News & Updates

Search By Tags:

All
News

Sort By:

Aemetis Signs Agreement with $2 Billion Global Construction Firm CTCI to Provide Engineering for its Carbon Zero Renewable Jet and Diesel Plant

Aemetis Signs Agreement with $2 Billion Global Construction Firm CTCI to Provide Engineering for its Carbon Zero Renewable Jet and Diesel Plant CTCI America to provide proven expertise and engineering services at the Aemetis Carbon Zero plant in Riverbank, California CUPERTINO, CA, Oct. 28, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas (RNG) and renewable fuels company focused on negative carbon intensity products, announced today it entered into an agreement with engineering and construction firm CTCI America to conduct permitting and engineering work for the Carbon Zero renewable jet/diesel plant to be built in Riverbank, California. CTCI America is a subsidiary of CTCI Corp., a $2 billion revenues Engineering, Procurement and Construction firm with extensive high technology and energy industry project engineering and construction experience. The Aemetis Carbon Zero plant is being developed at a former U.S. Army ammunition production facility. The process design uses waste wood to produce cellulosic hydrogen with a below zero carbon intensity, which is combined with renewable oils and zero carbon intensity hydroelectric electricity to produce sustainable aviation fuel (SAF) and renewable diesel. The plant will have an initial capacity of 45 million gallons per year, with engineering and other development work underway for expansion to 90 million gallons per year. "As we complete the permitting and engineering for the Riverbank renewable jet/diesel plant, we are fortunate to have built a team of engineers and construction companies with experience in building renewable diesel plants in California," said Eric McAfee, Chairman and CEO of Aemetis. "There are a limited number of firms with an ability to execute on large scale renewable fuels projects within California's environmental requirements. We are pleased to be able to work with a world-class firm such as CTCI to provide engineering for permitting and construction." "CTCI brings extensive relevant experience to the Aemetis sustainable aviation fuel and renewable diesel plant," stated Patrick Jameson, President of CTCI America. "We are currently the EPC constructing a renewable diesel plant in California. We look forward to working with Aemetis for engineering and construction of the Carbon Zero plant." Aemetis recently signed an agreement with Delta Air Lines to supply 250 million gallons of blended Sustainable Aviation Fuel under a 10-year supply agreement that will generate an estimated $1 billion of revenues. About Aemetis Aemetis has a mission to transform renewable energy with below zero carbon intensity transportation fuels. Aemetis has launched the Carbon Zero production process to decarbonize the transportation sector using today's infrastructure. Aemetis Carbon Zero products include zero carbon fuels that can "drop in" to be used in airplane, truck, and ship fleets. Aemetis low-carbon fuels have substantially reduced carbon intensity compared to standard petroleum fossil-based fuels across their lifecycle. Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. Founded in 2006, Aemetis has completed Phase 1 and is expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas. Aemetis owns and operates a 65 million gallon per year ethanol production facility in California's Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis also owns and operates a 50 million gallon per year production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe. Aemetis is developing the Carbon Zero sustainable aviation fuel (SAF) and renewable diesel fuel biorefineries in California to utilize distillers corn oil and other renewable oils to produce low carbon intensity renewable jet and diesel fuel using cellulosic hydrogen from waste orchard and forest wood, while pre-extracting cellulosic sugars from the waste wood to be processed into high value cellulosic ethanol at the Keyes plant. Aemetis holds a portfolio of patents and exclusive technology licenses to produce renewable fuels and biochemicals. For additional information about Aemetis, please visit www.aemetis.com. Safe Harbor Statement This news release contains forward-looking statements, including statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements relating to our ability to commercialize and scale the licensed patented technology, the ability to obtain sufficiently low Carbon Intensity score to achieve below zero transportation fuel, the development of the Carbon Zero Project, the development of the Carbon Sequestration Project and the ability to access the funding required to execute on the plant construction and operations. Words or phrases such as "anticipates," "may," "will," "should," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "showing signs," "targets," "view," "will likely result," "will continue" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties. Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020 and in our subsequent filings with the SEC. Risks and uncertainties with respect to any forward-looking statements regarding Delta and its business include, but are not limited to, those described in Delta's filings with the Securities and Exchange Commission, including in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021. We and Delta are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws. External Investor Relations Contact: Kirin Smith PCG Advisory Group (646) 863-6519 ksmith@pcgadvisory.com Company Investor Relations/ Media Contact: Todd Waltz (408) 213-0940 investors@aemetis.com

Tags:
News

Chesapeake Energy Corporation Selects Nabors Industries as Preferred Drilling Contractor

Chesapeake Energy Corporation Selects Nabors Industries as Preferred Drilling ContractorIndustry leaders align to innovate and accelerate the deployment of technology to drive the next wave of operational safety, efficiency and environmental performance gains OKLAHOMA CITY and HAMILTON, Bermuda, Oct. 28, 2021 /PRNewswire/ -- Chesapeake Energy Corporation (NASDAQ:CHK) and Nabors Industries Ltd. (NYSE: NBR) today announced they will enter into a contractual agreement, establishing Nabors as the new preferred drilling contractor for Chesapeake across its unconventional oil and natural gas assets in the United States. Both companies have contributed significantly to advancing the industry's digital maturity, well planning, drilling automation, remote operations, performance monitoring and data analysis and reporting. Now Chesapeake and Nabors are teaming up to further enhance drilling performance and to forge the next generation of technologies today. Roi Lam, Chesapeake's Vice President - Drilling, said, "Operating safely, efficiently, and responsibly is core to Chesapeake's commitment to leading a responsible energy future, and we look forward to partnering with Nabors to drive further improvements across our drilling program." Anthony G. Petrello, Nabors Chairman, CEO and President, said, "We aim to innovate the future of energy and it is through relationships and collaborations that we will achieve our ambition. We are excited to work alongside Chesapeake to achieve their technology goals. We will continue to push the envelope and develop new solutions that further empower real-time decisions aimed at improving safety, efficiency and our customers' environmental footprint." About Chesapeake Headquartered in Oklahoma City, Chesapeake Energy Corporation's (NASDAQ: CHK) operations are focused on discovering and developing its large and geographically diverse resource base of unconventional oil and natural gas assets onshore in the United States. Investor Contact: Brad Sylvester, CFA(405) 935-8870ir@chk.com Media Contact: Gordon Pennoyer(405) 935-8878media@chk.com About Nabors Industries Nabors Industries is a leading provider of advanced technology for the energy industry. With operations in approximately 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and sustainable energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower carbon world. Learn more about Nabors and its 100-year history of energy technology leadership. Investor Contacts: William C. Conroy+1 281-775-2423william.conroy@nabors.com Kara Peak+1 281-775-4954kara.peak@nabors.com Media Contact: Brian Brooks+1 281-775-4370brian.brooks@nabors.com View original content:https://www.prnewswire.com/news-releases/chesapeake-energy-corporation-selects-nabors-industries-as-preferred-drilling-contractor-301410763.html SOURCE Nabors Industries Ltd.

Tags:
News

PBF Energy Announces Third Quarter 2021 Results

PBF Energy Announces Third Quarter 2021 Results- Third quarter income from operations of $100.9 million (excluding special items, third quarter income from operations of $101.0 million)- Repurchased a combined $229 million of principal amount of unsecured notes, a 13% reduction of the total PBF Holding unsecured notes outstanding- Year-to-date consolidated debt reduced by over $300 million through note repurchases and continued deleveraging at PBF Logistics LP- Third quarter consolidated ending cash balance of approximately $1.5 billion PARSIPPANY, N.J., Oct. 28, 2021 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) today reported third quarter 2021 income from operations of $100.9 million as compared to loss from operations of $342.7 million for the third quarter of 2020. Excluding special items, third quarter 2021 income from operations was $101.0 million as compared to a loss from operations of $374.2 million for the third quarter of 2020. PBF Energy's financial results reflect the consolidation of PBF Logistics LP (NYSE: PBFX), a master limited partnership of which PBF Energy indirectly owns the general partner and approximately 48% of the limited partner interests as of quarter-end. The company reported third quarter 2021 net income of $78.7 million and net income attributable to PBF Energy Inc. of $59.1 million or $0.49 per share. This compares to net loss of $397.8 million, and net loss attributable to PBF Energy Inc. of $417.2 million or $(3.49) per share for the third quarter 2020. Non-cash special items included in the third quarter 2021 results, which increased net income by a net, after-tax benefit of $45.6 million, or $0.37 per share, consisted of a gain on extinguishment of debt related to the repurchase of a portion of the outstanding unsecured notes, a net tax benefit on remeasurement of deferred tax assets, and change in fair value of the contingent consideration associated with earn-out provisions related to both the Martinez Acquisition and PBFX CPI Operations LLC acquisition. Adjusted fully-converted net income for the third quarter 2021, excluding special items, was $14.0 million, or $0.12 per share on a fully-exchanged, fully-diluted basis, as described below, compared to adjusted fully-converted net loss of $346.6 million or $(2.87) per share, for the third quarter 2020. Tom Nimbley, PBF Energy's Chairman and CEO, said, "PBF's third quarter results reflect both the improving demand environment, as well as the continuing challenges facing our industry. During the quarter we successfully executed a significant turnaround at Torrance, conducted unplanned maintenance at Toledo and managed to navigate the turmoil delivered by Hurricane Ida on the Gulf Coast. Our Chalmette refining team safely brought the refinery down in advance of the storm. As a result, we experienced very little damage and were able to quickly resume operations after restoring power to the plant. We are very proud of the way our Chalmette team performed, even as many employees were dealing with their own storm-related hardships." Mr. Nimbley remarked, "Demand has continued its gradual improvement and is at or above pre-pandemic levels for certain products. With improving demand and the call for more energy globally, we expect incremental crude supply to enter the market and support wider differentials. Despite the improving fundamental backdrop, we continue to be battered by the persistent waffling of the Environmental Protection Agency and never-ending delays in addressing the broken RFS program. These delays are causing economic harm to independent refiners, jeopardizing jobs, creating uncertainty in the market and are penalizing consumers at the pump by supporting high gasoline prices." Mr. Nimbley concluded, "Despite these recent challenges, we are confident that we have the operations, team and resources to overcome the current hurdles. We exited the third quarter with reduced debt and ample liquidity, including approximately $1.5 billion in cash, that we believe will support our business as market conditions improve." Liquidity and Financial PositionAs of September 30, 2021, our operational liquidity was more than $2.6 billion based on approximately $1.4 billion of cash and in excess of $1.2 billion of borrowing availability under our asset-based lending facility. In addition, PBF Logistics LP liquidity included $28.6 million in cash and approximately $371.0 million of availability under its revolving credit facility. In the second half of the year, the company repurchased a combined total principal amount of approximately $229.0 million of its 2028 6.00% Senior Notes and 2025 7.25% Senior Notes for an aggregate cash amount of approximately $146.8 million. Combined with the $75.0 million of debt repayments made by PBF Logistics LP, consolidated debt for PBF has been reduced by approximately $304.0 million. Strategic Update and OutlookIn addition to focusing on the safety and reliability of our core refining operations, we continue to progress the previously announced potential project for a renewable fuels production facility intended to be co-located at the Chalmette refinery. The project is expected to use certain idled assets, including an idle hydrocracker, along with a newly-constructed pre-treatment unit to establish a 20,000 barrel per day renewable diesel production facility. On August 5, 2021, it was announced that PBF selected Honeywell UOP single-stage EcofiningTM technology for use in the potential project. We are currently in advanced discussions with additional potential strategic and financial partners. Consistent with our previous guidance, and the improving market outlook, our full-year capital expenditures are expected to be approximately $400 to $450 million. Should market conditions change from our current expectations, we expect that we will review our capital requirements and adjust as needed. With demand for our products continuing to gradually improve, we expect to remain responsive to market conditions and for the fourth quarter, we expect total throughput regionally as follows: East Coast to average 250,000 to 270,000 barrels per day ("bpd"); Mid-Continent to average 150,000 to 160,000 bpd; Gulf Coast to average 170,000 to 180,000 bpd; and West Coast to average 310,000 to 330,000 bpd. The throughput figures are reflective of planned work expected to take place during the quarter at our Martinez and East Coast facilities. Adjusted Fully-Converted ResultsAdjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision. Non-GAAP Measures This earnings release, and the discussion during the management conference call, may include references to Non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income (Loss), Adjusted Fully-Converted Net Income (Loss) excluding special items, Adjusted Fully-Converted Net Income (Loss) per fully-exchanged, fully-diluted share, Income (Loss) from operations excluding special items, gross refining margin, gross refining margin excluding special items, gross refining margin per barrel of throughput, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization), EBITDA excluding special items and Adjusted EBITDA. PBF believes that Non-GAAP financial measures provide useful information about its operating performance and financial results. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBF's Non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the Non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures. Conference Call InformationPBF Energy's senior management will host a conference call and webcast regarding quarterly results and other business matters on Thursday, October 28, 2021, at 8:30 a.m. ET. The call is being webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com. The call can also be accessed by dialing (877) 869-3847 or (201) 689-8261. The audio replay will be available approximately two hours after the end of the call and will be available through the company's website. Forward-Looking StatementsStatements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC, as well as the risks disclosed in PBF Logistics LP's SEC filings and any impact PBF Logistics LP may have on the company's credit rating, cost of funds, employees, customers and vendors; risk relating to the securities markets generally; risks associated with the East Coast refining reconfiguration and the acquisition of the Martinez refinery, and related logistics assets; risks associated with our obligation to buy Renewable Identification Numbers and related market risks related to the price volatility thereof; our ability to make, and realize the benefits from, acquisitions or investments, including in renewable diesel productions; the effect of the COVID-19 pandemic and related governmental and consumer responses; our expectations regarding capital spending and the impact of market conditions on demand for the balance of 2021; and the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law. About PBF Energy Inc.PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors. PBF Energy Inc. also currently indirectly owns the general partner and approximately 48% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX). EARNINGS RELEASE TABLES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in millions, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenues $ 7,186.7 $ 3,667.5 $ 19,009.4 $ 11,460.8 Cost and expenses: Cost of products and other 6,374.7 3,378.6 16,666.4 11,095.0 Operating expenses (excluding depreciation and amortization expense as reflected below) 530.5 471.9 1,495.6 1,445.7 Depreciation and amortization expense 112.8 130.3 338.5 369.3 Cost of sales 7,018.0 3,980.8 18,500.5 12,910.0 General and administrative expenses (excluding depreciation and amortization expense as reflected below) 64.1 46.6 166.9 187.0 Depreciation and amortization expense 3.4 2.7 10.1 8.4 Change in fair value of contingent consideration 0.1 (28.6) 26.2 (93.5) Impairment expense - 7.0 - 7.0 Loss (gain) on sale of assets 0.2 1.7 (0.4) (469.4) Total cost and expenses 7,085.8 4,010.2 18,703.3 12,549.5 Income (loss) from operations 100.9 (342.7) 306.1 (1,088.7) Other income (expense): Interest expense, net (82.0) (70.4) (243.1) (185.1) Change in Tax Receivable Agreement liability - 252.2 - 240.6 Change in fair value of catalyst obligations 17.8 (2.4) 13.6 4.2 Gain (loss) on extinguishment of debt 60.3 - 60.3 (22.2) Other non-service components of net periodic benefit cost 2.0 1.1 5.9 3.2 Income (loss) before income taxes 99.0 (162.2) 142.8 (1,048.0) Income tax expense (benefit) 20.3 235.6 16.4 (0.7) Net income (loss) 78.7 (397.8) 126.4 (1,047.3) Less: net income attributable to noncontrolling interests 19.6 19.4 60.7 46.7 Net income (loss) attributable to PBF Energy Inc. stockholders $ 59.1 $ (417.2) $ 65.7 $ (1,094.0) Net income (loss) available to Class A common stock per share: Basic $ 0.49 $ (3.49) $ 0.55 $ (9.15) Diluted $ 0.49 $ (3.49) $ 0.54 $ (9.15) Weighted-average shares outstanding-basic 120,268,046 119,684,030 120,230,369 119,561,388 Weighted-average shares outstanding-diluted 121,354,089 119,684,030 121,607,207 120,628,237 Adjusted fully-converted net income (loss) and adjusted fully-converted net income (loss) per fully exchanged, fully diluted shares outstanding (Note 1): Adjusted fully-converted net income (loss) $ 59.6 $ (419.8) $ 66.2 $ (1,104.1) Adjusted fully-converted net income (loss) per fully exchanged, fully diluted share $ 0.49 $ (3.49) $ 0.54 $ (9.15) Adjusted fully-converted shares outstanding - diluted (Note 6) 121,354,089 120,659,163 121,607,207 120,628,237 See Footnotes to Earnings Release Tables PBF ENERGY INC. AND SUBSIDIARIES RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP (Unaudited, in millions, except share and per share data) RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) AND ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) EXCLUDING SPECIAL ITEMS (Note 1) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net income (loss) attributable to PBF Energy Inc. stockholders $ 59.1 $ (417.2) $ 65.7 $ (1,094.0) Less: Income allocated to participating securities - - - 0.1 Income (loss) available to PBF Energy Inc. stockholders - basic 59.1 (417.2) 65.7 (1,094.1) Add: Net income (loss) attributable to noncontrolling interest (Note 2) 0.7 (3.5) 0.7 (13.6) Less: Income tax (expense) benefit (Note 3) (0.2) 0.9 (0.2) 3.6 Adjusted fully-converted net income (loss) $ 59.6 $ (419.8) $ 66.2 $ (1,104.1) Special Items (Note 4): Add: Non-cash LCM inventory adjustment - (9.9) (669.6) 691.5 Add: Change in fair value of contingent consideration 0.1 (28.6) 26.2 (93.5) Add: Gain on sale of hydrogen plants - - - (471.1) Add: Impairment expense - 7.0 - 7.0 Add: Severance costs - - - 12.9 Add: (Gain) loss on extinguishment of debt (60.3) - (60.3) 22.2 Add: Change in Tax Receivable Agreement liability - (252.2) - (240.6) Add: Net tax (benefit) expense on remeasurement of deferred tax assets (1.4) 282.3 (3.8) 282.3 Less: Recomputed income tax on special items (Note 3) 16.0 74.6 187.2 18.8 Adjusted fully-converted net income (loss) excluding special items $ 14.0 $ (346.6) $ (454.1) $ (874.6) Weighted-average shares outstanding of PBF Energy Inc. 120,268,046 119,684,030 120,230,369 119,561,388 Conversion of PBF LLC Series A Units (Note 5) 994,192 975,133 989,314 1,066,849 Common stock equivalents (Note 6) 91,851 - 387,524 - Fully-converted shares outstanding - diluted 121,354,089 120,659,163 121,607,207 120,628,237 Adjusted fully-converted net income (loss) per fully exchanged, fully diluted shares outstanding (Note 6) $ 0.49 $ (3.49) $ 0.54 $ (9.15) Adjusted fully-converted net income (loss) excluding special items per fully exchanged, fully diluted shares outstanding (Note 4, 6) $ 0.12 $ (2.87) $ (3.75) $ (7.25) Three Months Ended Nine Months Ended RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO INCOME (LOSS) FROM OPERATIONS EXCLUDING SPECIAL ITEMS September 30, September 30, 2021 2020 2021 2020 Income (loss) from operations $ 100.9 $ (342.7) $ 306.1 $ (1,088.7) Special Items (Note 4): Add: Non-cash LCM inventory adjustment - (9.9) (669.6) 691.5 Add: Change in fair value of contingent consideration 0.1 (28.6) 26.2 (93.5) Add: Gain on sale of hydrogen plants - - - (471.1) Add: Impairment expense - 7.0 - 7.0 Add: Severance costs - - - 12.9 Income (loss) from operations excluding special items $ 101.0 $ (374.2) $ (337.3) $ (941.9) See Footnotes to Earnings Release Tables PBF ENERGY INC. AND SUBSIDIARIES RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP EBITDA RECONCILIATIONS (Note 7) (Unaudited, in millions) Three Months Ended Nine Months Ended September 30, September 30, RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND EBITDA EXCLUDING SPECIAL ITEMS 2021 2020 2021 2020 Net income (loss) $ 78.7 $ (397.8) $ 126.4 $ (1,047.3) Add: Depreciation and amortization expense 116.2 133.0 348.6 377.7 Add: Interest expense, net 82.0 70.4 243.1 185.1 Add: Income tax expense (benefit) 20.3 235.6 16.4 (0.7) EBITDA $ 297.2 $ 41.2 $ 734.5 $ (485.2) Special Items (Note 4): Add: Non-cash LCM inventory adjustment - (9.9) (669.6) 691.5 Add: Change in fair value of contingent consideration 0.1 (28.6) 26.2 (93.5) Add: Gain on sale of hydrogen plants - - - (471.1) Add: Impairment expense - 7.0 - 7.0 Add: Severance costs - - - 12.9 Add: (Gain) loss on extinguishment of debt (60.3) - (60.3) 22.2 Add: Change in Tax Receivable Agreement liability - (252.2) - (240.6) EBITDA excluding special items $ 237.0 $ (242.5) $ 30.8 $ (556.8) Three Months Ended Nine Months Ended September 30, September 30, RECONCILIATION OF EBITDA TO ADJUSTED EBITDA 2021 2020 2021 2020 EBITDA $ 297.2 $ 41.2 $ 734.5 $ (485.2) Add: Stock-based compensation 6.9 10.4 24.7 29.1 Add: Change in fair value of catalyst obligations (17.8) 2.4 (13.6) (4.2) Add: Non-cash LCM inventory adjustment (Note 4) - (9.9) (669.6) 691.5 Add: Change in fair value of contingent consideration (Note 4) 0.1 (28.6) 26.2 (93.5) Add: Gain on sale of hydrogen plants (Note 4) - - - (471.1) Add: Impairment expense (Note 4) - 7.0 - 7.0 Add: Severance costs (Note 4) - - - 12.9 Add: (Gain) loss on extinguishment of debt (Note 4) (60.3) - (60.3) 22.2 Add: Change in Tax Receivable Agreement liability (Note 4) - (252.2) - (240.6) Adjusted EBITDA $ 226.1 $ (229.7) $ 41.9 $ (531.9) See Footnotes to Earnings Release Tables PBF ENERGY INC. AND SUBSIDIARIES EARNINGS RELEASE TABLES CONDENSED CONSOLIDATED BALANCE SHEET DATA (Unaudited, in millions) September 30, December 31, 2021 2020 Balance Sheet Data: Cash and cash equivalents $ 1,472.5 $ 1,609.5 Inventories 2,831.4 1,686.2 Total assets 11,844.2 10,499.8 Total debt 4,407.1 4,661.0 Total equity 2,322.1 2,202.3 Total equity excluding special items (Note 4, 13) $ 1,875.4 $ 2,275.9 Total debt to capitalization ratio (Note 13) 65 % 68 % Total debt to capitalization ratio, excluding special items (Note 13) 70 % 67 % Net debt to capitalization ratio (Note 13) 56 % 58 % Net debt to capitalization ratio, excluding special items (Note 13) 61 % 57 % SUMMARIZED STATEMENT OF CASH FLOW DATA (Unaudited, in millions) Nine Months Ended September 30, 2021 2020 Cash flows provided by (used in) operating activities $ 325.7 $ (792.6) Cash flows used in investing activities (227.2) (990.3) Cash flows (used in) provided by financing activities (235.5) 2,250.6 Net change in cash and cash equivalents (137.0) 467.7 Cash and cash equivalents, beginning of period 1,609.5 814.9 Cash and cash equivalents, end of period $ 1,472.5 $ 1,282.6 See Footnotes to Earnings Release Tables PBF ENERGY INC. AND SUBSIDIARIES EARNINGS RELEASE TABLES CONSOLIDATING FINANCIAL INFORMATION (Note 8) (Unaudited, in millions) Three Months Ended September 30, 2021 Refining Logistics Corporate Eliminations Consolidated Total Revenues $ 7,173.3 $ 88.9 $ - $ (75.5) $ 7,186.7 Depreciation and amortization expense 103.0 9.8 3.4 - 116.2 Income (loss) from operations 116.7 47.1 (62.9) - 100.9 Interest expense, net 3.7 10.4 67.9 - 82.0 Capital expenditures 83.1 3.4 1.1 - 87.6 Three Months Ended September 30, 2020 Refining Logistics Corporate Eliminations Consolidated Total Revenues $ 3,649.2 $ 89.0 $ - $ (70.7) $ 3,667.5 Depreciation and amortization expense 115.9 14.4 2.7 - 133.0 Income (loss) from operations (367.0) 55.6 (31.3) - (342.7) Interest expense, net (0.8) 11.5 59.7 - 70.4 Capital expenditures 53.0 1.7 2.0 - 56.7 Nine Months Ended September 30, 2021 Refining Logistics Corporate Eliminations Consolidated Total Revenues $ 18,969.7 $ 266.2 $ - $ (226.5) $ 19,009.4 Depreciation and amortization expense 310.0 28.5 10.1 - 348.6 Income (loss) from operations 349.4 142.8 (186.1) - 306.1 Interest expense, net 7.2 31.8 204.1 - 243.1 Capital expenditures 216.4 6.9 3.9 - 227.2 Nine Months Ended September 30, 2020 Refining Logistics Corporate Eliminations Consolidated Total Revenues $ 11,408.3 $ 271.2 $ - $ (218.7) $ 11,460.8 Depreciation and amortization expense 332.4 36.9 8.4 - 377.7 Income (loss) from operations (1,138.8) 153.4 (103.3) - (1,088.7) Interest expense, net 0.7 37.0 147.4 - 185.1 Capital expenditures (Note 14) 1,500.9 9.6 9.2 - 1,519.7 Balance at September 30, 2021 Refining Logistics Corporate Eliminations Consolidated Total Total Assets $ 10,947.4 $ 910.6 $ 49.4 $ (63.2) $ 11,844.2 Balance at December 31, 2020 Refining Logistics Corporate Eliminations Consolidated Total Total Assets $ 9,565.0 $ 933.6 $ 54.4 $ (53.2) $ 10,499.8 See Footnotes to Earnings Release Tables PBF ENERGY INC. AND SUBSIDIARIES EARNINGS RELEASE TABLES MARKET INDICATORS AND KEY OPERATING INFORMATION (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, Market Indicators (dollars per barrel) (Note 9) 2021 2020 2021 2020 Dated Brent crude oil $ 73.45 $ 43.05 $ 67.93 $ 40.74 West Texas Intermediate (WTI) crude oil $ 70.54 $ 40.91 $ 65.06 $ 38.12 Light Louisiana Sweet (LLS) crude oil $ 71.46 $ 42.46 $ 66.68 $ 40.13 Alaska North Slope (ANS) crude oil $ 72.66 $ 42.75 $ 67.53 $ 41.32 Crack Spreads: Dated Brent (NYH) 2-1-1 $ 18.66 $ 8.30 $ 16.09 $ 9.30 WTI (Chicago) 4-3-1 $ 19.60 $ 7.08 $ 16.73 $ 6.56 LLS (Gulf Coast) 2-1-1 $ 18.13 $ 6.53 $ 15.40 $ 7.79 ANS (West Coast-LA) 4-3-1 $ 21.54 $ 11.70 $ 19.58 $ 11.41 ANS (West Coast-SF) 3-2-1 $ 23.27 $ 10.88 $ 19.22 $ 9.77 Crude Oil Differentials: Dated Brent (foreign) less WTI $ 2.91 $ 2.14 $ 2.87 $ 2.62 Dated Brent less Maya (heavy, sour) $ 7.26 $ 3.88 $ 5.93 $ 5.95 Dated Brent less WTS (sour) $ 2.91 $ 2.09 $ 2.53 $ 2.72 Dated Brent less ASCI (sour) $ 4.79 $ 1.38 $ 3.58 $ 1.99 WTI less WCS (heavy, sour) $ 13.59 $ 9.29 $ 13.00 $ 10.58 WTI less Bakken (light, sweet) $ (0.48) $ 1.23 $ 0.07 $ 2.57 WTI less Syncrude (light, sweet) $ 2.47 $ 1.94 $ 1.66 $ 1.58 WTI less LLS (light, sweet) $ (0.92) $ (1.55) $ (1.63) $ (2.01) WTI less ANS (light, sweet) $ (2.12) $ (1.84) $ (2.48) $ (3.20) Natural gas (dollars per MMBTU) $ 4.32 $ 2.12 $ 3.35 $ 1.92 Key Operating Information Production (barrels per day ("bpd") in thousands) 867.7 716.7 839.7 750.2 Crude oil and feedstocks throughput (bpd in thousands) 848.3 706.1 823.2 744.6 Total crude oil and feedstocks throughput (millions of barrels) 78.0 65.0 224.7 204.0 Consolidated gross margin per barrel of throughput $ 2.16 $ (4.82) $ 2.26 $ (7.10) Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) $ 9.32 $ 2.98 $ 6.32 $ 3.92 Refinery operating expense, per barrel of throughput (Note 11) $ 6.50 $ 6.96 $ 6.36 $ 6.78 Crude and feedstocks (% of total throughput) (Note 12) Heavy 32 % 43 % 34 % 43 % Medium 32 % 25 % 29 % 26 % Light 19 % 18 % 20 % 17 % Other feedstocks and blends 17 % 14 % 17 % 14 % Total throughput 100 % 100 % 100 % 100 % Yield (% of total throughput) Gasoline and gasoline blendstocks 52 % 54 % 53 % 50 % Distillates and distillate blendstocks 29 % 28 % 30 % 31 % Lubes 1 % 1 % 1 % 1 % Chemicals 2 % 1 % 2 % 1 % Other 18 % 18 % 16 % 18 % Total yield 102 % 102 % 102 % 101 % See Footnotes to Earnings Release Tables PBF ENERGY INC. AND SUBSIDIARIES EARNINGS RELEASE TABLES SUPPLEMENTAL OPERATING INFORMATION (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Supplemental Operating Information - East Coast Refining System (Delaware City and Paulsboro) Production (bpd in thousands) 262.1 250.8 251.2 273.3 Crude oil and feedstocks throughput (bpd in thousands) 259.8 251.4 250.9 274.3 Total crude oil and feedstocks throughput (millions of barrels) 23.8 23.1 68.5 75.1 Gross margin per barrel of throughput $ 3.37 $ (4.11) $ 4.21 $ (5.79) Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) $ 10.00 $ 2.41 $ 5.66 $ 4.53 Refinery operating expense, per barrel of throughput (Note 11) $ 5.14 $ 4.99 $ 5.37 $ 5.29 Crude and feedstocks (% of total throughput) (Note 12): Heavy 24 % 27 % 25 % 26 % Medium 37 % 33 % 37 % 33 % Light 14 % 15 % 15 % 20 % Other feedstocks and blends 25 % 25 % 23 % 21 % Total throughput 100 % 100 % 100 % 100 % Yield (% of total throughput): Gasoline and gasoline blendstocks 44 % 49 % 44 % 45 % Distillates and distillate blendstocks 31 % 30 % 33 % 34 % Lubes 2 % 1 % 2 % 2 % Chemicals 2 % 2 % 2 % 2 % Other 22 % 18 % 19 % 17 % Total yield 101 % 100 % 100 % 100 % Supplemental Operating Information - Mid-Continent (Toledo) Production (bpd in thousands) 149.9 110.5 141.1 93.0 Crude oil and feedstocks throughput (bpd in thousands) 146.0 108.4 138.0 91.9 Total crude oil and feedstocks throughput (millions of barrels) 13.5 10.0 37.7 25.2 Gross margin per barrel of throughput $ 4.55 $ (6.40) $ 8.99 $ (14.74) Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) $ 11.64 $ 1.87 $ 8.24 $ (0.17) Refinery operating expense, per barrel of throughput (Note 11) $ 5.58 $ 5.87 $ 5.31 $ 7.04 Crude and feedstocks (% of total throughput) (Note 12): Medium 36 % 36 % 36 % 38 % Light 62 % 62 % 62 % 60 % Other feedstocks and blends 2 % 2 % 2 % 2 % Total throughput 100 % 100 % 100 % 100 % Yield (% of total throughput): Gasoline and gasoline blendstocks 58 % 58 % 57 % 52 % Distillates and distillate blendstocks 30 % 31 % 31 % 29 % Chemicals 5 % 4 % 5 % 3 % Other 10 % 9 % 9 % 17 % Total yield 103 % 102 % 102 % 101 % See Footnotes to Earnings Release Tables PBF ENERGY INC. AND SUBSIDIARIES EARNINGS RELEASE TABLES SUPPLEMENTAL OPERATING INFORMATION (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Supplemental Operating Information - Gulf Coast (Chalmette) Production (bpd in thousands) 148.2 128.8 162.0 147.0 Crude oil and feedstocks throughput (bpd in thousands) 145.3 125.6 158.0 144.0 Total crude oil and feedstocks throughput (millions of barrels) 13.4 11.6 43.1 39.5 Gross margin per barrel of throughput $ 1.04 $ (4.51) $ (0.16) $ (4.54) Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) $ 8.40 $ 2.48 $ 6.13 $ 5.19 Refinery operating expense, per barrel of throughput (Note 11) $ 6.12 $ 5.71 $ 5.37 $ 5.18 Crude and feedstocks (% of total throughput) (Note 12): Heavy 17 % 41 % 13 % 41 % Medium 37 % 35 % 39 % 35 % Light 23 % 16 % 26 % 13 % Other feedstocks and blends 23 % 8 % 22 % 11 % Total throughput 100 % 100 % 100 % 100 % Yield (% of total throughput): Gasoline and gasoline blendstocks 46 % 39 % 46 % 42 % Distillates and distillate blendstocks 31 % 33 % 33 % 33 % Chemicals 2 % 2 % 2 % 2 % Other 23 % 29 % 22 % 25 % Total yield 102 % 103 % 103 % 102 % Supplemental Operating Information - West Coast (Torrance and Martinez) Production (bpd in thousands) 307.5 226.6 285.4 236.9 Crude oil and feedstocks throughput (bpd in thousands) 297.2 220.7 276.3 234.4 Total crude oil and feedstocks throughput (millions of barrels) 27.3 20.3 75.4 64.2 Gross margin per barrel of throughput $ (1.41) $ (7.59) $ (3.59) $ (9.70) Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) $ 8.06 $ 4.43 $ 6.06 $ 4.02 Refinery operating expense, per barrel of throughput (Note 11) $ 8.34 $ 10.47 $ 8.36 $ 9.42 Crude and feedstocks (% of total throughput) (Note 12): Heavy 61 % 84 % 72 % 82 % Medium 23 % 5 % 13 % 7 % Other feedstocks and blends 16 % 11 % 15 % 11 % Total throughput 100 % 100 % 100 % 100 % Yield (% of total throughput): Gasoline and gasoline blendstocks 60 % 66 % 63 % 60 % Distillates and distillate blendstocks 27 % 22 % 25 % 26 % Other 16 % 15 % 15 % 15 % Total yield 103 % 103 % 103 % 101 % See Footnotes to Earnings Release Tables PBF ENERGY INC. AND SUBSIDIARIES RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP GROSS REFINING MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note 10) (Unaudited, in millions, except per barrel amounts) Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 RECONCILIATION OF CONSOLIDATED GROSS MARGIN TO GROSS REFINING MARGIN AND GROSS REFINING MARGIN EXCLUDING SPECIAL ITEMS $ per barrel of throughput $ per barrel of throughput Calculation of consolidated gross margin: Revenues $ 7,186.7 $ 92.09 $ 3,667.5 $ 56.46 Less: Cost of sales 7,018.0 89.93 3,980.8 61.28 Consolidated gross margin $ 168.7 $ 2.16 $ (313.3) $ (4.82) Reconciliation of consolidated gross margin to gross refining margin: Consolidated gross margin $ 168.7 $ 2.16 $ (313.3) $ (4.82) Add: PBFX operating expense 27.3 0.35 22.7 0.35 Add: PBFX depreciation expense 9.8 0.13 14.4 0.22 Less: Revenues of PBFX (88.9) (1.14) (89.0) (1.37) Add: Refinery operating expense 507.6 6.50 452.4 6.96 Add: Refinery depreciation expense 103.0 1.32 115.9 1.79 Gross refining margin $ 727.5 $ 9.32 $ 203.1 $ 3.13 Special Items (Note 4): Add: Non-cash LCM inventory adjustment - - (9.9) (0.15) Gross refining margin excluding special items $ 727.5 $ 9.32 $ 193.2 $ 2.98 Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 RECONCILIATION OF CONSOLIDATED GROSS MARGIN TO GROSS REFINING MARGIN AND GROSS REFINING MARGIN EXCLUDING SPECIAL ITEMS $ per barrel of throughput $ per barrel of throughput Calculation of consolidated gross margin: Revenues $ 19,009.4 $ 84.60 $ 11,460.8 $ 56.18 Less: Cost of sales 18,500.5 82.34 12,910.0 63.28 Consolidated gross margin $ 508.9 $ 2.26 $ (1,449.2) $ (7.10) Reconciliation of consolidated gross margin to gross refining margin: Consolidated gross margin $ 508.9 $ 2.26 $ (1,449.2) $ (7.10) Add: PBFX operating expense 77.7 0.35 75.5 0.37 Add: PBFX depreciation expense 28.5 0.13 36.9 0.18 Less: Revenues of PBFX (266.2) (1.18) (271.2) (1.33) Add: Refinery operating expense 1,430.1 6.36 1,383.6 6.78 Add: Refinery depreciation expense 310.0 1.38 332.4 1.63 Gross refining margin $ 2,089.0 $ 9.30 $ 108.0 $ 0.53 Special Items (Note 4): Add: Non-cash LCM inventory adjustment (669.6) (2.98) 691.5 3.39 Gross refining margin excluding special items $ 1,419.4 $ 6.32 $ 799.5 $ 3.92 See Footnotes to Earnings Release Tables PBF ENERGY INC. AND SUBSIDIARIES EARNINGS RELEASE TABLES FOOTNOTES TO EARNINGS RELEASE TABLES (1) Adjusted fully-converted information is presented in this table as management believes that these Non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful to investors to compare our results across the periods presented and facilitates an understanding of our operating results. We also use these measures to evaluate our operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The differences between adjusted fully-converted and GAAP results are explained in footnotes 2 through 6. (2) Represents the elimination of the noncontrolling interest associated with the ownership by the members of PBF Energy Company LLC ("PBF LLC") other than PBF Energy Inc., as if such members had fully exchanged their PBF LLC Series A Units for shares of PBF Energy's Class A common stock. (3) Represents an adjustment to reflect PBF Energy's estimated annualized statutory corporate tax rate of approximately 26.6% and 26.3% for the 2021 and 2020 periods, respectively, applied to net income (loss) attributable to noncontrolling interest for all periods presented. The adjustment assumes the full exchange of existing PBF LLC Series A Units as described in footnote 2. (4) The Non-GAAP measures presented include adjusted fully-converted net income (loss) excluding special items, income (loss) from operations excluding special items, EBITDA excluding special items and gross refining margin excluding special items. Special items for the three and nine months ended September 30, 2021 and 2020 relate to LCM inventory adjustments, change in fair value of contingent consideration, gain on sale of hydrogen plants, impairment expense, severance costs related to reduction in workforce, (gain) loss on extinguishment of debt, changes in the Tax Receivable Agreement liability, and net tax (benefit) expense on the remeasurement of deferred tax assets, all as discussed further below. Additionally, the cumulative effects of all current and prior period special items on equity are shown in footnote 13. Although we believe that Non-GAAP financial measures excluding the impact of special items provide useful supplemental information to investors regarding the results and performance of our business and allow for useful period-over-period comparisons, such Non-GAAP measures should only be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP. Special Items: LCM inventory adjustment - LCM is a GAAP requirement related to inventory valuation that mandates inventory to be stated at the lower of cost or market. Our inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out ("LIFO") inventory valuation methodology, in which the most recently incurred costs are charged to cost of sales and inventories are valued at base layer acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and net realizable selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may exceed market values. In such instances, we record an adjustment to write down the value of inventory to market value in accordance with GAAP. In subsequent periods, the value of inventory is reassessed and an LCM inventory adjustment is recorded to reflect the net change in the LCM inventory reserve between the prior period and the current period. The following table includes the LCM inventory reserve as of each date presented (in millions): 2021 2020 January 1, $ 669.6 $ 401.6 June 30, - 1,103.0 September 30, - 1,093.1 The following table includes the corresponding impact of changes in the LCM inventory reserve on income (loss) from operations and net income (loss) for the periods presented (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net LCM inventory adjustment benefit (charge) in income (loss) from operations $ - $ 9.9 $ 669.6 $ (691.5) Net LCM inventory adjustment benefit (charge) in net income (loss) - 7.3 491.5 (509.6) Change in Fair Value of Contingent Consideration - During the three months ended September 30, 2021, we recorded a change in fair value of the contingent consideration related to the Martinez Contingent Consideration and the PBFX Contingent Consideration which decreased income from operations and net income by $0.1 million and $0.1 million, respectively. During the nine months ended September 30, 2021, we recorded a change in fair value of the contingent consideration primarily related to the Martinez Contingent Consideration which decreased income from operations and net income by $26.2 million and $19.2 million, respectively. During the three months ended September 30, 2020, we recorded a change in the fair value of the contingent consideration related to the Martinez Contingent Consideration and the PBFX Contingent Consideration which increased income from operations and net income by $28.6 million and $21.1 million, respectively. During the nine months ended September 30, 2020, we recorded a change in the fair value of the contingent consideration primarily related to the Martinez Contingent Consideration which increased income from operations and net income by $93.5 million and $68.9 million, respectively. Gain on Sale of Hydrogen Plants - During the nine months ended September 30, 2020, we recorded a gain on the sale of five hydrogen plants. The gain increased income from operations and net income by $471.1 million and $347.2 million, respectively. There was no such gain during the three or nine months ended September 30, 2021. Impairment expense - During the three and nine months ended September 30, 2020, we recorded an impairment charge which decreased income from operations and net income by $7.0 million and $5.2 million, respectively, resulting from the write-down of certain PBFX long-lived assets. There were no such charges during the three or nine months ended September 30, 2021. Severance Costs - During the nine months ended September 30, 2020, we recorded a severance charge related to a reduction in our workforce that decreased income from operations and net income by $12.9 million and $9.5 million, respectively. There were no such costs in any of the other periods presented. (Gain) Loss on Extinguishment of debt - During the three and nine months ended September 30, 2021, we recorded a pre-tax gain on extinguishment of debt related to the repurchase of a portion of the 6.00% senior unsecured notes due 2028 and the 7.25% senior unsecured notes due 2025, which increased income before income taxes and net income by $60.3 million and $44.3 million, respectively. During the nine months ended September 30, 2020, we recorded pre-tax debt extinguishment costs related to the redemption of the 2023 Senior Notes which decreased income before income taxes and net income by $22.2 million and $16.4 million, respectively. Change in Tax Receivable Agreement liability - During the three months ended September 30, 2020, we recorded a change in the Tax Receivable Agreement liability that increased income before income taxes and net income by $252.2 million and $185.9 million, respectively. During the nine months ended September 30, 2020, we recorded a change in the Tax Receivable Agreement liability that increased income before income taxes and net income by $240.6 million and $177.3 million, respectively. There was no change to the Tax Receivable Agreement liability during the three or nine months ended September 30, 2021. The changes in the Tax Receivable Agreement liability reflect charges or benefits attributable to changes in our obligation under the Tax Receivable Agreement due to factors out of our control such as changes in tax rates, as well as periodic adjustments to our liability based, in part, on an updated estimate of the amounts that we expect to pay, using assumptions consistent with those used in our concurrent estimate of the deferred tax asset valuation allowance. Net tax (benefit) expense on remeasurement of deferred tax assets - During the three and nine months ended September 30, 2021, we recorded a decrease to our deferred tax valuation allowance of $1.4 million and $3.8 million, respectively, in accordance with ASC 740, Income Taxes, related to the remeasurement of deferred tax assets. During the three and nine months ended September 30, 2020, we recorded a deferred tax valuation allowance of $348.6 million in accordance with ASC 740. This amount included tax expense of approximately $66.3 million related to our net change in the Tax Receivable Agreement liability or a net tax expense of $282.3 million related primarily to the remeasurement of deferred tax assets. (5) Represents an adjustment to weighted-average diluted shares outstanding to assume the full exchange of existing PBF LLC Series A Units as described in footnote 2. (6) Represents weighted-average diluted shares outstanding assuming the conversion of all common stock equivalents, including options and warrants for PBF LLC Series A Units and performance share units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method (to the extent the impact of such exchange would not be anti-dilutive) for the three and nine months ended September 30, 2021 and 2020, respectively. Common stock equivalents exclude the effects of performance share units and options and warrants to purchase 11,113,779 and 11,041,279 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three and nine months ended September 30, 2021, respectively. Common stock equivalents exclude the effects of performance share units and options and warrants to purchase 12,358,105 and 12,152,756 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three and nine months ended September 30, 2020, respectively. For periods showing a net loss, all common stock equivalents and unvested restricted stock are considered anti-dilutive. (7) EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA are supplemental measures of performance that are not required by, or presented in accordance with GAAP. Adjusted EBITDA is defined as EBITDA before adjustments for items such as stock-based compensation expense, the non-cash change in the fair value of catalyst obligations, gain on sale of hydrogen plants, the write down of inventory to the LCM, changes in the liability for Tax Receivable Agreement due to factors out of our control, such as changes in tax rates, (gain) loss on extinguishment of debt related to refinancing activities, change in the fair value of contingent consideration and certain other non-cash items. We use these Non-GAAP financial measures as a supplement to our GAAP results in order to provide additional metrics on factors and trends affecting our business. EBITDA and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered substitutes for net income as determined in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in the same manner by all companies, they are not necessarily comparable to other similarly titled measures used by other companies. EBITDA and Adjusted EBITDA have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. (8) We operate in two reportable segments: Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. As of September 30, 2021, the Refining segment includes the operations of our oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio, Chalmette, Louisiana, Torrance, California and Martinez, California. The Logistics segment includes the operations of PBF Logistics LP ("PBFX"), a growth-oriented master limited partnership which owns or leases, operates, develops and acquires crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. PBFX's assets primarily consist of rail and truck terminals and unloading racks, storage facilities and pipelines, a substantial portion of which were acquired from or contributed by PBF LLC and are located at, or nearby, our refineries. PBFX provides various rail, truck and marine terminaling services, pipeline transportation services and storage services to PBF Holding and/or its subsidiaries and third party customers through fee-based commercial agreements.PBFX currently does not generate significant third party revenue and intersegment related-party revenues are eliminated in consolidation. From a PBF Energy perspective, our chief operating decision maker evaluates the Logistics segment as a whole without regard to any of PBFX's individual operating segments. (9) As reported by Platts. (10) Gross refining margin and gross refining margin per barrel of throughput are Non-GAAP measures because they exclude refinery operating expenses, depreciation and amortization and gross margin of PBFX. Gross refining margin per barrel is gross refining margin, divided by total crude and feedstocks throughput. We believe they are important measures of operating performance and provide useful information to investors because gross refining margin per barrel is a helpful metric comparison to the industry refining margin benchmarks shown in the Market Indicators Tables, as the industry benchmarks do not include a charge for refinery operating expenses and depreciation. Other companies in our industry may not calculate gross refining margin and gross refining margin per barrel in the same manner. Gross refining margin and gross refining margin per barrel of throughput have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. (11) Represents refinery operating expenses, including corporate-owned logistics assets, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. (12) We define heavy crude oil as crude oil with American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with API gravity between 24 and 35 degrees. We define light crude oil as crude oil with API gravity higher than 35 degrees. (13) The total debt to capitalization ratio is calculated by dividing total debt by the sum of total debt and total equity. This ratio is a measurement that management believes is useful to investors in analyzing our leverage. Net debt and the net debt to capitalization ratio are Non-GAAP measures. Net debt is calculated by subtracting cash and cash equivalents from total debt. We believe these measurements are also useful to investors since we have the ability to and may decide to use a portion of our cash and cash equivalents to retire or pay down our debt. Additionally, we have also presented the total debt to capitalization and net debt to capitalization ratios excluding the cumulative effects of special items on equity. September 30, December 31, 2021 2020 (in millions) Total debt $ 4,407.1 $ 4,661.0 Total equity 2,322.1 2,202.3 Total capitalization $ 6,729.2 $ 6,863.3 Total debt $ 4,407.1 $ 4,661.0 Total equity excluding special items 1,875.4 2,275.9 Total capitalization excluding special items $ 6,282.5 $ 6,936.9 Total equity $ 2,322.1 $ 2,202.3 Special Items (Note 4) Add: Non-cash LCM inventory adjustments - 669.6 Add: Change in fair value of contingent consideration (67.5) (93.7) Add: Gain on sale of hydrogen plants (471.1) (471.1) Add: Gain on Torrance land sales (85.0) (85.0) Add: Impairment expense 98.8 98.8 Add: LIFO inventory decrement 83.0 83.0 Add: Turnaround acceleration costs 56.2 56.2 Add: Severance and reconfiguration costs 30.0 30.0 Add: Early railcar return expense 64.8 64.8 Add: (Gain) loss on extinguishment of debt (12.6) 47.7 Add: Change in Tax Receivable Agreement liability (663.9) (663.9) Less: Recomputed income taxes on special items 245.1 57.9 Add: Net tax expense on remeasurement of deferred tax assets 255.3 259.1 Add: Net tax expense on TCJA related special items 20.2 20.2 Net equity impact related to special items (446.7) 73.6 Total equity excluding special items $ 1,875.4 $ 2,275.9 Total debt $ 4,407.1 $ 4,661.0 Less: Cash and cash equivalents 1,472.5 1,609.5 Net Debt $ 2,934.6 $ 3,051.5 Total debt to capitalization ratio 65 % 68 % Total debt to capitalization ratio, excluding special items 70 % 67 % Net debt to capitalization ratio 56 % 58 % Net debt to capitalization ratio, excluding special items 61 % 57 % (14) The Refining segment includes capital expenditures of $1,176.2 million for the acquisition of the Martinez refinery in the first quarter of 2020. View original content to download multimedia:https://www.prnewswire.com/news-releases/pbf-energy-announces-third-quarter-2021-results-301410665.html SOURCE PBF Energy Inc.

Tags:
News

Patterson-UTI Energy Reports Financial Results for the Three and Nine Months Ended September 30, 2021

Patterson-UTI Energy Reports Financial Results for the Three and Nine Months Ended September 30, 2021 HOUSTON, Oct. 28, 2021 /PRNewswire/ -- PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today reported financial results for the three and nine months ended September 30, 2021. The Company reported a net loss of $83.0 million, or $0.44 per share, for the third quarter of 2021, compared to a net loss of $112 million, or $0.60 per share, for the third quarter of 2020. Revenues for the third quarter of 2021 were $358 million, compared to $207 million for the third quarter of 2020. For the nine months ended September 30, 2021, the Company reported a net loss of $293 million, or $1.55 per share, compared to a net loss of $697 million, or $3.70 per share, for the nine months ended September 30, 2020. Revenues for the nine months ended September 30, 2021 were $891 million, compared to $903 million for the same period in 2020. The financial results for the three months ended September 30, 2021 include pretax acquisition-related expenses of $0.9 million ($0.8 million after-tax) related to the acquisition of Pioneer Energy Services. Pretax acquisition-related expenses totaled $2.1 million for the nine months ended September 30, 2021. Andy Hendricks, Patterson-UTI's Chief Executive Officer, stated, "I am pleased that our total adjusted EBITDA for the third quarter increased 44% sequentially to $51.1 million on a 23% increase in revenues. As well, highlighting that our pressure pumping business continues to improve, adjusted EBITDA in this business more than doubled sequentially in the third quarter on a 36% increase in revenues." Mr. Hendricks continued, "In contract drilling, steady growth in activity positively impacted our third quarter financial results. Our average rig count for the third quarter improved to 80 rigs from 73 rigs in the second quarter. We expect activity growth will be robust in the fourth quarter, as we expect our average rig count, including 13 rigs from Pioneer Energy, to be approximately 106 rigs in the United States. "Total contract drilling revenues and gross profit for the third quarter increased approximately 11% sequentially. On a per rig day basis, average rig margin per day for the third quarter increased slightly to $6,300 as an increase in average rig revenue per day was largely offset by a similar increase in average rig cost per day. The number and cost of rig reactivations, as well as general oilfield cost inflation, including the cost of rig labor, services and supplies, moved higher in the third quarter. "In the fourth quarter, we expect the increase in the rig count to drive an improvement in total revenue and gross margin. Due to the large number of rig reactivations in the fourth quarter, as well as general cost inflation, average rig margin per day is expected to decrease to approximately $5,500. With the tight rig market and resulting increases we have seen in leading-edge dayrates, we expect daily margins for drilling rigs to rebound in the first quarter. "As of September 30, 2021, Patterson-UTI and Pioneer Energy had term contracts for drilling rigs in the United States providing for future dayrate drilling revenue of approximately $286 million and $64 million, respectively. Based on contracts currently in place in the United States, we expect an average of 53 rigs operating under term contracts during the fourth quarter, and an average of 35 rigs operating under term contracts during the four quarters ending September 30, 2022. "In pressure pumping, during the third quarter we were able to achieve higher pricing based on our outstanding service quality. We also benefited from more simulfrac work and the full quarter impact of two spreads that were reactivated in the second quarter. Relative to the second quarter, gross profit increased by 85% to $17.9 million on a 36% increase in revenues to $153 million. We activated our tenth spread in September. We expect to activate our 11th spread late in the fourth quarter and our 12th spread in the first quarter. "In directional drilling, the third quarter gross profit of $3.4 million increased 35% from the second quarter on a 28% increase in revenues to $31.7 million. During the third quarter, we benefited from the full-quarter impact of the strong growth in activity we saw in the second quarter." Mr. Hendricks concluded, "The acquisition of Pioneer Energy Services enhances our position as a leading provider of contract drilling services in the United States and expands our geographic footprint into Latin America. With this acquisition, we have expanded our APEX® rig fleet to 215 rigs of which 166 have super-spec capabilities. We are excited about the opportunities this acquisition offers, and we welcome the Pioneer employees to the Patterson-UTI family. The Company declared a quarterly dividend on its common stock of $0.02 per share, payable on December 16, 2021, to holders of record as of December 2, 2021. Financial results for the nine months ended September 30, 2020 include pre-tax charges totaling $461 million, consisting of $423 million of non-cash impairment charges and $38.3 million of restructuring costs. Partially offsetting these charges is a pre-tax gain of $4.2 million. All references to "per share" in this press release are diluted earnings per common share as defined within Accounting Standards Codification Topic 260. The Company's quarterly conference call to discuss the operating results for the quarter ended September 30, 2021, is scheduled for today, October 28, 2021, at 9:00 a.m. Central Time. The dial-in information for participants is (888) 550-5422 (Domestic) and (646) 960-0676 (International). The conference ID for both numbers is 3822955. The call is also being webcast and can be accessed through the Investor Relations section of the Company's website at investor.patenergy.com. A replay of the conference call will be on the Company's website for two weeks. About Patterson-UTI Patterson-UTI is a leading provider of oilfield services and products to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling, pressure pumping and directional drilling services. For more information, visit www.patenergy.com. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as "anticipate," "believe," "budgeted," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "potential," "project," "pursue," "should," "strategy," "target," or "will," and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including statements regarding Patterson-UTI's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the ultimate timing, outcome and results of integrating the operations of Pioneer Energy Services into Patterson-UTI; the effects of the acquisition on Patterson-UTI, including Patterson-UTI's future financial condition, results of operations, strategy and plans; potential adverse reactions or changes to business relationships resulting from the closing of the transaction; the failure to realize expected synergies and other benefits from the transaction; adverse oil and natural gas industry conditions; including the rapid decline in crude oil prices as a result of economic repercussions from the COVID-19 pandemic; global economic conditions; volatility in customer spending and in oil and natural gas prices that could adversely affect demand for Patterson-UTI's services and their associated effect on rates; excess availability of land drilling rigs, pressure pumping and directional drilling equipment, including as a result of reactivation, improvement or construction; competition and demand for Patterson-UTI's services; strength and financial resources of competitors; utilization, margins and planned capital expenditures; liabilities from operational risks for which Patterson-UTI does not have and receive full indemnification or insurance; operating hazards attendant to the oil and natural gas business; failure by customers to pay or satisfy their contractual obligations (particularly with respect to fixed-term contracts); the ability to realize backlog; specialization of methods, equipment and services and new technologies, including the ability to develop and obtain satisfactory returns from new technology; the ability to retain management and field personnel; loss of key customers; shortages, delays in delivery, and interruptions in supply, of equipment and materials; cybersecurity events; synergies, costs and financial and operating impacts of acquisitions; difficulty in building and deploying new equipment; governmental regulation; climate legislation, regulation and other related risks; environmental, social and governance practices, including the perception thereof; environmental risks and ability to satisfy future environmental costs; technology-related disputes; legal proceedings and actions by governmental or other regulatory agencies; the ability to effectively identify and enter new markets; weather; operating costs; expansion and development trends of the oil and natural gas industry; ability to obtain insurance coverage on commercially reasonable terms; financial flexibility; interest rate volatility; adverse credit and equity market conditions; availability of capital and the ability to repay indebtedness when due; stock price volatility; and compliance with covenants under Patterson-UTI's debt agreements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement. PATTERSON-UTI ENERGY, INC. Condensed Consolidated Statements of Operations (unaudited, in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 REVENUES $ 357,885 $ 207,141 $ 890,588 $ 903,448 COSTS AND EXPENSES: Direct operating costs 285,067 141,257 703,051 632,631 Depreciation, depletion, amortization and impairment 141,065 157,319 437,984 517,201 Impairment of goodwill - - - 395,060 Selling, general and administrative 22,063 22,355 68,176 76,692 Credit loss expense - - - 5,606 Restructuring expenses - - - 38,338 Merger and integration expense 918 - 2,066 - Other operating (income) expense, net (1,219) 776 (3,743) 5,980 Total costs and expenses 447,894 321,707 1,207,534 1,671,508 OPERATING LOSS (90,009) (114,566) (316,946) (768,060) OTHER INCOME (EXPENSE): Interest income 37 238 196 1,229 Interest expense, net of amount capitalized (10,683) (11,288) (31,396) (33,496) Other 14 512 840 682 Total other expense (10,632) (10,538) (30,360) (31,585) LOSS BEFORE INCOME TAXES (100,641) (125,104) (347,306) (799,645) INCOME TAX BENEFIT (17,643) (12,993) (54,586) (102,480) NET LOSS $ (82,998) $ (112,111) $ (292,720) $ (697,165) NET LOSS PER COMMON SHARE: Basic $ (0.44) $ (0.60) $ (1.55) $ (3.70) Diluted $ (0.44) $ (0.60) $ (1.55) $ (3.70) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic 188,965 187,280 188,355 188,193 Diluted 188,965 187,280 188,355 188,193 CASH DIVIDENDS PER COMMON SHARE $ 0.02 $ 0.02 $ 0.06 $ 0.08 PATTERSON-UTI ENERGY, INC. Additional Financial and Operating Data (unaudited, dollars in thousands) Three Months Ended Nine Months Ended Three Months Ended September 30, September 30, June 30, 2021 2020 2021 2020 2021 Contract Drilling: Revenues $ 157,925 $ 115,054 $ 433,158 $ 553,552 $ 141,732 Direct operating costs $ 111,537 $ 59,117 $ 291,049 $ 309,664 $ 100,134 Margin (1) $ 46,388 $ 55,937 $ 142,109 $ 243,888 $ 41,598 Restructuring expenses $ - $ - $ - $ 2,430 $ - Other operating expenses (income), net $ (28) $ - $ 17 $ (4,155) $ 33 Selling, general and administrative $ 1,086 $ 876 $ 3,346 $ 3,684 $ 1,202 Depreciation, amortization and impairment $ 97,160 $ 102,275 $ 297,426 $ 328,843 $ 98,592 Impairment of goodwill $ - $ - $ - $ 395,060 $ - Operating loss $ (51,830) $ (47,214) $ (158,680) $ (481,974) $ (58,229) Operating days 7,361 5,499 20,196 24,184 6,652 Average revenue per operating day $ 21.45 $ 20.92 $ 21.45 $ 22.89 $ 21.31 Average direct operating costs per operating day $ 15.15 $ 10.75 $ 14.41 $ 12.80 $ 15.05 Average margin per operating day (1) $ 6.30 $ 10.17 $ 7.04 $ 10.08 $ 6.25 Average rigs operating 80 60 74 88 73 Capital expenditures $ 21,239 $ 9,502 $ 56,708 $ 101,448 $ 24,042 Pressure Pumping: Revenues $ 152,634 $ 71,973 $ 340,464 $ 256,613 $ 111,991 Direct operating costs $ 134,726 $ 63,721 $ 313,556 $ 234,844 $ 102,320 Margin (2) $ 17,908 $ 8,252 $ 26,908 $ 21,769 $ 9,671 Restructuring expenses $ - $ - $ - $ 31,331 $ - Selling, general and administrative $ 1,844 $ 2,004 $ 5,379 $ 6,748 $ 1,852 Depreciation, amortization and impairment $ 29,838 $ 37,104 $ 98,963 $ 118,586 $ 31,740 Operating loss $ (13,774) $ (30,856) $ (77,434) $ (134,896) $ (23,921) Average active spreads (3) 9 4 7 6 8 Effective utilization (4) 10.1 5.1 7.9 5.4 7.9 Fracturing jobs 116 69 292 193 105 Other jobs 185 180 591 541 206 Total jobs 301 249 883 734 311 Average revenue per fracturing job $ 1,265.98 $ 960.70 $ 1,102.58 $ 1,251.37 $ 1,006.36 Average revenue per other job $ 31.24 $ 31.58 $ 31.32 $ 27.91 $ 30.69 Average revenue per total job $ 507.09 $ 289.05 $ 385.58 $ 349.61 $ 360.10 Average costs per total job $ 447.59 $ 255.91 $ 355.10 $ 319.95 $ 329.00 Average margin per total job (2) $ 59.50 $ 33.14 $ 30.47 $ 29.66 $ 31.10 Margin as a percentage of revenues (2) 11.7 % 11.5 % 7.9 % 8.5 % 8.6 % Capital expenditures $ 6,468 $ 1,653 $ 19,457 $ 17,880 $ 8,921 PATTERSON-UTI ENERGY, INC. Additional Financial and Operating Data (unaudited, dollars in thousands) Three Months Ended Nine Months Ended Three MonthsEnded September 30, September 30, June 30, 2021 2020 2021 2020 2021 Directional Drilling: Revenues $ 31,728 $ 10,271 $ 76,267 $ 56,498 $ 24,869 Direct operating costs $ 28,360 $ 9,754 $ 67,367 $ 54,348 $ 22,370 Margin (5) $ 3,368 $ 517 $ 8,900 $ 2,150 $ 2,499 Restructuring expenses $ - $ - $ - $ 3,175 $ - Selling, general and administrative $ 1,177 $ 829 $ 3,651 $ 4,169 $ 1,015 Depreciation, amortization and impairment $ 6,772 $ 9,600 $ 19,863 $ 29,698 $ 6,594 Operating loss $ (4,581) $ (9,912) $ (14,614) $ (34,892) $ (5,110) Margin as a percentage of revenues (5) 10.6 % 5.0 % 11.7 % 3.8 % 10.0 % Capital expenditures $ 3,290 $ 510 $ 4,613 $ 4,562 $ 1,219 Other Operations: Revenues $ 15,598 $ 9,843 $ 40,699 $ 36,785 $ 13,182 Direct operating costs $ 10,444 $ 8,665 $ 31,079 $ 33,775 $ 10,409 Margin (6) $ 5,154 $ 1,178 $ 9,620 $ 3,010 $ 2,773 Restructuring expenses $ - $ - $ - $ 501 $ - Selling, general and administrative $ 623 $ 747 $ 1,489 $ 2,969 $ 441 Depreciation, depletion, amortization and impairment $ 5,866 $ 6,852 $ 17,309 $ 35,087 $ 5,619 Operating loss $ (1,335) $ (6,421) $ (9,178) $ (35,547) $ (3,287) Capital expenditures $ 2,833 $ 1,704 $ 9,006 $ 9,776 $ 3,429 Corporate: Selling, general and administrative $ 17,333 $ 17,899 $ 54,311 $ 59,122 $ 19,045 Restructuring expenses $ - $ - $ - $ 901 $ - Depreciation $ 1,429 $ 1,488 $ 4,423 $ 4,987 $ 1,492 Credit loss expense $ - $ - $ - $ 5,606 $ - Merger and integration expense $ 918 $ - $ 2,066 $ - $ 1,148 Other operating (income) expense, net $ (1,191) $ 776 $ (3,760) $ 10,135 $ (2,822) Capital expenditures $ 434 $ 73 $ 1,053 $ 1,377 $ 439 Total Capital Expenditures $ 34,264 $ 13,442 $ 90,837 $ 135,043 $ 38,050 (1) For Contract Drilling, margin is defined as revenues less direct operating costs and excludes restructuring expenses, depreciation, amortization and impairment, impairment of goodwill, other operating expenses (income), net and selling, general and administrative expenses. Average margin per operating day is defined as margin divided by operating days. (2) For Pressure Pumping, margin is defined as revenues less direct operating costs and excludes restructuring expenses, depreciation, amortization and impairment and selling, general and administrative expenses. Average margin per total job is defined as margin divided by total jobs. Margin as a percentage of revenues is defined as margin divided by revenues. (3) Average active spreads is the average number of spreads that were crewed and actively marketed during the period. (4) Effective utilization is calculated as total pumping days during the quarter divided by 75 days or during the first nine months of the year divided by 225 days, which we consider full effective utilization for a spread during the period. (5) For Directional Drilling, margin is defined as revenues less direct operating costs and excludes restructuring expenses, depreciation, amortization and impairment and selling, general and administrative expenses. Margin as a percentage of revenues is defined as margin divided by revenues. (6) For Other Operations, margin is defined as revenues less direct operating costs and excludes restructuring expenses, depreciation, depletion, amortization and impairment, and selling, general and administrative expenses. September 30, December 31, Selected Balance Sheet Data (unaudited, in thousands): 2021 2020 Cash and cash equivalents $ 191,284 $ 224,915 Current assets $ 543,532 $ 477,956 Current liabilities $ 338,849 $ 273,722 Working capital $ 204,683 $ 204,234 Long-term debt $ 902,104 $ 901,484 PATTERSON-UTI ENERGY, INC. Non-U.S. GAAP Financial Measures (unaudited, dollars in thousands) Three Months Ended Nine Months Ended Three Months Ended September 30, September 30, June 30, 2021 2020 2021 2020 2021 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net loss $ (82,998) $ (112,111) $ (292,720) $ (697,165) $ (103,309) Income tax benefit (17,643) (12,993) (54,586) (102,480) (15,973) Net interest expense 10,646 11,050 31,200 32,267 10,684 Depreciation, depletion, amortization and impairment 141,065 157,319 437,984 517,201 144,037 Impairment of goodwill - - - 395,060 - Adjusted EBITDA $ 51,070 $ 43,265 $ 121,878 $ 144,883 $ 35,439 Total revenues $ 357,885 $ 207,141 $ 890,588 $ 903,448 $ 291,774 Adjusted EBITDA margin 14.3 % 20.9 % 13.7 % 16.0 % 12.1 % Adjusted EBITDA by operating segment: Contract drilling $ 45,330 $ 55,061 $ 138,746 $ 241,929 $ 40,363 Pressure pumping 16,064 6,248 21,529 (16,310) 7,819 Directional drilling 2,191 (312) 5,249 (5,194) 1,484 Other operations 4,531 431 8,131 (460) 2,332 Corporate (17,046) (18,163) (51,777) (75,082) (16,559) Consolidated Adjusted EBITDA $ 51,070 $ 43,265 $ 121,878 $ 144,883 $ 35,439 (1) Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is not defined by accounting principles generally accepted in the United States of America ("U.S. GAAP"). We define Adjusted EBITDA as net loss plus net interest expense, income tax benefit and depreciation, depletion, amortization and impairment expense (including impairment of goodwill). We present Adjusted EBITDA because we believe it provides to both management and investors additional information with respect to the performance of our fundamental business activities and a comparison of the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We exclude the items listed above from net loss in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be construed as an alternative to the U.S. GAAP measure of net income (loss). Our computations of Adjusted EBITDA may not be the same as similarly titled measures of other companies. PATTERSON-UTI ENERGY, INC. Pressure Pumping Adjusted EBITDA (unaudited, dollars in thousands) Three Months Ended Three MonthsEnded September 30, June 30, 2021 2021 Change Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Operating loss $ (13,774) $ (23,921) Depreciation, amortization and impairment 29,838 31,740 Adjusted EBITDA $ 16,064 $ 7,819 105 % (1) We present Adjusted EBITDA of our pressure pumping business because we believe it provides to both management and investors additional information with respect to the performance of our pressure pumping business and a comparison of the results of our pressure pumping operations from period to period and against our peers without regard to our financing methods or capital structure. Pressure Pumping Adjusted EBITDA should not be construed as an alternative to the U.S. GAAP measure of operating income (loss). View original content:https://www.prnewswire.com/news-releases/patterson-uti-energy-reports-financial-results-for-the-three-and-nine-months-ended-september-30-2021-301410586.html SOURCE PATTERSON-UTI ENERGY, INC.

Tags:
News

TechnipFMC and Saipem Announce SURF Commercial Agreement to Unlock New Opportunities

TechnipFMC and Saipem Announce SURF Commercial Agreement to Unlock New Opportunities NEWCASTLE & HOUSTON & MILAN, Oct. 28 /BusinessWire/ -- TechnipFMC (NYSE:FTI) (PARIS: FTI) and Saipem (MILAN: SPM) today announced the two companies have entered into a global commercial agreement that will allow them to identify projects worldwide that could be jointly executed for the benefit of clients. The commercial agreement will pursue specific Subsea Umbilicals, Risers and Flowlines (SURF) projects where the combination of the companies' complementary world-class assets, technologies, products and competencies improves project economics and de-risks the overall project development for the benefit of all stakeholders. The collaboration will have access to a broad range of SURF products and installation methods, providing greater operational flexibility and optimized execution strategies under EPCI (Engineering, Procurement, Construction and Installation) and iEPCITM (integrated Engineering, Procurement, Construction and Installation) project execution models. Jonathan Landes, President, Subsea, at TechnipFMC commented: "We are very pleased to partner with Saipem for the creation of this alliance. Working together with Saipem, we will be well-positioned to efficiently utilize complementary assets and capabilities to create differentiated technical solutions that further optimize project execution. Importantly, the strengthened offering will also expand the potential market for iEPCI™ opportunities when combined with TechnipFMC's innovative Subsea 2.0™ production systems." Stefano Porcari, Chief Operating Officer of the E&C Offshore Division, at Saipem commented: "The SURF commercial agreement with TechnipFMC represents an important milestone to offer a more competitive and reliable value proposition to our clients. The agreement will provide a pool of complementary enabling vessels and facilities and a consolidated Reel laying and J-laying technology base. Together we will be able to provide a full service for those challenging developments requiring an ample range of technologies and capabilities. We are very excited with this commercial agreement and with the opportunities that will be released to the benefit of our stakeholders." Important Information for Investors and Securityholders Forward-Looking Statement This release contains "forward-looking statements" as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. The words "expect," "believe," "estimated," and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. Such forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. For information regarding known material factors that could cause actual results to differ from projected results, please see our risk factors set forth in our filings with the United States Securities and Exchange Commission, which include our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law. About TechnipFMC TechnipFMC is a leading technology provider to the traditional and new energy industries, delivering fully integrated projects, products, and services. With our proprietary technologies and comprehensive solutions, we are transforming our clients' project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions. Organized in two business segments - Subsea and Surface Technologies - we will continue to advance the industry with our pioneering integrated ecosystems (such as iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation. Each of our approximately 20,000 employees is driven by a commitment to our clients' success, and a culture of strong execution, purposeful innovation, and challenging industry conventions. TechnipFMC uses its website as a channel of distribution of material company information. To learn more about how we are driving change in the industry, go to www.TechnipFMC.com and follow us on Twitter @TechnipFMC. About Saipem Saipem is an advanced technological and engineering platform for the design, construction and operation of safe and sustainable complex infrastructure and plants. Saipem has always been oriented towards technological innovation and is currently committed, alongside its clients, on the frontline of energy transition with increasingly digitalised tools, technologies and processes that were devised from the outset with environmental sustainability in mind. It is listed on the Milan stock exchange and is organised into five business divisions (E&C Offshore, E&C Onshore, Drilling Offshore, Drilling Onshore and XSIGHT for consulting and engineering services in the initial phases of projects). It operates in over 60 countries around the world with 32 thousand employees from 130 different nationalities. View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006055/en/   back

Tags:
News

Asetek - Q3 2021: Soft Q3 as Expected - Long-term Growth Ambitions Remain Firm

Asetek - Q3 2021: Soft Q3 as Expected - Long-term Growth Ambitions Remain Firm OSLO, Norway, Oct. 28, 2021 /PRNewswire/ -- Nine-month revenue of $61.7 million (+37%) and EBITDA adjusted of $6.5 million Q3 revenue of $13.5 million compared with $21.6 million in Q3 2020; Q3 gross margin of 39% compared with 47% in prior year Q3 EBITDA adjusted of negative $1.4 million, compared with $5.4 million in Q3 2020 Results are consistent with update provided on September 22 One-time charge of $1.7 million in operating expense for exit of the HPC data center niche Opening of orders for SimSports products in Q4, with R&D investment of $0.8 million in Q3 Asetek technology incorporated in first AIO liquid cooling solutions from global gaming leader Razer Expectation for 2021 Group revenue growth of 10 - 20% maintained, current revenue outlook trending toward the lower end of the range Asetek reported third-quarter revenue of $13.5 million, compared with $21.6 million in the same period of 2020. Revenue in the first nine months was $61.7 million, representing growth of 37% compared with the same period of 2020. The changes from prior year mainly reflect fluctuation in the volume of shipments of Gaming and Enthusiast products, impacted by several factors: A global shortage of chips, particularly GPUs, has suppressed demand for Asetek's coolers. Disruption in global shipping and logistics has delayed customer shipments. Manufacturing schedules and component deliveries from suppliers have been hindered by a global component shortage, power outages and COVID-related factory shutdowns in the Tongan District in China. In order to maximize the future profitability of its Data center business, the Company announced that it is exiting the High-Performance Computing (HPC) niche. Asetek plans to prioritize the general data center market and support legislation increasing adoption of its sustainable solutions, capitalizing on its liquid cooling technology and long-term investments in the segment. Asetek recorded a one-time charge of $1.7 million to operating expense in Q3 2021 following this strategic change. Gross margin was 39% for the third quarter and 42% in the first nine months, compared with 47% and 49% in the respective periods of 2020. The margin decline reflects increases in certain component costs due to the ongoing global component shortage, higher shipping costs, a change in the mix of product shipments and a weaker U.S. dollar. "We are set to deliver record revenue in 2021 as gamers invest more in hardware and immersive experiences enabled by Asetek liquid cooling technology. Our long-term revenue ambition of 15% average annual growth through 2025 remain firm despite current shut-downs, component shortages and shipping bottle-necks affecting global supply chains and our short-term growth and cost base," said André Sloth Eriksen, CEO and founder of Asetek. "Our strategy of profitable growth is led by continuous innovation within the Gaming and Enthusiast segment, our new SimSports product line and a refocused Data center business positioned for significant value-creation by providing sustainable solutions for an emerging general data center market." Operating loss was $4.1 million and adjusted EBITDA was negative $1.4 million in the third quarter of 2021, compared with operating income of $4.3 million and adjusted EBITDA of $5.4 million in the third quarter of 2020. Operating income in the first nine months was $1.3 million and adjusted EBITDA was $6.5 million, compared with operating income of $5.3 million and adjusted EBITDA of $8.7 million in the same period of 2020. Operating expense included R&D in the new SimSports line of business of $0.8 million and $2.0 million in the third quarter and first nine months of 2021, respectively, compared with zero in the same periods of 2020. During the third quarter, the Company repurchased 113 thousand common shares for a total of $1.25 million to complete the share repurchases under the April 2021 program. At September 30, 2021, Asetek had working capital of $22.9 million including $25.4 million of cash and cash equivalents, and long-term debt totaled $1.9 million. In September, Asetek announced the first of its sim racing products - Invicta Sim Racing Pedals - which include a throttle, brake pedal and add-on clutch pedal, along with its RaceHub software for quick and easy adjustments and calibration. This initial offering will be available for purchase in Q4 2021, with delivery to customers early next year. In the third quarter, fifteen new Gaming & Enthusiast products began shipping, including one to a new customer. The Company also announced new all-in-one (AIO) coolers offered by its partners - Phanteks introduced the extreme performance Glacier One 240T30 AIO CPU cooler and MSI introduced its MEG CORELIQUID S Series premium AIO CPU coolers. In October, the Company announced that Asetek technology is incorporated in the first AIO liquid cooling solutions from global gaming leader Razer. Asetek's short-term outlook is affected by several factors. Manufacturing schedules and component deliveries from suppliers are hindered by power outages and COVID-related factory shutdowns in the Tongan District in China, which may continue. Significant increases in shipping and logistics costs are reducing gross margins. A global shortage of chips, particularly GPUs, is negatively impacting the market for Asetek's coolers. In recognition of the above factors, Asetek on September 22 updated its 2021 revenue expectation to an increase of 10% to 20% from 2020 (previously 20% to 30%). Operating income expectation was updated to between $0 and $2 million in 2021 (previously $8 to $12 million), reflecting the effect of reduced revenue due to the shortage of GPUs, increased shipping and component costs, uncertainties regarding operations in China, and non-recurring costs associated with the exit of the HPC data center niche. Asetek's most recent revenue outlook is trending toward the lower end of the above noted range. Conference call and webcast today Thursday, 28 October at 8:00 CEST: CEO André Sloth Eriksen and CFO Peter Dam Madsen will present the Company's results at 8:00 CEST and invites investors, analysts and media to join the presentation. The presentation is expected to last up to one hour, including Q&A, and can be followed via live webcast or conference call. Webcast - audio and slide presentation: Please join the third 2021 results webcast via the following link: https://streams.eventcdn.net/asetek/2021q3 Conference call - audio only: Please dial in 5-10 minutes prior using the phone numbers and confirmation code below: Copenhagen, Denmark +45 7872 3250 Oslo, Norway +47 2396 3938 Frankfurt, Germany +49 69222 2391 66 London, United Kingdom +44 (0) 3333 00 9262 New York, United States of America +1 631 913 1422 (US only PIN: 80618629#) Material: The third quarter report and presentation are available online at www.asetek.com (https://ir.asetek.com/) and www.newsweb.no, as well as through news agencies. A recorded version of the presentation will be made available at www.asetek.com (https://ir.asetek.com/) approximately two hours after the presentation has concluded. Q&A: The conference call lines will be opened for participants to ask question at the end of the presentation. Questions can also be submitted through the online webcast during the presentation. For questions or further information, please contact: CEO and Founder André S. Eriksen, +45 2125 7076, email: ceo@asetek.com CFO Peter Dam Madsen, +45 2080 7200, email: investor.relations@asetek.com About Asetek: Asetek, the creator of the all-in-one liquid cooler, is the global leader for liquid cooling solutions for high performance gaming and enthusiast PCs, and environmentally aware data centers. Founded in 2000, Asetek is headquartered in Denmark and has operations in China, Taiwan and the United States. Asetek is listed on the Oslo Stock Exchange (ASTK.OL). www.asetek.com This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act. This information was brought to you by Cision http://news.cision.com https://news.cision.com/asetek/r/asetek---q3-2021--soft-q3-as-expected---long-term-growth-ambitions-remain-firm,c3442036 The following files are available for download: https://mb.cision.com/Main/6758/3442036/1487517.pdf Release https://mb.cision.com/Public/6758/3442036/a1056886018fcbdc.pdf Asetek Q3 2021 Report https://mb.cision.com/Public/6758/3442036/bb98a50c8e74ce41.pdf Asetek Q3 2021 presentation View original content:https://www.prnewswire.com/news-releases/asetek--q3-2021-soft-q3-as-expected--long-term-growth-ambitions-remain-firm-301410641.html SOURCE Asetek

Tags:
News

Marathon Oil Corporation Declares Third Quarter 2021 Dividend

Marathon Oil Corporation Declares Third Quarter 2021 Dividend HOUSTON, Oct. 27, 2021 /PRNewswire/ -- Marathon Oil Corporation (NYSE: MRO) announced today that the Company's board of directors has declared a dividend of 6 cents per share on Marathon Oil Corporation common stock. This represents a 20% increase from the Company's last quarterly base dividend payment of 5 cents per share. The dividend is payable on December 10, 2021, to stockholders of record on November 17, 2021. "This is the third consecutive increase to our quarterly base dividend, representing a cumulative 100% increase since the end of last year," said Chairman, President, and CEO Lee Tillman. "This decision is fully consistent with our commitment to pay a competitive and sustainable dividend to our shareholders. It also reflects the increased confidence we have in our business due to the substantial improvements we have realized in our cost structure and free cash flow breakeven." For more information on Marathon Oil Corporation, visit the Company's website at https://www.marathonoil.com. Forward-Looking StatementsThis release contains forward-looking statements. All statements, other than statements of historical fact, including, without limitation, statements regarding the Company's future dividend payments and other future performance, are forward-looking statements. Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "outlook," "plan," "positioned," "project," "seek," "should," "target," "will," "would," or similar words may be used to identify forward-looking statements; however, the absence of these words does not mean that the statements are not forward-looking. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially from those projected, including, but not limited to: conditions in the oil and gas industry, including supply/demand levels for crude oil and condensate, NGLs and natural gas and the resulting impact on price; changes in expected reserve or production levels; changes in political or economic conditions in the U.S. and Equatorial Guinea, including changes in foreign currency exchange rates, interest rates, and inflation rates; actions taken by the members of the Organization of the Petroleum Exporting Countries and Russia affecting the production and pricing of crude oil; other global and domestic political, economic or diplomatic developments; capital available for exploration and development; risks related to the Company's hedging activities; voluntary or involuntary curtailments, delays or cancellations of certain drilling activities; well production timing; liability or corrective actions resulting from litigation or other proceedings and investigations; drilling and operating risks; lack of, or disruption in, access to storage capacity, pipelines or other transportation methods; availability of drilling rigs, materials and labor, including the costs associated therewith; difficulty in obtaining necessary approvals and permits; non-performance by third parties of contractual obligations; unforeseen hazards such as weather conditions, a health pandemic (including COVID-19), acts of war or terrorist acts and the government or military response thereto; cyber-attacks; changes in safety, health, environmental, tax and other regulations, requirements or initiatives, including initiatives addressing the impact of global climate change, air emissions, or water management; other geological, operating and economic considerations; and the risk factors, forward-looking statements and challenges and uncertainties described in the Company's 2020 Annual Report on Form 10-K and other public filings and press releases, available at https://ir.marathonoil.com/. Except as required by law, the Company undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise. Media Relations Contact:Stephanie Gentry: 832-206-3746 Investor Relations Contacts:Guy Baber: 713-296-1892John Reid: 713-296-4380 View original content to download multimedia:https://www.prnewswire.com/news-releases/marathon-oil-corporation-declares-third-quarter-2021-dividend-301410375.html SOURCE Marathon Oil Corporation

Tags:
News

Core Lab Reports Third Quarter 2021 Results From Continuing Operations:

Core Lab Reports Third Quarter 2021 Results From Continuing Operations:- REVENUE OF $118.0 MILLION- GAAP EPS OF $0.02; $0.18, EX-ITEMS- FREE CASH FLOW IMPROVES SEQUENTIALLY TO $8.8 MILLION- REDUCED NET DEBT BY $5.4 MILLION- ANNOUNCES Q4 2021 QUARTERLY DIVIDEND AMSTERDAM, Oct. 27, 2021 /PRNewswire/ -- Core Laboratories N.V. (NYSE: "CLB US" and Euronext Amsterdam: "CLB NA") ("Core", "Core Lab", or the "Company") reported third quarter 2021 revenue of $118,000,000. Core's operating income was $6,600,000, with earnings per diluted share ("EPS") of $0.02, all in accordance with U.S. generally accepted accounting principles ("GAAP"). Operating income, ex-items, a non-GAAP financial measure, was $13,000,000, yielding operating margins of 11% and EPS, ex-items, of $0.18. Third quarter 2021 results were adversely impacted by multiple weather events along the U.S. Gulf Coast, continued project delays due to COVID-19 in international markets and supply chain disruptions. During the third quarter of 2021, the Company recorded approximately $6,500,000 of non-cash stock compensation expense, in accordance with FASB ASC Topic 718, "Compensation - Stock Compensation", which requires full recognition of the award when an employee reaches their eligible retirement age. These long-term incentive awards remain fully subject to future vesting triggers based on the Company's long-standing financial performance metrics. A full reconciliation of non-GAAP financial measures and year-over-year comparisons are included in the attached financial tables. Core's CEO, Larry Bruno stated, "Core continues to execute on its key strategic objectives by introducing new product and service offerings throughout our global network, and by posting sequential improvements in cash from operations and Free Cash Flow. At the same time, Core reduced net debt during the quarter, further improving the Company's leverage ratio. Operationally, we continue to execute at a high level and were able to expand operating margins in both business segments during the quarter. However, back-to-back named storms along the U.S. Gulf Coast in the third quarter of 2021 adversely affected activity, causing prolonged shutdown of Core's clients' offshore operations and extended power outages at several Company facilities. Additionally, pandemic-related travel restrictions and complications are still affecting the pace of international activity in the Middle East, Asia Pacific and South America regions. As a result of these on-going pandemic-related disruptions, the progress on international projects has been slower than anticipated, moderating expectations for the next several months. However, we see momentum building across all international regions and remain optimistic about the international outlook for 2022 and beyond." Reservoir Description Reservoir Description operations are closely correlated with international and offshore activity levels, with approximately 80% of revenue sourced from outside the U.S. Reservoir Description revenue in the third quarter of 2021 was $79,000,000, up slightly sequentially. Operating income for the third quarter of 2021 on a GAAP basis was $4,400,000, while operating income, ex-items, was $8,600,000, up 14% sequentially, yielding operating margins, ex-items, of 11%, up 130 basis points sequentially. As previously noted, weather events in the U.S. and international pandemic-related complications adversely impacted third quarter 2021 performance. During the third quarter of 2021, under the direction of the CarbonNet Project, Core Lab expanded the laboratory analytical program to include advanced rock and fluid testing on core samples from the Bass Straight, off the southeast coast of Australia. Core's initial analytical program to access this CO2 sequestration opportunity, previously reported in the third quarter of 2020, characterized 300 feet of conventional core from the Gular-1 appraisal well. The expanded program employs Core Lab's proprietary technologies to provide more detailed insight into pore system properties, rock-fluid compatibility, gas and liquid flow behavior, as well as geomechanical properties. The results of this advanced testing will further expand the CarbonNet Project's understanding of the CO2 storage capacity, optimal CO2 injection methodologies and seal integrity, all of which are critical to understanding and reducing geologic risk associated with the project. These data sets will be used to evaluate CO2 injectivity over the life of the project, and to verify proper subsurface containment of the injected CO2. The biggest risk in evaluating any CO2 sequestration project is failing to properly assess the complexity of the targeted subsurface geologic formation and the in situ pore fluids. Core Lab's expertise in evaluating subsurface geology and fluid flow through natural porous media is essential for accessing these types of CO2 sequestration projects. Core Lab continues to expand laboratory technologies in the Middle East region to meet client demand for rock and fluid laboratory analytical programs. Core remains a key partner by providing critical data sets for evaluating opportunities in both new and mature fields. During the third quarter of 2021, Core's scientists were engaged by a National Oil Company to conduct a comprehensive study involving the analysis of reservoir fluids (crude oil, natural gas and formation water). The properties of these reservoir fluids at a range of subsurface temperature and pressure conditions must be precisely understood in order to predict hydrocarbon recovery over the life of the field. Pressure-Volume-Temperature ("PVT") data sets are used to determine the phase behavior of hydrocarbons at various reservoir stress conditions. As part of this analytical program, Core conducted advanced PVT studies to evaluate the potential injection options for a large-scale Enhanced Oil Recovery ("EOR") program. Although this field is naturally prolific, it is not exempt from physical laws affecting all reservoirs and their inevitable decline. Utilizing Core's proprietary, fully visual PVT cells, Core's scientists precisely determined changes in the physical and compositional properties of the hydrocarbons that will occur over the life of the field. The analytical program is enabling the operator to model reservoir performance, sustain current production levels and optimize ultimate recovery from the reservoir. Further work will be done to evaluate CO2 injection as a source of EOR. Production Enhancement Production Enhancement operations, which are focused on complex completions in unconventional, tight-oil reservoirs in the U.S., as well as conventional offshore projects across the globe, posted third quarter 2021 revenue of $39,200,000, down 3% sequentially. The sequential decline in revenue was primarily associated with lower international product shipments, which can vary from quarter to quarter, and the suspension of rig operations tied to weather events in the Gulf of Mexico. Additionally, growth opportunities were adversely impacted during the quarter due to longer lead times in the supply chain and short supply of certain raw materials. Operating income on a GAAP basis was $2,800,000, while operating income, ex-items, was $5,000,000, up 29% sequentially. The improvement of third quarter 2021 operating margins to 13%, expanding 320 basis points sequentially, was underpinned by gains in manufacturing efficiencies and continued market penetration of the Company's pre-assembled GoGun™ and oriented GoGun™. During the third quarter of 2021, Core's Production Enhancement segment was approached by a client conducting business in the North Sea to provide plug and abandonment expertise to optimize a slot recovery process through a clean casing recovery program. The slot recovery is a technique that can be used to sidetrack existing wells, allowing access to additional crude oil from untapped or poorly drained reservoir sections, or well abandonment. The traditional method of milling and pulling the well's casing during slot recovery can be costly and time-consuming. The client, after discussion with Core's Production Enhancement engineers, decided to utilize Core's proprietary Plug and Abandonment Perforating System ("PAC™"). PAC™ enables clean casing recovery, allowing for the efficient removal of interior casing strings without risking damage to the outer casing. The PAC™ technology employs an innovative, controlled energetic event that can be configured to penetrate anywhere from one to four casing strings without penetrating or compromising the outer casing. The circumferential coverage provided by the PAC™ technology enables the operator to establish circulation in the annular space between casing strings, facilitating wash operations and the efficient removal of the interior casing. Client feedback indicates the PAC™ system provided greater than 95% cleaning coverage of the annular space outside of the first casing string without compromising the second casing layer. Core's expertise and technologies allowed for reduced rig time and efficient recovery of the interior casing, while eliminating risks and creating opportunities for production from untapped reservoir sections. During the third quarter of 2021, Core's completion diagnostic services were called upon by a Permian Basin client to assess a new approach to cementing operations in its horizontal unconventional wells. It is difficult to maintain stage containment when fracing multi-stage laterals in which non-uniform cement placement has occurred. Non-uniform cement placement leaves channels behind pipe through which frac fluid can migrate between targeted intervals. Channels behind pipe can result in some targeted intervals being understimulated. The client wanted to evaluate if casing rotation while cementing would eliminate channels behind pipe. Core utilized its proprietary SpectraStim™ tracers and SpectraScan™ logging technologies to compare the degree of frac fluid containment in a well in which casing rotation was employed during the cementing operation. The well was then compared with adjacent wells in which no casing rotation had been employed. Core's completion diagnostics engineers were able to confirm more uniform cement placement and better containment of frac fluid when pipe rotation was employed. In comparing oil production between the rotated pipe well and the wells in which no pipe rotation had been performed, the client observed an increase of 800 barrels of oil per 1000 feet of treated well in the first 80 days of production from the rotated pipe well. With these favorable results, the operator elected to implement pipe rotation in subsequent cementing operations. Core's completion diagnostic technologies continue to assist operators in evaluating innovations in completion techniques. Free Cash Flow and Dividend Core continues to focus on generating free cash flow ("FCF"), a non-GAAP financial measure defined as cash from operations less capital expenditures. For the third quarter of 2021, cash from operations increased 25% sequentially to $11,900,000, with capital expenditures of $3,100,000, yielding $8,800,000 of FCF, up 33% sequentially. This marks another quarter in the Company's long history of generating positive FCF. For the third quarter of 2021, after funding the quarterly dividend, free cash was primarily used for reducing net debt by $5,400,000, or 3%, bringing Core's leverage ratio (calculated as total net debt divided by trailing twelve months adjusted EBITDA) down to 2.10 as of 30 September 2021. Core will continue its strategy of applying excess free cash towards reducing the Company's leverage ratio. On 28 July 2021, Core's Board of Supervisory Directors ("Board") announced a quarterly cash dividend of $0.01 per share of common stock, which was paid on 24 August 2021 to shareholders of record on 9 August 2021. Dutch withholding tax was deducted from the dividend at a rate of 15%. On 27 October 2021, the Board approved a cash dividend of $0.01 per share of common stock payable in the fourth quarter of 2021. The fourth quarter dividend will be payable on 29 November 2021, to shareholders of record on 8 November 2021. Dutch withholding tax will be deducted from the dividend at a rate of 15%. Return On Invested Capital The Board and the Company's Executive Management continue to focus on strategies that maximize return on invested capital ("ROIC") and FCF, factors that have high correlation to total shareholder return. Core's commitment to an asset-light business model and disciplined capital stewardship promote capital efficiency and are designed to produce more predictable and superior long-term ROIC. The Board has established an internal performance metric of demonstrating superior ROIC performance relative to the oilfield service companies listed as Core's Comp Group by Bloomberg, as the Company continues to believe superior ROIC will result in higher total return to shareholders. As of 30 September 2021, Core Lab's ROIC was 10.9% as calculated using the Bloomberg formula. Industry and Core Lab Outlook and Guidance The global crude-oil market continues to tighten, as demand for crude oil continues to approach pre-COVID levels, resulting in noticeable increases to crude-oil commodity prices. Current crude-oil commodity prices may also drive a higher level of investment, and urgency, in international offshore crude-oil development projects in 2022 and beyond. These crude-oil market fundamentals are reflected in the gradual increase in the international rig count, with more oilfield equipment coming under contract. Core sees this as a leading indicator of a growing international cycle. With Core Lab having more than 70% of its revenue exposed to international activity, both business segments remain active on international projects. As additional field development projects emerge, wells need to be drilled and reservoir rock and fluid sampled before Reservoir Description more fully participates in the cycle. As pandemic disruptions abate, the expansion of international developments provides growth opportunities for both segments into 2022 and beyond, with a particular focus on the South Atlantic Margin, Latin America, and the Middle East. International revenue for the third quarter 2021 was up 9% year-over-year. For the fourth quarter 2021, Core sees continued growth in year-over-year international revenue. Additionally, U.S. activity is projected to continue to moderately progress as 2021 comes to a close. Core projects fourth quarter 2021 revenue to range from $121,000,000 to $124,000,000 and operating income of $13,000,000 to $15,500,000, yielding operating margins of approximately 12%. As previously stated in Core's prior earnings calls, financial performance and incremental margins will be temporarily impacted as temporary cost reductions measures announced in 2020 continue to be reinstated. Once these costs are fully restored, Core expects its historical incremental margin performance to return as client activity expands. EPS for the fourth quarter of 2021 is expected to be approximately $0.18 to $0.22. The Company's fourth quarter 2021 guidance is based on projections for underlying operations and excludes gains and losses in foreign exchange. Fourth quarter 2021 guidance also assumes an effective tax rate of 20%. Earnings Call Scheduled The Company has scheduled a conference call to discuss Core's third quarter 2021 earnings announcement. The call will begin at 7:30 a.m. CDT / 2:30 p.m. CEST on Thursday, 28 October 2021. To listen to the call, please go to Core's website at www.corelab.com. Core Laboratories N.V. is a leading provider of proprietary and patented reservoir description and production enhancement services and products used to optimize petroleum reservoir performance. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. This release, as well as other statements we make, includes forward-looking statements regarding the future revenue, profitability, business strategies and developments of the Company made in reliance upon the safe harbor provisions of Federal securities law. The Company's outlook is subject to various important cautionary factors, including risks and uncertainties related to the oil and natural gas industry, business conditions, international markets, international political climates, public health crises, such as the COVID-19 pandemic, and any related actions taken by businesses and governments, and other factors as more fully described in the Company's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. These important factors could cause the Company's actual results to differ materially from those described in these forward-looking statements. Such statements are based on current expectations of the Company's performance and are subject to a variety of factors, some of which are not under the control of the Company. Because the information herein is based solely on data currently available, and because it is subject to change as a result of changes in conditions over which the Company has no control or influence, such forward-looking statements should not be viewed as assurance regarding the Company's future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances that may arise after the date of this press release, except as required by law. Visit the Company's website at www.corelab.com. Connect with Core Lab on Facebook, LinkedIn and YouTube. CORE LABORATORIES N.V. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share data) (Unaudited) Three Months Ended % Variance September 30, 2021 June 30, 2021 September 30, 2020 vs. Q2-21 vs. Q3-20 REVENUE $ 117,985 $ 118,745 $ 105,382 (0.6)% 12.0% OPERATING EXPENSES: Costs of services and sales 92,918 93,841 81,038 (1.0)% 14.7% General and administrative expense 15,115 9,670 8,937 56.3% 69.1% Depreciation and amortization 4,496 4,751 5,164 (5.4)% (12.9)% Other (income) expense, net (1,184) (2,317) (1,088) NM NM Total operating expenses 111,345 105,945 94,051 5.1% 18.4% OPERATING INCOME (LOSS) 6,640 12,800 11,331 (48.1)% (41.4)% Interest expense 2,669 2,530 4,672 5.5% (42.9)% Income (loss) from continuing operations before income tax expense 3,971 10,270 6,659 (61.3)% (40.4)% Income tax expense (benefit) 2,962 2,053 3,663 44.3% (19.1)% Income (loss) from continuing operations 1,009 8,217 2,996 (87.7)% (66.3)% Income (loss) from discontinued operations, net of income taxes - - - NM NM Net income (loss) 1,009 8,217 2,996 (87.7)% (66.3)% Net income (loss) attributable to non-controlling interest 135 157 33 (14.0)% 309.1% Net income (loss) attributable to Core Laboratories N.V. $ 874 $ 8,060 $ 2,963 (89.2)% (70.5)% Diluted earnings (loss) per share from continuing operations $ 0.02 $ 0.17 $ 0.07 (88.2)% (71.4)% Diluted earnings (loss) per share attributable to Core Laboratories N.V. $ 0.02 $ 0.17 $ 0.07 (88.2)% (71.4)% Weighted average common shares outstanding - assuming dilution 47,125 47,103 44,899 -% 5.0% Effective tax rate 75 % 20 % 55 % NM NM SEGMENT INFORMATION: Revenue: Reservoir Description $ 78,775 $ 78,252 $ 80,060 0.7% (1.6)% Production Enhancement 39,210 40,493 25,322 (3.2)% 54.8% Total $ 117,985 $ 118,745 $ 105,382 (0.6)% 12.0% Operating income (loss): Reservoir Description $ 4,425 $ 7,265 $ 11,022 (39.1)% (59.9)% Production Enhancement 2,779 3,831 (321) (27.5)% NM Corporate and Other (564) 1,704 630 NM NM Total $ 6,640 $ 12,800 $ 11,331 (48.1)% (41.4)% "NM" means not meaningful CORE LABORATORIES N.V. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share data) (Unaudited) Nine Months Ended September 30, % Variance 2021 2020 REVENUE $ 345,113 $ 373,518 (7.6)% OPERATING EXPENSES: Costs of services and sales 270,909 286,849 (5.6)% General and administrative expense 33,246 37,725 (11.9)% Depreciation and amortization 14,118 16,030 (11.9)% Impairments, inventory write-down and other charges - 132,136 NM Other (income) expense, net (4,222) 987 NM Total operating expenses 314,051 473,727 (33.7)% OPERATING INCOME (LOSS) 31,062 (100,209) NM Interest expense 6,562 11,452 (42.7)% Income (loss) from continuing operations before income tax expense 24,500 (111,661) NM Income tax expense (benefit) 7,068 (644) NM Income (loss) from continuing operations 17,432 (111,017) NM Income (loss) from discontinued operations, net of income taxes - - NM Net income (loss) 17,432 (111,017) NM Net income (loss) attributable to non-controlling interest 393 157 150.3% Net income (loss) attributable to Core Laboratories N.V. $ 17,039 $ (111,174) NM Diluted earnings (loss) per share from continuing operations $ 0.37 $ (2.50) NM Diluted earnings (loss) per share attributable to Core Laboratories N.V. $ 0.36 $ (2.50) NM Weighted average common shares outstanding - assuming dilution 46,833 44,470 5.3% Effective tax rate 29 % 1 % 4902.0% SEGMENT INFORMATION: Revenue: Reservoir Description $ 233,512 $ 271,203 (13.9)% Production Enhancement 111,601 102,315 9.1% Total $ 345,113 $ 373,518 (7.6)% Operating income (loss): Reservoir Description $ 21,742 $ 35,618 (39.0)% Production Enhancement 8,170 (137,944) NM Corporate and Other 1,150 2,117 NM Total $ 31,062 $ (100,209) NM "NM" means not meaningful CORE LABORATORIES N.V. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (amounts in thousands) (Unaudited) % Variance ASSETS: September 30, 2021 June 30, 2021 December 31, 2020 vs. Q2-21 vs. Q4-20 Cash and cash equivalents $ 19,050 $ 33,617 $ 13,806 (43.3)% 38.0% Accounts receivable, net 95,297 93,217 83,192 2.2% 14.6% Inventories 44,056 38,946 38,151 13.1% 15.5% Other current assets 28,842 35,369 30,699 (18.5)% (6.0)% Total current assets 187,245 201,149 165,848 (6.9)% 12.9% Property, plant and equipment, net 112,736 112,398 115,293 0.3% (2.2)% Right of use assets 65,379 66,482 66,385 (1.7)% (1.5)% Intangibles, goodwill and other long-term assets, net 220,919 218,396 221,053 1.2% (0.1)% Total assets $ 586,279 $ 598,425 $ 568,579 (2.0)% 3.1% LIABILITIES AND EQUITY: Accounts payable $ 35,015 $ 30,383 $ 23,028 15.2% 52.1% Short-term operating lease liabilities 12,191 12,150 11,437 0.3% 6.6% Other current liabilities 45,747 48,321 55,285 (5.3)% (17.3)% Total current liabilities 92,953 90,854 89,750 2.3% 3.6% Long-term debt, net 188,463 208,305 259,433 (9.5)% (27.4)% Long-term operating lease liabilities 53,831 55,121 56,108 (2.3)% (4.1)% Other long-term liabilities 90,018 89,801 87,715 0.2% 2.6% Total equity 161,014 154,344 75,573 4.3% 113.1% Total liabilities and equity $ 586,279 $ 598,425 $ 568,579 (2.0)% 3.1% "NM" means not meaningful CORE LABORATORIES N.V. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) (Unaudited) Nine Months Ended September 30, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Income (loss) from continuing operations $ 17,432 $ (111,017) Income (loss) from discontinued operations - - Net Income (loss) $ 17,432 $ (111,017) Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation 16,646 16,254 Depreciation and amortization 14,118 16,030 Deferred income taxes 3,058 (13,014) Impairments, inventory write-down and other charges - 132,136 Gain on sale of business (1,012) - Accounts receivable (12,135) 45,229 Inventories (3,599) (2,880) Accounts payable 9,661 (13,262) Other adjustments to net income (loss) (14,744) 238 Net cash provided by operating activities $ 29,425 $ 69,714 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures $ (8,789) $ (8,578) Proceeds from sale of business, net of cash sold 513 - Other investing activities 1,747 (952) Net cash used in investing activities $ (6,529) $ (9,530) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of debt borrowings $ (194,000) $ (71,000) Proceeds from debt borrowings 123,000 30,000 Proceeds from issuance of common shares 60,000 - Transaction costs related to issuance of common shares (861) - Dividends paid (1,372) (12,001) Repurchase of common shares (3,911) (1,593) Other financing activities (508) (1,536) Net cash used in financing activities $ (17,652) $ (56,130) NET CHANGE IN CASH AND CASH EQUIVALENTS 5,244 4,054 CASH AND CASH EQUIVALENTS, beginning of period 13,806 11,092 CASH AND CASH EQUIVALENTS, end of period $ 19,050 $ 15,146 Non-GAAP Information Management believes that the exclusion of certain income and expenses enables it to evaluate more effectively the Company's operations period-over-period and to identify operating trends that could otherwise be masked by the excluded Items. For this reason, we use certain non-GAAP measures that exclude these Items; and we feel that this presentation provides a clearer comparison with the results reported in prior periods. The non-GAAP financial measures should be considered in addition to, and not as a substitute for, the financial results prepared in accordance with GAAP, as more fully discussed in the Company's financial statement and filings with the Securities and Exchange Commission. Reconciliation of Operating Income (Loss), Income (Loss) from Continuing Operations and Diluted Earnings (Loss) Per Share from Continuing Operations (amounts in thousands, except per share data) (Unaudited) Operating Income (loss) from Continuing Operations Three Months Ended September 30, 2021 June 30, 2021 September 30, 2020 GAAP reported $ 6,640 $ 12,800 $ 11,331 Stock compensation 1 6,506 - - Foreign exchange losses (gains) (140) 352 982 Excluding specific items $ 13,006 $ 13,152 $ 12,313 Income (loss) from Continuing Operations Three Months Ended September 30, 2021 June 30, 2021 September 30, 2020 GAAP reported $ 1,009 $ 8,217 $ 2,996 Stock compensation 1 6,506 - - Debt restructuring - - 1,223 Impact of higher (lower) tax rate 2 867 - 2,773 Foreign exchange losses (gains) (111) 281 344 Excluding specific items $ 8,271 $ 8,498 $ 7,336 Diluted Earnings (Loss) Per Share from Continuing Operations Three Months Ended September 30, 2021 June 30, 2021 September 30, 2020 GAAP reported $ 0.02 $ 0.17 $ 0.07 Stock compensation 1 0.14 - - Debt restructuring - - 0.03 Impact of higher (lower) tax rate 2 0.02 - 0.06 Foreign exchange losses (gains) - 0.01 - Excluding specific items $ 0.18 $ 0.18 $ 0.16 (1) Three months ended September 30, 2021 includes stock compensation expense recognized pursuant to FASB ASC 718 "Stock Compensation" associated with employees reaching eligible retirement age, which is nondeductible for tax purposes. (2) Three months ended September 30, 2021 and 2020 includes adjustments to reflect tax expense at a normalized rate of 20%. Segment Information (amounts in thousands) (Unaudited) Operating Income (Loss) from Continuing Operations Three Months Ended September 30, 2021 Reservoir Description Production Enhancement Corporate and Other GAAP reported $ 4,425 $ 2,779 $ (564) Foreign exchange losses (267) 109 18 Stock compensation 4,420 2,086 - Excluding specific items $ 8,578 $ 4,974 $ (546) Return on Invested Capital Return on Invested Capital ("ROIC") is presented based on our belief that this non-GAAP measure is useful information to investors and management when comparing our profitability and the efficiency with which we have employed capital over time relative to other companies. ROIC is not a measure of financial performance under GAAP and should not be considered as an alternative to net income. ROIC is defined by Bloomberg as Net Operating Profit (Loss) ("NOP") less Cash Operating Tax ("COT") divided by Total Invested Capital ("TIC"), where NOP is defined as GAAP net income before minority interest plus the sum of income tax expense, interest expense, and pension expense less pension service cost and COT is defined as income tax expense plus the sum of the change in net deferred taxes, and the tax effect on interest expense and TIC is defined as GAAP stockholder's equity plus the sum of net long-term debt, lease liabilities, allowance for doubtful accounts, net balance of deferred taxes, and income tax payable. The Board has established an internal performance metric of demonstrating superior ROIC performance relative to the oilfield service companies listed as Core's Comp Group by Bloomberg. As of 30 September 2021, Core's calculation of ROIC using Bloomberg's formula, as described above, was 10.9%. Free Cash Flow Core uses the non-GAAP measure of free cash flow to evaluate its cash flows and results of operations. Free cash flow is an important measurement because it represents the cash from operations, in excess of capital expenditures, available to operate the business and fund non-discretionary obligations. Free cash flow is not a measure of operating performance under GAAP and should not be considered in isolation nor construed as an alternative consideration to operating income, net income, earnings per share, or cash flows from operating, investing, or financing activities, each as determined in accordance with GAAP. Free cash flow should not be considered a measure of liquidity. Moreover, since free cash flow is not a measure determined in accordance with GAAP and thus is susceptible to varying interpretations and calculations, free cash flow as presented may not be comparable to similarly titled measures presented by other companies. Computation of Free Cash Flow (amounts in thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Net cash provided by operating activities $ 11,952 $ 29,425 Capital expenditures (3,132) (8,789) Free cash flow $ 8,820 $ 20,636 View original content to download multimedia:https://www.prnewswire.com/news-releases/core-lab-reports-third-quarter-2021-results-from-continuing-operations-301410272.html SOURCE Core Laboratories N.V.

Tags:
News

Valero Energy Corporation Declares Regular Cash Dividend on Common Stock

Valero Energy Corporation Declares Regular Cash Dividend on Common Stock SAN ANTONIO, Oct. 27 /BusinessWire/ -- The Board of Directors of Valero Energy Corporation (NYSE:VLO,Valero) has declared a regular quarterly cash dividend on common stock of $0.98 per share. The dividend is payable on December 9, 2021 to holders of record at the close of business on November 18, 2021. About Valero Valero Energy Corporation, through its subsidiaries (collectively, "Valero"), is an international manufacturer and marketer of transportation fuels and petrochemical products. Valero is a Fortune 500 company based in San Antonio, Texas, and owns 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day and 12 ethanol plants with a combined production capacity of approximately 1.6 billion gallons per year. The petroleum refineries are located in the United States (U.S.), Canada and the United Kingdom (U.K.), and the ethanol plants are located in the Mid-Continent region of the U.S. Valero is also a joint venture partner in Diamond Green Diesel, which owns and operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel owns North America's largest biomass-based diesel plant. Valero sells its products in the wholesale rack or bulk markets in the U.S., Canada, the U.K., Ireland and Latin America. Approximately 7,000 outlets carry Valero's brand names. Please visit www.investorvalero.com for more information. View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006149/en/   back

Tags:
News

Oceaneering Reports Third Quarter 2021 Results

Oceaneering Reports Third Quarter 2021 Results HOUSTON, Oct. 27, 2021 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported a net loss of $7.4 million, or $(0.07) per share, on revenue of $467 million for the three months ended September 30, 2021. Adjusted net loss was $1.4 million, or $(0.01) per share, reflecting the impact of $0.3 million of pre-tax adjustments associated with foreign exchange losses recognized during the quarter and $5.8 million of discrete tax adjustments, primarily due to changes in valuation allowances. During the prior quarter ended June 30, 2021, Oceaneering reported net income of $6.2 million, or $0.06 per share, on revenue of $498 million. Adjusted net income was $10.4 million, or $0.10 per share, reflecting the impact of $3.2 million of pre-tax adjustments associated with a loss on the sale of an asset and foreign exchange losses recognized during the quarter and $1.6 million of discrete tax adjustments. Adjusted operating income (loss), operating margins, net income (loss) and earnings (loss) per share, EBITDA and adjusted EBITDA (as well as EBITDA and adjusted EBITDA margins), and free cash flow are non-GAAP measures that exclude the impacts of certain identified items. Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS), EBITDA and Adjusted EBITDA and Margins, Free Cash Flow, 2021 Adjusted EBITDA Estimates, Adjusted Operating Income (Loss) and Margins by Segment, and EBITDA and Adjusted EBITDA and Margins by Segment. These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information. Summary of Results (in thousands, except per share amounts) Three Months Ended Nine Months Ended Sep 30, Jun 30, Sep 30, 2021 2020 2021 2021 2020 Revenue $ 466,814 $ 439,743 $ 498,199 $ 1,402,566 $ 1,403,627 Gross Margin 59,848 29,651 68,397 184,902 118,940 Income (Loss) from Operations 15,769 (60,620) 22,819 52,371 (446,559) Net Income (Loss) (7,370) (79,365) 6,241 (10,494) (471,751) Diluted Earnings (Loss) Per Share $ (0.07) $ (0.80) $ 0.06 $ (0.11) $ (4.76) For the third quarter of 2021: Consolidated EBITDA was $50.3 million Consolidated Operating Income was $15.8 million Cash flow generated from operations was $36.5 million Free cash flow was $24.0 million Cash position decreased by $8.4 million, from $456 million to $448 million An additional $32.5 million of our 2024 senior notes were repurchased through open-market transactionsInitial guidance for 2022: Consolidated EBITDA of $225 million to $275 million Free cash flow generation similar to 2021 Increased growth capital expenditures as compared to 2021Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Our planning and preparation were instrumental in our team's ability to navigate through the challenges presented during the third quarter, which included hurricanes, inflation, a tightening labor market, and a constrained global supply chain. Despite these challenges, we delivered third quarter 2021 EBITDA results consistent with our original guidance and continued to generate cash and pay down debt. For the full year of 2021, we expect to generate adjusted EBITDA within the narrowed range of $210 million to $220 million. I am encouraged by the positive market fundamentals supporting our traditional businesses as well as our increasing participation in emerging markets. "During the third quarter of 2021, we produced consolidated EBITDA of $50.3 million, a decrease from the second quarter of 2021 but within the guidance range provided at the beginning of the quarter. Offshore work in our energy-focused businesses remained seasonally active during the third quarter. However, our operations in the Gulf of Mexico were muted by Hurricane Ida and high loop currents. In general, each of our five segments performed as forecast at the beginning of the third quarter. Segment Results: "Sequentially, Subsea Robotics (SSR) revenue increased slightly, with good offshore activity levels as compared to the second quarter. However, operating income declined, primarily due to lower margins for remotely operated vehicle (ROV) services attributed to changes in geographic mix and a special bonus that recognized technicians for enduring extended work rotations throughout 2021 due to COVID-19 challenges. As a result, SSR adjusted EBITDA margin of 29% was slightly lower, as compared to the second quarter. "Third quarter 2021 ROV days on hire were sequentially higher for both drill support and vessel-based services, as compared to the second quarter of 2021. Fleet utilization rose slightly, averaging 63% for the quarter, as compared to 62% in the second quarter. Our fleet use during the quarter was 57% in drill support and 43% in vessel-based activity, compared to 58% and 42%, respectively, during the second quarter. Third quarter 2021 average ROV revenue per day on hire of $7,858 was 2% lower than in the second quarter of 2021. "Sequentially, Manufactured Products (MP) third quarter 2021 operating income and operating income margin were essentially flat with the second quarter, despite marginally lower revenue. Third quarter 2021 revenue of $75.4 million remained sub-optimal, which continued to challenge our ability to leverage the cost base of this business. Order intake during the quarter was solid, with backlog on September 30, 2021 increasing to $334 million, compared to our June 30, 2021 backlog of $315 million. Our book-to-bill ratio was 1.3 for the nine months ended September 30, 2021 and 1.0 for the trailing 12 months. "As expected, the third quarter 2021 Offshore Projects Group (OPG) operating income was relatively flat, as compared to the second quarter of 2021, on an 11% decline in revenue. Revenue benefited from good ongoing seasonal activity in inspection, maintenance and repair (IMR) work in the Gulf of Mexico, despite some work delays caused by Hurricane Ida and high loop currents. The conclusion of field activities on several projects in Angola was the primary driver for the sequentially lower third quarter revenue. Operating income margin improved from 7% in the second quarter of 2021 to 8% in the third quarter of 2021, primarily due to improved performance on the Angola riserless light well intervention project. "Integrity Management and Digital Solutions (IMDS) sequential operating income was higher on relatively flat revenue. Operating income margin improved to 9% in the third quarter of 2021, as efficiency improvements continue to show incremental benefits. "Aerospace and Defense Technologies (ADTech) third quarter 2021 operating income declined from the second quarter of 2021 on a 15% decrease in revenue. Operating income margin declined to 16%, as expected, due to a higher component of lower-margin manpower activities. At the corporate level for the third quarter of 2021, Unallocated Expenses of $31.8 million were slightly higher as compared to the second quarter of 2021, but less than expected, primarily due to delayed spending on information technology infrastructure. Fourth Quarter and Full Year Outlook: "Looking forward on a consolidated basis, we believe that our fourth quarter 2021 EBITDA will be similar to our third quarter 2021 results on slightly higher revenue. Sequentially, we forecast significantly higher revenue and operating profitability in our Manufactured Products segment, relatively flat activity and operating profitability in our SSR and IMDS segments, relatively flat revenue with lower operating profitability in our ADTech segment, and substantially lower seasonal activity and operating profitability in our OPG segment. Unallocated Expenses are forecast to be in the mid-$30 million range, due primarily to increased spending on information technology infrastructure. "For the full year of 2021, we expect to generate adjusted EBITDA within the narrowed range of $210 million to $220 million. We are also narrowing our guidance for capital expenditures to be in the range of $45 million to $55 million. Our guidance for cash tax payments remains in the range of $40 million to $45 million. We continue to expect $28 million of CARES Act tax refunds, with $4.7 million of this amount received during the third quarter of 2021. The timing of receipt of the remaining $23 million of these payments, whether in 2021 or 2022, remains uncertain. Regardless of the timing of the CARES Act tax refunds, we continue to expect positive free cash flow generation for 2021 to be in excess of that generated in 2020. Initial 2022 Guidance: "Commodity prices appear supportive to continued gradual growth in offshore oil and gas markets over the short to medium term and we anticipate accelerating interest and growth in the offshore renewables market, including offshore wind, over the longer term. We believe that our energy segments are positioned to benefit from the growth in both of these markets. We also believe that our government-focused segment, ADTech, remains well positioned for continued steady growth in the aerospace and defense markets. "Accordingly, looking into 2022, year over year, we are anticipating increased activity and improved operating performance across each of our operating segments, led by gains from SSR and OPG. At this time, we forecast EBITDA in the range of $225 million to $275 million in 2022, serving as the catalyst for generating healthy levels of cash flow from operations. In 2022, we expect capital expenditures to be higher than 2021, as we refocus our efforts on growth. We also expect to generate positive free cash flow at levels similar to 2021. We will provide more specific guidance on our expectations for 2022 during the year-end reporting process. Cash, Liquidity and Growth: "Over the past several years, we have put significant emphasis on maximizing our free cash flow to give us flexibility to address our 2024 debt maturity. As of September 30, 2021, with a cash balance of $448 million and an outstanding balance of $437 million on our 2024 senior notes, we are well positioned to deal with this pending debt maturity. While we will continue to be prudent with our capital spending, we are focused on developing and delivering technologies to grow our businesses in the key areas of energy transition, digital asset management, aerospace and defense, and mobile robotics, while also continuing to deploy technologies that help our customers produce hydrocarbons in the cleanest and safest manner. We believe that the technologies we deliver today, and are focused on developing for the future, will provide us with ample opportunities to grow and transform our business over the coming years." This release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs, future expected business and financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering's: projected 2022 consolidated EBITDA, capital expenditures, and free cash flow generation; expected full year 2021 adjusted EBITDA range; characterization of demand or activity levels as seasonal; references to backlog, to the extent backlog may be an indicator of future revenue, profitability or cash flows; fourth quarter consolidated EBITDA and revenue; expected fourth quarter segment activity levels and operating profitability as compared to third quarter 2021; expected fourth quarter Unallocated Expenses; estimated full year 2021 capital expenditures range, cash tax payments, and CARES Act tax refunds; full year 2021 positive free cash flow; 2022 growth and impact of energy and government markets, and our capabilities in those markets; preparedness for pending debt maturity and capital spending; and technologies providing ample opportunities to grow and transform its business over the coming years. The forward-looking statements included in this release are based on our current expectations and are subject to certain risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Among the factors that could cause actual results to differ materially include: factors affecting the level of activity in the oil and gas industry, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth and the supply and demand of offshore drilling rigs; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development and production companies; the use of subsea completions and our ability to capture associated market share; general economic and business conditions and industry trends; the strength of the industry segments in which we are involved; the continuing effects of the COVID-19 pandemic and the governmental, customer, supplier, and other responses thereto; cancellations of contracts, change orders and other contractual modifications, force majeure declarations and the exercise of contractual suspension rights and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in tax laws, regulations and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts or terrorist attacks. For a more complete discussion of these and other risk factors, please see Oceaneering's latest annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements. Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement. Oceaneering is a global provider of engineered services and products, primarily to the offshore energy industry. Through the use of its applied technology expertise, Oceaneering also serves the defense, aerospace, and entertainment industries. For more information on Oceaneering, please visit www.oceaneering.com. Contact:Mark PetersonVice President, Corporate Development and Investor RelationsOceaneering International, Inc.713-329-4507investorrelations@oceaneering.com OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS Sep 30, 2021 Dec 31, 2020 (in thousands) ASSETS Current assets (including cash and cash equivalents of $447,725 and$452,016) $ 1,185,135 $ 1,170,263 Net property and equipment 510,728 591,107 Other assets 286,109 284,472 Total Assets $ 1,981,972 $ 2,045,842 LIABILITIES AND EQUITY Current liabilities $ 451,246 $ 437,116 Long-term debt 739,980 805,251 Other long-term liabilities 241,649 245,318 Equity 549,097 558,157 Total Liabilities and Equity $ 1,981,972 $ 2,045,842 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended For the Nine Months Ended Sep 30, 2021 Sep 30, 2020 Jun 30, 2021 Sep 30, 2021 Sep 30, 2020 (in thousands, except per share amounts) Revenue $ 466,814 $ 439,743 $ 498,199 $ 1,402,566 $ 1,403,627 Cost of services and products 406,966 410,092 429,802 1,217,664 1,284,687 Gross margin 59,848 29,651 68,397 184,902 118,940 Selling, general and administrative expense 44,079 49,396 45,578 132,531 152,856 Long-lived assets impairments - - - - 68,763 Goodwill impairment - 40,875 - - 343,880 Income (loss) from operations 15,769 (60,620) 22,819 52,371 (446,559) Interest income 662 414 683 1,864 2,202 Interest expense, net of amounts capitalized (9,616) (9,250) (9,729) (29,752) (33,323) Equity in income (losses) of unconsolidated affiliates 189 131 378 1,101 2,002 Other income (expense), net (814) (2,836) (1,955) (4,222) (13,624) Income (loss) before income taxes 6,190 (72,161) 12,196 21,362 (489,302) Provision (benefit) for income taxes 13,560 7,204 5,955 31,856 (17,551) Net Income (Loss) $ (7,370) $ (79,365) $ 6,241 $ (10,494) $ (471,751) Weighted average diluted shares outstanding 99,797 99,297 100,847 99,675 99,209 Diluted earnings (loss) per share $ (0.07) $ (0.80) $ 0.06 $ (0.11) $ (4.76) The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q. SEGMENT INFORMATION For the Three Months Ended For the Nine Months Ended Sep 30, 2021 Sep 30, 2020 Jun 30, 2021 Sep 30, 2021 Sep 30, 2020 ($ in thousands) Subsea Robotics Revenue $ 143,710 $ 119,617 $ 141,371 $ 404,200 $ 378,621 Gross margin $ 28,918 $ 13,378 $ 31,767 $ 84,763 $ 54,175 Operating income (loss) $ 19,533 $ 2,127 $ 21,710 $ 55,862 $ (80,294) Operating income (loss) % 14 % 2 % 15 % 14 % (21) % ROV days available 23,002 23,000 22,750 68,221 68,500 ROV days utilized 14,474 13,601 14,005 40,366 41,955 ROV utilization 63 % 59 % 62 % 59 % 61 % Manufactured Products Revenue $ 75,359 $ 110,416 $ 79,127 $ 241,311 $ 377,520 Gross margin $ 8,544 $ 11,242 $ 8,391 $ 26,939 $ 42,870 Operating income (loss) $ 809 $ (38,198) $ 790 $ 4,352 $ (100,471) Operating income (loss) % 1 % (35) % 1 % 2 % (27) % Backlog at end of period $ 334,000 $ 318,000 $ 315,000 $ 334,000 $ 318,000 Offshore Projects Group Revenue $ 95,580 $ 73,212 $ 107,951 $ 292,765 $ 221,306 Gross margin $ 13,815 $ (1,633) $ 14,566 $ 43,492 $ 3,632 Operating income (loss) $ 7,634 $ (12,282) $ 7,996 $ 24,443 $ (95,740) Operating income (loss) % 8 % (17) % 7 % 8 % (43) % Integrity Management & Digital Solutions Revenue $ 62,806 $ 53,933 $ 64,070 $ 180,924 $ 172,631 Gross margin $ 11,330 $ 7,129 $ 10,462 $ 30,001 $ 22,376 Operating income (loss) $ 5,362 $ 793 $ 4,721 $ 12,557 $ (122,567) Operating income (loss) % 9 % 1 % 7 % 7 % (71) % Aerospace and Defense Technologies Revenue $ 89,359 $ 82,565 $ 105,680 $ 283,366 $ 253,549 Gross margin $ 20,019 $ 16,668 $ 24,603 $ 66,732 $ 51,466 Operating income (loss) $ 14,251 $ 13,097 $ 19,340 $ 50,430 $ 39,498 Operating income (loss) % 16 % 16 % 18 % 18 % 16 % Unallocated Expenses Gross margin $ (22,778) $ (17,133) $ (21,392) $ (67,025) $ (55,579) Operating income (loss) $ (31,820) $ (26,157) $ (31,738) $ (95,273) $ (86,985) Total Revenue $ 466,814 $ 439,743 $ 498,199 $ 1,402,566 $ 1,403,627 Gross margin $ 59,848 $ 29,651 $ 68,397 $ 184,902 $ 118,940 Operating income (loss) $ 15,769 $ (60,620) $ 22,819 $ 52,371 $ (446,559) Operating income (loss) % 3 % (14) % 5 % 4 % (32) % The above Segment Information does not include adjustments for non-recurring transactions. See the tables below under the caption "Reconciliations of Non-GAAP to GAAP Financial Information" for financial measures that our management considers in evaluating our ongoing operations. SELECTED CASH FLOW INFORMATION For the Three Months Ended For the Nine Months Ended Sep 30, 2021 Sep 30, 2020 Jun 30, 2021 Sep 30, 2021 Sep 30, 2020 (in thousands) Capital Expenditures, including Acquisitions $ 12,488 $ 7,980 $ 12,629 $ 35,816 $ 45,840 Depreciation and amortization: Energy Services and Products Subsea Robotics $ 21,483 $ 25,144 $ 22,436 $ 66,871 $ 189,411 Manufactured Products 3,202 44,028 3,248 9,677 63,579 Offshore Projects Group 6,781 15,147 6,862 20,768 98,309 Integrity Management & Digital Solutions 1,114 866 1,091 3,329 125,966 Total Energy Services and Products 32,580 85,185 33,637 100,645 477,265 Aerospace and Defense Technologies 1,427 654 1,404 4,107 1,999 Unallocated Expenses 234 1,712 184 1,185 3,181 Total Depreciation and Amortization $ 34,241 $ 87,551 $ 35,225 $ 105,937 $ 482,445 In the three and nine months ended September 30, 2020, goodwill and long-lived asset impairment expense, reflected in the depreciation and amortization expense above, was $48 million and $358 million, respectively. RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this Press Release also includes non-GAAP financial measures (as defined under SEC Regulation G). We have included Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share, each of which excludes the effects of certain specified items, as set forth in the tables that follow. As a result, these amounts are non-GAAP financial measures. We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business. Furthermore, our management uses these measures as measures of the performance of our operations. We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins, 2021 and 2022 Adjusted EBITDA Estimates, and Free Cash Flow, as well as the following by segment: Adjusted Operating Income and Margins, EBITDA, EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins. We define EBITDA Margin as EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margins as well as Adjusted Operating Income and Margin and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow. EBITDA and EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins, and Adjusted Operating Income and Margin and related information by segment are each non-GAAP financial measures. We define Free Cash Flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions). We have included these disclosures in this press release because EBITDA, EBITDA Margins and Free Cash Flow are widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof (as well as Adjusted Operating Income and Margin by Segment) provide more consistent measures than the unadjusted amounts. Furthermore, our management uses these measures for purposes of evaluating our financial performance. Our presentation of EBITDA, EBITDA Margins and Free Cash Flow (and the Adjusted amounts thereof) may not be comparable to similarly titled measures other companies report. Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows or any other measure prepared and reported in accordance with GAAP. The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures. Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS) For the Three Months Ended Sep 30, 2021 Sep 30, 2020 Jun 30, 2021 Net Income (Loss) Diluted EPS Net Income (Loss) Diluted EPS Net Income (Loss) Diluted EPS (in thousands, except per share amounts) Net income (loss) and diluted EPS as reported inaccordance with GAAP $ (7,370) $ (0.07) $ (79,365) $ (0.80) $ 6,241 $ 0.06 Pre-tax adjustments for the effects of: Long-lived assets write-offs - 7,243 - Inventory write-downs - 7,038 - Goodwill impairment - 40,875 - Loss on sale of asset - - 1,415 Restructuring expenses and other - 11,048 - Foreign currency (gains) losses 289 2,462 1,800 Total pre-tax adjustments 289 68,666 3,215 Tax effect on pre-tax adjustments at the applicablejurisdictional statutory rate in effect for respectiveperiods (152) (13,211) (674) Discrete tax items: Share-based compensation (29) 16 (4) Uncertain tax positions (123) (55) 186 Valuation allowances 5,898 6,599 3,525 Other 77 (278) (2,136) Total discrete tax adjustments 5,823 6,282 1,571 Total of adjustments 5,960 61,737 4,112 Adjusted Net Income (Loss) $ (1,410) $ (0.01) $ (17,628) $ (0.18) $ 10,353 $ 0.10 Weighted average diluted shares outstanding utilizedfor Adjusted Net Income (Loss) 99,797 99,297 100,847 Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS) For the Nine Months Ended Sep 30, 2021 Sep 30, 2020 Net Income(Loss) Diluted EPS Net Income(Loss) Diluted EPS (in thousands, except per share amounts) Net income (loss) and diluted EPS as reported inaccordance with GAAP $ (10,494) $ (0.11) $ (471,751) $ (4.76) Pre-tax adjustments for the effects of: Long-lived assets impairments - 68,763 Long-lived assets write-offs - 14,571 Inventory write-downs - 7,038 Goodwill impairment - 343,880 Loss on sale of asset 1,415 - Restructuring expenses and other 1,308 23,386 Foreign currency (gains) losses 3,950 13,420 Total pre-tax adjustments 6,673 471,058 Tax effect on pre-tax adjustments at the applicablejurisdictional statutory rate in effect for respectiveperiods (1,431) (60,897) Discrete tax items: Share-based compensation 544 1,019 Uncertain tax positions 47 (8,972) U.S. CARES Act - (32,625) Valuation allowances 16,181 75,052 Other 216 (1,215) Total discrete tax adjustments 16,988 33,259 Total of adjustments 22,230 443,420 Adjusted Net Income (Loss) $ 11,736 $ 0.12 $ (28,331) $ (0.29) Weighted average diluted shares outstanding utilizedfor Adjusted Net Income (Loss) 100,790 99,209 EBITDA and Adjusted EBITDA and Margins For the Three Months Ended For the Nine Months Ended Sep 30, 2021 Sep 30, 2020 Jun 30, 2021 Sep 30, 2021 Sep 30, 2020 ($ in thousands) Net income (loss) $ (7,370) $ (79,365) $ 6,241 $ (10,494) $ (471,751) Depreciation and amortization 34,241 87,551 35,225 105,937 482,445 Subtotal 26,871 8,186 41,466 95,443 10,694 Interest expense, net of interest income 8,954 8,836 9,046 27,888 31,121 Amortization included in interest expense 875 317 907 2,085 317 Provision (benefit) for income taxes 13,560 7,204 5,955 31,856 (17,551) EBITDA 50,260 24,543 57,374 157,272 24,581 Adjustments for the effects of: Long-lived assets impairments - - - - 68,763 Inventory write-downs - 7,038 - - 7,038 Loss on sale of asset - - 1,415 1,415 - Restructuring expenses and other - 11,048 - 1,308 23,386 Foreign currency (gains) losses 289 2,462 1,800 3,950 13,420 Total of adjustments 289 20,548 3,215 6,673 112,607 Adjusted EBITDA $ 50,549 $ 45,091 $ 60,589 $ 163,945 $ 137,188 Revenue $ 466,814 $ 439,743 $ 498,199 $ 1,402,566 $ 1,403,627 EBITDA margin % 11 % 6 % 12 % 11 % 2 % Adjusted EBITDA margin % 11 % 10 % 12 % 12 % 10 % Free Cash Flow For the Three Months Ended For the Nine Months Ended Sep 30, 2021 Sep 30, 2020 Jun 30, 2021 Sep 30, 2021 Sep 30, 2020 (in thousands) Net Income (loss) $ (7,370) $ (79,365) $ 6,241 $ (10,494) $ (471,751) Non-cash adjustments: Depreciation and amortization, includinggoodwill impairment 34,241 87,551 35,225 105,937 482,445 Long-lived asset impairments - - - - 68,763 Other non-cash 5,641 9,423 (1,294) 3,982 4,838 Other increases (decreases) in cash fromoperating activities 3,984 9,386 10,374 (14,106) (51,932) Cash flow provided by (used in) operatingactivities 36,496 26,995 50,546 85,319 32,363 Purchases of property and equipment (12,488) (7,980) (12,629) (35,816) (45,840) Free Cash Flow $ 24,008 $ 19,015 $ 37,917 $ 49,503 $ (13,477) 2021 and 2022 Adjusted EBITDA Estimates For the Three Months Ended December 31, 2021 Low High (in thousands) Income (loss) before income taxes $ 4,000 $ 7,000 Depreciation and amortization 36,000 38,000 Subtotal 40,000 45,000 Interest expense, net of interest income 10,000 10,000 Adjusted EBITDA $ 50,000 $ 55,000 For the Year Ended December 31, 2021 Low High (in thousands) Income (loss) before income taxes $ 25,000 $ 30,000 Depreciation and amortization 145,000 150,000 Subtotal 170,000 180,000 Interest expense, net of interest income 40,000 40,000 Adjusted EBITDA $ 210,000 $ 220,000 For the Year Ended December 31, 2022 Low High (in thousands) Income (loss) before income taxes $ 60,000 $ 110,000 Depreciation and amortization 125,000 125,000 Subtotal 185,000 235,000 Interest expense, net of interest income 40,000 40,000 Adjusted EBITDA $ 225,000 $ 275,000 Adjusted Operating Income (Loss) and Margins by Segment For the Three Months Ended September 30, 2021 SSR MP OPG IMDS ADTech UnallocatedExpenses Total ($ in thousands) Operating Income (Loss) asreported in accordance withGAAP $ 19,533 $ 809 $ 7,634 $ 5,362 $ 14,251 $ (31,820) $ 15,769 Adjusted Operating Income(Loss) $ 19,533 $ 809 $ 7,634 $ 5,362 $ 14,251 $ (31,820) $ 15,769 Revenue $ 143,710 $ 75,359 $ 95,580 $ 62,806 $ 89,359 $ 466,814 Operating income (loss) % asreported in accordance withGAAP 14 % 1 % 8 % 9 % 16 % 3 % Operating income (loss) %using adjusted amounts 14 % 1 % 8 % 9 % 16 % 3 % For the Three Months Ended September 30, 2020 SSR MP OPG IMDS ADTech UnallocatedExpenses Total ($ in thousands) Operating Income (Loss) asreported in accordance withGAAP $ 2,127 $ (38,198) $ (12,282) $ 793 $ 13,097 $ (26,157) $ (60,620) Adjustments for the effects of: Long-lived assets write-offs - - 7,243 - - - 7,243 Inventory write-downs 7,038 - - - - - 7,038 Goodwill impairment - 40,875 - - - - 40,875 Restructuring expenses andother 2,535 2,559 5,326 83 545 - 11,048 Total of adjustments 9,573 43,434 12,569 83 545 - 66,204 Adjusted Operating Income(Loss) $ 11,700 $ 5,236 $ 287 $ 876 $ 13,642 $ (26,157) $ 5,584 Revenue $ 119,617 $ 110,416 $ 73,212 $ 53,933 $ 82,565 $ 439,743 Operating income (loss) % asreported in accordance withGAAP 2 % (35) % (17) % 1 % 16 % (14) % Operating income (loss) %using adjusted amounts 10 % 5 % - % 2 % 17 % 1 % For the Three Months Ended June 30, 2021 SSR MP OPG IMDS ADTech UnallocatedExpenses Total ($ in thousands) Operating Income (Loss) asreported in accordance withGAAP $ 21,710 $ 790 $ 7,996 $ 4,721 $ 19,340 $ (31,738) $ 22,819 Adjustments for the effects of: Loss on sale of asset - - - - - 1,415 1,415 Total of adjustments - - - - - 1,415 1,415 Adjusted Operating Income (Loss) $ 21,710 $ 790 $ 7,996 $ 4,721 $ 19,340 $ (30,323) $ 24,234 Revenue $ 141,371 $ 79,127 $ 107,951 $ 64,070 $ 105,680 $ 498,199 Operating income (loss) %as reported in accordance withGAAP 15 % 1 % 7 % 7 % 18 % 5 % Operating income (loss) %using adjusted amounts 15 % 1 % 7 % 7 % 18 % 5 % Adjusted Operating Income (Loss) and Margins by Segment For the Nine Months Ended September 30, 2021 SSR MP OPG IMDS ADTech Unallocated Expenses Total ($ in thousands) Operating Income (Loss) asreported in accordance withGAAP $ 55,862 $ 4,352 $ 24,443 $ 12,557 $ 50,430 $ (95,273) $ 52,371 Adjustments for the effects of: Loss on sale of asset - - - - - 1,415 1,415 Restructuring expensesand other 395 537 149 217 10 - 1,308 Total of adjustments 395 537 149 217 10 1,415 2,723 Adjusted Operating Income (Loss) $ 56,257 $ 4,889 $ 24,592 $ 12,774 $ 50,440 $ (93,858) $ 55,094 Revenue $ 404,200 $ 241,311 $ 292,765 $ 180,924 $ 283,366 $ 1,402,566 Operating income (loss) % asreported in accordance withGAAP 14 % 2 % 8 % 7 % 18 % 4 % Operating income (loss) %using adjusted amounts 14 % 2 % 8 % 7 % 18 % 4 % For the Nine Months Ended September 30, 2020 SSR MP OPG IMDS ADTech Unallocated Expenses Total ($ in thousands) Operating Income (Loss) asreported in accordance withGAAP $ (80,294) $ (100,471) $ (95,740) $ (122,567) $ 39,498 $ (86,985) $ (446,559) Adjustments for the effects of: Long-lived assets impairments - 61,074 7,522 167 - - 68,763 Long-lived assets write-offs 7,328 - 7,243 - - - 14,571 Inventory write-downs 7,038 - - - - - 7,038 Goodwill impairment 102,118 52,263 66,285 123,214 - - 343,880 Restructuring expensesand other 4,834 5,755 7,947 3,850 545 455 23,386 Total of adjustments 121,318 119,092 88,997 127,231 545 455 457,638 Adjusted Operating Income (Loss) $ 41,024 $ 18,621 $ (6,743) $ 4,664 $ 40,043 $ (86,530) $ 11,079 Revenue $ 378,621 $ 377,520 $ 221,306 $ 172,631 $ 253,549 $ 1,403,627 Operating income (loss) % asreported in accordance withGAAP (21) % (27) % (43) % (71) % 16 % (32) % Operating income (loss) %using adjusted amounts 11 % 5 % (3) % 3 % 16 % 1 % EBITDA and Adjusted EBITDA and Margins by Segment For the Three Months Ended September 30, 2021 SSR MP OPG IMDS ADTech UnallocatedExpensesand other Total ($ in thousands) Operating Income (Loss) asreported in accordance withGAAP $ 19,533 $ 809 $ 7,634 $ 5,362 $ 14,251 $ (31,820) $ 15,769 Adjustments for the effects of: Depreciation andamortization 21,483 3,202 6,781 1,114 1,427 234 34,241 Other pre-tax - - - - - 250 250 EBITDA 41,016 4,011 14,415 6,476 15,678 (31,336) 50,260 Adjustments for the effects of: Foreign currency (gains)losses - - - - - 289 289 Total of adjustments - - - - - 289 289 Adjusted EBITDA $ 41,016 $ 4,011 $ 14,415 $ 6,476 $ 15,678 $ (31,047) $ 50,549 Revenue $ 143,710 $ 75,359 $ 95,580 $ 62,806 $ 89,359 $ 466,814 Operating income (loss) % asreported in accordance withGAAP 14 % 1 % 8 % 9 % 16 % 3 % EBITDA Margin 29 % 5 % 15 % 10 % 18 % 11 % Adjusted EBITDA Margin 29 % 5 % 15 % 10 % 18 % 11 % For the Three Months Ended September 30, 2020 SSR MP OPG IMDS ADTech UnallocatedExpensesand other Total ($ in thousands) Operating Income (Loss) asreported in accordance withGAAP $ 2,127 $ (38,198) $ (12,282) $ 793 $ 13,097 $ (26,157) $ (60,620) Adjustments for the effects of: Depreciation and amortization 25,144 44,028 15,147 866 654 1,712 87,551 Other pre-tax - - - - - (2,388) (2,388) EBITDA 27,271 5,830 2,865 1,659 13,751 (26,833) 24,543 Adjustments for the effects of: Inventory write-downs 7,038 - - - - - 7,038 Restructuring expenses andother 2,535 2,559 5,326 83 545 - 11,048 Foreign currency (gains)losses - - - - - 2,462 2,462 Total of adjustments 9,573 2,559 5,326 83 545 2,462 20,548 Adjusted EBITDA $ 36,844 $ 8,389 $ 8,191 $ 1,742 $ 14,296 $ (24,371) $ 45,091 Revenue $ 119,617 $ 110,416 $ 73,212 $ 53,933 $ 82,565 $ 439,743 Operating income (loss) % asreported in accordance withGAAP 2 % (35) % (17) % 1 % 16 % (14) % EBITDA Margin 23 % 5 % 4 % 3 % 17 % 6 % Adjusted EBITDA Margin 31 % 8 % 11 % 3 % 17 % 10 % For the Three Months Ended June 30, 2021 SSR MP OPG IMDS ADTech UnallocatedExpensesand other Total ($ in thousands) Operating Income (Loss) asreported in accordance withGAAP $ 21,710 $ 790 $ 7,996 $ 4,721 $ 19,340 $ (31,738) $ 22,819 Adjustments for the effects of: Depreciation andamortization 22,436 3,248 6,862 1,091 1,404 184 35,225 Other pre-tax - - - - - (670) (670) EBITDA 44,146 4,038 14,858 5,812 20,744 (32,224) 57,374 Adjustments for the effects of: Loss on sale of asset - - - - - 1,415 1,415 Foreign currency (gains) losses - - - - - 1,800 1,800 Total of adjustments - - - - - 3,215 3,215 Adjusted EBITDA $ 44,146 $ 4,038 $ 14,858 $ 5,812 $ 20,744 $ (29,009) $ 60,589 Revenue $ 141,371 $ 79,127 $ 107,951 $ 64,070 $ 105,680 $ 498,199 Operating income (loss) % asreported in accordance withGAAP 15 % 1 % 7 % 7 % 18 % 5 % EBITDA Margin 31 % 5 % 14 % 9 % 20 % 12 % Adjusted EBITDA Margin 31 % 5 % 14 % 9 % 20 % 12 % EBITDA and Adjusted EBITDA and Margins by Segment For the Nine Months Ended September 30, 2021 SSR MP OPG IMDS ADTech UnallocatedExpensesand other Total ($ in thousands) Operating Income (Loss) asreported in accordance withGAAP $ 55,862 $ 4,352 $ 24,443 $ 12,557 $ 50,430 $ (95,273) $ 52,371 Adjustments for the effects of: Depreciation andamortization 66,871 9,677 20,768 3,329 4,107 1,185 105,937 Other pre-tax - - - - - (1,036) (1,036) EBITDA 122,733 14,029 45,211 15,886 54,537 (95,124) 157,272 Adjustments for the effects of: Loss on sale of asset - - - - - 1,415 1,415 Restructuring expensesand other 395 537 149 217 10 - 1,308 Foreign currency (gains)losses - - - - - 3,950 3,950 Total of adjustments 395 537 149 217 10 5,365 6,673 Adjusted EBITDA $ 123,128 $ 14,566 $ 45,360 $ 16,103 $ 54,547 $ (89,759) $ 163,945 Revenue $ 404,200 $ 241,311 $ 292,765 $ 180,924 $ 283,366 $ 1,402,566 Operating income (loss) % asreported in accordance withGAAP 14 % 2 % 8 % 7 % 18 % 4 % EBITDA Margin 30 % 6 % 15 % 9 % 19 % 11 % Adjusted EBITDA Margin 30 % 6 % 15 % 9 % 19 % 12 % For the Nine Months Ended September 30, 2020 SSR MP OPG IMDS ADTech UnallocatedExpensesand other Total ($ in thousands) Operating Income (Loss) asreported in accordance withGAAP $ (80,294) $ (100,471) $ (95,740) $ (122,567) $ 39,498 $ (86,985) $ (446,559) Adjustments for the effects of: Depreciation andamortization 189,411 63,579 98,309 125,966 1,999 3,181 482,445 Other pre-tax - - - - - (11,305) (11,305) EBITDA 109,117 (36,892) 2,569 3,399 41,497 (95,109) 24,581 Adjustments for the effects of: Long-lived assetsimpairments - 61,074 7,522 167 - - 68,763 Inventory write-downs 7,038 - - - - - 7,038 Restructuring expensesand other 4,834 5,755 7,947 3,850 545 455 23,386 Foreign currency (gains)losses - - - - - 13,420 13,420 Total of adjustments 11,872 66,829 15,469 4,017 545 13,875 112,607 Adjusted EBITDA $ 120,989 $ 29,937 $ 18,038 $ 7,416 $ 42,042 $ (81,234) $ 137,188 Revenue $ 378,621 $ 377,520 $ 221,306 $ 172,631 $ 253,549 $ 1,403,627 Operating income (loss) % asreported in accordance withGAAP (21) % (27) % (43) % (71) % 16 % (32) % EBITDA Margin 29 % (10) % 1 % 2 % 16 % 2 % Adjusted EBITDA Margin 32 % 8 % 8 % 4 % 17 % 10 % View original content:https://www.prnewswire.com/news-releases/oceaneering-reports-third-quarter-2021-results-301410251.html SOURCE Oceaneering International, Inc.

Tags:
News

Valaris Provides Quarterly Fleet Status Report

Valaris Provides Quarterly Fleet Status Report HAMILTON, Bermuda, Oct. 27 /BusinessWire/ -- Valaris Limited (NYSE:VAL) ("Valaris" or the "Company") today issued a quarterly Fleet Status Report that provides the current status of the Company's fleet of offshore drilling rigs along with certain contract information for these assets. The Fleet Status Report can be found on the "Investors" section of the Company's website www.valaris.com. About Valaris Limited Valaris Limited (NYSE: VAL) is the industry leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles and modern shallow-water jackups, Valaris has experience operating in nearly every major offshore basin. Valaris maintains an unwavering commitment to safety, operational excellence, and customer satisfaction, with a focus on technology and innovation. Valaris Limited is a Bermuda exempted company (Bermuda No. 56245). To learn more, visit our website at www.valaris.com. Cautionary Statements Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "could," "may," "might," "should," "will" and similar words. Such statements are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including the Company's liquidity and ability to access financing sources, debt restrictions that may limit our liquidity and flexibility, the COVID-19 outbreak and global pandemic, the related public health measures implemented by governments worldwide, the volatility in oil prices caused in part by the COVID-19 pandemic and the decisions by certain oil producers to reduce export prices and increase oil production, and cancellation, suspension, renegotiation or termination of drilling contracts and programs. In particular, the unprecedented nature of the current economic downturn, pandemic, and industry decline may make it particularly difficult to identify risks or predict the degree to which identified risks will impact the Company's business and financial condition. In addition to the numerous factors described above, you should also carefully read and consider "Item 1A. Risk Factors" in Part I and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our most recent annual report on Form 10-K, as updated in our subsequent quarterly reports on Form 10-Q, which are available on the Securities and Exchange Commission's website at www.sec.gov or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks only as of the date of the particular statement and we undertake no obligation to update or revise any forward-looking statements, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006133/en/   back

Tags:
News

ChampionX Reports Third Quarter 2021 Results

ChampionX Reports Third Quarter 2021 Results Revenue of $818.8 million increased 9% sequentiallyNet income attributable to ChampionX of $56.8 million; adjusted net income of $31.3 millionAdjusted EBITDA of $123.6 millionCash from operating activities of $88.7 million and free cash flow of $67.3 million THE WOODLANDS, Texas, Oct. 27, 2021 (GLOBE NEWSWIRE) -- ChampionX Corporation (NASDAQ: CHX) ("ChampionX" or the "Company") today announced third quarter of 2021 results. Revenue was $818.8 million, net income attributable to ChampionX was $56.8 million, and adjusted EBITDA was $123.6 million. Income before income taxes margin was 10.3%, and adjusted EBITDA margin was 15.1%. Cash provided by operating activities was $88.7 million, and free cash flow was $67.3 million. CEO Commentary "We could not be more proud of how remarkably well our organization continues to perform and adapt to the short-term supply chain and logistics bottlenecks that have emerged this year as global economic activity rebounds from pandemic levels. Our employees around the world have remained laser-focused on improving the lives of our customers and communities, and I want to thank each of them for their continued dedication and commitment," ChampionX's President and Chief Executive Officer Sivasankaran "Soma" Somasundaram said. "During the third quarter of 2021, we once again delivered solid results driven by robust topline growth in each of our businesses. We generated revenue of $819 million, which increased 9% sequentially for the second consecutive quarter, driven by strong demand growth in both our international and North American markets. This solid topline growth demonstrates the strong organic growth potential and execution capabilities of our global business. We delivered net income attributable to ChampionX of $57 million, and adjusted EBITDA of $124 million, which represented a sequential increase of 17%. Our teams remained highly focused on executing well and delivered these strong third quarter results despite continued raw material and logistics inflation challenges, as evidenced by the 102 basis points sequential expansion in our adjusted EBITDA margin during the period. "We continued to demonstrate our strong free cash flow profile as we generated free cash flow of $67 million. We further strengthened our balance sheet by repaying $97 million of debt during the third quarter, and we ended the period with $613 million of liquidity, including $254 million of cash and $359 million of available capacity on our revolving credit facility. "We continue to deliver on merger integration synergies. We exited the third quarter at a $118 million cost-synergy annualized run-rate, and we fully expect to deliver the targeted annualized cost synergies of $125 million within 24 months of the merger closing. "As we look to the fourth quarter, we expect our topline momentum to continue. We also expect volume improvements, price increase realization and cost synergy delivery to offset the continued raw material cost inflation, and we still anticipate exiting this year with a higher adjusted EBITDA margin rate than our 2020 exit rate. On a consolidated basis, in the fourth quarter we expect revenue to be between $820 million and $860 million, driven by our production-oriented businesses. We expect adjusted EBITDA of $130 million to $140 million. "We are encouraged by the constructive demand tailwinds in our businesses, and we expect 2022 to be another year of positive growth across our portfolio. We are particularly excited about the margin expansion potential in the coming years as raw materials and other inflationary factors ease and our pricing realization and productivity efforts gain further traction. We are excited about our Scientific Aviation acquisition, which is well aligned with our energy transition priorities, and we are focused on expanding our emissions management portfolio to help our customers achieve their emissions reduction objectives. ChampionX has never been better positioned than we are today for the evolving energy industry, and I am honored to lead such a talented and motivated team." Production Chemical Technologies Production Chemical Technologies revenue in the third quarter of 2021 was $487.7 million, an increase of $40.6 million, or 9%, sequentially, due to higher international volumes and continued sales increases in our North America business. Segment operating profit was $45.7 million and adjusted segment EBITDA was $71.1 million. Segment operating profit margin was 9.4%, an increase of 179 basis points, sequentially, and adjusted segment EBITDA margin was 14.6%, an increase of 78 basis points, sequentially, in each case due to higher sales volumes and pricing, partially offset by certain raw materials inflation. Production & Automation Technologies Production & Automation Technologies revenue in the third quarter of 2021 was $204.5 million, an increase of $16.3 million, or 9%, sequentially, due to continued positive demand momentum for our shorter-cycle North American land-oriented product lines, and the acquisition of Scientific Aviation during the third quarter of 2021. Revenue from digital products, which includes our Scientific Aviation acquisition, was $41.6 million in the third quarter of 2021, an increase of $9.2 million, or 28%, compared to $32.4 million in the second quarter of 2021. Segment operating profit was $14.4 million, and adjusted segment EBITDA was $40.0 million. Segment operating profit margin was 7.0%, an increase of 51 basis points, sequentially, due to higher sales volumes. Adjusted segment EBITDA margin was 19.6%, a decrease of 59 basis points, sequentially, due to certain raw materials and logistics inflation. Drilling Technologies Drilling Technologies revenue in the third quarter of 2021 was $49.4 million, an increase of $11.8 million, or 31%, sequentially, due to the continued increase in North American and international land drilling activity. Segment operating profit was $11.1 million, and adjusted segment EBITDA was $15.3 million. Segment operating profit margin was 22.6%, an increase of 1,227 basis points, sequentially, and adjusted segment EBITDA margin was 31.0%, an increase of 836 basis points, sequentially, in each case due to higher sales volumes and favorable product mix. Reservoir Chemical Technologies Reservoir Chemical Technologies revenue in the third quarter of 2021 was $38.2 million, an increase of $5.0 million, or 15%, sequentially, driven by higher U.S. volumes and direct sales to E&P companies. Segment operating profit was $37.8 million, and adjusted segment EBITDA was $0.6 million. Segment operating profit reflects the net gain on the sale of our manufacturing plant in Corsicana of $39.9 million. Segment operating profit margin was 99.0%, as compared to a segment operating loss margin of 7.8% in the prior quarter. Adjusted segment EBITDA margin was 1.4%, an increase of 83 basis points, sequentially, due to higher sales volumes. Other Business Highlights During the third quarter, ChampionX completed the acquisition of Scientific Aviation, Inc., which is an industry leader in developing methods and technologies for fast, accurate, and cost-effective solutions for methane leak detection, emissions quantification and air quality research, helping customers to achieve their greenhouse gas emissions reduction goals.During the third quarter, ChampionX completed an investment in PingThings, Inc., which has developed an advanced sensor AI platform that enables its customers to manage tremendous volumes of time series data at scale, helping achieve their system reliability, decarbonization and capital efficiency goals. This investment aligns with our long-term strategic priority of accelerating digital revenue streams and expanding our digital offering to other industries by establishing relationships to leverage the digital ecosystem.During the third quarter, ChampionX completed the sale of its Corsicana, Texas, chemical manufacturing plant. The sale is consistent with our ongoing initiatives to optimize our global supply chain and improve the cost structure in our Reservoir Chemical Technologies business for enhanced flexibility.ChampionX has been named one of ALLY Energy's Best Energy Workplaces in recognition of our continuous improvement culture, employee survey feedback, our suite of benefits programs, our continuing education and development programs, our flex-work and family-friendly programs, our D&I programs, including Employee Resource Groups (ERGs), as well as our community projects.Production Chemical Technologies launched a novel paraffin dispersant used for successful paraffin prevention and remediation treatments. This technology has been rolled out and is being used by customers in the U.S. land market.During the third quarter, Production & Automation Technologies won artificial lift and digital contracts with E&P operators in multiple international markets, including Latin America, the Middle East and Asia Pacific.Production & Automation Technologies was awarded a contract for 25 chemical injection skid systems by a leading E&P operator in the Permian Basin.ChampionX's Spotlight EDGE has received Microsoft's "Azure Certified Device" and "Edge Managed" certifications. This device is the only Class 1 Division 2 and ATEX finished product featured in the Microsoft Azure Certified Device Catalog. Spotlight EDGE enables our customers to deploy a scalable and modular solution that optimizes cost, increases edge computing and analytics capabilities, and provides a fit-for-purpose solution to meet business requirements.Last month, ChampionX Digital announced Compressor Leak Insights, a first of its kind offering for the midstream gas processing industry. This is the only Commercial-Off-The-Shelf Artificial Intelligence model used by midstream companies to detect leaks on reciprocating compressors. Our model detects 86% of compressor valve leaks experienced within a customer's fleet and reduces catastrophic failures by 91%. This product offering was jointly developed with midstream leader, DCP Midstream, working with their DCP Tech Ventures business unit.During the third quarter, 79% of Drilling Technologies revenue was generated from products that were less than three years old.ChampionX was a finalist for World Oil's Best Health, Safety, Environment / Sustainable Development - Onshore Award, recognizing internal processes, programs, and digital technologies that have helped lower our carbon footprint, as well as our water treatment and environmentally sustainable chemistries that are helping our customers lower their environmental impact. Conference Call Details ChampionX Corporation will host a conference call on Thursday, October 28, 2021, to discuss its third quarter 2021 financial results and outlook. The call will begin at 9:00 a.m. Eastern Time. Presentation materials that supplement the conference call will be available on ChampionX's website at investors.championx.com. To listen to the call via a live webcast, please visit ChampionX's website at investor.championx.com. The call will also be available for 30 days by dialing 1-888-424-8151 in the United States and Canada or 1-847-585-4422 for international calls. Please call approximately 15 minutes prior to the scheduled start time and reference ChampionX conference call number 9163658. A replay of the conference call will be available on ChampionX's website or at ChampionXThirdQuarter2021CallReplay. Enter passcode 50239455. About Non-GAAP Measures In addition to financial results determined in accordance with generally accepted accounting principles in the United States ("GAAP"), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company's financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX's overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables. This press release contains certain forward-looking non-GAAP financial measures, including adjusted EBITDA. The Company has not provided projected net income attributable to ChampionX or a reconciliation of projected adjusted EBITDA. Management cannot predict with a reasonable degree of accuracy certain of the necessary components of net income attributable to ChampionX, such as depreciation and amortization expense. As such, a reconciliation of projected adjusted EBITDA to projected net income attributable to ChampionX is not available without unreasonable effort. The actual amount of depreciation and amortization, in particular, and other amounts excluded from adjusted EBITDA will have a significant impact on net income attributable to ChampionX. About ChampionX ChampionX is a global leader in chemistry solutions and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely and efficiently around the world. ChampionX's products provide efficient functioning throughout the lifecycle of a well with a focus on the production phase of wells. To learn more about ChampionX, visit our website at www.championX.com. Forward-Looking Statements This news release contains statements relating to future actions and results, which are "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, ChampionX's market position and growth opportunities. Forward-looking statements include statements related to ChampionX's expectations regarding the performance of the business, financial results, liquidity and capital resources of ChampionX. Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from current expectations, including, but not limited to, changes in economic, competitive, strategic, technological, tax, regulatory or other factors that affect the operations of ChampionX's businesses. You are encouraged to refer to the documents that ChampionX files from time to time with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" in ChampionX's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in ChampionX's other filings with the SEC. Readers are cautioned not to place undue reliance on ChampionX's forward-looking statements. Forward-looking statements speak only as of the day they are made and ChampionX undertakes no obligation to update any forward-looking statement, except as required by applicable law. Investor Contact: Byron Popebyron.pope@championx.com 281-602-0094 Media Contact: John Breedjohn.breed@championx.com 281-403-5751 CHAMPIONX CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)(UNAUDITED) CHAMPIONX CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED) CHAMPIONX CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED) CHAMPIONX CORPORATIONBUSINESS SEGMENT DATA(UNAUDITED) CHAMPIONX CORPORATIONRECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES(UNAUDITED) _______________________ (1) Includes revenue associated with the amortization of a liability established as part of the Merger, representing unfavorable terms under the Cross Supply Agreement. For the nine months ended September 30, 2020, in association with the Merger of legacy ChampionX, we recorded an increase to the fair value of inventory which is subsequently amortized to cost of sales over the period that the related product is sold.(2) Includes professional fees related to the remediation of material weaknesses identified during 2019. (3) Represents charges for goodwill and long-lived asset impairments in our Production & Automation Technologies segment. Free Cash Flow

Tags:
News

Weatherford International plc Announces Closing of Senior Notes Offering

Weatherford International plc Announces Closing of Senior Notes Offering HOUSTON, Oct. 27, 2021 /PRNewswire/ -- Weatherford International plc (NASDAQ: WFRD) ("Weatherford" or the "Company") today announced that its wholly-owned subsidiary, Weatherford International Ltd. (the "Issuer"), has closed its private offering of $1,600 million aggregate principal amount of 8.625% senior notes due 2030 (the "Notes"). The Issuer used the net proceeds from the offering and cash on hand to purchase, in a separately announced tender offer, $1,600.0 million aggregate principal amount of its 11.00% senior notes due 2024. The Notes were offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States, only to non-U.S. investors pursuant to Regulation S under the Securities Act. The Notes have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements or a transaction not subject to the registration requirements of the Securities Act or any state securities laws. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. Forward Looking Statements This news release contains forward-looking statements concerning, among other things, the Company's strategy and financing plans and goals. These forward-looking statements are also generally identified by the words "intends", "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including the price and price volatility of oil and natural gas; the extent or duration of business interruptions, demand for oil and gas and fluctuations in commodity prices associated with COVID-19 pandemic; general global economic repercussions related to COVID-19 pandemic; the macroeconomic outlook for the oil and gas industry; and operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the COVID-19 virus and COVID-19 variants, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; financial market conditions and availability of capital; our ability to generate cash flow from operations to fund our operations; and the realization of additional cost savings and operational efficiencies. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. The Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws. About Weatherford Weatherford is a leading global energy services company. Operating in approximately 75 countries, the Company answers the challenges of the energy industry with its global talent network of approximately 17,000 team members and approximately 365 operating locations, including manufacturing, research and development, service, and training facilities. Contact:Mohammed TopiwalaWeatherford Investor Relations+1 713-836-7777investor.relations@weatherford.com For Media:Kelley HughesWeatherford Global Communications+1 713-836-4193kelley.hughes@weatherford.com View original content to download multimedia:https://www.prnewswire.com/news-releases/weatherford-international-plc-announces-closing-of-senior-notes-offering-301410085.html SOURCE Weatherford International plc

Tags:
News

Antero Resources Reports Third Quarter 2021 Financial and Operational Results

Antero Resources Reports Third Quarter 2021 Financial and Operational Results DENVER, Oct. 27, 2021 /PRNewswire/ -- Antero Resources Corporation (NYSE: AR) ("Antero Resources", "Antero", or the "Company") today announced its third quarter 2021 financial and operational results. The relevant consolidated financial statements are included in Antero Resource's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021. Third Quarter 2021 Highlights Include: Net production averaged 3.25 Bcfe/d, including 169 MBbl/d of liquids Realized pre-hedge natural gas equivalent price of $5.15 per Mcfe, a $1.14 per Mcfe premium to NYMEX pricing Realized pre-hedge C3+ NGL price of $52.68 per barrel, or 75% of WTI, a 139% increase from the prior year period Realized pre-hedge natural gas price of $4.31 per Mcf, a $0.30 per Mcf premium to NYMEX Henry Hub pricing Net loss was $549 million, Adjusted Net Income was $61 million (Non-GAAP) Adjusted EBITDAX was $358 million (Non-GAAP); net cash provided by operating activities was $313 million Free Cash Flow was $91 million (Non-GAAP) Net Debt at quarter end was $2.3 billion, a $660 million reduction from year end 2020 (Non-GAAP) Net Debt to last twelve months Adjusted EBITDAX declined to 1.6x (Non-GAAP)Subsequent Events Include: Released 200 MMcf/d of firm transportation commitments on October 1, 2021 Year-to-date released 400 MMcf/d of firm transportation commitments including the above, reducing annual transportation demand fees by $60 millionReceived corporate ratings upgrades from Moody's and S&P Global to Ba2 and BB, respectively Extended credit facility to 2026, borrowing base increased 23% to $3.5 billion and elected to reduce commitments to $1.5 billion Published annual ESG report citing industry-low greenhouse gas intensity and methane leak loss rate, with no routine gas flaring, and reiterated environmental reduction goals for 2025Paul Rady, Chairman, President and Chief Executive Officer of Antero Resources commented, "Antero's third quarter financial results benefited from our significant C3+ NGL exposure. We produced over 110,000 Bbls/d of C3+ NGLs with a realized pre-hedge price of over $52 per barrel, a 139% increase from the prior year period. Antero's unique business strategy has positioned us as the second largest NGL producer in the U.S. with a firm transportation portfolio that delivered peer-leading EBITDAX margins during the quarter. Based on today's strip prices, we are targeting over $900 million of Free Cash Flow in 2021, including over $300 million during the fourth quarter, despite being over 90% hedged on natural gas. This 90% hedged position on natural gas is reduced to 50% beginning in January of 2022, increasing our natural gas exposure to rising prices. In addition, we do not have any liquids hedges in 2022." Mr. Rady continued, "This year's ESG report highlights the foundation of Antero Resources' success - a focus on People, Performance, and Purpose. Our relentless focus on these principals has allowed us to successfully navigate the ever-changing global economy, while continuing to deliver stakeholder value. As a substantial LPG producer and exporter, we are uniquely positioned to positively impact global energy poverty. For the last several years, approximately one-third of our LPG exports have gone to developing nations, including the nations of Nigeria, Peru and India, improving people's health, safety and livelihood through the displacement of more expensive and more carbon-intensive sources of energy." Michael Kennedy, Chief Financial Officer and Senior Vice President of Finance of Antero Resources said, "During the third quarter we continued to make progress toward our absolute debt target of $2.0 billion. Since the beginning of the year, we have reduced debt by nearly $700 million, driving our leverage down to 1.6x. Based on today's strip prices, we anticipate achieving our debt target in early 2022, with leverage falling below 1.0x during the first quarter of 2022. Looking ahead and using today's backwardated commodity strips, we anticipate Free Cash flow in 2022 to be well in excess of 2021, which we intend to use for additional debt reduction and return of capital to our shareholders." For a discussion of the non-GAAP financial measures including Adjusted Net Income, Adjusted EBITDAX, Free Cash Flow and Net Debt please see "Non-GAAP Financial Measures." Credit Update New Credit Facility Agreement On October 26, 2021, Antero entered into a new credit facility with a borrowing base of $3.5 billion and lender commitments of $1.5 billion. The $3.5 billion borrowing base under the credit facility represents a $650 million increase from the Company's previous borrowing base of $2.85 billion. Antero elected to reduce lender commitments by $1.1 billion from the previous commitments of $2.64 billion. The decision to materially reduce lender commitments reflects Antero's current balance sheet strength, with an essentially undrawn balance on its facility, and with its Free Cash Flow expectations under its maintenance capital drilling program. The new credit facility matures in October 2026 and includes fall away covenants that are triggered if Antero is assigned an investment grade credit rating by the rating agencies. Credit Ratings Upgrade On October 6, 2021, Moody's Investors Service ("Moody's") upgraded Antero's Corporate Family Rating to Ba2 from Ba3, and senior unsecured notes to Ba3 from B1. The upgrade reflects Antero's material debt reduction in 2020 and 2021, and Moody's expectation that the company will deliver additional debt reduction in 2022 that should make the Company's credit profile more resilient to low prices. Additionally, on October 10, 2021, S&P Global Ratings ("S&P") upgraded Antero's issuer credit rating to BB from BB- and its unsecured notes to BB from BB-. Letters of Credit Reduction and Surety Bond Replacement As a result of recent upgrades from Moody's and S&P, the amount of letters of credit ("LCs") that Antero provides certain transactional counterparties related to our firm transportation commitments have been reduced by $107 million. In addition, the recent release of select firm transportation commitments resulted in an incremental reduction in LCs by $20 million. Antero also replaced $80 million of LCs with surety bonds with one of its firm transportation counterparties. Pro forma for the Company's new credit facility, the reduction of LCs and the surety bonds, Antero has approximately $535 million of LCs outstanding and $870 million of liquidity under its credit facility as of September 30, 2021. Debt Reduction and Debt Repurchases Antero reduced net debt by $70 million to $2.3 billion during the third quarter utilizing Free Cash Flow. In July, Antero redeemed $175 million of its Senior Notes due 2026 at 108.375% of par, plus accrued and unpaid interest. In October, Antero delivered notice to the holders of its Senior Notes due 2029 that it intends to redeem $116 million aggregate principal amount of the notes at 107.625% of par, plus accrued and unpaid interest. As of September 30, 2021, Antero had $98 million drawn on its credit facility. The company plans to continue to utilize Free Cash Flow to reduce debt, with the near-term goal of reducing absolute debt to under $2.0 billion. Guidance Update Antero increased guidance for its realized natural gas price to a premium to NYMEX of $0.20 to $0.30 per Mcf from a previous range of $0.15 to $0.25 per Mcf, reflecting a 25% increase at the midpoint. The increase was driven by a greater BTU uplift on the Company's natural gas sales as well as tighter differentials in the NYMEX-related markets where Antero's gas is sold. Cash production expense guidance was increased by 2% to a range of $2.27 to $2.32 per Mcfe reflecting higher fuel and ad valorem costs due to the increase in commodity prices. Full Year 2021 - Prior Full Year 2021 - Revised Midpoint Low High Low High Variance Natural Gas Realized Price vs. NYMEX Henry Hub ($/Mcf) $0.15 $0.25 $0.20 $0.30 25% Cash Production Expense ($/Mcfe) $2.23 $2.28 $2.27 $2.32 2% Any 2021 projections not discussed in this release are unchanged from previously stated guidance. 2020 ESG Report On October 5, 2021, Antero published its 2020 ESG Report highlighting its focus on People, Performance and Purpose. The report details Antero Resources' ongoing commitment to the communities in which it operates, as well as its commitment to safe operations, environmental excellence and strong governance. The report also reiterates the Company's 2025 goals to reduce methane leak loss rate by 50% to under 0.025%, to reduce GHG intensity by 10% and to achieve Net Zero Scope 1 emissions by 2025. The full report is available at www.anteroresources.com. Third Quarter 2021 Free Cash Flow During the third quarter, Antero generated $91 million in Free Cash Flow. Free Cash Flow before Changes in Working Capital was $122 million during the third quarter. Three Months Ended September 30, 2020 2021 Net cash provided by operating activities $ 175,870 312,680 Less: Net cash provided by (used in) investing activities 65,545 (202,577) Less: Proceeds from VPP sale, net (215,833) - Less: Distributions to non-controlling interests in Martica (17,249) (18,755) Free Cash Flow $ 8,333 91,348 Changes in Working Capital (1) 63,305 30,651 Free Cash Flow before Changes in Working Capital $ 71,638 121,999 (1) Working capital adjustments in 2021 include $28.3 million in changes in current assets and liabilities and a $2.3 million decrease in accounts payable and accrued liabilities for additions to property and equipment. See the cash flow statement in this release for details. Third Quarter 2021 Financial Results Net loss was $549 million, or $1.75 per diluted share, compared to a net loss of $536 million, or $1.99 per diluted share, in the prior year period. The net loss was driven by a $834 million unrealized commodity derivative fair value loss primarily as a result of the rise in the natural gas futures strip prices during the quarter. Adjusted Net Income was $61 million, or $0.19 per diluted share, compared to Adjusted Net Income of $13 million, or $0.05 per diluted share, in the prior year period. Adjusted EBITDAX was $358 million, a 31% increase compared to the prior year quarter, driven by higher realized natural gas and NGL prices. Net daily natural gas equivalent production in the third quarter averaged 3.25 Bcfe/d, including 169 MBbl/d of liquids, as detailed in the table below. Third quarter production was negatively impacted by non-recurring downtime at the Sherwood Processing Facility Complex that resulted in a loss of approximately 100 MMcfe/d during the quarter. Antero's average realized natural gas price before hedging was $4.31 per Mcf, representing a 123% increase compared to the prior year period. Antero realized a $0.30 per Mcf premium to the average NYMEX Henry Hub price by capitalizing on its premium firm transportation. The following table details the components of average net production and average realized prices for the three months ended September 30, 2021: Three Months Ended September 30, 2021 Combined Natural Natural Gas Oil C3+ NGLs Ethane Gas Equivalent (MMcf/d) (Bbl/d) (Bbl/d) (Bbl/d) (MMcfe/d) Average Net Production 2,232 10,131 111,505 47,519 3,247 Combined Natural Natural Gas Oil C3+ NGLs Ethane Gas Equivalent Average Realized Prices ($/Mcf) ($/Bbl) ($/Bbl) ($/Bbl) ($/Mcfe) Average realized prices before settled derivatives $ 4.31 $ 60.87 $ 52.68 $ 13.25 $ 5.15 NYMEX average price $ 4.01 $ 70.62 $ 4.01 Premium / (Differential) to NYMEX $ 0.30 $ (9.75) $ 1.14 Settled commodity derivatives $ (1.31) $ (4.56) $ (14.01) - $ (1.36) Average realized prices after settled derivatives $ 3.00 $ 56.31 $ 38.67 $ 13.25 $ 3.79 Differential to NYMEX $ (1.01) $ (14.31) $ (0.22) Antero's average realized C3+ NGL price before hedging was $52.68 per barrel, a 139% increase versus the prior year period. Antero shipped 53% of its total C3+ NGL net production on Mariner East 2 for export and realized a $0.05 per gallon premium to Mont Belvieu pricing on these volumes at Marcus Hook, PA. Antero sold the remaining 47% of C3+ NGL net production at a $0.10 per gallon discount to Mont Belvieu pricing at Hopedale, OH. The resulting blended price on 111,505 Bbl/d of net C3+ NGL production was $52.68 per barrel, which was a $0.02 per gallon discount to Mont Belvieu pricing. Antero expects to sell at least 50% of its C3+ NGL production in 2021 at Marcus Hook for international export at a premium to Mont Belvieu. Three Months Ended September 30, 2021 Pricing Point Net C3+ NGL Production (Bbl/d) % by Destination Premium (Discount) To Mont Belvieu ($/Gal) Propane / Butane exported on ME2 Marcus Hook, PA 59,360 53% $0.05 Remaining C3+ NGL volume Hopedale, OH 52,145 47% ($0.10) Total C3+ NGLs/Blended Premium 111,505 100% ($0.02) All-in cash expense, which includes lease operating, gathering, compression, processing and transportation, production and ad valorem taxes was $2.35 per Mcfe in the third quarter, a 16% increase compared to $2.03 per Mcfe average during the third quarter of 2020. The increase from a year ago was due primarily to an increase in gathering, processing and transportation expense driven by higher fuel costs as a result of higher natural gas prices as well as $12 million in incentive fee rebates earned in the third quarter of 2020 that were not earned in the third quarter of 2021. Transportation expense increased $0.13 per Mcfe due to increased utilization on higher tariff pipelines into the Midwest and Gulf Coast, which in turn led to higher natural gas price realizations. Lease operating expense was $0.08 per Mcfe in the third quarter, an increase of $0.02 per Mcfe from the year ago period. Production and ad valorem expense increased $0.10 per Mcfe from the year ago period due to higher commodity prices. Net marketing expense was $0.11 per Mcfe in the third quarter, unchanged from the prior year period. Net marketing expense in the fourth quarter of 2021 is expected to benefit from 200 MMcf/d of firm transportation commitments that were released on October 1, 2021. Third Quarter 2021 Operating Update Antero placed 16 horizontal Marcellus wells to sales during the third quarter with an average lateral length of 13,448 feet. Nine of the 16 new wells have been on line for at least 60 days and the average 60-day rate per well was 24.9 MMcfe/d, including approximately 1,370 Bbl/d of liquids assuming 25% ethane recovery. Antero set a company record for completion stages per day in the Marcellus with its second Simulfrac operation with 23 stages per day, a 28% increase from Antero's first Simulfrac and a 64% increase from the prior zipper frac record of 14 stages per day. Antero is currently operating 3 drilling rigs and 1 completion crew. Third Quarter 2021 Capital Investment Antero's accrued drilling and completion capital expenditures for the three months ended September 30, 2021, were $168 million. In addition to capital invested in drilling and completion costs, the Company invested $19.5 million in land during the third quarter. For a reconciliation of accrued capital expenditures to cash capital expenditures see the table in the Non-GAAP Financial Measures section. Balance Sheet and Liquidity As of September 30, 2021, Antero's total debt was $2.3 billion, of which $98 million were borrowings outstanding under the Company's revolving credit facility. Net debt to trailing twelve month Adjusted EBITDA ratio (non-GAAP) was 1.6x as of September 30, 2021. Commodity Derivative Positions Antero did not enter into any new natural gas, NGL or oil hedges during the third quarter of 2021. The Company has hedged 636 Bcf of natural gas at a weighted average index price of $2.58 per MMBtu through 2023 with fixed price swap positions. Antero also has oil, butanes and natural gasoline fixed price swap positions through December 31, 2021. Please see Antero's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, for more information on all commodity derivative positions. For detail on current commodity positions, please see the Hedge Profile presentations at www.anteroresources.com. Conference Call A conference call is scheduled on Thursday, October 28, 2021 at 9:00 am MT to discuss the financial and operational results. A brief Q&A session for security analysts will immediately follow the discussion of the results. To participate in the call, dial in at 877-407-9079 (U.S.), or 201-493-6746 (International) and reference "Antero Resources." A telephone replay of the call will be available until Thursday, November 4, 2021 at 9:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13720352. A simultaneous webcast of the call may be accessed over the internet at www.anteroresources.com. The webcast will be archived for replay on the Company's website until Thursday, November 4, 2021 at 9:00 am MT. Presentation An updated presentation will be posted to the Company's website before the conference call. The presentation can be found at www.anteroresources.com on the homepage. Information on the Company's website does not constitute a portion of, and is not incorporated by reference into this press release. Non-GAAP Financial Measures Adjusted Net Income Adjusted Net Income as set forth in this release represents net loss, adjusted for certain items. Antero believes that Adjusted Net Income is useful to investors in evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Adjusted Net Income is not a measure of financial performance under GAAP and should not be considered in isolation or as a substitute for net loss as an indicator of financial performance. The following tables reconcile net loss to Adjusted Net Income (in thousands): Three Months Ended September 30, 2020 2021 Net loss and comprehensive loss attributable to Antero Resources Corporation $ (535,613) (549,318) Net loss and comprehensive loss attributable to noncontrolling interests (18,233) (17,257) Unrealized commodity derivative losses 748,791 834,334 Proceeds from derivative monetizations (18,073) - Amortization of deferred revenue, VPP (5,175) (11,404) Gain on sale of assets - (539) Impairment of oil and gas properties 29,392 26,253 Equity-based compensation 5,699 5,298 Loss (gain) on early extinguishment of debt (55,633) 16,567 Equity in earnings of unconsolidated affiliate (24,419) (21,450) Contract termination and rig stacking 1,246 3,370 Tax effect of reconciling items (1) (115,047) (205,127) 12,935 80,727 Martica adjustments (2) - (20,166) Adjusted Net Income $ 12,935 60,561 (1) Deferred taxes were 24% for 2020 and 2021. (2) Adjustments reflect noncontrolling interest in Martica not otherwise adjusted in amounts above. Net Debt Net Debt is calculated as total debt less cash and cash equivalents. Management uses Net Debt to evaluate the Company's financial position, including its ability to service its debt obligations. The following table reconciles consolidated total debt to Net Debt as used in this release (in thousands): December 31, September 30, 2020 2021 Credit Facility $ 1,017,000 97,500 5.125% senior notes due 2022 660,516 - 5.625% senior notes due 2023 574,182 - 5.000% senior notes due 2025 590,000 590,000 8.375% senior notes due 2026 - 325,000 7.625% senior notes due 2029 - 700,000 5.375% senior notes due 2030 - 600,000 4.250% convertible senior notes due 2026 287,500 81,570 Net unamortized premium (111,886) (28,780) Net unamortized debt issuance costs (15,719) (24,257) Consolidated total debt $ 3,001,593 2,341,033 Less: Cash and cash equivalents - - Net Debt $ 3,001,593 2,341,033 Free Cash Flow Free Cash Flow is a measure of financial performance not calculated under GAAP and should not be considered in isolation or as a substitute for cash flow from operating, investing, or financing activities, as an indicator of cash flow, or as a measure of liquidity. The Company defines Free Cash Flow as net cash provided by operating activities, less net cash used in investing activities, which includes drilling and completion capital and leasehold capital, less proceeds from asset sales and less distributions to non-controlling interests in Martica. The Company has not provided projected net cash provided by operating activities or a reconciliation of Free Cash Flow to projected net cash provided by operating activities, the most comparable financial measure calculated in accordance with GAAP. The Company is unable to project net cash provided by operating activities for any future period because this metric includes the impact of changes in operating assets and liabilities related to the timing of cash receipts and disbursements that may not relate to the period in which the operating activities occurred. The Company is unable to project these timing differences with any reasonable degree of accuracy without unreasonable efforts. Free Cash Flow is a useful indicator of the Company's ability to internally fund its activities and to service or incur additional debt. There are significant limitations to using Free Cash Flow as a measure of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect the Company's net income, the lack of comparability of results of operations of different companies and the different methods of calculating Free Cash Flow reported by different companies. Free Cash Flow does not represent funds available for discretionary use because those funds may be required for debt service, land acquisitions and lease renewals, other capital expenditures, working capital, income taxes, exploration expenses, and other commitments and obligations. Adjusted EBITDAX Adjusted EBITDAX is a non-GAAP financial measure that we define as net loss, adjusted for certain items detailed below. Adjusted EBITDAX as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDAX should not be considered in isolation or as a substitute for operating income or loss, net income or loss, cash flows provided by operating, investing, and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Adjusted EBITDAX provides no information regarding our capital structure, borrowings, interest costs, capital expenditures, working capital movement, or tax position. Adjusted EBITDAX does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital, income taxes, exploration expenses, and other commitments and obligations. However, our management team believes Adjusted EBITDAX is useful to an investor in evaluating our financial performance because this measure: is widely used by investors in the oil and natural gas industry to measure operating performance without regard to items excluded from the calculation of such term, which may vary substantially from company to company depending upon accounting methods and the book value of assets, capital structure and the method by which assets were acquired, among other factors; helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our capital and legal structure from our operating structure; is used by our management team for various purposes, including as a measure of our operating performance, in presentations to our Board of Directors, and as a basis for strategic planning and forecasting: and is used by our Board of Directors as a performance measure in determining executive compensation. There are significant limitations to using Adjusted EBITDAX as a measure of performance, including the inability to analyze the effects of certain recurring and non-recurring items that materially affect our net income or loss, the lack of comparability of results of operations of different companies, and the different methods of calculating Adjusted EBITDAX reported by different companies. The following table represents a reconciliation of Antero's net loss, including noncontrolling interest, to Adjusted EBITDAX and a reconciliation of Antero's Adjusted EBITDAX to net cash provided by operating activities per our consolidated statements of cash flows, in each case, for the three months ended September 30, 2020 and 2021. Adjusted EBITDAX also excludes the noncontrolling interests in Martica and these adjustments are disclosed in the table below as Martica related adjustments. Three Months EndedSeptember 30, 2020 2021 Reconciliation of net loss to Adjusted EBITDAX: Net loss and comprehensive loss attributable to Antero Resources Corporation $ (535,613) (549,318) Net loss and comprehensive loss attributable to noncontrolling interests (18,233) (17,257) Unrealized commodity derivative losses 748,791 834,334 Proceeds from derivative monetizations (18,073) - Amortization of deferred revenue, VPP (5,175) (11,404) Gain on sale of assets - (539) Interest expense, net 48,043 45,414 Loss (gain) on early extinguishment of debt (55,633) 16,567 Provision for income tax benefit (168,778) (158,656) Depletion, depreciation, amortization, and accretion 239,533 183,638 Impairment of oil and gas properties 29,392 26,253 Exploration expense 454 235 Equity-based compensation expense 5,699 5,298 Equity in earnings of unconsolidated affiliate (24,419) (21,450) Dividends from unconsolidated affiliate 42,755 31,285 Contract termination and rig stacking 1,246 3,370 Transaction expense 524 626 290,513 388,396 Martica related adjustments (1) (18,072) (30,197) Adjusted EBITDAX $ 272,441 358,199 Reconciliation of our Adjusted EBITDAX to net cash provided by operating activities: Adjusted EBITDAX $ 272,441 358,199 Martica related adjustments (1) 18,072 30,197 Interest income, net (48,043) (45,414) Exploration expense (454) (235) Changes in current assets and liabilities (80,308) (28,316) Transaction expense (524) (626) Payments for derivative monetizations 18,073 - Other items (3,387) (1,125) Net cash provided by operating activities $ 175,870 312,680 (1) Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above. Twelve Months Ended September 30, 2021 Reconciliation of net loss to Adjusted EBITDAX: Net loss and comprehensive loss attributable to Antero Resources Corporation $ (1,018,454) Net income and comprehensive income attributable to noncontrolling interests 1,637 Unrealized commodity derivative losses 1,623,610 Payments for derivative monetizations 13,635 Amortization of deferred revenue, VPP (43,165) Gain on sale of assets (2,479) Interest expense, net 185,036 Loss on early extinguishment of debt 82,239 Loss on convertible note equitizations 50,777 Provision for income tax benefit (313,883) Depletion, depreciation, amortization, and accretion 776,944 Impairment of oil and gas properties 137,426 Exploration expense 6,280 Equity-based compensation expense 21,505 Equity in (earnings) of unconsolidated affiliate (78,369) Dividends from unconsolidated affiliate 148,080 Contract termination and rig stacking 6,278 Transaction expense 3,684 1,600,781 Martica related adjustments (1) (104,419) Adjusted EBITDAX $ 1,496,362 (1) Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above. Drilling and Completion Capital Expenditures For a reconciliation between cash paid for drilling and completion capital expenditures and drilling and completion accrued capital expenditures during the period, please see the capital expenditures section below (in thousands): Three Months EndedSeptember 30, 2020 2021 Drilling and completion costs (as reported; cash basis) $ 141,693 173,943 Change in accrued capital costs 19,373 (6,313) Adjusted drilling and completion costs (accrual basis) $ 161,066 167,630 Notwithstanding their use for comparative purposes, the Company's non-GAAP financial measures may not be comparable to similarly titled measures employed by other companies. Antero Resources is an independent natural gas and natural gas liquids company engaged in the acquisition, development and production of unconventional properties located in the Appalachian Basin in West Virginia and Ohio. In conjunction with its affiliate, Antero Midstream (NYSE: AM), Antero is one of the most integrated natural gas producers in the U.S. The Company's website is located at www.anteroresources.com. This release includes "forward-looking statements." Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under Antero Resources' control. All statements, except for statements of historical fact, made in this release regarding activities, events or developments Antero Resources expects, believes or anticipates will or may occur in the future, such as those regarding expected results, future commodity prices, future production targets, realizing potential future fee rebates or reductions, including those related to certain levels of production, future earnings, leverage targets and debt repayment, future capital spending plans, improved and/or increasing capital efficiency, estimated realized natural gas, NGL and oil prices, expected drilling and development plans, projected well costs and cost savings initiatives, future financial position, the participation level of our drilling partner and the financial and production results to be achieved as a result of that drilling partnership, the other key assumptions underlying our projections, and future marketing opportunities, are 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 forward-looking statements speak only as of the date of this release. Although Antero Resources believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, Antero Resources expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements. In addition, many of the standards and metrics used in preparing this release and the ESG Report continue to evolve and are based on management expectations and assumptions believed to be reasonable at the time of preparation but should not be considered guarantees. The standards and metrics used, and the expectations and assumptions they are based on, have not been verified by any third party. In addition, while we seek to align these disclosures with the recommendations of various third-party frameworks, such as the Task Force on Climate-Related Financial Disclosures ("TCFD"), we cannot guarantee strict adherence to these framework recommendations. Additionally, our disclosures based on these frameworks may change due to revisions in framework requirements, availability of information, changes in our business or applicable governmental policy, or other factors, some of which may be beyond our control. The calculation of methane leak loss rate disclosed in this release conforms with ONE Future protocol, which is based on the EPA Greenhouse Gas Reporting Program. With respect to its Scope 1 emissions goal, Antero Resources anticipates achieving Net Zero Scope 1 emissions by 2025 through operational efficiencies and the purchase of carbon offsets. Antero Resources cautions you that these forward-looking statements are subject to all of the risks and uncertainties, incident to the exploration for and development, production, gathering and sale of natural gas, NGLs and oil most of which are difficult to predict and many of which are beyond the Antero Resources' control. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating natural gas and oil reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, impacts of world health event, including the COVID-19 pandemic, cybersecurity risks and the other risks described under the heading "Item 1A. Risk Factors" in Antero Resources' Quarterly Report on Form 10-Q for the quarter ended September 30, 2021. This release and the ESG Report contain statements based on hypothetical or severely adverse scenarios and assumptions, and these statements should not necessarily be viewed as being representative of current or actual risk or forecasts of expected risk. These scenarios cannot account for the entire realm of possible risks and have been selected based on what we believe to be a reasonable range of possible circumstances based on information currently available to us and the reasonableness of assumptions inherent in certain scenarios; however, our selection of scenarios may change over time as circumstances change. While future events discussed in this release or the report may be significant, any significance should not be read as necessarily rising to the level of materiality of certain disclosures included in Antero Resources' SEC filings. ANTERO RESOURCES CORPORATION Condensed Consolidated Balance Sheets (In thousands) (Unaudited) December 31, September 30, 2020 2021 Assets Current assets: Accounts receivable $ 28,457 34,768 Accrued revenue 425,314 652,627 Derivative instruments 105,130 627 Other current assets 15,238 20,937 Total current assets 574,139 708,853 Property and equipment: Oil and gas properties, at cost (successful efforts method): Unproved properties 1,175,178 1,052,543 Proved properties 12,260,713 12,559,146 Gathering systems and facilities 5,802 5,802 Other property and equipment 74,361 91,621 13,516,054 13,709,112 Less accumulated depletion, depreciation, and amortization (3,869,116) (4,176,296) Property and equipment, net 9,646,938 9,532,816 Operating leases right-of-use assets 2,613,603 2,969,642 Derivative instruments 47,293 14,834 Investment in unconsolidated affiliate 255,082 236,597 Other assets 13,790 8,796 Total assets $ 13,150,845 13,471,538 Liabilities and Equity Current liabilities: Accounts payable $ 26,728 60,409 Accounts payable, related parties 69,860 79,595 Accrued liabilities 343,524 501,132 Revenue distributions payable 198,117 315,936 Derivative instruments 31,242 1,436,292 Short-term lease liabilities 266,024 353,470 Deferred revenue, VPP 45,257 39,528 Other current liabilities 2,302 16,320 Total current liabilities 983,054 2,802,682 Long-term liabilities: Long-term debt 3,001,593 2,341,033 Deferred income tax liability 412,252 55,636 Derivative instruments 99,172 331,570 Long-term lease liabilities 2,348,785 2,616,889 Deferred revenue, VPP 156,024 127,844 Other liabilities 59,694 60,642 Total liabilities 7,060,574 8,336,296 Commitments and contingencies Equity: Stockholders' equity: Preferred stock, $0.01 par value; authorized - 50,000 shares; none issued - - Common stock, $0.01 par value; authorized - 1,000,000 shares; 268,672 shares and 313,866 shares issued and outstanding as of December 31, 2020 and September 30, 2021, respectively 2,686 3,138 Additional paid-in capital 6,195,497 6,365,929 Accumulated deficit (430,478) (1,518,762) Total stockholders' equity 5,767,705 4,850,305 Noncontrolling interests 322,566 284,937 Total equity 6,090,271 5,135,242 Total liabilities and equity $ 13,150,845 13,471,538 ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (In thousands, except per share amounts) Three Months Ended September 30, 2020 2021 Revenue and other: Natural gas sales $ 436,304 884,669 Natural gas liquids sales 327,426 598,327 Oil sales 34,265 56,734 Commodity derivative fair value losses (514,751) (1,250,466) Marketing 91,497 232,685 Amortization of deferred revenue, VPP 5,175 11,404 Gain on sale of assets - 539 Other income 675 530 Total revenue 380,591 534,422 Operating expenses: Lease operating 21,450 25,363 Gathering, compression, processing, and transportation 656,615 628,225 Production and ad valorem taxes 25,790 52,219 Marketing 128,580 266,751 Exploration 454 235 Impairment of oil and gas properties 29,392 26,253 Depletion, depreciation, and amortization 238,418 182,810 Accretion of asset retirement obligations 1,115 828 General and administrative (including equity-based compensation expense of $5,699 and $5,298 in 2020 and 2021, respectively) 31,640 32,442 Contract termination and rig stacking 1,246 3,370 Total operating expenses 1,134,700 1,218,496 Operating loss (754,109) (684,074) Other income (expense): Interest expense, net (48,043) (45,414) Equity in earnings of unconsolidated affiliate 24,419 21,450 Gain (loss) on early extinguishment of debt 55,633 (16,567) Transaction expense (524) (626) Total other income (expense) 31,485 (41,157) Loss before income taxes (722,624) (725,231) Provision for income tax benefit 168,778 158,656 Net loss and comprehensive loss including noncontrolling interests (553,846) (566,575) Less: net loss and comprehensive loss attributable to noncontrolling interests (18,233) (17,257) Net loss and comprehensive loss attributable to Antero Resources Corporation $ (535,613) (549,318) Loss per share-basic $ (1.99) (1.75) Loss per share-diluted $ (1.99) (1.75) Weighted average number of shares outstanding: Basic 268,511 313,790 Diluted 268,511 313,790 ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Nine Months Ended September 30, 2020 2021 Cash flows provided by (used in) operating activities: Net loss including noncontrolling interests $ (1,355,724) (1,112,130) Adjustments to reconcile net loss to net cash provided by operating activities: Depletion, depreciation, amortization, and accretion 655,460 567,113 Impairments 766,594 69,618 Commodity derivative fair value losses 116,933 2,260,062 Gains (losses) on settled commodity derivatives 740,805 (481,083) Proceeds from (payments for) derivative monetizations 18,073 (4,569) Gain on sale of assets - (2,827) Equity-based compensation expense 17,001 15,189 Deferred income tax benefit (426,267) (337,568) Equity in (earnings) loss of unconsolidated affiliate 83,408 (57,621) Dividends of earnings from unconsolidated affiliate 128,267 105,325 Amortization of deferred revenue (5,175) (33,833) Amortization of debt issuance costs, debt discount, debt premium and other 7,391 10,122 (Gain) loss on early extinguishment of debt (175,365) 82,836 Loss on convertible note equitizations - 50,777 Changes in current assets and liabilities: Accounts receivable (15,454) (11,336) Accrued revenue (20,843) (227,207) Other current assets (1,455) (5,695) Accounts payable including related parties (2,198) 39,108 Accrued liabilities 15,522 124,382 Revenue distributions payable (54,403) 117,819 Other current liabilities (60) 16,470 Net cash provided by operating activities 492,510 1,184,952 Cash flows provided by (used in) investing activities: Additions to unproved properties (31,136) (48,960) Drilling and completion costs (693,920) (447,899) Additions to other property and equipment (1,346) (14,082) Settlement of water earnout 125,000 - Proceeds from asset sales - 3,192 Proceeds from VPP sale, net 215,833 - Change in other liabilities - (77) Change in other assets 1,506 2,371 Net cash used in investing activities (384,063) (505,455) Cash flows provided by (used in) financing activities: Repurchases of common stock (43,443) - Issuance of senior notes - 1,800,000 Issuance of convertible notes 287,500 - Repayment of senior notes (899,971) (1,424,354) Borrowings (repayments) on bank credit facilities, net 275,000 (919,500) Payment of debt issuance costs (8,907) (22,814) Sale of noncontrolling interest 300,000 51,000 Distributions to noncontrolling interests in Martica Holdings LLC (17,249) (64,783) Employee tax withholding for settlement of equity compensation awards (373) (12,706) Convertible note equitizations - (85,648) Other (1,004) (692) Net cash used in financing activities (108,447) (679,497) Net increase in cash and cash equivalents - - Cash and cash equivalents, beginning of period - - Cash and cash equivalents, end of period $ - - Supplemental disclosure of cash flow information: Cash paid during the period for interest $ 135,494 130,947 Increase (decrease) in accounts payable and accrued liabilities for additions to property and equipment $ (44,302) 33,547 The following table set forth selected financial data for the three months ended September 30, 2020 and 2021: Three Months Ended Amount of September 30, Increase Percent 2020 2021 (Decrease) Change Revenue: Natural gas sales $ 436,304 884,669 448,365 103 % Natural gas liquids sales 327,426 598,327 270,901 83 % Oil sales 34,265 56,734 22,469 66 % Commodity derivative fair value losses (514,751) (1,250,466) (735,715) 143 % Marketing 91,497 232,685 141,188 154 % Amortization of deferred revenue, VPP 5,175 11,404 6,229 120 % Gain on sale of assets - 539 539 * Other income 675 530 (145) (21) % Total revenue 380,591 534,422 153,831 40 % Operating expenses: Lease operating 21,450 25,363 3,913 18 % Gathering and compression 221,004 218,815 (2,189) (1) % Processing 244,888 207,093 (37,795) (15) % Transportation 190,723 202,317 11,594 6 % Production and ad valorem taxes 25,790 52,219 26,429 102 % Marketing 128,580 266,751 138,171 107 % Exploration 454 235 (219) (48) % Impairment of oil and gas properties 29,392 26,253 (3,139) (11) % Depletion, depreciation, and amortization 238,418 182,810 (55,608) (23) % Accretion of asset retirement obligations 1,115 828 (287) (26) % General and administrative (excluding equity-based compensation) 25,941 27,144 1,203 5 % Equity-based compensation 5,699 5,298 (401) (7) % Contract termination and rig stacking 1,246 3,370 2,124 170 % Total operating expenses 1,134,700 1,218,496 83,796 7 % Operating loss (754,109) (684,074) 70,035 (9) % Other earnings (expenses): Interest expense, net (48,043) (45,414) 2,629 (5) % Equity in earnings of unconsolidated affiliate 24,419 21,450 (2,969) (12) % Gain (loss) on early extinguishment of debt 55,633 (16,567) (72,200) (130) % Transaction expenses (524) (626) (102) 19 % Total other income (expense) 31,485 (41,157) (72,642) (231) % Loss before income taxes (722,624) (725,231) (2,607) 0 % Provision for income tax benefit 168,778 158,656 (10,122) (6) % Net loss and comprehensive loss including noncontrolling interests (553,846) (566,575) (12,729) 2 % Less: net loss and comprehensive loss attributable to noncontrolling interests (18,233) (17,257) 976 (5) % Net loss and comprehensive loss attributable to Antero Resources Corporation $ (535,613) (549,318) (13,705) 3 % Adjusted EBITDAX $ 272,441 358,199 85,758 31 % * Not meaningful The following table set forth selected operating data for the three months ended September, 2020 and 2021: Three Months Ended Amount of September 30, Increase Percent 2020 2021 (Decrease) Change Production data (1): Natural gas (Bcf) 226 205 (21) (9) % C2 Ethane (MBbl) 5,459 4,372 (1,087) (20) % C3+ NGLs (MBbl) 13,400 10,258 (3,142) (23) % Oil (MBbl) 1,367 932 (435) (32) % Combined (Bcfe) 347 299 (48) (14) % Daily combined production (MMcfe/d) 3,772 3,247 (525) (14) % Average prices before effects of derivative settlements (2): Natural gas (per Mcf) $ 1.93 4.31 2.38 123 % C2 Ethane (per Bbl) $ 5.94 13.25 7.31 123 % C3+ NGLs (per Bbl) $ 22.01 52.68 30.67 139 % Oil (per Bbl) $ 25.07 60.87 35.80 143 % Weighted Average Combined (per Mcfe) $ 2.30 5.15 2.85 124 % Average realized prices after effects of derivative settlements (2): Natural gas (per Mcf) $ 2.73 3.00 0.27 10 % C2 Ethane (per Bbl) $ 5.67 13.25 7.58 134 % C3+ NGLs (per Bbl) $ 23.81 38.67 14.86 62 % Oil (per Bbl) $ 34.96 56.31 21.35 61 % Weighted Average Combined (per Mcfe) $ 2.92 3.79 0.87 30 % Average costs (per Mcfe): Lease operating $ 0.06 0.08 0.02 33 % Gathering and compression $ 0.64 0.73 0.09 14 % Processing $ 0.71 0.69 (0.02) (3) % Transportation $ 0.55 0.68 0.13 24 % Production taxes $ 0.07 0.17 0.10 143 % Marketing, net $ 0.11 0.11 - - % Depletion, depreciation, amortization and accretion $ 0.69 0.61 (0.08) (12) % General and administrative (excluding equity-based compensation) $ 0.07 0.09 0.02 29 % (1) Production volumes exclude volumes related to VPP transaction. (2) Average sales prices shown in the table reflect both the before and after effects of the Company's settled commodity derivatives. The calculation of such after effects includes gains on settlements of commodity derivatives, which do not qualify for hedge accounting because the Company does not designate or document them as hedges for accounting purposes. Oil and NGLs production was converted at 6 Mcf per Bbl to calculate total Bcfe production and per Mcfe amounts. This ratio is an estimate of the equivalent energy content of the products and does not necessarily reflect their relative economic value. View original content to download multimedia:https://www.prnewswire.com/news-releases/antero-resources-reports-third-quarter-2021-financial-and-operational-results-301410301.html SOURCE Antero Resources Corporation

Tags:
News

Phillips 66 Announces Agreement to Acquire Phillips 66 Partners

Phillips 66 Announces Agreement to Acquire Phillips 66 Partners All-stock transaction at a fixed exchange ratio of 0.50 PSX shares for each PSXP common unitSimplifies governance and corporate structureTransaction expected to close in the first quarter of 2022 HOUSTON, Oct. 27 /BusinessWire/ -- Phillips 66 (NYSE:PSX) and Phillips 66 Partners ("PSXP" or the "Partnership") (NYSE:PSXP) announced today that they have entered into a definitive agreement for Phillips 66 to acquire all of the publicly held common units representing limited partner interests in the Partnership not already owned by Phillips 66 and its affiliates. The agreement, expected to close in the first quarter of 2022, provides for an all-stock transaction in which each outstanding PSXP common unitholder would receive 0.50 shares of PSX common stock for each PSXP common unit. The Partnership's preferred units would be converted into common units at a premium to the original issuance price prior to exchange for Phillips 66 common stock. "We are announcing an agreement to acquire all outstanding units of Phillips 66 Partners," said Greg Garland, Chairman and CEO of Phillips 66. "We believe this acquisition will allow both PSX shareholders and PSXP unitholders to participate in the value creation of the combined entities, supported by the strong financial position of Phillips 66." The transaction value of the units being acquired is approximately $3.4 billion based on Oct. 26, 2021 market closing prices of both companies. Upon closing, the Partnership will be a wholly owned subsidiary of Phillips 66 and will no longer be a publicly traded partnership. Phillips 66 Project Development Inc., a wholly owned subsidiary of Phillips 66 and the holder of a majority of the outstanding common units of the Partnership, has voted its units to approve the transaction. Citi and BofA Securities, Inc. are acting as financial advisors to Phillips 66, and Latham & Watkins LLP is acting as Phillips 66's legal advisor. The terms of the transaction were unanimously approved by the board of directors of the general partner of Phillips 66 Partners based on the unanimous approval and recommendation of its conflicts committee, comprised entirely of independent directors. The conflicts committee engaged Evercore as its financial advisor and Vinson & Elkins L.L.P. as its legal advisor. No Offer or Solicitation This news release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities pursuant to the proposed transaction or otherwise, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, as amended. Additional Information and Where You Can Find It In connection with the proposed transaction, Phillips 66 will file a registration statement on Form S-4, which will include an information statement of the Partnership with the SEC. INVESTORS AND SECURITYHOLDERS OF PHILLIPS 66 AND THE PARTNERSHIP ARE ADVISED TO CAREFULLY READ THE REGISTRATION STATEMENT AND INFORMATION STATEMENT, PROSPECTUS OR OTHER DOCUMENT (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION, THE PARTIES TO THE TRANSACTION AND THE RISKS ASSOCIATED WITH THE TRANSACTION. A definitive information statement will be sent to securityholders of the Partnership in connection with any solicitation of proxies or consents of the Partnership unitholders relating to the proposed transaction. Investors and securityholders may obtain a free copy of such documents and other relevant documents (if and when available) filed by Phillips 66 or the Partnership with the SEC from the SEC's website at www.sec.gov. Securityholders and other interested parties will also be able to obtain, without charge, a copy of such documents and other relevant documents (if and when available) from Phillips 66's website at www.phillips66.com under the "Investors" tab under the heading "SEC Filings" or from the Partnership's website at www.phillips66partners.com under the "Investors" tab and the "SEC Filings" sub-tab. Participants in the Solicitation Relating to the Merger Phillips 66, the Partnership and their respective directors, executive officers and certain other members of management may be deemed to be participants in the solicitation of proxies and consents in respect of the transaction. Information about these persons is set forth in Phillips 66's proxy statement relating to its 2021 Annual Meeting, which was filed with the SEC on March 31, 2021; Phillips 66's Annual Report on Form 10-K, which was filed with the SEC on February 24, 2021; certain of Phillips 66's Current Reports on Form 8-K; the Partnership's Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the SEC on February 24, 2021, and subsequent statements of changes in beneficial ownership on file with the SEC. Securityholders and investors may obtain additional information regarding the interests of such persons, which may be different than those of the respective companies' securityholders generally, by reading the registration statement/ information statement/prospectus and other relevant documents regarding the transaction (if and when available), which may be filed with the SEC. CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as "is anticipated," "is estimated," "is expected," "is planned," "is scheduled," "is targeted," "believes," "continues," "intends," "will," "would," "objectives," "goals," "projects," "efforts," "strategies" and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management's expectations, estimates and projections as of the date they are made. These statements are not guarantees of future performance and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements contained in this release include, but are not limited to, statements regarding the expected benefits of the potential transaction to Phillips 66 and its shareholders and Phillips 66 Partners and its unitholders, and the anticipated consummation of the proposed transaction and the timing thereof. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: uncertainties as to the timing to consummate the potential transaction; the effects of disruption to Phillips 66's or Phillips 66 Partners' respective businesses; the effect of this communication on the price of Phillips 66's shares or Phillips 66 Partners' common units; transaction costs; Phillips 66's ability to achieve benefits from the proposed transaction; and the diversion of management's time on transaction-related issues. Other factors that could cause actual results to differ from those in forward-looking statements include: the continuing effects of the COVID-19 pandemic and its negative impact on commercial activity and demand for refined petroleum products; the inability to timely obtain or maintain permits necessary for capital projects; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; the level and success of drilling and production volumes around the companies' assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; failure to complete construction of capital projects on time and within budget; the inability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; potential disruption of operations due to accidents, weather events, including as a result of climate change, terrorism or cyberattacks; general domestic and international economic and political developments including armed hostilities, expropriation of assets, and other political, economic or diplomatic developments, including those caused by public health issues and international monetary conditions and exchange controls; changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum products, or renewable fuels pricing, regulation or taxation, including exports; changes in estimates or projections used to assess fair value of intangible assets, goodwill and property and equipment and/or strategic decisions with respect to our asset portfolio that cause impairment charges; investments required, or reduced demand for products, as a result of environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); the operation, financing and distribution decisions of equity affiliates we do not control; and other economic, business, competitive and/or regulatory factors affecting Phillips 66's and Phillips 66 Partners' businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 and Phillips 66 Partners are under no obligation (and expressly disclaim any such obligation) to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. About Phillips 66 Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Headquartered in Houston, the company has 14,000 employees committed to safety and operating excellence. Phillips 66 had $57 billion of assets as of June 30, 2021. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co. About Phillips 66 Partners Headquartered in Houston, Phillips 66 Partners is a master limited partnership formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum products and natural gas liquids pipelines, terminals and other midstream assets. For more information, visit www.phillips66partners.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20211027005631/en/   back

Tags:
News

Hess Reports Estimated Results for the Third Quarter of 2021

Hess Reports Estimated Results for the Third Quarter of 2021 Key Developments:Announced an increase to the gross discovered recoverable resource estimate on the Stabroek Block, offshore Guyana, to approximately 10 billion barrels of oil equivalent (boe), up from the previous estimate of more than 9 billion boeAnnounced the 19th, 20th and 21st significant discoveries on the Stabroek Block at Whiptail, Pinktail and CatabackThe Liza Unity floating production, storage and offloading vessel (FPSO) arrived at the Stabroek Block on October 25th; production from Phase 2 is on track to startup in early 2022Third Quarter Financial and Operational Highlights:Net income was $115 million, or $0.37 per common share, compared with a net loss of $243 million, or $0.80 per common share, in the third quarter of 2020Adjusted net income1 was $86 million, or $0.28 per common share, compared with an adjusted net loss of $216 million, or $0.71 per common share, in the third quarter of 2020Oil and gas net production, excluding Libya, was 265,000 barrels of oil equivalent per day (boepd); Bakken net production was 148,000 boepdE&P capital and exploratory expenditures were $498 million compared with $331 million in the prior-year quarterCash and cash equivalents, excluding Midstream, were $2.41 billion at September 30, 2021 NEW YORK, Oct. 27 /BusinessWire/ -- Hess Corporation (NYSE:HES) today reported net income of $115 million, or $0.37 per common share, in the third quarter of 2021, compared with a net loss of $243 million, or $0.80 per common share, in the third quarter of 2020. On an adjusted basis, the Corporation reported net income of $86 million, or $0.28 per common share, in the third quarter of 2021, compared with an adjusted loss of $216 million, or $0.71 per common share, in the prior-year quarter. The improvement in adjusted after-tax results compared with the prior-year period was primarily due to higher realized selling prices in the third quarter of 2021, partially offset by the impact of lower net production, including curtailed production in the Bakken related to the Tioga Gas Plant maintenance turnaround and reduced Gulf of Mexico production due to Hurricane Ida. "Our company continues to successfully execute our strategy - to grow our resource base, have a low cost of supply and sustain cash flow growth - while delivering industry leading environmental, social and governance performance and disclosure," CEO John Hess said. "We are well positioned to deliver strong and durable cash flow growth that will allow us to significantly increase cash returns to shareholders in the coming years through dividend increases and opportunistic share repurchases." After-tax income (loss) by major operating activity was as follows: Exploration and Production: E&P net income was $178 million in the third quarter of 2021, compared with a net loss of $182 million in the third quarter of 2020. On an adjusted basis, E&P's third quarter 2021 net income was $149 million compared with an adjusted net loss of $156 million in the prior-year quarter. The Corporation's average realized crude oil selling price, including the effect of hedging, was $63.17 per barrel in the third quarter of 2021, compared with $45.60 per barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the third quarter of 2021 was $32.88 per barrel, compared with $11.63 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.71 per mcf, compared with $2.94 per mcf in the third quarter of 2020. Net production, excluding Libya, was 265,000 boepd in the third quarter of 2021, compared with 321,000 boepd in the third quarter of 2020, due to lower production in the Bakken and Gulf of Mexico, partially offset by higher production in Guyana. Net production for Libya was 19,000 boepd in the third quarter of 2021 compared with zero in the third quarter of 2020 due to force majeure declared by the Libyan National Oil Corporation. Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $12.76 per boe (excluding Libya: $13.45 per boe) in the third quarter of 2021, compared with $9.86 per boe excluding items affecting comparability of earnings between periods (excluding Libya: $9.69 per boe) in the prior-year quarter. The change in per unit cost reflects the impact of lower production volumes, and higher workover activity and production and severance taxes in North Dakota in the third quarter of this year. Income tax expense increased in the third quarter of 2021 compared with the year-ago period primarily due to higher production in Libya. Operational Highlights for the Third Quarter of 2021: Bakken (Onshore U.S.): Net production from the Bakken was 148,000 boepd compared with 198,000 boepd in the prior-year quarter, primarily due to the impact of lower drilling activity caused by a reduction in rig count from six to one during the first half of last year, lower NGL and natural gas volumes received under percentage of proceeds contracts due to higher commodity prices, curtailed production related to the planned Tioga Gas Plant maintenance turnaround completed in the quarter and the second quarter 2021 sale of Little Knife and Murphy Creek nonstrategic acreage interests. Net oil production was 78,000 barrels of oil per day (bopd) in the third quarter of 2021 and 108,000 bopd in the prior year quarter. NGL and natural gas volumes received under percentage of proceeds contracts were 9,000 boepd in the third quarter of 2021 compared with 22,000 boepd in the third quarter of 2020 due to higher realized NGL prices lowering volumes received as consideration for gas processing fees. In 2021, the Corporation added a second rig in February and a third rig in September. During the third quarter of 2021, we drilled 18 wells, completed 22 wells, and brought 19 new wells online. Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 32,000 boepd, compared with 49,000 boepd in the prior-year quarter, primarily due to the sale of the Corporation's interest in the Shenzi Field in the fourth quarter of 2020, higher hurricane related downtime in the third quarter of 2021, and natural field decline. Net production from the Shenzi Field was 9,000 boepd in the third quarter of 2020. Guyana (Offshore): At the Stabroek Block (Hess - 30%), the Corporation's net production from the Liza Field was 32,000 bopd in the third quarter of 2021 compared with 19,000 bopd in the prior-year quarter. The Liza Unity FPSO, with an expected capacity of 220,000 gross bopd, arrived at the Stabroek Block on October 25 th, and startup of Phase 2 of the Liza Field development remains on track for early 2022. The third development, Payara, will utilize the Prosperity FPSO with an expected capacity of 220,000 gross bopd; first oil is expected in 2024. A fourth development, Yellowtail, has been identified on the Stabroek Block with anticipated startup in 2025, pending government approvals and project sanctioning. We expect to have at least six FPSOs on the Stabroek Block by 2027, with the potential for up to 10 FPSOs to develop the current discovered recoverable resource base. Since July, the operator, Esso Exploration and Production Guyana Limited, has announced the 19th, 20th and 21st significant discoveries at Whiptail, Pinktail and Cataback, and earlier this month increased the gross discovered recoverable resource estimate for the block to approximately 10 billion boe, up from the previous estimate of more than 9 billion boe. The Whiptail-1 well encountered 246 feet of net pay in high quality oil bearing sandstone reservoirs, and the Whiptail-2 well, which is located 3 miles northeast of Whiptail-1 encountered 167 feet of net pay in high quality oil bearing sandstone reservoirs. The Pinktail well encountered 220 feet of net pay in high quality oil bearing sandstone reservoirs. Pinktail is located approximately 21.7 miles southeast of the Liza Phase 1 development and approximately 3.7 miles southeast of Yellowtail-1. The Cataback well encountered 243 feet of net pay in high quality hydrocarbon bearing sandstone reservoirs of which 102 feet is oil bearing. Cataback is located approximately 3.7 miles east of the Turbot-1 well. Following the completion of the Cataback well, the Noble Tom Madden commenced Phase 2 drilling and completion activities. The Stena Carron completed drill stem tests on Uaru-1 and Mako-2 and is currently performing a drill stem test on Longtail-2. Following the completion of the Pinktail well, the Noble Don Taylor commenced development drilling at Payara. The Noble Sam Croft and Noble Bob Douglas are currently drilling and completing Phase 2 development wells, and the Stena Drillmax left the Stabroek Block following the completion of the Whiptail-1 well and will return in the fourth quarter to drill the Fangtooth prospect. South East Asia (Offshore): Net production at North Malay Basin and JDA was 50,000 boepd in both the current quarter and prior-year quarter. Denmark (Offshore): In August, the Corporation completed the sale of its interests in Denmark for adjusted proceeds of approximately $130 million. Net production from Denmark was 3,000 boepd in the third quarter of 2021 compared with 5,000 boepd in the prior-year quarter. Midstream: The Midstream segment had net income of $61 million in the third quarter of 2021, compared with net income of $56 million in the prior-year quarter, primarily due to higher revenue from minimum volume commitments and tariff rates partially offset by costs associated with the planned Tioga Gas Plant maintenance turnaround, which was safely and successfully completed. In August 2021, Hess Midstream Operations LP (HESM Opco), a consolidated subsidiary of Hess Midstream LP, completed the purchase of approximately 31 million of HESM Opco Class B units from Hess Corporation and Global Infrastructure Partners for $750 million. The Corporation received net proceeds of $375 million. The purchase was financed by the issuance of $750 million of 4.250% senior unsecured notes due 2030 by HESM Opco. In October 2021, Hess Midstream LP completed a public offering of approximately 8.6 million Class A shares held by Hess Corporation and Global Infrastructure Partners. The Corporation received net proceeds of approximately $108 million. After giving effect to these transactions, the Corporation owns an approximate 44% interest in Hess Midstream LP, on a consolidated basis. Corporate, Interest and Other: After-tax expense for Corporate, Interest and Other was $124 million in the third quarter of 2021, compared with $117 million in the third quarter of 2020. Capital and Exploratory Expenditures: E&P capital and exploratory expenditures were $498 million in the third quarter of 2021 compared with $331 million in the prior-year quarter, primarily due to higher drilling activity in the Bakken, Guyana and JDA, partially offset by lower drilling activity in the Gulf of Mexico. Midstream capital expenditures were $59 million in the third quarter of 2021, down from $66 million in the prior-year quarter. Liquidity: Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $2.41 billion and debt and finance lease obligations totaling $6.12 billion at September 30, 2021. The Midstream segment had cash and cash equivalents of $5 million and total debt of $2.6 billion at September 30, 2021. The Corporation's debt to capitalization ratio as defined in its debt covenants was 44.5% at September 30, 2021 and 47.5% at December 31, 2020. During the quarter, the Corporation received net proceeds of approximately $130 million from the sale of its interests in Denmark and $375 million from the repurchase by HESM Opco of approximately 15.6 million Hess-owned Class B units. The Corporation also prepaid $500 million of its $1.0 billion term loan. In October, the Corporation received net proceeds of approximately $108 million from the public offering of approximately 4.3 million Hess-owned Class A shares of Hess Midstream LP. Net cash provided by operating activities was $615 million in the third quarter of 2021, up from $136 million in the third quarter of 2020. Net cash provided by operating activities before changes in operating assets and liabilities2 was $631 million in the third quarter of 2021, compared with $468 million in the prior-year quarter primarily due to higher realized selling prices, partially offset by the impact of lower net production. Changes in operating assets and liabilities decreased cash flow from operating activities by $16 million during the third quarter of 2021 and by $332 million during the prior-year quarter. Items Affecting Comparability of Earnings Between Periods: The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods: Third Quarter 2021: E&P results include a pre-tax gain of $29 million ($29 million after income taxes) associated with the sale of the Corporation's interests in Denmark. Third Quarter 2020: Third quarter results included a pre-tax charge for severance of $27 million ($27 million after income taxes) related to cost reduction initiatives. The pre-tax amounts are reported in Operating costs and expenses ($20 million), General and administrative expenses ($6 million), and Exploration expenses ($1 million). Reconciliation of U.S. GAAP to Non-GAAP Measures: The following table reconciles reported net income (loss) attributable to Hess Corporation and adjusted net income (loss): The following table reconciles reported net cash provided by (used in) operating activities from net cash provided by (used in) operating activities before changes in operating assets and liabilities: Hess Corporation will review third quarter financial and operating results and other matters on a webcast at 10 a.m. today (EDT). For details about the event, refer to the Investor Relations section of our website at www.hess.com. Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com. Forward-looking Statements This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipate," "estimate," "expect," "forecast," "guidance," "could," "may," "should," "would," "believe," "intend," "project," "plan," "predict," "will," "target" and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, NGL and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects, and future economic and market conditions in the oil and gas industry. Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices of crude oil, NGL and natural gas and competition in the oil and gas exploration and production industry, including as a result of the global COVID-19 pandemic; reduced demand for our products, including due to the global COVID-19 pandemic or the outbreak of any other public health threat, or due to the impact of competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring as well as fracking bans; disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks or health measures related to the COVID-19 pandemic; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital, including as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation, including exposure to decommissioning liabilities for divested assets in the event the current or future owners are unable to perform and heightened risks associated with being a general partner of Hess Midstream LP; and other factors described in Item 1A-Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission (SEC). As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Non-GAAP financial measures The Corporation has used non-GAAP financial measures in this earnings release. "Adjusted net income (loss)" presented in this release is defined as reported net income (loss) attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. "Net cash provided by (used in) operating activities before changes in operating assets and liabilities" presented in this release is defined as Net cash provided by (used in) operating activities excluding changes in operating assets and liabilities. Management uses adjusted net income (loss) to evaluate the Corporation's operating performance and believes that investors' understanding of our performance is enhanced by disclosing this measure, which excludes certain items that management believes are not directly related to ongoing operations and are not indicative of future business trends and operations. Management believes that net cash provided by (used in) operating activities before changes in operating assets and liabilities demonstrates the Corporation's ability to internally fund capital expenditures, pay dividends and service debt. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income (loss) or net cash provided by (used in) operating activities. A reconciliation of reported net income (loss) attributable to Hess Corporation (U.S. GAAP) to adjusted net income (loss), and a reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by (used in) operating activities before changes in operating assets and liabilities are provided in the release. Cautionary Note to Investors We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged to consider closely the oil and gas disclosures in Hess Corporation's Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system. Midstream debt is non-recourse to Hess Corporation. Includes finance lease obligations. Midstream interest expense is reported in the Midstream operating segment. Includes amounts charged from the Midstream segment. Includes after-tax losses from realized crude oil hedging activities of $50 million (noncash premium amortization: $50 million; cash settlement: $0 million). Includes after-tax losses from realized crude oil hedging activities of $14 million (noncash premium amortization: $14 million; cash settlement: $0 million). Includes after-tax gains from realized crude oil hedging activities of $123 million (noncash premium amortization: $61 million; cash settlement: $184 million). Includes after-tax gains from realized crude oil hedging activities of $20 million (noncash premium amortization: $7 million; cash settlement: $27 million). Includes amounts charged from the Midstream segment. Includes after-tax losses from realized crude oil hedging activities of $51 million (noncash premium amortization: $51 million; cash settlement: $0 million). Includes after-tax losses from realized crude oil hedging activities of $13 million (noncash premium amortization: $13 million; cash settlement: $0 million). Includes amounts charged from the Midstream segment. Includes after-tax losses from realized crude oil hedging activities of $140 million (noncash premium amortization: $140 million; cash settlement: $0 million). Includes after-tax losses from realized crude oil hedging activities of $35 million (noncash premium amortization: $35 million; cash settlement: $0 million). Includes after-tax gains from realized crude oil hedging activities of $368 million (noncash premium amortization: $167 million; cash settlement: $535 million). Includes after-tax gains from realized crude oil hedging activities of $67 million (noncash premium amortization: $20 million; cash settlement: $87 million). The Corporation sold its working interest in the Shenzi Field in the deepwater Gulf of Mexico in the fourth quarter of 2020. Net production from the Shenzi Field was 9,000 boepd in the third quarter of 2020. Other includes production from Denmark and Libya. Denmark net production was 3,000 boepd in the third quarter of 2021, 5,000 boepd in the third quarter of 2020 and 4,000 boepd in the second quarter of 2021. Libya net production was 19,000 boepd in the third quarter of 2021, 0 boepd in the third quarter of 2020 and 21,000 boepd in the second quarter of 2021. The Corporation sold its working interest in the Shenzi Field in the deepwater Gulf of Mexico in the fourth quarter of 2020. Net production from the Shenzi Field was 11,000 boepd in the first nine months of 2020. Other includes production from Denmark and Libya. Denmark net production was 4,000 boepd in the first nine months of 2021 and 6,000 boepd in the first nine months of 2020. Libya net production was 19,000 boepd in the first nine months of 2021 and 2,000 boepd in the first nine months of 2020. Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported. Sales volumes for the first nine months of 2021 include 4.2 million barrels of crude oil that were stored on VLCCs at December 31, 2020 and sold in the first quarter of 2021. Other includes prices related to production from Denmark and Libya. Excluding the two VLCC cargo sales in the first quarter of 2021 totaling 4.2 million barrels, the North Dakota crude oil price for the first nine months of 2021 excluding hedging was $59.99 per barrel and $55.29 per barrel including hedging. Other includes prices related to production from Denmark and Libya. The following is a summary of the Corporation's outstanding commodity hedging program at September 30, 2021: Subsequent to quarter end, we acquired additional calendar 2022 collars with the same contract terms shown above, increasing the volumes hedged for 2022 to 90,000 bopd for WTI and 60,000 bopd for Brent. View source version on businesswire.com: https://www.businesswire.com/news/home/20211027005241/en/   back

Tags:
News

Equinor third quarter 2021 results

Equinor third quarter 2021 results Equinor (OSE: EQNR, NYSE:EQNR) reports adjusted earnings of USD 9.77 billion and USD 2.78 billion after tax in the third quarter of 2021. IFRS net operating income was USD 9.57 billion and the IFRS net income was USD 1.41 billion. The third quarter of 2021 was characterised by: Strong results due to higher prices and solid operating performanceVery strong cash flow and continued improvement of adjusted net debt ratio(1) to 13.2%.Optimising gas production and Troll Phase 3 brought on streamCash dividend of USD 0.18 per share and increasing second tranche of share buy-back from USD 300 million to USD 1 billion "We capture value from the higher commodity prices and with a solid operational performance we deliver strong results. Strict capital discipline and a very strong net cash flow strengthen our balance sheet and improve our adjusted net debt ratio to 13.2%," says Anders Opedal, President and CEO of Equinor ASA. "The global economy is in recovery, but we are still prepared for volatility related to the impact of the pandemic. The current unprecedented level and volatility in European gas prices underlines the uncertainty in the market. Equinor has an important role as a reliable energy provider to Europe and we have taken steps to increase our gas exports to respond to the high demand," says Opedal. "The highly profitable Troll Phase 3 was brought on stream and Martin Linge has been ramping up, both supplying gas to Europe with low emissions from production. Our large offshore wind projects are progressing according to plan. Together with our partners, we reached an important milestone with the East Coast Cluster in the UK named as one of the two first carbon capture, usage and storage clusters in the country. In Norway, we launched a plan for industry cooperation for the transition of the Norwegian Continental Shelf as an energy hub in a low carbon future," says Opedal. Adjusted earnings [5] were USD 9.77 billion in the third quarter, up from USD 0.78 billion in the same period in 2020. Adjusted earnings after tax [5] were USD 2.78 billion, up from USD 0.27 billion in the same period last year. IFRS net operating income was USD 9.57 billion in the third quarter, up from negative USD 2.02 billion in the same period in 2020. IFRS net income was USD 1.41 billion in the third quarter, compared to negative USD 2.12 billion in the third quarter of 2020. Net operating income was impacted by higher prices for gas and liquids, significant positive effects from derivatives mainly related to European gas, and net reversal of impairments of USD 0.51 billion including a reversal of USD 0.98 billion related to an offshore asset in E&P Norway and an impairment of USD 0.48 billion related to a refinery in the Marketing, midstream and processing segment. The results of all E&P segments are positively impacted by the higher commodity prices. Strong operational performance, continued improvement focus and strict capital discipline supported additional value creation and strong cash flow. Based on updated estimates, taxes to be paid on the Norwegian Continental Shelf in the fourth quarter are expected at around USD 6.32 billion(2), of which USD 4.99 billion was paid on 1 October. Half of the petroleum taxes to Norway related to 2021 will be paid in the first half of 2022. E&P Norway also benefitted from a positive contribution from new fields in production. With only one tax payment based on previously lower price expectations, E&P Norway contributed significantly to the group cash flow in the quarter. The Marketing, midstream and processing segment delivered high results mainly due to the mark to market impact of derivatives related to gas sales to Europe. These gains will be followed by losses in the segment when volumes are delivered under the long-term contracts. The decision to take derivative positions has been beneficial to the group but created volatility in this segment. In addition to the effect from the derivatives related to the European gas market, the results were positively impacted by solid results from North American gas. Compared to the same quarter last year the Renewables segment experienced lower winds for the offshore wind assets, partially offset by high availability and higher electricity prices. From the third quarter Equinor has decided to change its policy and will exclude gains and losses from sales of assets from the adjusted earnings for the Renewables segment. Equinor delivered total equity production of 1,996 mboe per day in the third quarter, up from 1,994 mboe per day in the same period in 2020. Production from a new field and increased production from Johan Sverdrup, as well as solid production efficiency and optimised gas production was partially offset by the divestment of Bakken and the shutdown of Hammerfest LNG. Equity production of renewable energy for the quarter was 304 GWh, down from 319 GWh for the same period last year, impacted by lower wind than the seasonal average. At the end of third quarter 2021, Equinor had completed 17 exploration wells with 6 commercial discoveries and 11 wells were ongoing. Adjusted exploration expenses in the third quarter were USD 0.21 billion, compared to USD 0.30 billion in the same quarter of 2020. Cash flows provided by operating activities before taxes paid and changes in working capital amounted to USD 10.80 billion for the third quarter, compared to USD 3.34 billion for the same period in 2020. Organic capital expenditure [5] was USD 5.89 billion for the first nine months of 2021. At the end of the quarter adjusted net debt to capital employed (3) was 13.2 %, down from 16.4% in the second quarter of 2021. Including the lease liabilities according to IFRS 16, the net debt to capital employed (3) was 20.2%. The board of directors has declared a cash dividend of USD 0.18 per share for the third quarter of 2021. In the quarter Equinor completed the market transactions of the first tranche of the share buy-back program for 2021 with a total value of USD 99 million. This corresponds to USD 300 million in total, including shares to be redeemed from the Norwegian State and annulled. Based on favourable commodity price conditions, strong cash flow generation and an adjusted net debt ratio(3) of 13.2% the board of directors has decided to increase the size of the second tranche of the share buy-back, from an indicative level of USD 300 million communicated at the Capital Market Day in June, to USD 1 billion, including shares to be redeemed from the Norwegian State. The second tranche commences on 27 October and will end no later than 31 January 2022. The twelve-month average Serious Incident Frequency (SIF) for the period ending 30 September was 0.4 for 2021, down from 0.5 in 2020. The twelve-month average Recordable Injury Frequency (TRIF) for the period ending 30 September was 2.5, up from 2.3 in 2020. Further information from: Investor relationsPeter Hutton,Senior vice president Investor relations,+44 7881 918 792 (mobile) PressSissel Rinde,vice president Media relations,+47 412 60 584 (mobile) ***(1) (3) This is a non-GAAP figure. Comparison numbers and reconciliation to IFRS are presented in the table Calculation of capital employed and net debt to capital employed ratio as shown under the Supplementary section in the report. (2) Based on USD/NOK exchange rate of 8.78 [5] These are non-GAAP figures. See Use and reconciliation of non-GAAP financial measures in the report for more details. *** This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act Attachments Equinor Third Quarter 2021 Financial Statements and Review Press Release Equinor 3rd Quarter 2021 Results CFO Presentation 3rd Quarter 2021 Results

Tags:
News

Liberty Oilfield Services Inc. Announces Third Quarter 2021 Financial and Operational Results and the Acquisition of PropX

Liberty Oilfield Services Inc. Announces Third Quarter 2021 Financial and Operational Results and the Acquisition of PropX DENVER, Oct. 26 /BusinessWire/ -- Liberty Oilfield Services Inc. (NYSE:LBRT) announced today third quarter 2021 financial and operational results and acquisition of PropX. Summary Results and Highlights Revenue of $654 million, representing a 12% sequential increase, and net loss1 of $39 million, or $0.22 fully diluted loss per share for the quarter ended September 30, 2021 Adjusted EBITDA2 of $32 million Announced the acquisition of Proppant Express Investments, LLC ("PropX"), a provider of proppant delivery equipment, logistics and software solutions Executed multi-year arrangements to deploy Liberty's digiFrac™ electric fleet in 2022 Announced an amendment to its secured asset-based revolving credit facility ("ABL Facility") that provides for a $100 million increase in aggregate commitment to $350 million and extends the maturity date until October 2026 Achieved 24 hours of continuous plug and perforation pumping time on two occasions "Liberty achieved solid momentum in the third quarter. Total revenues increased 12% sequentially as activity and service pricing rose during the period. The underlying growth was a testament to the Liberty team's focus on customer engagement, service quality and technology. We were able to deliver strong growth while navigating integration activities, cost inflation and the disruptive impact of the pandemic on global supply chains and labor availability," commented Chris Wright, Chief Executive Officer. "The third quarter benefited from service price increases, but Liberty was not immune to the serious supply chain issues the world faces today as faster cost increases more than offset higher prices during the period. Increased transportation costs and driver shortages, maintenance personnel and supply chain constraints and integration costs hurt margins in the period. For instance, we estimate that rapidly increasing logistics costs that were not passed through to customers in the quarter were approximately $12 million, and maintenance costs were $8 million higher than normal due to integration and Covid related disruptions. While we expect the supply chain, logistics and integration challenges to continue into the fourth quarter, we are actively working to moderate their effect on margins." "Activity and momentum are expected to continue to strengthen in the fourth quarter and into 2022 supported by strong industry fundamentals and demand for Liberty. Against this backdrop, Liberty is excited to announce the execution of the first two multi-year arrangements to deploy Liberty's digiFrac electric fleets in 2022 with long-standing Liberty customers. The technical ingenuity and design of the first purpose-built electric frac fleet has been well-received by E&P operators and we are developing our multi-year deployment strategy in conjunction with our customer partners," continued Mr. Wright. PropX Acquisition Liberty announced today it has acquired PropX for an aggregate purchase price of approximately $90.0 million, subject to normal closing adjustments, consisting of $13.5 million in cash and the equivalent of 5.8 million shares of Liberty's common stock valued at $76.5 million based on a 30-day average closing share price of $13.08 on October 25, 2021. Founded in 2016, PropX is a leading provider of last-mile proppant delivery solutions including proppant handling equipment and logistics software across North America. PropX offers innovative environmentally friendly technology with optimized dry and wet sand containers and wellsite proppant handling equipment that drive logistics efficiency and reduce noise and emissions. PropX wet sand handling technology is a key enabler of the next step of cost and emissions reductions in the proppant industry. PropX also offers customers the latest real-time logistics software, PropConnect, for sale or as hosted SaaS service. PropX will continue to sell and deliver these solutions industry-wide. The transaction positions Liberty as an integrated provider of completion services with proppant, equipment, logistics and integrated software that will improve Liberty's operational and logistics efficiency. We also expect the leading-edge wet sand handling technology to reduce the environmental impact and cost of completions for Liberty's frac customers and the industry. "We have a relentless focus on building value over the long term, and we are pleased to announce the acquisition of PropX, at a highly accretive valuation multiple. The addition of PropX integrates the latest proppant delivery technologies and software into our supply chain and brings advanced, ESG-friendly wet sand handling technology and expertise that we can bring to the whole industry. Together, we believe these solutions will reduce the environmental impact of last-mile delivery and lower our total delivered cost to our customers," commented Mr. Wright. "This acquisition exemplifies our strategy of investing for the future and maintaining a clear focus on technology innovation, highly efficient operations and a strong balance sheet to deliver greater value for our shareholders through cycles." Outlook During the third quarter, worldwide economic activity continued to grow, despite supply chain disruptions, materials shortages, labor scarcity, rising costs, and Covid-related uncertainty. The demand for energy continues to outpace the gradual return of supply, as evidenced by the energy crises in Europe and China and low inventories. Global oil and gas supply remains constrained by underinvestment in oil and gas production and associated infrastructure. Tightness in global commodity markets is bolstering demand for frac services in support of energy consumption. Concurrently, there has been frac industry consolidation, equipment cannibalization and attrition. Customers are in search of modern, environmentally friendly solutions. The shift towards next generation equipment, leading edge engineering solutions and the digitalization of the oilfield is defining the next phase of the cycle. Liberty is in a highly advantaged position with top tier technology innovation, engineering prowess, service quality, and ESG-friendly equipment. "Today, we have a stronger, more flexible business with greater underlying efficiency resulting from the integration of OneStim®, the opportunistic acquisition of PropX, investment in digiFrac and digital software systems. Our entire team is focused on improving every aspect of our business to maintain and grow our competitive edge in this upcycle," commented Mr. Wright. "Importantly, we believe the strong momentum will continue, with incremental service price increases that likely manifest more noticeably entering 2022. We are at the early innings of the cycle with the right technology, people, and commitment to excellence, and we believe our relentless focus on providing the best service to our customers sets up for a stronger 2022." Third Quarter Results For the third quarter of 2021, revenue increased 12% to $654 million from $581 million in the second quarter of 2021. Net loss before income taxes totaled $39 million for the third quarter of 2021 compared to net loss before income taxes of $36 million for the second quarter of 2021. Net loss1 (after taxes) totaled $39 million for the third quarter of 2021 compared to net loss1 of $52 million in the second quarter of 2021. Net loss1 (after tax) in the second quarter included the impacts of a valuation allowance recorded against a portion of the Company's deferred tax assets and related remeasurement of the Company's liability under the tax receivable agreement. Adjusted EBITDA2, decreased to $32 million from $37 million in the second quarter. Fully diluted loss per share was $0.22 for the third quarter of 2021 compared to $0.29 for the second quarter of 2021. Balance Sheet and Liquidity As of September 30, 2021, Liberty had cash on hand of $35 million, an increase from second quarter levels as working capital increased, and total debt of $122 million, including $16 million drawn on the ABL credit facility, net of deferred financing costs and original issue discount. The term loan requires only a 1% annual amortization of principal, paid quarterly. Recently, the term loan maturity date was extended by two years and no substantial payment is due until maturity in September 2024, subject to mandatory prepayments from excess cash flow. Total liquidity, including availability under the credit facility, was $268 million as of September 30, 2021. In October, 2021, Liberty amended its secured asset-based revolving credit facility. The amendment extends the maturity date of the facility from September 2022 to October 2026 and provides for a $100 million increase in aggregated commitment to $350 million. Availability under the amended ABL Facility is subject to a borrowing base, supported by receivables and inventory. The ABL Facility has a $75 million uncommitted accordion feature which, subject to satisfaction of specific terms and conditions, would provide for increased availability under the credit facility. Conference Call Liberty will host a conference call to discuss the results at 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time) on Wednesday, October 27, 2021. Presenting Liberty's results will be Chris Wright, Chief Executive Officer, Ron Gusek, President, and Michael Stock, Chief Financial Officer. Individuals wishing to participate in the conference call should dial (833) 255-2827, or for international callers (412) 902-6704. Participants should ask to join the Liberty Oilfield Services call. A live webcast will be available at http://investors.libertyfrac.com. The webcast can be accessed for 90 days following the call. A telephone replay will be available shortly after the call and can be accessed by dialing (877) 344-7529, or for international callers (412) 317-0088. The passcode for the replay is 10148935. The replay will be available until November 4, 2021. About Liberty Liberty is a leading North American oilfield services firm that offers one of the most innovative suites of completion services and technologies to onshore oil and natural gas exploration and production companies. Liberty was founded in 2011 with a relentless focus on developing and delivering next generation technology for the sustainable development of unconventional energy resources in partnership with our customers. Liberty is headquartered in Denver, Colorado. For more information about Liberty, please contact Investor Relations at IR@libertyfrac.com. Non-GAAP Financial Measures This earnings release includes unaudited non-GAAP financial and operational measures, including EBITDA, Adjusted EBITDA and Pre-Tax Return on Capital Employed. We believe that the presentation of these non-GAAP financial and operational measures provides useful information about our financial performance and results of operations. Non-GAAP financial and operational measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of non-GAAP financial and operational measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with U.S. GAAP. See the tables entitled Reconciliation and Calculation of Non-GAAP Financial and Operational Measures for a reconciliation or calculation of the non-GAAP financial or operational measures to the most directly comparable GAAP measure. Forward-Looking and Cautionary Statements The information above includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included herein concerning, among other things, the deployment of fleets in the future, planned capital expenditures, future cash flows and borrowings, pursuit of potential acquisition opportunities, our financial position, return of capital to stockholders, business strategy and objectives for future operations, are forward-looking statements. These forward-looking statements are identified by their use of terms and phrases such as "may," "expect," "estimate," "outlook," "project," "plan," "believe," "intend," "achievable," "anticipate," "will," "continue," "potential," "likely," "should," "could," and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this earnings release will not be achieved. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in Liberty's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for us to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in "Item 1A. Risk Factors" included in our Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the SEC on February 24, 2021 and in our other public filings with the SEC. These and other factors could cause our actual results to differ materially from those contained in any forward-looking statements. View source version on businesswire.com: https://www.businesswire.com/news/home/20211026006345/en/   back

Tags:
News

Range Announces Third Quarter 2021 Financial Results

Range Announces Third Quarter 2021 Financial Results FORT WORTH, Texas, Oct. 26, 2021 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its third quarter 2021 financial results. Highlights – Realizations before index hedges of $4.37 per mcfe, or approximately $0.36 above NYMEX natural gasPre-hedge NGL realization of $34.05 per barrel, a $6.14 per barrel increase versus prior quarterNatural gas differentials, including basis hedging, averaged $0.35 per mcf below NYMEXAll-in third quarter capital spending was $96 million, approximately 23% of the annual budgetProduction averaged 2.14 Bcfe per day, approximately 30% liquidsReduced total debt outstanding by approximately $91 millionAll-in 2021 capital budget lowered by $10 million to $415 millionImproved midpoint of 2021 natural gas differential guidance by approximately $0.07 per mcfIncreased midpoint of 2021 NGL differential guidance by $0.25 per barrelDivestiture contingent consideration fair value increased $12.9 million to $50.2 million Commenting on the quarter, Jeff Ventura, the Company's CEO said, "Range remains committed to disciplined capital spending and generating sustainable free cash flow. This was demonstrated in the third quarter, as Range generated $276 million in operating cash flow before changes in working capital, as compared to just $96 million of all-in capital spending. We expect to generate significant free cash flow in the coming quarters and rapidly approach balance sheet targets with leverage trending below 1x by the end of next year at current strip pricing. Additionally, we continue to make progress on other key objectives: improving margins, generating free cash flow, and operating safely while maintaining peer-leading capital efficiency. We believe Range is differentiated as a result of our low sustaining capital, competitive cost structure, liquids optionality, marketing strategies, environmental leadership and importantly, our multi-decade core inventory life, which is an increasingly important competitive advantage." Financial Discussion Except for generally accepted accounting principles (GAAP) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, stock-based compensation and other items shown separately on the attached tables. "Unit costs" as used in this release are composed of direct operating, transportation, gathering, processing and compression, production and ad valorem taxes, general and administrative, interest and depletion, depreciation and amortization costs divided by production. See "Non-GAAP Financial Measures" for a definition of each of the non-GAAP financial measures and the tables that reconcile each of the non-GAAP measures to their most directly comparable GAAP financial measure. Third Quarter 2021 GAAP revenues for third quarter 2021 totaled $303 million, GAAP net cash provided from operating activities (including changes in working capital) was $192 million, and GAAP net earnings was a loss of $350 million ($1.44 per diluted share). Third quarter earnings results include a $652 million derivative fair value loss due to increases in commodity prices. Non-GAAP revenues for third quarter 2021 totaled $795 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $276 million. Adjusted net income comparable to analysts' estimates, a non-GAAP measure, was $130 million ($0.52 per diluted share) in third quarter 2021. The following table details Range's average production and realized pricing for third quarter 2021(a): Third quarter 2021 natural gas, natural gas liquids (NGL) and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $3.51 per mcfe. The average natural gas price, including the impact of basis hedging, was $3.66 per mcf, or a ($0.35) per mcf differential to NYMEX. The Company updated its average 2021 natural gas differential guidance to approximately $0.28 per mcf below NYMEX, a $0.07 per mcf annual improvement compared to the prior guidance midpoint.Pre-hedge NGL realizations were $34.05 per barrel, an improvement of $6.14 per barrel versus the second quarter of 2021 and a $0.83 premium to the Mont Belvieu equivalent barrel. The Company updated its average 2021 premium differential estimate to the Mont Belvieu equivalent barrel to within a range of $1.00 to $2.00 per barrel for 2021, a $0.25 per barrel improvement at the midpoint of guidance.Crude oil and condensate price realizations, before realized hedges, averaged $63.52 per barrel, or $6.90 below WTI (West Texas Intermediate). Range's estimated condensate differential to WTI during 2021 remains within an expected range of $7 to $9 below NYMEX. The following table details Range's unit costs per mcfe(a): Capital Expenditures Third quarter 2021 drilling and completion expenditures were $91.8 million. In addition, during the quarter, $4.6 million was invested on acreage leasehold, gathering systems and other corporate items. Total capital expenditures year-to-date were $322 million at the end of the third quarter. As a result of continued efficiency gains realized year-to-date, Range expects annual capital spending of $415 million in 2021, or $10 million under the original budget. Financial Position As of September 30, 2021, Range had total debt outstanding of $2.98 billion, consisting of $30 million in bank debt and $2.95 billion in senior notes. The Company has approximately $750 million in senior notes that mature through 2023, which are expected to be retired with projected free cash flow at current strip pricing. Range had over $2.0 billion of borrowing capacity under the bank credit facility commitment amount at the end of the third quarter. Production and Operational Activity Production for the third quarter was 2.14 Bcfe per day, representing a 1.5% increase over second quarter 2021. Range expects a similar production increase in the fourth quarter and to exit the year near 2.2 Bcfe per day. Average daily production for calendar 2021 is expected to be 2.12 to 2.13 Bcfe per day, approximately 1% below the previous guidance. Adjustments to 2021 production guidance are a result of temporary gathering and transportation outages and delays alongside weather-related force majeure events. Range remains committed to the originally planned activity cadence and disciplined capital spending and expects to be under budget for the fourth consecutive year. The table below summarizes estimated activity for 2021 regarding the number of wells to sales for each area. Marketing and Transportation The natural gas pricing benchmark, Henry Hub, averaged $4.01 per Mmbtu during the quarter, the highest since 2014. The East, Midwest, and Gulf markets, where Range sells its natural gas production, have experienced meaningful improvements compared to 2020 in terms of both basis and absolute pricing due to strong summer demand and storage deficits relative to historical averages across each region. Range reported a third quarter natural gas differential of $0.35 per mcf below NYMEX, including basis hedging. As a result of year-to-date performance and improving regional basis into the upcoming winter months, the Company updated its average 2021 natural gas differential guidance to approximately $0.28 per mcf below NYMEX, a $0.07 per mcf annual improvement compared to the prior guidance midpoint. The updated guidance implies a fourth quarter natural gas differential estimate of approximately $0.24 per mcf below NYMEX, inclusive of basis hedging. Propane prices ended the third quarter at the highest level in over seven years, as the Mont Belvieu weighted price for Range's NGL barrel increased by approximately $7.50 per barrel, compared to the second quarter, to over $33 per barrel. Range's NGL exports continue to deliver significant value versus domestic northeast prices, as the Company's NGL portfolio of contracts drove an $0.83 per barrel premium to the Mont Belvieu equivalent for the quarter. The flexibility of Range's transportation and sales portfolio places the Company in a strong position to serve increased domestic and international demand. As a result of year-to-date performance and strong domestic and international prices, Range has improved its estimated 2021 premium differential to the Mont Belvieu equivalent barrel to within a range of $1.00 to $2.00 per barrel, a $0.25 per barrel improvement at the midpoint of guidance. Range's forecasted 2021 pre-hedge NGL realization has increased by approximately $4 per barrel since July, resulting in an increase of over $140 million in forecasted revenue. As a result of higher NGL prices and the effect of Range's price-linked processing contracts, Range is increasing guidance for 2021 GP&T expense to $1.48 to $1.52 per mcfe. Net of projected processing costs, Range's forecasted pre-hedge cash flow from NGL sales in 2021 has increased by over $100 million since July. As previously disclosed, Range expects GP&T expense to decline annually in 2022 and beyond based on existing gathering contracts. The reduction in annual gathering expenses relative to 2021 totals approximately $70 million by 2025 and greater than $100 million by 2030. Guidance – 2021 Capital & Production Guidance Range's updated 2021 all-in capital budget is $415 million. Production for full-year 2021 is expected to average approximately 2.12 to 2.13 Bcfe per day, with ~30% attributed to liquids production. Full Year 2021 Expense Guidance Full Year 2021 Price Guidance Based on current market indications, Range expects to average the following price differentials for its production in 2021. Hedging Status and Divestiture Contingent Payments Range hedges portions of its expected future production volumes to increase the predictability of cash flow and to help maintain a strong, flexible financial position. As of October 20, 2021, Range had approximately 65% of its fourth quarter 2021 net revenue hedged and less than 50% of its expected calendar 2022 net revenue hedged. Since Range's July update, the average floor and ceiling prices on incremental 2022 natural gas hedges were $3.76 and $4.19, respectively. For additional information, please see the detailed hedging schedule posted on the Range website under Investor Relations - Financial Information. Range also hedges basis for natural gas and NGL volumes to limit volatility between published pricing benchmarks and regional sales prices. The combined fair value of the natural gas basis, NGL freight and spread hedges as of September 30, 2021 was a net gain of $9 million. Range is entitled to receive contingent consideration from last year's sale of North Louisiana assets. The remaining contingent consideration of up to $75.0 million is based on future achievement of natural gas and oil prices based on published indexes and realized NGLs prices of the buyer for the years 2021, 2022 and 2023. At the end of third quarter, the fair value of the potential payments was $50.2 million, an increase of $12.9 million compared to last quarter. Conference Call Information A conference call to review the financial results is scheduled on Wednesday, October 27 at 9:00 a.m. ET. To participate in the call, please dial (877) 928-8777 and provide conference code 4709989 about 10 minutes prior to the scheduled start time. A simultaneous webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company's website until November 26. Non-GAAP Financial Measures Adjusted net income comparable to analysts' estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes. We believe adjusted net income comparable to analysts' estimates is calculated on the same basis as analysts' estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts' estimates on a diluted per share basis. A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts' estimates and diluted earnings per share (adjusted). The Company provides additional comparative information on prior periods along with non-GAAP revenue disclosures on its website. Cash flow from operations before changes in working capital (sometimes referred to as "adjusted cash flow") as defined in this release represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital is widely accepted by the investment community as a financial indicator of an oil and gas company's ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release. The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company's performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each line in the statement of operations to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense which were historically reported as natural gas, NGLs and oil sales. This information is intended to bridge the gap between various readers' understanding and fully disclose the information needed. The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Company's quarterly report on Form 10-Q. The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results. RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused on stacked-pay projects in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com. Included within this release are certain "forward-looking statements" within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Range's current beliefs, expectations or intentions regarding future events. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "outlook", "estimate," "predict," "potential," "pursue," "target," "continue," and similar expressions are intended to identify such forward-looking statements. All statements, except for statements of historical fact, made herein regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, improving commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and Range's future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range's filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made. The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as "resource potential," "unrisked resource potential," "unproved resource potential" or "upside" or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC's guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC's rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range's internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer's Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range's management. "EUR", or estimated ultimate recovery, refers to our management's estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer's Petroleum Resource Management System or the SEC's oil and natural gas disclosure rules. Actual quantities that may be recovered from Range's interests could differ substantially. Factors affecting ultimate recovery include the scope of Range's drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data. In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or drilling cost increases. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SEC's website at www.sec.gov or by calling the SEC at 1-800-SEC-0330. Range Investor Contacts: Laith Sando, Vice President – Investor Relations817-869-4267lsando@rangeresources.com Range Media Contacts: Mark Windle, Director of Corporate Communications724-873-3223 mwindle@rangeresources.com RANGE RESOURCES CORPORATION RANGE RESOURCES CORPORATION RANGE RESOURCES CORPORATION RANGE RESOURCES CORPORATION RANGE RESOURCES CORPORATION RANGE RESOURCES CORPORATION RANGE RESOURCES CORPORATION

Tags:
News
Items per page:
20
1 – 20 of 5566