Business Wire News

Two high-performing Caterpillar dealers will join forces to create stronger service and support to their customers in the Southwest

HENDERSON, Nev.--(BUSINESS WIRE)--Cashman Equipment Company, founded by James Cashman Sr. during the construction of Hoover Dam in 1931, is announcing that our Company will be acquired by our neighboring Cat Dealer to the South, Empire Southwest, of Arizona at the end of December 2022. During our long tenure of ninety-one years, our team has grown to over 1100 highly talented and dedicated employees, partnering with our customers to find the best solutions for their business needs.


The Company expanded from Southern Nevada to include most of Northern Nevada and portions of several California border counties in the early 60s. Cashman has been led over these nine decades by James Cashman Sr., James Cashman Jr., James Cashman III and most recently, during the last twenty-seven years, by MaryKaye Cashman. The Company is one of the most successful and highly respected Cat Dealerships in North America today, supplying machinery, service, parts, power generation, pumps and rental options, across the full Cat product line.

We are pleased and confident knowing that our customers will continue to receive superior support for all their construction, mining, landscaping and industrial needs from Empire Southwest, as we know they share our values and commitment to providing the Best Customer Experience. Empire Southwest is also a third generation, family owned business, and was founded in 1950.

Going forward, we are confident that the combination of these two great companies will provide new synergies, great customer satisfaction and very importantly, even more options and enhanced capabilities.

About Cashman Equipment

Founded in 1931 by James "Big Jim" Cashman, Cashman Equipment is one of the highest-rated Cat equipment dealers in North America. A full-service dealership, Cashman provides new and used equipment for sale and rental, as well as high-quality parts and service to construction, paving, mining, truck engine, technology, and power system industries throughout Nevada and the Eastern Sierras. For more information, visit cashmanequipment.com.

About Empire Southwest

Empire Southwest is an authorized Cat® dealer for heavy equipment and power systems throughout Arizona and Southeastern California. In addition, Empire is a provider of Tier 1 commercial solar products and microgrids, an authorized AGCO equipment dealer representing Fendt and Massey Ferguson, an authorized Trimble dealer through SITECH Southwest, and a premiere distributor of Maintainer, Trail King and other leading truck and trailer brands. The third-generation, family-owned company was founded in 1950 and has over 2,300 employees across 22 locations. Learn more about Empire's products, services, partnerships, and careers at empirecat.com.


Contacts

Darin Perry
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DUBLIN--(BUSINESS WIRE)--The "Waste Heat to Power Global Market Report 2022" report has been added to ResearchAndMarkets.com's offering.


The global waste heat to power market is expected to grow from $13.44 billion in 2021 to $15.67 billion in 2022 at a compound annual growth rate (CAGR) of 16.6%. The waste heat to power market is expected to grow to $25.65 billion in 2026 at a CAGR of 13.1%.

The waste heat to power market consists of sales of waste heat to power products by entities (organizations, sole traders, and partnerships) that are involved in capturing heat discharged by an existing process and using it to create power. Waste heat is energy produced in industrial operations that are not consumed and are thus lost, thrown away, or discharged into the environment.

Steel mills, refineries, glass furnaces, and cement kilns, among other energy-intensive industrial operations, all emit hot exhaust gases and waste streams that can be used to generate power using well-established technology. It reduces pollution, equipment size, and auxiliary energy consumption.

The main types of products in waste heat to power are the steam Rankine cycle, organic Rankine cycle, and Kalina cycle. The steam Rankine cycle is a simplified thermodynamic cycle of a constant-pressure heat engine that turns some heat into mechanical work. Heat is provided externally to a closed loop in this cycle, which typically uses water (in both liquid and vapor phases) as the working fluid.

The various application includes preheating, steam, and electricity generation, among others, and are used by several sectors such as petroleum refining, cement industry, heavy metal production, chemical industry, pulp and paper, food and beverage, glass industry, others.

Europe was the largest region in the waste heat to power market in 2021. The regions covered in waste heat to power market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The growth in the industrial sector is expected to propel the growth of waste heat to the power market going forward. Capital investment, labor input, financial investment, and technological innovation are the major factors influencing industrial growth. Non-metallic mineral production, petroleum refining, and heavy metal production are some of the key application areas with considerable waste heat recovery potential.

For instance, according to the U.S. Energy Information Administration, in the year 2020, the industrial sector accounted for 36% of the total United States' end-use energy consumption and 33% of total U.S. energy consumption. Also, according to new Central Statistics Office data, factory output in the non-metallic mineral products industry increased by 8.0% in February 2020 compared to February 2019.

The non-metallic mineral products industry grew faster than overall industrial output, which increased by 4.5%. Nonmetallic mineral products accounted for 4.09% of total industrial production (IIP) and contributed 0.33% to IIP growth. Therefore, the growth in the industrial sector is driving the growth of waste heat to the power market.

The development of Lead (PB) free materials for waste power recovery is a key trend in the market. Till 2020, Lead was the only major element used in waste heat recovery systems which is limiting the mass applications of waste heat. As a result, scientists are working on novel lead-free materials to recover waste heat with seemingly different qualities into a single material: the strong electrical conductivity of metals, the great thermoelectric sensitivity of semiconductors, and the poor thermal conductivity of glasses.

For instance, in February 2021, scientists from the Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR), an autonomous institution of the Department of Science and Technology (DST), Government of India, have discovered a lead-free material called Cadmium (Cd) doped Silver Antimony Telluride (AgSbTe2) that can efficiently recover electricity from 'waste heat,' signaling a paradigm shift in the thermoelectric puzzle.

In February 2021, Siemens Energy AG, a Germany-based energy company has signed an agreement with TC Energy Corporation for the commission of a waste heat-to-power plant installation in Alberta, Canada, for an undisclosed amount. As part of the deal, Siemens Energy will build and run the facility, with the possibility of TC Energy regaining ownership at a later date.

The facility would capture waste heat from a gas-fired turbine operating at a pipeline compression station and will further convert it into emissions-free power. The electricity generated will be fed back into the system, resulting in an estimated 44,000 tons of greenhouse gas reductions each year. TC Energy Corporation is a Canada-based natural gas company.

The countries covered in the waste heat to power market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

Major players in the waste heat to power market are

  • ABB Ltd.
  • Amec Foster Wheeler Ltd.
  • Cnbm Group
  • Cochran Ltd.
  • Dalian East New Energy Development Co. Ltd.
  • Durr Group
  • Electratherm
  • E-Rational
  • Forbes Marshall
  • General Electric
  • Getec Energie Holding GmbH
  • Ihi Corp.
  • Mitsubishi Power Ltd.
  • Ormat Technologies
  • Rentech Boiler Systems Inc.
  • Siemens
  • Thermax Limited
  • Viessmann Limited
  • Ac Boilers Spa
  • Bosch Thermotechnology
  • Walchandnagar

Key Topics Covered:

1. Executive Summary

2. Waste Heat to Power Market Characteristics

3. Waste Heat to Power Market Trends And Strategies

4. Impact Of COVID-19 On Waste Heat to Power

5. Waste Heat to Power Market Size And Growth

5.1. Global Waste Heat to Power Historic Market, 2016-2021, $ Billion

5.1.1. Drivers Of The Market

5.1.2. Restraints On The Market

5.2. Global Waste Heat to Power Forecast Market, 2021-2026F, 2031F, $ Billion

5.2.1. Drivers Of The Market

5.2.2. Restraints On the Market

6. Waste Heat to Power Market Segmentation

6.1. Global Waste Heat to Power Market, Segmentation By Product, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion

  • Steam Rankine Cycle
  • Organic Rankine Cycle
  • Kalina Cycle

6.2. Global Waste Heat to Power Market, Segmentation By Application, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion

  • Preheating
  • Steam And Electricity Generation
  • Other Applications

6.3. Global Waste Heat to Power Market, Segmentation By End Use, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion

  • Petroleum Refining
  • Cement Industry
  • Heavy Metal Production
  • Chemical Industry
  • Pulp And Paper
  • Food And Beverage
  • Glass Industry
  • Other End Uses

7. Waste Heat to Power Market Regional And Country Analysis

7.1. Global Waste Heat to Power Market, Split By Region, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion

7.2. Global Waste Heat to Power Market, Split By Country, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion

For more information about this report visit https://www.researchandmarkets.com/r/upf380


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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Two high-performing Caterpillar dealers will join forces to create stronger service and support to their clients in the Southwest

MESA, Ariz. & HENDERSON, Nev.--(BUSINESS WIRE)--Arizona-based Empire Southwest (“Empire”), the Cat dealer serving the service territory of Arizona and Southeastern California, has agreed to acquire Nevada-based Cashman Equipment (“Cashman”), the Cat dealer serving the service territory of Nevada and parts of Eastern California.


Empire and Cashman are both third-generation, family-owned Cat dealers. They share similar rich histories, values-driven corporate cultures, and strong reputations for exceptional customer and community service. Empire, which was founded in 1950, operates 22 dealership locations; Cashman, founded in 1931, operates 7 locations. Together, the combined dealership will be positioned to provide even stronger service and solutions to clients in the construction, mining, energy, agricultural, and industrial sectors as well as expanded capabilities to serve one of the country’s fastest growing areas.

Jeff Whiteman, Empire President, and CEO, said, “We have tremendous respect and admiration for MaryKaye Cashman and her team. Cashman is a very high performing dealership that has been dedicated to their people, customers, and communities for generations. We are honored and humbled by the trust MaryKaye and Caterpillar have placed in us. Like Empire, the Cashman organization is full of amazing men and women who are committed to making things better. I’m confident that the new combined team will take the business in both service territories to new levels of client success by building on the industry-leading strengths of both dealerships.”

MaryKaye Cashman, Owner, CEO & Chairman of Cashman Equipment, said, “Since taking the reins of the company in 1995, I have dedicated my life to Cashman Equipment and our fantastic team, which has done such exceptional work supporting our customers and rallying around me in my unique and new role as the head of a Cat dealership. Empire has long had a reputation for excellence among Cat dealers and, as I pursue a new chapter in my life, it is an exciting opportunity for our teams to be able to join forces. I have known the Whiteman family for decades and appreciate not just what their company does but how they have built it – with honesty, respect, and integrity, and with employees and customers always at the center. Our cultures and values share a lot of common ground, and I know that our team members will thrive in this new, combined business that will deliver even more for the customers and communities we serve.”

This transaction is expected to close in December 2022. The combined company will be led by Empire’s current CEO Jeff Whiteman and will continue to provide exceptional support to its clients while focusing on growing the business and attracting great people in one of the country’s fastest growing regions. All Cashman and Empire employees will be important for the continued success of the combined company.

About Empire Southwest

Empire Southwest is an authorized Cat® dealer for heavy equipment and power systems throughout Arizona and Southeastern California. In addition, Empire is a provider of Tier 1 commercial solar products and microgrids, an authorized AGCO equipment dealer representing Fendt and Massey Ferguson, an authorized Trimble dealer through SITECH Southwest, and a premiere distributor of Maintainer, Trail King and other leading truck and trailer brands. The third-generation, family-owned company was founded in 1950 and has over 2,300 employees across 22 locations. Learn more about Empire's products, services, partnerships, and careers at empirecat.com.

About Cashman Equipment

Founded in 1931 by James "Big Jim" Cashman, Cashman Equipment is one of the highest-rated Cat equipment dealers in North America. A full-service dealership, Cashman provides new and used equipment for sale and rental, as well as high-quality parts and service to construction, paving, mining, truck engine, technology, and power system industries throughout Nevada and the Eastern Sierras. For more information, visit cashmanequipment.com.


Contacts

Christy Van Quathem
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AUSTIN, Texas--(BUSINESS WIRE)--USA Compression Partners, LP (NYSE: USAC) (“USA Compression”) today announced that its senior management will attend the RBC Midstream and Energy Infrastructure Conference in Dallas, Texas. Senior management expects to participate in a series of meetings with members of the investment community on November 17, and presentation materials used during these meetings will be posted to USA Compression’s website on November 16. Please visit the Investor Relations section of the website at usacompression.com under “Presentations.”


About USA Compression Partners, LP

USA Compression Partners, LP is a growth-oriented Delaware limited partnership that is one of the nation’s largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USA Compression partners with a broad customer base composed of producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression focuses on providing natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation applications. More information is available at usacompression.com.


Contacts

USA Compression Partners, LP
Mike Pearl, CFO
(832) 823-7306

Julie McEwen, Controller
(512) 369-1389
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WHITE PLAINS, N.Y.--(BUSINESS WIRE)--OPAL Fuels Inc. (“OPAL Fuels” or the “Company”) (Nasdaq: OPAL), a leading vertically integrated producer and distributor of renewable natural gas (RNG), today announced financial and operating results for the three and nine months ended September 30, 2022.


Financial Highlights

  • Revenues for the three and nine months ended September 30, 2022, were $66.6 million and $168.8 million, respectively, up 41% and 61%, compared to prior-year periods.
  • Net income for the three and nine months ended September 30, 2022, was $5.4 million and $0.6 million, respectively, compared to $0.8 million and $19.0 million, in the same period last year.
  • Adjusted EBITDA1 for the three and nine months ended September 30, 2022, was $25.5 million and $40.6 million, respectively, up 130% and 78%, compared to prior-year periods.

Full Year 2022 Guidance Expectations

  • Estimated Adjusted EBITDA2 for the full year 2022 is anticipated to range between $60.0 million and $63.0 million.
  • 2022 RNG production for the full year 2022 is anticipated to range between 2.2 million MMBtu and 2.3 million MMBtu.3

1 Adjusted EBITDA is a non-GAAP measure. A reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA has been provided in the financial tables included in this press release. An explanation of this measure and how it is calculated is also included below under the heading “Non-GAAP Financial Measures."

2 Estimated Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of the full year estimated Adjusted EBITDA to net income (loss), the closest GAAP measure, cannot be provided due to the inherent difficulty in quantifying certain amounts including but not limited to changes in fair value of the derivative instruments and other items, due to a number of factors including the unpredictability of underlying price movements, which may be significant.

3 Reflects OPAL Fuels proportional ownership with respect to RNG projects owned with joint venture partners.

Management Commentary

Adam Comora, Co-CEO of OPAL Fuels, commented, “We are pleased to report our third quarter earnings. First, and most importantly we continue to execute on our strategic goals and operational priorities. As of today, six RNG projects are in operation and seven are in construction. These construction projects are expected to come online throughout 2023 and into 2024. Second, we are on a solid trajectory towards realizing the significant long-term earnings power of our company. We also continue to grow our development portfolio adding to our pipeline of future RNG projects further supporting our long-term growth.”

Jonathan Maurer, Co-CEO of OPAL Fuels, stated, “The passage of the Inflation Reduction Act and recent industry consolidation are clear endorsements of the RNG industry and the strength of our integrated business model. Over OPAL Fuels' long operating history in this sector, never has a period of positive momentum existed like the present. Our portfolio of RNG projects combined with our integrated downstream operations enable us to offer a differentiated value proposition that resonates with our customers and partners.”

Operational Highlights

  • Produced 0.6 million and 1.6 million MMBtu of RNG, for the three and nine months ended September 30, 2022, respectively, up 50% and 33%, compared to prior-year periods.
  • Sold 7.4 million and 20.5 million GGEs of RNG as transportation fuel for the three and nine months ended September 30, 2022, respectively, up 17% and 45%, compared to prior- year periods.
  • Delivered 30.7 million and 82.6 million GGEs through a combination of owned station fuel provider agreements and third-party service and dispensing agreements for the three and nine months ended September 30, 2022, respectively, up 33% and 20%, compared to prior-year periods.
  • During the first nine months of 2022, the Pine Bend, New River and Noble Road RNG projects commenced commercial operations, bringing OPAL Fuels' share of annual nameplate capacity across our six RNG projects in operation to 3.7 million MMBtu for landfill projects and 0.2 million MMBtu for dairy projects.4

4 Nameplate capacity is the annual design output for each facility and may not reflect actual production from the projects, which depends on many variables including, but not limited to, quantity and quality of the biogas, operational up-time of the facility, and actual productivity of the facility.

Construction Update

  • The Company has begun construction on a renewable power to RNG conversion project in the Northeast bringing to seven the number of RNG facilities under construction as of September 30, 2022, with anticipated aggregate nameplate capacity of 4.2 million MMBtu of landfill biogas and 0.6 million MMBtu of dairy biogas.
  • Received RIN certification for New River in October and anticipate receiving RIN certification for Pine Bend by end of 2022.
  • Emerald and Prince William RNG projects are expected to commence commercial operations by mid-2023 and the Sapphire RNG project by early 2024. OPAL Fuels’ share of annual nameplate capacity for these landfill projects is 3.8 million MMBtu.
  • Construction is progressing at two Central Valley California dairy RNG projects with commercial operations anticipated in 2024.

Development Update

  • The Company's Advanced Development Pipeline5 comprises 16 projects representing 7.4 million MMBtu of feedstock biogas per year consisting of 6.2 million MMBtu of landfill biogas, 0.5 million MMBtu dairy biogas, and 0.7 million MMBtu of food waste and wastewater biogas.6
  • The Company is evaluating nine of our existing renewable power projects comprising 3.2 million MMBtu per year of landfill biogas in light of the incentives in the Inflation Reduction Act.
  • The Company's total number of RNG dispensing stations grew from 69 at December 31, 2021, to 123 at September 30, 2022.

5 The Company's Advanced Development Pipeline comprises projects that have been qualified and are reasonably expected to be in construction within the next twelve to eighteen months. The associated MMBtu associated with these projects is presented as available biogas resource and assumes a conversion ratio of 90% for output gas.

6 OPAL Fuels proportional share with respect to RNG projects owned with joint venture partners.

2022 Guidance

All guidance is current as of the date of this release and is subject to change.

($ millions, except production data)

 

Full Year 2022

 

 

Low Est.

 

High Est.

Adjusted EBITDA

 

$60

-

$63

RNG Production (million MMBtu)7

 

2.2

-

2.3

We anticipate providing guidance for 2023 concurrently with our results for fiscal 2022.

7 RNG Production reflects OPAL Fuels' proportional share with respect to RNG projects owned with joint venture partners.

Results of Operations

($ thousands of dollars)

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2022

 

2021

 

2022

 

2021

Revenue

 

 

 

 

 

 

 

 

RNG Fuel

 

$

32,381

 

$

17,892

 

$

83,196

 

$

37,066

Fuel Station Services

 

 

23,227

 

 

18,387

 

 

55,524

 

 

35,560

Renewable Power

 

 

10,942

 

 

10,905

 

 

30,094

 

 

32,342

Total Revenue

 

$

66,550

 

$

47,184

 

$

168,814

 

$

104,968

 

 

 

 

 

 

 

 

 

Net income

 

$

5,369

 

$

773

 

$

560

 

$

18,950

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

25,462

 

$

11,079

 

$

40,593

 

$

22,785

 

 

 

 

 

 

 

 

 

RNG Fuel volume produced (Million MMBtus)

 

 

0.6

 

 

0.4

 

 

1.6

 

 

1.2

RNG Fuel volume sold (Million GGEs)

 

 

7.4

 

 

6.3

 

 

20.5

 

 

14.1

Total volume delivered (Million GGEs)

 

 

30.7

 

 

23.1

 

 

82.6

 

 

68.8

Revenue for the three months ended September 30, 2022, were $66.6 million, an increase of 41%, or $19.4 million, compared to $47.2 million in the prior-year period. While each business segment experienced growth, the increase was primarily driven by the RNG Fuel segment. Total revenues for the nine months ended September 30, 2022, were $168.8 million compared to $105.0 million in the prior-year period.

Net income for the three months ended September 30, 2022, was $5.4 million, compared to $0.8 million in the prior-year period. The third quarter benefited from higher brown gas prices as well as higher sales of environmental attributes as a result of Noble Road having achieved RIN certification in the second quarter and the release of higher levels of stored gas. We also benefited from approximately $2.5 million of one-time income from an equity method investment that was recognized in the third quarter. Net income for the nine months ended September 30, 2022, was $0.6 million compared to $19.0 million in the prior-year period. The nine month period ended September 30, 2022, reflects the impacts of higher transaction costs associated with becoming a public company offset by higher brown gas prices and higher RIN pricing under forward sales contracts and the $2.5 million one-time benefit from an equity method investment, while the prior year period includes a $19.8 million one-time gain associated with the acquisition of our remaining interest in the Imperial and Greentree projects in May, 2021.

Adjusted EBITDA(1) for the three months ended September 30, 2022, was $25.5 million, reflecting an increase of 130%, compared to $11.1 million for the prior-year period. Adjusted EBITDA for the nine months ended September 30, 2022, was $40.6 million compared to $22.8 million in the prior-year period.

Timing of Sales of RINs for Gas in Storage

At September 30, 2022, the Company had biogas in storage from second and third quarter production that was pending certification for generation of environmental credits from New River and Pine Bend. Upon completion of certification, which occurred in October for New River and is expected prior to year-end for Pine Bend, this stored biogas is anticipated to generate approximately 2.4 million RINs. These RINs will be monetized under forward sales contracts as they are generated, at a weighted-average price of $3.20.

Under generally accepted accounting principles (“GAAP”), the timing of revenue recognition for stand-alone RIN sales contracts is tied to the delivery of the RIN to our counterparties and not the production of the RIN. Of the $7.5 million that is anticipated to be generated from these RIN sales, $6.6 million is allocated to third quarter Adjusted EBITDA and represents the volume of the stored biogas produced in the third quarter. The remainder would have been allocated to the second quarter.

Segment Revenues

RNG Fuel

Revenue from RNG Fuel increased was $32.4 million, an increase of $14.5 million, or 81%, for the three months ended September 30, 2022, compared to the three months ended September 30, 2021. This change was attributable primarily due to an increase in RIN sales and brown gas sales driven by additional volumes and higher prices.

For the nine months ended September 30, 2022, revenue from RNG Fuel increased by $46.1 million, or 124%, compared to the nine months ended September 30, 2021. $28.0 million of this increase was attributable primarily to the impact of nine months of Beacon revenues in 2022 versus only five months in 2021. The remainder of the increase is due to higher sales of environmental credits, higher brown gas sales and incremental fuel dispensing primarily due to increased volumes.

Fuel Station Services

Revenue from Fuel Station Services was $23.2 million an increase of $4.8 million, or 26%, for the third quarter of 2022 compared to the three months ended September 30, 2021. This change was primarily attributable to additional fuel station projects and incremental service volumes from four new fueling service sites.

For the nine months ended September 30, 2022, revenue from Fuel Station Services increased by $20.0 million, or 56% compared to the nine months ended September 30, 2021. This was primarily attributable to increased fuel station construction projects.

Renewable Power

Revenue from Renewable Power was $10.9 million flat for the three months ended September 30, 2022, compared to the third quarter 2021.

For the nine months ended September 30, 2022, revenue from Renewable Power decreased by $2.2 million, or 7%, compared to the third quarter 2021. This change was attributable primarily to a positive mark to market change in commodity swaps.

Liquidity

As of September 30, 2022, our liquidity consisted of cash and cash equivalents including restricted cash of $71.4 million, plus an additional $146.9 million in short-term investments maturing within 90 days. Additionally, we entered into an aggregate $105 million senior secured credit facility to be used to fund up to $100 million of the construction costs of a portfolio of fully- and jointly-owned RNG projects owned, either in full or through a joint venture with a third party over a two year delayed draw period, with the remaining funds to be maintained in the debt service reserve account. No funds have been drawn under this facility. During the quarter three months ended September 30, 2022, we drew $12.5 million under the OPAL term loan, and recently. Subsequent to quarter-end, we drew an additional $12.5 million. We also entered into an amendment to this term loan which extended the commitment available date to March 2023 for the remaining $10.0 million.

We believe that our available cash, anticipated cash flows from operations, available lines of credit under existing debt facilities, and access to expected sources of capital will be sufficient to meet our existing commitments and funding needs.

Capital Expenditures

During the third quarter, OPAL Fuels invested $24.4 million across six RNG projects and 21 owned fueling stations in construction as compared to $19.2 million as of the comparable period in 2021. On a year-to-date basis, we have invested $61.8 million compared to $41.8 million for the nine months ended September 30, 2021.8

8 Capital Expenditures reflect net investment in RNG projects net of proceeds received from our non-redeemable non-controlling interests. We received $6.2 million and $6.4 million from such parties for the three months ended September 30, 2022 and 2021, respectively. We received $23.1 million and $15.2 million from these parties for the nine months ended September 30, 2022 and 2021, respectively. These amounts have been excluded to reflect only capital expenditures attributable to OPAL Fuels.

Earnings Call

A webcast to review OPAL Fuels’ Third Quarter 2022 results is being held tomorrow, November 15, 2022 at 11:00AM Eastern Time.

Materials to be discussed in the webcast will be available before the call on the Company's website.

Participants may access the call at https://edge.media-server.com/mmc/p/5oahi7s2, and a live webcast will also be available at https://investors.opalfuels.com/news-events/events-presentations.

Glossary of terms

“Environmental Attributes” refer to federal, state, and local government incentives in the United States, provided in the form of Renewable Identification Numbers, Renewable Energy Credits, Low Carbon Fuel Standard credits, rebates, tax credits and other incentives to end users, distributors, system integrators and manufacturers of renewable energy projects that promote the use of renewable energy.

“GGE” refers to Gasoline gallon equivalent. It is used to measure the total volume of RNG production that OPAL Fuels expects to dispense each year. The conversion ratio is 1MMBtu equal to 7.74 GGE.

“LFG” refers to landfill gas.

“MMBtu” refers to British thermal units.

“Renewable Power” refers to electricity generated from renewable sources.

“RNG” refers to renewable natural gas.

“D3” refers to cellulosic biofuel with a 60% GHG reduction requirement.

“RIN” refers to Renewal Identification Numbers.

“EPA” refers to Environmental Protection Agency.

About OPAL Fuels Inc.

OPAL Fuels Inc. (Nasdaq: OPAL) is a leading vertically integrated renewable fuels platform involved in the production and distribution of renewable natural gas (RNG) for the heavy-duty truck market. RNG is a proven low-carbon fuel that is rapidly decarbonizing the transportation industry now while also significantly reducing fuel costs for fleet owners. OPAL Fuels captures harmful methane emissions at the source and recycles the trapped energy into a commercially viable, lower-cost alternative to diesel fuel. The company also develops, constructs, and services RNG and hydrogen fueling stations. As a producer and distributor of carbon-reducing fuel for heavy-duty truck fleets for more than a decade, OPAL Fuels delivers complete renewable solutions to customers and production partners. To learn more about OPAL Fuels and how it is leading the effort to capture North America’s harmful methane emissions and decarbonize the transportation industry, please visit www.opalfuels.com and follow the company on LinkedIn and Twitter at @OPALFuels.

Forward-Looking Statements

Certain statements in this communication may be considered forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and generally relate to future events or OPAL Fuels’ (the “Company”) future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, as the case may be, are inherently uncertain and subject to material change. Factors that may cause actual results to differ materially from current expectations include various factors beyond management’s control, including but not limited to general economic conditions and other risks, uncertainties and factors set forth in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in the Company's quarterly report on Form 10Q filed on November 14, 2022, and other filings the Company makes with the Securities and Exchange Commission. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Disclaimer

This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

 

OPAL FUELS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except per share data)

 

 

September 30,
2022

 

December 31,
2021

 

(Unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents (includes $10,045 and $1,991 at September 30, 2022 and December 31, 2021, respectively, related to consolidated VIEs)

$

25,286

 

 

$

39,314

Accounts receivable, net (includes $1,129 and $40 at September 30, 2022 and December 31, 2021, respectively, related to consolidated VIEs)

 

36,660

 

 

 

25,391

Restricted cash - current (includes $7,623 and $— at September 30, 2022 and December 31, 2021, respectively, related to consolidated VIEs)

 

41,419

 

 

 

Short term investments ( includes $15,411 and $— at September 30, 2022 and December 31, 2021, respectively, related to consolidated VIEs)

 

146,936

 

 

 

Fuel tax credits receivable

 

3,442

 

 

 

2,393

Contract assets

 

14,676

 

 

 

8,484

Parts inventory

 

6,570

 

 

 

5,143

Environmental credits held for sale

 

1,224

 

 

 

386

RNG inventory

 

2,094

 

 

 

Prepaid expense and other current assets (includes $268 and $113 at September 30, 2022 and December 31, 2021, respectively, related to consolidated VIEs)

 

6,513

 

 

 

5,482

Derivative financial assets, current portion

 

1,435

 

 

 

382

Total current assets

 

286,255

 

 

 

86,975

Capital spares

 

3,333

 

 

 

3,025

Property, plant, and equipment, net (includes $50,099 and $27,794 at September 30, 2022 and December 31, 2021, respectively, related to consolidated VIEs)

 

250,355

 

 

 

169,770

Investment in other entities

 

48,708

 

 

 

47,150

Note receivable

 

 

 

 

9,200

Note receivable - variable fee component

 

1,865

 

 

 

1,656

Deferred financing costs

 

3,522

 

 

 

2,370

Other long-term assets

 

489

 

 

 

489

Intangible assets, net

 

2,266

 

 

 

2,861

Restricted cash - non-current (includes $2,867 and $1,163 at September 30, 2022 and December 31, 2021, respectively, related to consolidated VIEs)

 

4,655

 

 

 

2,740

Goodwill

 

54,608

 

 

 

54,608

Total assets

$

656,056

 

 

$

380,844

Liabilities and Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable (includes $2,783 and $544 at September 30, 2022 and December 31, 2021, respectively, related to consolidated VIEs)

 

5,798

 

 

 

12,581

Accounts payable, related party

 

489

 

 

 

166

Fuel tax credits payable

 

2,668

 

 

 

1,978

Accrued payroll

 

5,266

 

 

 

7,652

Accrued capital expenses (includes $1,493 and $1,722 at September 30, 2022 and December 31, 2021, respectively, related to consolidated VIEs)

 

9,284

 

 

 

5,517

Accrued expenses and other current liabilities

 

16,063

 

 

 

7,220

Contract liabilities

 

6,750

 

 

 

9,785

Senior Secured Credit Facility - term loan, current portion, net of debt issuance costs

 

70,179

 

 

 

73,145

Senior Secured Credit Facility - working capital facility, current portion

 

7,500

 

 

 

7,500

OPAL Term Loan, current portion

 

28,432

 

 

 

13,425

Sunoma loan, current portion (includes $— and $756 at September 30, 2022 and December 31, 2021, respectively, related to consolidated VIEs)

 

 

 

 

756

Convertible Note Payable

 

27,964

 

 

 

Municipality loan

 

121

 

 

 

194

Derivative financial liability, current portion

 

4,648

 

 

 

992

Other current liabilities

 

832

 

 

 

374

Asset retirement obligation, current portion

 

1,586

 

 

 

831

Total current liabilities

 

187,580

 

 

 

142,116

Asset retirement obligation, non-current portion

 

4,382

 

 

 

4,907

OPAL Term Loan

 

60,816

 

 

 

59,090

Convertible Note Payable

 

 

 

 

58,710

Sunoma loan, net of debt issuance costs (includes $22,080 and $16,199 at September 30, 2022 and December 31, 2021, respectively, related to consolidated VIEs)

 

22,080

 

 

 

16,199

Municipality loan

 

 

 

 

84

Derivative warrant liabilities

 

22,410

 

 

 

Earn out liabilities

 

39,500

 

 

 

Other long-term liabilities

 

597

 

 

 

4,781

Total liabilities

 

337,365

 

 

 

285,887

Commitments and contingencies

 

 

 

Redeemable preferred non-controlling interests

 

135,303

 

 

 

30,210

Redeemable non-controlling interests

 

1,222,657

 

 

 

63,545

Stockholders' (deficit) equity

 

 

 

Class A common stock, $0.0001 par value, 337,852,251 shares authorized as of September 30, 2022; 25,671,390 and 0 shares, issued and outstanding at September 30, 2022 and December 31, 2021, respectively

 

2

 

 

 

Class B common stock, $0.0001 par value, 157,498,947 shares authorized as of September 30, 2022; None issued and outstanding as of September 30, 2022 and December 31, 2021

 

 

 

 

Class C common stock, $0.0001 par value, 154,309,729 shares authorized as of September 30, 2022; None issued and outstanding as of September 30, 2022 and December 31, 2021

 

 

 

 

Class D common stock, $0.0001 par value, 154,309,729 shares authorized as of September 30, 2022; 144,399,037 issued and outstanding at September 30, 2022 and December 31, 2021

 

14

 

 

 

14

Additional paid-in capital

 

 

 

 

Accumulated deficit

 

(1,066,137

)

 

 

Accumulated other comprehensive income

 

178

 

 

 

Total Stockholders' (deficit) equity attributable to the Company

 

(1,065,943

)

 

 

14

Non-redeemable non-controlling interests

 

26,674

 

 

 

1,188

Total Stockholders' (deficit) equity

 

(1,039,269

)

 

 

1,202

Total liabilities, Redeemable preferred, Redeemable non-controlling interests and Stockholders' (deficit) equity

$

656,056

 

 

$

380,844

 

Contacts

Media
Jason Stewart
Senior Director Public Relations & Marketing
914-421-5336
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Investors
Todd Firestone
Vice President Investor Relations & Corporate Development
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AKRON, Ohio--(BUSINESS WIRE)--$BW--Babcock & Wilcox (B&W) (NYSE: BW) announced today that its Babcock & Wilcox Construction Co., LLC (BWCC) subsidiary was awarded more than $42 million in significant upgrade and maintenance projects within the electrical utility, pulp & paper, and oil & gas segments in North America.

“We’ve seen continued strong demand for our Thermal aftermarket offerings and remain committed to supporting our customers through our portfolio of best-in-class products and services,” said Chris Riker, Senior Vice President, Thermal. “The demand for outage services, plant maintenance and parts supply is high, particularly for the North American utility and heavy industrial fleet.”

BWCC Vice President & General Manager Mike Hidas said, “We have a substantial backlog in our construction business for the months ahead and this new set of bookings further strengthens that as we head into 2023.“

“We’re pleased to provide our significant experience and expertise to meet our customers’ needs and look forward to executing these projects safely and profitably, while achieving our Target Zero safety goal of zero injuries or incidents,” Hidas said.

BWCC’s projects and services include package boiler installations, industrial boiler component replacements, repairs, maintenance and new services. BWCC also provides upgrades and enhancement services to utility customers in North America. BWCC is a single-source supplier of a full range of field construction, construction management and maintenance services with extensive experience — from large, complex projects to small unanticipated quick turnaround repair needs for any facility.

About Babcock & Wilcox

Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises, Inc. is a leader in energy and environmental products and services for power and industrial markets worldwide. Follow us on LinkedIn and learn more at babcock.com.

Forward-Looking Statements

B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to contracts for upgrade and maintenance projects customers in North America. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties. For a more complete discussion of these risk factors, see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. We caution readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and we undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.


Contacts

Investor Contact:
Investor Relations
Babcock & Wilcox
704.625.4944
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Media Contact:
Ryan Cornell
Public Relations
Babcock & Wilcox
330.860.1345
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Rep. Mikie Sherrill and Bloomfield Leaders Visit Store to Celebrate New Electric Vehicle Charging Stalls

BLOOMFIELD, N.J.--(BUSINESS WIRE)--The newly renovated Brookdale ShopRite today hosted a ribbon cutting ceremony to debut an EVgo Inc. (NASDAQ: EVGO) (EVgo) electric vehicle (EV) fast charging station at its 1409 Broad Street parking lot in Bloomfield, NJ.



This EVgo charging station features charging from 100kW up to 350kW and can serve four vehicles simultaneously. The station was supported with funding through the PSE&G Electric Vehicle Charging Program, which is designed to support the deployment of EV chargers for a range of customers. This latest launch is part of a push to install and offer charging stations in communities where ShopRite stores operate. EVgo is one of the nation’s largest public fast charging networks for EVs and is powered by 100% renewable energy.

“We are excited to work with EVgo to unveil this new charging station for our ShopRite customers and the people of Bloomfield,” said Neil Greenstein, a third-generation grocer and owner and operator of Brookdale ShopRite. “We recently completed an extensive renovation of the Brookdale store, and the next step was providing a fast electric vehicle charging station in our parking lot. At ShopRite, we are always looking for ways to provide the best possible shopping experience for our customers, and making it easier for people to charge their electric vehicles is part of that commitment.”

A family-owned business that has served the local community for more than 50 years, Brookdale ShopRite completed an extensive remodel earlier this year that included storewide upgrades, new departments and fresh food offerings, and the installation of new energy efficient LED lighting and refrigerated cases.

The new EVgo charging station outside the store complements all the great work inside the store and is available to both customers shopping in-store and people in the community.

Greenstein was joined at the ribbon cutting by community leaders and guests, including Congresswoman Mikie Sherrill, Bloomfield Mayor Michael J. Venezia, Essex County Commissioner VP Carlos Pomares and Councilman Nicholas Joanow.

“EVgo builds charging stations in convenient locations where drivers can charge their EV while completing their everyday activities, like going to the grocery store,” said Stacy Huston, Director of Portfolio Accounts at EVgo. “As more drivers transition to electric vehicles, EVgo is excited to expand partnerships with site hosts like Brookdale ShopRite to increase access to EV charging and build more infrastructure in communities in New Jersey and beyond.”

ShopRite has supported sustainability efforts – both in stores and communities – for more than four decades and plans to add more electric vehicle charging stations to its stores, enabling additional drivers to go electric with convenient access to public charging. Wakefern Food Corp., the logistics, distribution and merchandising arm of ShopRite, is working with Wakefern Members and stores to identify locations for new charging stations.

“Wakefern’s electric vehicle charging initiative is important to the cooperative and our supermarket banners. This is an ambitious effort to work with providers to bring this critical infrastructure to many of our stores and communities,” said Andrew Pittel, manager of real estate at Wakefern.

EVgo fast charging stations are compatible with all fast-charge capable EV models currently on the market such as the Chevrolet Bolt EV, GMC Hummer EV, Kia EV6, the Nissan LEAF and more. EV drivers can easily initiate a fast charging session on the network with the EVgo app, EVgo program card (RFID card), EVgo Autocharge+ or credit card. In addition, all drivers with an EVgo account can earn points toward a charging credit through EVgo Rewards™.

The EVgo network has more than 850 public fast charging locations and serves over 60 metropolitan areas across more than 30 states, including nearly 20 EVgo fast charging locations across the Garden State. New Jersey is a leader in electric vehicle adoption on the East Coast, and public EV fast charging stations are important to helping the state reach its goal of reducing greenhouse gas emissions by 50 percent by 2030.

About ShopRite

ShopRite is the registered trademark of Wakefern Food Corp., a retailer-owned cooperative based in Keasbey, NJ, and the largest supermarket cooperative in the United States. With hundreds of supermarkets located throughout New Jersey, New York, Pennsylvania, Connecticut, Delaware and Maryland, ShopRite serves millions of customers each week. Through its ShopRite Partners In Caring program, ShopRite is dedicated to fighting hunger in the communities it serves. Since the program began in 1999, ShopRite Partners In Caring has donated nearly $62 million to food banks that support more than 2,200 worthy charities. As a title sponsor of the ShopRite LPGA Classic Presented by Acer, ShopRite has donated more than $35 million to local organizations, hospitals and community groups. For more information, please visit www.shoprite.com.

About EVgo

EVgo (Nasdaq: EVGO) is a leader in charging solutions, building and operating the infrastructure and tools needed to expedite the mass adoption of electric vehicles for individual drivers, rideshare and commercial fleets, and businesses. Since its founding in 2010, EVgo has led the way to a cleaner transportation future and its network has been powered by 100% renewable energy since 2019 through renewable energy certificates. As one of the nation’s largest public fast charging networks, EVgo’s owned and operated charging network features over 850 fast charging locations – currently serving over 60 metropolitan areas across more than 30 states – and continues to add more DC fast charging locations through EVgo eXtend™, its white label service offering. EVgo is accelerating transportation electrification through partnerships with automakers, fleet and rideshare operators, retail hosts such as grocery stores, shopping centers, and gas stations, policy leaders, and other organizations. With a rapidly growing network, robust software products and unique service offerings for drivers and partners including EVgo Optima™, EVgo Inside™, EVgo Rewards™, and Autocharge+, EVgo enables world-class charging experience where drivers live, work, travel and play.


Contacts

For Investors:
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DALLAS--(BUSINESS WIRE)--Granite Ridge Resources, Inc. (“Granite Ridge” or the “Company”) (NYSE:GRNT) today announced its third quarter 2022 pro forma financial and operating results.


Granite Ridge did not conduct any activity prior to its business combination with Executive Network Partnering Corporation (“ENPC”) and GREP Holdings LLC on October 24, 2022. Pursuant to the business combination, Granite Ridge acquired subsidiaries of funds managed by Grey Rock Energy Management, LLC, including Grey Rock Energy Fund III-A, LP, Grey Rock Energy Fund III-B, LP, and Grey Rock Energy Fund III-B Holdings, LP (collectively, the “Predecessor” or “Fund III”). The information provided in Granite Ridge’s Quarterly Report on Form 10-Q only reflects the financial condition and results of operations of the Predecessor.

For the purpose of presenting Granite Ridge’s third quarter results, Granite Ridge is presenting a summary of selected unaudited pro forma condensed combined operating and financial results for the three months ended September 30, 2022 and 2021, respectively, for Fund III, Grey Rock Energy Fund II, L.P., Grey Rock Energy Fund II-B, LP, Grey Rock Energy Fund II-B Holdings, L.P., and Grey Rock Energy Fund, LP (collectively the “Grey Rock Funds”), the assets of which, together with cash remaining in ENPC’s trust account following any stockholder redemptions, constitute the assets of Granite Ridge following the business combination.

Third Quarter 2022 Pro Forma Highlights

  • Closed the previously announced business combination resulting in the formation of publicly traded Granite Ridge listed on the NYSE under the ticker symbol “GRNT”
  • Total pro forma net income of $66 million during the third quarter and adjusted pro forma net income (non-GAAP) of $48 million during the third quarter
  • Declared initial dividend of $0.08 per common share (representing a $0.11 per common share dividend for the full quarter, prorated to effective date1)
  • Third quarter total production of 21.2 MBoe per day (45% oil), up 29% from the third quarter of 2021
  • Pro forma Adjusted EBITDA (non-GAAP) of $99 million during the third quarter
  • Free cash flow (non-GAAP) of $25 million during the third quarter
  • Total capital expenditures of $72 million during the third quarter, including $12 million of acquisition entry costs
  • Producing wells added during the period were 11 gross and 0.5 net, respectively, with 24.3 net wells in process at quarter-end
____________________________

1 Common initial dividend was prorated to October 24, 2022, the effective date of Granite Ridge’s business combination.

Management Comments

We are thrilled to share Granite Ridge’s initial pro forma results today, our first as a public company. Following the successful business combination of Grey Rock Funds and Executive Network Partnering Corporation, we are proud to showcase the powerful free cash flow Granite Ridge can deliver for the benefit of our shareholders,” commented Luke Brandenburg, President and CEO of Granite Ridge.

We believe Granite Ridge is a differentiated offering in the upstream segment by providing exposure to not only the best basins, but the best operators, both public and private. Granite Ridge starts with no debt outstanding and is offering an attractive dividend yield. Combined with our non-operated acquisition strategy, Granite Ridge creates value by generating sustainable full-cycle risk adjusted returns for investors, and delivering reliable energy solutions to all – safely and responsibly.”

Summary of Combined Pro Forma Operations and Selected Financial Results

The below selected financial results have been combined and are presented as pro forma results and are reconciled in the section below.

Three Months Ended
September 30,

 

2022

 

 

2021

 

% Change

 

Net Production:

Oil (MBbl)

 

862

 

 

839

 

3

%

Natural gas (MMcf)

 

6,267

 

 

3,804

 

65

%

Total (MBoe)

 

1,907

 

 

1,473

 

29

%

 

Average Daily Production:

Oil (Bbl/d)

 

9,579

 

 

9,323

 

3

%

Natural gas (Mcf/d)

 

69,631

 

 

42,265

 

65

%

Total (Boe/d)2

 

21,184

 

 

16,367

 

29

%

 

Average Sales Prices:

Oil (per Bbl)

$

91.71

 

$

72.65

 

26

%

Effect of gain (loss) on settled oil derivatives on average price (per Bbl)

 

(8.06

)

 

(6.19

)

30

%

Oil net of settled oil derivatives (per Bbl)

 

83.65

 

 

66.46

 

26

%

 

Natural gas and related product sales (per Mcf)

 

9.24

 

 

5.37

 

72

%

Effect of gain (loss) on settled natural gas derivatives on average price (per Mcf)

 

(1.30

)

 

(0.63

)

106

%

Natural gas and related product sales net of settled natural gas derivatives (per Mcf)

 

7.94

 

 

4.74

 

68

%

 

Costs and Expenses per Boe:

Lease operating expenses

$

6.58

 

$

4.67

 

41

%

Production taxes

 

4.02

 

 

3.01

 

34

%

Depletion and accretion

 

26.56

 

 

16.13

 

65

%

General and administrative

 

1.42

 

 

2.10

 

(32

)%

 

Net Producing Wells at Period End

 

123.8

 

 

103.7

 

19

%

___________________________

2 Natural gas is converted to Boe at the rate of one barrel equals six Mcf based upon the approximate relative energy content of oil and natural gas, which is not necessarily indicative of the relationship of oil and natural gas prices.

Production

Third quarter production on average was 21.2 MBoe per day, an increase of 6% from the second quarter of 2022 and an increase of 29% from the third quarter of 2021. Oil represented 45% of total production in the third quarter. Granite Ridge had 0.5 net wells turned in-line during the third quarter of 2022, compared to 1.4 net wells turned in-line in the second quarter of 2022. The increase in production is consistent with the increase in net producing wells which increased to 124 wells as of September 30, 2022, up from 109 as of December 31, 2021. The increase in wells was primarily driven by Fund III’s acquisition of additional wells during the first nine months of 2022 and the last three months of 2021.

Realized Pricing

For the third quarter, NYMEX West Texas Intermediate (“WTI”) crude oil averaged $93.18 per Bbl, and NYMEX natural gas at Henry Hub averaged $7.95 Mcf. Granite Ridge’s average realized oil price per Bbl in the third quarter was $91.71, or 98% of WTI. Granite Ridge’s average realized natural gas price per Mcf in the third quarter was $9.24, or 116% of Henry Hub.

Operating Expenses

Lease operating costs were $12.5 million in the third quarter of 2022, or $6.58 per Boe, an increase on a per unit basis compared to the third quarter of 2021. The increase in unit costs was driven primarily by gas processing fees. Production taxes were $7.7 million in the third quarter of 2022, or $4.02 per Boe, an increase on a per unit basis compared to the third quarter of 2021. The increase in unit costs was driven primarily by the increase in prices and the related impact to production taxes.

General and Administrative Expenses

General and administrative (“G&A”) expenses were approximately $2.7 million for the third quarter of 2022, compared to $3.1 million for the third quarter of 2021. The decrease was primarily due to a decrease in professional fees, fund insurance expense and franchise tax expense.

Capital Expenditures and Development Activity

(In millions, except for well data)

Three months ended
September 30, 2022

Capital Expenditures Incurred

Development capital expenditures

$

59.2

Acquisition - entry cost

$

12.1

Acquisition - development cost

$

-

Other capitalized costs

$

0.7

 

Gross producing wells (period-end)

 

2,322

Net producing wells (period-end)

 

123.8

 

Gross producing wells added during the quarter

 

11

Net producing wells added during the quarter

 

0.5

 

Gross producing wells in progress (period-end)

 

337

Net producing wells in progress (period-end)

 

24.3

Of the 24.3 net wells that were in progress as of the end of the third quarter, 41 gross (5.5 net wells) have been brought online and converted to PDP as of November 14, 2022.

Initial Dividend

Granite Ridge’s board of directors declared a dividend of $0.08 per share of Granite Ridge’s common stock. The dividend is payable on December 15, 2022 to stockholders of record on December 1, 2022. This dividend payout is aligned with Granite Ridge’s intent to pay a minimum dividend of $60 million per year to its shareholders, which would currently equate to $0.45 per share annually or an approximate five percent dividend yield. The initial common dividend was prorated to October 24, 2022, the effective date of Granite Ridge’s business combination, resulting in a dividend of $0.08 per common share for the quarter.

Balance Sheet and Capital Resources

On October 24, 2022, Granite Ridge entered into a senior secured revolving credit agreement (the “Credit Agreement”) among Granite Ridge, as borrower, Texas Capital Bank, as administrative agent, and the lenders from time to time party thereto. The Credit Agreement has a maturity of five years from the effective date thereof and is secured by a first priority mortgage and security interest in substantially all assets of the Company and its restricted subsidiaries. The Credit Agreement provides for aggregate elected commitments of $150.0 million, an initial borrowing base of $325.0 million and an aggregate maximum revolving credit amount of $1.0 billion. On a pro forma basis, assuming the Credit Agreement was executed as of September 30, 2022, the Company would have had total liquidity of $187.1 million consisting of cash of $37.1 million and $150.0 million of unfunded, committed borrowing availability under the Credit Agreement.

Hedge Positions

Granite Ridge hedges portions of its expected production volumes to increase the predictability of its cash flow and to help maintain a strong financial position. The following tables presents Granite Ridge’s pro forma net gain/(loss) on derivative contracts for the three months ended September 30, 2022 and 2021:

Three Months Ended September 30,

2022

2021

(In thousands)

Realized loss

Change in
unrealized
gain/(loss)

Total

Realized loss

Change in
unrealized
gain/(loss)

Total

Primary underlying risk

Commodity price

 

 

 

 

 

 

 

 

 

 

 

Crude oil

$

(6,947

)

$

22,787

 

$

15,840

 

$

(5,195

)

$

2,089

 

$

(3,106

)

Natural gas

 

(8,152

)

 

(4,618

)

 

(12,770

)

 

(2,389

)

 

(6,043

)

 

(8,432

)

Total

$

(15,099

)

$

18,169

 

$

3,070

 

$

(7,584

)

$

(3,954

)

$

(11,538

)

Third Quarter 2022 Earnings Conference Call

A conference call is scheduled for Monday, November 14, 2022 at 11:00 a.m. Eastern Standard Time to discuss the third quarter combined pro forma results. Instructions on how to access the call and relevant accompanying disclosures are shown below.

Internet: We encourage participants to pre-register for the webcast using the following link https://events.q4inc.com/attendee/432451518. Alternatively, at www.graniteridge.com select “Investors” then “Earnings & Webcasts” to listen to the discussion and view the press release.

Telephone: Dial (888) 660-6093 (or (929) 203-0844 for international callers) and enter confirmation code 4127559 five minutes before the call. Additional disclosures are available via Granite Ridge’s internet address above.

A transcript of the conference call will be archived on Granite Ridge’s website. Alternatively, an audio replay will be available through November 28, 2022. To access the audio replay dial (800) 770-2030 and enter confirmation code 4127559.

About Granite Ridge

Granite Ridge is a scaled, non-operated oil and gas exploration and production company. We invest in a diversified portfolio of production and top-tier acreage across the Permian and four other prolific US basins in partnership with proven operators. We create value by generating sustainable full-cycle risk adjusted returns for investors, offering a rewarding experience for our team, and delivering reliable energy solutions to all – safely and responsibly. For more information, visit Granite Ridge’s website at www.graniteridge.com.

SAFE HARBOR

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

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond Granite Ridge’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: the ability to recognize the anticipated benefits of the business combination, Granite Ridge’s financial performance following the business combination, changes in Granite Ridge’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospectus and plans, changes in current or future commodity prices and interest rates, supply chain disruptions, infrastructure constraints and related factors affecting our properties, expansion plans and opportunities, operational risks including, but not limited to, the pace of drilling and completions activity on our properties, changes in the markets in which Granite Ridge competes, geopolitical risk and changes in applicable laws, legislation, or regulations, including those relating to environmental matters, cyber-related risks, the fact that reserve estimates depend on many assumptions that may turn out to be inaccurate and that any material inaccuracies in reserve estimates or underlying assumptions will materially affect the quantities and present value of the Granite Ridge’s reserves, the outcome of any known and unknown litigation and regulatory proceedings, legal and contractual limitations on the payment of dividends, limited liquidity and trading of Granite Ridge’s securities, acts of war or terrorism and market conditions and global, regulatory, technical, and economic factors beyond Granite Ridge’s control, including the potential adverse effects of the COVID-19 pandemic, or another major disease, affecting capital markets, general economic conditions, global supply chains and Granite Ridge’s business and operations.

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

PRO FORMA CONDENSED COMBINED STATEMENTS OF INCOME

(UNAUDITED)

 

Three Months Ended September 30,

2022

2021

(In thousands)

Fund III

Fund I

Fund II

Pro Forma
Combined

Fund III

Fund I

Fund II

Pro Forma
Combined

Statements of Operations

Information:

 

Revenues

 

Oil sales

$

61,607

 

$

2,419

 

$

15,023

 

$

79,049

 

$

40,376

 

$

1,677

 

$

18,902

 

$

60,955

 

 

Natural gas and related product sales

 

28,587

 

 

 

1,156

 

 

 

28,172

 

 

 

57,915

 

 

 

15,341

 

 

 

656

 

 

 

4,420

 

 

 

20,417

 

 

Total revenues

 

90,194

 

 

 

3,575

 

 

 

43,195

 

 

 

136,964

 

 

 

55,717

 

 

 

2,333

 

 

 

23,322

 

 

 

81,372

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

Lease operating expenses

 

6,368

 

 

408

 

 

5,765

 

 

12,541

 

 

3,621

 

 

498

 

 

2,763

 

 

6,882

 

Production taxes

 

5,053

 

 

238

 

 

2,366

 

 

7,657

 

 

2,506

 

 

137

 

 

1,785

 

 

4,428

 

Depletion and accretion expense

 

39,868

 

 

504

 

 

10,278

 

 

50,650

 

 

15,794

 

 

655

 

 

7,305

 

 

23,754

 

General and administrative

 

1,776

 

 

82

 

 

849

 

 

2,707

 

 

1,764

 

 

134

 

 

1,200

 

 

3,098

 

Loss on disposal of oil and natural gas properties

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

5

 

 

-

 

 

5

 

Total expenses

 

53,065

 

 

1,232

 

 

19,258

 

 

73,555

 

 

23,685

 

 

1,429

 

 

13,053

 

 

38,167

 

Net operating income

 

37,129

 

 

2,343

 

 

23,937

 

 

63,409

 

 

32,032

 

 

904

 

 

10,269

 

 

43,205

 

Other income/(expense)

 

Gain (loss) on derivative contracts

 

6,082

 

 

227

 

 

(3,238

)

 

3,071

 

 

(6,558

)

 

(229

)

 

(4,751

)

 

(11,538

)

Interest expense

 

(476

)

 

(3

)

 

(91

)

 

(570

)

 

(353

)

 

(34

)

 

(217

)

 

(604

)

Total other income/(expense)

 

5,606

 

 

224

 

 

(3,329

)

 

2,501

 

 

(6,911

)

 

(263

)

 

(4,968

)

 

(12,142

)

Net income

$

42,735

 

 

$

2,567

 

 

$

20,608

 

 

$

65,910

 

 

$

25,121

 

 

$

641

 

 

$

5,301

 

 

$

31,063

 

PRO FORMA CONDENSED COMBINED BALANCE SHEETS

(UNAUDITED)

 

As of September 30,

As of December 31,

2022

2021

(In thousands)

Fund III

Fund I

Fund II

Pro Forma
Combined

Fund III

Fund I

Fund II

Pro Forma
Combined

Balance Sheet Information:

Cash

$

6,410

$

2,033

$

28,688

$

37,131

$

7,319

$

740

$

3,794

$

11,853

Property and equipment, net

 

381,861

 

14,959

 

151,240

 

548,060

 

278,391

 

15,046

 

155,336

 

448,773

Total assets

 

478,121

 

19,687

 

204,410

 

702,218

 

356,190

 

16,999

 

173,541

 

546,730

Credit facilities

 

-

 

-

 

-

 

-

 

29,938

 

1,100

 

20,000

 

51,038

Total liabilities

 

26,779

 

1,002

 

7,869

 

35,650

 

41,894

 

2,025

 

27,880

 

71,799

Total partners' capital

 

451,342

 

18,685

 

196,541

 

666,568

 

314,296

 

14,974

 

145,661

 

474,931

PRO FORMA CONDENSED COMBINED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

Three Months Ended September 30,

2022

2021

(In thousands)

Fund III

Fund I

Fund II

Pro Forma
Combined

Fund III

Fund I

Fund II

Pro Forma
Combined

Statements of Cash Flow Information:

Net cash provided by/(used in)

operating activities

$

83,538

 

$

2,557

 

$

27,952

 

$

114,047

 

$

35,550

 

$

(270

)

$

14,284

 

$

49,564

 

Net cash used in

investing activities

 

(64,997

)

 

(637

)

 

(5,191

)

 

(70,825

)

 

(37,854

)

 

(608

)

 

(3,605

)

 

(42,067

)

Net cash used in

financing activities

 

(35,000

)

 

(700

)

 

(17,000

)

 

(52,700

)

 

-

 

 

(422

)

 

(8,391

)

 

(8,813

)

Non-GAAP Financial Measures

Adjusted Net Income, Adjusted EBITDA and Free Cash Flow are non-GAAP measures. Granite Ridge defines Adjusted Net Income as net income (loss) excluding the change in unrealized (gain) loss on derivatives. Granite Ridge defines Adjusted EBITDA as net income before (i) income taxes, (ii) interest expense, (iii) depletion and accretion, (iv) amortization of loan origination costs and (vi) change in unrealized (gain) loss on derivative financial instruments. Granite Ridge defines Free Cash Flow as cash flows from operations before changes in working capital and other items, less capital expenditures. A reconciliation of each of these measures to the most directly comparable GAAP measure is included below.

Management believes the use of these non-GAAP financial measures provides useful information to investors to gain an overall understanding of current financial performance. Management believes Adjusted Net Income and Adjusted EBITDA provide useful information to both management and investors by excluding certain expenses and unrealized derivative gains and losses that management believes are not indicative of Granite Ridge’s core operating results. Management believes that Free Cash Flow is useful to investors as a measure of a company’s ability to internally fund its budgeted capital expenditures, to service or incur additional debt, and to measure success in creating stockholder value. In addition, these non-GAAP financial measures are used by management for budgeting and forecasting as well as subsequently measuring Granite Ridge’s performance, and management believes it is providing investors with financial measures that most closely align to its internal measurement processes. The non-GAAP financial measures included herein may be defined differently than similar measures used by other companies and should not be considered an alternative to, or more meaningful than, the comparable GAAP measures. From time to time Granite Ridge provides forward-looking Free Cash Flow estimates or targets; however, Granite Ridge is unable to provide a quantitative reconciliation of the forward looking non-GAAP measure to its most directly comparable forward looking GAAP measure because management cannot reliably quantify certain of the necessary components of such forward looking GAAP measure. The reconciling items in future periods could be significant.

The formation transactions that were completed concurrently with the business combination are is accounted for consistent with that of a common control transaction pursuant to the guidance in ASC 805-50, recognizing the assets and liabilities received in the transaction at their historical carrying amounts. Fund III has been identified as the acquirer and “predecessor” to the Company. As control of each of the Grey Rock Funds will remain with its respective general partner and there will not be a substantive economic change with respect to the Grey Rock Funds pre and post the business combination, the transactions are accounted for consistent with that of a common control transaction and the formation transactions combined the Grey Rock Funds at historical cost.

Reconciliation of Adjusted Net Income

 

 

Three Months Ended September 30,

 

2022

 

2021

(In thousands)

Fund III

 

Fund I

 

Fund II

 

Pro Forma
Combined

 

Fund III

 

Fund I

 

Fund II

 

Pro Forma
Combined

Net income

$

42,735

 

 

$

2,567

 

 

$

20,608

 

 

$

65,910

 

 

$

25,121

 

$

641

 

 

$

5,301

 

$

31,063

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impact of Selected Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in non-cash unrealized (gain) loss on derivative financial instruments

 

(15,413

)

 

 

(384

)

 

 

(2,371

)

 

 

(18,168

)

 

 

2,600

 

 

(246

)

 

 

1,600

 

 

3,954

Adjusted Income Before Adjusted Income Tax Expense

 

27,322

 

 

 

2,183

 

 

 

18,237

 

 

 

47,742

 

 

 

27,721

 

 

395

 

 

 

6,901

 

 

35,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income tax expense

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

-

 

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income

$

27,322

 

 

$

2,183

 

 

$

18,237

 

 

$

47,742

 

 

$

27,721

 

$

395

 

 

$

6,901

 

$

35,017

Reconciliation of Adjusted EBITDA

 

 

Three Months Ended September 30,

 

2022

 

2021

(In thousands)

Fund III

 

Fund I

 

Fund II

 

Pro Forma
Combined

 

Fund III

 

Fund I

 

Fund II

 

Pro Forma
Combined

Net income

$

42,735

 

 

$

2,567

 

 

$

20,608

 

 

$

65,910

 

 

$

25,121

 

$

641

 

 

$

5,301

 

$

31,063

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

-

 

 

 

-

 

 

-

 

Interest expense

 

476

 

 

 

3

 

 

 

91

 

 

 

570

 

 

 

353

 

 

34

 

 

 

217

 

 

604

 

Depletion and accretion

 

39,868

 

 

 

504

 

 

 

10,278

 

 

 

50,650

 

 

 

15,794

 

 

655

 

 

 

7,305

 

 

23,754

EBITDA

 

83,079

 

 

 

3,074

 

 

 

30,977

 

 

 

117,130

 

 

 

41,268

 

 

1,330

 

 

 

12,823

 

 

55,421

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of loan origination costs

 

41

 

 

 

-

 

 

 

-

 

 

 

41

 

 

 

10

 

 

-

 

 

 

-

 

 

10

 

Change in unrealized (gain) loss on derivative financial instruments

 

(15,413

)

 

 

(384

)

 

 

(2,371

)

 

 

(18,168

)

 

 

2,600

 

 

(246

)

 

 

1,600

 

 

3,954

Adjusted EBITDA

$

67,707

 

 

$

2,690

 

 

$

28,606

 

 

$

99,003

 

 

$

43,878

 

$

1,084

 

 

$

14,423

 

$

59,385

 

Reconciliation of Free Cash Flow

 

 

Three Months Ended September 30,

 

2022

 

2021

(In thousands)

Fund III

 

Fund I

 

Fund II

 

Pro Forma
Combined

 

Fund III

 

Fund I

 

Fund II

 

Pro Forma
Combined

Net Cash Provided by Operating Activities

$

83,538

 

 

$

2,557

 

 

$

27,952

 

 

$

114,047

 

 

$

35,550

 

 

$

(270

)

 

$

14,284

 

 

$

49,564

 

Exclude: Changes in Working Capital and Other Items

 

(29,640

)

 

 

127

 

 

 

408

 

 

 

(29,105

)

 

 

12,029

 

 

 

1,059

 

 

 

640

 

 

 

13,728

 

Less capital expenditures (1)

 

(55,892

)

 

 

(601

)

 

 

(3,404

)

 

 

(59,897

)

 

 

(19,075

)

 

 

(868

)

 

 

(3,100

)

 

 

(23,043

)

Free Cash Flow

$

(1,994

)

 

$

2,083

 

 

$

24,956

 

 

$

25,045

 

 

$

28,504

 

 

$

(79

)

 

$

11,824

 

 

$

40,249

 


Contacts

Investor and Media Contact: This email address is being protected from spambots. You need JavaScript enabled to view it. – 214.396.2850


Read full story here

LIBERTY LAKE, Wash.--(BUSINESS WIRE)--#IIoT--Itron, Inc. (NASDAQ: ITRI), which is innovating the way utilities and cities manage energy and water, announced that PUB, Singapore’s national water agency, is leveraging SP Group’s existing Itron industrial IoT network canopy for smart water metering. The smart water metering rollout will connect some 300,000 Itron residential and C&I smart water meters to the existing network to achieve its water conservation goals.


The deployment, which is managed by Singapore’s national electricity and gas network operator, SP Group, is an important part of PUB’s Smart Water Meter Program, which aims to transform the organization into a smart utility. The first phase of the Smart Water Meter Program will be rolled out in Bukit Batok, Hougang, Jurong West, Tampines and Tuas, as well as in the new housing estates of Tampines North and Tengah.

With smart water meters, meter readings can be done remotely on a daily basis, eliminating the labor-intensive manual meter reading process which is currently read every two months. Households and businesses can track their daily water usage on their MySmartWaterMeter account, hence giving them greater visibility and control over their water usage to conserve resources. Users can also receive timely notifications on high usage and suspected leaks in their household or premises. This will enable households and non-domestic customers to better understand their water usage pattern, be empowered to adjust their water habits, and ultimately, save on utility bills. The rollout of smart meters at scale will be a major boost to water conservation efforts.

“We are excited to see SP Group’s existing Itron network canopy be used for the Smart Water Meter Program in Singapore. This deployment truly demonstrates the power and potential of a high-performance, multi-application industrial IoT network,” said John Marcolini, senior vice president of Networked Solutions at Itron. “As part of this project, we look forward to helping PUB meet its water conservation goals and furthering Itron’s vision to create a more resourceful world.”

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.
Alison Mallahan
Senior Manager, Corporate Communications
509-891-3802
This email address is being protected from spambots. You need JavaScript enabled to view it.

  • Third quarter 2022 revenues increased 105.0% over the prior year period to €22.3 million, largely driven by a doubling of charging and services revenues.
  • Total energy sold was 37.0 gigawatt hour (GWh), an increase of 81.0% over the prior-year period.
  • Total number of charging sessions were 2.2 million, 36.6% higher compared to 1.6 million in the prior-year period.
  • Third quarter 2022 average utilization rate1 increased to 11.5% from 6.6%.
  • Signed 10-year power purchase agreement (PPA), which is expected to begin January 1, 2023, with a major European independent renewable power producer in Germany for 25 gigawatt hours (GWh), to drastically lower and stabilize the impact of commodity price volatility.
  • Implemented substantial price increases to minimize margin impact; price hikes in January, September and October of this year.
  • Strong commercial activities with multiple contracts and locations signed. Backlog of ultra-fast charging ports increased by 24% in the quarter to approximately 8,400 charging ports on 1,270 sites, compared to the prior-year period.

ARNHEM, Netherlands--(BUSINESS WIRE)--Allego N.V. (“Allego” or the “Company”) (NYSE: ALLG), a leading pan-European public electric vehicle fast and ultrafast charging network, today announced its results for the third quarter of 2022.

Total revenues increased 105.0% to €22.3 million for the three months ended September 30, 2022, compared to €10.9 million in the prior-year period. Charging revenues grew 107.7% to €14.4 million. The improvement was driven by an increase in charging sessions of 2.2 million, as well as price increases to offset input costs.

Services revenue increased 102.6% to €7.9 million, compared to €3.9 million for the three months ended September 30, 2021. Services revenue was driven by the Carrefour project, which as expected, was second half of 2022 weighted and is expected to accelerate during the fourth quarter of 2022. Allego increased substantially its backlog of signed contracts ready to be rolled out with a backlog of sites reaching 1,270 premium sites representing around 8,400 ultrafast charging ports that will serve its customers.

Allego’s total energy sold in the third quarter was 37.0 GWh, which marked an increase of 81.0% over the same period in 2021. The energy sold was 100% green energy. During the third quarter, utilization rate increased by 74.5% to reach 11.5%.

Net loss for the three months ended September 30, 2022 was €(18.7) million, which was largely a reflection of the volatility in the energy markets. Net loss for the three months ended September 30, 2021 was €(80.5) million, largely driven by non-recurring, non-cash share based payments.

Operational EBITDA was €(4.2) million compared to €(1.8) million for the three months ended September 30, 2021. Operational EBITDA was adversely affected by €6.7 million of higher energy costs, partly offset by the benefits from an increase of €1.9 million from charging prices and higher income of €2.4 million from the sale of carbon credit certificates. The price increase of around 15% on average, effective October 7, 2022, and the first power purchase agreements (“PPA”) starting January 1, 2023, are expected to moderate the impact of higher energy input costs going forward.

1 Utilization rate, a key performance measure, is defined as the number of charging sessions per charge point per day divided by a maximum number of charging sessions per charger per day of 50 (for the ultra-fast charging pole).

CEO and CFO Comments and Outlook

Allego’s Chief Executive Officer, Mathieu Bonnet, stated “I am pleased with the progress we continue to make as we near the end of our first fiscal year as a public company. The Carrefour project remains on track and has entered the second phase of the development process, as we are currently installing more than 310 new ultrafast charging ports. We have signed new important contracts all around Europe representing more than 1,800 ultrafast charging ports to be installed. As we expand and develop more sites across more jurisdictions, we believe we are very well positioned to maintain and advance our pivotal role in Europe’s EV charging infrastructure that is accelerating.”

Bonnet continued, “I am pleased to report that we have signed our first 10-year PPA with a European independent renewable power producer in Germany for 25 GWh. Sourced through a solar farm, the electricity provides our customers with 100% green energy, effective January 1, 2023. PPAs will enable us to lock in very attractive, long-term energy prices, meaningfully reducing our exposure to increases in commodity prices. As previously announced, our goal is to hedge approximately 80% of our energy input costs by 2023 by executing long-term, low-cost power contracts based on renewable power assets. The agreement represents a first step in that strategy that we are aiming to accelerate over the next months.”

Allego’s Chief Financial Officer, Ton Louwers, commented, “Our multi-pronged approach of signing PPAs, price increases, minimizing supply chain disruptions by proactively managing our European supplier partnerships, and the natural hedge that we have from income from the sale of certificates (or carbon credits) generated from the sale of green energy, has significantly reduced the risk of margin contraction to earnings. We expect to benefit from all the steps we have taken thus far and believe we are on track to achieve our long-term revenue and growth targets.”

Financial Summary:

The summary financial highlights for the three months ended September 30, 2022 are provided below:

  • Total revenues: €22.3 million
  • Gross Profit: €1.8 million
  • Net Loss: €(18.7) million
  • Operational EBITDA: €(4.2)million
  • Cash Flow from Operations: €(112.3) million

Key Metrics

Three Months Ended September 30,

Metrics(1)

2022

 

2021

 

% Change

Average Utilization Rate

11.5%

 

6.6%

 

74.5%

Public Charging Ports(2)

27,248

 

26,837

 

1.5%

# Fast & Ultra-Fast charging sites(2)

940

 

755

 

24.5%

# Fast & Ultra-Fast charging ports(2)

1,357

 

1,057

 

28.4%

Owned Public Charging Ports(2)

23,579

 

21,743

 

8.4%

Third-Party Public Charging Ports(2)

3,669

 

5,094

 

-28.0%

Total # sessions ('000)

2,170

 

1,589

 

36.5%

Total Energy sold (GWh)

37.0

 

20.5

 

80.6%

Secured Backlog (sites) (2)

1,270

 

500

 

154.0%

(1)

Includes Mega-E for all periods.

(2)

As of September 30, 2022 and September 30, 2021, respectively.

Guidance:

2022 Full Year Guidance Range:

  • Total Revenues: €135.0 million - €155.0 million
  • Energy Sold: 150 GWh – 160 GWh
  • Operational EBITDA: Positive

Conference Call Information

Allego will hold a conference call for investors at 8:30 AM Eastern Time today, Monday, November 14, 2022, to discuss its results for the quarter ended September 30, 2022. Participants may access the call at 1-877-407-9716, international callers may use 1-201-493-6779 and request to join the Allego earnings call. A live webcast will also be available at https://ir.allego.eu/events-publications.

A telephonic replay of the call will be available shortly after the conclusion of the call and until Monday November 28, 2022. Participants may access the replay 1-844-512-2921, international callers may use 1-412-317-6671 and enter access code 13733903. An archived replay of the call will also be available on the investor portion of the Allego website at https://ir.allego.eu/.

About Allego

Allego delivers charging solutions for electric cars, motors, buses, and trucks, for consumers, businesses, and cities. Allego’s end-to-end charging solutions make it easier for businesses and cities to deliver the infrastructure drivers need, while the scalability of our solutions makes us the partner of the future. Founded in 2013, Allego is a leader in charging solutions, with an international charging network comprising approximately 34,000 public and private charging ports operational throughout the pan-European market – and proliferating. Our charging solutions are connected to our proprietary platform, EV-Cloud, which gives our customers and us a full portfolio of features and services to meet and exceed market demands. We are committed to providing independent, reliable, and safe charging solutions, agnostic of vehicle model or network affiliation. At Allego, we strive every day to make EV charging easier, more convenient, and more enjoyable for all.

Forward-Looking Statements

All statements other than statements of historical facts contained in this press release are forward-looking statements. Allego intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward looking statements may generally be identified by the use of words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,”, “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” “target” or other similar expressions (or the negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, without limitation, Allego’s expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially, and potentially adversely, from those expressed or implied in the forward-looking statements. Most of these factors are outside Allego’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (i) changes adversely affecting Allego’s business, (ii) the price and availability of electricity, (iii) the risks associated with vulnerability to industry downturns and regional or national downturns, (iv) fluctuations in Allego’s revenue and operating results, (v) unfavorable conditions or further disruptions in the capital and credit markets, (vi) Allego’s ability to generate cash, service indebtedness and incur additional indebtedness, (vii) competition from existing and new competitors, (viii) the growth of the electric vehicle market, (ix) Allego’s ability to integrate any businesses it may acquire, (x) Allego’s ability to recruit and retain experienced personnel, (xi) risks related to legal proceedings or claims, including liability claims, (xii) Allego’s dependence on third-party contractors to provide various services, (xiii) Allego’s ability to obtain additional capital on commercially reasonable terms, (xiv) the impact of COVID-19, including COVID-19 related supply chain disruptions and expense increases, (xv) general economic or political conditions, including the armed conflict in Ukraine and (xvi) other factors detailed under the section entitled “Risk Factors” in Allego’s filings with the Securities and Exchange Commission. The foregoing list of factors is not exclusive. If any of these risks materialize or Allego’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Allego presently does not know or that Allego currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Allego’s expectations, plans or forecasts of future events and views as of the date of this press release. Allego anticipates that subsequent events and developments will cause Allego’s assessments to change. However, while Allego may elect to update these forward-looking statements at some point in the future, Allego specifically disclaims any obligation to do so, unless required by applicable law. These forward-looking statements should not be relied upon as representing Allego’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

FINANCIAL INFORMATION; NON-IFRS FINANCIAL MEASURES

Some of the financial information and data contained in this press release, such as EBITDA and Operational EBITDA, have not been prepared in accordance with Dutch generally accepted accounting principles, United States generally accepted accounting principles or the International Financial Reporting Standards (“IFRS”). We define (i) EBITDA as earnings before interest expense, taxes, depreciation and amortization and (ii) Operational EBITDA as EBITDA further adjusted for reorganization costs, certain business optimization costs, lease buyouts, and transaction costs. Allego believes that the use of these non-IFRS measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Allego’s financial condition and results of operations. Allego’s management uses these non-IFRS measures for trend analyses, for purposes of determining management incentive compensation and for budgeting and planning purposes. Allego believes that the use of these non-IFRS financial measures provides an additional tool for investors to use in evaluating projected operating results and trends and in comparing Allego’s financial measures with other similar companies, many of which present similar non-IFRS financial measures to investors. Management does not consider these non-IFRS measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-IFRS financial measures is that they exclude significant expenses and income that are required by IFRS to be recorded in Allego’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-IFRS financial measures. In order to compensate for these limitations, management presents non-IFRS financial measures in connection with IFRS results, and reconciliations to the most directly comparable IFRS measure are provided in this press release.

Interim condensed consolidated statement of profit or loss for the nine months ended September 30, 2022 and 2021 (unaudited)

 

(in €‘000)

2022

2021

 

 

 

 

 

Revenue from contracts with customers

 

 

 

Charging sessions

38,398

17,940

 

Service revenue from the sale of charging equipment

19,331

6,577

 

Service revenue from installation services

11,145

4,683

 

Service revenue from operation and maintenance of charging equipment

2,378

2,105

 

Service revenue from consulting services

1,759

-

 

Total revenue from contracts with customers

73,011

31,305

 

Cost of sales (excluding depreciation and amortization expenses)

(61,758)

(21,458)

 

Gross profit

11,253

9,847

 

 

 

 

 

Other income

13,155

12,402

 

Selling and distribution expenses

(2,369)

(1,893)

 

General and administrative expenses

(300,381)

(232,833)

 

Operating loss

(278,342)

(212,477)

 

 

 

 

 

Finance costs

12,767

(11,144)

 

Loss before income tax

(265,575)

(223,621)

 

 

 

 

 

Income tax

(216)

(597)

 

Loss for the period

(265,791)

(224,218)

 

 

 

 

 

Attributable to:

 

 

 

Equity holders of the Company

(265,588)

(224,218)

 

Non-controlling interests

(203)

-

 

 

 

 

 

 

 

 

 

 

 

Interim condensed consolidated statement of profit or loss for the three months ended September 30, 2022 and 2021 (unaudited)

 

(in €‘000)

2022

2021

Revenue from contracts with customers

Revenue from charging sessions

14,404

6,934

Service revenue from the realization of charging equipment

889

2,251

Service revenue from installation services

5,181

990

Service revenue from operation and maintenance of charging equipment

556

712

Service revenue from consulting services

1,289

-

Total revenue from contracts with customers

22,319

10,887

Cost of sales (excluding depreciation and amortization expenses)

(20,548)

(7,753)

Gross profit

1,771

3,134

 

 

 

Other Income

4,168

9,850

Selling and distribution

(672)

(751)

General and administrative

(21,522)

(88,812)

Operating loss

(16,255)

(76,579)

 

 

 

Finance costs

(2,406)

(3,883)

Loss before income tax

(18,661)

(80,462)

 

 

 

Income taxes

(54)

-

Loss for the period

(18,716)

(80,462)

 

 

 

Attributable to:

-

Ordinary equity holders of the Company

(18,674)

(80,462)

Non-controlling interests P&L

(41)

-

Basic and diluted earnings per ordinary share (in €'000)

1

-

 

Loss for the period

(18,716)

(80,462)

Exchange differences on translation of foreign operations

(3)

22

Income tax related to these items

-

-

Other comprehensive loss that may be reclassified to profit or loss, net of tax

(3)

22

Other comprehensive loss for the year, net of tax

(3)

22

Total comprehensive loss for the year

(18,718)

(80,440)

Attributable to:

-

Ordinary equity holders of the Company - Other comprehensive income

(18,677)

(80,440)

Non-controlling interests - Other comprehensive income

(40)

-

Interim condensed consolidated statement of financial position as at September 30, 2022 (unaudited) and December 31, 2021

 

(in €‘000)

September 30, 2022

December 31, 20212

 

 

 

Assets

 

 

Non-current assets

 

 

Property, plant and equipment

147,343

41,544

Intangible assets

21,796

8,333

Right-of-use assets

43,886

30,353

Deferred tax assets

571

570

Other financial assets

54,215

19,582

Total non-current assets

267,811

100,382

 

 

 

Current assets

 

 

Inventories

29,134

9,231

Prepayments and other assets

26,089

11,432

Trade and other receivables

40,102

42,077

Contract assets

9

1,226

Other financial assets

-

30,400

Cash and cash equivalents

16,306

24,652

Total current assets

111,640

119,018

 

 

 

Total assets

379,451

219,400

 

 

 

 

 

 

Equity

 

 

Share capital

32,062

1

Share premium

369,851

61,888

Reserves

3,663

4,195

Retained earnings

(326,644)

(142,736)

Equity attributable to equity holders of the Company

78,932

(76,652)

Non-controlling interests

1,139

-

Total equity

80,071

(76,652)

 

 

 

Non-current liabilities

 

 

Provisions and other liabilities

1,094

133

Borrowings

166,448

213,129

Lease liabilities

41,209

26,096

Deferred tax liabilities

1,272

-

Total non-current liabilities

210,023

239,358

 

 

 

Current liabilities

 

 

Trade and other payables

46,704

29,333

Contract liabilities

11,061

21,192

Current tax liabilities

295

401

Lease liabilities

6,834

5,520

Provisions and other liabilities

1,004

248

Borrowings

11,521

-

Warrant liabilities

6,087

-

Other financial liabilities

5,851

-

Total current liabilities

89,357

56,694

 

 

 

Total liabilities

299,380

296,052

 

 

 

Total equity and liabilities

379,451

219,400

 

 

 

2 Consolidated statement of financial position as at December 31, 2021 audited.

Interim condensed consolidated statement of cash flows for the nine months ended September 30, 2022 and 2021 (unaudited)

 

(in €‘000)

2022

2021

 

 

 

Cash flows from operating activities

 

 

Loss before income tax

(265,575)

(223,621)

 

 

 

Adjustments to reconcile loss before income tax to net cash flows:

 

 

Finance costs

8,657

11,110

Fair value (gains)/losses on derivatives (purchase options)

(3,856)

(8,110)

Fair value (gains)/losses on Public and Private warrant liabilities

(22,312)

-

Share-based payment expenses

242,090

200,025

Depreciation, impairments and reversal of impairments of property, plant and equipment

9,902

5,388

Depreciation and impairments of right-of-use of assets

4,827

1,957

Amortization and impairments of intangible assets

3,221

1,998

Net (gain)/loss on disposal of property, plant and equipment

(1)

(87)

 

 

 

Movements in working capital:

 

 

Decrease/(increase) in inventories

(19,902)

(4,731)

Decrease/(increase) in other financial assets

12,257

(2,563)

Decrease/(increase) in trade and other receivables, contract assets and prepayments and other assets

(28,253)

(12,096)

Increase/(decrease) in trade and other payables and contract liabilities

(33,828)

30,889

Increase/(decrease) in provisions and other liabilities

(108)

(325)

Cash generated from/(used in) operations

(92,881)

(166)

 

 

 

Interest paid

(5,522)

(2,934)

Income taxes paid

(343)

(237)

Net cash flows from/(used in) operating activities

(98,746)

(3,337)

 

 

 

Cash flows from investing activities

 

 

Acquisition of Mega-E, net of cash acquired

(15,884)

-

Acquisition of MOMA, net of cash acquired

(58,733)

-

Purchase of property, plant and equipment

(24,972)

(9,649)

Proceeds from sale of property, plant and equipment

196

412

Purchase of intangible assets

(1,241)

(2,062)

Proceeds from investment grants

371

1,708

Payment of purchase options derivative premiums

-

(1,500)

Net cash flows from/(used in) investment activities

(100,263)

(11,091)

 

 

 

Cash flows from financing activities

 

 

Proceeds from borrowings

50,000

29,863

Payment of principal portion of lease liabilities

(4,544)

(1,877)

Payment of transaction costs

(925)

(45)

Proceeds from issuing equity instruments (Spartan shareholders)

10,079

-

Proceeds from issuing equity instruments (PIPE financing)

136,048

-

Net cash flows from/(used in) financing activities

190,658

27,941

 

 

 

Net increase/(decrease) in cash and cash equivalents

(8,351)

13,513

Cash and cash equivalents at the beginning of the period

24,652

8,274

Effect of exchange rate changes on cash and cash equivalents

5

(5)

Cash and cash equivalents at the end of the period

16,306

21,782

Reconciliation of Loss for EBITDA and Operational EBITDA for the three months ended September 30, 2022 and 2021 (unaudited)

 

(in €‘000)

2022

2021

Loss for the period

-18,716

-80,462

Income tax

54

-

Finance costs

2,406

3,882

Amortization and impairments of intangible assets

765

692

Depreciation and impairments of right-of-use assets

1,875

997

Depreciation, impairments and reversal of impairments of property, plant and equipment

3,756

1,928

EBITDA

-9,860

-72,963

Fair value (gains)/losses on derivatives (purchase options)

-

-7,880

Share-based payment expenses (share-based payment arrangements)

779

78,093

Share-based payment expenses (related to the Transaction)

-

-

Transaction costs

898

918

Business optimization costs

3,261

-

Reorganization

699

48

Operational EBITDA

-4,223

-1,784

Historical Key Metrics

Metrics(1)

2020

1Q21

2Q21

3Q21

4Q21

2021

1Q22

2Q22

3Q22

 

Average Utilization Rate

3.5%

4.5%

5.0%

6.6%

7.4%

5.9%

7.7%

9.2%

11.5%

Public Charging Ports(2)

21,922

23,384

25,767

26,837

27,982

27,982

28,838

29,698

27,248

# Fast & Ultra-Fast Charging Sites(2)

710

731

748

755

831

831

872

903

940

# Fast & Ultra-Fast Charging Ports(2)

943

967

1018

1057

1215

1215

1225

1293

1357

Recurring Users %

82%

82%

81%

78%

78%

80%

80%

80%

77%

Owned Public Charging Ports(2)

18,006

18,945

20,868

21,743

22,716

22,716

23,469

24,255

23,579

Third-Party Public Charging Ports(2)

3,916

4,439

4,899

5,094

5,266

5,266

5,369

5,443

3,669

Total # Sessions (in, 000)

3,701

1,162

1,389

1,589

1,980

6,120

2,139

2,305

2,170

Total Energy Sold (GWh)

48.0

15.9

17.7

20.5

28.6

82.7

32.1

37.8

37.0

Secured Backlog (sites)(2)

NA

NA

500

500

800

800

800

1,100

1,270

(1) Includes Mega-E for all periods.

(2) As of the end of the period presented.

 


Contacts

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TULSA, Okla.--(BUSINESS WIRE)--Empire Petroleum (NYSE American: EP) (“Empire” or the “Company”), today reported operational and financial results for the third quarter of 2022.


KEY THIRD QUARTER 2022 HIGHLIGHTS

  • Increased sales volumes by 3% to 2,232 barrels of oil equivalent per day (“Boe/d”) (60% oil, 19% natural gas and 21% natural gas liquids (“NGLs”)) from 2,158 Boe/d (62% oil, 18% natural gas and 20% NGLs) for the second quarter of 2022;
  • Recorded revenue of $14.8 million that resulted in net income of $0.2 million, or $0.01 per diluted share, and Adjusted Net Income1 of $3.7 million, or $0.16 per diluted share;
  • Generated Adjusted EBITDA1 of $4.8 million, or $23.36 per barrel of oil equivalent (“Boe”);
  • Increased cash position in the third quarter by 27% to $15.7 million, reduced debt $0.4 million to $7.8 million during the quarter, and ended the period with $16.0 million of liquidity; and
  • Made significant progress on the Company’s Starbuck Field Enhancement Program (the “Starbuck Program”), including beginning the waterflood conformance phase, re-perforated and stimulated productive intervals to ensure maximum hydrocarbon recovery, completed seven sidetracks, and finished certain surface facility upgrades that began in 2021. The Starbuck Program is targeted to provide a material increase in production and reserves, with the first three phases of the project expected to be completed by the end of 2022.; and
  • Spudded four new non-operated Bakken wells with completion expected during the fourth quarter of 2022.
  1. Adjusted Net Income, EBITDA and Adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Information” section later in this release for more information including reconciliations to the most comparable GAAP measure.

MANAGEMENT COMMENTARY

Tommy Pritchard, Chief Executive Officer of Empire, commented, “We were pleased with our overall results for the third quarter, which included increased collective production levels across our portfolio of assets. While the industry saw some pull back in commodity pricing levels during the third quarter, we continue to expect pricing levels to remain strong through the fourth quarter and into next year given current and projected supply and demand dynamics. I am also pleased to report that we continue to make significant progress on our Starbuck Program. We look forward to providing the market more details on our development activities as appropriate as we move through the program.”

Mike Morrisett, President of Empire, added, “During the third quarter we remained focused on improving our financial standing, including further paydown of our outstanding debt as well as enjoying an enhanced liquidity position that increased more than 25% since the end of the second quarter that benefits our Company and its shareholders. We will continue to execute on targeted field development opportunities to organically expand our production while evaluating additional strategic opportunities to prudently expand our operational footprint and ensure our long-term success.”

FINANCIAL AND OPERATIONAL RESULTS FOR THIRD QUARTER 2022

 

 

Q3 2022

 

 

Q2 2022

 

 

% Change Q3 2022 vs. Q2 2022

 

Q3 2021

 

 

% Change Q3 2022 vs. Q3 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales (Boe/d)

 

 

 

2,232

 

 

 

2,158

 

 

 

3

%

 

 

2,090

 

 

 

7

%

Net sales (Boe)

 

 

 

205,380

 

 

 

196,412

 

 

 

5

%

 

 

192,303

 

 

 

7

%

Realized price ($/Boe)

 

 

$

71.30

 

 

$

83.48

 

 

 

(15

%)

 

$

50.11

 

 

 

42

%

Revenue ($M)

 

 

$

14,792

 

 

$

16,540

 

 

 

(11

%)

 

$

10,096

 

 

 

47

%

Net income ($M)

 

 

$

216

 

 

$

5,534

 

 

 

(96

%)

 

$

(3,726)

 

 

 

106

%

Adjusted Net Income ($M)

 

 

$

3,747

 

 

$

5,967

 

 

 

(37

%)

 

$

(2,434)

 

 

 

254

%

Adjusted EBITDA ($M)

 

 

$

4,799

 

 

$

6,922

 

 

 

(31

%)

 

$

7,778

 

 

 

(38

%)

 

Net sales for the third quarter of 2022 were 2,232 Boe/d, including 1,346 net barrels of oil per day; 2,517 thousand cubic feet per day (“Mcf/d”), or 419 Boe/d, of natural gas; and 19,625 gallons per day, or 467 Boe/d, of NGLs. Contributing to the sequential increase from the second quarter of 2022 was increased sales volumes associated with Empire’s assets in New Mexico, Texas and Louisiana. This was partially offset by transitory declines in production for the Company’s assets in the Rockies Region primarily associated with taking certain well production offline temporarily as the Company completes the execution of the Starbuck Program.

Empire reported $14.8 million of revenue for the third quarter of 2022 versus $16.5 million for the second quarter of 2022. The increase in sales volumes for all products was offset by lower realized pricing as compared to the second quarter.

Operating expenses for the third quarter of 2022 were $8.5 million, which included a $1.4 million non-cash write-off associated with the Company’s joint development agreement with Petroleum & Independent Exploration, LLC and related entities (“PIE”). Excluding the PIE write-off, operating expenses were $7.1 million compared to $5.5 million for the second quarter of 2022 primarily as a result of increased workovers and other activities executed in advance of capital development programs at our New Mexico and Rockies Region assets.

General and administrative expenses, excluding non-cash share-based compensation, was $2.0 million, or $9.93 per Boe, in the third quarter of 2022 versus $2.8 million, or $14.23 per Boe, for the second quarter of 2022. Contributing to the sequential decrease was lower professional service fees.

Other expense for the third quarter of 2022 was $1.1 million compared to $0.2 million in the second quarter of 2022. Driving the increase was a non-cash $1.4 million settlement related to the purchase of Empire’s New Mexico assets.

Net income for the third quarter was $0.2 million, or $0.01 per diluted share, versus $5.5 million, or $0.24 per diluted share, in the second quarter of 2022. Contributing to the sequential decrease was lower realized pricing partially offset by higher production, the non-cash $1.4 million PIE write-off and the non-cash $1.4 million settlement related to the purchase of the Company’s New Mexico assets.

Adjusted Net Income for the third quarter was $3.7 million, or $0.16 per diluted share, versus $6.0 million, or $0.26 per diluted share, in the second quarter of 2022, with the decrease substantially due to lower realized pricing partially offset by higher production.

Adjusted EBITDA was $4.8 million for the third quarter compared to $6.9 million in the second quarter of 2022, with the decrease substantially due to lower realized pricing partially offset by higher production.

CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY

For the nine months ended September 30, 2022, the Company spent approximately $500,000 on additions to oil and natural gas properties as a result of non-operated drilling, and an additional $1.0 million on capitalized additions to oil and natural gas properties. The Company anticipates additional capital expenditures in the coming quarters that will be funded with cash flows from operations, debt, and/or equity issuances.

Total liquidity at the end of the third quarter of 2022 was $16.0 million, including $15.7 million of cash and $0.3 million available on the Company’s Credit Facility. This represents a more than 25% increase in liquidity from $12.7 million as of June 30, 2022. As of September 30, 2022, the Company had total debt of $7.8 million and working capital of $11.3 million, which was a material increase from Empire’s working capital position of $1.1 million at December 31, 2021. Empire remains squarely focused on continuing to execute on its proven strategy to remain financially conservative as it evaluates additional opportunities to prudently invest in its current business and expand through targeted acquisitions that provide long-term value for its shareholders.

CONFERENCE CALL INFORMATION

An investor conference call to review the Company’s results will be held on Tuesday, November 15, 2022, at 12:00 p.m. Eastern (11:00 a.m. Central). The call will be hosted by Tommy Pritchard, the Company’s Chief Executive Officer, and Mike Morrisett, Empire’s President. Details for the conference call are as follows:

Date: Tuesday, November 15, 2022

Time: 12:00 p.m. Eastern (11:00 a.m. Central)

Telephone: 1-877-270-2148 (Toll free); 1-412-902-6510 (International); participants should ask to be joined into the Empire Petroleum Corporation call.

Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=foO19cFK

Replay: A webcast replay will be available on Empire’s website (www.empirepetroleumcorp.com) under "Investors Relations" on the "Events & Presentations" page following the call or via the webcast link listed above. The replay will be available through November 15, 2023.

ABOUT EMPIRE PETROLEUM

Empire Petroleum Corporation is a publicly traded, Tulsa-based oil and gas company with current producing assets in Texas, Louisiana, North Dakota, Montana, and New Mexico. Management is focused on organic growth and targeted acquisitions of proved developed assets with synergies with its existing portfolio of wells. More information about Empire can be found at www.empirepetroleumcorp.com.

SAFE HARBOR STATEMENT

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitations, statements with respect to the Company’s estimates, strategy and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2021, and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company’s ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and other risks and uncertainties related to the conduct of business by the Company.

EMPIRE PETROLEUM CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
 
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue:
Oil Sales

$

11,501,521

 

$

13,329,366

 

$

7,761,584

 

$

35,247,309

 

$

13,882,077

 

Gas Sales

 

1,587,542

 

 

1,446,435

 

 

855,507

 

 

4,019,400

 

 

1,536,569

 

Natural Gas Liquids Sales

 

1,637,808

 

 

1,763,546

 

 

1,439,799

 

 

5,133,872

 

 

1,913,191

 

Other

 

22,921

 

 

24,913

 

 

71,043

 

 

71,877

 

 

154,018

 

Net Realized and Unrealized Gain (Loss) on Derivatives

 

42,474

 

 

(23,893

)

 

(32,271

)

 

(93,740

)

 

(572,220

)

Total Revenue

 

14,792,266

 

 

16,540,367

 

 

10,095,662

 

 

44,378,718

 

 

16,913,635

 

 
Costs and Expenses:
Operating

 

8,505,640

 

 

5,503,850

 

 

3,597,124

 

 

19,200,436

 

 

7,328,066

 

Taxes - Production

 

1,112,246

 

 

1,137,841

 

 

678,295

 

 

3,151,325

 

 

1,266,808

 

Depletion, Depreciation & Amortization

 

539,543

 

 

455,799

 

 

1,279,534

 

 

1,429,788

 

 

2,025,407

 

Accretion of Asset Retirement Obligation

 

342,619

 

 

336,488

 

 

327,018

 

 

1,009,107

 

 

881,638

 

General and Administrative

 

2,850,059

 

 

3,282,452

 

 

1,914,326

 

 

8,587,891

 

 

6,040,475

 

 
Total Cost and Expenses

 

13,350,107

 

 

10,716,430

 

 

7,796,297

 

 

33,378,547

 

 

17,542,394

 

 
Operating Income (Loss)

 

1,442,159

 

 

5,823,937

 

 

2,299,365

 

 

11,000,171

 

 

(628,759

)

 
Other Income and (Expense):
Convertible Debt Modification Inducement Expense

 

-

 

 

-

 

 

(2,276,813

)

 

-

 

 

(2,276,813

)

Unrealized Gain on Embedded Conversion Option

 

-

 

 

-

 

 

689,215

 

 

-

 

 

92,931

 

Other Income (Expense)

 

(1,100,888

)

 

(177,872

)

 

29,687

 

 

(1,278,760

)

 

190,387

 

Interest Expense

 

(125,330

)

 

(111,785

)

 

(4,467,679

)

 

(347,763

)

 

(7,373,113

)

 
Net Income (Loss)

$

215,941

 

$

5,534,280

 

$

(3,726,225

)

$

9,373,648

 

$

(9,995,367

)

 
Net Income (Loss) per Common Share:
Basic

$

0.01

 

$

0.27

 

$

(0.23

)

$

0.45

 

$

(0.75

)

Diluted

$

0.01

 

$

0.24

 

$

(0.23

)

$

0.41

 

$

(0.75

)

Weighted Average Number of Common Shares Outstanding:
Basic

 

21,651,383

 

 

20,424,970

 

 

16,560,705

 

 

20,654,294

 

 

13,278,341

 

Diluted

 

24,065,485

 

 

23,294,723

 

 

16,560,705

 

 

22,778,836

 

 

13,278,341

 

 
EMPIRE PETROLEUM CORPORATION
Condensed Operating Data
(Unaudited)
 
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,

2022

2022

2021

2022

2021

 
Net Production Volumes:
Oil (Bbl)

 

123,804

 

123,167

 

114,495

 

361,226

 

220,780

Natural gas (Mcf)

 

231,522

 

208,363

 

224,118

 

653,829

 

379,600

Natural gas liquids (Gal)

 

1,805,523

 

1,617,751

 

1,699,112

 

5,109,649

 

2,598,655

Total (Boe)

 

205,380

 

196,412

 

192,303

 

591,856

 

345,919

 
Average daily equivalent sales (Boe/d)

 

2,232

 

2,158

 

2,090

 

2,168

 

1,267

 
Average Price per Unit:
Oil ($/Bbl)

$

92.22

$

108.06

$

64.98

$

96.90

$

59.80

Natural gas ($/Mcf)

$

6.86

$

6.37

$

3.82

$

6.15

$

4.05

Natural gas liquids ($/Gal)

$

0.91

$

1.09

$

0.85

$

1.00

$

0.74

Total ($/Boe)

$

71.30

$

83.48

$

50.11

$

74.45

$

50.10

 
Operating Costs and Expenses per Boe:
Oil and natural gas production

$

41.41

$

28.02

$

18.71

$

32.44

$

21.18

Production and ad valorem taxes

$

5.42

$

5.79

$

3.53

$

5.32

$

3.66

Depreciation, depletion, amortization and accretion

$

4.30

$

4.03

$

8.35

$

4.12

$

8.40

General & administrative (including share-based compensation)

$

13.88

$

16.71

$

9.95

$

14.51

$

17.46

General & administrative (excluding share-based compensation)

$

9.93

$

14.23

$

9.95

$

11.68

$

16.29

 
EMPIRE PETROLEUM CORPORATION
Condensed Consolidated Balance Sheets
 
(Unaudited)
September 30, December 31,

 

2022

 

 

2021

 

 
ASSETS
Current Assets:
Cash

$

15,733,842

 

$

3,611,871

 

Accounts Receivable

 

5,981,533

 

 

7,733,905

 

Unrealized Gain on Derivative Instruments

 

348,665

 

 

55,242

 

Inventory - Oil in Tanks

 

1,605,357

 

 

1,037,880

 

Prepaids

 

724,484

 

 

679,122

 

Total Current Assets

 

24,393,881

 

 

13,118,020

 

 
Property and Equipment:
Oil and Natural Gas Properties, Successful Efforts

 

53,064,338

 

 

46,914,326

 

Less: Accumulated Depreciation, Depletion and Impairment

 

(18,703,073

)

 

(17,525,918

)

 

34,361,265

 

 

29,388,408

 

Other Property and Equipment, Net

 

1,535,765

 

 

1,288,611

 

Total Property and Equipment, Net

 

35,897,030

 

 

30,677,019

 

 
Unrealized Gain on Derivative Instruments - Long Term

 

51,660

 

 

194,018

 

Sinking Fund

 

5,450,000

 

 

4,810,000

 

Utility and Other Deposits

 

449,811

 

 

1,290,594

 

 
TOTAL ASSETS

$

66,242,382

 

$

50,089,651

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable

$

4,226,799

 

$

4,329,535

 

Accrued Expenses

 

7,325,010

 

 

5,844,184

 

Current Portion of Lease Liability

 

251,117

 

 

180,105

 

Current Portion of Long-Term Notes Payable

 

1,258,804

 

 

1,700,663

 

Total Current Liabilities

 

13,061,730

 

 

12,054,487

 

 
Long-Term Notes Payable

 

5,174,783

 

 

6,117,091

 

Long-Term Note Payable - PIE

 

1,399,030

 

 

797,010

 

Long Term Lease Liability

 

613,899

 

 

646,311

 

Asset Retirement Obligations

 

21,722,407

 

 

20,640,599

 

Total Liabilities

 

41,971,849

 

 

40,255,498

 

 
Stockholders' Equity:
Series A Preferred Stock - $.001 Par Value, 10,000,000 Shares Authorized, 6 and 0 Shares Issued and Outstanding, Respectively

 

-

 

 

-

 

Common Stock - $.001 Par Value 190,000,000 Shares Authorized, 21,443,293 and 19,840,648 Shares Issued and Outstanding, Respectively

 

81,550

 

 

79,362

 

Additional Paid-in Capital

 

74,048,678

 

 

68,988,134

 

Accumulated Deficit

 

(49,859,695

)

 

(59,233,343

)

Total Stockholders' Equity

 

24,270,533

 

 

9,834,153

 

 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

66,242,382

 

$

50,089,651

 

 
EMPIRE PETROLEUM CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 
Cash Flows From Operating Activities:
Net Income (Loss)

$

215,941

 

$

5,534,280

 

$

(3,726,225

)

$

9,373,648

 

$

(9,995,367

)

 
Adjustments to Reconcile Net Income (Loss) to Net Cash
Provided By Operating Activities:
Stock Compensation and Issuances

 

809,641

 

 

486,903

 

 

-

 

 

1,672,823

 

 

406,250

 

Amortization of Right of Use Assets

 

44,627

 

 

50,901

 

 

47,935

 

 

135,234

 

 

54,363

 

Depreciation, Depletion and Amortization

 

539,543

 

 

455,799

 

 

1,279,534

 

 

1,429,788

 

 

2,025,407

 

Accretion of Asset Retirement Obligation

 

342,619

 

 

336,488

 

 

327,018

 

 

1,009,107

 

 

881,638

 

Settlement of Asset Retirement Obligations

 

-

 

 

(342,344

)

 

-

 

 

(342,344

)

 

-

 

Loss on Settlement of Asset Retirement Obligations

 

-

 

 

181,386

 

 

-

 

 

181,386

 

 

-

 

Loss on XTO Final Settlement

 

1,448,363

 

 

-

 

 

-

 

 

1,448,363

 

 

-

 

PIE-Related Expense

 

1,399,030

 

 

-

 

 

-

 

 

1,399,030

 

 

-

 

Amortization of Loan Issue Costs

 

-

 

 

-

 

 

-

 

 

-

 

 

14,587

 

Right to Buy Issuance Costs

 

-

 

 

-

 

 

-

 

 

-

 

 

989,115

 

Unrealized Gain on Embedded Conversion Option

 

-

 

 

-

 

 

(689,215

)

 

-

 

 

(92,931

)

Amortization of Discount on Convertible Notes

 

-

 

 

-

 

 

4,090,214

 

 

-

 

 

6,670,129

 

Convertible Debt Modification Inducement Expense

 

-

 

 

-

 

 

2,276,813

 

 

-

 

 

2,276,813

 

Stock Issued for Interest Expense Payment

 

-

 

 

-

 

 

241,054

 

 

-

 

 

241,054

 

Forgiveness of Payroll Protection Plan Loan

 

-

 

 

-

 

 

-

 

 

-

 

 

(160,700

)

Change in Operating Assets and Liabilities:
Accounts Receivable

 

1,417,093

 

 

(355,618

)

 

(3,217,479

)

 

304,009

 

 

(5,566,084

)

Unrealized Gain on Derivatives

 

(126,400

)

 

(53,726

)

 

(295,668

)

 

(151,065

)

 

(113,943

)

Inventory, Oil in Tanks

 

(412,768

)

 

(216,911

)

 

159,611

 

 

(567,477

)

 

(681,208

)

Prepaids, Current

 

(184,958

)

 

2,586

 

 

25,614

 

 

(45,362

)

 

115,670

 

Other Assets

 

39,033

 

 

4,735

 

 

200,100

 

 

43,773

 

 

(6,807

)

Accounts Payable

 

(1,459,997

)

 

649,861

 

 

1,901,185

 

 

(2,464,573

)

 

2,326,752

 

Accrued Expenses

 

(208,689

)

 

1,249,044

 

 

521,251

 

 

1,480,826

 

 

1,245,653

 

Net Cash Provided By Operating Activities

 

3,863,078

 

 

7,983,384

 

 

3,141,742

 

 

14,907,166

 

 

630,391

 

 
Cash Flows from Investing Activities:
Acquisition of Oil and Natural Gas Properties

 

-

 

 

(2,205,000

)

 

-

 

 

(2,205,000

)

 

(17,869,779

)

Additions to Oil and Natural Gas Properties

 

(276,024

)

 

(802,225

)

 

-

 

 

(1,502,900

)

 

-

 

Purchase of Other Fixed Assets

 

(189,179

)

 

(109,578

)

 

(424,760

)

 

(307,787

)

 

(508,571

)

Cash Paid for Right of Use Assets

 

(44,009

)

 

(48,402

)

 

-

 

 

(135,244

)

 

-

 

Sinking Fund Deposit

 

-

 

 

(160,000

)

 

(480,000

)

 

(640,000

)

 

(4,330,000

)

Investment in Related Party

 

-

 

 

-

 

 

1,250,000

 

 

-

 

 

-

 

Net Cash Used In Investing Activities

 

(509,212

)

 

(3,325,205

)

 

345,240

 

 

(4,790,931

)

 

(22,708,350

)

 
Cash Flows from Financing Activities:
Proceeds from Debt Issued

 

-

 

 

-

 

 

-

 

 

-

 

 

19,599,850

 

Principal Payments of Debt

 

(461,779

)

 

(462,436

)

 

(1,899,452

)

 

(1,384,167

)

 

(5,546,738

)

Proceeds from Stock and Warrant Issuance

 

-

 

 

-

 

 

583,102

 

 

-

 

 

11,054,661

 

Proceeds from Option and Warrant Exercise

 

405,220

 

 

2,887,183

 

 

-

 

 

3,389,903

 

 

-

 

Net Cash Provided By (Used In) Financing Activities

 

(56,559

)

 

2,424,747

 

 

(1,316,350

)

 

2,005,736

 

 

25,107,773

 

 
Net Change in Cash

 

3,297,307

 

 

7,082,926

 

 

2,170,632

 

 

12,121,971

 

 

3,029,814

 

 
Cash - Beginning of Period

 

12,436,535

 

 

5,353,609

 

 

1,016,877

 

 

3,611,871

 

 

157,695

 

 
Cash - End of Period

$

15,733,842

 

$

12,436,535

 

$

3,187,509

 

$

15,733,842

 

$

3,187,509

 

 
 

Empire Petroleum Corporation
Non-GAAP Information

Certain financial information included in Empire’s financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures include “Adjusted Net Income”, “EBITDA” and “Adjusted EBITDA”. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies.

Adjusted Net Income is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current periods to prior periods.

ADJUSTED NET INCOME
 
 
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 
Net Income (Loss)

$

215,941

 

$

5,534,280

 

$

(3,726,225

)

$

9,373,648

 

$

(9,995,367

)

 
Adjusted for:
Warrants and options granted in G&A

 

809,641

 

 

486,903

 

 

-

 

 

1,672,823

 

 

-

 

Unrealized (gain) loss on derivatives

 

(126,400

)

 

(53,726

)

 

(295,668

)

 

(151,065

)

 

(113,943

)

Write off of JDA note receivable

 

1,399,030

 

 

-

 

 

-

 

 

1,399,030

 

 

-

 

XTO final settlement - noncash settlement

 

1,448,363

 

 

-

 

 

-

 

 

1,448,363

 

 

-

 

Convertible debt modification inducement expense

 

-

 

 

-

 

 

2,276,813

 

 

-

 

 

2,276,813

 

Loss (gain) on conversion option

 

-

 

 

-

 

 

(689,215

)

 

-

 

 

(92,931

)

Right to buy issuance costs

 

-

 

 

-

 

 

-

 

 

-

 

 

989,115

 

Stock compensation expense

 

-

 

 

-

 

 

-

 

 

-

 

 

406,250

 

Forgiveness of PPP loan

 

-

 

 

-

 

 

-

 

 

-

 

 

(160,700

)

 
Adjusted Net Income

$

3,746,575

 

$

5,967,457

 

$

(2,434,295

)

$

13,742,799

 

$

(6,690,763

)

 
Diluted Weighted Average Shares Outstanding

 

24,065,485

 

 

23,294,723

 

 

16,560,705

 

 

22,778,836

 

 

13,278,341

 

 
Adjusted Net Income (Loss) Per Share

$

0.16

 

$

0.26

 

$

(0.15

)

$

0.60

 

$

(0.50

)

The Company defines Adjusted EBITDA as net income (loss) plus net interest expense, depreciation, depletion and amortization (“DD&A”), accretion, amortization of loan issuance costs, ROU assets and discount on convertible notes, income tax (benefit) expense, and other non-cash items.

Company management believes this presentation is relevant and useful because it helps investors understand Empire’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. In addition, Adjusted EBITDA does not represent funds available for discretionary use.

EBITDA & ADJUSTED EBITDA
 
 
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 
Net Income (Loss)

$

215,941

 

$

5,534,280

 

$

(3,726,225

)

$

9,373,648

 

$

(9,995,367

)

 
Add Back:
Interest Expense

 

125,330

 

 

111,785

 

 

4,467,679

 

 

347,763

 

 

7,373,113

 

DD&A

 

539,543

 

 

455,799

 

 

1,279,534

 

 

1,429,788

 

 

2,025,407

 

Accretion

 

342,619

 

 

336,488

 

 

327,018

 

 

1,009,107

 

 

881,638

 

Amortization of loan issuance costs

 

-

 

 

-

 

 

-

 

 

-

 

 

14,587

 

Amortization of ROU assets

 

44,627

 

 

50,901

 

 

47,935

 

 

135,234

 

 

54,363

 

Amortization of disc. on convertible notes

 

-

 

 

-

 

 

4,090,214

 

 

-

 

 

6,670,129

 

 
EBITDA

$

1,268,060

 

$

6,489,253

 

$

6,486,155

 

$

12,295,540

 

$

7,023,870

 

 
Consideration of noncash items:
Warrants and options granted in G&A

 

809,641

 

 

486,903

 

 

-

 

 

1,672,823

 

 

-

 

Unrealized (gain) loss on derivatives

 

(126,400

)

 

(53,726

)

 

(295,668

)

 

(151,065

)

 

(113,943

)

Write off of JDA note receivable

 

1,399,030

 

 

-

 

 

-

 

 

1,399,030

 

 

-

 

XTO final settlement - noncash settlement

 

1,448,363

 

 

-

 

 

-

 

 

1,448,363

 

 

-

 

Convertible debt modification inducement expense

 

-

 

 

-

 

 

2,276,813

 

 

-

 

 

2,276,813

 

Loss (gain) on conversion option

 

-

 

 

-

 

 

(689,215

)

 

-

 

 

(92,931

)

Right to buy issuance costs

 

-

 

 

-

 

 

-

 

 

-

 

 

989,115

 

Stock compensation expense

 

-

 

 

-

 

 

-

 

 

-

 

 

406,250

 

Forgiveness of PPP loan

 

-

 

 

-

 

 

-

 

 

-

 

 

(160,700

)

 
Adjusted EBITDA

$

4,798,694

 

$

6,922,430

 

$

7,778,085

 

$

16,664,691

 

$

10,328,474

 


Contacts

Empire Petroleum Corporation:
Tommy Pritchard, CEO
Mike Morrisett, President
539-444-8002
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Investor Relations:
Al Petrie Advisors
Wes Harris, Partner
713-300-6321
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Read full story here

Third Quarter 2022 Financial Highlights

  • Revenues of $30.4 million during third quarter 2022, an increase of 51% over third quarter 2021
  • GAAP net loss of $96.6 million, as compared to third quarter 2021 net loss of $1.3 million driven by a $102.0 million non-cash loss from fair value remeasurement of both warrants and alignment shares
  • Adjusted EBITDA* of $19.4 million, an increase of 66% over third quarter 2021
  • Adjusted EBITDA margin* of 64%
  • Ending unrestricted cash balance of $290.9 million

Recent Business Highlights

  • Increased portfolio by approximately 100 MW since second quarter including 88 MW acquired from D.E. Shaw Renewable Investments (DESRI)
  • Operating portfolio now serving customers across 22 states
  • Obtained commitments for revolving credit facility of up to $200 million
  • Completed redemption of all outstanding public and private warrants
  • Generated 139 thousand megawatt hours of clean, locally sited electricity during third quarter
  • Avoided over 300,000 metric tons of CO2 equivalent over the last twelve months when compared to utility power1

STAMFORD, Conn.--(BUSINESS WIRE)--Altus Power, Inc. (NYSE: AMPS) (“Altus Power” or the “Company”), a premier commercial-scale clean electrification company, today announced its financial results for the third quarter of 2022.

“We are thrilled to be reporting our best quarter ever in terms of revenue and adjusted EBITDA. During the third quarter we took steps to significantly expand our operating portfolio of commercial-scale solar assets, which contribute to our profitable growth," commented Gregg Felton, Co-CEO of Altus Power. "We are pleased to welcome all of these new long-term customers to Altus Power and look forward to expanding our relationships."

"This quarter's performance illustrates our determination to grow profitably in a challenging market environment," added Lars Norell, Co-CEO of Altus Power. "Our construction team is working in close collaboration with CBRE Project Management to move additional assets into construction throughout the United States.”

Third Quarter Financial Results

Operating revenues during the third quarter of 2022 totaled $30.4 million, compared to $20.1 million during the same period of 2021, an increase of 51%. The increase reflects the growth of megawatts installed over the past twelve months. Third quarter 2022 GAAP net loss totaled $96.6 million, compared to net loss of $1.3 million for the same period last year. The increase in net loss during the quarter was driven by the $102.0 million loss from remeasurement of both warrants and alignment shares. This remeasurement is non-cash and is driven by the appreciation of Altus Power common share price between June 30, 2022, and September 30, 2022. Both the warrants and alignment shares are revalued quarterly according to our share price at the end of each quarter.

Adjusted EBITDA* during the third quarter of 2022 was $19.4 million, compared to $11.7 million for the third quarter of 2021, a 66% increase. The quarter over quarter growth in adjusted EBITDA* is primarily the result of increased revenue from additional solar energy facilities, partially offset by an increase in our general and administrative expenses. Adjusted EBITDA margin* during the third quarter of 2022 was 64%.

Closing of DESRI Portfolios

Altus Power announced today that the company has closed on the purchase of approximately 88 MWs of operating solar assets from D.E. Shaw Renewable Investments, L.L.C. (DESRI) which were previously under definitive agreements as announced on September 27, 2022.

Balance Sheet and Liquidity

Altus Power ended the third quarter of 2022 with $290.9 million in unrestricted cash and cash equivalents, and $545.0 million of total debt. The Company expects to fund its operations using available cash, additional borrowings under its debt facilities and third-party tax equity financing.

New Revolving Credit Facility

Today Altus Power announced it has obtained commitments with a syndicate of banks for up to $200 million revolving credit facility. This facility is expected to maximize the Company's financial flexibility and enhance its liquidity. The company is currently in the process of definitive documentation and will update the market if and when completed.

Completed Warrant Redemption

As announced on October 20, 2022 the Company completed redemption of all of its outstanding public and private warrants in exchange for a total of 4,058,845 shares of Class A Common Stock and net cash proceeds of $83,061. In connection with the redemption, the Public Warrants ceased trading on the New York Stock Exchange on October 14, 2022 and were delisted. Please refer to the Companies press releases announcing the offering on September 15, 2022, completion of the offering on October 20, 2022 as well as our Warrant Holder redemption notice and Warrant Holder FAQ documents for additional information.

2022 Guidance

Altus Power's 2022 adjusted EBITDA* is expected to be near the low-end of its previous guidance. The primary driver for the revision to the company's adjusted EBITDA* outlook was the extended time to close its previously announced acquisition, which has now been completed. The Company's expectation for 2022 adjusted EBITDA margin* remains unchanged in the mid-50% range.

Use of Non-GAAP Financial Information

*Denotes Non-GAAP financial measure. We present our operating results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). We believe certain financial measures, such as adjusted EBITDA and adjusted EBITDA margin provide users of our financial statements with supplemental information that may be useful in evaluating our business. The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We define adjusted EBITDA as net income (loss) plus net interest expense, depreciation, amortization and accretion expense, income tax expense, acquisition and entity formation costs, non-cash compensation expense, and excluding the effect of certain non-recurring items we do not consider to be indicative of our ongoing operating performance such as, but not limited to, gain on fair value remeasurement of contingent consideration, gain on disposal of property, plant and equipment, change in fair value of redeemable warrant liability, change in fair value of alignment shares, loss on extinguishment of debt, and other miscellaneous items of other income and expenses.

We define adjusted EBITDA margin as adjusted EBITDA divided by operating revenues.

Adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures that we use to measure our performance. We believe that investors and analysts also use adjusted EBITDA in evaluating our operating performance. This measurement is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The GAAP measure most directly comparable to adjusted EBITDA is net income and to adjusted EBITDA margin is net income over operating revenues. The presentation of adjusted EBITDA and adjusted EBITDA margin should not be construed to suggest that our future results will be unaffected by non-cash or non-recurring items. In addition, our calculation of adjusted EBITDA and adjusted EBITDA margin are not necessarily comparable to adjusted EBITDA as calculated by other companies and investors and analysts should read carefully the components of our calculations of these non-GAAP financial measures.

We believe adjusted EBITDA is useful to management, investors and analysts in providing a measure of core financial performance adjusted to allow for comparisons of results of operations across reporting periods on a consistent basis. These adjustments are intended to exclude items that are not indicative of the ongoing operating performance of the business. Adjusted EBITDA is also used by our management for internal planning purposes, including our consolidated operating budget, and by our board of directors in setting performance-based compensation targets. Adjusted EBITDA should not be considered an alternative to but viewed in conjunction with GAAP results, as we believe it provides a more complete understanding of ongoing business performance and trends than GAAP measures alone. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP.

Altus Power does not provide GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty and without unreasonable effort, items such as acquisition and entity formation costs, gain on fair value remeasurement of contingent consideration, change in fair value of redeemable warrant liability, change in fair value of alignment shares. These items are uncertain, depend on various factors, and could be material to Altus Power’s results computed in accordance with GAAP.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements may be identified by the use of words such as "aims," "believes," "expects," "intends," "aims", "may," “could,” "will," "should," "plans," “projects,” “forecasts,” “seeks,” “anticipates,” “goal,” “objective,” “target,” “estimate,” “future,” “outlook,” "strategy," “vision,” or variations of such words or similar terminology that predict or indicate future events or trends or that are not statements of historical matters. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to Altus Power’s future prospects, developments and business strategies. These statements are based on Altus Power’s management’s current expectations and beliefs, as well as a number of assumptions concerning future events.

Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Altus Power’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (1) the risk that pending acquisitions may not close in the anticipated timeframe or at all due to a closing condition not being met; (2) failure to obtain required consents or regulatory approvals in a timely manner or otherwise; (3) the ability of Altus Power to successfully integrate the acquisition of solar assets into its business and generate profit from their operations; (4) the ability of Altus Power to retain customers and maintain and expand relationships with business partners, suppliers and customers; (5) the risk of litigation and/or regulatory actions related to the proposed acquisition of solar assets; (6) the possibility that Altus Power may be adversely affected by other economic, business, regulatory and/or competitive factors; and (7) the impact of COVID-19, inflationary pressures, and supply chain issues on Altus Power's business.

Additional factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found under the heading “Risk Factors” in Altus Power’s Form 10-K filed with the Securities and Exchange Commission on March 24th, 2022, as well as the other information we file with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made and the information and assumptions underlying such statement as we know it and on the date such statement was made, and Altus Power undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise.

This press release is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Altus Power and is not intended to form the basis of an investment decision in Altus Power. All subsequent written and oral forward-looking statements concerning Altus Power or other matters and attributable to Altus Power or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.

Conference Call Information

The Altus Power management team will host a conference call to discuss its third quarter 2022 financial results later this morning at 8:30 a.m. Eastern Time. The call can be accessed via a live webcast accessible on the Events & Presentations page in the Investor Relations section of Altus Power's website at https://investors.altuspower.com/overview/default.aspx. An archive of the webcast will be available after the call on the Investor Relations section of Altus Power's website as well.

About Altus Power, Inc.

Altus Power, based in Stamford, Connecticut, is a premier commercial-scale clean electrification company serving commercial, industrial, public sector and community solar customers with end-to-end solutions. Altus Power originates, develops, owns and operates locally-sited solar generation, energy storage and charging infrastructure across the nation. Visit www.altuspower.com to learn more.

Altus Power, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except share and per share data)

 

 

Three Months Ended September
30,

 

Nine Months Ended September
30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating revenues, net

$

30,438

 

 

$

20,138

 

 

$

74,399

 

 

$

50,222

 

Operating expenses

 

 

 

 

 

 

 

Cost of operations (exclusive of depreciation and amortization shown separately below)

 

4,488

 

 

 

3,849

 

 

 

12,842

 

 

 

10,005

 

General and administrative

 

6,560

 

 

 

4,630

 

 

 

19,502

 

 

 

12,073

 

Depreciation, amortization and accretion expense

 

7,134

 

 

 

5,309

 

 

 

20,819

 

 

 

14,167

 

Acquisition and entity formation costs

 

237

 

 

 

954

 

 

 

583

 

 

 

1,186

 

Loss (gain) on fair value remeasurement of contingent consideration, net

 

825

 

 

 

(350

)

 

 

(146

)

 

 

(2,400

)

Gain on disposal of property, plant and equipment

 

(2,222

)

 

 

 

 

 

(2,222

)

 

 

 

Stock-based compensation

 

2,708

 

 

 

34

 

 

 

6,670

 

 

 

111

 

Total operating expenses

$

19,730

 

 

$

14,426

 

 

$

58,048

 

 

$

35,142

 

Operating income

 

10,708

 

 

 

5,712

 

 

 

16,351

 

 

 

15,080

 

Other (income) expense

 

 

 

 

 

 

 

Change in fair value of redeemable warrant liability

 

29,564

 

 

 

 

 

 

6,447

 

 

 

 

Change in fair value of alignment shares liability

 

72,418

 

 

 

 

 

 

9,367

 

 

 

 

Other (income) expense, net

 

(2,267

)

 

 

1,087

 

 

 

(2,860

)

 

 

838

 

Interest expense, net

 

5,657

 

 

 

5,223

 

 

 

15,768

 

 

 

13,962

 

Loss on extinguishment of debt

 

 

 

 

3,245

 

 

 

 

 

 

3,245

 

Total other expense

$

105,372

 

 

$

9,555

 

 

$

28,722

 

 

$

18,045

 

Loss before income tax expense

$

(94,664

)

 

$

(3,843

)

 

$

(12,371

)

 

$

(2,965

)

Income tax (expense) benefit

 

(1,964

)

 

 

2,552

 

 

 

(2,548

)

 

 

1,497

 

Net loss

$

(96,628

)

 

$

(1,291

)

 

$

(14,919

)

 

$

(1,468

)

Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests

 

352

 

 

 

(236

)

 

 

(2,473

)

 

 

(186

)

Net loss attributable to Altus Power, Inc.

$

(96,980

)

 

$

(1,055

)

 

$

(12,446

)

 

$

(1,282

)

Net loss per share attributable to common stockholders

 

 

 

 

 

 

 

Basic

$

(0.63

)

 

$

(0.01

)

 

$

(0.08

)

 

$

(0.01

)

Diluted

$

(0.63

)

 

$

(0.01

)

 

$

(0.08

)

 

$

(0.01

)

Weighted average shares used to compute net loss per share attributable to common stockholders

 

 

 

 

 

 

 

Basic

 

154,455,228

 

 

 

88,741,089

 

 

 

153,482,503

 

 

 

88,741,089

 

Diluted

 

154,455,228

 

 

 

88,741,089

 

 

 

153,482,503

 

 

 

88,741,089

 

Altus Power, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share and per share data)

 

 

As of
September 30,
2022

 

As of
December 31,
2021

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

290,894

 

 

$

325,983

 

Current portion of restricted cash

 

2,477

 

 

 

2,544

 

Accounts receivable, net

 

15,725

 

 

 

9,218

 

Other current assets

 

6,406

 

 

 

6,659

 

Total current assets

 

315,502

 

 

 

344,404

 

Restricted cash, noncurrent portion

 

4,018

 

 

 

1,794

 

Property, plant and equipment, net

 

788,132

 

 

 

745,711

 

Intangible assets, net

 

19,571

 

 

 

16,702

 

Other assets

 

3,107

 

 

 

4,638

 

Total assets

$

1,130,330

 

 

$

1,113,249

 

Liabilities, redeemable noncontrolling interests, and stockholders' equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

2,382

 

 

$

3,591

 

Interest payable

 

4,459

 

 

 

4,494

 

Current portion of long-term debt, net

 

17,321

 

 

 

21,143

 

Due to related parties

 

47

 

 

 

 

Other current liabilities

 

8,455

 

 

 

3,663

 

Total current liabilities

 

32,664

 

 

 

32,891

 

Redeemable warrant liability

 

12,715

 

 

 

49,933

 

Alignment shares liability

 

136,826

 

 

 

127,474

 

Long-term debt, net of unamortized debt issuance costs and current portion

 

527,709

 

 

 

524,837

 

Intangible liabilities, net

 

12,532

 

 

 

13,758

 

Asset retirement obligations

 

7,933

 

 

 

7,628

 

Deferred tax liabilities, net

 

11,973

 

 

 

9,603

 

Other long-term liabilities

 

8,316

 

 

 

5,587

 

Total liabilities

$

750,668

 

 

$

771,711

 

Commitments and contingent liabilities (Note 10)

 

 

 

Redeemable noncontrolling interests

 

18,444

 

 

 

15,527

 

Stockholders' equity

 

 

 

Common stock $0.0001 par value; 988,591,250 shares authorized as of September 30, 2022, and December 31, 2021; 157,696,560 and 153,648,830 shares issued and outstanding as of September 30, 2022, and December 31, 2021, respectively

 

16

 

 

 

15

 

Preferred stock $0.0001 par value; 10,000,000 shares authorized, zero shares issued and outstanding as of September 30, 2022, and December 31, 2021

 

 

 

 

 

Additional paid-in capital

 

455,869

 

 

 

406,259

 

Accumulated deficit

 

(113,802

)

 

 

(101,356

)

Total stockholders' equity

$

342,083

 

 

$

304,918

 

Noncontrolling interests

 

19,135

 

 

 

21,093

 

Total equity

$

361,218

 

 

$

326,011

 

Total liabilities, redeemable noncontrolling interests, and stockholders' equity

$

1,130,330

 

 

$

1,113,249

 

Altus Power, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)

 

 

Nine Months Ended September
30,

 

 

2022

 

 

 

2021

 

Cash flows from operating activities

 

 

 

Net loss

$

(14,919

)

 

$

(1,468

)

Adjustments to reconcile net loss to net cash from operating activities:

 

 

 

Depreciation, amortization and accretion

 

20,819

 

 

 

14,167

 

Unrealized gain on interest rate swaps

 

(2,387

)

 

 

(356

)

Deferred tax expense

 

2,370

 

 

 

(1,517

)

Loss on extinguishment of debt

 

 

 

 

3,245

 

Amortization of debt discount and financing costs

 

2,151

 

 

 

2,165

 

Change in fair value of redeemable warrant liability

 

6,447

 

 

 

 

Change in fair value of alignment shares liability

 

9,367

 

 

 

 

Remeasurement of contingent consideration

 

(146

)

 

 

(2,400

)

Gain on disposal of property, plant and equipment

 

(2,222

)

 

 

 

Stock-based compensation

 

6,670

 

 

 

111

 

Other

 

(171

)

 

 

(232

)

Changes in assets and liabilities, excluding the effect of acquisitions

 

 

 

Accounts receivable

 

(6,405

)

 

 

(2,384

)

Other assets

 

2,927

 

 

 

(148

)

Accounts payable

 

(1,209

)

 

 

6,221

 

Interest payable

 

(2

)

 

 

566

 

Other liabilities

 

1,549

 

 

 

278

 

Net cash provided by operating activities

 

24,839

 

 

 

18,248

 

Cash flows used for investing activities

 

 

 

Capital expenditures

 

(35,670

)

 

 

(10,255

)

Payments to acquire businesses, net of cash and restricted cash acquired

 

 

 

 

(192,565

)

Payments to acquire renewable energy facilities from third parties, net of cash and restricted cash acquired

 

(13,342

)

 

 

(10,673

)

Proceeds from disposal of property, plant and equipment

 

3,605

 

 

 

 

Other

 

496

 

 

 

 

Net cash used for investing activities

 

(44,911

)

 

 

(213,493

)

Cash flows used for financing activities

 

 

 

Proceeds from issuance of long-term debt

 

 

 

 

288,922

 

Repayment of long-term debt

 

(13,301

)

 

 

(148,790

)

Payment of debt issuance costs

 

(68

)

 

 

(2,247

)

Payment of debt extinguishment costs

 

 

 

 

(1,477

)

Payment of dividends and commitment fees on Series A preferred stock

 

 

 

 

(17,748

)

Payment of deferred transaction costs

 

 

 

 

(4,254

)

Payment of contingent consideration

 

(72

)

 

 

(129

)

Payment of equity issuance costs

 

(744

)

 

 

 

Proceeds from issuance of Series A preferred stock

 

 

 

 

82,000

 

Cash proceeds from public warrant exercise

 

19

 

 

 

 

Contributions from noncontrolling interests

 

3,220

 

 

 

2,708

 

Distributions to noncontrolling interests

 

(1,914

)

 

 

(1,938

)

Redemption of noncontrolling interests

 

 

 

 

(831

)

Net cash used for financing activities

 

(12,860

)

 

 

196,216

 

Net decrease in cash, cash equivalents, and restricted cash

 

(32,932

)

 

 

971

 

Cash, cash equivalents, and restricted cash, beginning of period

 

330,321

 

 

 

38,206

 

Cash, cash equivalents, and restricted cash, end of period

$

297,389

 

 

$

39,177

 

 

Nine Months Ended September
30,

 

 

2022

 

 

2021

Supplemental cash flow disclosure

 

 

 

Cash paid for interest, net of amounts capitalized

$

14,927

 

 

$

11,404

Cash paid for taxes

 

99

 

 

 

99

Non-cash investing and financing activities

 

 

 

Asset retirement obligations

$

276

 

 

$

2,391

Debt assumed through acquisitions

 

11,948

 

 

 

Redeemable noncontrolling interest assumed through acquisitions

 

2,125

 

 

 

Acquisitions of property and equipment included in other current liabilities

 

4,004

 

 

 

622

Deferred transaction costs not yet paid

 

 

 

 

2,801

Accrued dividends and commitment fees on Series A preferred stock

 

 

 

 

13,584

Construction loan conversion

 

(4,186

)

 

 

Term loan conversion

 

4,186

 

 

 

Conversion of alignment shares into common stock

 

15

 

 

 

Exchange of warrants into common stock

 

7,779

 

 

 

Warrants exercised on a cashless basis

 

35,858

 

 

 

Non-GAAP Financial Reconciliation

Reconciliation of GAAP reported Net Income to non-GAAP adjusted EBITDA:

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2022

 

2021

 

2022

 

2021

 

(in thousands)

 

(in thousands)

Reconciliation of Net loss to Adjusted EBITDA:

 

 

 

 

 

 

 

Net loss

$

(96,628

)

 

$

(1,291

)

 

$

(14,919

)

 

$

(1,468

)

Income tax expense (benefit)

 

1,964

 

 

 

(2,552

)

 

 

2,548

 

 

 

(1,497

)

Interest expense, net

 

5,657

 

 

 

5,223

 

 

 

15,768

 

 

 

13,962

 

Depreciation, amortization and accretion expense

 

7,134

 

 

 

5,309

 

 

 

20,819

 

 

 

14,167

 

Stock-based compensation

 

2,708

 

 

 

34

 

 

 

6,670

 

 

 

111

 

Acquisition and entity formation costs

 

237

 

 

 

954

 

 

 

583

 

 

 

1,186

 

Loss (gain) on fair value of contingent consideration, net

 

825

 

 

 

(350

)

 

 

(146

)

 

 

(2,400

)

Gain on disposal of property, plant and equipment

 

(2,222

)

 

 

 

 

 

(2,222

)

 

 

 

Change in fair value of redeemable warrant liability

 

29,564

 

 

 

 

 

 

6,447

 

 

 

 

Change in fair value of alignment shares liability

 

72,418

 

 

 

 

 

 

9,367

 

 

 

 

Loss on extinguishment of debt

 

 

 

 

3,245

 

 

 

 

 

 

3,245

 

Other (income) expense, net

 

(2,267

)

 

 

1,087

 

 

 

(2,860

)

 

 

838

 

Adjusted EBITDA

$

19,390

 

 

$

11,659

 

 

$

42,055

 

 

$

28,144

 

Reconciliation of non-GAAP adjusted EBITDA margin:

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

(in thousands)

Reconciliation of Adjusted EBITDA margin:

 

 

 

 

 

 

 

Adjusted EBITDA

$

19,390

 

 

$

11,659

 

 

$

42,055

 

 

$

28,144

 

Operating revenues, net

 

30,438

 

 

 

20,138

 

 

 

74,399

 

 

 

50,222

 

Adjusted EBITDA margin

 

64

%

 

 

58

%

 

 

57

%

 

 

56

%

1 Conversion from megawatt hours according to EPA


Contacts

Altus Power for Investor or Media Inquiries:
Chris Shelton, Head of Investor Relations
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Hospitality veteran Hussein Tawalbeh to lead sales and operations in the region from Dubai UAE

ALPHARETTA, Ga.--(BUSINESS WIRE)--Agilysys, Inc. (Nasdaq: AGYS), a leading global provider of hospitality software solutions that deliver High Return Hospitality, today announced it is bringing its Agilysys Hospitality Cloud solutions to the Middle East. While Agilysys previously has cultivated customers in the region through its Europe, Middle East and Africa (EMEA) operations in the United Kingdom, the company now has hired Hussein Tawalbeh, an executive whose hospitality expertise comes through a 20-year career in the region, to lead Agilysys’ Middle East and North Africa (MENA) operations from Dubai UAE.

Dubai is on track to becoming the world’s most visited destination welcoming 7.1 million international overnight visitors as of June 2022, a 183% year-over-year increase. The hospitality sector across the Middle East is undergoing a dramatic transformation – particularly in the luxury, upper upscale and upscale sectors – that is expected to fuel growth over the next several years.

A recent trend report by Lodging Econometrics notes that the construction pipeline for the Middle East at the end of the second quarter 2022 includes 545 projects comprising 140,055 rooms, with 72% of these projects in the top three chain scales – luxury, upper upscale, and upscale. Forecast data shows 114 hotel openings totaling 28,450 rooms expected in 2023 and 125 hotel openings accounting for 30,408 rooms expected in 2024.

“Dubai has taken a strategic approach to the hospitality industry, establishing a top-notch infrastructure and hosting world-renowned events to draw visitors from all over the world,” said Hussein Tawalbeh, Regional Director, Middle East and North Africa (MENA) for Agilysys. “Deepening Agilysys’ focus in the Middle East is a natural move as this region develops meaningful growth and exceptional hospitality experiences,” he added.

Mr. Tawalbeh’s hospitality experience in the Middle East includes leadership and management positions at global hospitality solution providers; and at in-region properties and management companies, including Radisson Blu; Kempenski Hotels and Autograph Collection.

Agilysys debuted its marketing presence in the Middle East as a sponsor of The Hospitality Network’s The 2022 Stakeholder Conference (thehospitalitynetwork.com) held 18-21 October 2022.

Don DeMarinis, Agilysys Senior Vice President, noted, “We were impressed by the hospitality leaders and decision-makers with whom we met at the 2022 Stakeholders Conference. Those conversations have informed our approach to bringing our market-leading hospitality solutions to the Middle East. In addition, we are excited to add Hussein Tawalbeh’s meaningful hospitality knowledge and experience in the Middle East to our team as we help leading properties in the region to achieve High Return Hospitality,” he concluded.

About Agilysys

Agilysys is well known for its long heritage of hospitality-focused technology innovation. The Company delivers modular and integrated software solutions and expertise to businesses seeking to maximize Return on Experience (ROE) through hospitality encounters that are both personal and profitable. Over time, customers achieve High Return Hospitality by consistently delighting guests, retaining staff and growing margins. Customers around the world include: branded and independent hotels; multi-amenity resort properties; casinos; property, hotel and resort management companies; cruise lines; corporate dining providers; higher education campus dining providers; food service management companies; hospitals; lifestyle communities; senior living facilities; stadiums; and theme parks. The Agilysys Hospitality Cloud combines core operational systems for property management (PMS), point-of-sale (POS) and Inventory and Procurement (I&P) with Experience Enhancers that meaningfully improve interactions for guests and for employees across dimensions such as digital access, mobile convenience, self-service control, personal choice, payment options, service coverage and real-time insights to improve decisions. Core solutions and Experience Enhancers are selectively combined in Hospitality Solution Studios™ tailored to specific hospitality settings and business needs. www.Agilysys.com


Contacts

Media:
Jen Reeves, Agilysys, Inc., 770-810-6007,This email address is being protected from spambots. You need JavaScript enabled to view it.
Kaylee Sims, Arketi Group (for Agilysys), 404-697-0137, This email address is being protected from spambots. You need JavaScript enabled to view it.

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Jessica Hennessy, Agilysys, Inc., 770-810-6116, This email address is being protected from spambots. You need JavaScript enabled to view it.

  • Q3 revenue of $2.4 million, a 43% increase from the prior year third quarter. Income from grants was $0.3 million, and the total of revenue and income from grants was $2.7 million. 
  • Net loss in Q3 of $11.5 million or $0.22 per share.
  • Company holds cash reserves of $42.4 million as of September 30, 2022.

Summary of Operational Highlights


  • Official ratification received from the European Commission of the European Union for funding of €782.1 million under the Important Projects of Common European Interest (“IPCEI”) Hydrogen – Technology for Advent’s Green HiPo project.
  • Three-year agreement with the German State of Brandenburg for the supply of methanol-powered fuel cell systems, which will be installed in select critical communication sites in the region.
  • The successful delivery of Advent’s portable fuel cell products to the Hellenic Army’s Special Operations Units.
  • Launch of Honey Badger 50™, a compact portable fuel cell system and quiet power supply for use in off-grid field applications.
  • Memorandum of Understanding with DEPA Commercial S.A., the leading importer of pipeline gas and liquefied natural gas in Greece, for the strategic collaboration on hydrogen projects of common interest.
  • Memorandum of Understanding with the New York State Energy Research and Development Authority and more than 60 clean hydrogen ecosystem partners, to develop a proposal that will enable the Northeastern United States to become one of at least four regional clean hydrogen hubs designated through the federal Regional Clean Hydrogen Hubs program, included in the bipartisan Infrastructure Investment and Jobs Act.
  • Memorandum of Understanding with Hydrogen Systems, Inc., a hydrogen energy solutions company based in Riyadh, Saudi Arabia, to provide integrated hydrogen solutions and value-added support to industrial and renewable energy markets in the Middle East.

BOSTON--(BUSINESS WIRE)--Advent Technologies Holdings, Inc. (NASDAQ: ADN) (“Advent” or the “Company”), an innovation-driven leader in the fuel cell and hydrogen technology space, today announced its consolidated financial results for the three months ended September 30, 2022. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).

Q3 2022 Financial Highlights

(All comparisons are to Q3 2021, unless otherwise stated)

  • Revenue of $2.4 million, a 43% year-over-year increase.
  • Operating expenses of $10.8 million, a year-over-year decrease of $3.2 million, primarily due to $2.4 million of executive severance recognized in the prior year third quarter, as well as a year-over-year reduction in stock-based compensation expenses of $0.6 million.
  • Net loss was $11.5 million, and adjusted net loss was $10.6 million. Adjusted net loss excludes a $0.9 million loss from the change in the fair value of outstanding warrants.
  • Net loss per share was $0.22.
  • Cash reserves were $42.4 million as of September 30, 2022, a decrease of $4.1 million from June 30, 2022. In the third quarter of 2022, the Company received $3.8 million in tenant improvement allowances for the Hood Park R&D and manufacturing facility in Charlestown, MA, which is net of additional spending for the build-out of the facility.

Advent continued to make significant progress in the last quarter. Our Green HiPo project was ratified by the EU in July, which now clears the way for the Greek State to provide the appropriate funding,” said Dr. Vasilis Gregoriou, Chairman and CEO of Advent Technologies. “Advent has also made significant progress entering into several MoUs for new business globally. We have continued to streamline our operations which has resulted in a clear focus on core technical excellence in our key market sectors, and this has enabled us to gain commercial traction from global OEMs. Advent will actively pursue this commercial strategy, which will augment our pipeline with quality opportunities and partnerships. Along with Green HiPo, we remain confident that we are on a firm path for growth, and we look forward to keeping you appraised of future developments.”

Q3 2022 Business Updates

Inaugural Investor Day: On July 7, 2022, Advent hosted its 2022 Investor Day, where Advent’s executives and senior leadership discussed the Company’s most recent advancements with its fuel cell products and systems, hydrogen development projects, and business activities in markets across the U.S., Europe and Asia. The key areas that were addressed were:

  • The Company’s Green HiPo Project, with planned funding of €782.1 million over six years from the Greek State, aimed at producing HT-PEM fuel cells and electrolysers to decarbonize global power production via hydrogen.
  • R&D partnerships and collaborations with OEMs, the U.S. Department of Energy and the U.S. Department of Defense.
  • Innovations in HT-PEM MEAs and water electrolysis.
  • Advent’s commercial activities in global markets aimed at replacing existing power systems with hydrogen alternatives.

Green HiPo Receives Ratification from the EU: On July 18, 2022, Advent announced that its Green HiPo project under the framework of the Important Projects of Common European Interest (“IPCEI”) Hydrogen – Technology, received official ratification from the European Commission (“EC”) of the European Union. The ratification of Green HiPo was among 41 projects under the umbrella “IPCEI Hy2Tech” jointly prepared and notified by fifteen Member States: Austria, Belgium, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Italy, Netherlands, Poland, Portugal, Slovakia, and Spain. The Member States will provide up to €5.4 billion in public funding, which is expected to unlock an additional €8.8 billion in private investments. As part of this IPCEI, 35 companies with activities in one or more Member States, including small and medium-sized enterprises (“SMEs”) and start-ups, will participate in these 41 projects. Advent is one of only eight SMEs to have received ratification. The direct participants will closely cooperate with each other through numerous planned collaborations and also with more than 300 external partners, such as universities, research organizations, and SMEs across Europe. The IPCEI will cover a wide part of the hydrogen technology value chain, including: (i) the generation of hydrogen, (ii) fuel cells, (iii) storage, transportation, and distribution of hydrogen, and (iv) end-users’ applications, in particular the mobility sector. Advent participates in both the generation of hydrogen and fuel cells.

According to a press release issued by the Hellenic Ministry of Development and Investments, the EC approved State Aid for Greece up to the amount of €800 million public expenditure, including €782.1 million for Green HiPo. In making its assessment, the EC determined that the Green HiPo project satisfied its requirements, which include that:

  • The project contributes to a common objective by supporting a key strategic value chain for the future of Europe, as well as the objectives of key EU policy initiatives such as the Green Deal, the EU Hydrogen Strategy, and REPowerEU;
  • The IPCEI is highly ambitious, as it is aimed at developing technologies and processes that go beyond what the market currently offers and will allow major improvements in performance, safety, environmental impact as well as cost efficiencies;
  • The IPCEI also involves significant technological and financial risks, and public support is, therefore, necessary to provide incentives to companies to carry out the investment; and
  • The results of the project will be widely shared by participating companies benefitting from the public support with the European scientific community and industry beyond the companies and countries that are part of the ICPEI. As a result, positive spill-over effects will be generated throughout Europe.

Over the initial funding period and in accordance with Green HiPo’s parameters, Advent will innovatively develop, design, and manufacture fuel cell systems and electrolyser systems in Greece’s Western Macedonia region.

Launch of the Honey Badger 50™ Fuel Cell System: On August 4, 2022, Advent announced the launch of its Honey Badger 50™ (“HB50”), a compact portable fuel cell system and quiet power supply for use in off-grid field applications such as military and rescue operations. The launch of Advent’s portable power system coincided with the Company’s fulfilment of its first shipment order from the U.S. Department of Defense. The HB50 power system can be fuelled by biodegradable methanol, allowing near silent generation of up to 50W of continuous power with clean emissions. Designed for covert operations, HB50 can easily power radio and satellite communications gear, remote fixed and mobile surveillance systems, and laptop computers along with more general battery charging needs. HB50 is a unique technology that can provide 65% of weight savings versus batteries over a typical 72-hour mission. The weight savings benefit increases further for longer missions.

HB50’s unique design allows it to be used in soldier-worn configurations or operated inside a portable backpack or vehicle while charging batteries and powering soldier systems, while its thermal features allow it to operate within an ambient temperature range of -20°C to +55°C. Aside from its optimized compatibility with Integrated Visual Augmentation System (“IVAS”), HB50 can also power devices such as high frequency radios like the model 117G, as well as B-GAN and StarLink terminals. HB50’s durability allows it to be easily deployed in challenging conditions and climates while supporting mission mobility for three to seven days without the need to re-supply.

Since Honey Badger’s fuel cell technology can run on hydrogen or liquid fuels, the system can operate at a fraction of the weight of traditional military-grade batteries to meet the U.S. Department of Defense’s continuously evolving needs for ‘on-the-go’ electronics. As military adoption and use of IVAS equipment continues to evolve, the highly portable lightweight power solutions like Honey Badger will become a mission critical necessity.

Memorandum of Understanding (“MoU”) with DEPA Commercial S.A.: On August 8, 2022, Advent announced the signing of a MoU with DEPA Commercial S.A., the leading importer of pipeline gas and liquefied natural gas (“LNG”) in Greece, to enter into a strategic collaboration on hydrogen projects of common interest. The MoU sets out the framework for a forthcoming mutually binding agreement. The parties have preliminarily agreed to the following actions:

  • Collaborate on the production of environmentally friendly hydrogen as a fuel with the participation of other major industrial partners.
  • Co-develop a proprietary and highly differentiated CHP system ready for mass production with efficiency approaching 90% and with multi-fuel operating capabilities (such as hydrogen, natural gas, efuels) that can address the key current, future, and on-grid, off-grid operation modes and business cases.
  • Create an innovation hub for the Greek hydrogen and fuel cell industry and develop synergies for promoting hydrogen and related technologies.

Delivery of Advent’s Portable Fuel Cell Products to the Hellenic Army’s Special Operations Units: On August 17, 2022, Advent announced the successful delivery of Advent’s portable fuel cell products to the Hellenic Army’s Special Operations Units. Advent’s fuel cell technology powers a highly sophisticated, incredibly portable battery charger designed to meet the rugged off-grid power needs in performance-demanding settings, such as those regularly faced by the Hellenic Army’s Special Operations Units and other military divisions. The portable fuel cell can be quickly and efficiently utilized by remote military units to power off-grid radio, surveillance gear, and other mobile electronic military equipment by operating under even the most challenging combat conditions. Advent’s portable fuel cell uses the Company’s proprietary methanol reformation technology to deliver premium performance alongside a significant reduction in size and weight.

Being lightweight and compact, the portable fuel cell fits in soldier plate carrier systems and rucksacks, maximizing efficiency and portability across a full range of military operations. The portable fuel cell delivers up to 50W of continuous power and up to 85W of peak power, ensuring a reliable charging experience to a wide variety of the high-power electronic devices regularly used by the Hellenic Army’s Special Operations Units in deployment. Advent’s portable fuel cell operates silently and can run uninterrupted off-grid for up to two weeks with a single hot-swappable fuel tank. The portable fuel cells have been deployed successfully within the framework of PARMENION National large-scale Joint Exercise.

Memorandum of Understanding with the New York State Energy Research and Development Authority (“NYSERDA”): On August 31, 2022, Advent announced that it co-signed a MoU with the NYSERDA and more than 60 clean hydrogen ecosystem partners. Under the MoU, the parties will collaborate to develop a proposal that will enable the Northeastern United States to become one of at least four regional clean hydrogen hubs designated through the federal Regional Clean Hydrogen Hubs program, included in the bipartisan Infrastructure Investment and Jobs Act.

The coalition of six states (Connecticut, Massachusetts, Maine, New Jersey, New York, and Rhode Island), along with more than 60 clean hydrogen ecosystem partners, are laying the groundwork for a proposal for the U.S. Department of Energy funding opportunity, with up to $8 billion in total funding available. After the initial announcement in March 2022, New York has continued to add strategic partners that now include 14 private sector industry leaders, 12 utilities, 20 hydrogen technology original equipment manufacturers, 10 universities, seven non-profit organizations, five other states, two transportation companies, and three state agencies.

Consortium partners have committed to collaborate with the NYSERDA, New York Power Authority, and Empire State Development for the development of the proposal to advance clean hydrogen projects. At the same time, partnering states will also coordinate with their respective state entities to help align the consortium’s efforts with each state’s climate and clean energy goals, such as Massachusetts goal of reaching net-zero carbon emissions by 2050. With the execution of these agreements, the partners will work together to:

  • Define the shared vision and plans for the regional clean hydrogen hub that can advance safe, clean hydrogen energy innovation and investment and address climate change while improving the health, resiliency, and economic development of the region’s residents.
  • Advance a hydrogen hub proposal that makes climate and environmental concerns central to its strategy, which will deliver opportunities and improve the quality of life for under-resourced areas in the region.
  • Perform research and analysis necessary to support the hydrogen hub proposal and to quantify the reduction of greenhouse gas emissions resulting from this project.
  • Develop a framework to ensure the ecosystem for innovation, production, infrastructure, and related workforce development is shared across all partner states.
  • Support environmentally responsible opportunities to develop clean hydrogen in accordance with the participating states’ policies.

The coalition will continue to focus on the integration of renewables – such as onshore and offshore wind, hydropower, and solar PV – and nuclear power into clean hydrogen production and the evaluation of clean hydrogen for use in transportation, including for medium and heavy-duty vehicles, heavy industry, power generation applications, and other appropriate uses consistent with decarbonization efforts.

Memorandum of Understanding with Hydrogen Systems, Inc. (“Hydrogen Systems”): On September 15, 2022, Advent announced the signing of an MoU with Hydrogen Systems, a hydrogen energy solutions company based in Riyadh, Saudi Arabia, to provide integrated hydrogen solutions and value-added support to industrial and renewable energy markets in the Middle East. Under the MoU, Hydrogen Systems aims to utilize a vast number of its existing relationships in the telecom and hydrogen energy marketplace in the Kingdom of Saudi Arabia, and elsewhere throughout the Middle East to market, sell, distribute, install, and service Advent’s full line of high-temperature proton exchange membrane (“HT-PEM”) fuel cells and hydrogen production products. Simultaneously, Advent and Hydrogen Systems intend to collaborate and explore potential large-scale development opportunities for hydrogen fuel cell power applications across the region.

Advent’s family of products, including the Serene and M-ZERO® fuel cell systems, realize a significant carbon advantage over conventional diesel remote power generation technology. HT-PEM fuel cells can operate with a range of low or zero-carbon hydrogen fuels and enable more efficient heat management. Such fuel cells can produce power in extreme ambient temperatures (from -40°C to up to +55°C) and conditions such as high air pollution and low humidity, resulting in a longer lifetime and lower total cost of ownership.

Agreement with the German State of Brandenburg: On September 19, 2022, Advent announced the signing of a three-year agreement with the German State of Brandenburg for the supply of methanol-powered fuel cell systems, which will be installed in select critical communication sites in the region. Advent’s methanol-powered fuel cell systems will be used as a back-up power source for Brandenburg’s BOS digital radio network, replacing the diesel-driven emergency power systems at several sites over the next three years. Germany’s old public safety and security infrastructure relied on an outdated analogue radio system for communication. BOS is a digital, encrypted, and secure means of communication. The new BOS network allows first responders and other public safety officials to communicate easily and securely. The BOS network now covers 99.2% of German territory.

Advent’s solution was selected as part of a tender launched by the German State of Brandenburg, which requested that fuel cell and hydrogen technology companies submit proposals for sustainable and reliable emergency power supply solutions. Prior to Advent’s selection, the performance of the Company’s methanol-powered fuel cells was tested at a site of the BOS digital radio network in Brandenburg, providing further proof of concept for the use of HT-PEM fuel cells as an efficient back-up power source for critical infrastructure applications. Advent’s methanol-powered fuel cells deliver reliable power in an environmentally friendly way – reducing CO2 emissions and operating near silently – while having a low impact on the surroundings. Methanol, as a carrier of hydrogen, allows simpler storage than pure hydrogen and enhances the safety of operations.

Conference Call

The Company will host a conference call on Monday, November 14, 2022, at 9:00 AM ET to discuss its results.

To access the call please dial (888) 660-6182 from the United States, or (929) 203-0891 from outside the U.S. The conference call I.D. number is 3273042. Participants should dial in 5 to 10 minutes before the scheduled time.

A replay of the call can also be accessed via phone through November 28, 2022, by dialing (800) 770-2030 from the U.S., or (647) 362-9199 from outside the U.S. The conference I.D. number is 3273042.

About Advent Technologies Holdings, Inc.

Advent Technologies Holdings, Inc. is a U.S. corporation that develops, manufactures, and assembles complete fuel cell systems, and the critical components for fuel cells in the renewable energy sector. Advent is headquartered in Boston, Massachusetts, with offices in California, Greece, Denmark, Germany, and the Philippines. With more than 150 patents issued, pending, or licensed worldwide for fuel cell technology, Advent holds the IP for next-generation HT-PEM that enable various fuels to function at high temperatures and under extreme conditions – offering a flexible option for the automotive, aviation, defense, oil and gas, marine, and power generation sectors. For more information, please visit www.advent.energy.

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” and other words of similar meaning. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company’s ability to maintain the listing of the Company’s common stock on Nasdaq; future financial performance; public securities’ potential liquidity and trading; impact from the outcome of any known and unknown litigation; ability to forecast and maintain an adequate rate of revenue growth and appropriately plan its expenses; expectations regarding future expenditures; future mix of revenue and effect on gross margins; attraction and retention of qualified directors, officers, employees, and key personnel; ability to compete effectively in a competitive industry; ability to protect and enhance our corporate reputation and brand; expectations concerning our relationships and actions with our technology partners and other third parties; impact from future regulatory, judicial and legislative changes to the industry; ability to locate and acquire complementary technologies or services and integrate those into the Company’s business; future arrangements with, or investments in, other entities or associations; and intense competition and competitive pressure from other companies worldwide in the industries in which the Company will operate; and the risks identified under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2022, as well as the other information we file with the SEC. We caution investors not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and we undertake no obligation to update or revise any of these statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

Presentation of Non-GAAP Financial Measures

In addition to the results provided in accordance with U.S. GAAP throughout this press release, the Company has provided non-GAAP financial measures - Adjusted Net Income / (Loss) and Adjusted EBITDA - which present results on a basis adjusted for certain items. The Company uses these non-GAAP financial measures for business planning purposes and in measuring its performance relative to that of its competitors.


Contacts

Advent Technologies Holdings, Inc.

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PARIS--(BUSINESS WIRE)--Technip Energies N.V. (the "Company”) (PARIS: TE) (ISIN:NL0014559478) hereby announces that it intends to terminate the registration of its Ordinary Shares, par value €0.01 per share, and its reporting obligations under Section 15(d) of the Securities Exchange Act of 1934, as amended, with the United States Securities and Exchange Commission (the “SEC”). For this purpose, the Company intends to file with the SEC a certification under Form 15F today (November 14, 2022). Upon such filing, the Company’s reporting obligations with the SEC will be suspended immediately. The termination of the Company’s registration and reporting obligations is expected to become effective no later than 90 days after such filing if there are no objections from the SEC.

The Company will continue to publish reports it files with the Dutch Financial Markets Authority and the French Financial Markets Authority on its website (https://investors.technipenergies.com), in the English language, in accordance with Rule 12g3-2(b) under the Exchange Act.

About Technip Energies

Technip Energies is a leading Engineering & Technology company for the energy transition, with leadership positions in Liquefied Natural Gas (LNG), hydrogen and ethylene as well as growing market positions in blue and green hydrogen, sustainable chemistry and CO2 management. The Company benefits from its robust project delivery model supported by extensive technology, products and services offering.

Operating in 34 countries, our 15,000 people are fully committed to bringing our clients’ innovative projects to life, breaking boundaries to accelerate the energy transition for a better tomorrow.

Technip Energies is listed on Euronext Paris with American depositary receipts (“ADRs”) trading over-the-counter in the United States. For further information: www.technipenergies.com.


Contacts

Investor relations
Phil Lindsay
Vice-President Investor Relations
Tel: +44 207 585 5051
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Media relations
Stella Fumey
Director Press Relations & Digital Communications
Tel: +33 (1) 85 67 40 95
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Jason Hyonne
Press Relations & Social Media Lead
Tel: +33 1 47 78 22 89
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AIT-Europe teammates vote to support umbrella organization of Childhood Cancer International



AMSTERDAM--(BUSINESS WIRE)--#AITCares--Global supply chain solutions leader AIT Worldwide Logistics is proud to announce it selected Childhood Cancer International – Europe (CCI Europe) as the company’s flagship charitable alliance in its European region.

“No matter where you go around our global network, the fight to end cancer is a mission that’s near and dear to a lot of hearts at AIT, including mine,” said AIT’s Executive Chairman and CEO, Vaughn Moore. “In fact, ending cancer is one of the pillars of AIT Cares, our company’s philanthropic arm. So, the work that CCI Europe is doing makes them a perfect fit as a charitable partner for AIT.”

To achieve CCI Europe’s vision of curing children and adolescents of cancer, the non-profit collaborates with medical professionals, academics, scientists, and professionals across Europe to conduct research, establish diagnosis, treatment, and care standards, enhance survivorship, improve education and networking, and more.

“I am extremely proud that by partnering with the team at CCI Europe we’ve been able to align with AIT’s value of engaging in the communities where we live and work,” said AIT’s Vice President, Europe, Michael Völlnagel. “And it’s an honor to ally with the truly amazing team at CCI Europe, who are fully passionate about saving children’s lives.”

Völlnagel added that the AIT-Europe team has already started its first projects and steps to support CCI Europe in its fight against childhood cancer.

“The passion is already uniting us, and that’s something you could feel during our kick-off project to support this flagship alliance in September as part of the company’s regional leadership meeting in Amsterdam, building and delivering four custom foosball tables for CCI Europe to use towards their mission,” he said.

AIT-Europe teammates selected CCI Europe as their regional charitable partner, first through a nomination process in March 2022, then through a final vote in July 2022, after a vetting process.

St. Jude Children’s Research Hospital® is AIT’s regional flagship charitable alliance for North America. In Asia, AIT-Hong Kong supports the Tung Wah Group of Hospitals, AIT-Taiwan partners with the Taiwan Cardiac Children’s Foundation and AIT-Shanghai is allied with the Aihao Children Rehab Training Center.

To learn more about CCI Europe, visit ccieurope.eu.

About AIT Worldwide Logistics

AIT Worldwide Logistics is a global freight forwarder that helps companies grow by expanding access to markets all over the world where they can sell and/or procure their raw materials, components and finished goods. For more than 40 years, the Chicago-based supply chain solutions leader has relied on a consultative approach to build a global network and trusted partnerships in nearly every industry, including aerospace, automotive, consumer retail, food, government, healthcare, high-tech, industrial and life sciences. Backed by scalable, user-friendly technology, AIT’s flexible business model customizes door-to-door deliveries via sea, air, ground and rail — on time and on budget. With expert teammates staffing more than 100 worldwide locations in Asia, Europe and North America, AIT’s full-service options also include customs clearance, warehouse management and white glove services. Learn more at www.aitworldwide.com.

Our Mission

At AIT, we vigorously seek opportunities to earn our customers’ trust by delivering exceptional worldwide logistics solutions while passionately valuing our co-workers, partners and communities.


Contacts

Matt Sanders
Public Relations Manager
+1 (630) 766-8300
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800-669-4AIT (4248)
www.aitworldwide.com

Investment in European Expansion to Support New Hires and Business Growth in Key Region

NEW YORK--(BUSINESS WIRE)--#ArtificialIntelligence--Nanotronics is pleased to announce the opening of an office in Munich, Germany, led by Managing Director, Marius Fischer, who will report to Global CEO and cofounder, Dr. Matthew Putman. The new office will serve as a central European location for Applications Engineers and Sales Associates to consolidate operations and ensure the highest quality of service and support to the growing customer base in the region.


“Marius’ extensive regional experience managing customers and teams along with his expertise in quality control, semiconductor frontend process automation, and overall tech, will enable him to serve as the ideal office lead who will continue to work closely with U.S. counterparts,” said Matthew Putman. “It is critical for us to have solid support on the ground to meet demanding customer needs across Europe and the Middle East,” he continued. “We have more plans in the region and beyond and Munich is a great start.”

Nanotronics Munich will be located at GmbH Lohstr 24, Technopark II, Haus B (3. OG), 85445 Oberding, Germany.

The company will be exhibiting their unique inspection and security solutions at Booth C1.233 during SEMICON Europa in Munich on November 15-18, 2022. SEMICON Europa is the premiere event for electronics manufacturing bringing together influential participants from all stages of the electronics production process to discuss issues such as supply chain disruption, sustainability, and the most effective ways to build a responsible manufacturing future.

About Nanotronics

Nanotronics is an advanced machines and intelligence company that helps customers across the public, private, and nonprofit sectors solve for the unique inspection and process control challenges of precision manufacturing. A leading developer of optical inspection tools for the semiconductor industry, Nanotronics uses hardware and software to provide industrial-scale, high-throughput, super imaging systems. Deployed across fifteen countries and industry agnostic, Nanotronics works with leading-edge companies, from aerospace, to electronics, to healthcare, to drive up yield, reduce footprint and waste, lower costs, and speed up design iteration, while eliminating laborious manual inspections.

Sales

Learn how you can partner with Nanotronics to implement advanced solutions to increase yields and expand capacity by contacting This email address is being protected from spambots. You need JavaScript enabled to view it.

Careers

Nanotronics seeking to staff the Munich location with intellectually curious, driven tech talent. https://nanotronics.co/careers/.


Contacts

Press inquiries
Jack Kerwin, Director of Strategy and Business Development
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Cecilia McLaren, Marketing and Communications Associate
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S&P Global includes EPIC Corpus Christi Crude Terminal in its Platts Dated Brent Price Assessment

HOUSTON--(BUSINESS WIRE)--EPIC Crude Holdings, LP (“EPIC Crude” or “the Company”) today announced that Platts will include the Company’s Crude Marine Terminal in Corpus Christi as a pre-approved terminal for WTI Midland crude oil in its Platts Dated Brent and Cash BFOE* Market-on-Close (“Dated Brent”) price assessment beginning with June 2023 deliveries.


Dated Brent is the world’s leading crude benchmark and a critical component of the Brent Complex which includes the trading of physically delivered oil as well as financially settled derivatives. WTI Midland will be the first non-North Sea grade of oil to be included in Dated Brent and will only reflect WTI Midland cargoes loaded from pre-approved terminals.

EPIC is honored to be accepted by Platts to deliver WTI Midland crude oil into the Brent Complex," said Brian Freed, Chief Executive Officer of EPIC. "This addition recognizes the strict export quality grade crude oil EPIC delivers, and further highlights the strategic importance of Corpus Christi in meeting the global energy demands.”

EPIC Crude delivers up to 600,000 barrels per day of crude oil from it’s ~3.5 million barrel Robstown Terminal to export terminals and refineries in Corpus Christi and Ingleside, including EPIC’s Crude Marine Terminal capable of loading Aframax-sized tankers.

About EPIC Crude Holdings, LP

EPIC Crude Holdings, LP (“EPIC Crude”) was formed in 2017 to build and operate the EPIC Crude Oil Pipeline, a 700-mile, 30” crude oil pipeline that extends from Orla, Texas to the Port of Corpus Christi and services the Delaware, Midland, and Eagle Ford basins. The Crude Oil Pipeline is currently operating at a capacity of 600,000 barrels per day (bpd), as well as total operational storage of approximately 7,000,000 million barrels. The project includes terminals in Orla, Pecos, Crane, Wink, Midland, Hobson, and Gardendale, with connectivity to the Port of Corpus Christi, including the EPIC Marine Terminal, third-party export terminals and local refineries. EPIC Crude is backed by capital commitments from funds managed by the Private Equity Group of Ares Management Corporation (NYSE: ARES) as well as additional equity ownership by Chevron Corporation (NYSE: CVX), Kinetik Holdings Inc (NASDAQ: KNTK) and Diamondback Energy Inc (NASDAQ: FANG). For more information, visit www.epicmid.com.


Contacts

EPIC Midstream Holdings, LP
David McArthur
Corporate Communications Director
(210) 446-1059
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SANTA CLARA, Calif.--(BUSINESS WIRE)--Mercuria, one of the world’s largest independent energy and commodities groups, today announced an investment in Natron Energy, the global leader in the manufacturing of sodium-ion batteries. The investment will further Natron’s development of sodium-ion battery technology as an energy storage solution for global energy markets.


Natron plans to use the funds to accelerate the production of its sodium-ion batteries, which furthers Mercuria’s continued investment in the energy transition. Natron’s Prussian blue sodium-ion technology offers higher power density, longer life, and superior safety characteristics that make it uniquely suited for applications in energy markets. The supply chain for Natron’s sodium-ion batteries requires zero lithium, cobalt, copper, nickel, or other minerals that are difficult to source.

“We are enthusiastic about our investment in Natron to advance carbon reduction initiatives,” said Jean-François Steels, Vice President of Energy Transition at Mercuria. “We look forward to working together with its team and stakeholders at Natron to advance the mass production of sodium-ion batteries, which are a needed energy transition storage solution.”

Colin Wessells, Natron Co-Founder, and CEO said, “Mercuria’s investment bolsters Natron’s expansion into oil and gas and alternative energy markets and advances carbon reduction initiatives in the oilfield and elsewhere. This is the third such investment in Natron in the last four months, consistent with market enthusiasm for our technology. Mercuria’s investment will accelerate our plans for the world’s first mass production of sodium-ion batteries.”

The Mercuria investment comes on the heels of similar investments in Natron from Liberty Energy, Inc. and Nabors Industries Ltd. earlier this year.

About Mercuria

Established in 2004, the Mercuria group is one of the largest independent energy and commodity groups in the world, bringing efficiency to the commodity value chain with technology, expertise and solutions. Mercuria’s business includes trading flows, strategic assets and structuring activities that generate more than $120 billion in turnover. The company has built upon a series of strategic acquisitions, including the physical commodities trading unit of JPMorgan Chase & Company, Noble Group’s US gas and power business and the Aegean Marine Petroleum Network, reorganized as Minerva Bunkering. It has become one of the most active players in the renewable markets with more than fifty percent of new investments dedicated to the energy transition. www.mercuria.com

About Natron Energy

Natron Energy manufactures sodium-ion battery products based on a unique Prussian blue electrode chemistry for a wide variety of industrial power applications ranging from critical backup power systems to EV fast charging and behind-the-meter applications. Natron’s mission is to transform industrial and grid energy storage markets by providing customers with lower-cost, longer-lasting, more efficient, safer batteries. Natron’s products are UL 1973 listed, offer higher power density, faster recharge, and significantly longer cycle life than incumbent technologies. Natron builds its batteries using commodity materials on existing cell manufacturing lines in Michigan, USA. Learn more about Natron and its sodium-ion technology at Natron.energy.


Contacts

For Mercuria:
Matthew J. Lauer
(US) +1-703-463-1841
(CH) +41-79-172-4995
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For Natron:
Susan Bruns
(US) +1 208-472-0587
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NORTH BETHESDA, Md.--(BUSINESS WIRE)--$ESAB #ESAB--ESAB Corporation (NYSE: ESAB) (the “Company” or “ESAB”) announced today the commencement of an underwritten offering of 6,003,431 shares of its common stock currently owned by Enovis Corporation (“Enovis”), ESAB’s former parent company. ESAB is not selling any shares and will not receive any proceeds from the sale of the shares in the offering or the debt-for-equity exchange (as described below).


Prior to the closing of the offering, Enovis intends to exchange the shares of ESAB common stock to be sold in the offering for indebtedness of Enovis that will be owned by Goldman Sachs & Co. LLC or an affiliate thereof. Goldman Sachs & Co. LLC, as the selling stockholder in the offering, then intends to sell these shares of ESAB common stock to the underwriters in connection with the public offering.

Goldman Sachs & Co. LLC and Evercore ISI are acting as the joint lead book-runners for the offering and as representatives of the underwriters.

The Company has filed a shelf registration statement (including a prospectus) on Form S-1 with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates, but such registration statement has not yet become effective. The securities may not be sold, nor may offers to buy be accepted, prior to the time that the registration statement becomes effective. Before you invest, you should read the base prospectus in that registration statement, the accompanying prospectus supplement and other documents the Company has filed with the SEC for more complete information about the Company and this offering. You may obtain these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies of the prospectus supplement and accompanying base prospectus relating to the offering, when available, may be obtained from Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it.; and Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, by telephone at (888) 474-0200 or by e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it..

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

About ESAB Corporation

ESAB Corporation (NYSE: ESAB) is a world leader in fabrication and specialty gas control technology, providing our partners with advanced equipment, consumables, specialty gas control, robotics, and digital solutions which enable the everyday and extraordinary work that shapes our world.

Forward‐Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include, but are not limited to, statements concerning the terms of the proposed public offering, the Company’s ability to consummate the proposed public offering, the Company’s plans, goals, objectives, outlook, expectations, and intentions, and other statements that are not historical or current fact. Forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including general risks and uncertainties such as market conditions, economic conditions, geopolitical events, changes in laws, regulations or accounting rules, fluctuations in interest rates, terrorism, wars or conflicts, major health concerns, natural disasters or other disruptions of expected business conditions. Factors that could cause the Company’s results to differ materially from current expectations include, but are not limited to, risks related to the war in Ukraine and escalating geopolitical tensions as a result of Russia’s invasion of Ukraine and the related impact on energy supplies and prices; macroeconomic conditions; supply chain disruptions; the impact of the COVID-19 global pandemic, including the rise, prevalence and severity of variants of the virus, actions by governments, businesses and individuals in response to the situation, such as the scope and duration of the outbreak, the nature and effectiveness of government actions and restrictive measures implemented in response; the impact on creditworthiness and financial viability of customers; the Company’s ability to realize the anticipated benefits of its separation from Enovis Corporation, and the financial and operating performance of the Company following the separation; other impacts on the Company’s business and ability to execute business continuity plans; and the other factors detailed in the Company’s Registration Statement on Form S-1 filed on November 14, 2022, as well as other risks discussed in the Company’s filings with the U.S. Securities and Exchange Commission.


Contacts

Investor Relations:
Mark Barbalato
Vice President, Investor Relations
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: 1-301-323-9098

Media:
Tilea Coleman
Vice President, Corporate Communications
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: 1-301-323-9092

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