OAKLAND, Calif.--(BUSINESS WIRE)--Pacific Gas and Electric Company (PG&E) expressed support for a new metallic balloon law that will enhance the safety of PG&E employees, customers and hometowns. Governor Newsom signed Assembly Bill (AB) 847 which allows mylar or metallic balloons to be sold in California only if those balloons do not cause electrical faults when making contact with overhead distribution lines.
Metallic balloons conduct electricity and can pose a significant threat to public safety if released into the air. If they float into powerlines, they can disrupt electric service to an entire neighborhood, cause significant property damage and potentially result in serious injuries.
Here’s an example of what can happen when metallic balloons become loose and hit utility power lines.
Specifically, the new law requires balloons sold in the state after 2027 to meet Institute of Electrical and Electronics Engineer standards. The standard requires that balloons must not be conductive at distribution voltages up to 38 kilovolts (kV). Of the 47 fires caused by metallic balloons in 2020-2021, 44 (90%) occurred on powerlines with voltage below 35 kV. Those fires could have been prevented under the new law.
“Balloon-caused outages have been on the rise in recent years and have the potential to cause ignitions when interacting with electrical assets. This legislation will help minimize that risk and is part of our unwavering focus on keeping our customers and our hometowns safe,” said Sumeet Singh, PG&E Executive Vice President and Chief Risk and Safety Officer.
Metallic balloon-related outages can pose a wildfire risk. In 2015, a metallic balloon coming into contact with overhead lines sparked the Webb Fire in Butte County which burned 75 acres. Since 2018, the number of balloon-related ignitions has increased in frequency.
Balloon-related outages also impact electric reliability. In 2021, metallic balloons that drifted into PG&E power lines caused more than 600 outages, a 27 percent increase from the previous year and the highest number of balloon-related outages that PG&E has seen in a decade.
Thanks to the new legislation, sales of non-compliant celebratory balloons would be banned after January 1, 2027. In the meantime, PG&E reminds customers to follow these important safety tips for metallic balloons:
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and Central California. For more information, visit www.pge.com/ and http://www.pge.com/about/newsroom/.
MEDIA RELATIONS:
415-973-5930
The 147-megawatt project in Concho County, TX will generate enough energy to provide power for 60,000 people and bring millions of dollars to the local economy
AUSTIN, Texas--(BUSINESS WIRE)--#cleanenergy--Today, Avantus (formerly 8minute) announced it has completed the sale of the 147-megawatt (MWdc) Galloway 2 Solar Project to Allianz Capital Partners, one of the Allianz Group's asset managers for alternative equity investments. Located in Concho County in Central Texas, Galloway 2 is expected to inject tens of millions of dollars into the local economy and, once operating, will provide enough affordable, reliable energy for 60,000 people.
“Everyone – from large corporations and international investors to small business owners and local communities – is recognizing the benefits that solar energy can bring,” said Dr. Tom Buttgenbach, Founder and CEO of Avantus. “Projects like Galloway 2 are a critical demonstration that solar is an affordable, zero-carbon energy solution to strengthen the grid, showing our nation can prioritize and uplift our communities while meeting our climate commitments on the global stage.”
Galloway 2 will not only contribute clean energy to Texas’ grid, but it will also support good-paying jobs and increased economic benefits for Concho County and local public services. The project is expected to generate over $18 million in local property taxes, with more than half directly benefitting the Paint Rock Independent School District. Initial work began at the site in the late summer and is ramping to peak construction in the next few weeks, supporting over 250 jobs.
Following the acquisition of the Lotus Solar Farm in 2019, this is the second transaction between Avantus and Allianz Global Investors. As part of the organization’s vision to become a clean energy major, Avantus is proud to work with investment partners like Allianz to rapidly scale clean energy projects at the accelerated rate needed to mitigate the worst impacts of climate change.
“As one of the world’s largest infrastructure and renewable energy investors, we are thrilled to announce this transaction, which meaningfully advances our mission to accelerate renewables deployment globally,” said Daniel de Boer, Head of Renewables - Americas at Allianz Capital Partners.
Avantus retains a minority stake in Galloway 2 and will continue to oversee procurement, construction and asset management. Avantus previously secured a long-term power purchase agreement (PPA) with EDF Energy Services, which is supplying the power to BASF under its commercial and industrial retail power business.
“We are glad to work together with strong partners to secure renewable energy, adding to our energy mix at the site in Freeport, Texas,” said Brad Morrison, Senior Vice President and Site Manager for BASF in Freeport. “This project is an important contribution to our ambitious goal of achieving net-zero emissions by 2050.”
RES is providing the Engineering, Procurement, and Construction services for Galloway 2. Construction financing was arranged by CIT. Tenaska led the tax equity investment for the project and Tenaska’s power marketing affiliate, Tenaska Power Services Co., will serve as the qualified scheduling entity when the project comes online in 2023.
Galloway 2 is Avantus’ third greenfield-developed project to reach construction in Texas, where the company has already brought 600 MWdc of solar energy online. Spanning more than 90 utility-scale projects across Texas and the Southwest, Avantus’ development pipeline exceeds 50 gigawatts (GW) of system capacity, including 42 GW of solar and 78 gigawatt-hours (GWh) of energy storage. This portfolio represents over $70 billion in investments and is large enough to provide power for more than 30 million people, day and night.
ABOUT AVANTUS
Avantus is shaping the future by making reliable, accessible clean energy a global reality. Our legacy of leadership in next generation solar energy includes developing the nation’s largest solar cluster and the first plant to beat fossil fuel prices. Today, we are expanding the boundaries of existing technologies to build one of the largest portfolios of smart power plants with integrated storage, capable of providing 30 million people with low-cost, zero-emission energy – day and night. Through our relentless pursuit of better, we are decarbonizing our planet at the gigaton level, and bringing the advantages of clean energy to all of us.
For more information, please visit www.avantus.com, and follow Avantus on Twitter and LinkedIn.
ABOUT ALLIANZ CAPITAL PARTNERS
Allianz Capital Partners is one of the Allianz Group's asset managers for alternative equity investments and part of Allianz Global Investors. Allianz Capital Partners manages over 56 billion euros in alternative assets for the Allianz Group and third-party investors*. Our investment focus is on private equity, infrastructure and renewable energy. Our investment strategy aims to generate attractive, long-term and stable returns for our clients. *Data as of June 30, 2022
MEDIA CONTACT
Avantus
Katie Struble
Director, Corporate Communications
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DALLAS--(BUSINESS WIRE)--Primoris Services Corporation (NASDAQ Global Select: PRIM) (“Primoris” or the “Company”) announced today that the Company’s management team will participate in two institutional investor conferences during the fourth quarter, the Baird 2022 Global Industrials Conference and the Sidoti December Virtual Small Cap Conference.
A copy of the Company’s most recent earnings release and investor presentation can be accessed from the “Investors” section “News and Events” of its website, www.prim.com.
ABOUT PRIMORIS
Primoris Services Corporation is a leading specialty contractor providing critical infrastructure services to the utility, energy/renewables and pipeline services markets throughout the United States and Canada. The Company supports a diversified base of blue-chip customers with engineering, procurement, construction and maintenance services. A focus on multi-year master service agreements and an expanded presence in higher-margin, higher-growth markets such as utility-scale solar facility installations, renewable fuels, power delivery systems and communications infrastructure have also increased the Company’s potential for long-term growth. Additional information on Primoris is available at www.prim.com.
For additional information, contact:
Blake Holcomb
Vice President, Investor Relations
214-545-6773
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HOUSTON--(BUSINESS WIRE)--Sunnova Energy International Inc. ("Sunnova") (NYSE: NOVA), a leading Energy as a Service (EaaS) provider, today announced that it will host an Analyst Day on Thursday, November 17, 2022 from 8:30 am to 12:30 pm CST in Houston, Texas, and the in-person portion will be open to invited research analysts and investors. During Analyst Day, observations may be made regarding the company's financial performance and outlook, as well as other forward looking matters.
The event will feature presentations from founder and Chief Executive Officer, John Berger, and other members of Sunnova’s executive leadership team, followed by a live Q&A. The event will highlight Sunnova’s leadership as an Energy as a Service company, current vision, strategy, growth initiatives and focus on future software solutions.
A live webcast of the event will be available on the Sunnova Investor Relations site. Registration and live webcast information is available at the Analyst Day registration page. A replay of the webcast will be available through the Analyst Day registration page within 24 hours after the event. In-person attendees will be able to ask questions live, and virtual participants may submit questions during the event through the webcast platform.
About Sunnova
Sunnova Energy International Inc. (NYSE: NOVA) is a leading Energy as a Service (EaaS) provider with customers across the U.S. and its territories. Sunnova's goal is to be the source of clean, affordable, and reliable energy with a simple mission: to power energy independence so that homeowners have the freedom to live life uninterrupted®. For more information, please visit sunnova.com.
Media
Matt Dallas
Media Relations
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917-363-1333
Investors & Analysts
Rodney McMahan
Vice President, Investor Relations
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281.971.3323
DALLAS--(BUSINESS WIRE)--Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, announced today that Scott Rowe, president and chief executive officer, will participate in a fireside chat at the 52nd Annual Baird Global Industrial Conference in Chicago, IL, on November 8, 2022 at 12:35 p.m. CST.
A webcast of Mr. Rowe’s discussion will be available for shareholders and other interested parties at www.flowserve.com under the “Investor Relations” section.
About Flowserve: Flowserve Corp. is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 55 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the company’s Web site at www.flowserve.com.
Safe Harbor Statement: This news release includes 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, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition. The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: the impact of the global outbreak of COVID-19 on our business and operations; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from our strategic transformation and realignment initiatives, our business could be adversely affected; risks associated with cost overruns on fixed-fee projects and in taking customer orders for large complex custom engineered products; the substantial dependence of our sales on the success of the oil and gas, chemical, power generation and water management industries; the adverse impact of volatile raw materials prices on our products and operating margins; economic, political and other risks associated with our international operations, including military actions, trade embargoes, epidemics or pandemics or changes to tariffs or trade agreements that could affect customer markets, particularly North African, Russian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Venezuela and Argentina; our furnishing of products and services to nuclear power plant facilities and other critical processes; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; expectations regarding acquisitions and the integration of acquired businesses; our relative geographical profitability and its impact on our utilization of deferred tax assets, including foreign tax credits; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the U.S., as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission.
All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.
Investor Contacts:
Jay Roueche, Vice President, Investor Relations & Treasurer (972) 443-6560
Mike Mullin, Director, Investor Relations (214) 697-8568
With the goal of reaching gigawatt scale by mid-decade, Aspen acquires Safari Energy from PPL Corporation
DALLAS & NEW YORK--(BUSINESS WIRE)--Aspen Power Partners LLC (“Aspen”), a distributed generation platform with the mission of accelerating decarbonization, today announced a $350 million investment from funds managed by global investment firm Carlyle (NASDAQ: CG). The investment supports Aspen’s organic and acquisition-driven growth strategy targeting the community, multifamily, and commercial & industrial (“C&I”) solar and storage markets. To launch this strategy, Aspen has acquired Safari Energy, LLC (“Safari”) from PPL Corporation (NYSE: PPL).
The acquisition of Safari represents one of the industry’s largest distributed solar C&I transactions to date. Founded in 2008, Safari has acquired or developed more than 600 C&I solar projects nationwide. Spanning 24 states and Washington, D.C., Safari’s projects have generated more than 893,000 megawatt-hours of electricity, or the equivalent of avoiding more than 632,000 metric tons of CO2 emissions. Aspen has acquired Safari’s complete development platform including its 220 MW portfolio of operating and under-construction distributed generation solar assets. With Carlyle’s investment and the close of the Safari acquisition, Aspen is on track to achieve gigawatt scale by mid-decade.
“At Carlyle, we believe investing in renewables includes investing across the value chain. This includes investing in not only large utility scale renewable energy assets, but also community solar and distributed generation more broadly,” said Pooja Goyal, Chief Investment Officer of Carlyle’s Infrastructure Group. “We are very excited about our partnership with Aspen and look forward to facilitating the growth of their business into a distributed generation platform of scale.”
“We are thrilled to support Aspen at this inflection point and believe the platform is well-positioned to benefit from the transformational shift we see in decarbonizing the economy,” said J.B. Oldenburg, Managing Director on the Renewable and Sustainable Energy team at Carlyle. “Our investment in Aspen is a commitment to accelerating the widespread accessibility and availability of solar and storage, which we believe is accretive to our portfolio by supporting this decade’s ambitious renewable energy and climate change targets.”
Combining Safari’s leading platform and assets with Aspen’s community solar portfolios and multifamily solar pipeline will create a diversified distributed generation independent power producer. Aspen will continue to support Safari’s solutions-oriented service model and expects to broaden the combined company’s flexibility to meet customers’ evolving needs within the traditionally underserved distributed generation market. The firm is positioned to provide innovative and flexible solutions to the rapidly growing solar and storage marketplace.
“During this critical climate decade, as demand for solar, storage, and electric vehicle charging continues to expand, the Carlyle investment and Safari transaction provide a clear path forward for our team to execute a step-change in the scale of our impact,” said Jackson Lehr, Aspen Co-Founder and CFO.
“We want to thank our existing investors Ultra Capital, Lombard Odier, Redball Ventures, and Two Seven Ventures for supporting our growth to date and welcome the Carlyle team as our partners for this next stage of growth,” said Jorge E. Vargas, Aspen Co-Founder and CEO. “We also welcome our newest teammates from Safari and look forward to all we can accomplish together in the months and years ahead.”
For more information about Aspen Power Partners, please visit aspenpower.com. For more information about Safari Energy, please visit safarienergy.com.
ABOUT ASPEN POWER PARTNERS
Aspen Power Partners (Aspen) is a comprehensive distributed generation platform with the dual mission of accelerating and democratizing decarbonization. The firm develops, constructs and operates community, multifamily, and C&I solar and storage installations enabling consumers and businesses of all income levels to access clean renewable energy. The Aspen team is made up of seasoned professionals across the development, construction, project finance and asset management industry. Aspen is headquartered in Dallas, TX with locations throughout the U.S. For more information, please visit aspenpower.com.
ABOUT CARLYLE
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $376 billion of assets under management as of June 30, 2022, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,900 people in 26 offices across five continents.
ABOUT SAFARI ENERGY
Safari Energy, LLC, an Aspen Power Partners subsidiary, is the solar partner of choice for commercial and industrial customers, real estate owners, public sector organizations and solar developers seeking competitive financial solutions for their projects. Headquartered in New York City, Safari Energy has helped clients unlock enormous economic value and drive significant energy savings by developing hundreds of solar energy projects from Massachusetts to Hawaii. With extensive interdisciplinary expertise, Safari supports the growth of distributed energy resources while focusing on advancing a sustainable energy future. For more information, please visit safarienergy.com
MEDIA CONTACTS
Carlyle
Brittany Berliner
212.813.4839
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Aspen Power Partners
Alex Autry
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Operational Performance Driven by Balanced Growth Across Geographies and Supported by Robust Activity in Key International and Offshore Markets
Achieved $62 million of Cost Synergies in First Year Post-Transaction Close, Exceeding Target by 13%
HOUSTON--(BUSINESS WIRE)--$XPRO #Expro--Expro Group Holdings N.V. (NYSE: XPRO) (the “Company” or “Expro”) today reported financial and operational results for the three and nine months ended September 30, 2022.
Third Quarter 2022 Highlights
1. A non-GAAP measure.
Michael Jardon, Chief Executive Officer, noted, “Expro’s strong operational performance across our businesses demonstrates that our balanced portfolio, well-established partnerships, and unique blend of expertise and technology, continue to deliver value to customers across the life of their wells. We continue to capitalize on new business opportunities in the third quarter, winning contracts and successfully entering new markets, based on the strength of our relationships and our reputation for delivering extraordinary performance.
“Our solid performance in the quarter reflects balanced growth across our geographies. We sustained the recently strong performance in NLA and also delivered strong performance in ESSA and MENA as our teams capitalized on accelerated activity and continued to expand relationships with key customers. Despite transitory margin pressure in APAC, we remain confident that Expro is well-positioned to capitalize on a growth cycle that should be multi-year in duration, global in scope, span all phases of oil and gas development, and include all operating environments. We are also expanding our partnerships beyond oil and gas and demonstrating that our tried-and-tested technologies and depth of expertise can be utilized in emerging new energy segments, such as geothermal, where we are already supporting sustainable energy solutions.
“As we outlined in our inaugural Environmental, Social and Governance report earlier this year, we are committed to addressing Expro’s and our industry’s effects on the planet, and this includes working with customers around the world to develop and implement the right solutions. Technology is a critical component of advancing sustainable energy solutions, and our team has made significant progress introducing innovative solutions to meet customers’ challenges. This includes advances in fully autonomous tubular running, a suite of digitally intelligent well construction solutions and integrated services in support of the geothermal market are key examples that focus on supporting customers’ lower carbon objectives.
“The end of the third quarter also marked the end of our first year since the Expro and Frank’s transaction closed, and I am pleased with how our employees around the world have come together to support each other and our customers as a combined company. We have made excellent progress on our synergy capture efforts as we delivered more than $60 million in cost savings, exceeding our first-year targets of $55 million in costs savings by more than 10%. Importantly, we have achieved our initial goal of driving overall support costs to 20% of consolidated revenue and we remain on track to deliver on our medium-term target of $70 million in cost savings and total synergies of $80 to $100 million in the first 24 to 36 months post close. We also expect to continue to capture new opportunities for margin expansion as we strengthen our global operating model and drive efficiencies through our organization.
“Looking ahead, we are well positioned in markets that benefit from strong industry fundamentals. Despite the uncertain broader macro-economic environment, we are experiencing an upswing in global activity driven by increasing demand, coupled with the industry’s growing recognition that sustained investments are needed to stabilize energy production over the long term. Given our strong presence in key international and offshore markets where activity is accelerating, and our leading portfolio of offshore solutions, Expro is poised to benefit from industry-wide tailwinds. In particular, we expect significant growth in our well construction business as offshore activity continues to ramp up in the fourth quarter and into 2023.
“As recognized global well experts and a trusted industry partner, Expro continues to compete and win on a worldwide basis. We remain on track to deliver run-rate quarterly revenue of $325 - $350 million in the fourth quarter with EBITDA margins of approximately 20%. In due course, improved profitability will drive strong cash flow generation as we capitalize on tailwinds in our industry and the strong demand for our innovative, sustainable solutions.”
Notable Awards and Achievements
One of the most important organizations that evaluates companies’ ESG programs upgraded Expro’s sustainability rating two full levels from below average to an A (above average). Expro achieved this outstanding milestone less than a year following the merger and the expansion of our company.
Expro won the Best Health, Safety, Environment/Sustainable Development Offshore award for its CENTRI-FI™ technology at the 2022 World Oil Awards in October. The CENTRI-FI™ Consolidated Control Console is one element of a suite of digitally intelligent well construction solutions that are intended to address today’s and tomorrow’s energy challenges. In particular, CENTRI-FI™ allows the tong makeup, elevator and slips function, and a single joint elevator to be precisely controlled and operated via wireless control tablet by a single operator.
Expro’s iTONG™ system, which advances fully autonomous tubular running, successfully completed field trials for an important customer in the North Sea, taking part in 22 jobs, resulting in more than 1,600 connections being made. This digital technology is designed to enhance operations and reduce personnel on the rig floor, resulting in improved safety and efficiency, with lower operational costs.
Expro was awarded Tubing Conveyed Perforating (“TCP”) work to support the energy transition on a 10-well campaign across three geothermal projects in the Netherlands. This campaign will provide geothermal district heat to the community and marks the first such TCP project in the country. Expro delivered an excellent technical solution to the client, underlining the Expro team’s expertise, experience, and tried-and-tested technologies in support of the geothermal market.
Expro has also been awarded a geothermal contract in Indonesia for a 12-well, 24-month contract for pipe recovery in a hostile environment. This was a significant new business win for the Indonesia team and based on the Expro team’s excellent service quality. These wins, combined with the strengthening of the Company’s Portfolio Advancement leadership team, positions Expro well to capitalize on new geothermal market opportunities.
Expro has successfully completed an 18-well plug and abandonment operation in Australia, building on the Company’s established subsea well access experience and track record, to assist its customer in solving unique abandonment challenges. Expro’s industry-leading subsea well access technology provides clients with a safe and environmentally secure operating system for the commissioning and decommissioning of subsea wells.
Expro’s ability to meet client’s exacting needs for mercury removal led to the award of a significant contract in North Africa. The client approached Expro to design a mercury removal system to tackle a higher-than-expected concentration of mercury. Expro’s solution was an ideal technical fit to tackle the challenges, and our fast mobilization time was key to securing this three-year award.
Finally, a major International Oil Company (IOC) recently awarded Expro a contract to construct, operate and maintain a fast-track, onshore facility in West Africa in order to increase its liquified natural gas (LNG) production from the area. Upon completion, the facility will facilitate incremental gas production (and feedstock for low-carbon electricity generation) targeting the continental Europe market that is increasingly focused on security of supply and energy security issues. The contract has potential to generate in excess of $300 million in revenue over a contract term of up to 10 years.
Segment Results
Unless otherwise noted, the following discussion compares the quarterly results for the third quarter of 2022 to the results for the second quarter of 2022.
North and Latin America (NLA)
NLA revenue totaled $135 million for the three months ended September 30, 2022, an increase of $5 million, or 4%, compared to $130 million for the three months ended June 30, 2022. The increase was primarily due to higher well construction product sales and services revenue in the U.S. and Mexico, and higher well flow management services revenue in Canada, partially offset by lower well flow management revenue in the U.S. and lower well construction revenue in Guyana.
NLA Segment EBITDA was $40 million, or 30% of segment revenue, during the three months ended September 30, 2022, compared to $39 million, or 30% of segment revenue, during the three months ended June 30, 2022. The increase of $1 million was attributable to higher activity during the three months ended September 30, 2022.
Europe and Sub-Saharan Africa (ESSA)
ESSA revenue totaled $100 million for the three months ended September 30, 2022 compared to $90 million for the prior quarter, an increase of $10 million. The sequential increase of 11% was primarily driven by higher subsea well access revenue in Azerbaijan and Angola and higher well flow management revenue in the United Kingdom and Nigeria due to increased customer activities. The increase in revenues was partially offset by lower subsea well access revenue in the United Kingdom.
ESSA Segment EBITDA during the three months ended September 30, 2022 was $18 million, or 18% of segment revenue, compared to $15 million, or 17% of segment revenue, in the prior quarter. The increase of $3 million was primarily attributable to higher activity levels and a more favorable activity mix during the three months ended September 30, 2022.
Middle East and North Africa (MENA)
MENA revenue totaled $50 million for the three months ended September 30, 2022 compared to $45 million for the three months ended June 30, 2022. The sequential increase in revenue of $5 million, or 11%, was primarily driven by higher well flow management revenue in Saudi Arabia and Algeria.
MENA Segment EBITDA for the three months ended September 30, 2022 was $15 million, or 29% of segment revenue, compared to $14 million, or 30% of segment revenue, in the prior quarter. The increase in Segment EBITDA was primarily due to higher activity during the three months ended September 30, 2022.
Asia Pacific (APAC)
APAC revenue for the three months ended September 30, 2022 totaled $50 million compared to $48 million in the prior quarter, an increase of $2 million. The 4% increase in revenue was primarily due to higher subsea well access revenue in Australia, China and Indonesia and higher well construction revenue in Japan. The increase in revenue was partially offset by lower equipment sales related to well flow management services in Malaysia.
APAC Segment EBITDA for the three months ended September 30, 2022 totaled $(9) million, or (17)% of segment revenue, compared to $4 million, or 9% of segment revenue, in the prior quarter. The reduction in Segment EBITDA despite the increase in revenues was primarily due to higher start-up and commissioning costs on a large subsea project that were incurred during the quarter as well as lower activity on higher margin contracts. Excluding $17 million and $4 million, respectively, of the above-mentioned start-up and commissioning costs during the three months ended September 30, 2022, and June 30, 2022, Segment EBITDA was $8 million and $8 million, respectively, and Segment EBITDA margin was 16% and 17%, respectively.
Other Financial Information
On March 10, 2021, Frank’s International N.V. (“Frank’s”) and New Eagle Holdings Limited, an exempted company limited by shares incorporated under the laws of the Cayman Islands and a direct wholly owned subsidiary of Frank’s (“Merger Sub”), entered into an Agreement and Plan of Merger with Expro Group Holdings International Limited (“Legacy Expro”), an exempted company limited by shares incorporated under the laws of the Cayman Islands, providing for the merger of Legacy Expro with and into Merger Sub in an all-stock transaction, with Merger Sub surviving the merger as a direct, wholly owned subsidiary of Frank’s (the “Merger”). The Merger closed on October 1, 2021, and Frank's was renamed to Expro Group Holdings N.V.
The Company’s capital expenditures totaled $19 million in the third quarter of 2022. Expro plans for capital expenditures in the range of approximately $30 million to $40 million for the fourth quarter of 2022.
As of September 30, 2022, Expro’s consolidated cash and cash equivalents, including restricted cash, totaled $157 million. The Company had no outstanding debt as of September 30, 2022 and has no outstanding debt today. The Company’s total liquidity as of September 30, 2022 was $287 million. Total liquidity includes $130 million available for drawdowns as loans under the Company’s revolving credit facility entered into in connection with the Merger.
Expro established a non-cash reserve of $8 million in the third quarter related to its ongoing discussions with the U.S. Securities and Exchange Commission (“SEC”) regarding actions of certain legacy Frank’s subsidiaries that included possible legacy violations of the U.S. Foreign Corrupt Practices Act that occurred prior to the Expro-Frank’s merger in 2021. There can be no assurance as to the timing or the terms of any final resolution, or that a settlement will be reached.
Expro’s provision for income taxes for the third quarter of 2022 was $15 million compared to $10 million in the prior quarter. The sequential change in income taxes was primarily due to changes in the mix of taxable profits between jurisdictions, in particular increased taxable profits in Latin America and Sub-Saharan Africa, and an increase in withholding taxes in various jurisdictions. The Company’s effective tax rate on a U.S. generally accepted accounting principles (“GAAP”) basis for the three and nine months ended September 30, 2022 also reflects liability for taxes in certain jurisdictions that tax on an other than pre-tax profits basis, including so-called “deemed profits” regimes.
The financial measures provided that are not presented in accordance with GAAP are defined and reconciled to their most directly comparable GAAP measures. Please see “Use of Non-GAAP Financial Measures” and the reconciliations to the nearest comparable GAAP measures.
Additionally, downloadable financials are available on the Investor section of www.expro.com.
Conference Call
The Company will host a conference call to discuss third quarter 2022 results on Thursday, November 3, 2022, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).
Participants may also join the conference call by dialing:
U.S.: +1 (844) 200-6205
International: +1 (929) 526-1599
Access ID: 181589
To listen via live webcast, please visit the Investor section of www.expro.com.
The third quarter 2022 Investor Presentation is available on the Investor section of www.expro.com.
An audio replay of the webcast will be available on the Investor section of the Company’s website approximately three hours after the conclusion of the call and will remain available for a period of approximately 12 months.
To access the audio replay telephonically:
Dial-In: U.S. +1 (929) 458-6194 or +44 (204) 525-0658
Access ID: 382360
Start Date: November 3, 2022, 1:00 p.m. CT
End Date: November 10, 2022, 11:00 p.m. CT
A transcript of the conference call will be posted to the Investor relations section of the Company’s website as soon as practicable after the conclusion of the call.
ABOUT EXPRO
Working for clients across the entire well life cycle, Expro is a leading provider of energy services, offering cost-effective, innovative solutions and what the Company believes to be best-in-class safety and service quality. The Company’s extensive portfolio of capabilities spans well construction, well flow management, subsea well access, and well intervention and integrity solutions.
With roots dating to 1938, Expro has approximately 7,200 employees and provides services and solutions to leading energy companies in both onshore and offshore environments in approximately 60 countries.
For more information, please visit: www.expro.com and connect with Expro on Twitter @ExproGroup and LinkedIn @Expro.
Forward-Looking Statements
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. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this release include statements, estimates and projections regarding the Company’s future business strategy and prospects for growth, cash flows and liquidity, financial strategy, budget, projections, operating results and environmental, social and governance goals, targets and initiatives. These statements are based on certain assumptions made by the Company based on management’s experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of performance. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Such assumptions, risks and uncertainties include the outcome and results of the integration process associated with the Merger, the amount, nature and timing of capital expenditures, the availability and terms of capital, the level of activity in the oil and gas industry, volatility of oil and gas prices, unique risks associated with offshore operations, political, economic and regulatory uncertainties in international operations, the ability to develop new technologies and products, the ability to protect intellectual property rights, the ability to employ and retain skilled and qualified workers, the level of competition in the Company’s industry, global or national health concerns, including health epidemics, such as COVID-19 and any variants thereof, the possibility of a swift and material decline in global crude oil demand and crude oil prices for an uncertain period of time, future actions of foreign oil producers such as Saudi Arabia and Russia, the timing, pace and extent of an economic recovery in the United States and elsewhere, inflationary pressures, the impact of current and future laws, rulings, governmental regulations, accounting standards and statements, and related interpretations, and other guidance.
Such assumptions, risks and uncertainties also include the factors discussed or referenced in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC, as well as other risks and uncertainties set forth from time to time in the reports the Company files with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, historical practice or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.
Use of Non-GAAP Financial Measures
This press release and the accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA margin, contribution, contribution margin, support costs, adjusted cash flow from operations, cash conversion, adjusted net income (loss), and adjusted net income (loss) per diluted share, which may be used periodically by management when discussing financial results with investors and analysts. The accompanying schedules of this press release provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measure calculated and presented in accordance with GAAP. These non-GAAP financial measures are presented because management believes these metrics provide additional information relative to the performance of the business.
Karen David-Green - Chief Communications, Stakeholder & Sustainability Officer
+1 281 994 1056
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Initiatives Include a $50,000 Donation to Folds of Honor, a Nationwide Round Up Campaign for the Special Operators Transition Foundation and Free Meals on Veterans Day
WESTLAKE, Ohio--(BUSINESS WIRE)--TravelCenters of America Inc. (Nasdaq: TA) today announced initiatives throughout November to honor all those who have served our country.
TA is teaming up with Mobil Delvac™ to donate $50,000 to Folds of Honor, an organization providing educational scholarships for children and spouses of fallen or disabled American military service members and first responders. This is the sixth year in a row that TA and Mobil Delvac have come together to support Folds of Honor and pay tribute to fallen or disabled American military service members and first responders. To date, the companies together have donated a total of $300,000 to the organization.
Additionally, TA is launching a Round Up campaign to support the Special Operators Transition Foundation (SOTF), an organization dedicated to assisting Special Operations Forces veterans with the successful transition from military service into their next career. From Nov. 1 to November 30, 2022, guests at participating TA, Petro and TA Express locations will have the opportunity to round up their purchase to the nearest dollar, with the difference being donated directly to SOTF.
“We are grateful to have the TravelCenters of America team so passionate about helping those who have served our country,” said Tommy Stoner, Chief Executive Officer of SOTF. “Because of the efforts of TA and Petro team members nationwide, we will be able to meet our goal of helping over 200 Special Operations veterans make the transition from their military career to the next chapter of their life. This support not only affects these very deserving veterans, but it also deeply impacts their families and the communities that they join.”
In addition to collaborating with SOTF to recruit and hire veterans, TA works with RecruitMilitary and the Transition Assistance Program (TAP) to help connect with veterans looking to enter corporate careers after serving our country. TA regularly hosts events at military bases to showcase the job opportunities available at the company. TA is also a proud supporter of Wreaths Across America, an organization committed to placing wreaths on the graves of all veterans in national cemeteries across the country.
TA will also continue its tradition of inviting all active-duty military, veterans and reservists to enjoy a complimentary meal on Veterans Day at company-owned quick-service and full-service restaurants nationwide.
“As a proud American company, we are honored to support those who have dedicated their lives for the freedom of others,” said Jon Pertchik, Chief Executive Officer of TravelCenters of America. “Thank you to all who have served, including our many team members and the thousands of veterans who are now professional drivers and continue to dedicate their lives to keep our country strong.”
About TravelCenters of America
TravelCenters of America Inc. (Nasdaq: TA) is the nation's largest publicly traded full-service travel center network. Founded in 1972 and headquartered in Westlake, Ohio, its 19,000 team members serve guests in 280 locations in 44 states, principally under the TA®, Petro Stopping Centers® and TA Express® brands. Offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, travel stores, car and truck parking and other services dedicated to providing great experiences for its guests. TA is committed to sustainability, with its specialized business unit, eTA, focused on sustainable energy options for professional drivers and motorists, and leverages alternative energy to support its own operations. TA operates over 600 full-service and quick-service restaurants and nine proprietary brands, including Iron Skillet® and Country Pride®. For more information, visit www.ta-petro.com.
Tina Arundel
TravelCenters of America
440-250-4758
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HOUSTON--(BUSINESS WIRE)--Voyager Interests (“Voyager”), a private equity firm specializing in the energy services and equipment sector, today announced its acquisition of Knight Energy Services (“Knight” or the “Company”) from Clearlake Capital Group, L.P. (together with its affiliates, “Clearlake”). Knight, headquartered in Houston, Texas, is one of the largest rental tool companies serving the U.S. oil and gas industry. The Company provides a complete range of rental products for drilling, completion, production and decommissioning applications, including drill pipe, tubing, tubular handling equipment, pressure control equipment and drilling jars. Financial terms of the transaction were not disclosed.
“I am thrilled to partner with Voyager to continue building Knight into the preeminent rental tool company in North America. We have the people, the fleet, the footprint and the capabilities to do just that. In partnering with Voyager, we will continue to build Knight organically and through acquisitions and my team could not be more excited,” said Dwight Gross, Chief Executive Officer and President of Knight. “We thank Clearlake for their partnership and support as we conclude this chapter and look forward to our next phase of growth.”
“Knight has been a recognized industry name for more than 50 years, and I have admired the Company and its reputation my entire career. We look forward to contributing however we can to Knight’s growth and success,” stated David Watson, Managing Partner of Voyager.
“We have greatly enjoyed working with Dwight and the entire Knight Energy management team, and would like to thank all of the Company’s employees, customers, and stakeholders for their partnership over the past years. We wish the Company continued success as they embark on this next chapter,” said José E. Feliciano, Co-Founder and Managing Partner of Clearlake.
ABOUT KNIGHT
Headquartered in Houston, Texas and with 17 locations across the U.S., Knight specializes in serving the upstream oil and gas industry by providing a complete range of rental products for drilling, completion, production and decommissioning applications, including drill pipe, tubing, tubular handling equipment, pressure control equipment and drilling jars. Learn more online at www.ke.services.
ABOUT VOYAGER
Voyager Interests, based in Houston, Texas, is a specialized private equity firm that is committed to investment in middle market energy services and equipment companies. With three platform oilfield service investments (four including add-ons) acquired in the past 15 months, we believe Voyager is the most active private equity firm in the sector today. The firm is actively seeking new platform investments with enterprise values up to $100 million, and also plans to invest in add-on acquisitions for existing portfolio companies. Voyager’s limited partner base is comprised primarily of Texas family offices and experienced energy entrepreneurs, which provide significant flexibility in the firm’s investments. Learn more online at www.voyagerinterests.com.
ABOUT CLEARLAKE
Founded in 2006, Clearlake Capital Group, L.P. is an investment firm operating integrated businesses across private equity, credit and other related strategies. With a sector-focused approach, the firm seeks to partner with experienced management teams by providing patient, long term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.® The firm’s core target sectors are industrials, technology, and consumer. Clearlake currently has over $70 billion of assets under management, and its senior investment principals have led or co-led over 400 investments. The firm is headquartered in Santa Monica, CA with affiliates in Dallas, TX, London, UK and Dublin, Ireland.
For Knight:
Dwight Gross
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(713) 408-2977
For Voyager:
McCray Fletcher
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(713) 357-9703
For Clearlake:
Jennifer Hurson
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(845) 507-0571
DUBLIN--(BUSINESS WIRE)--The "Global eFuel Market Research and Forecast, 2022-2028" report has been added to ResearchAndMarkets.com's offering.
The global E-Fuel Market is anticipated to grow at a CAGR of around 22.8% during the forecast period. E-fuels are in the form of synthetic fuels that are generally produced by storing electrical energy from renewable sources.
Companies Mentioned
These are produced in the form of liquid or gaseous state and are created with the support of CO2, electricity, renewable energy, and water. The production of E-fuel does not need any large space and does not pollute the environment.
The factors attributing to the growth of the market include the growth of the automobile sector due to increasing urbanization and industrialization. According to National Investment Promotion and Facilitation Agency, India is forecasted to be the third-largest passenger vehicle market by 2021 globally. The sales of the passenger vehicle market in 2018-19 increased by 2.70%. Additionally in 2019, the automobile exports also grew by 14.50%.
However, higher investment for resource, development, transportation, storage, and extractions is one of the major challenge faced by the market such as installing pipelines for transportation of hydrogen requires digging and machinery cost and setup. Additionally, lack of awareness among people about the e-fuels is further projected to hamper the growth of the market. However, many private companies are moving towards development such as Audi, Hyundai is developing vehicles that are powered by e-fuels including hydrogen, gasoline, ethane, and others is bringing upon an opportunity for the growing market.
Global E-Fuel Market Size
Asia-Pacific is projected to have considerable growth in the global e-fuel market
Asia-Pacific is projected to have lucrative market growth in the global e-fuel market during the forecast period. The growth is attributed to increasing hydrogen-powered electric vehicles in countries including Japan and China. The well-established e-fuel infrastructure in Japan is creating opportunities for the growth of the market in the region.
In-country such as China the demand is increasing for alternative green energy fuels and increased production of biofuels can also be seen in the region. South Korea is also a key economy for the growing demand for e-fuel where the government is planning to install around 500 hydrogen fueling stations by 2030.
The Report Covers
Key Topics Covered:
1. Report Summary
2. Market Overview and Insights
2.1. Scope of the Report
2.2. Analyst Insight & Current Market Trends
2.2.1. Key Findings
2.2.2. Recommendations
2.2.3. Conclusion
2.3. Regulations
3. Competitive Landscape
3.1. Key Company Analysis
3.1.1. Overview
3.1.2. Financial Analysis
3.1.3. SWOT Analysis
3.1.4. Recent Developments
3.2. Key Strategy Analysis
4. Market Determinants
4.1. Motivators
4.2. Restraints
4.3. Opportunities
5. Market Segmentation
5.1. Global eFuel market By Fuel Type
5.1.1. E-Diesel
5.1.2. E/Synthetic Gasoline
5.1.3. Synthetic Ethanol
5.1.4. Hydrogen
6. Regional Analysis
6.1. North America
6.1.1. United States
6.1.2. Canada
6.2. Europe
6.2.1. UK
6.2.2. Germany
6.2.3. Italy
6.2.4. Spain
6.2.5. France
6.2.6. Rest of Europe
6.3. Asia-Pacific
6.3.1. China
6.3.2. India
6.3.3. Japan
6.3.4. Rest of Asia-Pacific
6.4. Rest of the World
7. Company Profiles
For more information about this report visit https://www.researchandmarkets.com/r/pw20yv
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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HOUSTON--(BUSINESS WIRE)--ConocoPhillips (NYSE: COP) today reported third-quarter 2022 earnings of $4.5 billion, or $3.55 per share, compared with third-quarter 2021 earnings of $2.4 billion, or $1.78 per share. Excluding special items, third-quarter 2022 adjusted earnings were $4.6 billion, or $3.60 per share, compared with third-quarter 2021 adjusted earnings of $2.4 billion, or $1.77 per share. Special items for the current quarter were primarily driven by a loss on asset sales.
“We continue to deliver competitive returns, meet global energy needs and reduce our emissions consistent with our Triple Mandate. ConocoPhillips distributed $4.3 billion to our shareholders in the third quarter and announced an increase to our ordinary dividend effective in the fourth quarter. Our Lower 48 business unit accomplished record production of more than 1 million barrels of oil equivalent per day. We expanded our global LNG portfolio with opportunities in QatarEnergy’s North Field South LNG project and have agreed to capacity at the prospective German LNG Terminal, enhancing our focus on this valuable energy transition fuel,” said Ryan Lance, chairman and chief executive officer. “By concentrating on low cost-of-supply and low greenhouse gas production, ConocoPhillips is well positioned to compete in near-term cycles and over the long term.”
Third-Quarter Highlights and Recent Announcements
In addition, ConocoPhillips today announced that Jack Harper, executive vice president, Lower 48, has elected to leave the company due to family medical reasons. In conjunction with this announcement, Nick Olds, currently executive vice president, Global Operations, has become executive vice president, Lower 48, and Andy O’Brien, currently vice president and treasurer, has become senior vice president, Global Operations, and joined the Executive Leadership Team, effective Nov. 1, 2022.
“I want to thank Jack for his leadership, knowledge and experience that have helped drive efficiency and disciplined growth across our substantial Lower 48 organization,” said Lance. “As a highly valued member of our company’s Executive Leadership Team, Jack played an instrumental role in ensuring the integration of our Permian assets. I wish Jack the very best and look forward to Nick and Andy’s ongoing leadership as they assume their new roles.”
Quarterly Dividend, Variable Return of Cash and Share Repurchase Authorization Increase
ConocoPhillips announced a quarterly ordinary dividend of 51 cents per share, payable Dec. 1, 2022, to stockholders of record at the close of business on Nov. 15, 2022. In addition, the company announced a VROC of 70 cents per share, payable Jan. 13, 2023, to stockholders of record at the close of business on Dec. 27, 2022.
The company also announced the Board of Directors approved a $20 billion increase in the existing share repurchase program to $45 billion, consistent with the company’s plan for future share repurchases. Since program inception in late 2016, the company has repurchased $20.7 billion in shares.
Third-Quarter Review
Production for the third quarter of 2022 was 1,754 thousand barrels of oil equivalent per day (MBOED), an increase of 210 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions and the conversion of previously acquired Concho-contracted volumes from a two-stream to a three-stream basis, third-quarter 2022 production increased by 30 MBOED or 2% from the same period a year ago. Organic growth from Lower 48 and other development programs more than offset decline and downtime.
Lower 48 delivered record production of 1,013 MBOED, including 668 MBOED from the Permian, 224 MBOED from the Eagle Ford and 96 MBOED from the Bakken. In Canada, drilling and completion activities continued at Montney, while construction progressed on the second phase of the company’s processing facility. In Norway, the company completed planned subsea template installation scope on the Tommeliten A and Eldfisk North projects with drilling on track to begin in the fourth quarter. In Malaysia, first oil was achieved at Gumusut Phase 3. Turnarounds were successfully completed across the portfolio.
Earnings and adjusted earnings increased from third-quarter 2021 primarily due to higher realized prices. The company’s total average realized price was $83.07 per barrel of oil equivalent (BOE), 46% higher than the $56.92 per BOE realized in the third quarter of 2021, as production remains unhedged and thus realizes the full impact of changes in marker prices.
For the quarter, cash provided by operating activities was $8.7 billion. Excluding a $1.5 billion change in operating working capital, ConocoPhillips generated CFO of $7.2 billion. Dispositions generated $0.4 billion from the sale of Lower 48 noncore assets and contingent payments received. The company funded $2.5 billion of capital expenditures and investments including approximately $0.3 billion for Lower 48 bolt-on acquisitions. The company also distributed $1.5 billion in ordinary dividends and VROC and repurchased $2.8 billion of shares.
Nine-Month Review
ConocoPhillips’ nine-month 2022 earnings were $15.4 billion, or $11.93 per share, compared with nine-month 2021 earnings of $5.5 billion, or $4.09 per share. Nine-month 2022 adjusted earnings were $14.0 billion, or $10.79 per share, compared with nine-month 2021 adjusted earnings of $5.0 billion, or $3.75 per share.
Production for the first nine months of 2022 was 1,731 MBOED, an increase of 178 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, the conversion of previously acquired Concho-contracted volumes from a two-stream to a three-stream basis, and 2021 Winter Storm Uri impacts, production decreased 23 MBOED or 1% from the same period a year ago. Organic growth from Lower 48 and other development programs more than offset decline; however, production was lower overall primarily due to planned and unplanned downtime.
The company’s total realized price during this period was $82.82 per BOE, 63% higher than the $50.92 per BOE realized in the first nine months of 2021, reflecting higher marker prices.
In the first nine months of 2022, cash provided by operating activities was $21.7 billion. Excluding a $0.4 billion change in operating working capital, ConocoPhillips generated CFO of $22.1 billion. Dispositions generated $3.4 billion, including $1.4 billion from sale of Cenovus Energy (CVE) shares, with the proceeds from CVE sales applied to share repurchases. The company funded $7.6 billion of capital expenditures and investments, comprised of $5.9 billion in operating capital and $1.7 billion to acquire an additional 10% interest in Australia Pacific LNG and Lower 48 bolt-on acquisitions. In addition, the company paid $3.3 billion in ordinary dividends and VROC, repurchased $6.5 billion of shares and paid $3.0 billion to reduce total debt.
Outlook
Fourth-quarter 2022 production is expected to be 1.74 to 1.80 million barrels of oil equivalent per day (MMBOED). The company’s full-year expected production remains unchanged at 1.74 MMBOED.
The company updated its 2022 operating capital guidance to $8.1 billion versus the prior guidance of $7.8 billion, reflecting inflationary impacts and partner-operated well mix in the Lower 48. This guidance excludes $1.7 billion of capital associated with the closed acquisitions of an additional 10% interest in APLNG and bolt-on acquisitions in the Lower 48.
Full-year guidance for adjusted operating cost is $7.7 billion versus the prior guidance of $7.5 billion, reflecting inflationary impacts in the Lower 48. Full-year guidance for depreciation, depletion and amortization has decreased from $7.6 billion to $7.5 billion. Full-year guidance for adjusted corporate segment net loss remains at $0.9 billion.
ConocoPhillips will host a conference call today at 12:00 p.m. Eastern Time to discuss this announcement. To listen to the call and view related presentation materials and supplemental information, go to www.conocophillips.com/investor.
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About ConocoPhillips
ConocoPhillips is one of the world’s leading exploration and production companies based on both production and reserves, with a globally diversified asset portfolio. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 13 countries, $95 billion of total assets and approximately 9,400 employees at September 30, 2022. Production averaged 1,731 MBOED for the nine months ended September 30, 2022, and proved reserves were 6.1 BBOE as of Dec. 31, 2021. For more information, go to www.conocophillips.com.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events, plans and anticipated results of operations, business strategies, and other aspects of our operations or operating results. Words and phrases such as “anticipate," “estimate,” “believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict," “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include the impact of public health crises, including pandemics (such as COVID-19) and epidemics and any related company or government policies or actions; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes resulting from any ongoing military conflict, including the conflict between Russia and Ukraine and the global response to it, or from a public health crisis or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries and the resulting company or third-party actions in response to such changes; changes in commodity prices, including a prolonged decline in these prices relative to historical or future expected levels; insufficient liquidity or other factors, such as those listed herein, that could impact our ability to repurchase shares and declare and pay dividends such that we suspend our share repurchase program and reduce, suspend, or totally eliminate dividend payments in the future, whether variable or fixed; changes in expected levels of oil and gas reserves or production; potential failures or delays in achieving expected reserve or production levels from existing and future oil and gas developments, including due to operating hazards, drilling risks or unsuccessful exploratory activities; unexpected cost increases, inflationary pressures or technical difficulties in constructing, maintaining or modifying company facilities; legislative and regulatory initiatives addressing global climate change or other environmental concerns; investment in and development of competing or alternative energy sources; disruptions or interruptions impacting the transportation for our oil and gas production; international monetary conditions and exchange rate fluctuations; changes in international trade relationships, including the imposition of trade restrictions or tariffs on any materials or products (such as aluminum and steel) used in the operation of our business, including any sanctions imposed as a result of any ongoing military conflict, including the conflict between Russia and Ukraine; our ability to collect payments when due under our settlement agreement with PDVSA; our ability to collect payments from the government of Venezuela as ordered by the ICSID; our ability to complete any announced or any future dispositions or acquisitions on time, if at all; the possibility that regulatory approvals for any announced or any future dispositions or acquisitions will not be received on a timely basis, if at all, or that such approvals may require modification to the terms of the transactions or our remaining business; business disruptions following the acquisition of assets from Shell (the “Shell Acquisition”) or any other announced or any future dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced or any future dispositions in the manner and timeframe we anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation, including litigation related directly or indirectly to our transaction with Concho Resources Inc.; the impact of competition and consolidation in the oil and gas industry; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions or developments, including as a result of any ongoing military conflict, including the conflict between Russia and Ukraine; the ability to successfully integrate the assets from the Shell Acquisition or achieve the anticipated benefits from the transaction; unanticipated difficulties or expenditures relating to the Shell Acquisition; changes in fiscal regime or tax, environmental and other laws applicable to our business; and disruptions resulting from accidents, extraordinary weather events, civil unrest, political events, war, terrorism, cyber attacks or information technology failures, constraints or disruptions; and other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We may use the term “resource” in this news release that the SEC’s guidelines prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures in our Form 10-K and other reports and filings with the SEC. Copies are available from the SEC and from the ConocoPhillips website.
Use of Non-GAAP Financial Information – To supplement the presentation of the company’s financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), this news release and the accompanying supplemental financial information contain certain financial measures that are not prepared in accordance with GAAP, including adjusted earnings (calculated on a consolidated and on a segment-level basis), adjusted earnings per share, cash from operations (CFO), adjusted operating costs and adjusted corporate segment net loss.
The company believes that the non-GAAP measures adjusted earnings (both on an aggregate and a per-share basis), adjusted operating costs and adjusted corporate segment net loss are useful to investors to help facilitate comparisons of the company’s operating performance associated with the company’s core business operations across periods on a consistent basis and with the performance and cost structures of peer companies by excluding items that do not directly relate to the company’s core business operations. Adjusted operating costs is defined as the sum of production and operating expenses, selling, general and administrative expenses, exploration general and administrative expenses, geological and geophysical, lease rentals and other exploration expenses, adjusted to exclude expenses that do not directly relate to the company’s core business operations and are included as adjustments to arrive at adjusted earnings to the extent those adjustments impact operating costs. Adjusted corporate segment net loss is defined as corporate and other segment earnings adjusted for special items. The company further believes that the non-GAAP measure CFO is useful to investors to help understand changes in cash provided by operating activities excluding the timing effects associated with operating working capital changes across periods on a consistent basis and with the performance of peer companies. The company believes that the above-mentioned non-GAAP measures, when viewed in combination with the company’s results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the company’s business and performance. The company’s Board of Directors and management also use these non-GAAP measures to analyze the company’s operating performance across periods when overseeing and managing the company’s business.
Each of the non-GAAP measures included in this news release and the accompanying supplemental financial information has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the company’s presentation of non-GAAP measures in this news release and the accompanying supplemental financial information may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. The company may also change the calculation of any of the non-GAAP measures included in this news release and the accompanying supplemental financial information from time to time in light of its then existing operations to include other adjustments that may impact its operations.
Reconciliations of each non-GAAP measure presented in this news release to the most directly comparable financial measure calculated in accordance with GAAP are included in the release.
Other Terms – This news release also contains the term pro forma underlying production. Pro forma underlying production reflects the impact of closed acquisitions and closed dispositions as of September 30, 2022. The impact of closed dispositions assume they closed January 1, 2021, while the 2021 impact of the closed Shell Permian acquisition and the additional 10% APLNG interest acquisition assume they closed January 1, 2021 and February 1, 2021, respectively. Impacts for 2021 and 2022 also include a closed Lower 48 bolt-on acquisition assuming a close date of January 1, 2021. The company believes that underlying production is useful to investors to compare production reflecting the impact of closed acquisitions and dispositions on a consistent go-forward basis across periods and with peer companies. Return of capital is defined as the total of the ordinary dividend, share repurchases and variable return of cash (VROC).
References in the release to earnings refer to net income.
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3Q22 |
|
3Q21 |
|
2022 YTD |
|
2021 YTD |
||||||||||||||||||||||||||||||||
Pre-tax |
Income tax |
After-tax |
Per share of common stock (dollars) |
|
Pre-tax |
Income tax |
After-tax |
Per share of common stock (dollars) |
|
Pre-tax |
Income tax |
After-tax |
Per share of common stock (dollars) |
|
Pre-tax |
Income tax |
After-tax |
Per share of common stock (dollars) |
||||||||||||||||||||
| Earnings | $ |
4,527 |
3.55 |
2,379 |
|
1.78 |
|
15,431 |
|
11.93 |
|
5,452 |
|
4.09 |
|
|||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||||
| (Gain) loss on asset sales | 70 |
|
(16 |
) |
|
54 |
0.04 |
47 |
|
(19 |
) |
28 |
|
0.02 |
|
(947 |
) |
94 |
|
(853 |
) |
(0.66 |
) |
(221 |
) |
3 |
|
(218 |
) |
(0.16 |
) |
|||||||
| Pending claims and settlements | (20 |
) |
29 |
|
|
9 |
0.01 |
- |
|
- |
|
- |
|
- |
|
(20 |
) |
29 |
|
9 |
|
0.01 |
|
48 |
|
(10 |
) |
38 |
|
0.03 |
|
|||||||
| Pension settlement expense | - |
|
- |
|
|
- |
- |
28 |
|
(5 |
) |
23 |
|
0.02 |
|
- |
|
- |
|
- |
|
- |
|
70 |
|
(14 |
) |
56 |
|
0.04 |
|
|||||||
| Transaction and restructuring expenses | - |
|
- |
|
|
- |
- |
52 |
|
(25 |
) |
27 |
|
0.02 |
|
28 |
|
(8 |
) |
20 |
|
0.02 |
|
366 |
|
(78 |
) |
288 |
|
0.22 |
|
|||||||
| Impairments | - |
|
- |
|
|
- |
- |
(89 |
) |
21 |
|
(68 |
) |
(0.06 |
) |
- |
|
- |
|
- |
|
- |
|
(89 |
) |
21 |
|
(68 |
) |
(0.05 |
) |
|||||||
| (Gain) loss on CVE shares | - |
|
- |
|
|
- |
- |
(17 |
) |
- |
|
(17 |
) |
(0.01 |
) |
(251 |
) |
- |
|
(251 |
) |
(0.20 |
) |
(743 |
) |
- |
|
(743 |
) |
(0.57 |
) |
|||||||
| (Gain) loss on FX derivative | - |
|
- |
|
|
- |
- |
- |
|
- |
|
- |
|
- |
|
10 |
|
(2 |
) |
8 |
|
0.01 |
|
12 |
|
(3 |
) |
9 |
|
0.01 |
|
|||||||
| Net loss on accelerated settlement of Concho hedging program | - |
|
- |
|
|
- |
- |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
132 |
|
(31 |
) |
101 |
|
0.08 |
|
|||||||
| (Gain) loss on debt extinguishment and exchange fees | - |
|
- |
|
|
- |
- |
- |
|
- |
|
- |
|
- |
|
(44 |
) |
52 |
|
8 |
|
0.01 |
|
- |
|
- |
|
- |
|
- |
|
|||||||
| Tax adjustments | - |
|
- |
|
|
- |
- |
- |
|
- |
|
- |
|
- |
|
- |
|
(407 |
) |
(407 |
) |
(0.33 |
) |
- |
|
75 |
|
75 |
|
0.06 |
|
|||||||
| Adjusted earnings / (loss) | $ |
4,590 |
3.60 |
2,372 |
|
1.77 |
|
13,965 |
|
10.79 |
|
4,990 |
|
3.75 |
|
|||||||||||||||||||||||
| The income tax effects of the special items are primarily calculated based on the statutory rate of the jurisdiction in which the discrete item resides. | ||||||||||||||||||||||||||||||||||||||
| ConocoPhillips | |||||||||||||||
| Table 2: Reconciliation of reported production to pro forma underlying production | |||||||||||||||
| In MBOED, Except as Indicated | |||||||||||||||
3Q22 |
3Q21 |
|
2022 YTD |
2021 YTD |
|||||||||||
| Total Reported ConocoPhillips Production | 1,754 |
|
1,544 |
|
1,731 |
|
1,553 |
|
|||||||
| Closed Dispositions1 | (8 |
) |
(85 |
) |
(22 |
) |
(85 |
) |
|||||||
| Closed Acquisitions 2 | 5 |
|
212 |
|
4 |
|
209 |
|
|||||||
| Total Pro Forma Underlying Production | 1,751 |
|
1,671 |
|
1,713 |
|
1,677 |
|
|||||||
| Estimated Downtime from Winter Storm Uri3 | - |
|
- |
|
- |
|
16 |
|
|||||||
| Estimated Uplift from 2 to 3 stream conversion4 | (50 |
) |
- |
|
(43 |
) |
- |
|
|||||||
| 1Includes production related to the completed Indonesia disposition and various Lower 48 dispositions. | |||||||||||||||
| 2Includes production related to the acquisition of Shell's Permian assets as well as the additional 10% shareholding interest in APLNG and a Lower 48 bolt-on acquisition. 2021 has been pro forma adjusted for these acquisitions and assumes 180 MBOED for the Shell Permian assets. | |||||||||||||||
| 3Estimated production impacts from Winter Storm Uri, which are excluded from Total Reported Production and Total Pro Forma Underlying Production. | |||||||||||||||
| 4Estimated production impacts from the conversion of Concho two-stream contracted volumes to a three-stream (crude oil, natural gas and natural gas liquids) reporting basis, which are included in Total Reported Production and Total Pro Forma Underlying Production. | |||||||||||||||
Dennis Nuss (media)
281-293-1149
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Investor Relations
281-293-5000
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RICHMOND, Va.--(BUSINESS WIRE)--Really Good Equipment, a company led by a team with 50+ years of experience designing, manufacturing and reconditioning leaf collection equipment, announced today that electrification is now an option within its municipal fleet reconditioning program – the Really Good Refurb.
“There’s a growing need across municipalities for electric equipment but it’s not easy to find - lead times are long and it’s incredibly expensive,” said Joey Woodfin, CEO of Really Good Equipment. “That’s why retrofitting existing equipment is a great value. It costs significantly less than buying new, you get what you need faster, and it eliminates unnecessary scrap and waste.”
Really Good Equipment has partnered with “the best and brightest battery electric engineers” and integrated that expertise with decades of mechanical experience in industrial equipment to develop a process that replaces internal-combustion engines with 100% electric systems.
“Retrofitting is actually BETTER for the environment than purchasing new electric equipment,” said Woodfin. “We’re taking diesel engines off the road, not simply shuffling them around. For instance, a large metro area like Washington, D.C. may operate 30 diesel-powered leaf trailers on average. If we replace those engines with electric systems, we’re removing approximately the same amount of GHG (greenhouse gas) emissions from the environment that is generated when 225 acres of the Amazon are cleared through burning. That’s a significant impact we can make very easily in our own backyard.”
Because retrofitting requires less capital expense, municipalities can potentially get 2 or 3 pieces of electric equipment in the field at the same cost as a single new unit – stretching their budgets and accelerating environmental compliance. In addition, electric equipment enjoys 65% less operating and maintenance costs over internal combustion engines while allowing municipalities to serve their communities in a quieter, more healthy and more sustainable way.
According to Woodfin, a typical electrification takes 3 months. “We highly recommend reserving your spot in our queue to ensure you have the equipment you’ll need for the 2023 leaf season.” While the Company’s initial focus is leaf collection systems, it will expand its offering to bucket trucks, street sweepers and other heavy equipment by the end of the year. “If you have a specific need, call us…we’d love to talk,” said Woodfin.
“We’re excited to work with cities and towns to help them deliver on their sustainability goals in the most fiscally-responsible way,” said Woodfin. “It’s a fluid space with lots of moving parts, but we have a strong track record of being flexible, resourceful and quick to execute. Our goal is for municipalities to think of us as their fleet electrification partner.”
About Really Good Equipment
Really Good Equipment delivers the highest-quality, reconditioned trucks and equipment to municipalities across the U.S. The company prides itself on its steadfast commitment to helping customers make the right decision when purchasing a piece of pre-owned equipment. For more information, visit reallygoodequipment.com.
Suzanne Abbot
Sticks & Mud Consulting
804.874.1089
This email address is being protected from spambots. You need JavaScript enabled to view it.
HOUSTON--(BUSINESS WIRE)--Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG) today announced its financial results for the third quarter 2022.
RECENT HIGHLIGHTS
CEO COMMENT
“The Cheniere team continued to fire on all cylinders throughout the third quarter, as evidenced by our strong quarterly earnings, confirmation of our recently revised 2022 guidance, and the implementation of our ‘20/20 Vision’ long-term capital allocation plan,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “Our demonstrated success throughout our organization continues to position Cheniere as a leader in the global LNG market and would not be possible without our team’s relentless dedication to safe and reliable operations.”
“Our confidence in a strong finish to 2022 and optimism looking ahead to 2023 is underpinned by our achievements across the Cheniere organization. Our market leading LNG platform continues to grow, with Substantial Completion recently achieved on the third marine berth at Sabine Pass, and Bechtel well underway on the execution of Corpus Christi Stage 3. We look forward to reinforcing our reputation on execution and bringing much-needed new LNG supply to the market from Corpus Christi Stage 3 beginning in late 2025.”
2022 FULL YEAR FINANCIAL GUIDANCE
(in billions) |
|
|
2022 |
||||||
Consolidated Adjusted EBITDA1 |
|
|
|
|
$ |
11.0 |
- |
$ |
11.5 |
Distributable Cash Flow1 |
|
|
|
|
$ |
8.1 |
- |
$ |
8.6 |
SUMMARY AND REVIEW OF FINANCIAL RESULTS
(in millions, except LNG data) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||
|
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
||||||||||
Revenues |
$ |
8,852 |
|
|
$ |
3,200 |
|
|
177 |
% |
|
$ |
24,343 |
|
|
$ |
9,307 |
|
|
162 |
% |
Net loss2 |
$ |
(2,385 |
) |
|
$ |
(1,084 |
) |
|
nm |
|
$ |
(2,509 |
) |
|
$ |
(1,020 |
) |
|
nm |
||
Consolidated Adjusted EBITDA1 |
$ |
2,782 |
|
|
$ |
1,053 |
|
|
164 |
% |
|
$ |
8,464 |
|
|
$ |
3,528 |
|
|
140 |
% |
LNG exported: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of cargoes |
|
156 |
|
|
|
141 |
|
|
11 |
% |
|
|
472 |
|
|
|
413 |
|
|
14 |
% |
Volumes (TBtu) |
|
558 |
|
|
|
500 |
|
|
12 |
% |
|
|
1,705 |
|
|
|
1,476 |
|
|
16 |
% |
LNG volumes loaded (TBtu) |
|
559 |
|
|
|
500 |
|
|
12 |
% |
|
|
1,708 |
|
|
|
1,475 |
|
|
16 |
% |
Consolidated Adjusted EBITDA increased approximately $1.7 billion and $4.9 billion for the three and nine months ended September 30, 2022, respectively, as compared to the three and nine months ended September 30, 2021, primarily due to increased margins per MMBtu of LNG and to a lesser extent from increased volumes of LNG delivered.
Consolidated Adjusted EBITDA for the three months ended September 30, 2022 was also positively impacted by the recognition of a portion of the $765 million lump-sum payment expected to be made by Chevron U.S.A. Inc. (“Chevron”) during calendar year 2022 related to the early termination of the Terminal Use Agreement (“TUA”) between Sabine Pass LNG, L.P. and Chevron.
Net loss was approximately $2.4 billion and $2.5 billion for the three and nine months ended September 30, 2022, respectively, as compared to approximately $1.1 billion and $1.0 billion in the corresponding 2021 periods. The unfavorable change for both comparable periods was primarily due to an increase in derivative losses from changes in fair value and settlements of approximately $2.2 billion and $6.0 billion, respectively (before tax and non-controlling interests). The unfavorable change for the nine months ended September 30, 2022 also reflects a lower contribution from margins on sales of physical gas as compared the nine months ended September 30, 2021. These decreases were partially offset by increased margins per MMBtu of LNG and increased volumes of LNG delivered for the three and nine months ended September 30, 2022, in addition to the recognition of a portion of the lump-sum payment related to the early termination of the TUA with Chevron.
Substantially all derivative losses relate to the use of commodity derivative instruments indexed to international gas and LNG prices, primarily related to our long-term integrated production marketing (“IPM”) agreements. While operationally we seek to eliminate commodity risk by utilizing derivatives to mitigate price volatility for commodities procured or sold over a period of time, as a result of the significant appreciation in forward international gas and LNG price curves during the three and nine months ended September 30, 2022, we recognized $5.0 billion and $9.2 billion, respectively, of non-cash unfavorable changes in fair value attributable to such positions (before tax and non-controlling interests).
Our IPM agreements are designed to provide stable margins on purchases of natural gas and sales of LNG over the life of the agreement and have a fixed fee component, similar to that of LNG sold under our long-term, fixed fee LNG SPAs. However, the long-term duration and international price basis of our IPM agreements make them particularly susceptible to fluctuations in fair market value from period to period. In addition, accounting requirements prescribe recognition of these long-term gas supply agreements at fair value, but do not currently permit fair value recognition of the associated sale of LNG, resulting in a mismatch of accounting recognition for the purchase of natural gas and sale of LNG.
Share-based compensation expenses included in net loss totaled $36 million and $114 million for the three and nine months ended September 30, 2022, respectively, compared to $28 million and $91 million for the three and nine months ended September 30, 2021, respectively.
Our financial results are reported on a consolidated basis. Our ownership interest in Cheniere Partners as of September 30, 2022 consisted of 100% ownership of the general partner and a 48.6% limited partner interest.
BALANCE SHEET MANAGEMENT
Capital Resources
As of September 30, 2022, our total consolidated liquidity position was approximately $10.7 billion. We had cash and cash equivalents of $2.5 billion on a consolidated basis, of which $1.0 billion was held by Cheniere Partners. In addition, we had restricted cash and cash equivalents of $834 million, $1.25 billion of available commitments under the Cheniere Revolving Credit Facility, $1.3 billion of available commitments under the Cheniere Corpus Christi Holdings, LLC (“CCH”) Working Capital Facility, $3.3 billion of available commitments under CCH’s term loan credit facility (the “CCH Credit Facility”), $750 million of available commitments under Cheniere Partners’ credit facilities, and $837 million of available commitments under the SPL Working Capital Facility.
Key Financial Transactions and Updates
During the three months ended September 30, 2022, we prepaid approximately $779 million of the outstanding borrowings under the CCH Credit Facility.
During the three months ended September 30, 2022, we repurchased over $530 million in principal of outstanding senior notes at Cheniere and CCH in the open market, partially redeeming the 4.625% Senior Secured Notes Due 2028 at Cheniere, and the 3.700% Senior Secured Notes due 2029 and the Senior Secured Notes due 2039 at CCH.
In October 2022, SPL redeemed $300 million in outstanding borrowings under its 5.625% Senior Secured Notes due 2023 pursuant to a notice of redemption issued in September 2022.
LIQUEFACTION PROJECTS OVERVIEW
Construction Progress as of September 30, 2022:
|
CCL Stage 3 Project |
Project Status |
Under Construction |
Project Completion Percentage |
12.2%(1) |
Expected Substantial Completion |
2H 2025 - 1H 2027 |
(1) Engineering 24.1% complete, procurement 18.6% complete, subcontract work 10.8% complete and construction 0.8% complete. |
|
SPL Project
Through Cheniere Partners, we operate six natural gas liquefaction Trains for a total production capacity of approximately 30 mtpa of LNG at the Sabine Pass LNG terminal in Cameron Parish, Louisiana (the “SPL Project”).
CCL Project
We operate three natural gas liquefaction Trains for a total production capacity of approximately 15 mtpa of LNG at the Corpus Christi LNG terminal near Corpus Christi, Texas (the “CCL Project”).
Corpus Christi Stage 3 Project
We are constructing an expansion adjacent to the CCL Project consisting of seven midscale Trains with an expected total production capacity of over 10 mtpa of LNG (the “CCL Stage 3 Project”). In June 2022, our Board of Directors made a positive FID with respect to the CCL Stage 3 Project and issued full notice to proceed with construction to Bechtel Energy Inc.
Corpus Christi Liquefaction Midscale Trains 8 & 9 Project
We are developing an expansion adjacent to the Corpus Christi Stage 3 Project consisting of two midscale Trains with an expected total production capacity of approximately 3 mtpa of LNG (the “CCL Midscale Trains 8 & 9 Project”). In August 2022, certain of our subsidiaries initiated the pre-filing review process with the FERC.
INVESTOR CONFERENCE CALL AND WEBCAST
We will host a conference call to discuss our financial and operating results for the third quarter 2022 on Thursday, November 3, 2022, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website.
| _______________ | |
| 1 | Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for further details. |
| 2 | Net income (loss) as used herein refers to Net income (loss) attributable to common stockholders on our Consolidated Statements of Operations. |
| 3 | Forecast as of September 12, 2022 and subject to change based upon, among other things, changes in commodity prices over time. |
About Cheniere
Cheniere Energy, Inc. is the leading producer and exporter of LNG in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with total production capacity of approximately 45 mtpa of LNG in operation and an additional 10+ mtpa of expected production capacity under construction. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.
For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed with the Securities and Exchange Commission.
Use of Non-GAAP Financial Measures
In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Consolidated Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures that we use to facilitate comparisons of operating performance across periods. These non-GAAP measures should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated.
Non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or in lieu of an analysis of our results as reported under GAAP and should be evaluated only on a supplementary basis.
Forward-Looking Statements
This press release contains certain statements that may include “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere’s financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding regulatory authorization and approval expectations, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third-parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, and (vii) statements relating to Cheniere’s capital deployment, including intent, ability, extent, and timing of capital expenditures, debt repayment, dividends, share repurchases and execution on the capital allocation plan. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere’s periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.
(Financial Tables and Supplementary Information Follow)
LNG VOLUME SUMMARY
As of October 31, 2022, approximately 2,450 cumulative LNG cargoes totaling over 165 million tonnes of LNG have been produced, loaded and exported from our liquefaction projects.
During the three and nine months ended September 30, 2022, we exported 558 and 1,705 TBtu of LNG, respectively, from our liquefaction projects. 37 TBtu of LNG exported from our liquefaction projects and sold on a delivered basis was in transit as of September 30, 2022, none of which was related to commissioning activities.
The following table summarizes the volumes of operational and commissioning LNG that were loaded from our liquefaction projects and for which the financial impact was recognized on our Consolidated Financial Statements during the three and nine months ended September 30, 2022:
|
Three Months Ended September 30, 2022 |
|
Nine Months Ended September 30, 2022 |
||||
(in TBtu) |
Operational |
|
Commissioning |
|
Operational |
|
Commissioning |
Volumes loaded during the current period |
559 |
|
— |
|
1,695 |
|
13 |
Volumes loaded during the prior period but
|
34 |
|
— |
|
49 |
|
1 |
Less: volumes loaded during the current period
|
(37) |
|
— |
|
(37) |
|
— |
Total volumes recognized in the current period |
556 |
|
— |
|
1,707 |
|
14 |
In addition, during the three and nine months ended September 30, 2022, we recognized 4 TBtu and 19 TBtu of LNG on our Consolidated Financial Statements related to LNG cargoes sourced from third-parties.
Cheniere Energy, Inc. |
|||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||
(in millions, except per share data)(1) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
LNG revenues |
$ |
8,236 |
|
|
$ |
3,078 |
|
|
$ |
23,449 |
|
|
$ |
8,990 |
|
Regasification revenues |
|
455 |
|
|
|
68 |
|
|
|
591 |
|
|
|
202 |
|
Other revenues |
|
161 |
|
|
|
54 |
|
|
|
303 |
|
|
|
115 |
|
Total revenues |
|
8,852 |
|
|
|
3,200 |
|
|
|
24,343 |
|
|
|
9,307 |
|
|
|
|
|
|
|
|
|
||||||||
Operating costs and expenses |
|
|
|
|
|
|
|
||||||||
Cost of sales (excluding items shown separately below) (2) |
|
11,073 |
|
|
|
4,868 |
|
|
|
24,161 |
|
|
|
8,408 |
|
Operating and maintenance expense |
|
419 |
|
|
|
350 |
|
|
|
1,227 |
|
|
|
1,057 |
|
Development expense |
|
4 |
|
|
|
2 |
|
|
|
12 |
|
|
|
5 |
|
Selling, general and administrative expense |
|
92 |
|
|
|
70 |
|
|
|
265 |
|
|
|
224 |
|
Depreciation and amortization expense |
|
280 |
|
|
|
259 |
|
|
|
827 |
|
|
|
753 |
|
Other |
|
— |
|
|
|
1 |
|
|
|
3 |
|
|
|
— |
|
Total operating costs and expenses |
|
11,868 |
|
|
|
5,550 |
|
|
|
26,495 |
|
|
|
10,447 |
|
|
|
|
|
|
|
|
|
||||||||
Loss from operations |
|
(3,016 |
) |
|
|
(2,350 |
) |
|
|
(2,152 |
) |
|
|
(1,140 |
) |
|
|
|
|
|
|
|
|
||||||||
Other income (expense) |
|
|
|
|
|
|
|
||||||||
Interest expense, net of capitalized interest |
|
(354 |
) |
|
|
(364 |
) |
|
|
(1,060 |
) |
|
|
(1,088 |
) |
Gain (loss) on modification or extinguishment of debt |
|
3 |
|
|
|
(36 |
) |
|
|
(43 |
) |
|
|
(95 |
) |
Derivative gain (loss), net |
|
— |
|
|
|
(2 |
) |
|
|
2 |
|
|
|
(3 |
) |
Other expense, net |
|
(29 |
) |
|
|
(24 |
) |
|
|
(21 |
) |
|
|
(14 |
) |
Total other expense |
|
(380 |
) |
|
|
(426 |
) |
|
|
(1,122 |
) |
|
|
(1,200 |
) |
|
|
|
|
|
|
|
|
||||||||
Loss before income taxes and non-controlling interest |
|
(3,396 |
) |
|
|
(2,776 |
) |
|
|
(3,274 |
) |
|
|
(2,340 |
) |
Less: income tax benefit |
|
(752 |
) |
|
|
(1,860 |
) |
|
|
(762 |
) |
|
|
(1,864 |
) |
Net loss |
|
(2,644 |
) |
|
|
(916 |
) |
|
|
(2,512 |
) |
|
|
(476 |
) |
Less: net income (loss) attributable to non-controlling interest |
|
(259 |
) |
|
|
168 |
|
|
|
(3 |
) |
|
|
544 |
|
Net loss attributable to common stockholders |
$ |
(2,385 |
) |
|
$ |
(1,084 |
) |
|
$ |
(2,509 |
) |
|
$ |
(1,020 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to common stockholders—basic and diluted (3) |
$ |
(9.54 |
) |
|
$ |
(4.27 |
) |
|
$ |
(9.94 |
) |
|
$ |
(4.03 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding—basic |
|
249.9 |
|
|
|
253.6 |
|
|
|
252.5 |
|
|
|
253.3 |
|
Weighted average number of common shares outstanding—diluted |
|
249.9 |
|
|
|
253.6 |
|
|
|
252.5 |
|
|
|
253.3 |
|
| _____________________ | |
| (1) | Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed with the Securities and Exchange Commission. |
| (2) | Cost of Sales includes approximately $5.5 billion and $9.9 billion of losses from changes in the fair value of commodity derivatives prior to contractual delivery or termination during the three and nine months ended September 30, 2022, respectively, as compared to $2.4 billion and $2.8 billion of losses in the corresponding 2021 periods, respectively. |
| (3) | Earnings per share in the table may not recalculate exactly due to rounding because it is calculated based on whole numbers, not the rounded numbers presented. |
Cheniere Energy, Inc. |
|||||||
Consolidated Balance Sheets |
|||||||
(in millions, except share data)(1)(2) |
|||||||
|
September 30, |
|
December 31, |
||||
|
2022 |
|
2021 |
||||
ASSETS |
(unaudited) |
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
2,504 |
|
|
$ |
1,404 |
|
Restricted cash and cash equivalents |
|
834 |
|
|
|
413 |
|
Trade and other receivables, net of current expected credit losses |
|
1,834 |
|
|
|
1,506 |
|
Inventory |
|
1,129 |
|
|
|
706 |
|
Current derivative assets |
|
131 |
|
|
|
55 |
|
Margin deposits |
|
267 |
|
|
|
765 |
|
Contract assets |
|
392 |
|
|
|
5 |
|
Other current assets |
|
115 |
|
|
|
202 |
|
Total current assets |
|
7,206 |
|
|
|
5,056 |
|
|
|
|
|
||||
Property, plant and equipment, net of accumulated depreciation |
|
30,904 |
|
|
|
30,288 |
|
Operating lease assets |
|
2,795 |
|
|
|
2,102 |
|
Derivative assets |
|
46 |
|
|
|
69 |
|
Goodwill |
|
77 |
|
|
|
77 |
|
Deferred tax assets |
|
2,100 |
|
|
|
1,204 |
|
Other non-current assets, net |
|
514 |
|
|
|
462 |
|
Total assets |
$ |
43,642 |
|
|
$ |
39,258 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
405 |
|
|
$ |
155 |
|
Accrued liabilities |
|
3,108 |
|
|
|
2,299 |
|
Current debt, net of discount and debt issuance costs |
|
1,717 |
|
|
|
366 |
|
Deferred revenue |
|
211 |
|
|
|
155 |
|
Current operating lease liabilities |
|
669 |
|
|
|
535 |
|
Current derivative liabilities |
|
3,215 |
|
|
|
1,089 |
|
Other current liabilities |
|
50 |
|
|
|
94 |
|
Total current liabilities |
|
9,375 |
|
|
|
4,693 |
|
|
|
|
|
||||
Long-term debt, net of premium, discount and debt issuance costs |
|
25,325 |
|
|
|
29,449 |
|
Operating lease liabilities |
|
2,082 |
|
|
|
1,541 |
|
Finance lease liabilities |
|
75 |
|
|
|
57 |
|
Derivative liabilities |
|
10,954 |
|
|
|
3,501 |
|
Other non-current liabilities |
|
161 |
|
|
|
50 |
|
|
|
|
|
||||
Stockholders’ deficit |
|
|
|
||||
Preferred stock: $0.0001 par value, 5.0 million shares authorized, none issued |
|
— |
|
|
|
— |
|
Common stock: $0.003 par value, 480.0 million shares authorized; 276.7 million shares and
|
|
1 |
|
|
|
1 |
|
Treasury stock: 26.8 million shares and 21.6 million shares at September 30, 2022 and
|
|
(1,609 |
) |
|
|
(928 |
) |
Additional paid-in-capital |
|
4,309 |
|
|
|
4,377 |
|
Accumulated deficit |
|
(8,880 |
) |
|
|
(6,021 |
) |
Total Cheniere stockholders’ deficit |
|
(6,179 |
) |
|
|
(2,571 |
) |
Non-controlling interest |
|
1,849 |
|
|
|
2,538 |
|
Total stockholders’ deficit |
|
(4,330 |
) |
|
|
(33 |
) |
Total liabilities and stockholders’ deficit |
$ |
43,642 |
|
|
$ |
39,258 |
|
Cheniere Energy, Inc.
Investors
Randy Bhatia 713-375-5479
Frances Smith 713-375-5753
Media Relations
Eben Burnham-Snyder 713-375-5764
Phil West 713-375-5586
LONG BEACH, Calif.--(BUSINESS WIRE)--California Resources Corporation (NYSE: CRC), an independent oil and natural gas company committed to energy transition in the sector, today reported third quarter 2022 operational and financial results.
"CRC's strong financial performance, coupled with our consistent operational execution, allowed us to increase our fixed dividend by 66% and our Share Repurchase Program by an additional $200 million. Our disciplined capital allocation and shareholder return strategy demonstrate our continued commitment to our stakeholders. With these changes, CRC is on track to deliver nearly $1 billion in cumulative shareholder returns by year end 2023," said Mac McFarland, CRC’s President and Chief Executive Officer.
McFarland continued, "On the carbon management side, we continue to work with emitters, advance our permits, progress our Carbon TerraVault JV partnership and remain optimistic on our carbon management goals. CRC's carbon management strategy and energy transition efforts continue to be a unique differentiator and support our corporate objectives while delivering on our financial goals and sustainability targets."
Primary Highlights
Third Quarter 2022 Highlights
Financial
Operations
2022 Guidance and Capital Program Update3
CRC's capital program is dynamic in response to oil market volatility while focusing on oil production and strong liquidity and maximizing free cash flow. During the third quarter of 2022, CRC successfully managed the current market inflationary pressures and is narrowing its 2022 total capital program to the range of $380 to $400 million. CRC entered the fourth quarter of 2022 with four drilling rigs and expects to average three drilling rigs for the remainder of the year in its Elk Hills, Buena Vista, Wilmington and Huntington Beach fields as CRC repositions for its 2023 program.
This level of expected spending is consistent with CRC's strategy of investing up to 50% of its operating cash flow back into CRC's oil and gas operations. Following entry into the Carbon TerraVault JV with Brookfield, CRC anticipates that a portion of the operating cash flow previously designated for advancing decarbonization and other emission reducing projects may become available for other corporate purposes, such as shareholder returns and other strategic opportunities (see the summary of our Business Strategy in Part I, Item 1 & 2 – Business and Properties in CRC's 2021 Annual Report and see Part I, Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations, Carbon TerraVault Joint Venture in the Form 10-Q for the quarter ended September 30, 2022 for additional details on Carbon TerraVault JV).
The delay in the Kern County EIR litigation (see Part I, Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations, Regulatory Update in the Form 10-Q for the quarter ended September 30, 2022 for additional details on Kern County EIR) led to a change in CRC's drilling program which favors a higher natural gas to oil ratio. Therefore, CRC's 2022 oil production guidance is expected to be negatively impacted by approximately 1 MBo/d from this change. CRC's 2022 total production guidance remains consistent with previous expectations in the range of 91 to 94 MBoe/d.
CRC is raising its operating cost guidance to $760 to $790 million from $725 to $755 million primarily due to higher natural gas and electricity prices as well as some inflation and the change in well mix.
|
|
|
|
|
|
CRC GUIDANCE3 |
Total 2022E |
|
CMB 2022E |
|
E&P, Corp. & Other 2022E |
Net Total Production (MBoe/d) |
94 - 91 |
|
|
|
94 - 91 |
Net Oil Production (MBbl/d) |
58 - 53 |
|
|
|
58 - 53 |
Operating Costs ($ millions) |
$760 - $790 |
|
|
|
$760 - $790 |
CMB Expenses4 ($ millions) |
$10 - $20 |
|
$10 - $20 |
|
|
Adjusted General and Administrative Expenses1 ($ millions) |
$195 - $210 |
|
$10 - $15 |
|
$185 - $195 |
Total Capital ($ millions) |
$380 - $400 |
|
$20 - $30 |
|
$360 - $370 |
Drilling & Completions |
$232 - $235 |
|
|
|
$232 - $235 |
Workovers |
$36 - $38 |
|
|
|
$36 - $38 |
Facilities |
$63 - $65 |
|
|
|
$63 - $65 |
Corporate & Other |
$29 - $32 |
|
|
|
$29 - $32 |
CMB |
$20 - $30 |
|
$20 - $30 |
|
|
Adjusted EBITDAX1 ($ millions) |
$835 - $890 |
|
($20) - ($35) |
|
$870 -- $910 |
Free Cash Flow1 ($ millions) |
$325 - $370 |
|
($40) - ($65) |
|
$390 - $410 |
Supply Chain and Cost Inflation
Operating and capital costs in the oil and natural gas industry are heavily influenced by commodity prices which are typically cyclical in nature. Typically, suppliers will negotiate increases for drilling and completion, oilfield services, equipment and materials as prices for energy-related commodities and raw materials (such as steel, metals and chemicals) increase. Recent worldwide and U.S. supply chain issues, together with rising commodity prices and tight labor markets in the U.S., have created cost inflation during 2022. Cost inflation may continue into 2023 if rising energy prices result in factory constraints, placing certain items such as directional drilling components and materials that have a high energy input intensity in short supply. CRC has taken measures to limit the effects of the inflationary market by entering into contracts for materials and services with terms of one to three years. CRC has also taken steps to build its on-hand supply stock for items frequently used in its operations to address possible supply chain disruptions. Despite these efforts, CRC has experienced significant increased costs thus far in 2022 and anticipates additional increases in the cost of goods and services and wages in the company's operations during the remainder of 2022. These increases will factor into CRC's operating and capital costs and could also negatively impact its results of operations and cash flows in 2023 and beyond.
Third Quarter 2022 E&P Operational Results
In November 2020, the SEC amended Regulation S-K to, among other things, provide companies with the option to discuss material changes to results of operations between the current and immediately preceding quarter. CRC has elected to discuss its results of operations on a sequential-quarter basis. CRC believes this approach provides more meaningful and useful information to measure its performance from the immediately preceding quarter. In accordance with this final rule, CRC is not required to include a comparison of the current quarter and the same prior-year quarter.
Total daily net production for the three months ended September 30, 2022, compared to the three months ended June 30, 2022 increased by approximately 1 MBoe/d, or 1%. This increase is predominately a result of CRC's production-sharing contracts (PSCs), which positively impacted its net oil production in the three months ended September 30, 2022 by approximately 2 MBoe/d, compared to the three months ended June 30, 2022. This increase was partially offset by natural decline.
During the third quarter of 2022, CRC operated an average of three drilling rigs in the San Joaquin Basin and two drilling rigs in the Los Angeles Basin. During the quarter, CRC drilled 36 net wells and brought online 42 wells. See Attachment 3 for further information on CRC's production results by basin and Attachment 5 for further information on CRC's drilling activity.
Third Quarter 2022 Financial Results
|
3rd Quarter |
|
|
2nd Quarter |
||||
($ and shares in millions, except per share amounts) |
2022 |
|
|
2022 |
||||
|
|
|
|
|
||||
Statements of Operations: |
|
|
|
|
||||
Revenues |
|
|
|
|
||||
Total operating revenues |
$ |
1,125 |
|
|
|
$ |
747 |
|
|
|
|
|
|
||||
Operating Expenses |
|
|
|
|
||||
Total operating expenses |
|
536 |
|
|
|
|
473 |
|
Gain on asset divestitures |
|
2 |
|
|
|
|
4 |
|
Operating Income |
$ |
591 |
|
|
|
$ |
278 |
|
Net Income |
$ |
426 |
|
|
|
$ |
190 |
|
|
|
|
|
|
||||
Net income per share - basic |
$ |
5.75 |
|
|
|
$ |
2.48 |
|
Net income per share - diluted |
$ |
5.58 |
|
|
|
$ |
2.41 |
|
Adjusted net income1 |
$ |
111 |
|
|
|
$ |
89 |
|
Adjusted net income1 per share - diluted |
$ |
1.45 |
|
|
|
$ |
1.13 |
|
Weighted-average common shares outstanding - basic |
|
74.1 |
|
|
|
|
76.7 |
|
Weighted-average common shares outstanding - diluted |
|
76.3 |
|
|
|
|
78.8 |
|
Adjusted EBITDAX1 |
$ |
234 |
|
|
|
$ |
204 |
|
Review of Third Quarter 2022 Financial Results
Realized oil prices, excluding the effects of cash settlements on CRC's commodity derivative contracts, decreased by $14.36 per barrel from $112.32 per barrel in the second quarter of 2022 to $97.96 per barrel in the third quarter of 2022. Realized oil prices were lower in the third quarter of 2022 compared to the second quarter of 2022 due to slowing global economic activity and ongoing releases from the U.S. Strategic Petroleum Reserve.
Realized oil prices, including the effects of cash settlements on CRC's commodity derivative contracts, decreased by $0.72 from $63.17 in the second quarter of 2022 to $62.45 in the third quarter of 2022. See Attachment 4 for further information on prices.
Adjusted EBITDAX1 for the third quarter of 2022 was $234 million. See table below for the Company's net cash provided by operating activities, capital investments and free cash flow1 during the same periods.
FREE CASH FLOW1 |
||||||||
|
|
|
|
|
||||
Management uses free cash flow, which is defined by us as net cash provided by operating activities less capital investments, as a measure of liquidity. The following table presents a reconciliation of our net cash provided by operating activities to free cash flow. We supplemented our non-GAAP measure of free cash flow with free cash flow of our exploration and production and corporate items (Free Cash Flow for E&P, Corporate & Other) which we believe is a useful measure for investors to understand the results of our core oil and gas business. We define Free Cash Flow for E&P, Corporate & Other as consolidated free cash flow less results attributable to our carbon management business (CMB). |
||||||||
|
|
|
|
|
||||
|
3rd Quarter |
|
|
2nd Quarter |
||||
($ millions) |
2022 |
|
|
2022 |
||||
|
|
|
|
|
||||
Net cash provided by operating activities |
$ |
235 |
|
|
|
$ |
181 |
|
Capital investments |
|
(107 |
) |
|
|
|
(98 |
) |
Free cash flow1 |
$ |
128 |
|
|
|
$ |
83 |
|
|
|
|
|
|
||||
E&P, corporate & other free cash flow1 |
$ |
139 |
|
|
|
$ |
98 |
|
CMB free cash flow1 |
$ |
(11 |
) |
|
|
$ |
(15 |
) |
The following table presents key operating data for CRC's oil and gas operations, on a per BOE basis, for the periods presented below. Energy operating costs consist of purchased natural gas used to generate electricity for CRC's operations and steam for its steamfloods, purchased electricity and internal costs to generate electricity used in CRC's operations. Gas processing costs include costs associated with compression, maintenance and other activities needed to run CRC's gas processing facilities at Elk Hills. Non-energy operating costs equal total operating costs less energy operating costs and gas processing costs. Purchased natural gas used to generate steam in CRC's steamfloods was reclassified from non-energy operating costs to energy operating costs beginning in the third quarter of 2022. All prior periods have been updated to conform to this presentation.
OPERATING COSTS PER BOE |
||||||||
|
|
|
|
|
||||
The reporting of our PSCs creates a difference between reported operating costs, which are for the full field, and reported volumes, which are only our net share, inflating the per barrel operating costs. The following table presents operating costs after adjusting for the excess costs attributable to PSCs. |
||||||||
|
|
|
|
|
||||
|
3rd Quarter |
|
|
2nd Quarter |
||||
($ per Boe) |
2022 |
|
|
2022 |
||||
Energy operating costs |
$ |
10.96 |
|
|
|
|
9.33 |
|
Gas processing costs |
|
0.49 |
|
|
|
|
0.54 |
|
Non-energy operating costs |
|
13.82 |
|
|
|
|
13.05 |
|
Operating costs |
$ |
25.27 |
|
|
|
$ |
22.92 |
|
Excess costs attributable to PSCs |
|
(2.16 |
) |
|
|
|
(2.58 |
) |
Operating costs, excluding effects of PSCs (a) |
$ |
23.11 |
|
|
|
$ |
20.34 |
|
|
|
|
|
|
||||
(a) Operating costs, excluding effects of PSCs is a non-GAAP measure. |
||||||||
Energy operating costs for the third quarter of 2022 were $93 million, or $10.96 per Boe, which was an increase of $16 million or 21% from $77 million, or $9.33 per Boe, for the second quarter of 2022. This increase was primarily a result of higher electricity and natural gas prices.
Non-energy operating costs for the third quarter of 2022 were $117 million, or $13.82 per Boe, which was an increase of $8 million or 7% from $109 million, or $13.05 per Boe, for the second quarter of 2022. This increase was primarily a result of increased downhole maintenance activity.
Kern County Environmental Impact Report
CalGEM is California's primary regulator of the oil and natural gas industry on private and state lands, with additional oversight from the State Lands Commission’s administration of state surface and mineral interests. CalGEM currently requires an operator to identify the manner in which the California Environmental Quality Act (CEQA) has been satisfied prior to issuing various state permits, typically through either an environmental review or an exemption by a state or local agency. In Kern County, this requirement has typically been satisfied by complying with the local oil and gas ordinance which was supported by an Environmental Impact Report (EIR) certified by the Kern County Board of Supervisors in 2015.
A group of petitioners challenged the EIR and on February 25, 2020, a California Appellate Court (the Court) issued a ruling that required Kern County to decertify the EIR and set aside the amended Zoning Ordinance. In response, Kern County prepared, circulated and certified a supplementary recirculated EIR (Supplemental EIR) to address the ruling from the Court and, in April 2021, resumed issuing local permits relying on the Supplemental EIR. However, on October 22, 2021, Kern County was ordered to cease reviewing and approving oil and gas permits until the trial court determined that the Zoning Ordinance complies with CEQA requirements. On May 26, 2022, a hearing was held in Kern County and the Court ruled that Kern County’s local permitting system must cease until the trial court verified that the noted deficiencies had been remedied and that the remedies satisfied the concerns raised by the Court. In October 2022, the trial court ruled that the Supplemental EIR was not decertified but ordered Kern County to address four discrete issues before suspension of the local permitting could be lifted, which, once resolved, would bring the Supplemental EIR into compliance with applicable laws. The four discrete issues included requirements for the removal of offsite legacy equipment to mitigate agricultural land use impacts, revising emission reduction requirements to address particulate matter, the establishment of a drinking water grant fund for disadvantaged communities in Kern County, and updating the local oil and gas ordinance to reflect these requirements. The Kern County Board of Supervisors approved these changes in August 2022. On October 12, 2022, Kern County submitted notice with the trial court of these changes and on November 2, 2022 the trial court lifted the order preventing reliance on the local permitting system. This ruling is subject to further appeal by the petitioners and there is still some potential for future disruptions to obtaining permits in Kern County until any such appeals are resolved.
Sustainability Update
In August 2022, CRC published its 2021 Sustainability Report. The report provides an overview of CRC’s continuous progress on its sustainability efforts in environmental, social and governance (ESG) performance as the company advances its commitment to the energy transition and decarbonization of local economies. Building off its 2020 Sustainability Update and 2021 Leadership Level Ranking of A- by CDP, CRC's 2021 Sustainability Report references Sustainability Accounting Standards Board (SASB), Global Reporting Initiative (GRI) and International Petroleum Industry Environmental Conservation Association (IPIECA) standards.
Highlights and achievements from CRC’s 2021 Sustainability Report include:
For more information about CRC’s sustainability efforts and to download the full length and summary versions of the 2021 Sustainability Report, please visit crc.com/esg.
Balance Sheet and Liquidity Update
CRC's aggregate commitment under the Revolving Credit Facility was $602 million as of September 30, 2022. The borrowing base for the Revolving Credit Facility is redetermined semi-annually and was reaffirmed at $1.2 billion on October 25, 2022.
As of September 30, 2022, CRC had liquidity of $819 million, which consisted of $358 million in unrestricted cash and $461 million of available borrowing capacity under its Revolving Credit Facility which is net of $141 million of letters of credit.
Acquisitions and Divestitures
During the three and nine months ended September 30, 2022, CRC recorded a net gain of $2 million and $60 million, respectively, related to the sale of certain Ventura basin assets and its Lost Hills transaction. The amount recognized in the three and nine months ended September 30, 2022 included $2 million and $6 million, respectively, of additional earn-out consideration on Ventura basin divestitures that occurred in the second half of 2021 and the first half of 2022. In addition, CRC also received $2 million to secure the performance of well abandonment obligations on divested properties which it expects to return to the purchaser once the work has been completed. As a result, CRC recorded a liability of $2 million included as accrued liabilities on its condensed consolidated balance sheet as of September 30, 2022. See Part II, Item 8 – Financial Statements and Supplementary Data, Note 3 Divestitures and Acquisitions in CRC's 2021 Annual Report for additional information on the Ventura basin transactions.
The closing of the sale of CRC's remaining assets in the Ventura basin is subject to final approval from the State Lands Commission, which CRC expects to receive prior to the end of the first quarter of 2023. These remaining assets, consisting of property, plant and equipment and associated asset retirement obligations, are classified as held for sale on CRC's condensed consolidated balance sheet as of September 30, 2022.
Shareholder Return Strategy
CRC continues to prioritize shareholder returns and dedicates a portion of its operating cash flow to shareholders. In light of this strategy, CRC's Board of Directors has increased its Share Repurchase Program by $200 million to $850 million and extended the program through December 31, 2023. Adjusting for this increase, there was approximately $426 million of capacity under CRC's Share Repurchase Program as of October 31, 2022.
During the third quarter of 2022, CRC repurchased 1.9 million shares of its common stock for $80 million. Since the inception of Share Repurchase Program through October 31, 2022, CRC has repurchased 10.6 million shares for $424 million at an average price of $39.89 per share, resulting in the repurchase of approximately 13% of the shares that CRC had at its emergence from bankruptcy.
On November 2, 2022, CRC's Board of Directors declared a quarterly cash dividend of $0.2825 per share of common stock. The dividend is payable to shareholders of record on December 1, 2022, and will be paid on December 16, 2022.
Through October 31, 2022, CRC has returned $476 million of cash to shareholders, including $52 million through quarterly dividends and $424 million through share repurchases.
Upcoming Investor Conference Participation
CRC's executives will be participating in the following events in November and December of 2022:
CRC’s presentation materials will be available the day of the events on the Events and Presentations page in the Investor Relations section on www.crc.com.
Conference Call Details
To participate in the conference call scheduled for November 3, 2022, at 1:00 p.m. Eastern Time, please dial (877) 328-5505 (International calls please dial +1 (412) 317-5421) or access via webcast at www.crc.com 15 minutes prior to the scheduled start time to register. Participants may also pre-register for the conference call at to https://dpregister.com/sreg/10171364/f48809c260. A digital replay of the conference call will be archived for approximately 90 days and supplemental slides for the conference call will be available online in the Investor Relations section of www.crc.com.
1 See Attachment 2 for the non-GAAP financial measures of adjusted EBITDAX, operating costs per BOE (excluding effects of PSCs), adjusted net income (loss), adjusted net income (loss) per share - basic and diluted, free cash flow and free cash flow, after special items including reconciliations to their most directly comparable GAAP measure, where applicable. For the full year 2022 estimates of the non-GAAP measures of adjusted EBITDAX and free cash flow, including reconciliations to their most directly comparable GAAP measure, see Attachment 7. |
2 Calculated as $358 million of available cash plus $602 million of capacity on CRC's Revolving Credit Facility less $141 million in outstanding letters of credit. |
3 Current guidance assumes a 2022 Brent price of $99.75 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $6.47 per mcf. CRC's share of production under PSC contracts decreases when commodity prices rise and increases when prices fall. |
4 CMB Expenses include start-up expenditures. |
Joanna Park (Investor Relations)
818-661-3731
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Richard Venn (Media)
818-661-6014
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HOUSTON--(BUSINESS WIRE)--Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE American: CQP) today announced its financial results for third quarter 2022.
HIGHLIGHTS
2022 FULL YEAR DISTRIBUTION GUIDANCE |
|||||
|
2022 |
||||
Distribution per Unit |
$ |
4.00 |
- |
$ |
4.25 |
SUMMARY AND REVIEW OF FINANCIAL RESULTS |
|||||||||||||||||||
(in millions, except LNG data) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||
|
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
||||||||
Revenues |
$ |
4,976 |
|
|
$ |
2,324 |
|
114 |
% |
|
$ |
12,485 |
|
|
$ |
6,176 |
|
102 |
% |
Net income (loss) |
$ |
(514 |
) |
|
$ |
381 |
|
nm |
|
$ |
(13 |
) |
|
$ |
1,123 |
|
nm |
||
Adjusted EBITDA1 |
$ |
1,471 |
|
|
$ |
738 |
|
99 |
% |
|
$ |
3,480 |
|
|
$ |
2,207 |
|
58 |
% |
LNG exported: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Number of cargoes |
|
103 |
|
|
|
86 |
|
20 |
% |
|
|
311 |
|
|
|
262 |
|
19 |
% |
Volumes (TBtu) |
|
366 |
|
|
|
307 |
|
19 |
% |
|
|
1,124 |
|
|
|
939 |
|
20 |
% |
LNG volumes loaded (TBtu) |
|
363 |
|
|
|
308 |
|
18 |
% |
|
|
1,123 |
|
|
|
938 |
|
20 |
% |
Adjusted EBITDA1 increased $733 million and $1.3 billion during the three and nine months ended September 30, 2022, respectively, as compared to the three and nine months ended September 30, 2021. The increase in Adjusted EBITDA was primarily due to increased margins per MMBtu of LNG, and to a lesser extent from increased volumes of LNG delivered. Adjusted EBITDA was also positively impacted by the recognition of a portion of the $765 million lump-sum payment to be made by Chevron U.S.A. Inc. (“Chevron”) during calendar year 2022 related to the early termination of the Terminal Use Agreement (“TUA”) between Sabine Pass LNG, L.P. and Chevron.
Net loss was $514 million and $13 million for the three and nine months ended September 30, 2022, respectively, as compared to net income of $381 million and $1.1 billion for the comparable 2021 periods. This unfavorable change was primarily due to non-cash unfavorable changes in fair value of commodity derivatives, partially offset by increased margins per MMBtu of LNG and increased volumes of LNG delivered. The unfavorable change was also partially offset by the recognition of a portion of the lump-sum payment related to the early termination of the TUA with Chevron.
Substantially all derivative losses are attributable to the recognition at fair value of our long-term Integrated Production Marketing (“IPM”) agreement with Tourmaline, a natural gas supply contract with pricing indexed to the Platts Japan Korea Marker (“JKM”). While operationally we seek to eliminate commodity risk by utilizing derivatives to mitigate price volatility for commodities procured or sold over a period of time, as a result of the significant appreciation in the forward JKM curves during the three and nine months ended September 30, 2022, we recognized approximately $1.3 billion and $2.2 billion, respectively, of non-cash unfavorable changes in fair value attributable to the Tourmaline IPM agreement.
Our IPM agreement is structured to provide stable margins on purchases of natural gas and sales of LNG over the life of the agreement and has a fixed fee component, similar to that of LNG sold under our long-term, fixed fee LNG SPAs. However, the long-term duration and international price basis of our IPM agreement makes it particularly susceptible to fluctuations in fair market value from period to period. In addition, accounting requirements prescribe recognition of this long-term gas supply agreement at fair value, but does not currently permit fair value recognition of the associated sale of LNG, resulting in incompatibility of accounting recognition for the purchase of natural gas and sale of LNG.
During the three and nine months ended September 30, 2022, we recognized in income 363 TBtu and 1,110 TBtu, respectively, of LNG loaded from the SPL Project (defined below). Additionally, in the nine months ended September 30, 2022, approximately 13 TBtu of commissioning LNG was exported from the SPL Project.
BALANCE SHEET MANAGEMENT
Capital Resources
As of September 30, 2022, our total liquidity position was approximately $2.8 billion. We had cash and cash equivalents of approximately $1.0 billion. In addition, we had current restricted cash and cash equivalents of $195 million, $750 million of available commitments under our CQP Credit Facilities, and $837 million of available commitments under the SPL Working Capital Facility.
Key Financial Transactions and Updates
In October 2022, SPL redeemed $300 million in outstanding borrowings under its 5.625% Senior Secured Notes due 2023 pursuant to a notice of redemption issued in September 2022.
SABINE PASS OVERVIEW
We own natural gas liquefaction facilities consisting of six liquefaction Trains, with a total production capacity of approximately 30 million tonnes per annum (“mtpa”) of LNG at the Sabine Pass LNG terminal in Cameron Parish, Louisiana (the “SPL Project”).
As of October 31, 2022, approximately 1,850 cumulative LNG cargoes totaling over 125 million tonnes of LNG have been produced, loaded, and exported from the SPL Project.
DISTRIBUTIONS TO UNITHOLDERS
We declared a cash distribution of $1.070 per common unit to unitholders of record as of November 3, 2022, comprised of a base amount equal to $0.775 ($3.10 annualized) and a variable amount equal to $0.295, which takes into consideration, among other things, amounts reserved for annual debt repayment and capital allocation goals, anticipated capital expenditures to be funded with cash, and cash reserves to provide for the proper conduct of the business. The common unit distribution and the related general partner distribution will be paid on November 14, 2022.
INVESTOR CONFERENCE CALL AND WEBCAST
Cheniere will host a conference call to discuss its financial and operating results for third quarter 2022 on Thursday, November 3, 2022, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website. The call and accompanying slide presentation may include financial and operating results or other information regarding Cheniere Partners.
_________________ |
|
1 Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for further details. |
About Cheniere Partners
Cheniere Partners owns the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, which has natural gas liquefaction facilities consisting of six liquefaction Trains with a total production capacity of approximately 30 mtpa of LNG. The Sabine Pass LNG terminal also has operational regasification facilities that include five LNG storage tanks, vaporizers, and three marine berths. Cheniere Partners also owns the Creole Trail Pipeline, which interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines.
For additional information, please refer to the Cheniere Partners website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed with the Securities and Exchange Commission.
Use of Non-GAAP Financial Measures
In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains a non-GAAP financial measure. Adjusted EBITDA is a non-GAAP financial measure that is used to facilitate comparisons of operating performance across periods. This non-GAAP measure should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP, and the reconciliation from these results should be carefully evaluated.
Forward-Looking Statements
This press release contains certain statements that may include “forward-looking statements.” All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere Partners’ financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding Cheniere Partners’ anticipated quarterly distributions and ability to make quarterly distributions at the base amount or any amount, (iii) statements regarding regulatory authorization and approval expectations, (iv) statements expressing beliefs and expectations regarding the development of Cheniere Partners’ LNG terminal and liquefaction business, (v) statements regarding the business operations and prospects of third-parties, (vi) statements regarding potential financing arrangements, and (vii) statements regarding future discussions and entry into contracts. Although Cheniere Partners believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere Partners’ actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere Partners’ periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere Partners does not assume a duty to update these forward-looking statements.
(Financial Tables Follow)
Cheniere Energy Partners, L.P. |
|||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||
(in millions, except per unit data)(1) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
LNG revenues |
$ |
3,130 |
|
|
$ |
1,791 |
|
|
$ |
8,577 |
|
|
$ |
5,057 |
|
LNG revenues—affiliate |
|
1,376 |
|
|
|
453 |
|
|
|
3,268 |
|
|
|
878 |
|
LNG revenues—related party |
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
Regasification revenues |
|
455 |
|
|
|
68 |
|
|
|
591 |
|
|
|
202 |
|
Other revenues |
|
15 |
|
|
|
12 |
|
|
|
45 |
|
|
|
39 |
|
Total revenues |
|
4,976 |
|
|
|
2,324 |
|
|
|
12,485 |
|
|
|
6,176 |
|
|
|
|
|
|
|
|
|
||||||||
Operating costs and expenses |
|
|
|
|
|
|
|
||||||||
Cost of sales (excluding items shown separately below) |
|
4,739 |
|
|
|
1,342 |
|
|
|
10,445 |
|
|
|
3,178 |
|
Cost of sales—affiliate |
|
104 |
|
|
|
8 |
|
|
|
166 |
|
|
|
62 |
|
Cost of sales—related party |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Operating and maintenance expense |
|
189 |
|
|
|
148 |
|
|
|
550 |
|
|
|
465 |
|
Operating and maintenance expense—affiliate |
|
39 |
|
|
|
34 |
|
|
|
118 |
|
|
|
103 |
|
Operating and maintenance expense—related party |
|
18 |
|
|
|
12 |
|
|
|
45 |
|
|
|
34 |
|
General and administrative expense |
|
3 |
|
|
|
2 |
|
|
|
3 |
|
|
|
7 |
|
General and administrative expense—affiliate |
|
23 |
|
|
|
22 |
|
|
|
70 |
|
|
|
64 |
|
Depreciation and amortization expense |
|
160 |
|
|
|
140 |
|
|
|
469 |
|
|
|
417 |
|
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
Total operating costs and expenses |
|
5,275 |
|
|
|
1,708 |
|
|
|
11,867 |
|
|
|
4,338 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
(299 |
) |
|
|
616 |
|
|
|
618 |
|
|
|
1,838 |
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense) |
|
|
|
|
|
|
|
||||||||
Interest expense, net of capitalized interest |
|
(222 |
) |
|
|
(210 |
) |
|
|
(641 |
) |
|
|
(636 |
) |
Loss on modification or extinguishment of debt |
|
— |
|
|
|
(27 |
) |
|
|
— |
|
|
|
(81 |
) |
Other income, net |
|
7 |
|
|
|
2 |
|
|
|
10 |
|
|
|
2 |
|
Total other expense |
|
(215 |
) |
|
|
(235 |
) |
|
|
(631 |
) |
|
|
(715 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(514 |
) |
|
$ |
381 |
|
|
$ |
(13 |
) |
|
$ |
1,123 |
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net income (loss) per common unit (1) |
$ |
(1.49 |
) |
|
$ |
0.69 |
|
|
$ |
(1.36 |
) |
|
$ |
2.07 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average basic and diluted number of common units outstanding |
|
484.0 |
|
|
|
484.0 |
|
|
|
484.0 |
|
|
|
484.0 |
|
| _________________________ | |||
| (1) Please refer to the Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed with the Securities and Exchange Commission. | |||
Cheniere Energy Partners, L.P. |
|||||||
Consolidated Balance Sheets |
|||||||
(in millions, except unit data) (1) |
|||||||
|
September 30, |
|
December 31, |
||||
|
2022 |
|
2021 |
||||
ASSETS |
(unaudited) |
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
988 |
|
|
$ |
876 |
|
Restricted cash and cash equivalents |
|
195 |
|
|
|
98 |
|
Trade and other receivables, net of current expected credit losses |
|
805 |
|
|
|
580 |
|
Accounts receivable—affiliate |
|
447 |
|
|
|
232 |
|
Accounts receivable—related party |
|
— |
|
|
|
1 |
|
Advances to affiliate |
|
150 |
|
|
|
141 |
|
Inventory |
|
241 |
|
|
|
176 |
|
Current derivative assets |
|
27 |
|
|
|
21 |
|
Margin deposits |
|
59 |
|
|
|
7 |
|
Contract assets |
|
387 |
|
|
|
— |
|
Other current assets |
|
74 |
|
|
|
80 |
|
Total current assets |
|
3,373 |
|
|
|
2,212 |
|
|
|
|
|
||||
Property, plant and equipment, net of accumulated depreciation |
|
16,827 |
|
|
|
16,830 |
|
Operating lease assets |
|
91 |
|
|
|
98 |
|
Debt issuance costs, net of accumulated amortization |
|
9 |
|
|
|
12 |
|
Derivative assets |
|
33 |
|
|
|
33 |
|
Other non-current assets, net |
|
167 |
|
|
|
173 |
|
Total assets |
$ |
20,500 |
|
|
$ |
19,358 |
|
|
|
|
|
||||
LIABILITIES AND PARTNERS’ EQUITY (DEFICIT) |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
31 |
|
|
$ |
21 |
|
Accrued liabilities |
|
1,657 |
|
|
|
1,073 |
|
Accrued liabilities—related party |
|
8 |
|
|
|
4 |
|
Current debt, net of discount and debt issuance costs |
|
1,498 |
|
|
|
— |
|
Due to affiliates |
|
56 |
|
|
|
67 |
|
Deferred revenue |
|
162 |
|
|
|
155 |
|
Deferred revenue—affiliate |
|
1 |
|
|
|
1 |
|
Current operating lease liabilities |
|
9 |
|
|
|
8 |
|
Current derivative liabilities |
|
1,157 |
|
|
|
16 |
|
Other current liabilities |
|
4 |
|
|
|
— |
|
Total current liabilities |
|
4,583 |
|
|
|
1,345 |
|
|
|
|
|
||||
Long-term debt, net of premium, discount and debt issuance costs |
|
15,699 |
|
|
|
17,177 |
|
Operating lease liabilities |
|
82 |
|
|
|
89 |
|
Finance lease liabilities |
|
18 |
|
|
|
— |
|
Derivative liabilities |
|
3,981 |
|
|
|
11 |
|
Other non-current liabilities—affiliate |
|
21 |
|
|
|
18 |
|
|
|
|
|
||||
Partners’ equity (deficit) |
|
|
|
||||
Common unitholders’ interest (484.0 million units issued and outstanding at both September 30, 2022 and December 31, 2021) |
|
(3,059 |
) |
|
|
1,024 |
|
General partner’s interest (2% interest with 9.9 million units issued and outstanding at September 30, 2022 and December 31, 2021) |
|
(825 |
) |
|
|
(306 |
) |
Total partners’ equity (deficit) |
|
(3,884 |
) |
|
|
718 |
|
Total liabilities and partners’ equity (deficit) |
$ |
20,500 |
|
|
$ |
19,358 |
|
| _________________________ | ||||
(1) Please refer to the Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed with the Securities and Exchange Commission. |
||||
Reconciliation of Non-GAAP Measures |
|||||||||||||||
Regulation G Reconciliations |
|||||||||||||||
Adjusted EBITDA |
|||||||||||||||
The following table reconciles our Adjusted EBITDA to U.S. GAAP results for the three and nine months ended September 30, 2022 and 2021 (in millions): |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net income (loss) |
$ |
(514 |
) |
|
$ |
381 |
|
|
$ |
(13 |
) |
|
$ |
1,123 |
|
Interest expense, net of capitalized interest |
|
222 |
|
|
|
210 |
|
|
|
641 |
|
|
|
636 |
|
Loss on modification or extinguishment of debt |
|
— |
|
|
|
27 |
|
|
|
— |
|
|
|
81 |
|
Other income, net |
|
(7 |
) |
|
|
(2 |
) |
|
|
(10 |
) |
|
|
(2 |
) |
Income (loss) from operations |
$ |
(299 |
) |
|
$ |
616 |
|
|
$ |
618 |
|
|
$ |
1,838 |
|
Adjustments to reconcile income from operations to Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization expense |
|
160 |
|
|
|
140 |
|
|
|
469 |
|
|
|
417 |
|
Loss (gain) from changes in fair value of commodity derivatives, net (1) |
|
1,610 |
|
|
|
(18 |
) |
|
|
2,393 |
|
|
|
(54 |
) |
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Adjusted EBITDA |
$ |
1,471 |
|
|
$ |
738 |
|
|
$ |
3,480 |
|
|
$ |
2,207 |
|
| ________________________ | ||||
(1) Change in fair value of commodity derivatives prior to contractual delivery or termination |
||||
Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our Consolidated Financial Statements to assess the financial performance of our assets without regard to financing methods, capital structures, or historical cost basis. Adjusted EBITDA is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.
We believe Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management’s evaluation of financial and operating performance.
Adjusted EBITDA is calculated by taking net income (loss) before interest expense, net of capitalized interest, depreciation and amortization, and adjusting for the effects of certain non-cash items, other non-operating income or expense items and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense and loss on disposal of assets, and changes in the fair value of our commodity derivatives prior to contractual delivery or termination. The change in fair value of commodity derivatives is considered in determining Adjusted EBITDA given that the timing of recognizing gains and losses on these derivative contracts differs from the recognition of the related item economically hedged. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management’s own evaluation of performance.
Cheniere Partners
Investors
Randy Bhatia, 713-375-5479
Frances Smith, 713-375-5753
Media Relations
Eben Burnham-Snyder, 713-375-5764
Phil West, 713-375-5586
LIBERTY LAKE, Wash.--(BUSINESS WIRE)--Itron, Inc. (NASDAQ:ITRI) announced today financial results for its third quarter ended Sept. 30, 2022. Key results for the quarter include (compared with the third quarter of 2021):
"In the third quarter of 2022, we saw continued strong market demand and had another robust quarter of bookings, which pushed our total backlog to new record levels." said Tom Deitrich, Itron's president and chief executive officer. "However, semiconductor supply constraints continued to slow the conversion of backlog into revenue which limited our operating results."
Summary of Third Quarter Consolidated Financial Results
(All comparisons made are against the prior year period unless otherwise noted)
Revenue
Total third quarter revenue decreased 14% to $421 million, or 9%, excluding the impact of changes in foreign currency exchange rates. The decrease was primarily due to the strategic sale and exit of certain product lines in our Device Solutions business, along with the continued impact of component shortages on our Networked Solutions business limiting our ability to meet customer demand.
Device Solutions revenue declined 38%, Networked Solutions revenue decreased 2%, and Outcomes revenue decreased 5% primarily due to the continuing decline of our prepay business in EMEA.
Gross Margin
Consolidated company gross margin of 28.5% increased 80 basis points from the prior year, primarily due to favorable mix, partially offset by inefficiencies related to component shortages.
Operating Expenses and Operating Income (Loss)
GAAP operating expenses of $113 million decreased $18 million from the prior year primarily due to lower sales, general and administrative, and product development expenses. Non-GAAP operating expenses of $105 million decreased $13 million from the prior year primarily due to lower sales, general and administrative, and product development expenses.
GAAP operating income of $7 million was $3 million higher than the prior year primarily due to lower operating expenses, partially offset by lower gross profit. Non-GAAP operating income of $15 million was $2 million lower than prior year.
Net Income (Loss) and Earnings (Loss) per Share
Net income attributable to Itron, Inc. for the quarter was $4 million, or $0.09 per diluted share, compared with a loss of $(2) million, or $(0.04) per share in 2021. The increase was driven by higher GAAP operating income and lower interest and other expense.
Non-GAAP net income, which excludes certain charges including amortization of intangible assets, amortization of debt placement fees, debt extinguishment, restructuring, loss on sale of business, strategic initiatives, currency translation write-off, acquisition and integration, goodwill impairment, and the income tax effect of those adjustments, was $11 million, or $0.23 per diluted share, compared with $9 million, or $0.21 per diluted share, in 2021. The higher year-over-year results were primarily due to lower operating expenses and a lower effective tax rate.
Cash Flow
Net cash provided by operating activities was $15 million in the third quarter compared with $18 million in the same quarter of 2021. Free cash flow was $11 million in the third quarter consistent with prior year.
Other Measures
Total backlog was $4.2 billion and 12-month backlog was $1.6 billion, compared with $3.4 billion and $1.4 billion, respectively, in the prior year. Bookings in the quarter totaled $578 million.
Operational Insights and Q4 2022 Outlook
During the third quarter, we were hampered by unanticipated supplier decommitments, component deliveries below expectations, and the non-linear timing of key components arriving at our factories. While we were receiving more positive signals from suppliers, their deliveries did not meet the promised performance, resulting in lower-than-expected company results.
Recent discussions with key suppliers leave us cautiously optimistic about supply availability improving over time. However, we anticipate this volatile supply environment will continue in the fourth quarter. As a result, we are providing a Q4 2022 revenue and earnings outlook. Our expectations for the fourth quarter of 2022 are revenue in a range of $420 million to $460 million and non-GAAP EPS between $0.00 and $0.15.
Earnings Conference Call
Itron will host a conference call to discuss the financial results and guidance contained in this release at 10 a.m. EDT on Nov. 3, 2022. The call will be webcast in a listen-only mode. Webcast information and conference call materials will be made available 10 minutes before the start of the call and will be accessible on Itron’s website at http://investors.itron.com/events.cfm. A replay of the audio webcast will be made available at http://investors.itron.com/events.cfm. A telephone replay of the conference call will be available through Nov. 8, 2022. To access the telephone replay, dial 888-203-1112 or 719-457-0820 and enter passcode 6390616.
About Itron
Itron® enables utilities and cities to safely, securely and reliably deliver critical infrastructure services 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.
Cautionary Note Regarding Forward Looking Statements
This release contains, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical factors nor assurances of future performance. These statements are based on our expectations about, among others, revenues, operations, financial performance, earnings, liquidity, earnings per share, cash flows and restructuring activities including headcount reductions and other cost savings initiatives. This document reflects our current strategy, plans and expectations and is based on information currently available as of the date of this release. When we use words such as "expect", "intend", "anticipate", "believe", "plan", "goal", "seek", "project", "estimate", "future", "strategy", "objective", "may", "likely", "should", "will", "will continue", and similar expressions, including related to future periods, they are intended to identify forward-looking statements. Forward-looking statements rely on a number of assumptions and estimates. Although we believe the estimates and assumptions upon which these forward-looking statements are based are reasonable, any of these estimates or assumptions could prove to be inaccurate and the forward-looking statements based on these estimates and assumptions could be incorrect. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors. Therefore, you should not rely on any of these forward-looking statements. Some of the factors that we believe could affect our results include our ability to execute on our restructuring plans, our ability to achieve estimated cost savings, the rate and timing of customer demand for our products, rescheduling of current customer orders, changes in estimated liabilities for product warranties, adverse impacts of litigation, changes in laws and regulations, our dependence on new product development and intellectual property, future acquisitions, changes in estimates for stock-based and bonus compensation, increasing volatility in foreign exchange rates, international business risks, uncertainties caused by adverse economic conditions, including, without limitation those resulting from extraordinary events or circumstances such as the COVID-19 pandemic and other factors that are more fully described in Part I, Item 1A: Risk Factors included in our 2021 Annual Report and other reports on file with the Securities and Exchange Commission (SEC). We undertake no obligation to update or revise any forward-looking statement, whether written or oral.
Non-GAAP Financial Information
To supplement our consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States (GAAP), we use certain adjusted or non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share (EPS), adjusted EBITDA, constant currency, and free cash flow. We provide these non-GAAP financial measures because we believe they provide greater transparency and represent supplemental information used by management in its financial and operational decision making. We exclude certain costs in our non-GAAP financial measures as we believe the net result is a measure of our core business. We believe these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Our non-GAAP financial measures may be different from those reported by other companies.
ITRON, INC. |
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
|
|
|
|
||||||||||||
(Unaudited, in thousands, except per share data) |
|
|
|
|||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
2022 |
2021 |
2022 |
2021 |
||||||||||||
Revenues |
|
|
|
|
||||||||||||
Product revenues |
$ |
347,791 |
|
$ |
410,947 |
|
$ |
1,107,499 |
|
$ |
1,265,470 |
|
||||
Service revenues |
|
73,069 |
|
|
76,002 |
|
|
220,574 |
|
|
230,465 |
|
||||
Total revenues |
|
420,860 |
|
|
486,949 |
|
|
1,328,073 |
|
|
1,495,935 |
|
||||
Cost of revenues |
|
|
|
|
||||||||||||
Product cost of revenues |
|
258,541 |
|
|
306,168 |
|
|
818,639 |
|
|
908,923 |
|
||||
Service cost of revenues |
|
42,257 |
|
|
45,818 |
|
|
128,043 |
|
|
135,130 |
|
||||
Total cost of revenues |
|
300,798 |
|
|
351,986 |
|
|
946,682 |
|
|
1,044,053 |
|
||||
Gross profit |
|
120,062 |
|
|
134,963 |
|
|
381,391 |
|
|
451,882 |
|
||||
|
|
|
|
|
||||||||||||
Operating expenses |
|
|
|
|
||||||||||||
Sales, general and administrative |
|
63,446 |
|
|
71,838 |
|
|
212,724 |
|
|
221,974 |
|
||||
Research and development |
|
43,820 |
|
|
46,889 |
|
|
138,471 |
|
|
147,379 |
|
||||
Amortization of intangible assets |
|
6,413 |
|
|
8,944 |
|
|
19,451 |
|
|
26,914 |
|
||||
Restructuring |
|
(1,272 |
) |
|
958 |
|
|
(11,097 |
) |
|
(830 |
) |
||||
Loss on sale of business |
|
767 |
|
|
2,171 |
|
|
3,182 |
|
|
28,274 |
|
||||
Goodwill impairment |
|
— |
|
|
— |
|
|
38,480 |
|
|
— |
|
||||
Total operating expenses |
|
113,174 |
|
|
130,800 |
|
|
401,211 |
|
|
423,711 |
|
||||
|
|
|
|
|
||||||||||||
Operating income (loss) |
|
6,888 |
|
|
4,163 |
|
|
(19,820 |
) |
|
28,171 |
|
||||
Other income (expense) |
|
|
|
|
||||||||||||
Interest income |
|
801 |
|
|
352 |
|
|
1,367 |
|
|
1,326 |
|
||||
Interest expense |
|
(1,679 |
) |
|
(2,628 |
) |
|
(4,931 |
) |
|
(27,107 |
) |
||||
Other income (expense), net |
|
(1,065 |
) |
|
(1,761 |
) |
|
(3,140 |
) |
|
(16,684 |
) |
||||
Total other income (expense) |
|
(1,943 |
) |
|
(4,037 |
) |
|
(6,704 |
) |
|
(42,465 |
) |
||||
|
|
|
|
|
||||||||||||
Income (loss) before income taxes |
|
4,945 |
|
|
126 |
|
|
(26,524 |
) |
|
(14,294 |
) |
||||
Income tax provision |
|
(473 |
) |
|
(1,136 |
) |
|
(4,973 |
) |
|
(5,581 |
) |
||||
Net income (loss) |
|
4,472 |
|
|
(1,010 |
) |
|
(31,497 |
) |
|
(19,875 |
) |
||||
Net income attributable to noncontrolling interests |
|
355 |
|
|
859 |
|
|
447 |
|
|
2,514 |
|
||||
Net income (loss) attributable to Itron, Inc. |
$ |
4,117 |
|
$ |
(1,869 |
) |
$ |
(31,944 |
) |
$ |
(22,389 |
) |
||||
|
|
|
|
|
||||||||||||
Net income (loss) per common share - Basic |
$ |
0.09 |
|
$ |
(0.04 |
) |
$ |
(0.71 |
) |
$ |
(0.51 |
) |
||||
Net income (loss) per common share - Diluted |
$ |
0.09 |
|
$ |
(0.04 |
) |
$ |
(0.71 |
) |
$ |
(0.51 |
) |
||||
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding - Basic |
|
45,139 |
|
|
45,240 |
|
|
45,075 |
|
|
43,983 |
|
||||
Weighted average common shares outstanding - Diluted |
|
45,330 |
|
|
45,240 |
|
|
45,075 |
|
|
43,983 |
|
||||
ITRON, INC. |
||||||||||||||||
SEGMENT INFORMATION |
||||||||||||||||
|
|
|
|
|
||||||||||||
(Unaudited, in thousands) |
|
|
|
|
||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
2022 |
2021 |
2022 |
2021 |
||||||||||||
Product revenues |
|
|
|
|
||||||||||||
Device Solutions |
$ |
92,893 |
|
$ |
149,830 |
|
$ |
334,212 |
|
$ |
480,808 |
|
||||
Networked Solutions |
|
240,498 |
|
|
242,527 |
|
|
731,358 |
|
|
736,397 |
|
||||
Outcomes |
|
14,400 |
|
|
18,590 |
|
|
41,929 |
|
|
48,265 |
|
||||
Total Company |
$ |
347,791 |
|
$ |
410,947 |
|
$ |
1,107,499 |
|
$ |
1,265,470 |
|
||||
|
|
|
|
|
||||||||||||
Service revenues |
|
|
|
|
||||||||||||
Device Solutions |
$ |
1,110 |
|
$ |
2,404 |
|
$ |
4,166 |
|
$ |
7,174 |
|
||||
Networked Solutions |
|
29,374 |
|
|
31,971 |
|
|
86,796 |
|
|
91,473 |
|
||||
Outcomes |
|
42,585 |
|
|
41,627 |
|
|
129,612 |
|
|
131,818 |
|
||||
Total Company |
$ |
73,069 |
|
$ |
76,002 |
|
$ |
220,574 |
|
$ |
230,465 |
|
||||
|
|
|
|
|
||||||||||||
Total revenues |
|
|
|
|
||||||||||||
Device Solutions |
$ |
94,003 |
|
$ |
152,234 |
|
$ |
338,378 |
|
$ |
487,982 |
|
||||
Networked Solutions |
|
269,872 |
|
|
274,498 |
|
|
818,154 |
|
|
827,870 |
|
||||
Outcomes |
|
56,985 |
|
|
60,217 |
|
|
171,541 |
|
|
180,083 |
|
||||
Total Company |
$ |
420,860 |
|
$ |
486,949 |
|
$ |
1,328,073 |
|
$ |
1,495,935 |
|
||||
|
|
|
|
|
||||||||||||
Gross profit |
|
|
|
|
||||||||||||
Device Solutions |
$ |
14,805 |
|
$ |
22,480 |
|
$ |
50,489 |
|
$ |
85,228 |
|
||||
Networked Solutions |
|
81,895 |
|
|
89,915 |
|
|
263,155 |
|
|
298,627 |
|
||||
Outcomes |
|
23,362 |
|
|
22,568 |
|
|
67,747 |
|
|
68,027 |
|
||||
Total Company |
$ |
120,062 |
|
$ |
134,963 |
|
$ |
381,391 |
|
$ |
451,882 |
|
||||
|
|
|
|
|
||||||||||||
Operating income (loss) |
|
|
|
|
||||||||||||
Device Solutions |
$ |
7,066 |
|
$ |
12,095 |
|
$ |
24,103 |
|
$ |
53,784 |
|
||||
Networked Solutions |
|
54,640 |
|
|
61,150 |
|
|
177,929 |
|
|
205,071 |
|
||||
Outcomes |
|
11,339 |
|
|
11,774 |
|
|
28,789 |
|
|
34,647 |
|
||||
Corporate unallocated |
|
(66,157 |
) |
|
(80,856 |
) |
|
(250,641 |
) |
|
(265,331 |
) |
||||
Total Company |
$ |
6,888 |
|
$ |
4,163 |
|
$ |
(19,820 |
) |
$ |
28,171 |
|
||||
ITRON, INC. |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
|
|
|
||||||
(Unaudited, in thousands) |
September 30, 2022 |
December 31, 2021 |
||||||
ASSETS |
|
|
||||||
Current assets |
|
|
||||||
Cash and cash equivalents |
$ |
215,413 |
|
$ |
162,579 |
|
||
Accounts receivable, net |
|
266,669 |
|
|
298,459 |
|
||
Inventories |
|
203,612 |
|
|
165,799 |
|
||
Other current assets |
|
122,948 |
|
|
123,092 |
|
||
Total current assets |
|
808,642 |
|
|
749,929 |
|
||
|
|
|
||||||
Property, plant, and equipment, net |
|
138,768 |
|
|
163,184 |
|
||
Deferred tax assets, net |
|
188,728 |
|
|
181,472 |
|
||
Other long-term assets |
|
44,433 |
|
|
42,178 |
|
||
Operating lease right-of-use assets, net |
|
54,814 |
|
|
65,523 |
|
||
Intangible assets, net |
|
70,346 |
|
|
92,529 |
|
||
Goodwill |
|
1,011,051 |
|
|
1,098,975 |
|
||
Total assets |
$ |
2,316,782 |
|
$ |
2,393,790 |
|
||
|
|
|
||||||
LIABILITIES AND EQUITY |
|
|
||||||
Current liabilities |
|
|
||||||
Accounts payable |
$ |
235,812 |
|
$ |
193,129 |
|
||
Other current liabilities |
|
46,555 |
|
|
81,253 |
|
||
Wages and benefits payable |
|
77,613 |
|
|
113,532 |
|
||
Taxes payable |
|
13,663 |
|
|
12,208 |
|
||
Current portion of warranty |
|
17,943 |
|
|
18,406 |
|
||
Unearned revenue |
|
110,531 |
|
|
82,816 |
|
||
Total current liabilities |
|
502,117 |
|
|
501,344 |
|
||
|
|
|
||||||
Long-term debt, net |
|
451,947 |
|
|
450,228 |
|
||
Long-term warranty |
|
7,515 |
|
|
13,616 |
|
||
Pension benefit obligation |
|
71,111 |
|
|
87,863 |
|
||
Deferred tax liabilities, net |
|
1,723 |
|
|
2,000 |
|
||
Operating lease liabilities |
|
47,147 |
|
|
57,314 |
|
||
Other long-term obligations |
|
118,049 |
|
|
138,666 |
|
||
Total liabilities |
|
1,199,609 |
|
|
1,251,031 |
|
||
|
|
|
||||||
Equity |
|
|
||||||
Common stock |
|
1,783,193 |
|
|
1,779,775 |
|
||
Accumulated other comprehensive loss, net |
|
(141,821 |
) |
|
(148,098 |
) |
||
Accumulated deficit |
|
(547,544 |
) |
|
(515,600 |
) |
||
Total Itron, Inc. shareholders' equity |
|
1,093,828 |
|
|
1,116,077 |
|
||
Noncontrolling interests |
|
23,345 |
|
|
26,682 |
|
||
Total equity |
|
1,117,173 |
|
|
1,142,759 |
|
||
Total liabilities and equity |
$ |
2,316,782 |
|
$ |
2,393,790 |
|
||
ITRON, INC. |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
|
|
||||||
(Unaudited, in thousands) |
Nine Months Ended September 30, |
|||||||
|
2022 |
2021 |
||||||
Operating activities |
|
|
||||||
Net loss |
$ |
(31,497 |
) |
$ |
(19,875 |
) |
||
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
||||||
Depreciation and amortization of intangible assets |
|
50,612 |
|
|
64,252 |
|
||
Non-cash operating lease expense |
|
12,250 |
|
|
12,962 |
|
||
Stock-based compensation |
|
17,416 |
|
|
18,251 |
|
||
Amortization of prepaid debt fees |
|
2,610 |
|
|
17,383 |
|
||
Deferred taxes, net |
|
(6,428 |
) |
|
(5,170 |
) |
||
Loss on sale of business |
|
3,182 |
|
|
28,274 |
|
||
Loss on extinguishment of debt, net |
|
— |
|
|
10,000 |
|
||
Goodwill impairment |
|
38,480 |
|
|
— |
|
||
Restructuring, non-cash |
|
(879 |
) |
|
951 |
|
||
Other adjustments, net |
|
2,148 |
|
|
3,720 |
|
||
Changes in operating assets and liabilities, net of acquisition and sale of business: |
|
|
||||||
Accounts receivable |
|
12,270 |
|
|
40,624 |
|
||
Inventories |
|
(48,377 |
) |
|
2,150 |
|
||
Other current assets |
|
(15,907 |
) |
|
26,072 |
|
||
Other long-term assets |
|
(7,897 |
) |
|
5,058 |
|
||
Accounts payable, other current liabilities, and taxes payable |
|
42,550 |
|
|
(27,124 |
) |
||
Wages and benefits payable |
|
(30,877 |
) |
|
14,110 |
|
||
Unearned revenue |
|
32,151 |
|
|
(13,158 |
) |
||
Warranty |
|
(5,031 |
) |
|
(5,969 |
) |
||
Other operating, net |
|
(29,246 |
) |
|
(31,364 |
) |
||
Net cash provided by operating activities |
|
37,530 |
|
|
141,147 |
|
||
|
|
|
||||||
Investing activities |
|
|
||||||
Net proceeds related to the sale of business |
|
55,933 |
|
|
3,142 |
|
||
Acquisitions of property, plant, and equipment |
|
(14,886 |
) |
|
(27,781 |
) |
||
Business acquisitions, net of cash and cash equivalents acquired |
|
23 |
|
|
— |
|
||
Other investing, net |
|
2,424 |
|
|
2,820 |
|
||
Net cash provided by (used in) investing activities |
|
43,494 |
|
|
(21,819 |
) |
||
|
|
|
||||||
Financing activities |
|
|
||||||
Proceeds from borrowings |
|
— |
|
|
460,000 |
|
||
Payments on debt |
|
— |
|
|
(946,094 |
) |
||
Issuance of common stock |
|
2,631 |
|
|
4,351 |
|
||
Proceeds from common stock offering |
|
— |
|
|
389,419 |
|
||
Proceeds from sale of warrants |
|
— |
|
|
45,349 |
|
||
Purchases of convertible note hedge contracts |
|
— |
|
|
(84,139 |
) |
||
Repurchase of common stock |
|
(16,972 |
) |
|
— |
|
||
Prepaid debt fees |
|
(697 |
) |
|
(12,021 |
) |
||
Other financing, net |
|
(4,358 |
) |
|
6,327 |
|
||
Net cash used in financing activities |
|
(19,396 |
) |
|
(136,808 |
) |
||
|
|
|
||||||
Effect of foreign exchange rate changes on cash and cash equivalents |
|
(8,794 |
) |
|
(762 |
) |
||
Increase (decrease) in cash and cash equivalents |
|
52,834 |
|
|
(18,242 |
) |
||
Cash and cash equivalents at beginning of period |
|
162,579 |
|
|
206,933 |
|
||
Cash and cash equivalents at end of period |
$ |
215,413 |
|
$ |
188,691 |
|
||
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared in accordance with GAAP, we use certain non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA, free cash flow, and constant currency. The presentation of this 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, and other companies may define such measures differently. For a reconciliation of each non-GAAP measure to the most comparable financial measure prepared and presented in accordance with GAAP, please see the table captioned Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures.
We use these non-GAAP financial measures for financial and operational decision making and/or as a means for determining executive compensation. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and ability to service debt by excluding certain expenses that may not be indicative of our recurring core operating results. These non-GAAP financial measures facilitate management's internal comparisons to our historical performance, as well as comparisons to our competitors' operating results. Our executive compensation plans exclude non-cash charges related to amortization of intangibles and certain discrete cash and non-cash charges, such as acquisition and integration related expenses, loss on sale of business, strategic initiative expenses, Russian currency translation write-off, goodwill impairment, or restructuring charges. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because they provide greater transparency with respect to key metrics used by management in its financial and operational decision making and because they are used by our institutional investors and the analyst community to analyze the health of our business.
Non-GAAP operating expenses and non-GAAP operating income – We define non-GAAP operating expenses as operating expenses excluding certain expenses related to the amortization of intangible assets, restructuring, loss on sale of business, strategic initiative, Russian currency translation write-off, goodwill impairment, and acquisition and integration. We define non-GAAP operating income as operating income excluding the expenses related to the amortization of intangible assets, restructuring, loss on sale of business, strategic initiative, Russian currency translation write-off, goodwill impairment, and acquisition and integration. Acquisition and integration related expenses include costs, which are incurred to affect and integrate business combinations, such as professional fees, certain employee retention and salaries related to integration, severances, contract terminations, travel costs related to knowledge transfer, system conversion costs, and asset impairment charges. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of expenses that are related to acquisitions and restructuring projects. By excluding these expenses, we believe that it is easier for management and investors to compare our financial results over multiple periods and analyze trends in our operations. For example, in certain periods, expenses related to amortization of intangible assets may decrease, which would improve GAAP operating margins, yet the improvement in GAAP operating margins due to this lower expense is not necessarily reflective of an improvement in our core business. There are some limitations related to the use of non-GAAP operating expenses and non-GAAP operating income versus operating expenses and operating income calculated in accordance with GAAP. We compensate for these limitations by providing specific information about the GAAP amounts excluded from non-GAAP operating expense and non-GAAP operating income and evaluating non-GAAP operating expense and non-GAAP operating income together with GAAP operating expense and operating income.
Non-GAAP net income and non-GAAP diluted EPS – We define non-GAAP net income as net income (loss) attributable to Itron, Inc. excluding the expenses associated with amortization of intangible assets, amortization of debt placement fees, debt extinguishment, restructuring, loss on sale of business, strategic initiative, Russian currency translation write-off, acquisition and integration, goodwill impairment, and the tax effect of excluding these expenses.
For additional information, contact:
Itron, Inc.
Kenneth P. Gianella
Vice President, Investor Relations
(669) 770-4643
David Means
Director, Investor Relations
(737) 242-8448
Critical to one of the world’s largest solar array assemblies, the solar panels will enable NASA’s Gateway lunar space station to be the most powerful electric propulsion spacecraft ever flown.
ALBUQUERQUE, N.M.--(BUSINESS WIRE)--Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a leading launch and space systems company, has delivered the final solar panels to Maxar that will fly on the Power and Propulsion Element (PPE) for NASA’s Gateway lunar space station.
SolAero Technologies Inc, a leading space solar power provider acquired by Rocket Lab, was awarded the contract in 2019 from Maxar to design and manufacture the solar panels that will supply nearly 70 kilowatts of electrical power to Gateway, an essential element of NASA’s Artemis missions that will land the first woman and first person of color on the surface of the Moon.
Gateway is an international collaboration to establish humanity’s first space station in lunar orbit supporting sustained crewed and uncrewed deep space exploration and research, and helping pave the way to Mars. The orbiting outpost will include docking ports for a variety of spacecraft, space for crew to live and work, and on-board science investigations to study heliophysics, human health, and life sciences. The PPE is a high-power, solar electric propulsion spacecraft that will provide power, high-rate communications, altitude control, and orbital transfer capabilities.
The solar panels incorporate Rocket Lab’s quadruple-junction “Z4J” solar cells and utilize automated assembly methods pioneered by the Company’s Albuquerque-based team for high-volume production of satellite solar panels. The Z4J solar cells exhibit 30.0% minimum average conversion efficiency at beginning-of-life (BOL) and superior radiation hardness and temperature performance when compared to other Germanium-based solar cells.
“We are proud to have delivered the final modules to our partners at Maxar for assembly of the Roll Out Solar Array by Deployable Space Systems,” said Brad Clevenger, Rocket Lab’s Vice President & General Manager, Space Systems Power Solutions. “It is an honor for us to be providing such a critical component to Gateway and be part of humanity’s first space station in lunar orbit.”
“The delivery of these solar modules is another feather in our cap to support the Artemis program,” said Peter Beck, Rocket Lab founder and CEO. “In addition to being an integral part of powering the Power and Propulsion Element, Rocket Lab will also provide the power to the Orion spacecraft that will carry astronauts from Earth to lunar orbit, and this comes off the back of our recent successful launch of the CAPSTONE spacecraft, a pathfinder satellite for NASA that is designed to test the same orbit intended for Gateway.”
+ ABOUT Rocket Lab
Founded in 2006, Rocket Lab is an end-to-end space company with an established track record of mission success. We deliver reliable launch services, spacecraft components, satellites and other spacecraft and on-orbit management solutions that make it faster, easier and more affordable to access space. Headquartered in Long Beach, California, Rocket Lab designs and manufactures the Electron small orbital launch vehicle and the Photon satellite platform and is developing the large Neutron launch vehicle. Since its first orbital launch in January 2018, Rocket Lab’s Electron launch vehicle has become the second most frequently launched U.S. rocket annually and has delivered 151 satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. Rocket Lab’s Photon spacecraft platform has been selected to support NASA missions to the Moon and Mars, as well as the first private commercial mission to Venus. Rocket Lab has three launch pads at two launch sites, including two launch pads at a private orbital launch site located in New Zealand, and a second launch site in Virginia, USA which is expected to become operational in 2022. To learn more, visit www.rocketlabusa.com.
+ Rocket Lab Media Contact
Michael Atchue
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+1 714-613-2072
ALMATY, Kazakhstan--(BUSINESS WIRE)--The Eurasian Development Bank (EDB) held consultations with the Asian Development Bank (ADB) on cooperation in energy and infrastructure projects in Central Asia and Armenia. The EDB also discussed with Export-Import Bank of India (EXIM) the scope for using national currencies in international settlements.
Nikolai Podguzov, Chairman of the EDB Management Board, and Shixin Chen, Vice President of the ADB, met in Manila, Philippines, to discuss cooperation on the sidelines of the 45th Annual Meeting of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP).
Nikolai Podguzov highlighted the Bank's experience in implementing common projects with multilateral development institutions. The ADB operates in four of the six EDB member countries: Armenia, Kazakhstan, Kyrgyzstan and Tajikistan.
“We look forward to opportunities to work together with multilateral development banks to support infrastructure projects in Central Asia and Armenia. Given the ADB’s experience and expertise, and the EDB’s experience in working on significant infrastructure projects in cooperation with multilateral development institutions, we would like to propose that we participate in syndicated financing for energy and infrastructure projects,” said Nikolai Podguzov.
During the meeting, the ADB expressed interest in exploring further the implementation of the EDB’s key investment mega-projects such as the Eurasian Commodity Distribution Network and the Eurasian Transport Network, which includes the international North–South and Europe–Western China transport corridors.
The delegations noted that the financial institutions have similar targets for the next strategic period to promote the sustainable development of their member countries and to increase the share of ESG projects in their investment portfolios.
“Our institutions could cooperate in a number of areas that have a major impact on the development of the Eurasian countries. These include climate change and a green economy as well as fostering sustainable, balanced and inclusive growth and the development of entrepreneurship and the private sector. We believe that the priority areas for cooperation are the joint implementation of sustainable development projects in the fields of renewable energy, energy efficiency, infrastructure, and water management. Other significant activities include consultations, experience sharing and joint research,” Nikolai Podguzov added.
Separately, Nikolai Podguzov met Shri Ramesh, Deputy Managing Director of India EXIM Bank, on the sidelines of the ADFIAP meeting. The parties discussed the potential use of national currencies in international settlements as well as financial mechanisms to support exports and imports of the EDB’s member countries. Another item on the agenda was the research conducted by the two institutes and the possibility of launching joint studies.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution investing in Eurasia. For more than 16 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
The EDB Media Centre:
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.eabr.org
DENVER--(BUSINESS WIRE)--The Colorado Oil and Gas Conservation Commission (COGCC) today approved Civitas Resources, Inc.’s (NYSE: CIVI) Box Elder Comprehensive Area Plan (CAP), making it Colorado’s first CAP approved with preliminary siting. The CAP framework helps identify and progress a more holistic approach to development plans that enables minimization of traffic, surface impacts, time on-site and emissions.
“The approval of the Box Elder CAP illustrates Civitas’ efforts to employ best in class technology to minimize our footprint and serve as a leader in reducing impacts associated with energy development,” Civitas President and Chief Executive Officer Chris Doyle said. “This is the culmination of years of work with regulators, stakeholders and Aurora community members to deliver a project that meets our shared values and objectives.”
For more information on the Box Elder Comprehensive Area Plan, interested persons can visit https://www.civitascommunityrelations.com/box-elder-cap.
About Civitas Resources, Inc.
Civitas Resources, Inc. is Colorado’s first carbon neutral oil and gas producer and is focused on developing and producing crude oil, natural gas, and natural gas liquids in Colorado’s Denver-Julesburg Basin. The Company is committed to pursuing compelling economic returns and cash flow while delivering best-in-class cost leadership and capital efficiency. Civitas is dedicated to safety, environmental responsibility, and implementing industry leading practices to create a positive local impact. For more information about Civitas, please visit www.civiresources.com.
Forward-Looking Statements and Cautionary Statements
Certain statements in this press release concerning future opportunities for Civitas, future financial performance and condition, guidance and any other statements regarding Civitas’ future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts are “forward-looking” statements based on assumptions currently believed to be valid. Forward-looking statements are all statements other than statements of historical facts. The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “estimate,” “probable,” “project,” “forecasts,” “predict,” “outlook,” “aim,” “will,” “could,” “should,” “would,” “potential,” “may,” “might,” “anticipate,” “likely” “plan,” “positioned,” “strategy,” and similar expressions or other words of similar meaning, and the negatives thereof, are intended to identify forward-looking statements. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those anticipated, including, but not limited to, the ultimate timing, outcome and results of integrating the legacy operations of Civitas; changes in capital markets and the ability of Civitas to finance operations in the manner expected; the effects of commodity prices; the risks of oil and gas activities; and the fact that operating costs and business disruption may be greater than expected. Additionally, risks and uncertainties that could cause actual results to differ materially from those anticipated also include: declines or volatility in the prices we receive for our oil, natural gas, and natural gas liquids; general economic conditions, whether internationally, nationally or in the regional and local market areas in which we do business, including any future economic downturn, the impact of inflation, disruption in the financial markets and the availability of credit; the effects of disruption of our operations or excess supply of oil and natural gas due to world health events, including the COVID-19 pandemic and the actions by certain oil and natural gas producing countries; the continuing effects of the COVID-19 pandemic, including any recurrence or the worsening thereof; the ability of our customers to meet their obligations to us; our access to capital; our ability to generate sufficient cash flow from operations, borrowings, or other sources to enable us to fully develop our undeveloped acreage positions; the presence or recoverability of estimated oil and natural gas reserves and the actual future sales volume rates and associated costs; uncertainties associated with estimates of proved oil and gas reserves; the possibility that the industry may be subject to future local, state, and federal regulatory or legislative actions (including additional taxes and changes in environmental regulation); environmental risks; seasonal weather conditions; lease stipulations; drilling and operating risks, including the risks associated with the employment of horizontal drilling and completion techniques; our ability to acquire adequate supplies of water for drilling and completion operations; availability of oilfield equipment, services, and personnel; exploration and development risks; operational interruption of centralized oil and natural gas processing facilities; competition in the oil and natural gas industry; management’s ability to execute our plans to meet our goals; our ability to attract and retain key members of our senior management and key technical employees; our ability to maintain effective internal controls; access to adequate gathering systems and pipeline take-away capacity; our ability to secure adequate processing capacity for natural gas we produce, to secure adequate transportation for oil, natural gas, and natural gas liquids we produce, and to sell the oil, natural gas, and natural gas liquids at market prices; costs and other risks associated with perfecting title for mineral rights in some of our properties; political conditions in or affecting other producing countries, including conflicts in or relating to the Middle East, South America, and Russia (including the current events involving Russia and Ukraine), and other sustained military campaigns or acts of terrorism or sabotage; and other economic, competitive, governmental, legislative, regulatory, geopolitical, and technological factors that may negatively impact our businesses, operations, or pricing. Expectations regarding business outlook, including changes in revenue, pricing, capital expenditures, cash flow generation, strategies for our operations, oil and natural gas market conditions, legal, economic and regulatory conditions, and environmental matters are only forecasts regarding these matters.
Additional information concerning other risk factors is also contained in Civitas’ most recently filed Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other Securities and Exchange Commission (“SEC”) filings. Civitas undertakes no duty to publicly update these statements except as required by law.
Investor Relations:
John Wren, This email address is being protected from spambots. You need JavaScript enabled to view it.
Media:
Rich Coolidge, This email address is being protected from spambots. You need JavaScript enabled to view it.
The Women In Trucking Association honors Booster for its ongoing commitment to advancing diversity and expanding the employment of women in trucking
SAN MATEO, Calif.--(BUSINESS WIRE)--#DEIB--Booster®, a leading tech-driven mobile energy delivery company, is honored to announce that it has been recognized as a “Top Company for Women to Work For in Transportation” by the Women In Trucking (WIT) Association.
The annual WIT award honors companies that are focused on attracting and retaining women in the trucking industry, while also demonstrating a commitment to continually improving their work environments. This marks the second time Booster has been recognized for actively supporting gender diversity; the company was also honored in 2019.
“A company’s strengths lie in its ability to encourage diversity – across genders, perspectives, backgrounds and cultures – to build a welcoming and inclusive workplace,” said Booster CEO and founder Frank Mycroft. “We are honored by this award from Women in Trucking, but even more so, we are honored to be considered a place where women feel seen, heard and respected in what is a traditionally male-dominated field.”
The award comes on the heels of last month’s announcement that Booster was selected as a 2022 “Best Tech for Good” Finalist for leveraging technology to help their communities adapt, improve, and grow. Earlier this year, the company was named one of America's Best Startup Employers by Forbes in recognition of its commitment to maintaining a good reputation, investing in employee satisfaction, and pursuing steady growth.
WIT focused on several key criteria when selecting the companies for this year’s list, including: a corporate culture that fosters gender diversity; competitive compensation and benefits; flexible hours and work requirements; professional development opportunities and career advancement opportunities. Booster’s selection was validated by an industry-wide vote involving more than 22,000 professionals in transportation.
The award reflects Booster’s commitment to diversity; 16% of the company’s CDL drivers (which the company calls “Service Professionals,” or SPs) are women, double the industry average of 7.8%, according to Women in Trucking. The company is also committed to internal mobility; as of today, 47% of its SPs have been promoted into higher-level positions.
All of Booster’s SPs are fuel-delivery licensed and certified. For aspiring drivers with CDLs interested in joining Booster’s team, Booster offers paid training as part of its apprenticeship program, and reimburses drivers for the cost of obtaining their tanker and hazmat endorsements.
For unlicensed new hires, the company offers a paid, in-house training program called CDL Academy to help trainees gain the necessary certifications while training to work as an SP. The program is currently offered in six markets – Boston; Nashville; Orange County, California; Portland, Oregon; the San Francisco Bay Area; and Seattle.
All SPs are considered full-time employees, and are offered competitive benefits including 401(k), 100% company-paid medical, dental and vision, and other benefits that include parenthood/fertility support, Modern Health mental health support, and early equity opportunities in the company.
“The ‘Top Companies for Women to Work For in Transportation' is a recognition program that acknowledges organizations who embrace gender diversity as part of their business strategy,” said Brian Everett, group publisher and editorial director of Redefining the Road, the official magazine of WIT. “Booster is among those who made the list in 2022, partially because we were impressed with the fact that 16% of Booster’s drivers are women and that their drivers can grow into manager or engineer roles. Promoting from within is key to their growth and success.”
Editor’s Notes
About Booster
Booster is a tech-driven mobile energy delivery company on a mission to fuel the energy transition. Headquartered in San Mateo, California, Booster delivers conventional and renewable fuels directly to fleet vehicles nationwide, lowering carbon emissions, reducing costs, and providing access to renewable fuels. At a time when the urgent desire to transition to a more sustainable energy future is far outpacing the development of infrastructure, Booster provides a critical solution for Amazon, Imperfect Foods, UPS, and hundreds of other customers — no filling stations, truck stops, or off-route trips required. For more information, visit boosterusa.com or connect with us on LinkedIn, Twitter, Facebook, and Instagram.
Melina Vissat, Senior Director of Communications
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Grace Dearnley, Communications Manager
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Media Hotline: 408-560-7434
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