Business Wire News

The acquisition enables SEW to deliver end-to-end digital customer and workforce experiences, together with the trusted Integration platform for all IT-OT environments, will accelerate utilities’ digital transformation and grid modernization.


IRVINE, Calif.--(BUSINESS WIRE)--SEW, the leading provider of digital customer and workforce experience cloud platforms, announced the acquisition of 3Insys - Provider of an Agile Integration Platform delivering complete system, data, and security integration of IT-OT environments for the Energy and Utility industry. 3Insys products allow utilities to standardize on how applications are integrated into an organization, making it easier to automate business processes and share data across all applications. This combination will build upon the industry leadership to better serve energy and utility providers and compete in the global marketplace.

The acquisition will bolster SEW’s capability to deliver and implement end-to-end digital customer and workforce experience platforms and provide comprehensive solutions to address challenges associated with utilities and their critical infrastructure; solve underlying technical issues related to and integration of disparate and new systems that pose significant implementation challenges. The acquisition and the complementary strengths will help SEW deliver advanced solutions that simplify System, Data, and Security Integration and make integration as easy as plug-and-play.

Headquartered in California, 3Insys is the #1 Provider of Utility Integration Platform as a Service (iPaaS) for System Integration, Data Integration, Identity Management, API Management, and Robotic Process Automation.

3Insys takes pride in building Insightful, Innovative, and Intelligent Systems that assist electric, water, and gas utilities to securely orchestrate data flows and robotize complex operational processes throughout their IT-OT systems and environments.

SEW’s CX and WX Platform, together with 3Insys, will allow utilities to benefit from complete digital customer and workforce experience transformation, together with improved business processes. At heart, both the organizations and platforms are vertically focused, resulting in positive and immense acquisition synergies.

We are excited to close on our acquisition of 3Insys and look forward to partnering with talented associates and a management team led by Aras Raiani to support and grow the business well into the future. We are extending our SEW family and building an ecosystem of products and solutions that enable global utility transformation,” said Deepak Garg, CEO, and Founder SEW.Aras is a seasoned executive, and we’re confident that our partnership will enable 3Insys to thrive, expand its service offerings, and build on its strong legacy.”

The energy and utility industry are preparing for a long-term transition guided by net-zero, distributed generation, integration of renewables, eMobility, digital transformation, automation, and grid modernization. To aid and prepare, utilities require systems, platforms, and capabilities which allow smoother and future-ready transformation. SEW has the vision to become the utilities’ trusted partner, assisting and providing guidance to obtain sustainability in managing energy and water. We are excited to join SEW and bring even more value to the energy and water utility ecosystem with Integrated Connected Platforms,” said Aras Raiani, CEO and Founder 3Insys.

About SEW

SEW, with its innovative and industry-leading cloud platforms, delivers the best Digital Customer Experiences (CX) and Workforce Experiences (WX), powered by AI, ML, and IoT Analytics, to the global energy, water, and gas providers. At SEW, the vision is to Engage, Empower, and Educate billions of people to save energy and water. We partner with businesses to deliver platforms that are easy-to-use, integrate seamlessly, and help build a strong technology foundation that allows them to become future-ready.

Learn more about SEW here: www.SEW.Ai


Contacts

Mashal Dhawan
SEW
Chief Marketing Officer
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CLEVELAND--(BUSINESS WIRE)--Intelligent power management company Eaton has been named one of the World’s Most Admired Companies by FORTUNE magazine for the sixth straight year.


"We're honored to be named among the world's most admired companies once again," said Craig Arnold, Eaton chairman and chief executive officer. "This recognition reflects our broader commitment to operating in a way that benefits our stakeholders and all of society. We’re proud of the work our teams do every day to improve the lives of the people we serve."

FORTUNE’s list of the World’s Most Admired Companies is based on company surveys and peer ratings from top executives, directors and members of the financial community. They rate enterprises in their own industry on nine criteria, from investment value and quality of management and products to social responsibility and ability to attract talent.

Eaton is an intelligent power management company dedicated to improving the quality of life and protecting the environment for people everywhere. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we’re accelerating the planet’s transition to renewable energy, helping to solve the world’s most urgent power management challenges, and doing what’s best for our stakeholders and all of society.

Founded in 1911, 2023 marks Eaton’s 100th anniversary of being listed on the NYSE. We reported revenues of $19.6 billion in 2021 and serve customers in more than 170 countries. For more information, visit www.eaton.com. Follow us on Twitter and LinkedIn.


Contacts

Jennifer Tolhurst
(440) 523-4006
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ANAHEIM, Calif.--(BUSINESS WIRE)--$WLDN--Willdan Group, Inc. (NASDAQ: WLDN) announced today that it has created a plan for the National Parks of Lake Superior Foundation (NPLSF) to decarbonize land-based operations across five national parks in the Lake Superior region. The NPLSF announced this plan on Saturday, January 28 at the Great Northern Festival in Minneapolis with an address by U.S. Senator Tina Smith of Minnesota and by National Park Superintendent Denice Swanke from Isle Royale National Park.


Willdan’s engineering team developed an investment plan for each of the parks to achieve 100% greenhouse gas emissions reduction in land-based operations by eliminating fossil fuel use and switching to renewable electricity. The plan proposes an estimated investment of $15 million across the parks, a broad set of energy efficiency upgrades, and the electrification of space and water heating in 131 buildings and all land-based vehicles, including cars, trucks, and utility vehicles. Among a diverse set of technologies used to achieve this, the plan proposes air-source cold climate heat pumps as a cost-effective alternative to propane for space heating.

“Decarbonizing is not only the right thing to do for our five parks on Lake Superior, but it will also act as a realistic model for other National Parks and public lands,” said Tom Irvine, the Executive Director of the NPLSF. “Once you see the visitor’s center at the Grand Portage National Monument heated by an air-source heat pump instead of propane, you realize it can be done in your own home. When you are standing on the shores of the Isle Royale National Park at dusk . . . you won’t hear the drone of a diesel generator kicking in, just the deafening silence of the most remote wilderness area in the continental United States.”

U.S. Senator Tina Smith noted in her address at the Great Northern Festival that the plan for the region’s National Parks echoes the decarbonization plan for the nation as a whole. The plan pursues economic energy efficiency, decarbonizes the electric power sector, and electrifies energy use in buildings and transportation. She also noted that all these investments are supported by the Inflation Reduction Act passed in 2022.

“By using air-source cold climate heat pumps in one of the coldest regions in the U.S., we’re helping demonstrate that this technology is ready for nationwide adoption,” said Tom Brisbin, Willdan’s CEO and Chairman. “Other parks, businesses, and even cities can apply this plan’s decarbonization strategies, such as combining solar photovoltaic energy generation with battery storage, electric vehicles, and using electric heat pumps to heat spaces and water.”

The plan was catalyzed by a key investment from Askov Finlayson, a certified B Corporation and climate positive winter outerwear brand. Askov Finlayson Founder and CEO Eric Dayton said, “It’s exciting to be a part of climate leadership in our own backyard. This initiative can serve as a model to inspire further action both here in Minnesota and across the country.”

About the National Parks of Lake Superior Foundation (NPLSF)

The philanthropic partner of the five national parks of Lake Superior, NPLSF is a nonprofit that inspires people to create meaningful connections with the parks by providing funding for programming, educational initiatives, and outreach efforts, often with a climate resilience focus. NPLSF seeks to ensure the parks are nurtured and maintained so all may enjoy the captivating public lands today and for generations to come.

About Willdan

Willdan is a nationwide provider of professional, technical, and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting. For additional information, visit Willdan's website at www.willdan.com.

Forward-Looking Statements

Statements in this press release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors listed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended December 31, 2021. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release.


Contacts

Al Kaschalk
VP Investor Relations
310-922-5643
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Strong Operating Performance Across Organization During Winter Storm Elliott

WALL, N.J.--(BUSINESS WIRE)--Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the first quarter of fiscal 2023. Highlights include:


  • Consolidated net income of $115.9 million for the three months ended December 31, 2022, compared with net income of $111.3 million for the same period last year
  • Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $110.3 million, or $1.14 per share, for the three months ended December 31, 2022, compared to NFE of $65.8 million, or $0.69 per share, for the same period last year
  • Increases fiscal 2023 net financial earnings per share (NFEPS) guidance to a range of $2.62 to $2.72, from $2.42 to $2.52, a $0.20 increase, as a result of the strong performance of our business units during Winter Storm Elliott, particularly Energy Services
  • Maintains long-term projected NFEPS growth rate of 7 to 9 percent(1)

First-quarter fiscal 2023 net income totaled $115.9 million, or $1.20 per share, compared with net income of $111.3 million, or $1.16 per share, during the same period in fiscal 2022. First-quarter fiscal 2023 NFE totaled $110.3 million, or $1.14 per share, compared to NFE of $65.8 million, or $0.69 per share, during the same period in fiscal 2022.

Steve Westhoven, President and CEO, stated, "NJR reported a strong first quarter of fiscal 2023, with solid operating performance during the recent winter storm event of 2022 driving better than expected results. We are raising our fiscal 2023 NFEPS guidance to a range of $2.62 to $2.72, largely driven by an exceptional quarter from Energy Services as well as favorable contributions from New Jersey Natural Gas (NJNG) and Storage and Transportation. Overall, these results reflect the strength of our complementary portfolio of businesses and the value of our physical infrastructure.”

Key Performance Metrics

 

 

Three Months Ended

 

 

December 31,

($ in Thousands)

 

2022

 

2021

Net income

 

$

115,921

 

$

111,312

Basic EPS

 

$

1.20

 

$

1.16

Net financial earnings

 

$

110,284

 

$

65,770

Basic net financial earnings per share

 

$

1.14

 

$

0.69

(1)

NFEPS long-term annual growth projections are based on the midpoint of the $2.20 - $2.30 initial guidance range for fiscal 2022, provided on February 1, 2021

A reconciliation of net income to NFE for the three months ended December 31, 2022 and 2021, is provided below.

 

 

Three Months Ended

 

 

December 31,

(Thousands)

 

2022

 

2021

Net income

 

$

115,921

 

 

$

111,312

 

Add:

 

 

 

 

Unrealized (gain) on derivative instruments and related transactions

 

 

(31,503

)

 

 

(82,191

)

Tax effect

 

 

7,487

 

 

 

19,536

 

Effects of economic hedging related to natural gas inventory

 

 

23,972

 

 

 

23,577

 

Tax effect

 

 

(5,697

)

 

 

(5,603

)

NFE tax adjustment

 

 

104

 

 

 

(861

)

Net financial earnings

 

$

110,284

 

 

$

65,770

 

 

 

 

 

 

Weighted Average Shares Outstanding

 

 

 

 

Basic

 

 

96,485

 

 

 

95,944

 

Diluted

 

 

97,083

 

 

 

96,356

 

 

 

 

 

 

Basic earnings per share

 

$

1.20

 

 

$

1.16

 

Add:

 

 

 

 

Unrealized (gain) on derivative instruments and related transactions

 

 

(0.33

)

 

 

(0.86

)

Tax effect

 

 

0.08

 

 

 

0.21

 

Effects of economic hedging related to natural gas inventory

 

 

0.25

 

 

 

0.25

 

Tax effect

 

 

(0.06

)

 

 

(0.06

)

NFE tax adjustment

 

 

 

 

 

(0.01

)

Basic NFE per share

 

$

1.14

 

 

$

0.69

 

NFE is a measure of earnings based on the elimination of timing differences to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, Solar Renewable Energy Certificates (SRECs) and foreign currency contracts. Consequently, to reconcile net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

A table detailing NFE for the three months ended December 31, 2022 and 2021, is provided below.

Net financial earnings (loss) by Business Unit

 

 

Three Months Ended

 

 

December 31,

(Thousands)

 

2022

 

2021

New Jersey Natural Gas

 

$

54,664

 

 

$

51,080

 

Clean Energy Ventures (CEV)

 

 

(3,582

)

 

 

(6,821

)

Storage and Transportation

 

 

6,243

 

 

 

2,962

 

Energy Services

 

 

52,533

 

 

 

17,567

 

Home Services and Other

 

 

(29

)

 

 

447

 

Subtotal

 

 

109,829

 

 

 

65,235

 

Eliminations

 

 

455

 

 

 

535

 

Total

 

$

110,284

 

 

$

65,770

 

Fiscal 2023 NFE Guidance:

NJR is raising its fiscal 2023 NFE guidance by $0.20 to a range of $2.62 to $2.72, subject to the risks and uncertainties identified below under "Forward-Looking Statements." The following chart represents NJR’s current expected contributions from its business segments for fiscal 2023:

Company

Expected Fiscal 2023

Net Financial Earnings

Contribution

New Jersey Natural Gas

48 to 53 percent

Clean Energy Ventures

18 to 20 percent

Storage and Transportation

4 to 8 percent

Energy Services

20 to 25 percent

Home Services and Other

0 to 1 percent

In providing fiscal 2023 NFE guidance, management is aware there could be differences between reported GAAP earnings and NFE due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings and, therefore, is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts.

New Jersey Natural Gas

NJNG reported first-quarter fiscal 2023 NFE of $54.7 million, compared to NFE of $51.1 million during the same period in fiscal 2022. The improvement was due primarily to higher base rates, which became effective on December 1, 2021, as well as higher contribution from Basic Gas Supply Service incentive programs to utility gross margin.

Customer Growth:

  • NJNG added 2,132 new customers during first-quarter fiscal 2023, compared with 1,730 in fiscal 2022. NJNG expects these new customers to contribute approximately $1.8 million of incremental utility gross margin on an annualized basis.

Infrastructure Update:

  • NJNG's Infrastructure Investment Program (IIP) is a five-year, $150 million accelerated recovery program that began in fiscal 2021. IIP consists of a series of infrastructure projects designed to enhance the safety and reliability of NJNG's natural gas distribution system. During the first quarter of fiscal 2023 NJNG spent $8.8 million under the program on various distribution system reinforcement projects. On March 31, 2022, the Company filed its first rate recovery request with the BPU. On July 13, 2022, NJNG updated the filing with actual information through June 30, 2022, seeking recovery for $28.9 million of investments, including AFUDC, from November 30, 2020 through June 30, 2022. On September 7, 2022, the BPU issued an Order approving a stipulation of settlement effective October 1, 2022.

Basic Gas Supply Service (BGSS) Incentive Programs:

BGSS incentive programs contributed $8.7 million to utility gross margin in the first-quarter of fiscal 2023, compared with $3.8 million during the same period in fiscal 2022. The increase was due primarily to higher margins from off-system sales and the storage incentive program.

For more information on utility gross margin, please see "Non-GAAP Financial Information" below.

Energy-Efficiency Programs:

SAVEGREEN invested $10.7 million in the first quarter of fiscal 2023 in energy-efficiency upgrades for their customers' homes and businesses. NJNG recovered $2.5 million of its outstanding investments during the first quarter of fiscal 2023 through its energy efficiency rate.

Clean Energy Ventures

CEV reported first-quarter fiscal 2023 net financial loss of $(3.6) million, compared with net financial loss of $(6.8) million during the same period in fiscal 2022. The improvement was due primarily to higher SREC and electricity revenue and lower operating expenses, partially offset by higher depreciation expenses.

Solar Investment Update:

  • During the first quarter of fiscal 2023, CEV placed 3 commercial projects into service, adding approximately 18 megawatts (MW) to total installed capacity.
  • As of December 31, 2022, CEV had approximately 405MW of solar capacity (including residential) in service in New Jersey, Rhode Island, New York and Connecticut.
  • Subsequent to quarter end, CEV placed a 25MW commercial project into service, and now has over 430MW (including residential) of total installed capacity as of February 2, 2022.

Storage and Transportation

Storage and Transportation reported first-quarter fiscal 2023 NFE of $6.2 million, compared with NFE of $3.0 million during the same period in fiscal 2022. The increase was due primarily to increased operating revenue at Leaf River and Adelphia Gateway, partially offset by increased depreciation expenses.

Energy Services

Energy Services reported first-quarter fiscal 2023 NFE of $52.5 million, compared with NFE of $17.6 million during the same period in fiscal 2022. The improvement for the first quarter of fiscal 2023 compared to the prior year period was due primarily to higher natural gas price volatility during periods of colder than expected weather in December, allowing Energy Services to capture additional margin.

Home Services and Other Operations

Home Services and Other Operations reported first-quarter fiscal 2023 net financial loss of $(0.03) million compared with NFE of $0.4 million for the same period in fiscal 2022.

Capital Expenditures and Cash Flows:

NJR is committed to maintaining a strong financial profile.

  • During the first-quarter of fiscal 2023, capital expenditures were $137.0 million, including accruals, of which $80.7 million were related to NJNG, compared with $152.7 million, of which $59.7 million were related to NJNG, during the same period in fiscal 2022. The decrease in capital expenditures was primarily due to the completion of the Adelphia Gateway Pipeline project, which was placed into service in September 2022.
  • During the first-quarter of fiscal 2023, cash flows used in operations were $88.9 million, compared with cash flows used in operations of $37.4 million during the same period of fiscal 2022. The decrease in operating cash flows was due to higher working capital requirements as a result of higher energy prices.

Forward-Looking Statements:

This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this earnings release include, but are not limited to, certain statements regarding NJR’s NFEPS guidance for fiscal 2023, projected NFEPS growth rates, forecasted contribution of business segments to NJR’s NFE for fiscal 2023, customer growth at NJNG, potential CEV capital projects, infrastructure programs and investments future decarbonization opportunities including IIP, the outcome of future Base Rate Cases with the BPU, and other legal and regulatory expectations.

Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with the SEC, including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov. Information included in this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR's results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

Non-GAAP Financial Information:

This earnings release includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin and utility gross margin. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR’s operating performance, these measures should not be considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.

NFE and financial margin exclude unrealized gains or losses on derivative instruments related to NJR’s unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at Energy Services and certain transactions related to NJR's investments in the PennEast Project, net of applicable tax adjustments as described below. Financial margin also differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization as well as the effects of derivatives as discussed above. Volatility associated with the change in value of these financial instruments and physical commodity reported on the income statement in the current period. In order to manage its business, NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these financial instruments and physical commodity contracts prior to the completion of the planned transaction because it shows changes in value currently instead of when the planned transaction ultimately is settled. An annual estimated effective tax rate is calculated for NFE purposes and any necessary quarterly tax adjustment is applied to NJR Energy Services Company.

NJNG’s utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expense. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility gross margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Management believes that utility gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and passed through to customers and, therefore, have no effect on utility gross margin.

Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of NJR’s performance. Management believes these non-GAAP financial measures are more reflective of NJR’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. For a full discussion of NJR’s non-GAAP financial measures, please see NJR’s most recent Report on Form 10-K, Item 7.

About New Jersey Resources

New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:

  • New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains over 7,700 miles of natural gas transportation and distribution infrastructure to serve over 570,000 customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex, Sussex and Burlington counties.
  • Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of more than 430 megawatts, providing residential and commercial customers with low-carbon solutions.
  • Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America.
  • Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway Pipeline, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility.
  • Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey.

NJR and its over 1,200 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as The SAVEGREEN Project® and The Sunlight Advantage®.

For more information about NJR: www.njresources.com.

Follow us on Twitter @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.

NEW JERSEY RESOURCES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

 

December 31,

(Thousands, except per share data)

 

2022

 

2021

OPERATING REVENUES

 

 

 

 

Utility

 

$

357,409

 

$

274,435

Nonutility

 

 

366,158

 

 

401,407

Total operating revenues

 

 

723,567

 

 

675,842

OPERATING EXPENSES

 

 

 

 

Gas purchases

 

 

 

 

Utility

 

 

182,446

 

 

122,269

Nonutility

 

 

232,070

 

 

278,794

Related parties

 

 

1,827

 

 

1,846

Operation and maintenance

 

 

79,501

 

 

68,984

Regulatory rider expenses

 

 

18,251

 

 

16,671

Depreciation and amortization

 

 

36,683

 

 

30,393

Total operating expenses

 

 

550,778

 

 

518,957

OPERATING INCOME

 

 

172,789

 

 

156,885

Other income, net

 

 

4,655

 

 

4,136

Interest expense, net of capitalized interest

 

 

29,491

 

 

19,477

INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES

 

 

147,953

 

 

141,544

Income tax provision

 

 

32,978

 

 

30,807

Equity in earnings of affiliates

 

 

946

 

 

575

NET INCOME

 

$

115,921

 

$

111,312

 

 

 

 

 

EARNINGS PER COMMON SHARE

 

 

 

 

Basic

 

$

1.20

 

$

1.16

Diluted

 

$

1.19

 

$

1.16

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

Basic

 

 

96,485

 

 

95,944

Diluted

 

 

97,083

 

 

96,356

 

 

 

 

 

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES

(Unaudited)

 

 

Three Months Ended

 

 

December 31,

(Thousands)

 

2022

 

2021

NEW JERSEY RESOURCES

 

 

 

 

 

A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:

 

 

 

 

 

Net income

 

$

115,921

 

 

$

111,312

 

Add:

 

 

 

 

Unrealized (gain) on derivative instruments and related transactions

 

 

(31,503

)

 

 

(82,191

)

Tax effect

 

 

7,487

 

 

 

19,536

 

Effects of economic hedging related to natural gas inventory

 

 

23,972

 

 

 

23,577

 

Tax effect

 

 

(5,697

)

 

 

(5,603

)

NFE tax adjustment

 

 

104

 

 

 

(861

)

Net financial earnings

 

$

110,284

 

 

$

65,770

 

 

 

 

 

 

Weighted Average Shares Outstanding

 

 

 

 

Basic

 

 

96,485

 

 

 

95,944

 

Diluted

 

 

97,083

 

 

 

96,356

 

 

 

 

 

 

A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as follows:

 

 

 

 

 

Basic earnings per share

 

$

1.20

 

 

$

1.16

 

Add:

 

 

 

 

Unrealized (gain) on derivative instruments and related transactions

 

$

(0.33

)

 

$

(0.86

)

Tax effect

 

$

0.08

 

 

$

0.21

 

Effects of economic hedging related to natural gas inventory

 

$

0.25

 

 

$

0.25

 

Tax effect

 

$

(0.06

)

 

$

(0.06

)

NFE tax adjustment

 

$

 

 

$

(0.01

)

Basic NFE per share

 

$

1.14

 

 

$

0.69

 

 

 

 

 

 

NATURAL GAS DISTRIBUTION

 

 

 

 

 

 

 

 

 

A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:

 

 

 

 

 

Operating revenues

 

$

357,746

 

 

$

274,772

 

Less:

 

 

 

 

Natural gas purchases

 

 

184,771

 

 

 

124,594

 

Operating and maintenance (1)

 

 

26,294

 

 

 

13,141

 

Regulatory rider expense

 

 

18,251

 

 

 

16,671

 

Depreciation and amortization

 

 

24,890

 

 

 

22,893

 

Gross margin

 

 

103,540

 

 

 

97,473

 

Add:

 

 

 

 

Operating and maintenance (1)

 

 

26,294

 

 

 

13,141

 

Depreciation and amortization

 

 

24,890

 

 

 

22,893

 

Utility gross margin

 

$

154,724

 

 

$

133,507

 

(1) Excludes selling, general and administrative expenses of approximately $23.4 million and $23.3 million for the three months ended December 31, 2022 and 2021, respectively

 

 

 

 

 

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)

(Unaudited)

 

 

Three Months Ended

(Unaudited)

 

December 31,

(Thousands)

 

2022

 

2021

ENERGY SERVICES

 

 

 

 

 

 

 

 

 

A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:

 

 

 

 

 

Operating revenues

 

$

321,782

 

 

$

369,244

 

Less:

 

 

 

 

Natural Gas purchases

 

 

233,287

 

 

 

278,687

 

Operation and maintenance (1)

 

 

3,455

 

 

 

(13,871

)

Depreciation and amortization

 

 

57

 

 

 

28

 

Gross margin

 

 

84,983

 

 

 

104,400

 

Add:

 

 

 

 

Operation and maintenance (1)

 

 

3,455

 

 

 

(13,871

)

Depreciation and amortization

 

 

57

 

 

 

28

 

Unrealized (gain) on derivative instruments and related transactions

 

 

(39,886

)

 

 

(85,647

)

Effects of economic hedging related to natural gas inventory

 

 

23,972

 

 

 

23,577

 

Financial margin

 

$

72,581

 

 

$

28,487

 

(1) Excludes selling, general and administrative expenses of approximately $(2.3) million and $17.6 million for the three months ended December 31, 2022 and 2021, respectively.

 

 

 

 

 

A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:

 

 

 

 

 

Net income

 

$

64,561

 

 

$

65,744

 

Add:

 

 

 

 

Unrealized (gain) on derivative instruments and related transactions

 

 

(39,886

)

 

 

(85,647

)

Tax effect

 

 

9,479

 

 

 

20,357

 

Effects of economic hedging related to natural gas

 

 

23,972

 

 

 

23,577

 

Tax effect

 

 

(5,697

)

 

 

(5,603

)

NFE tax adjustment

 

 

104

 

 

 

(861

)

Net financial earnings

 

$

52,533

 

 

$

17,567

 

 

 

 

 

 

FINANCIAL STATISTICS BY BUSINESS UNIT

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

 

December 31,

(Thousands, except per share data)

 

2022

 

2021

NEW JERSEY RESOURCES

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 

 

 

Natural Gas Distribution

 

$

357,746

 

 

$

274,772

 

Clean Energy Ventures

 

 

12,792

 

 

 

10,183

 

Energy Services

 

 

321,782

 

 

 

369,244

 

Storage and Transportation

 

 

26,838

 

 

 

12,143

 

Home Services and Other

 

 

14,266

 

 

 

13,951

 

Sub-total

 

 

733,424

 

 

 

680,293

 

Eliminations

 

 

(9,857

)

 

 

(4,451

)

Total

 

$

723,567

 

 

$

675,842

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

Natural Gas Distribution

 

$

80,113

 

 

$

74,183

 

Clean Energy Ventures

 

 

(321

)

 

 

(3,972

)

Energy Services

 

 

87,315

 

 

 

86,778

 

Storage and Transportation

 

 

12,617

 

 

 

1,876

 

Home Services and Other

 

 

51

 

 

 

862

 

Sub-total

 

 

179,775

 

 

 

159,727

 

Eliminations

 

 

(6,986

)

 

 

(2,842

)

Total

 

$

172,789

 

 

$

156,885

 

 

 

 

 

 

 

 

 

 

 

Equity in Earnings of Affiliates

 

 

 

 

Storage and Transportation

 

$

909

 

 

$

1,056

 

Eliminations

 

 

37

 

 

 

(481

)

Total

 

$

946

 

 

$

575

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 

 

 

Natural Gas Distribution

 

$

54,664

 

 

$

51,080

 

Clean Energy Ventures

 

 

(3,582

)

 

 

(6,821

)

Energy Services

 

 

64,561

 

 

 

65,744

 

Storage and Transportation

 

 

6,243

 

 

 

2,962

 

Home Services and Other

 

 

(29

)

 

 

447

 

Sub-total

 

 

121,857

 

 

 

113,412

 

Eliminations

 

 

(5,936

)

 

 

(2,100

)

Total

 

$

115,921

 

 

$

111,312

 

 

 

 

 

 

 

 

 

 

 

Net Financial Earnings (Loss)

 

 

 

 

Natural Gas Distribution

 

$

54,664

 

 

$

51,080

 

Clean Energy Ventures

 

 

(3,582

)

 

 

(6,821

)

Energy Services

 

 

52,533

 

 

 

17,567

 

Storage and Transportation

 

 

6,243

 

 

 

2,962

 

Home Services and Other

 

 

(29

)

 

 

447

 

Sub-total

 

 

109,829

 

 

 

65,235

 

Eliminations

 

 

455

 

 

 

535

 

Total

 

$

110,284

 

 

$

65,770

 

 

 

 

 

 

 

 

 

 

 

Throughput (Bcf)

 

 

 

 

NJNG, Core Customers

 

 

25.0

 

 

 

24.6

 

NJNG, Off System/Capacity Management

 

 

17.9

 

 

 

25.1

 

Energy Services Fuel Mgmt. and Wholesale Sales

 

 

44.2

 

 

 

63.5

 

Total

 

 

87.1

 

 

 

113.2

 

 

 

 

 

 

 

 

 

 

 

Common Stock Data

 

 

 

 

Yield at December 31,

 

 

3.1

%

 

 

3.5

%

Market Price at December 31,

 

$

49.62

 

 

$

41.06

 

Shares Out. at December 31,

 

 

96,803

 

 

 

95,962

 

Market Cap. at December 31,

 

$

4,803,389

 

 

$

3,940,188

 

 

 

 

 

 


Contacts

Media:
Mike Kinney
732-938-1031
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Investor:
Adam Prior
732-938-1145
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LOWELL, Ark.--(BUSINESS WIRE)--J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) Executive Vice President and President of Intermodal Darren Field, and Executive Vice President of People and President of Highway Services Brad Hicks will address the 2023 Evercore ISI Travel & Transport Conference at 11:45 a.m. eastern time on Wednesday, February 8, 2023. Investors may access the live presentation by visiting the Newsroom section of our website at www.jbhunt.com/our-company/newsroom. A presentation replay will also be made available on J.B. Hunt’s website following the event.


Information presented at the conference may contain forward-looking statements made by the company that involve risks, assumptions, and uncertainties difficult to predict. Actual results may differ materially from those currently anticipated due to a number of factors, including, but not limited to, those discussed in Item 1A of our Annual Report filed on Form 10-K for the year ended December 31, 2021. J.B. Hunt assumes no obligation to update any forward-looking statements to the extent the company becomes aware they will not be achieved for any reason.

Interested parties may view this press release on the company’s website.

About J.B. Hunt

J.B. Hunt Transport Services, Inc., a Fortune 500 and S&P 500 company, provides innovative supply chain solutions for a variety of customers throughout North America. Utilizing an integrated, multimodal approach, the company applies technology-driven methods to create the best solution for each customer, adding efficiency, flexibility, and value to their operations. J.B. Hunt services include intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, last mile, and more. J.B. Hunt Transport Services, Inc. stock trades on NASDAQ under the ticker symbol JBHT and is a component of the Dow Jones Transportation Average. J.B. Hunt Transport, Inc. is a wholly owned subsidiary of JBHT. For more information, visit www.jbhunt.com.


Contacts

Brad Delco
Sr. Vice President – Finance
(479) 820-2723

HOUSTON--(BUSINESS WIRE)--ConocoPhillips (NYSE: COP) today reported fourth-quarter 2022 earnings of $3.2 billion, or $2.61 per share, compared with fourth-quarter 2021 earnings of $2.6 billion, or $1.98 per share. Excluding special items, fourth-quarter 2022 adjusted earnings were $3.4 billion, or $2.71 per share, compared with fourth-quarter 2021 adjusted earnings of $3.0 billion, or $2.27 per share. Special items for the current quarter were primarily driven by impairment of certain aged, suspended wells and corporate expenses.


Full-year 2022 earnings were $18.7 billion, or $14.57 per share, compared with full-year 2021 earnings of $8.1 billion, or $6.07 per share. Excluding special items, full-year 2022 adjusted earnings were $17.3 billion, or $13.52 per share, compared with full-year 2021 earnings of $8.0 billion, or $6.01 per share.

“In 2022, ConocoPhillips marked 10 years as an independent E&P company with strong financial and operational results across our business, thanks to the hard work and dedication of our talented workforce. We returned $15 billion of capital to shareholders and achieved record production in our Lower 48 assets, while adding new high-quality strategic projects to enhance our global portfolio for decades to come. Building on 60 years of global LNG expertise, we expanded our LNG business in Australia, Germany, Qatar and along the U.S. Gulf Coast. We also set a new methane emissions intensity target in support of our continuing focus on low GHG production,” said Ryan Lance, ConocoPhillips chairman and chief executive officer. “As we enter our second decade, we remain committed to our Triple Mandate of responsibly and reliably meeting energy transition pathway demand, delivering competitive returns on and of capital, and achieving our net-zero operational emissions ambitions. Our deep and diversified portfolio of low cost-of-supply assets continues to generate robust cash flow, enabling us to start the year with an $11 billion return of capital target.”

Full-Year 2022 Summary

  • Generated cash provided by operating activities of $28.3 billion and cash from operations (CFO) of $28.5 billion; ended the year with cash and short-term investments of $9.5 billion.
  • Distributed $15 billion to shareholders through three-tier framework including $5.7 billion in cash through the ordinary dividend and variable return of cash (VROC) and $9.3 billion through share repurchases, representing 53% of CFO.
  • Expanded global LNG business through participation in QatarEnergy’s North Field East (NFE) and North Field South (NFS) projects; executed 15-year regasification agreement at German LNG Terminal; acquired additional 10% interest in APLNG; signed 20-year agreement for 5 MTPA of LNG offtake and executed agreement to purchase 30% equity stake in Phase 1 of Port Arthur LNG (PALNG).
  • Delivered full-year production of 1,738 thousand barrels of oil equivalent per day (MBOED) and record Lower 48 production.
  • Fully integrated acquired Permian assets and executed multiple acreage swaps, coring up approximately 25,000 acres since acquisition to provide over a year’s worth of additional two mile-plus long-lateral drilling inventory.
  • Received license extension for Norway’s Greater Ekofisk area to 2048 and license adjustments for China’s Bohai Penglai Fields to 2039.
  • Generated $3.5 billion in disposition proceeds through monetization of the company’s Cenovus Energy (CVE) shares and noncore asset sales.
  • Retired $3.3 billion in debt toward the company’s $5 billion debt reduction target.
  • Achieved a record 27% return on capital employed; 31% cash-adjusted return on capital employed.
  • Joined Oil and Gas Methane Partnership 2.0, published a Plan for the Net-Zero Energy Transition and set a new 2030 methane emissions intensity target of approximately 0.15% of gas produced, enhancing our commitment to ESG excellence and leadership.

Return of Capital Update

ConocoPhillips announced its 2023 planned return of capital to shareholders of $11 billion. The company declared a quarterly ordinary dividend of $0.51 per share, payable March 1, 2023, to stockholders of record at the close of business on Feb. 14, 2023. In addition, the company announced a VROC of $0.60 per share, payable April 14, 2023, to stockholders of record at the close of business on March 29, 2023.

Fourth-Quarter Review

Production for the fourth quarter of 2022 was 1,758 MBOED, an increase of 150 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions and the conversion of previously acquired Concho-contracted volumes from a two-stream to a three-stream basis, fourth-quarter 2022 production decreased by 3 MBOED or 0.2% from the same period a year ago. Organic growth from Lower 48 and other development programs more than offset decline; however, total company fourth-quarter production was lower overall, primarily due to weather and downtime impacts in Lower 48.

In Lower 48, production averaged 997 MBOED, including Permian of 671 MBOED, Eagle Ford of 214 MBOED, and Bakken of 96 MBOED. In Canada, drilling and completion activities continued at Montney with the fourth pad coming online during the quarter while construction progressed on the second phase of the company’s central processing facility. In Norway, the company progressed drilling programs on the Tommeliten A and Eldfisk North projects. In Libya, the company acquired an additional 4.1% interest in the Waha Concession, bringing current ownership to 20.4%.

Earnings increased from fourth-quarter 2021 primarily due to higher volumes and improved realized prices, in addition to the absence of both 2021 non-cash impairments and gains on CVE equity. This was partially offset by higher operating costs and depreciation, depletion and amortization (DD&A) associated with higher volumes, in addition to commercial and inventory timing and impairment of certain aged, suspended wells. Adjusted earnings increased primarily due to higher volumes and improved realized prices, partially offset by higher operating costs and DD&A associated with higher volumes, and commercial and inventory timing.

The company’s total average realized price was $71.05 per barrel of oil equivalent (BOE), 8% higher than the $65.56 per BOE realized in the fourth quarter of 2021. Production remains unhedged, thus realizing the full impact of changes in marker prices.

For the fourth quarter, cash provided by operating activities was $6.6 billion. Excluding a $0.1 billion change in operating working capital, ConocoPhillips generated CFO of $6.5 billion. The company funded $2.5 billion of capital expenditures and investments, including $2.2 billion in base capital and approximately $0.3 billion for acquisitions and NFE payments. The company distributed $2.4 billion in ordinary dividends and VROC and repurchased $2.7 billion of shares.

Full-Year Review

Production for 2022 was 1,738 MBOED, an increase of 171 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, the conversion of previously acquired Concho-contracted volumes from a two-stream to a three-stream basis and 2021 Winter Storm Uri impacts, production decreased 16 MBOED or 1% from the same period a year ago. Organic growth from Lower 48 and other development programs more than offset decline; however, production was lower overall, primarily due to fourth quarter weather impacts and downtime in Lower 48.

The company’s total realized price for 2022 was $79.82 per BOE, 46% higher than the $54.63 per BOE realized in 2021, reflecting higher marker prices.

In 2022, cash provided by operating activities was $28.3 billion. Excluding a $0.2 billion change in operating working capital, ConocoPhillips generated CFO of $28.5 billion. Dispositions generated $3.5 billion, including $1.4 billion from the sale of CVE shares, $0.5 billion for CVE contingency payments, $0.7 billion from the sale of Indonesia and approximately $0.8 billion from sales of noncore assets. The company funded $10.2 billion of capital expenditures and investments, including $8.1 billion in base capital and approximately $2.1 billion which includes the acquisition of an additional 10% interest in APLNG, Lower 48 bolt-on acquisitions and NFE payments. In addition, the company paid $5.7 billion in ordinary dividends and VROC, repurchased $9.3 billion of shares and retired $3.3 billion in debt.

Reserves Update

Preliminary 2022 year-end proved reserves are 6.6 billion BOE, with total reserve replacement ratio of 176%, including closed acquisitions and dispositions and market factors. Reserve changes excluding closed acquisitions and dispositions result in an organic reserve replacement ratio of 177%.

Final information related to the company’s 2022 oil and gas reserves, will be provided in ConocoPhillips’ Annual Report on Form 10-K, to be filed with the SEC in February.

Outlook

The company’s 2023 total capital expenditure guidance is $10.7 to $11.3 billion, which includes $9.1 to $9.3 billion for base capital and $1.6 to $2.0 billion for anticipated major project spending at NFE, NFS, PALNG and Willow. Base capital includes funding for ongoing development drilling programs; exploration and appraisal activities; base maintenance; and projects to reduce the company’s Scope 1 and 2 emissions intensity and fund investments in several early-stage low-carbon opportunities that address end-use emissions.

The company has received and is now reviewing the Bureau of Land Management’s final Supplemental Environmental Impact Statement for Willow Project, a major milestone in the permitting process that commenced in 2018.

The company’s 2023 production guidance is 1.76 to 1.80 million barrels of oil equivalent per day (MMBOED). First-quarter 2023 production is expected to be 1.72 MMBOED to 1.76 MMBOED, which includes 35 MBOED of turnaround and stabilizer expansion in Eagle Ford.

Guidance for 2023 includes adjusted operating cost of $8.2 billion; adjusted corporate segment net loss of $0.9 billion and DD&A of $8.1 billion. Guidance excludes potential special items.

ConocoPhillips will host a conference call today at 12:00 p.m. Eastern Time to discuss this announcement. To listen to the call and view related presentation materials and supplemental information, go to www.conocophillips.com/investor.

--- # # # ---

About ConocoPhillips

ConocoPhillips is one of the world’s leading exploration and production companies based on both production and reserves, with a globally diversified asset portfolio. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 13 countries, $94 billion of total assets and approximately 9,500 employees at Dec. 31, 2022. Production averaged 1,738 MBOED for the 12 months ended Dec. 31, 2022, and preliminary proved reserves were 6.6 BBOE as of Dec. 31, 2022. For more information, go to www.conocophillips.com.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events, plans and anticipated results of operations, business strategies, and other aspects of our operations or operating results. Words and phrases such as “anticipate," “estimate,” “believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict," “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include the impact of public health crises, including pandemics (such as COVID-19) and epidemics and any related company or government policies or actions; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes resulting from any ongoing military conflict, including the conflict between Russia and Ukraine and the global response to it, security threats on facilities and infrastructure, or from a public health crisis or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries and the resulting company or third-party actions in response to such changes; changes in commodity prices, including a prolonged decline in these prices relative to historical or future expected levels; insufficient liquidity or other factors, such as those listed herein, that could impact our ability to repurchase shares and declare and pay dividends such that we suspend our share repurchase program and reduce, suspend, or totally eliminate dividend payments in the future, whether variable or fixed; changes in expected levels of oil and gas reserves or production; potential failures or delays in achieving expected reserve or production levels from existing and future oil and gas developments, including due to operating hazards, drilling risks or unsuccessful exploratory activities; unexpected cost increases, inflationary pressures or technical difficulties in constructing, maintaining or modifying company facilities; legislative and regulatory initiatives addressing global climate change or other environmental concerns; investment in and development of competing or alternative energy sources; disruptions or interruptions impacting the transportation for our oil and gas production; international monetary conditions and exchange rate fluctuations; changes in international trade relationships, including the imposition of trade restrictions or tariffs on any materials or products (such as aluminum and steel) used in the operation of our business, including any sanctions imposed as a result of any ongoing military conflict, including the conflict between Russia and Ukraine; our ability to collect payments when due under our settlement agreement with PDVSA; our ability to collect payments from the government of Venezuela as ordered by the ICSID; our ability to complete any announced or any future dispositions or acquisitions on time, if at all; the possibility that regulatory approvals for any announced or any future dispositions or acquisitions will not be received on a timely basis, if at all, or that such approvals may require modification to the terms of the transactions or our remaining business; business disruptions following any announced or any future dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced or any future dispositions in the manner and timeframe we anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation, including litigation related directly or indirectly to our transaction with Concho Resources Inc.; the impact of competition and consolidation in the oil and gas industry; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions or developments, including as a result of any ongoing military conflict, including the conflict between Russia and Ukraine; changes in fiscal regime or tax, environmental and other laws applicable to our business; and disruptions resulting from accidents, extraordinary weather events, civil unrest, political events, war, terrorism, cyber attacks or information technology failures, constraints or disruptions; and other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We may use the term “resource” in this news release that the SEC’s guidelines prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures in our Form 10-K and other reports and filings with the SEC. Copies are available from the SEC and from the ConocoPhillips website.

Use of Non-GAAP Financial Information To supplement the presentation of the company’s financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), this news release and the accompanying supplemental financial information contain certain financial measures that are not prepared in accordance with GAAP, including adjusted earnings (calculated on a consolidated and on a segment-level basis), adjusted earnings per share, operating costs, adjusted operating costs, cash from operations (CFO), return on capital employed (ROCE), cash adjusted ROCE, and adjusted corporate segment net loss.

The company believes that the non-GAAP measures adjusted earnings (both on an aggregate and a per-share basis), adjusted operating costs and adjusted corporate segment net loss are useful to investors to help facilitate comparisons of the company’s operating performance associated with the company’s core business operations across periods on a consistent basis and with the performance and cost structures of peer companies by excluding items that do not directly relate to the company’s core business operations. Adjusted operating costs is defined as the sum of production and operating expenses, selling, general and administrative expenses, exploration general and administrative expenses, geological and geophysical, lease rentals and other exploration expenses, adjusted to exclude expenses that do not directly relate to the company’s core business operations and are included as adjustments to arrive at adjusted earnings to the extent those adjustments impact operating costs. Adjusted corporate segment net loss is defined as corporate and other segment earnings adjusted for special items. The company further believes that the non-GAAP measure CFO is useful to investors to help understand changes in cash provided by operating activities excluding the timing effects associated with operating working capital changes across periods on a consistent basis and with the performance of peer companies. The company believes that ROCE is a good indicator of long-term company and management performance. ROCE is a measure of the profitability of ConocoPhillips' capital employed in its business. ConocoPhillips calculates ROCE as a ratio, the numerator of which is net income adjusted for special non-reoccurring items, plus after-tax interest expense, and the denominator of which is average total equity plus total debt. The company believes that the above-mentioned non-GAAP measures, when viewed in combination with the company’s results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the company’s business and performance. The company’s Board of Directors and management also use these non-GAAP measures to analyze the company’s operating performance across periods when overseeing and managing the company’s business.

Each of the non-GAAP measures included in this news release and the accompanying supplemental financial information has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the company’s presentation of non-GAAP measures in this news release and the accompanying supplemental financial information may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. The company may also change the calculation of any of the non-GAAP measures included in this news release and the accompanying supplemental financial information from time to time in light of its then existing operations to include other adjustments that may impact its operations.

Reconciliations of each non-GAAP measure presented in this news release to the most directly comparable financial measure calculated in accordance with GAAP are included in the release.

Other Terms This news release also contains the term pro forma underlying production, reserve replacement and organic reserve replacement. Pro forma underlying production reflects the impact of closed acquisitions and closed dispositions as of December 31, 2022. The impact of closed dispositions assume they closed January 1, 2021, while the 2021 impact of the closed Shell Permian acquisition and the additional 10% APLNG interest acquisition assume they closed January 1, 2021 and February 1, 2021, respectively. Impacts for 2021 and 2022 also include a closed Lower 48 bolt-on acquisition and Libya additional working interest percentage assuming a close date of January 1, 2021. The company believes that underlying production is useful to investors to compare production reflecting the impact of closed acquisitions and dispositions on a consistent go-forward basis across periods and with peer companies. Reserve replacement is defined by the company as a ratio representing the change in proved reserves, net of production, divided by current year production. Organic reserve replacement is defined as a ratio representing the change in proved reserves, net of production and excluding acquisitions and dispositions, divided by current year production. The company believes that reserve replacement and organic reserve replacement are useful to investors to help understand how changes in proved reserves, net of production, compare with the company’s current year production, inclusive and exclusive of acquisitions and dispositions, respectively. Return of capital is defined as the total of the ordinary dividend, share repurchases and variable return of cash (VROC).

References in the release to earnings refer to net income.

 
ConocoPhillips
Table 1: Reconciliation of earnings to adjusted earnings
$ Millions, Except as Indicated
 

4Q22

4Q21

2022 FY

2021 FY

Pre-tax Income tax After-tax Per share of common stock (dollars) Pre-tax Income tax After-tax Per share of common stock (dollars) Pre-tax Income tax After-tax Per share of common stock (dollars) Pre-tax Income tax After-tax Per share of common stock (dollars)
Earnings

$

3,249

 

 

2.61

 

2,627

 

1.98

 

$

18,680

 

 

14.57

 

8,079

 

6.07

 

Adjustments:
(Gain) loss on asset sales

(21

)

5

 

 

(16

)

 

(0.01

)

(126

)

29

 

(97

)

(0.07

)

(968

)

200

 

 

(768

)

 

(0.59

)

(347

)

32

 

(315

)

(0.24

)

Pending claims and settlements

87

 

(21

)

 

66

 

 

0.05

 

-

 

-

 

-

 

-

 

67

 

8

 

 

75

 

 

0.06

 

48

 

(10

)

38

 

0.03

 

Pension settlement expense

-

 

-

 

 

-

 

 

-

 

29

 

(6

)

23

 

0.02

 

-

 

-

 

 

-

 

 

-

 

99

 

(20

)

79

 

0.06

 

Transaction and restructuring expenses

-

 

-

 

 

-

 

 

-

 

69

 

(16

)

53

 

0.04

 

28

 

(8

)

 

20

 

 

0.01

 

435

 

(94

)

341

 

0.26

 

Impairments

-

 

-

 

 

-

 

 

-

 

773

 

(20

)

753

 

0.56

 

-

 

-

 

 

-

 

 

-

 

684

 

1

 

685

 

0.51

 

(Gain) loss on CVE shares

-

 

-

 

 

-

 

 

-

 

(297

)

-

 

(297

)

(0.22

)

(251

)

-

 

 

(251

)

 

(0.19

)

(1,040

)

-

 

(1,040

)

(0.78

)

(Gain) loss on FX derivative

-

 

-

 

 

-

 

 

-

 

(21

)

4

 

(17

)

(0.01

)

10

 

(2

)

 

8

 

 

-

 

(9

)

1

 

(8

)

(0.01

)

Net loss on accelerated settlement of Concho hedging program

-

 

-

 

 

-

 

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

-

 

 

-

 

132

 

(31

)

101

 

0.08

 

(Gain) loss on debt extinguishment and exchange fees

-

 

-

 

 

-

 

 

-

 

-

 

-

 

-

 

-

 

(44

)

52

 

 

8

 

 

-

 

-

 

-

 

-

 

-

 

Tax adjustments

-

 

(23

)

 

(23

)

 

(0.02

)

-

 

(35

)

(35

)

(0.03

)

-

 

(531

)

 

(531

)

 

(0.42

)

-

 

40

 

40

 

0.03

 

Exploration Expenses

129

 

(30

)

 

99

 

 

0.08

 

-

 

-

 

-

 

129

 

(30

)

 

99

 

 

0.08

 

-

 

-

 

-

 

-

 

Adjusted earnings / (loss)

$

3,375

 

$

2.71

 

3,010

 

2.27

 

$

17,340

 

$

13.52

 

8,000

 

6.01

 

The income tax effects of the special items are primarily calculated based on the statutory rate of the jurisdiction in which the discrete item resides.

Contacts

Dennis Nuss (media)
281-293-1149
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Investor Relations
281-293-5000
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Report Recognizes Itron’s Ability to Execute and Completeness of Vision

LIBERTY LAKE, Wash.--(BUSINESS WIRE)--#Gartner--Itron, Inc. (NASDAQ: ITRI), which is innovating the way utilities and cities manage energy and water, announced that it has been named a Visionary in the 2023 Gartner Magic Quadrant for Managed IoT Connectivity Services, Worldwide1. According to Gartner, “the Managed IoT connectivity service market enables connectivity, data collection, and analysis and additional decision services that are necessary for connected solutions.”


“We are delighted to be named as a Visionary by Gartner and to be recognized for our ‘Ability to Execute’ and ‘Completeness of Vision’,” said Don Reeves, senior vice president of Outcomes at Itron. “As more renewables come onto the grid and water scarcity and conservation priorities impact regions across the globe, utilities need a scalable approach. With more than 86 million endpoints under management by Itron, we are committed to using our flexible platform to match the right communications technology to optimize performance, security and cost for our customers – supporting the use cases they care about most.”

Intelligent connectivity enables the digital transformation of critical energy, water and city services. Itron's globally proven, multi-purpose network platform securely connects millions of Industrial IoT (IIoT) devices around the world. With IIoT platforms suited for any combination of water, electricity and gas solutions, cities, utilities and critical infrastructure operators rely on Itron to help them deliver safer, more efficient, reliable and resilient services. Itron uses the best in-class communication technologies such as RF mesh, LTE, Private-LTE, fiber and more to deliver industry-leading performance with unmatched reliability. A futureproof and standards-based platform enables seamless coordination across a diverse ecosystem of IIoT industry partner solutions, enabling new services that provide lasting value to consumers.

To download the complete report, visit itron.com/IoTMQ.

_______________

1 Gartner, Magic Quadrant for Managed IoT Connectivity Services, Worldwide, Pablo Arriandiaga, Eric Goodness, Leif-Olof Wallin, Kameron Chao, 31 January 2023

 

GARTNER is a registered trademark and service mark of Gartner and Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

 

Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Itron

Itron enables utilities and cities to safely, securely and reliably deliver critical infrastructure solutions to communities in more than 100 countries. Our portfolio of smart networks, software, services, meters and sensors helps our customers better manage electricity, gas and water resources for the people they serve. By working with our customers to ensure their success, we help improve the quality of life, ensure the safety and promote the well-being of millions of people around the globe. Itron is dedicated to creating a more resourceful world. Join us: www.itron.com.

Itron® is a registered trademark of Itron, Inc. All third-party trademarks are property of their respective owners and any usage herein does not suggest or imply any relationship between Itron and the third party unless expressly stated.


Contacts

Itron, Inc.
Alex Morin
Corporate Communications Associate
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NEW YORK & LONDON--(BUSINESS WIRE)--Veritas Capital (“Veritas”), a leading investor at the intersection of technology and government, today announced that an affiliate of Veritas has completed the purchase of Wood Mackenzie from Verisk (Nasdaq: VRSK).

Wood Mackenzie is a globally recognized industry leader that has been providing quality data, analytics, and insights used to power the energy, renewables, and natural resources industry for nearly 50 years. The Wood Mackenzie Lens© platform enables world class analytics and insights to drive critical decision making for the company’s longstanding clients that operate at the leading edge of the rapidly evolving energy sector. Wood Mackenzie operates at the nexus of current energy industry tailwinds, offering clients leading energy data and analytics with the bold purpose of transforming the way the planet is powered. The acquired company will be led by Mark Brinin, who has been promoted from Co-President to Chief Executive Officer. Joe Levesque has been appointed as President & Chief Operating Officer.

Mark Brinin, Chief Executive Officer for Wood Mackenzie said, “We are excited to embark on the next chapter for Wood Mackenzie in partnership with Veritas. To be returning to our roots as a standalone company and partnering with a firm with Veritas’ track record places us in a unique and enviable peer group. In Veritas, we have found a strategic partner that will enable us to realise greater value for our customers, both in mature markets we have served for the last five decades, as well as in the evolving power and renewables sector which is currently driving the global energy transition.”

Veritas brings deep sector knowledge and operational expertise to Wood Mackenzie. As a premier investor in technology and technology-enabled companies that provide critical products, software, and services to government and commercial customers worldwide, Veritas will assist Wood Mackenzie as it continues to play a critical role in accelerating the global transition to a more sustainable future.

“We are excited to welcome Wood Mackenzie to the Veritas portfolio and partner with the team to drive its next phase of growth,” said Ramzi Musallam, Chief Executive Officer and Managing Partner of Veritas. “Building on its decades of leadership and innovation in the energy industry, Wood Mackenzie is well positioned to expand and enhance the critical insights provided to its growing customer base across the entire energy and renewables value chain.”

Morgan Stanley acted as financial advisors and Davis Polk & Wardwell LLP served as legal counsel to Verisk in connection with the transaction. Gibson, Dunn & Crutcher LLP served as legal counsel to Veritas.

About Veritas Capital
Veritas is a longstanding technology investor with over $40 billion of assets under management and a focus on companies operating at the intersection of technology and government. The firm invests in companies that provide critical products, software, and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means.

Leveraging technology to make a positive impact across vitally important areas, such as healthcare, education, and national security, is core to the firm. Veritas is a proud steward of national assets, improving the quality of healthcare while reducing cost, advancing our educational system, and protecting our nation and allies. For more information, visit www.veritascapital.com.

About Wood Mackenzie
Wood Mackenzie is a trusted source of commercial intelligence for the world's natural resources sector. We empower customers to make better strategic decisions, providing objective analysis and advice on assets, companies and markets. For more information, visit: www.woodmac.com or follow us on Twitter @WoodMackenzie.

WOOD MACKENZIE is a trademark of Wood Mackenzie Limited and is the subject of trademark registrations and/or applications in the European Community, the USA, and other countries around the world.


Contacts

MEDIA
For Veritas Capital:
FGS Global
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For Wood Mackenzie:
Sonia Kerr, Director – PR & Internal Communications
+44 330 174 7267
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CENTENNIAL, Colo.--(BUSINESS WIRE)--Vitesse Energy, Inc. (NYSE: VTS) (“Vitesse” or “the Company”) announced today that it plans to issue its year-end 2022 financial and operating results on Monday, February 13, 2023, after market close. Additionally, the Company will host a conference call on Tuesday, February 14, 2023, at 9:00 a.m. Eastern Standard Time. The Company will simultaneously post an updated corporate slide presentation with respect to those results on Vitesse’s website, www.vitesse-vts.com, in the “Investor Relations” section of the site, under “News & Events,” sub-tab “Presentations.”


Those wishing to listen to the conference call may do so via phone or the Company’s webcast.

Conference Call and Webcast Details:

Date: February 14, 2023
Time: 9:00 a.m. Eastern Standard Time
Dial-In: 877-407-0778
International Dial-In: 201-689-8565
Conference ID: 13736198
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=CVEVzRZD

Replay Information:

A replay of the conference call will be available through February 21, 2023, by dialing:
Dial-In: 877-660-6853
International Dial-In: 201-612-7415
Conference ID: 13736198

ABOUT VITESSE ENERGY, INC.

Vitesse Energy, Inc. is focused on returning capital to stockholders through owning financial interests as a non-operator in oil and gas wells drilled by leading US operators.

More information about Vitesse can be found at www.vitesse-vts.com.


Contacts

INVESTOR AND MEDIA CONTACT
Ben Messier, CFA
Director – Investor Relations
(720) 532-8232
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DENVER--(BUSINESS WIRE)--Spruce Power (NYSE: SPRU) (“Spruce” or the “Company”), a leading owner and operator of distributed solar energy assets across the United States, today announced that the New York Stock Exchange (the “NYSE”) notified the Company that it has regained compliance with the NYSE’s continued listing standard for minimum share price.


On October 20, 2022, the NYSE notified Spruce of noncompliance with the NYSE’s continued listing standards because the average closing price of the Company’s common stock was less than $1.00 per share over a period of 30 consecutive trading days. On February 1, 2023, the NYSE confirmed that the Company’s average price for the trailing 30 consecutive trading days ended January 31, 2023, and that day’s final closing price, was above the NYSE’s minimum requirement of $1.00.

Christian Fong, who assumed the role of Chief Executive Officer effective February 1, 2023, in accordance with Spruce’s previously announced CEO transition plan, commented, “Today’s announcement represents another positive step for Spruce entering 2023 as a customer-oriented owner/operator of residential solar power systems. Looking ahead, Spruce is well-positioned and capitalized to execute on its differentiated business model focused on growth through acquisition of existing residential solar energy portfolios.”

About Spruce Power

Spruce Power is a leading owner and operator of distributed solar energy assets across the United States. We provide subscription-based services that make it easy for homeowners and small businesses to own and maintain rooftop solar and battery storage. Our as-a-service model allows consumers to access new technology without making a significant upfront investment or incurring maintenance costs. Our company has more than 51,000 subscribers across the United States. For additional information, please visit www.sprucepower.com.

Forward Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to: expectations regarding the growth of the solar industry, home electrification, electric vehicles and distributed energy resources; the ability to successfully integrate the Spruce Power acquisition; the highly competitive nature of the Company’s business and markets; the ability to execute on and consummate business plans in anticipated time frames; litigation, complaints, warranty claims, product liability claims and/or adverse publicity; results of operations, financial condition, regulatory compliance and customer experience; the potential loss of customers; privacy and data protection laws, privacy or data breaches, or the loss of data; general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; risks related to the rollout of the Company’s business and the timing of expected business milestones, including supply chain and labor shortage challenges in the solar panel markets; the effects of competition on the Company’s future business; the availability of capital; and the other risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 31, 2022, subsequent Quarterly Reports on Form 10-Q and other documents that the Company files with the SEC in the future. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and the Company specifically disclaims any obligation to update these forward-looking statements.


Contacts

Investor Contact: This email address is being protected from spambots. You need JavaScript enabled to view it.
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THE WOODLANDS, Texas--(BUSINESS WIRE)--Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or "the Company") today announced that its E-Infrastructure Solutions segment reported new awards totaling $260 million during the fourth quarter of 2022. Sterling's E-Infrastructure projects include large-scale site development services for warehouses, data centers, e-commerce distribution centers, multi-use facilities and industrial facilities. E-Infrastructure is the Company's fastest-growing segment, continuing to solidify Sterling's leading market position.


Investments in large, next-generation factories for solar and EV battery plants continue as companies expand capacity to keep pace with the accelerated domestic production. The data center ecosystem development rise also continues creating new opportunities in addition to the demand for advanced logistical centers and mixed-use communities.

CEO Remarks
"Our E-Infrastructure Solutions segment saw strong demand in the fourth quarter, demonstrating yet again our leading position in our markets," stated Joe Cutillo, Sterling's CEO. "Speed to market is key for our blue-chip customers, and our ability to timely execute large-scale and complex projects solidifies us as their trusted partner. With these wins, we ended 2022 in a strong position, and we believe the sustainable construction trends will continue throughout 2023.”

About Sterling
Sterling operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and the Rocky Mountain States, and Hawaii, as well as other areas with strategic construction opportunities. E-Infrastructure Solutions projects develop advanced, large-scale site development systems and services for data centers, e-commerce distribution centers, warehousing, transportation, energy and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, light rail, water, wastewater and storm drainage systems. Building Solutions projects include residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs and other concrete work. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society's quality of life. Caring for our people and our communities, our customers and our investors – that is The Sterling Way.

Joe Cutillo, CEO, "We build and service the infrastructure that enables our economy to run,
our people to move and our country to grow."

Important Information for Investors and Stockholders
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that are considered forward-looking statements within the meaning of the federal securities laws. Any such statements are subject to risks and uncertainties, including those risks identified in the Company’s filings with the Securities and Exchange Commission. Accordingly, such statements should be considered in light of these risks. The forward-looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.


Contacts

Company:
Sterling Infrastructure, Inc.
Ron Ballschmiede, Chief Financial Officer
281-214-0777

Investor Relations:
The Equity Group Inc.
Jeremy Hellman, CFA
212-836-9626

Thermo Fisher’s latest net-zero milestone to be achieved through 200-megawatt solar project

WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today announced it will power all of the company’s current U.S. sites with 100 percent renewable electricity by 2026. The company’s new 20-year virtual power purchasing agreement with EDF Renewables includes the full output of the 200-megawatt (MW) Millers Branch Solar project.


The agreement with EDF Renewables will deliver approximately 545,000 MWh of renewable electricity annually from the Millers Branch Solar project in Texas. This project complements Thermo Fisher’s previously announced agreement with Enel North America for the Seven Cowboy wind project. Together, these projects will provide enough renewable power to match all of Thermo Fisher’s current U.S. electricity needs.

“Transitioning away from fossil fuels and adopting renewable energy accelerates our progress toward net-zero carbon emissions by 2050,” said Marc N. Casper, chairman, president and chief executive officer of Thermo Fisher. “Our agreement with EDF Renewables further demonstrates our commitment to addressing climate change and creating a more sustainable world for all—a goal that is deeply rooted in our Mission to enable our customers to make the world healthier, cleaner and safer.”

The impact of the company’s U.S. transition to renewable electricity contributes significantly to Thermo Fisher’s recently announced commitment to raise its 2030 reduction target for Scope 1 and 2 greenhouse gas emissions—from 30% to 50%, based on a 2018 baseline.1 The new 50% reduction target, announced in December 2022, fulfills Thermo Fisher’s commitment to the Business Ambition to 1.5˚C campaign and aligns its climate strategy with the Paris Agreement and its reduction targets with the 1.5˚C pathway.

Thermo Fisher has submitted its climate targets to the Science Based Targets initiative (SBTi) for validation. SBTi establishes standards, guidance, and tools to drive ambitious climate action in the private sector. Thermo Fisher is among the first companies in its sector to submit net-zero climate targets to SBTi.

The Millers Branch Solar project is expected to be operational by December 2025. Thermo Fisher was supported by Sustainability Roundtable Inc.’s Net Zero Consortium for Buyers, a platform committed to helping corporate buyers with global decarbonization strategies and favorable renewable energy transactions.

More information about Thermo Fisher’s environmental, social, and governance progress can be found at www.thermofisher.com/csr.

About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue of more than $40 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.

1 New target is 50.4%. Both targets from a 2018 baseline.


Contacts

Media:
Sandy Pound
781-622-1223
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Investors:
Rafael Tejada
781-622-1356
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SAN JOSE, Calif.--(BUSINESS WIRE)--QuantumScape Corporation (NYSE: QS), a leader in developing next-generation solid-state lithium-metal batteries, today announced it will release 2022 fourth-quarter financial results after market close on Wednesday, February 15, 2023. This will be followed by a conference call at 2 p.m. Pacific Time (5 p.m. Eastern Time). Jagdeep Singh, co-founder and chief executive officer, and Kevin Hettrich, chief financial officer, will participate on the call.


Starting today, February 2, shareholders can submit and upvote questions they would like addressed on the earnings call. QuantumScape management will respond to a selection of the most upvoted questions. Please submit questions on this online Q&A platform. The company will accept questions on the Q&A platform until Tuesday, February 14, at 2 p.m. Pacific Time (5 p.m. Eastern Time).

The earnings call will be accessible live via a webcast on QuantumScape’s IR Events Calendar page. An archive of the webcast will be available shortly after the call for 12 months.

About QuantumScape Corporation

QuantumScape is on a mission to transform energy storage with solid-state lithium-metal battery technology. The company’s next-generation batteries are designed to enable greater energy density, faster charging and enhanced safety to support the transition away from legacy energy sources toward a lower carbon future. For more information, visit www.quantumscape.com.


Contacts

For Investors
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A Cogeneration Power Plant Will Provide Clean, Reliable Electricity and Thermal Energy

LOS ANGELES--(BUSINESS WIRE)--$CGRN #CCHP--Capstone Green Energy Corporation (NASDAQ: CGRN), announced that IBT Group, Capstone’s authorized distributor in Italy, received an order for a C1000 Signature Series microturbine to power a district heating plant for the municipality of Bardonecchia, Italy. The follow-on order is the second for Energetica S.p.A. Group, an energy service company and the plant operator. The microturbine is scheduled to be commissioned in December 2023.


“District heating is an ideal use for Capstone’s microturbines. By combining heat and power production for an area, so many efficiencies are gained compared to distributed and disconnected buildings and boilers. We are always happy when our customers return for a second order because they have first-hand knowledge of the value and reliability of Capstone technology,” said Darren Jamison, President and CEO of Capstone Green Energy.

A natural gas-fueled C1000S microturbine will enable the continuity of electrical energy and heat service for the area’s population and provide increased energy security. In district heating systems, each user’s boiler is removed and they are connected to a single hot water distribution network. This makes it possible to produce heat at higher efficiency levels and with better emissions control. When the heat is produced through a cogeneration plant, the production cycle works more efficiently resulting in increased energy savings.

In 2016, Energetica S.p.A. commissioned a Capstone microturbine for the Breuil-Cervinia district heating plant. Having exceeded the company’s expectations with the first installation, plant operators selected Capstone’s innovative microturbine technology again as a trusted source of clean and reliable energy. The application provides the best economic value to the customer and is designed to lower energy costs, increase resiliency, and reduce greenhouse gas emissions.

“Our customer was already familiar with Capstone’s highly efficient cogeneration systems. This repeat order demonstrates that they clearly value both the power reliability offered by low emission, clean energy microturbine-based systems,” said Ilario Vigani, Principal at IBT Group.

According to the U.S. Energy Information Administration (EIA), district heating networks offer great potential for efficient, cost-effective and flexible large-scale integration of low-carbon energy sources into the heating energy mix. Furthermore, Italy’s economy has one of the highest CHP potentials among major European economies leading up to 2030.

About Capstone Green Energy

Capstone Green Energy (NASDAQ: CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Generation Technologies (EGT) are driven by the Company's industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Solutions (ESS) business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen & Sustainable Products (H2S), Capstone Green Energy offers customers a variety of hydrogen products, including the Company's microturbine energy systems.

To date, Capstone has shipped over 10,000 units to 83 countries and estimates that in FY22, it saved customers over $213 million in annual energy costs and approximately 388,000 tons of carbon. Total savings over the last four years are estimated to be approximately $911 million in energy savings and approximately 1,503,100 tons of carbon savings.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: This email address is being protected from spambots. You need JavaScript enabled to view it..

For more information about the Company, please visit www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding expectations for green initiatives and execution on the Company's growth strategy and other statements regarding the Company's expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as "expect," "anticipate," "believe," "could," "should," "estimate," "intend," "may," "will," "plan," "goal" and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company's indebtedness; the Company's ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company's ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's filings with the Securities and Exchange Commission, including the disclosures under "Risk Factors" in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.


Contacts

Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
This email address is being protected from spambots. You need JavaScript enabled to view it.

In Colombia:
2022 Certified 2P Reserves of 110 Million BOE
With Net Present Value (after Tax) of $1.6 Billion
105% Reserve Replacement of Proven Developed Reserves

BOGOTA, Colombia--(BUSINESS WIRE)--GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator, today announced its independent oil and gas reserves assessment, certified by DeGolyer and MacNaughton Corp. (D&M), under PRMS methodology, as of December 31, 2022.


All reserves included in this release refer to GeoPark working interest reserves before royalties paid in kind, except when specified. All figures are expressed in US Dollars. Definitions of terms are provided in the Glossary on page 11.

2022 Year-End D&M Certified Oil and Gas Reserves and Highlights:

Colombia Reserves

  • PD Reserves: Proven developed (PD) reserves in Colombia of 50.4 mmboe, with a PD reserve life index (RLI) of 4.1 years
  • 1P Reserves: Proven (1P) reserves in Colombia of 69.9 mmboe, with a 1P RLI of 5.7 years. Net present value after tax discounted at 10% (NPV10 after tax) of 1P reserves of $1.1 billion
  • 2P Reserves: Proven and probable (2P) reserves in Colombia of 109.9 mmboe, with a 2P RLI of 8.9 years. NPV10 after tax of 2P reserves of $1.6 billion
  • 3P Reserves: Proven, probable and possible (3P) reserves in Colombia of 163.6 mmboe, with a 3P RLI of 13.3 years. NPV10 after tax of 3P reserves of $2.2 billion
  • Future Development Capital: Future development capital to develop 1P, 2P and 3P reserves in Colombia of $2.2 per barrel, $2.1 per barrel and $2.2 per barrel, respectively

Consolidated Reserves

  • PD Reserves: PD reserves of 56.0 mmboe, with a PD RLI of 4.0 years
  • 1P Reserves: 1P reserves of 76.1 mmboe, with a 1P RLI of 5.4 years. NPV10 after tax of 1P reserves of $1.2 billion
  • 2P Reserves: 2P reserves of 128.4 mmboe, with a 2P RLI of 9.1 years. NPV10 after tax of 2P reserves of $1.8 billion
  • 3P Reserves: 3P reserves of 196.3 mmboe, with a 3P RLI of 13.9 years. NPV10 after tax of 3P reserves of $2.6 billion
  • Future Development Capital: Future development capital to develop 1P, 2P and 3P reserves of $2.1 per barrel, $2.7 per barrel and $2.8 per barrel, respectively

Net Present Value and Value Per Share

  • 2P NPV10 after tax of $1.8 billion
  • Net debt-adjusted 2P NPV10 after tax of $24.7 per share ($21.0 per share in Colombia)

Recent Events (Not included in the 2022 Year-End D&M Certification)

  • Llanos 34 (GeoPark operated, 45% WI): Guaco Sur 1 exploration well was spudded and reached total depth in December 2022. Initial testing activities carried out in the Guadalupe formation currently show a production rate of 976 bopd of 22 degrees API with 11% water cut, after two days of testing
  • CPO-5 (GeoPark non-operated, 30% WI): Spudded the Yarico 1 exploration prospect in late January 2023, targeting an exploration prospect adjacent to the Mariposa field, expecting to reach total depth in late February or early March 2023. Yarico 1 is expected to be followed by the Halcon 1 exploration well, targeting an exploration prospect in the northern part of the block, adjacent to the Llanos 34 block  
  • Llanos 87 (GeoPark operated, 50% WI): Tororoi 1 exploration well reached total depth in December 2022, with preliminary logging information indicating hydrocarbons in the Ubaque, Guadalupe (Barco) and Mirador formations. Currently drilling the Zorzal 1 exploration well, targeting to reach total depth by mid-February 2023
  • Platanillo (GeoPark operated, 100% WI): Alea NW 1 exploration well was spudded in September 2022 with preliminary logging information indicating hydrocarbons in the U and N formations. Production tests in the N formation started in January 2023, with initial rates of 245 bopd

2023 Work Program: Growing Production, Drilling More Wells and Giving Back to Shareholders

  • 2023 production guidance of 39,500-41,500 boepd (assuming no production from the exploration drilling program)
  • Self-funded 2023 capital expenditures program of $200-220 million to drill 50-55 gross wells (including 10-15 low-risk high-potential exploration and appraisal wells)
  • At $80-90 per bbl Brent, GeoPark expects to generate an Adjusted EBITDA of $510-580 million and a free cash flow1 of $120-140 million2
  • Targeting to return approximately 40-50% of free cash flow after taxes to shareholders

Andrés Ocampo, Chief Executive Officer of GeoPark, said: “On the back of our large inventory of low-risk, low-cost and profitable reserves, once again GeoPark increased production, cash flow and shareholder returns in 2022. We begin 2023 uniquely positioned to continue generating value through development of our multi-year project inventory with more production and more drilling, including an extensive exploration program on proven acreage that can be quickly converted to production and cash flow and a strong commitment to return 40-50% of free cash flow to shareholders.”

_____________________________

1 The Company is unable to present a quantitative reconciliation of the 2023 Adjusted EBITDA which is a forward-looking non-GAAP measure, because the Company cannot reliably predict certain of the necessary components, such as write-off of unsuccessful exploration efforts or impairment loss on non-financial assets, etc. Since free cash flow is calculated based on Adjusted EBITDA, for similar reasons, the Company does not provide a quantitative reconciliation of the 2023 free cash flow forecast.

2 Free cash flow is used here as Adjusted EBITDA less capital expenditures, mandatory interest payments and cash taxes. 2023 cash taxes include GeoPark’s preliminary estimates of the full impact of the new tax reform in Colombia, irrespective of the timing of its cash impact, expected in 2023 or early 2024.

Net Present Value per Share by Country

The table below presents GeoPark’s 2P NPV after tax per share, by country, as of December 31, 2022.

2022 Net Present Value per Share

Colombia

Chile

Brazil

Ecuador

Total

2P Reserves (mmboe)

109.9

14.6

2.0

1.8

128.4

2P NPV10 after tax ($ mm)

1,580

159

33

21

1,793

Shares Outstanding (mm)

57.6

57.6

57.6

57.6

57.6

($/share)

27.4

2.7

0.6

0.3

31.1

The table below illustrates the details of the net debt adjusted 2P NPV10 after tax per share:

2022 Net Debt Adjusted 2P NPV10 After Tax per Share

Colombia

Total

2P NPV10 after tax ($ mm)

1,580

1,793

Shares Outstanding (mm)

57.6

57.6

Subtotal ($/share)

27.4

31.1

Net Debta/Share ($/share)

-6.4

-6.4

Net Debt Adjusted 2P NPV10 After Tax per Share ($/share)

21.0

24.7

(a) Net debt adjusted 2P NPV10 after tax per share is shown on a consolidated basis. Net debt considers financial debt of $497.6 million less $128.8 million of cash & cash equivalents (both figures unaudited and as of December 31, 2022).

2021 Year-End to 2022 Year-End Reserves Evolution

Colombia (mmboe)

PD

1P

2P

3P

2021 Year-End Reserves

49.9

82.2

135.8

211.0

2022 Production

-12.3

-12.3

-12.3

-12.3

Discoveries and Extensions

12.0

0.2

1.9

4.8

Technical Revisions (*)

1.2

2.3

-11.0

-35.5

Economic Factors

-0.3

-2.5

-4.4

-4.4

2022 Year-End Reserves

50.4

69.9

109.9

163.6

2022 Reserve Life (years)

4.1

5.7

8.9

13.3

Total (mmboe)

PD

1P

2P

3P

2021 Year-End Reserves

58.1

91.6

159.2

248.3

2022 Production

-14.1

-14.1

-14.1

-14.1

Discoveries and Extensions

12.7

1.1

4.1

8.7

Technical Revisions (*)

1.7

2.9

-12.7

-38.1

Economic Factors

-0.5

-2.8

-4.5

-4.4

Divestments (Argentina)

-2.0

-2.6

-3.5

-4.1

2022 Year-End Reserves

56.0

76.1

128.4

196.3

2022 Reserve Life (years)

4.0

5.4

9.1

13.9

(*) Negative technical revisions of 2P and 3P reserves were mainly associated with the Llanos 34 and CPO-5 blocks and to a lesser extent in the Fell block, partially offset by positive technical revisions in the Platanillo block.

Future Development Capital – D&M Report (Undiscounted)

The tables below present D&M’s best estimate of future development capital (undiscounted)3 and the unit value per boe by category of certified reserves as of December 31, 2022:

Colombia

PD

1P

2P

3P

Future Development Capital ($ mm)

30.3

150.6

235.4

358.8

Reserves (mmboe)

50.4

69.9

109.9

163.6

Future Development Capital ($/boe)

0.6

2.2

2.1

2.2

 

 

 

 

 

Total

PD

1P

2P

3P

Future Development Capital ($ mm)

30.3

159.2

349.2

543.8

Reserves (mmboe)

56.0

76.1

128.4

196.3

Future Development Capital ($/boe)

0.5

2.1

2.7

2.8

_____________________________

3 Based on development plans provided by the Company.

2022 Year-End Reserves Summary

Following oil and gas production of 14.1 mmboe in 2022, D&M certified 2P reserves of 128.4 mmboe (91% oil and 9% gas) as of December 31, 2022. By country, the 2P reserves were 86% in Colombia, 11% in Chile, 2% in Brazil, and 1% in Ecuador.

Reserves Summary by Country and Category

Country

 

Reserves
Category

 

December 2022
(mmboe)

% Oil

December 2021
(mmboe)

% Change

Colombia

PD

50.4

100%

49.9

1%

1P

69.9

100%

82.2

-15%

 

2P

109.9

100%

135.8

-19%

 

3P

163.6

100%

211.0

-22%

Chile

PD

3.4

31%

3.8

-11%

 

1P

4.1

39%

4.4

-7%

 

2P

14.6

35%

17.3

-16%

 

3P

27.0

34%

30.4

-11%

Brazil

PD

1.7

0%

2.5

-32%

 

1P

1.7

0%

2.5

-32%

 

2P

2.0

0%

2.6

-23%

 

3P

2.1

1%

2.8

-25%

Ecuador

PD

0.5

100%

-

-

 

1P

0.5

100%

-

-

 

2P

1.8

100%

-

-

 

3P

3.5

100%

-

-

Argentina

PD

-

-

2.0

-

 

1P

-

-

2.6

-

 

2P

-

-

3.5

-

 

3P

-

-

4.1

-

Total

PD

56.0

92%

58.1

-4%

(D&M Certified)

1P

76.1

94%

91.6

-17%

2P

128.4

91%

159.2

-19%

 

3P

196.3

90%

248.3

-21%

Total Pro forma

PD

56.0

92%

56.1

0%

(Excluding Argentina)

1P

76.1

94%

89.0

-14%

2P

128.4

91%

155.7

-18%

 

3P

196.3

90%

244.2

-20%

 

Analysis by Country

Colombia

Llanos 34 block

Llanos 34 average gross production increased by 2% to 57,016 bopd (or 25,657 bopd net) in 2022 compared to 2021.

GeoPark’s drilling plan in 2022 in the Llanos 34 block was focused on low-risk development projects that resulted in net PD reserve additions with an 86% reserve replacement, and to a lesser extent in riskier delineation and appraisal wells that continued delineating the Jacana and Tigui fields.

The Llanos 34 block represented 85%, 80% and 79% of GeoPark’s 1P, 2P and 3P D&M certified reserves in Colombia, respectively.

GeoPark’s 2P D&M certified reserves in the Llanos 34 block in Colombia totaled 87.7 mmbbl in 2022 compared to 105.8 mmbbl in 2021, mainly resulting from 9.4 mmbbl production, 5.8 mmbbl of negative technical revisions and 2.9 mmbbl of economic factors.

As of December 31, 2022, the Llanos 34 block included approximately 49 future development drilling locations (2P, gross)4.

The 1P RLI was 6.3 years, while the 2P RLI was 9.4 years.

Gross original oil in place in the Llanos 34 block is estimated to be 0.85-1 billion barrels5. Cumulative production since 2012 to 2022 of approximately 156 mmbbl gross, representing a recovery of approximately 15-18% of the original oil in place, whereas the 2P reserves consider an ultimate recovery factor of approximately 38%.

CPO-5 block

CPO-5 average gross production reached a new record high and increased by 50% to 18,600 bopd in 2022 compared to 2021 with continuing strong reservoir performance in the Indico field.

The 2022 drilling plan executed by the operator in the CPO-5 block included successful development drilling in the Indico field and a new oil discovery, Cante Flamenco, that resulted in overall net PD and 1P reserve additions with a 200% and 157% reserve replacement.

During 2022, D&M updated its review of the geological model in the Indico field that included a reinterpretation of the 3D seismic and structural geology based on new information provided by new wells drilled that resulted in negative technical revisions to net 2P reserves for approximately 7 mmbbl and to net 3P reserves for approximately 31 mmbbl. The 2023 work program includes drilling activities to continue delineating the northwestern part of the Indico field.

The CPO-5 block represented 9%, 11% and 12%, of GeoPark’s 1P, 2P and 3P D&M certified reserves in Colombia, respectively.

GeoPark’s 2P D&M certified reserves in CPO-5 totaled 12.6 mmbbl in 2022 compared to 20.0 mmbbl in 2021, mainly reflecting 2.0 mmbbl production and negative technical revisions of approximately 7 mmbbl, partially offset by discoveries of 1.9 mmbbl.

The 1P RLI was 3.8 years, while the 2P RLI was 6.2 years.

The 2023 drilling campaign includes the drilling of 4-6 gross wells, including 1-2 development wells and 3-4 exploration wells. The exploration program targets high-potential nearfield projects adjacent to and on trend with the Llanos 34 block.

_____________________________

4 D&M best estimate.

5 D&M best estimate of 1P-3P gross original oil in place.

Total Colombia (Llanos 34, CPO-5, Platanillo and Llanos 32 blocks)

GeoPark’s 2P D&M certified reserves in Colombia totaled 109.9 mmbbl in 2022 compared to 135.8 mmbbl in 2021, resulting from 12.3 mmboe production, negative technical revisions of 11.0 mmbbl (mainly in the Llanos 34 and CPO-5 blocks, partially offset by positive revisions in the Platanillo block) and 4.4 mmbbl of lower reserves due to economic factors, partially offset by 1.9 mmbbl reserve additions in the CPO-5 block related to the discovery of the Cante Flamenco oil field.

As of December 31, 2022, GeoPark blocks in Colombia included approximately 78 future development drilling locations (2P, gross)6.

The 1P RLI was 5.7 years, while the 2P RLI was 8.9 years.

Chile

GeoPark’s 2P D&M certified reserves in Chile totaled 14.6 mmboe in 2022 compared to 17.3 mmboe in 2021, with lower reserves resulting from negative revisions of 1.9 mmboe and oil and gas production of 0.9 mmboe.

The 1P RLI was 4.8 years and the 2P RLI was 17.1 years.

The Fell block (GeoPark operated, 100% WI) represented 100% of GeoPark 2P D&M certified reserves in Chile.

The 2P D&M reserves in Chile were 35% oil and 65% gas.

Brazil

GeoPark’s 2P D&M certified reserves in Brazil totaled 2.0 mmboe compared to 2.5 mmboe in 2021, reflecting production of 0.5 mmboe during 2022.

The 1P RLI was 3.0 years and the 2P RLI was 3.7 years.

The Manati field (GeoPark non-operated, 10% WI) represented 100% of GeoPark Brazil 2P D&M certified reserves.

The 2P D&M reserves in Brazil were less than 1% oil and condensate, and more than 99% gas.

Ecuador

GeoPark’s 2P D&M certified reserves in Ecuador totaled 1.8 mmbbl which resulted from successful exploration drilling activities executed in 2022 in the Perico (GeoPark non-operated, 50% WI) and Espejo (GeoPark operated, 50% WI) blocks. Further development and appraisal drilling activities are expected in 2023 to continue delineating the fields.

The 1P RLI was 1.5 years and the 2P RLI was 5.8 years.

The Perico and Espejo blocks represented 100% of GeoPark Ecuador 2P D&M certified reserves.

The 2P D&M reserves in Ecuador were 100% oil.

The 2023 drilling campaign includes drilling of 3-4 gross appraisal and exploration wells in the Espejo and Perico blocks.

_____________________________

6 D&M best estimate.

Argentina

In November 2021, GeoPark accepted an offer to divest the Aguada Baguales, El Porvenir and Puesto Touquet blocks representing 100% of GeoPark’s reserves in Argentina for $16 million. The transaction closed in January 2022.

Net Present Value After Tax Summary

The table below details D&M certified NPV10 after tax as of December 31, 2022, as compared to 2021:

Country

Reserves
Category

 

 

NPV10 After Tax
2022 ($ mm)

 

 

NPV10 After Tax
2021 ($ mm)

 

 

 

Colombia

1P

1,088

1,274

 

2P

1,580

2,019

 

3P

2,240

2,918

Chile

1P

41

52

 

2P

159

223

 

3P

320

409

Brazil

1P

26

46

 

2P

33

52

 

3P

35

54

Ecuador

1P

14

-

 

2P

21

-

 

3P

34

-

Argentina

1P

-

12

 

2P

-

20

 

3P

-

28

Total

1P

1,169

1,384

(D&M Certified)

2P

1,793

2,313

 

3P

2,629

3,409

Tax Reform in Colombia

In November 2022 Colombia’s Congress approved a tax reform that contemplates an increase in the government take for the oil and gas industry that is effective beginning fiscal year 2023. The main impacts include provisions that prevent the deduction of royalties paid to the government from the income tax calculation and the establishment of a surcharge linked to Brent oil price.

After considering the recently approved tax reform, GeoPark’s consolidated NPV10 after tax of 1P and 2P reserves were lowered by approximately 10-12%7.

_____________________________

7 Based on internal estimates.

Oil Price Forecast

The price assumptions used to estimate the feasibility of PRMS reserves and NPV10 after tax in 2022 and 2021 D&M reports are detailed in the table below:

 

Brent Oil Price

($/bbl)

 

2023

 

2024

 

2025

 

2026

 

2027

 

2028 and
forward

2022 Reserves Report

92.5

 

67.3

 

68.9

 

70.6

 

72.2

 

73.9-80.0

2021 Reserves Report

66.4

 

67.7

 

69.1

 

70.5

 

71.9

 

73.3-80.0

OTHER NEWS

Reporting Date for 4Q2022 Results Release, Conference Call and Webcast

GeoPark will report its 4Q2022 and Annual 2022 financial results on Wednesday, March 8, 2023 after the market close.

In conjunction with the 4Q2022 results press release, GeoPark management will host a conference call on March 9, 2023 at 10:00 am (Eastern Standard Time) to discuss the 4Q2022 financial results.

To listen to the call, participants can access the webcast located in the Invest with Us section of the Company’s website at www.geo-park.com, or by clicking below:

https://events.q4inc.com/attendee/741237333

Interested parties may participate in the conference call by dialing the numbers provided below:

United States Participants: 844-200-6205
International Participants: +1 929-526-1599
Passcode: 824273

Please allow extra time prior to the call to visit the website and download any streaming media software that might be required to listen to the webcast.

An archive of the webcast replay will be made available in the Invest with Us section of the Company’s website at www.geo-park.com after the conclusion of the live call.

 

 

GLOSSARY

 

1P

Proven Reserves

2P

Proven plus Probable Reserves

3P

Proven plus Probable plus Possible Reserves

boe

Barrels of oil equivalent (6,000 cf marketable gas per bbl of oil equivalent). Marketable gas is defined as the total gas produced from the reservoir after reduction for shrinkage resulting from field separation; processing, including removal of nonhydrocarbon gas to meet pipeline specifications; and flare and other losses but not from fuel usage

boepd

Barrels of oil equivalent per day

bopd

Barrels of oil per day

Certified Reserves

Refers to GeoPark working interest reserves before royalties paid in kind, independently evaluated by the petroleum consulting firm, DeGolyer and MacNaughton Corp. (D&M)

EUR

Estimated Ultimate Recovery

mboed

Thousands of barrels of oil equivalent per day

mmboed

Millions of barrels of oil equivalent per day

mmbbl

Millions of barrels of oil

mcfpd

Thousands of standard cubic feet per day

mmcfpd

Millions of standard cubic feet per day

NPV10 After Tax

Net Present Value after tax discounted at 10% rate

PD

Proven Developed Reserves

PUD

Proven Undeveloped Reserves

PRMS

Petroleum Resources Management System

RLI

Reserve Life Index

RRR

Reserve Replacement Ratio

sq km

Square kilometers

WI

Working Interest

NOTICE

Additional information about GeoPark can be found in the Invest with Us section of the website at www.geo-park.com

The reserve estimates provided in this release are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual reserves may eventually prove to be greater than, or less than, the estimates provided herein. Statements relating to reserves are by their nature forward-looking statements.

Gas quantities estimated herein are reserves to be produced from the reservoirs, available to be delivered to the gas pipeline after field separation prior to compression. Gas reserves estimated herein include fuel gas.

Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.

Oil and gas production figures included in this release are stated before the effect of royalties paid in kind, consumption and losses.

All evaluations of future net revenue contained in the D&M Reports are after the deduction of cash royalties, development costs, operating expenses, production and profit taxes, fees, earn out payments, well abandonment costs, and country income taxes from the future gross revenue. It should not be assumed that the estimates of future net revenues presented in the tables represent the fair market value of the reserves. The actual production, revenues, taxes and development, and operating expenditures with respect to the reserves associated with the Company's properties may vary from the information presented herein, and such variations could be material. In addition, there is no assurance that the forecast price and cost assumptions contained in the D&M Report will be attained, and variances could be material.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

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

Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters including NPV10 after tax and NPV10 after tax/share estimations, our reserves, the estimated future revenues, capital expenditures, Adjusted EBITDA, free cash flows, expected production guidance, oil price forecast and shareholder returns. Forward-looking statements are based on management’s beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors.

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

This press release contains a number of oil and gas metrics, including NPV after tax per share, reserve life index, net debt-adjusted NPV per share, etc., which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods.

Information about oil and gas reserves: The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proven, probable and possible reserves that meet the SEC's definitions for such terms. GeoPark uses certain terms in this press release, such as "PRMS Reserves" that SEC guidelines do not permit GeoPark from including in filings with the SEC.


Contacts

INVESTORS:

Stacy Steimel
This email address is being protected from spambots. You need JavaScript enabled to view it.
Shareholder Value Director
T: +562 2242 9600

Miguel Bello
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Market Access Director
T: +562 2242 9600

Diego Gully
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Sense’s Real-Time Home Intelligence Application Leverages Itron’s DI Platform to Transform the Relationship Between Utilities and Consumers

LIBERTY LAKE, Wash.--(BUSINESS WIRE)--#Data--Itron, Inc. (NASDAQ: ITRI), which is innovating the way utilities and cities manage energy and water, announced that Sense, whose mission is to reduce global carbon emissions by making homes smarter and more efficient, has joined Itron’s expanding ecosystem of distributed intelligence (DI) partners. Through the collaboration, the Sense Home Analytics application will leverage Itron’s proven, scalable DI platform to enable a new and innovative approach to improving grid resiliency and transforming the relationship between utilities and consumers.


Sense provides consumers a real-time engaging view into energy use in their homes. Sense technology uses high-resolution waveform data to detect devices in the home based on their electrical signatures and also connects to other smart home devices for control and automation. Through Sense’s mobile app, users can identify and track energy usage, get a better understanding of electricity costs and ultimately save money. The technology can also be used to detect appliance failures and performance issues, alerting consumers about maintenance or replacement before it occurs. Utilities and cities can benefit by having engaged consumers who are better able to understand and manage energy use in their homes with significantly improved participation in utility driven programs to help achieve demand flexibility.

The Sense application runs on Itron’s DI-enabled smart meters and takes advantage of Itron’s DataHub, a secure, scalable, cloud-based platform that makes data streams easily available to third parties with consumer authorization. This will allow consumers to seamlessly utilize the Sense mobile app without needing to purchase additional hardware. To date, Itron has shipped more than 5 million DI-enabled meters integrated with Itron’s DI platform.

“Taking advantage of Itron’s DI platform and DataHub, Sense and Itron are transforming the energy value chain by delivering predictive insights about homes, businesses and the grid to energy suppliers – while also strengthening the consumer relationship by providing true real-time visibility into what’s happening in the home,” said Don Reeves, senior vice president, Outcomes at Itron. “We are excited to expand our DI ecosystem by collaborating with Sense and giving our customers access to new and innovative approaches to solving critical challenges facing the world’s power grids and transforming utility consumer engagement.”

“Working together, Sense and Itron can achieve our goal of making homes smarter and more efficient by providing real-time energy experiences to all consumers. Through this collaboration, we are ensuring that grid modernization investments offer immediate value to consumers by enabling meters with consumer-facing applications to manage household energy and demand, optimize cost savings and reduce carbon emissions,” said Sense CEO Mike Phillips. “At Sense, our focus is to empower our customers to care for their homes while contributing to a cleaner, more resilient future. Leveraging Itron’s DI ecosystem, we can provide applications centered around a decarbonized future more rapidly than ever before.”

Itron’s robust DI platform allows innovators to build open, interoperable, value-driven applications on Itron’s secure platform which evolve with market and consumer demands. The DI development program enables an ecosystem of third-party developers to ensure a greater selection of applications to meet utility needs today and into the future. These applications are available via the Itron Enterprise Application Center, which features an increasingly diverse portfolio of Itron and third-party applications that connect to Itron's industry-leading, IoT-based network. The Itron Enterprise Application Center is the operational backbone for utility customers to manage applications for customers via a private, secure web portal.

The Sense application will be available in the Itron Enterprise Application Center by the end of Q3 2023.

About Itron

Itron enables utilities and cities to safely, securely and reliably deliver critical infrastructure solutions to communities in more than 100 countries. Our portfolio of smart networks, software, services, meters and sensors helps our customers better manage electricity, gas and water resources for the people they serve. By working with our customers to ensure their success, we help improve the quality of life, ensure the safety and promote the well-being of millions of people around the globe. Itron is dedicated to creating a more resourceful world. Join us: www.itron.com.

Itron® is a registered trademark of Itron, Inc. All third-party trademarks are property of their respective owners and any usage herein does not suggest or imply any relationship between Itron and the third party unless expressly stated.

Additional Resources

 


Contacts

Itron, Inc.
Alison Mallahan
Senior Manager, Corporate Communications
509-891-3802
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Patented Technology by SET is Gamechanger for Water and Gas AMI Endpoints

CARLSBAD, Calif.--(BUSINESS WIRE)--#IoT--Smart Earth Technologies (SET) announced today the launch and expansion of their new 330 Product Series featuring solar technology that extends the endpoint battery to a full 20-year life span without compromising environmental durability.


“Consistent with our legacy of innovation, SET is the first to offer a battery based solar enhanced water and gas AMI solution,” said Vivek Beri, CEO of SET. “SET has solved the dilemma of extending battery life while enhancing functionality and environmental sustainability.”

Battery powered Advanced Metering Infrastructure (AMI) endpoints require a power source to “wake up” and send meter data to the Head End System (HES). Relying strictly on battery power to accomplish this can lead to limited functionality and sometimes life span. Other solutions have attempted to address the power management challenge by offering a replaceable battery solution. However, that approach invites water intrusion, reduces environmental sustainability, and requires increased maintenance by utility personnel. SET’s patented solution uses solar energy to significantly support and extend the battery life, thereby delivering substantial return on investment (ROI) to utilities.

“SET is committed to innovating the most environmentally sustainable, reliable, and useful solution in the Advanced Metering Infrastructure industry for electric, water, and gas utilities. It is inspiring to live in a time where creative, agile design in technology can deliver excellence for utilities, their consumers, and the public at large,” continued Beri.

The SET brand was recently expanded by CrescoNet to include gas and electric solutions. The 330 Product Series adds solar boost AMI endpoints for water and gas utilities to SET’s product portfolio.

About Smart Earth Technologies (SET)
SET is the premier global provider of environmentally sustainable utility management solutions for electric, gas, and water utilities. The technology is a highly resilient and secure, public, and private LTE/5G standards-based advanced metering infrastructure (AMI) and Internet of Things (IoT), meter-neutral solution. SET is leading the way with groundbreaking solutions such as solar powered endpoints, expanded data capacity, secure battery life, and industry leading scalability for software systems. SET is the largest provider of DER data and control services, providing measurement, command and control of varied DER products and vendors with no meter dependency. Part of the CrescoNet family, both CrescoNet and SET are committed to economic, sustainable, and environmental advancement in energy, water, and waste management across the globe. For more information on Smart Earth Technologies visit www.smartearthtechnologies.com.


Contacts

Press Contact:
Kim Glassman, This email address is being protected from spambots. You need JavaScript enabled to view it., 877.515.7627, Extension 3

Ovation Green will help producers navigate the emerging sustainable energy economy

PITTSBURGH--(BUSINESS WIRE)--Emerson (NYSE: EMR) has combined its comprehensive power expertise and renewable energy capabilities into the Ovation™ Green portfolio to help power generation companies meet the needs of customers navigating the transition to green energy generation and storage. By uniting the recently acquired Mita-Teknik software and technology with its own industry-leading Ovation automation platform, deep renewable energy knowledge base, cybersecurity solutions and remote management capabilities, Emerson has created a new extension of its power-based control architecture. The resulting portfolio focuses on the emerging clean energy market to provide simplified renewables automation to help power producers build and scale sustainable operations.


Renewable electricity capacity has seen record growth in recent years. However, transitioning to cleaner energy systems or scaling up existing ones is a complex undertaking for power producers. Wind turbines, solar arrays, lithium-ion batteries, hydrogen electrolyzers and hydroelectric power all use a wide variety of automation software and technologies. As renewable portfolios grow, the number of applied technologies will multiply, increasing learning curves and adding complexity to operations as solutions from different vendors require additional integration. While some existing systems can provide layers of connectivity between very specific assets, the Ovation Green portfolio will deliver a single set of purpose-built software and solutions that supports different technologies in one standardized, intuitive system.

“Countries around the globe are focused on transitioning to a clean energy economy in the coming decades, and while green energy is a simple concept everyone understands, the road to implementation is not always clear,” said Bob Yeager, president of Emerson’s power and water solutions. “With the Ovation Green portfolio, our software, support and solutions are unified in one system from a single trusted provider to help power producers more quickly, easily and reliably manage their renewable electricity operations.”

Full access to real-time and historical operations information empowers owners and operators with greater visibility and control of all renewable assets across the enterprise. Through an integrated portfolio of data-driven asset control and management solutions, Ovation Green technologies provide secure, standardized access to data, independent of equipment manufacturer or system type, across a single or multiple sites.

By gathering, collating and contextualizing vast amounts of data created by renewable generation and storage assets, Emerson’s Ovation Green portfolio provides a clear view of renewable operations in a seamless space. The portfolio will empower actionable intelligence from a unified platform to drive faster, more informed decisions to increase availability and production while reducing operations and maintenance costs.

Emerson’s Ovation Green portfolio will be featured at the Intersolar and Energy Storage North America Conference February 14-16 in Long Beach, California.

To learn more about Ovation Green technologies, please visit Emerson.com/Ovation-Green.

Additional resources:

About Emerson

Emerson (NYSE: EMR) is a global technology and software company providing innovative solutions for the world’s essential industries. Through its leading automation portfolio, including its majority stake in AspenTech, Emerson helps hybrid, process and discrete manufacturers optimize operations, protect personnel, reduce emissions and achieve their sustainability goals. For more information, visit Emerson.com.


Contacts

For Emerson
Denise Clarke
512.587.5879
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The two firms will bring advanced decision management and mathematical optimization technology to multiple industries

LAGOS, Nigeria & JOHANNESBURG--(BUSINESS WIRE)--Global analytics software provider FICO today announced a partnership with FPG Technologies & Solutions LTD, a member of FlexiP Group, to bring advanced decision management and analytics tools to companies across West Africa. FPG will sell, implement and support FICO® Blaze Advisor® decision rules management system and FICO® Xpress Optimization, leading tools that businesses use to automate high-volume decisions, rapidly change strategies and leverage advanced analytics to improve performance.


More information: http://www.flexipgroup.com/

“West African companies are engaged in digital transformation initiatives that have gotten extra momentum from the pandemic,” said Rex Mafiana, CEO of FlexiP Group, a leading enterprise IT solutions provider and systems integrator, with specialties in financial services, telecommunication, energy, oil & gas, and healthcare. “Across all industries, it’s critical to be able to automate more decisions, to change strategies faster, and to increase efficiency. FICO has world-class tools that can help our customers be more competitive, and also help our own development team develop new products.”

“Rules management and mathematical optimization are the core technologies for better decisions,” said Mark Farmer, who manages partner relationships for FICO in EMEA. “FPG has deep domain expertise in multiple industries in West Africa, and can help businesses there use these technologies to transform their performance.”

As FICO’s flagship rules authoring solution, FICO® Blaze Advisor® decision rules management system maximizes control over high-volume operational decisions. Blaze Advisor provides businesses across multiple industries with a scalable solution that delivers unprecedented agility and actionability for smarter, transparent, and better business decisions.

FICO® Xpress Optimization allows businesses to easily build, deploy and use optimization solutions that crunch through millions of potential scenarios to find the ideal solution. Standard capabilities include scalable high-performance solvers and algorithms, flexible modeling environments, rapid application development, comparative scenario analysis and reporting capabilities, for on-premises and cloud installations.

FICO was named Best Technology Provider for Data Analytics at the 2022 Credit Awards, and a Leader in The Forrester Wave™: Digital Decisions Platforms.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in nearly 120 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.

Learn more at https://www.fico.com

About FPG

FPG Technologies & Solutions Limited (a member of FlexiP Group) is an information technology company committed to helping you and your organization achieve extreme business agility with confidence!

https://flexipgroup.com/about-fpg-ts/

FICO and Blaze Advisor are registered trademarks of Fair Isaac Corporation in the U.S. and other countries.


Contacts

FICO PR for Africa
Nichollars Khoza
Britespark Communications
076 099 2099
010 001 0113
This email address is being protected from spambots. You need JavaScript enabled to view it.

FPG MEDIA/PRESS
Chidiebere Nwankwo
StraightLine Media Mgt & Communications
08082677724; 09097999485
This email address is being protected from spambots. You need JavaScript enabled to view it.

  • Operating Revenues $1.6 billion; $1.6 billion in 2021
  • Income from Operations $143.3 million; Adjusted Income from Operations $148.3 million
  • Diluted Earnings per Share $0.62; Adjusted Diluted Earnings Per Share $0.64
  • Full year 2023 Net Capital Expenditures guidance of $525 - $575 million
  • Full year 2023 Adjusted Diluted Earnings per Share guidance of $2.15 - $2.35

GREEN BAY, Wis.--(BUSINESS WIRE)--Schneider National, Inc. (NYSE: SNDR, “Schneider” or the “Company”), a leading transportation and logistics services company, today announced results for the fourth quarter and year ended December 31, 2022.


Our enterprise delivered record revenues of $6.6 billion and adjusted earnings of $617 million in 2022, illustrating the significant strategic progress of our multimodal portfolio since our IPO in 2017,” said Mark Rourke, Chief Executive Officer and President of Schneider. “I want to acknowledge the diligent efforts of our professional drivers and associates, who work hard and contribute to our success every day.”

During the fourth quarter, we seamlessly transitioned our Western rail operations to the Union Pacific. This move further enables our plans to double our Intermodal offering by 2030 while providing our customers more lane options and more frequent departures,” Rourke commented.

In 2023, the focus remains on our key growth initiatives in Dedicated, Intermodal, and Logistics, as well as steady investments in our digital platform Schneider FreightPower®,” said Rourke. “In addition, we will provide increased value for our customers, drivers, and carriers through improved fluidity across our freight and trailing asset networks.”

Results of Operations (unaudited)

The following table summarizes the Company’s results of operations for the periods indicated.

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

(in millions, except ratios & per share amounts)

 

 

2022

 

 

 

2021

 

 

Change

 

 

2022

 

 

 

2021

 

 

Change

Operating revenues

 

$

1,561.7

 

 

$

1,574.8

 

 

(1)%

 

$

6,604.4

 

 

$

5,608.7

 

 

18%

Revenues (excluding fuel surcharge)

 

 

1,347.7

 

 

 

1,444.8

 

 

(7)%

 

 

5,741.9

 

 

 

5,163.9

 

 

11%

Income from operations

 

 

143.3

 

 

 

178.0

 

 

(19)%

 

 

600.4

 

 

 

533.7

 

 

12%

Adjusted income from operations

 

 

148.3

 

 

 

177.0

 

 

(16)%

 

 

617.0

 

 

 

532.7

 

 

16%

Operating ratio

 

 

90.8

%

 

 

88.7

%

 

(210) bps

 

 

90.9

%

 

 

90.5

%

 

(40) bps

Adjusted operating ratio

 

 

89.0

%

 

 

87.7

%

 

(130) bps

 

 

89.3

%

 

 

89.7

%

 

40 bps

Net income

 

$

110.1

 

 

$

134.1

 

 

(18)%

 

$

457.8

 

 

$

405.4

 

 

13%

Adjusted net income

 

 

115.1

 

 

 

135.9

 

 

(15)%

 

 

471.5

 

 

 

407.2

 

 

16%

Diluted earnings per share

 

 

0.62

 

 

 

0.75

 

 

(17)%

 

 

2.56

 

 

 

2.28

 

 

12%

Adjusted diluted earnings per share

 

 

0.64

 

 

 

0.76

 

 

(16)%

 

 

2.64

 

 

 

2.29

 

 

15%

Weighted average diluted shares outstanding

 

 

178.9

 

 

 

178.3

 

 

0.6

 

 

178.8

 

 

 

178.1

 

 

0.7

Enterprise Results

Enterprise fourth quarter 2022 income from operations was $143.3 million, a decrease of $34.7, or 19% compared to the prior year. It included a $5.0 million net loss attributed to costs associated with a management buyout of 100% of the Company’s China-based logistics operations, backed by certain members of the Company’s Tianjin management team, which closed in the quarter. Considering this item, adjusted income from operations for the fourth quarter of 2022 was $148.3 million, a decrease of $28.7 million, or 16%, compared to the prior year.

At December 31, 2022, the Company had a total of $215.1 million outstanding on various debt instruments compared to $270.3 million as of December 31, 2021. The Company had cash and cash equivalents of $385.7 million and $244.8 million as of December 31, 2022 and December 31, 2021, respectively. The Company’s effective tax rate was 21.5% in the fourth quarter, compared to 25.3% in the prior year, a reduction related to a change in our overall state income tax rates.

In October 2022, the Company’s Board of Directors declared an $0.08 dividend payable to shareholders of record as of December 9, 2022. This dividend was paid on January 10, 2023. On January 30, 2023, the Company’s Board of Directors declared a $0.09 dividend payable to shareholders of record as of March 10, 2023, expected to be paid on April 10, 2023. As of December 31, 2022, the Company had returned $55.7 million to shareholders year to date.

On January 31, 2023, its Board of Directors approved a share repurchase authorization of $150 million. The program is a complementary component of the Company’s capital allocation framework and will primarily serve to offset the dilutive effect of equity grants to employees over time.

Results of Operations – Reportable Segments

Truckload

  • Dedicated trucks represent 57% of Truckload fleet

Truckload revenues (excluding fuel surcharge) for the fourth quarter of 2022 were $545.4 million, an increase of $21.8 million, or 4%, compared to the same quarter in 2021. The increase was due to dedicated growth, including both the MLS acquisition and nearly 500 units of organic dedicated new business, partially offset by lower miles per tractor related to moderating market demand and lower network price including less premium freight opportunities year over year. Truckload revenue per truck per week was $4,171, a decrease of 8% compared to the same quarter in 2021.

Truckload income from operations was $68.9 million in the fourth quarter of 2022, a decrease of $18.8 million, or 21%, compared to the same quarter in 2021. Earnings were impacted by the factors cited above, as well as higher driver and equipment-related costs. Truckload segment operating ratio was 87.4% in the fourth quarter of 2022, compared to 83.3% in the fourth quarter of 2021.

Intermodal

  • Intermodal comprised 25% of segment revenues in the quarter

Intermodal revenues (excluding fuel surcharge) for the fourth quarter of 2022 were $315.5 million, a decrease of $2.1 million, or 1%, compared to the same quarter in 2021 primarily due to moderating market demand, partially offset by a 7% improvement in revenue per order.

Intermodal income from operations for the fourth quarter of 2022 was $52.8 million, a decrease of $1.8 million, or 3%, compared to the same quarter in 2021. The impact of favorable yield and network management was offset by higher equipment and dray driver costs. Intermodal operating ratio was 83.3% in the fourth quarter of 2022, a sequential improvement of 740 basis points from the third quarter of 2022.

Logistics

  • Logistics comprised 33% of segment revenues in the quarter

Logistics revenues (excluding fuel surcharge) for the fourth quarter of 2022 were $425.0 million, a decrease of $122.5 million, or 22%, compared to the same quarter in 2021, primarily due to decreased revenue per order and 5% lower brokerage volume year over year.

Logistics income from operations for the fourth quarter of 2022 was $24.1 million, a decrease of $13.3 million, or 36%, compared to the same quarter in 2021 due to lower volumes and decreased net revenue per order. Logistics operating ratio was 94.3% in the fourth quarter of 2022, compared to 94.0% in the third quarter of 2022, and 93.2% in the same quarter the prior year.

Business Outlook

(in millions, except per share data)

 

Current Guidance

Adjusted diluted earnings per share

 

$2.15 - $2.35

Net capital expenditures

 

$525.0 - $575.0

We anticipate that 2023 will finish stronger than it began and that freight demand will strengthen as the year progresses,” said Stephen Bruffett, Executive Vice President, Chief Financial Officer of Schneider. “Based on this and other market expectations, our guidance for full year 2023 adjusted diluted EPS is $2.15 - 2.35. Our net capital expenditures guidance for full year 2023 is approximately $525 - $575 million, with an expected full year effective tax rate of approximately 24.5%.”

We look forward to demonstrating the resilience of our diverse portfolio through evolving market conditions, while advancing our strategic priorities of Dedicated, Intermodal, and Logistics, disciplined investment in our business, and shareholder value,” Bruffett commented.

Non-GAAP Financial Measures

The Company has presented certain non-GAAP financial measures, including revenues (excluding fuel surcharge), adjusted income from operations, adjusted operating ratio, adjusted net income, and adjusted diluted earnings per share. Management believes the use of non-GAAP measures assists investors in understanding the business, as further described below. The non-GAAP information provided is used by Company management and may not be comparable to similar measures disclosed by other companies. The non-GAAP measures used herein have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of results as reported under GAAP.

A reconciliation of net income per share to adjusted diluted earnings per share as projected for 2023 is not provided. Schneider does not forecast net income per share as the Company cannot, without unreasonable effort, estimate or predict with certainty various components of net income. The components of net income that cannot be predicted include expenses for items that do not relate to core operating performance, such as costs related to potential future acquisitions, as well as the related tax impact of these items. Further, in the future, other items with similar characteristics to those currently included in adjusted net income, that have a similar impact on the comparability of periods, and which are not known at this time may exist and impact adjusted net income.

About Schneider National, Inc.

Schneider National, Inc. and its subsidiaries (together “Schneider,” the “Company,” “we,” “us,” or “our”) are among the largest providers of surface transportation and logistics solutions in North America. We offer a multimodal portfolio of services and an array of capabilities and resources that leverage artificial intelligence, data science, and analytics to provide innovative solutions that coordinate the timely, safe, and effective movement of customer products. The Company offers truckload, intermodal, and logistics services to a diverse customer base throughout the continental United States, Canada, and Mexico. We were founded in 1935 and have been a publicly held holding company since our IPO in 2017. Our stock is publicly traded on the NYSE under the ticker symbol SNDR.

Our diversified portfolio of complementary service offerings enables us to serve the varied needs of our customers and to allocate capital that maximizes returns across all market cycles and economic conditions. Our service offerings include transportation of full-truckload freight, which we directly transport utilizing either our company-owned transportation equipment and company drivers, owner-operators, or third-party carriers under contract with us. We have arrangements with most of the major North American rail carriers to transport freight in containers. We also provide customized freight movement, transportation equipment, labor, systems, and delivery services tailored to meet individual customer requirements, which typically involve long-term contracts. These arrangements are generally referred to as dedicated services and may include multiple pickups and drops, local deliveries, freight handling, specialized equipment, and freight network design. In addition, we provide comprehensive logistics services with a network of thousands of qualified third-party carriers. We also lease equipment to third parties through our wholly owned subsidiary Schneider Finance, Inc., which is primarily engaged in leasing trucks to owner-operators, including, but not limited to, owner-operators with whom we contract, and we provide insurance for both company drivers and owner-operators through our wholly owned insurance subsidiary.

Conference Call and Webcast Information

The Company will host an earnings conference call today at 10:30 a.m. Eastern Time. The conference call can be accessed by dialing 877-451-6152 (U.S.) or 201-389-0879 (international). A replay will be available approximately three hours after the call through February 9th by dialing 844-512-2921 (U.S.) or 412-317-6671 (international). The passcode for the replay is 13734974. A live webcast of the conference call can also be accessed on the Investor Relations section of the Company’s website, Schneider.com, along with the current quarterly investor presentation.

SCHNEIDER NATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in millions, except per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating revenues

$

1,561.7

 

 

$

1,574.8

 

 

$

6,604.4

 

 

$

5,608.7

 

Operating expenses:

 

 

 

 

 

 

 

Purchased transportation

 

648.9

 

 

 

757.3

 

 

 

2,902.9

 

 

 

2,657.7

 

Salaries, wages, and benefits

 

341.6

 

 

 

316.6

 

 

 

1,376.0

 

 

 

1,149.5

 

Fuel and fuel taxes

 

130.1

 

 

 

77.3

 

 

 

521.0

 

 

 

281.4

 

Depreciation and amortization

 

91.7

 

 

 

75.7

 

 

 

350.0

 

 

 

296.2

 

Operating supplies and expenses—net

 

142.0

 

 

 

100.4

 

 

 

534.0

 

 

 

462.4

 

Insurance and related expenses

 

25.0

 

 

 

21.7

 

 

 

103.0

 

 

 

82.4

 

Other general expenses

 

39.1

 

 

 

37.2

 

 

 

217.1

 

 

 

134.8

 

Goodwill impairment charge

 

 

 

 

10.6

 

 

 

 

 

 

10.6

 

Total operating expenses

 

1,418.4

 

 

 

1,396.8

 

 

 

6,004.0

 

 

 

5,075.0

 

Income from operations

 

143.3

 

 

 

178.0

 

 

 

600.4

 

 

 

533.7

 

Other expenses (income):

 

 

 

 

 

 

 

Interest income

 

(1.4

)

 

 

(0.3

)

 

 

(2.9

)

 

 

(2.1

)

Interest expense

 

2.5

 

 

 

2.8

 

 

 

9.6

 

 

 

12.5

 

Other expense (income)—net

 

2.0

 

 

 

(3.9

)

 

 

(10.3

)

 

 

(18.7

)

Total other expenses (income)—net

 

3.1

 

 

 

(1.4

)

 

 

(3.6

)

 

 

(8.3

)

Income before income taxes

 

140.2

 

 

 

179.4

 

 

 

604.0

 

 

 

542.0

 

Provision for income taxes

 

30.1

 

 

 

45.3

 

 

 

146.2

 

 

 

136.6

 

Net income

$

110.1

 

 

$

134.1

 

 

$

457.8

 

 

$

405.4

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

178.0

 

 

 

177.7

 

 

 

177.9

 

 

 

177.6

 

Basic earnings per share

$

0.62

 

 

$

0.75

 

 

$

2.57

 

 

$

2.28

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

178.9

 

 

 

178.3

 

 

 

178.8

 

 

 

178.1

 

Diluted earnings per share

$

0.62

 

 

$

0.75

 

 

$

2.56

 

 

$

2.28

 

 

 

 

 

 

 

 

 

Dividends per share of common stock

$

0.08

 

 

$

0.07

 

 

$

0.32

 

 

$

0.28

 

SCHNEIDER NATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions)

 

 

 

 

 

 

 

December 31,
2022

 

December 31,
2021

Assets

 

 

 

 

Cash and cash equivalents

 

$

385.7

 

$

244.8

Trade accounts receivable—net

 

 

643.7

 

 

 

705.4

 

Other current assets

 

 

320.9

 

 

 

298.3

 

Net property and equipment

 

 

2,280.0

 

 

 

2,051.0

 

Other noncurrent assets

 

 

687.9

 

 

 

637.8

 

Total Assets

 

$

4,318.2

 

 

$

3,937.3

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

Trade accounts payable

 

$

276.7

 

 

$

331.7

 

Current maturities of debt and finance lease obligations

 

 

73.3

 

 

 

61.4

 

Other current liabilities

 

 

286.9

 

 

 

297.1

 

Long-term debt and finance lease obligations

 

 

141.8

 

 

 

208.9

 

Deferred income taxes

 

 

538.2

 

 

 

451.0

 

Other noncurrent liabilities

 

 

164.1

 

 

 

163.4

 

Shareholders’ Equity

 

 

2,837.2

 

 

 

2,423.8

 

Total Liabilities and Shareholders’ Equity

 

$

4,318.2

 

 

$

3,937.3

 

SCHNEIDER NATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in millions)

 

 

Year Ended

December 31,

 

 

2022

 

 

 

2021

 

Net cash provided by operating activities

$

856.4

 

 

$

566.1

 

Net cash used in investing activities

 

(598.8

)

 

 

(626.4

)

Net cash used in financing activities

 

(116.7

)

 

 

(90.4

)

Net increase (decrease) in cash and cash equivalents

$

140.9

 

 

$

(150.7

)

 

 

 

 

Net capital expenditures

$

(461.7

)

 

$

(271.1

)

Schneider National, Inc.

Revenues and Income (Loss) from Operations by Segment

(unaudited)

 

Revenues by Segment

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

(in millions)

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Truckload

 

$

545.4

 

 

$

523.6

 

 

$

2,236.6

 

 

$

1,934.9

 

Intermodal

 

 

315.5

 

 

 

317.6

 

 

 

1,287.4

 

 

 

1,143.1

 

Logistics

 

 

425.0

 

 

 

547.5

 

 

 

1,956.2

 

 

 

1,808.7

 

Other

 

 

89.8

 

 

 

80.4

 

 

 

364.0

 

 

 

365.3

 

Fuel surcharge

 

 

214.0

 

 

 

130.0

 

 

 

862.5

 

 

 

444.8

 

Inter-segment eliminations

 

 

(28.0

)

 

 

(24.3

)

 

 

(102.3

)

 

 

(88.1

)

Operating revenues

 

$

1,561.7

 

 

$

1,574.8

 

 

$

6,604.4

 

 

$

5,608.7

 

Income (Loss) from Operations by Segment

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

(in millions)

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Truckload

 

$

68.9

 

 

$

87.7

 

 

$

352.2

 

 

$

284.7

Intermodal

 

 

52.8

 

 

 

54.6

 

 

 

165.1

 

 

 

155.2

 

Logistics

 

 

24.1

 

 

 

37.4

 

 

 

141.2

 

 

 

92.4

 

Other

 

 

(2.5

)

 

 

(1.7

)

 

 

(58.1

)

 

 

1.4

 

Income from operations

 

$

143.3

 

 

$

178.0

 

 

$

600.4

 

 

$

533.7

 

Schneider National, Inc.
Key Performance Indicators by Segment
(unaudited)

We monitor and analyze a number of KPIs in order to manage our business and evaluate our financial and operating performance.

Truckload

The following table presents our Truckload segment KPIs for the periods indicated, consistent with how revenues and expenses are reported internally for segment purposes. The two operations that make up our Truckload segment are as follows:

  • Dedicated - Transportation services with equipment devoted to customers under long-term contracts.
  • Network - Transportation services of one-way shipments.

MLS and deBoer impacts are included within dedicated operations below beginning in the first and third quarters of 2022, respectively. The Truckload KPIs below, for the year ended December 31, 2021, do not contemplate the impacts of our acquisition of MLS on December 31, 2021. As of December 31, 2021, MLS operated approximately 900 tractors and 3,600 trailers.

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Dedicated

 

 

 

 

 

 

 

 

Revenues (excluding fuel surcharge) (1)

 

$

298.3

 

 

$

231.0

 

 

$

1,190.4

 

 

$

818.3

 

Average trucks (2) (3)

 

 

5,967

 

 

 

4,498

 

 

 

5,915

 

 

 

4,265

 

Revenue per truck per week (4)

 

$

4,006

 

 

$

4,095

 

 

$

3,948

 

 

$

3,756

 

Network

 

 

 

 

 

 

 

 

Revenues (excluding fuel surcharge) (1)

 

$

248.5

 

 

$

293.4

 

 

$

1,045.1

 

 

$

1,115.0

 

Average trucks (2) (3)

 

 

4,539

 

 

 

4,752

 

 

 

4,534

 

 

 

5,059

 

Revenue per truck per week (4)

 

$

4,388

 

 

$

4,925

 

 

$

4,522

 

 

$

4,315

 

Total Truckload

 

 

 

 

 

 

 

 

Revenues (excluding fuel surcharge) (5)

 

$

545.4

 

 

$

523.6

 

 

$

2,236.6

 

 

$

1,934.9

 

Average trucks (2) (3)

 

 

10,506

 

 

 

9,250

 

 

 

10,449

 

 

 

9,324

 

Revenue per truck per week (4)

 

$

4,171

 

 

$

4,521

 

 

$

4,197

 

 

$

4,059

 

Average company trucks (3)

 

 

8,526

 

 

 

7,040

 

 

 

8,438

 

 

 

6,987

 

Average owner-operator trucks (3)

 

 

1,980

 

 

 

2,210

 

 

 

2,011

 

 

 

2,337

 

Trailers (6)

 

 

43,950

 

 

 

36,601

 

 

 

43,950

 

 

 

36,601

 

Operating ratio (7)

 

 

87.4

%

 

 

83.3

%

 

 

84.3

%

 

 

85.3

%

(1)

Revenues (excluding fuel surcharge), in millions, exclude revenue in transit.

(2)

Includes company and owner-operator trucks.

(3)

Calculated based on beginning and end of month counts and represents the average number of trucks available to haul freight over the specified timeframe.

(4)

Calculated excluding fuel surcharge and revenue in transit, consistent with how revenue is reported internally for segment purposes, using weighted workdays.

(5)

Revenues (excluding fuel surcharge), in millions, include revenue in transit at the operating segment level and, therefore does not sum with amounts presented above.

(6)

Includes entire fleet of owned trailers, including trailers with leasing arrangements between Truckload and Logistics.

(7)

Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level.

Intermodal

The following table presents the KPIs for our Intermodal segment for the periods indicated.

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Orders (1)

 

 

107,685

 

 

 

114,088

 

 

 

453,218

 

 

 

448,568

 

Containers

 

 

28,035

 

 

 

25,187

 

 

 

28,035

 

 

 

25,187

 

Trucks (2)

 

 

1,588

 

 

 

1,602

 

 

 

1,588

 

 

 

1,602

 

Revenue per order (3)

 

$

2,979

 

 

$

2,772

 

 

$

2,845

 

 

$

2,526

 

Operating ratio (4)

 

 

83.3

%

 

 

82.8

%

 

 

87.2

%

 

 

86.4

%

(1)

Based on delivered rail orders.

(2)

Includes company and owner-operator trucks at the end of the period.

(3)

Calculated using rail revenues excluding fuel surcharge and revenue in transit, consistent with how revenue is reported internally for segment purposes.

(4)

Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level.

Logistics

The following table presents the KPI for our Logistics segment for the periods indicated.

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating ratio (1)

 

94.3

%

 

93.2

%

 

92.8

%

 

94.9

%

(1)

Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level.

Schneider National, Inc.
Reconciliation of Non-GAAP Financial Measures
(unaudited)

In this earnings release, we present the following non-GAAP financial measures: (1) revenues (excluding fuel surcharge), (2) adjusted income from operations, (3) adjusted operating ratio, (4) adjusted net income, and (5) adjusted diluted earnings per share. We also provide reconciliations of these measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Management believes the use of each of these non-GAAP measures assists investors in understanding our business by (1) removing the impact of items from our operating results that, in our opinion, do not reflect our core operating performance, (2) providing investors with the same information our management uses internally to assess our core operating performance, and (3) presenting comparable financial results between periods. In addition, in the case of revenues (excluding fuel surcharge), we believe the measure is useful to investors because it isolates volume, price, and cost changes directly related to industry demand and the way we operate our business from the external factor of fluctuating fuel prices and the programs we have in place to manage such fluctuations. Fuel-related costs and their impact on our industry are important to our results of operations, but they are often independent of other, more relevant factors affecting our results of operations and our industry.

Although we believe these non-GAAP measures are useful to investors, they have limitations as analytical tools and may not be comparable to similar measures disclosed by other companies. You should not consider the non-GAAP measures in this report in isolation or as substitutes for, or alternatives to, analysis of our results as reported under GAAP. The exclusion of unusual or infrequent items or other adjustments reflected in the non-GAAP measures should not be construed as an inference that our future results will not be affected by unusual or infrequent items or by other items similar to such adjustments. Our management compensates for these limitations by relying primarily on our GAAP results in addition to using the non-GAAP measures.

Adjustments to arrive at non-GAAP measures are made at the enterprise level, with the exception of fuel surcharge revenues, which are not included in segment revenues.

Revenues (excluding fuel surcharge)

We define “revenues (excluding fuel surcharge)” as operating revenues less fuel surcharge revenues, which are excluded from revenues at the segment level. Included below is a reconciliation of operating revenues, the most closely comparable GAAP financial measure, to revenues (excluding fuel surcharge).

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

(in millions)

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating revenues

 

$

1,561.7

$

1,574.8

 

$

6,604.4

 

$

5,608.7

Less: Fuel surcharge revenues

 

 

214.0

 

 

130.0

 

 

 

862.5

 

 

 

444.8

 

Revenues (excluding fuel surcharge)

 

$

1,347.7

 

$

1,444.8

 

 

$

5,741.9

 

 

$

5,163.9

 


Contacts

Steve Bindas, Director of Investor Relations
920-357-SNDR
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