the impact of low commodity prices of oil and gas; the Company’s business, the Company’s future profitability, cash flow, liquidity, and growth. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to; decreases in oil and natural gas prices; decreases in oil and natural gas industry expenditure levels, which may result from decreased oil and natural gas prices or other factors; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, economic risks related to the impact of COVID-19, ability to manage changes and the continued health or availability of management personnel and changes in customer preferences and attitudes. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, “may,” “will,” “should,” “intend,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “goal,” or “continue” or the negative of such terms or other comparable terminology. For more information, review the Company’s filings with the Securities and Exchange Commission. More information on these risks and other potential factors that could affect the Company’s business and financial results is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

DXP ENTERPRISES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019

Sales	$	220,193		$	327,178		$	772,577		$	971,721
Cost of sales		158,892			234,474			557,595			702,830
Gross profit		61,301			92,704			214,982			268,891
Selling, general and administrative expenses		53,746			70,987			189,759			209,511
Impairment and other charges		48,401			—			48,401			—
Operating income (loss)		(40,846	)		21,717			(23,178	)		59,380
Other expense (income), net		320			(25	)		(381	)		127
Interest expense		3,752			4,986			12,059			14,911
Income (loss) before income taxes		(44,918	)		16,756			(34,856	)		44,342
Provision for income taxes (benefit)		(10,143	)		3,606			(7,809	)		10,655
Net income (loss)		(34,775	)		13,150			(27,047	)		33,687
Net (loss) income attributable to NCI*		(109	)		41			(233	)		(172	)
Net income (loss) attributable to DXP Enterprises, Inc.		(34,666	)		13,109			(26,814	)		33,859
Preferred stock dividend		23			23			68			68
Net income (loss) attributable to common shareholders	$	(34,689	)	$	13,086		$	(26,882	)	$	33,791
Diluted earnings (loss) per share attributable to DXP Enterprises, Inc.	$	(1.95	)	$	0.71		$	(1.52	)	$	1.84
Weighted average common shares and common equivalent shares outstanding		17,790			18,442			17,743			18,428

*NCI represents non-controlling interest

Business segment financial highlights:

Service Centers’ revenue for the third quarter was $164.9 million, a decrease of 14.9 percent year-over-year with a 13.4 percent operating income margin.
Innovative Pumping Solutions’ revenue for the third quarter was $21.9 million, a decrease of 73.4 percent year-over-year with an unfavorable 13.3 percent operating income margin.
Supply Chain Services’ revenue for the third quarter was $33.4 million, a decrease of 34.8 percent year-over-year with a 8.7 percent operating income margin.

SEGMENT DATA
($ thousands, unaudited)

	Three Months Ended September 30,					Nine Months Ended September 30,
Sales	2020			2019		2020		2019
Service Centers	$	164,900		$	193,727	$	501,333	$	579,884
Innovative Pumping Solutions	21,876			82,169		152,376		237,920
Supply Chain Services	33,417			51,282		118,868		153,917
Total DXP Sales	$	220,193		$	327,178	$	772,577	$	971,721


	Three Months Ended September 30,					Nine Months Ended September 30,
Operating Income	2020			2019		2020		2019
Service Centers	$	22,151		$	25,071	$	52,742	$	67,281
Innovative Pumping Solutions	(2,913		)	10,097		16,080		28,924
Supply Chain Services	2,900			3,110		10,008		10,980
Total segments operating income	$	22,138		$	38,278	$	78,830	$	107,185

Reconciliation of Operating Income for Reportable Segments
($ thousands, unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Operating income for reportable segments	$	22,138		$	38,278		$	78,830		$	107,185
Adjustment for:
Impairment and other charges	48,401			—			48,401			—
Amortization of intangibles	3,053			3,806			9,296			11,423
Corporate expenses	11,530			12,755			44,311			36,382
Total operating income (loss)	$	(40,846	)	$	21,717		$	(23,178	)	$	59,380
Interest expense	3,752			4,986			12,059			14,911
Other expense (income), net	320			(25		)	(381		)	127
Income (loss) before income taxes	$	(44,918	)	$	16,756		$	(34,856	)	$	44,342

Unaudited Reconciliation of Non-GAAP Financial Information
($ thousands, unaudited)

The following table is a reconciliation of EBITDA and adjusted EBITDA, a non-GAAP financial measure, to income before taxes, calculated and reported in accordance with U.S. GAAP.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Income (loss) before income taxes		(44,918	)		16,756		$	(34,856	)	$	44,342
Plus: interest expense		3,752			4,986			12,059			14,911
Plus: depreciation and amortization		5,304			6,422			17,294			18,693
EBITDA	$	(35,862	)	$	28,164		$	(5,503	)	$	77,946

Plus: NCI loss (gain) income before tax*		183			(55	)		233			228
Plus: Impairment and other charges		48,401			—			48,401			—
Plus: stock compensation expense		983			473			2,870			1,502
Adjusted EBITDA	$	13,705		$	28,582		$	46,001		$	79,676

* NCI represents non-controlling interest

DXP ENTERPRISES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
($ thousands, except per share amounts)

	September 30, 2020		December 31, 2019
ASSETS
*Current assets:*
Cash	$	97,287	$	54,203
Restricted cash	91		124
Accounts receivable, net of allowances for doubtful accounts	152,013		187,116
Inventories	118,864		129,364
Costs and estimated profits in excess of billings	21,544		32,455
Prepaid expenses and other current assets	6,061		4,223
Federal income taxes receivable	6,834		996
*Total current assets*	$	402,694	$	408,481
Property and equipment, net	57,452		63,703
Goodwill	166,375		194,052
Other intangible assets, net of accumulated amortization	47,616		52,582
Operating lease right-of-use assets	58,657		66,191
Other long-term assets	3,924		3,211
Total assets	$	736,718	$	788,220

LIABILITIES AND EQUITY
*Current liabilities:*
Current maturities of long-term debt	$	2,500	$	2,500
Trade accounts payable	81,570		76,438
Accrued wages and benefits	21,121		23,412
Customer advances	9,185		3,408
Billings in excess of costs and estimated profits	4,168		11,871
Current-portion operating lease liabilities	16,605		17,603
Other current liabilities	20,723		12,939
*Total current liabilities*	$	155,872	$	148,171
Long-term debt, less unamortized debt issuance costs	209,813		235,419
Long-term operating lease liabilities	41,324		48,605
Other long-term liabilities	2,007		1,205
Deferred income taxes	4,148		9,872
Total long-term liabilities	$	257,292	$	295,101
Total Liabilities	$	413,164	$	443,272
*Equity:*
*Total DXP Enterprises, Inc. equity*	322,641		343,802
Non-controlling interest	913		1,146
*Total Equity*	$	323,554	$	344,948
Total liabilities and equity	$	736,718	$	788,220

Unaudited Reconciliation of Non-GAAP Financial Information
($ thousands, unaudited)

The following table is a reconciliation of free cash flow, a non-GAAP financial measure, to cash flow from operating activities, calculated and reported in accordance with U.S. GAAP.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2020			2019		2020			2019

Net cash from operating activities	$	30,476		$	10,943	$	92,240		$	7,483
Less: purchases of property and equipment		1,397			5,663		6,530			14,247
Plus: proceeds from sales of property and equipment		—			1		123			35
Free cash flow	$	29,079		$	5,281	$	85,833		$	(6,729	)


The following table is a reconciliation of adjusted net income, a non-GAAP financial measure, to net income, calculated and reported in accordance with U.S. GAAP.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2020			2019		2020			2019

GAAP Net Income (Loss) :	$	(34,689	)	$	13,086	$	(26,882	)	$	33,791
Impairment and other charges		48,401			—		48,401			—
Adjustment for taxes*		(10,842	)		—		(10,842	)		—
Non-GAAP net income	$	2,870		$	13,086	$	10,677		$	33,791

Diluted earnings (loss) per share:
GAAP	$	(1.95	)	$	0.71	$	(1.52	)	$	1.84
Non-GAAP	$	0.16		$	0.71	$	0.58		$	1.84

* Adjustment for taxes relates to the tax effects of the adjustments that we incorporate into non-GAAP measures in order to provide a more meaningful measure on non-GAAP net income. For tax purposes the year-to-date effective tax rate of 22.4 percent was applied to the impairment and other charges for conservative purposes.

Contacts

Kent Yee, 713-996-4700
Senior Vice President, CFO
www.dxpe.com

: Business Wire; Posted On Nov 06, 2020

ExOne Joins Additive Manufacturing Consortium to Develop Oil & Gas and Maritime Quality Standards

NORTH HUNTINGDON, Pa.--(BUSINESS WIRE)--The ExOne Company (Nasdaq: XONE), the global leader in industrial sand and metal 3D printers using binder jetting technology, today announced it is one of 16 companies participating in a consortium led by DNV GL, the world’s leading risk management and quality assurance society for the oil & gas and maritime industries.

The consortium was founded in 2018 with the goal of developing an industry-accepted guideline for quality assurance of additively manufacturing parts.

Today, the consortium includes the entire value chain of operators, contractors and fabricators: Equinor, Saudi Aramco, Siemens, Kongsberg Maritime, Voestalpine, Guaranteed, IMI CCI, Kongsberg Ferrotech, Addilan, BMT Aerospace, FIT AG, Howco Group, ImphyTek Powders, Intertek, XDM3D and ExOne.

In February, the consortium released a new standard, “Additive manufacturing of metallic parts” (DNVGL-ST-B203) for the oil & gas sector, which is focused on wire-arc additive manufacturing (WAAM) and laser-based powder bed fusion (PBF-LM). Now, the group is expanding its effort to incorporate more AM technologies, such as binder jetting technology (BJT).

“As manufacturers around the world move to new additive manufacturing technologies, it’s important that they have standards to ensure the quality of their AM parts and products,” said John Hartner, ExOne CEO. “Binder jetting technology already delivers many benefits to the oil & gas and maritime industries, and we’re eager to expand that reach with new quality standards. Our binder jetting technology can help manufacturers 3D print large or small parts in high volumes that bring them broad benefits.”

About ExOne

ExOne is the pioneer and global leader in binder jet 3D printing technology. Since 1995, we’ve been on a mission to deliver powerful 3D printers that solve the toughest problems and enable world-changing innovations. Our 3D printing systems quickly transform powder materials — including metals, ceramics, composites and sand — into precision parts, metalcasting molds and cores, and innovative tooling solutions. Industrial customers use our technology to save time and money, reduce waste, improve their manufacturing flexibility, and deliver designs and products that were once impossible. As home to the world’s leading team of binder jetting experts, ExOne also provides specialized 3D printing services, including on-demand production of mission-critical parts, as well as engineering and design consulting. Learn more about ExOne at www.exone.com or on Twitter at @ExOneCo. We invite you to join with us to #MakeMetalGreen™.

Contacts

Media:
Sarah Webster
Chief Marketing Officer
724-516-2336
This email address is being protected from spambots. You need JavaScript enabled to view it.

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