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Oil States Announces First Quarter 2025 Results
Oil States Announces First Quarter 2025 Results Net income of $3 million, or $0.05 per share, reported for the quarter, which included facility exit charges totaling $0.9 million ($0.7 million after tax, or $0.01 per share)Adjusted net income of $4 million, or $0.06 per share, excluding facility exit charges (a non-GAAP measure(1))Consolidated revenues of $160 million decreased 3% sequentially, driven primarily by timing of the conversion of project-driven orders from backlog within the Offshore Manufactured Products segmentAdjusted EBITDA (a non-GAAP measure(1)) of $19 millionGenerated cash flows from operations of $9 millionPurchased $5 million of our common stock during the quarterOffshore Manufactured Products segment's backlog increased $45 million sequentially totaling $357 million as of March 31, with a quarterly book-to-bill ratio of 1.5xFirst quarter segment bookings were augmented by a contract award exceeding $25 million for a deepwater production facility project in BrazilReceived a 2025 Spotlight on New Technology® award from the Offshore Technology Conference for our TowerLok™ Wind Tower Connector Technology HOUSTON, May 01 /BusinessWire/ -- Oil States International, Inc. (NYSE:OIS): Oil States International, Inc. reported net income of $3.2 million, or $0.05 per share, and Adjusted EBITDA of $18.7 million for the first quarter of 2025 on revenues of $159.9 million. Reported first quarter 2025 net income included charges of $0.9 million ($0.7 million after-tax or $0.01 per share) associated with the exit of U.S. land-based facilities closed in 2024. These results compare to revenues of $164.6 million, net income of $15.2 million, or $0.24 per share, and Adjusted EBITDA of $18.7 million reported in the fourth quarter of 2024, which included a gain of $15.3 million ($12.1 million after-tax or $0.20 per share) associated with the sale of a previously idled facility and charges of $3.1 million ($2.5 million after-tax or $0.04 per share) associated primarily with the restructuring of certain U.S. land-based operations and facility closures. Oil States' President and Chief Executive Officer, Cindy B. Taylor, stated: "Our first quarter consolidated results were supported by ongoing international and offshore activity through the addition of backlog along with benefits of our 2024 U.S. land-based optimization efforts and a strong recovery in our Gulf of America operations. We have historically reported negative cash flows from operations during the first quarter of the year due to seasonal working capital trends. However, we reversed that trend this quarter by generating $9 million of cash flow from operations. "Our Offshore Manufactured Products segment revenues totaled $93 million in what is traditionally a seasonally slower first quarter, while Adjusted Segment EBITDA totaled $18 million. Bookings increased 20% sequentially, yielding a quarterly book-to-bill ratio of 1.5x. Our backlog is at its highest level since September 2015. "Operational performance within our Completion and Production Services and Downhole Technologies segments improved sequentially - driven by higher U.S. customer demand, both on land and offshore, along with benefits realized from our optimization actions taken in 2024. Collectively, the revenues and Adjusted Segment EBITDA of these two segments rose 17% and 191%, respectively, from the prior quarter. "Our investments in technology and innovation were recognized for a fifth consecutive year by the Offshore Technology Conference, with the announcement that we received a 2025 Spotlight on New Technology® Award for our TowerLok™ Wind Tower Connector. "In April the spot price of WTI crude oil declined approximately 20% in response to the imposition of broad-based trade tariffs by the United States on imported goods, the introduction of retaliatory tariff increases by other countries and the announcement by OPEC+ of plans to increase crude oil production. While some trade tariffs have been temporarily paused, uncertainties remain regarding the broad future effect of actual and potential trade tariff disputes on the global economy as well as the future demand for and supply of crude oil. We are closely monitoring and adjusting our material sourcing strategies and customer pricing decisions during this volatile trade environment to minimize our costs while ensuring a stable supply of materials to support our customers' requirements. "We remain focused on managing our cost structure, working capital, cash flow generation and debt levels while returning capital to our stockholders." Business Segment Results (See Segment Data and Adjusted Segment EBITDA tables below) Offshore Manufactured Products Offshore Manufactured Products reported revenues of $92.6 million, operating income of $14.3 million and Adjusted Segment EBITDA of $17.9 million in the first quarter of 2025, compared to revenues of $107.3 million, operating income of $21.0 million and Adjusted Segment EBITDA of $24.7 million reported in the fourth quarter of 2024. Adjusted Segment EBITDA margin was 19% in the first quarter of 2025, compared to 23% in the fourth quarter of 2024. Backlog totaled $357 million as of March 31, 2025, its highest level since September 2015. First quarter bookings increased 20%, totaling $136 million, compared to bookings of $113 million in the fourth quarter - yielding a quarterly book-to-bill ratio of 1.5x. Completion and Production Services Completion and Production Services reported revenues of $34.5 million, operating income of $3.5 million and Adjusted Segment EBITDA of $8.8 million in the first quarter of 2025, compared to revenues of $30.1 million, an operating loss of $4.0 million and Adjusted Segment EBITDA of $3.5 million reported in the fourth quarter of 2024. Adjusted Segment EBITDA margin was 25% in the first quarter of 2025, compared to 12% in the fourth quarter of 2024. During the 2024, the segment implemented restructuring actions in its U.S. land-based businesses to reduce costs and improve future operating margins, which included the exit of two underperforming service offerings and the closure of multiple facilities leading to reductions in its U.S. workforce. As a result of these and other strategic actions previously taken, the segment's operating loss for the fourth quarter of 2024 included $1.2 million of operating lease asset impairment charges and $1.9 million of costs associated with the exit of underperforming service locations. During the first quarter of 2025, the segment incurred charges of $0.9 million associated with the 2025 exit of facilities closed in 2024 and, to a lesser extent, additional headcount reductions. Downhole Technologies Downhole Technologies reported revenues of $32.8 million, an operating loss of $2.1 million and Adjusted Segment EBITDA of $1.9 million in the first quarter of 2025, compared to revenues of $27.3 million, an operating loss of $4.0 million and Adjusted Segment EBITDA of $0.1 million in the fourth quarter of 2024. Corporate Corporate operating expenses in the first quarter of 2025 totaled $10.0 million. During the fourth quarter of 2024, the Company sold a previously idled facility (held-for-sale), resulting in the recognition of a gain of $15.3 million, which was included in operating income (loss) but excluded from Adjusted EBITDA. Interest Expense, Net Net interest expense totaled $1.6 million in the first quarter of 2025, which included $0.3 million of non-cash amortization of deferred debt issuance costs. Income Taxes During the first quarter of 2025, the Company recognized tax expense of $1.0 million on pre-tax income of $4.2 million, which included certain non-deductible expenses. The Company recognized income tax expense of $1.8 million on pre-tax income of $17.0 million, which included unfavorable changes in valuation allowances recorded against deferred tax assets and certain non-deductible expenses in the fourth quarter of 2024. Cash Flows During the first quarter of 2025, cash flows provided by operations and free cash flows (a non-GAAP measure - see Note (E) totaled $9.3 million each. Net debt (total debt less cash and cash equivalents) decreased by $1.4 million during the first quarter, after repurchasing $5.3 million of common stock. Financial Condition Cash on-hand totaled $66.8 million at March 31, 2025. No borrowings were outstanding under the Company's asset-based revolving credit facility at March 31, 2025. Other Highlights - Industry Award, Technology Deployments and Other Developments Demonstrating Oil States' constant commitment to advance the production of affordable and reliable energy, for a fifth consecutive year, the Company was honored by the Offshore Technology Conference in March 2025 as a recipient of the Spotlight on New Technology® Award for its TowerLok™ Wind Tower Connector. This enabling technology offers offshore and land wind turbine tower developers a unique solution to reduce risks associated with tower fatigue failures associated with studs and nuts loosening over time and other cycling stresses. This proprietary technology provides operators with flexibility and the opportunity to lower installation time and safety incidents through preassembly at the factory, quayside, or on a support vessel as well as hands-free landing for quick locking. Customer acceptance of the Company's field-proven Managed Pressure Drilling Integrated Riser Joint ("MPD IRJ") continues to expand, with the award of another contract for its slim-line, rental MPD IRJ in the first quarter. Additionally, Oil States continues its collaboration with Seadrill to integrate its MPD IRJ technology with Seadrill's deepwater drilling vessels. The Company's MPD IRJ (recipient of a 2022 Spotlight on New Technology® Award) enhances the safe handling of gas influx and significantly reduces nonproductive time in deepwater MPD operations, while its compact design allows for safer, easier handling, and greater functionality, enabling on-deck function and pressure testing. Oil States received a contract award exceeding $25 million for a deepwater production facility project in Brazil in the first quarter of 2025. Additionally, the Company continued to grow its local operations in Brazil, with the receipt of numerous, multi-year project awards totaling $26 million in the period. The Company completed the manufacture of its third Merlin™ Mineral Riser system, designed for a water depth of 6,000 meters. Oil States continued to invest in the expansion of its manufacturing capabilities and capacity in Batam, Indonesia during the quarter to meet growing international customer demand. Conference Call Information The call is scheduled for May 1, 2025 at 9:00 a.m. Central Daylight Time, is being webcast and can be accessed from the Company's website at www.ir.oilstatesintl.com. Participants may also join the conference call by dialing 1 (888) 210-3346 in the United States or by dialing +1 (646) 960-0253 internationally and using the passcode 7534957. A replay of the conference call will be available approximately two hours after the completion of the call and can be accessed from the Company's website at www.ir.oilstatesintl.com. About Oil States Oil States International, Inc. is a global provider of manufactured products and services to customers in the energy, industrial and military sectors. The Company's manufactured products include highly engineered capital equipment and consumable products. Oil States is headquartered in Houston, Texas with manufacturing and service facilities strategically located across the globe. Oil States is publicly traded on the New York Stock Exchange under the symbol "OIS". For more information on the Company, please visit Oil States International's website at www.oilstatesintl.com. Cautionary Language Concerning Forward Looking Statements The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among others, the impact of changes in tariffs and duties on imported materials and exported finished goods, the level of supply and demand for oil and natural gas, fluctuations in the current and future prices of oil and natural gas, the level of exploration, drilling and completion activity, general global economic conditions, the cyclical nature of the oil and natural gas industry, geopolitical conflicts and tensions, the financial health of our customers, the actions of the Organization of Petroleum Exporting Countries and other producing nations ("OPEC+") with respect to crude oil production levels and pricing, supply chain disruptions, the impact of environmental matters, including executive actions and regulatory efforts to adopt environmental or climate change regulations that may result in increased operating costs or reduced oil and natural gas production or demand globally, consolidation of our customers, our ability to access and the cost of capital in the bank and capital markets, our ability to develop new competitive technologies and products, and other factors discussed in the "Business" and "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof, and, except as required by law, the Company undertakes no obligation to update those statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments. View source version on businesswire.com: https://www.businesswire.com/news/home/20250501348269/en/ back
Targa Resources Corp. Reports Record First Quarter 2025 Financial Results
Targa Resources Corp. Reports Record First Quarter 2025 Financial Results HOUSTON, May 01, 2025 (GLOBE NEWSWIRE) -- Targa Resources Corp. (NYSE: TRGP) ("TRGP," the "Company" or "Targa") today reported first quarter 2025 results. First quarter 2025 net income attributable to Targa Resources Corp. was $270.5 million compared to $275.2 million for the first quarter of 2024. The Company reported adjusted earnings before interest, income taxes, depreciation and amortization, and other non-cash items ("adjusted EBITDA")(1) of $1,178.5 million for the first quarter of 2025 compared to $966.2 million for the first quarter of 2024. Highlights Record first quarter 2025 adjusted EBITDA of $1.2 billion, a 22% increase year over yearRepurchased $214 million of common shares through April 2025Declared an annual common dividend of $4.00 per share for 2025, a 33% increase year over yearContinue to estimate full year 2025 adjusted EBITDA between $4.65 billion and $4.85 billionContinue to estimate 2025 net growth capital expenditures of $2.6 billion to $2.8 billion On April 10, 2025, the Company declared an increase to its quarterly cash dividend to $1.00 per common share, or $4.00 per common share on an annualized basis, for the first quarter of 2025. This dividend represents a 33 percent increase over the common dividend declared with respect to the first quarter of 2024. Total cash dividends of approximately $217 million will be paid on May 15, 2025 on all outstanding shares of common stock to holders of record as of the close of business on April 30, 2025. During the first quarter of 2025, Targa repurchased 651,163 shares of its common stock at a weighted average per share price of $191.86 for a total net cost of $124.9 million. As of March 31, 2025, there was $890.5 million remaining under the Company's share repurchase program. Subsequent to quarter end, Targa repurchased 532,210 shares of its common stock at a weighted average per share price of $167.28 for a total net cost of $89.0 million. First Quarter 2025 - Sequential Quarter over Quarter Commentary Targa reported first quarter adjusted EBITDA of $1,178.5 million, representing a 5 percent increase compared to the fourth quarter of 2024. The sequential increase in adjusted EBITDA was attributable to contribution from the Badlands transaction and higher marketing margin. Volumes across Targa's Gathering and Processing ("G&P") and Logistics and Transportation ("L&T") systems were negatively impacted by winter weather events which reduced system volumes during the first quarter. In the G&P segment, sequential adjusted operating margin was approximately flat as modestly lower Permian natural gas inlet volumes due to winter weather events were partially offset by higher fees. In the L&T segment, adjusted operating margin was also sequentially flat as higher marketing margin offset lower NGL pipeline transportation volumes, which were negatively impacted by winter weather events. Fractionation volumes were lower in the first quarter due to a major planned turnaround at Targa's Cedar Bayou Fractionation facilities in Mont Belvieu, TX. Higher sequential marketing margin was attributable to increased optimization opportunities. Subsequent to quarter end, Targa's Permian volumes and associated L&T system volumes have meaningfully increased from first quarter levels. Capitalization, Financing and Liquidity The Company's total consolidated debt as of March 31, 2025 was $16,208.7 million, net of $106.7 million of debt issuance costs and $35.2 million of unamortized discount, with $14,534.4 million of outstanding senior unsecured notes, $920.0 million outstanding under the Commercial Paper Program, $600.0 million outstanding under the Securitization Facility, and $296.2 million of finance lease liabilities. In February 2025, Targa completed an underwritten public offering of 5.550% Notes due 2035 and 6.125% Notes due 2055, resulting in net proceeds of approximately $2.0 billion. Targa used the net proceeds from the issuance to fund the repurchase of all of the outstanding preferred equity in Targa Badlands LLC (the "Badlands Transaction") and for general corporate purposes, including to repay borrowings under the Commercial Paper Program. Total consolidated liquidity as of March 31, 2025 was approximately $2.7 billion, including $2.6 billion available under the TRGP Revolver, and $151.4 million of cash. Growth Projects Update In Targa's G&P segment, construction continues on its 275 MMcf/d Pembrook II, East Pembrook, and East Driver plants in Permian Midland and its 275 MMcf/d Bull Moose II and Falcon II plants in Permian Delaware. In Targa's L&T segment, construction continues on its Delaware Express pipeline expansion, its 150 MBbl/d Train 11 and Train 12 fractionators in Mont Belvieu, and its GPMT LPG Export Expansion. The Company now expects its Pembrook II plant to begin operations in the third quarter of 2025 and remains on-track to complete its other announced expansions as previously disclosed. 2025 Outlook Targa continues to estimate full year 2025 adjusted EBITDA to be between $4.65 billion and $4.85 billion supported by forecasted growth across its Permian G&P footprint, which is expected to drive record Permian, NGL pipeline transportation, fractionation, and LPG export volumes in 2025 relative to records set in 2024. While the growth is weighted to the second half of 2025, current and expected producer activity levels continue to support an outlook of meaningfully increasing volumes across the rest of 2025 and 2026. Targa's estimate for 2025 net growth capital expenditures remains unchanged in a range of $2.6 billion to $2.8 billion, and its estimate for 2025 net maintenance capital expenditures also remains unchanged at approximately $250 million. Conference Call The Company will host a conference call for the investment community at 11:00 a.m. Eastern time (10:00 a.m. Central time) on May 1, 2025 to discuss its first quarter results. The conference call can be accessed via webcast under Events and Presentations in the Investors section of the Company's website at www.targaresources.com/investors/events, or by going directly to https://edge.media-server.com/mmc/p/waa5bt3q. A webcast replay will be available at the link above approximately two hours after the conclusion of the event. An earnings supplement presentation and updated investor presentation are available under Events and Presentations in the Investors section of the Company's website at www.targaresources.com/investors/events. (1) Adjusted EBITDA and adjusted operating margin (segment) are non-GAAP financial measures and are discussed under "Non-GAAP Financial Measures." Targa Resources Corp. Consolidated Financial Results of Operations (1) Adjusted EBITDA, adjusted cash flow from operations and adjusted free cash flow are non-GAAP financial measures and are discussed under "Non-GAAP Financial Measures."NM Due to a low denominator, the noted percentage change is disproportionately high and as a result, considered not meaningful. Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024 Commodity sales are relatively flat reflecting lower NGL, natural gas and condensate volumes ($217.9 million), the unfavorable impact of hedges ($256.1 million) and lower condensate prices ($15.2 million), offset by higher natural gas and NGL prices ($431.2 million). The increase in fees from midstream services is primarily due to higher gas gathering and processing fees, and higher export volumes, partially offset by lower transportation and fractionation fees. Product purchases and fuel are relatively flat reflecting higher natural gas and NGL prices, offset by lower NGL and natural gas volumes. The increase in operating expenses is primarily due to higher labor, taxes and maintenance costs, partially offset by lower rental costs. See "Review of Segment Performance" for additional information on a segment basis. The increase in depreciation and amortization expense is primarily due to the impact of system expansions on the Company's asset base. The decrease in interest expense, net is due to recognition of cumulative interest on a legal ruling associated with the Splitter Agreement in 2024, partially offset by higher borrowings in 2025. The decrease in income tax expense is primarily due to a decrease in pre-tax book income. The decrease in net income attributable to noncontrolling interests is primarily due to the Badlands Transaction in 2025 and the acquisition of the remaining membership interest in Cedar Bayou Fractionators, L.P. in 2024. The premium on repurchase of noncontrolling interests, net of tax is due to the Badlands Transaction in 2025. Review of Segment Performance The following discussion of segment performance includes inter-segment activities. The Company views segment operating margin and adjusted operating margin as important performance measures of the core profitability of its operations. These measures are key components of internal financial reporting and are reviewed for consistency and trend analysis. For a discussion of adjusted operating margin, see "Non-GAAP Financial Measures â Adjusted Operating Margin." Segment operating financial results and operating statistics include the effects of intersegment transactions. These intersegment transactions have been eliminated from the consolidated presentation. The Company operates in two primary segments: (i) Gathering and Processing; and (ii) Logistics and Transportation. Gathering and Processing Segment The Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment's assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast. The following table provides summary data regarding results of operations of this segment for the periods indicated: (1) Segment operating statistics include the effect of intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.(2) Plant natural gas inlet represents the Company's undivided interest in the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant, other than Badlands during 2024.(3) Plant natural gas inlet volumes and gross NGL production volumes include producer take-in-kind volumes, while natural gas sales and NGL sales exclude producer take-in-kind volumes.(4) Permian Midland includes operations in WestTX, of which the Company owns a 72.8% undivided interest, and other plants that are owned 100% by the Company. Operating results for the WestTX undivided interest assets are presented on a pro-rata net basis in the Company's reported financials.(5) Operations include facilities that are not wholly owned by the Company.(6) Badlands natural gas inlet represents the total wellhead volume and includes the Targa volumes processed at the Little Missouri 4 plant.(7) Average realized prices, net of fees, include the effect of realized commodity hedge gain/loss attributable to the Company's equity volumes. The price is calculated using total commodity sales plus the hedge gain/loss as the numerator and total sales volume as the denominator, net of fees. The following table presents the realized commodity hedge gain (loss) attributable to the Company's equity volumes that are included in the adjusted operating margin of the Gathering and Processing segment: (1) The price spread is the differential between the contracted derivative instrument pricing and the price of the corresponding settled commodity transaction. Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024 The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes in the Permian. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Roadrunner II plant during the second quarter of 2024, the Greenwood II plant during the fourth quarter of 2024, the Bull Moose plant during the first quarter of 2025, and continued strong producer activity despite severe winter weather events which impacted volumes during the first quarter of 2025. The increase in operating expenses was primarily due to higher volumes and multiple plant additions in the Permian. Logistics and Transportation Segment The Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling, and marketing of NGLs and NGL products, including services to LPG exporters and certain natural gas supply and marketing activities in support of the Company's other businesses. The Logistics and Transportation segment also includes Grand Prix NGL Pipeline, which connects the Company's gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with the Company's Downstream facilities in Mont Belvieu, Texas. The Company's Downstream facilities are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana. The following table provides summary data regarding results of operations of this segment for the periods indicated: (1) Segment operating statistics include intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024 The increase in adjusted operating margin was due to higher pipeline transportation and fractionation margin and higher marketing margin. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from the Company's Permian Gathering and Processing systems, the addition of Train 9 during the second quarter of 2024, the in-service of the Daytona NGL Pipeline during the third quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024. Marketing margin increased due to greater optimization opportunities. The increase in operating expenses was predominantly due to system expansions. Other Other contains the results of commodity derivative activity mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. The Company has entered into derivative instruments to hedge the commodity price associated with a portion of the Company's future commodity purchases and sales and natural gas transportation basis risk within the Company's Logistics and Transportation segment. About Targa Resources Corp. Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company's assets connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuels and feedstocks. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including services to LPG exporters; and gathering, storing, terminaling, and purchasing and selling crude oil. Targa is a FORTUNE 500 company and is included in the S&P 500. For more information, please visit the Company's website at www.targaresources.com. Non-GAAP Financial Measures This press release includes the Company's non-GAAP financial measures: adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment). The following tables provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The Company utilizes non-GAAP measures to analyze the Company's performance. Adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment) are non-GAAP measures. The GAAP measures most directly comparable to these non-GAAP measures are income (loss) from operations, Net income (loss) attributable to Targa Resources Corp. and segment operating margin. These non-GAAP measures should not be considered as an alternative to GAAP measures and have important limitations as analytical tools. Investors should not consider these measures in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Additionally, because the Company's non-GAAP measures exclude some, but not all, items that affect income and segment operating margin, and are defined differently by different companies within the Company's industry, the Company's definitions may not be comparable with similarly titled measures of other companies, thereby diminishing their utility. Management compensates for the limitations of the Company's non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating these insights into the Company's decision-making processes. Adjusted Operating Margin The Company defines adjusted operating margin for the Company's segments as revenues less product purchases and fuel. It is impacted by volumes and commodity prices as well as by the Company's contract mix and commodity hedging program. Gathering and Processing adjusted operating margin consists primarily of: service fees related to natural gas and crude oil gathering, treating and processing; andrevenues from the sale of natural gas, condensate, crude oil and NGLs less producer settlements, fuel and transport and the Company's equity volume hedge settlements. Logistics and Transportation adjusted operating margin consists primarily of: service fees (including the pass-through of energy costs included in certain fee rates);system product gains and losses; andNGL and natural gas sales, less NGL and natural gas purchases, fuel, third-party transportation costs and the net inventory change. The adjusted operating margin impacts of mark-to-market hedge unrealized changes in fair value are reported in Other. Adjusted operating margin for the Company's segments provides useful information to investors because it is used as a supplemental financial measure by management and by external users of the Company's financial statements, including investors and commercial banks, to assess: the financial performance of the Company's assets without regard to financing methods, capital structure or historical cost basis;the Company's operating performance and return on capital as compared to other companies in the midstream energy sector, without regard to financing or capital structure; andthe viability of capital expenditure projects and acquisitions and the overall rates of return on alternative investment opportunities. Management reviews adjusted operating margin and operating margin for the Company's segments monthly as a core internal management process. The Company believes that investors benefit from having access to the same financial measures that management uses in evaluating the Company's operating results. The reconciliation of the Company's adjusted operating margin to the most directly comparable GAAP measure is presented under "Review of Segment Performance." Adjusted EBITDA The Company defines adjusted EBITDA as Net income (loss) attributable to Targa Resources Corp. before interest, income taxes, depreciation and amortization, and other items that the Company believes should be adjusted consistent with the Company's core operating performance. The adjusting items are detailed in the adjusted EBITDA reconciliation table and its footnotes. Adjusted EBITDA is used as a supplemental financial measure by the Company and by external users of the Company's financial statements such as investors, commercial banks and others to measure the ability of the Company's assets to generate cash sufficient to pay interest costs, support the Company's indebtedness and pay dividends to the Company's investors. Adjusted Cash Flow from Operations and Adjusted Free Cash Flow The Company defines adjusted cash flow from operations as adjusted EBITDA less cash interest expense on debt obligations and cash tax (expense) benefit. The Company defines adjusted free cash flow as adjusted cash flow from operations less maintenance capital expenditures (net of any reimbursements of project costs) and growth capital expenditures, net of contributions from noncontrolling interests and including contributions to investments in unconsolidated affiliates. Adjusted cash flow from operations and adjusted free cash flow are performance measures used by the Company and by external users of the Company's financial statements, such as investors, commercial banks and research analysts, to assess the Company's ability to generate cash earnings (after servicing the Company's debt and funding capital expenditures) to be used for corporate purposes, such as payment of dividends, retirement of debt or redemption of other financing arrangements. The following table reconciles the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the periods indicated: (1) Represents adjustments related to the Company's subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa's WestTX joint venture not subject to noncontrolling interest accounting.(2) Excludes amortization of interest expense. The three months ended March 31, 2024 includes $54.9 million of interest expense on a 2024 legal ruling associated with an agreement, dated December 27, 2015, for crude oil and condensate between Targa Channelview LLC, then a subsidiary of the Company, and Noble Americas Corp. (3) Represents capital expenditures, net of contributions from noncontrolling interests and includes contributions to investments in unconsolidated affiliates. The following table presents a reconciliation of estimated net income of the Company to estimated adjusted EBITDA for 2025: Regulation FD Disclosures The Company uses any of the following to comply with its disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. The Company routinely posts important information on its website at www.targaresources.com, including information that may be deemed to be material. The Company encourages investors and others interested in the company to monitor these distribution channels for material disclosures. Forward-Looking Statements Certain statements in this release 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. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding our projected financial performance, capital spending and payment of future dividends. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company's control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, actions taken by other countries with significant hydrocarbon production, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of our completion of capital projects and business development efforts, the expected growth of volumes on our systems, the impact of significant public health crises, commodity price volatility due to ongoing or new global conflicts, the impact of disruptions in the bank and capital markets, including those resulting from lack of access to liquidity for banking and financial services firms, changes in laws and regulations, particularly with regard to taxes, tariffs and international trade, and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Targa Investor RelationsInvestorRelations@targaresources.com(713) 584-1133
Notice of Results
Notice of Results Diversified Energy Company PLC ("Diversified" or the "Company") Notice of First Quarter 2025 Results Timing Diversified Energy Company PLC (LSE: DEC, NYSE: DEC) ("Diversified" or the "Company") is pleased to announce that the Company plans to publish its Trading Statement for the three months ended March 31, 2025 (the "1Q25 Trading Statement") on Monday, May 12th, 2025. The Company will host a conference call that day at 1:00 PM GMT (8:00 AM EST) to discuss the 1Q25 Trading Statement and make an audio replay of the event available shortly thereafter. Conference Details Prior to the event, Diversified will publish the Company's 1Q25 Trading Statement on its website at https://ir.div.energy/news-events/regulatory-news and make a supplementary presentation available at https://ir.div.energy/presentations. For further information, please contact: About Diversified Energy Company PLC Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our unique differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value.
Cactus Announces First Quarter 2025 Results
Cactus Announces First Quarter 2025 Results HOUSTON, Apr. 30 /BusinessWire/ -- Cactus, Inc. (NYSE:WHD) ("Cactus" or the "Company") today announced financial and operating results for the first quarter of 2025. First Quarter Highlights Revenue of $280.3 million and operating income of $68.6 million; Net income of $54.1 million and diluted earnings per Class A share of $0.64; Adjusted net income(1) of $58.8 million and diluted earnings per share, as adjusted(1) of $0.73; Net income margin of 19.3% and adjusted net income margin(1) of 21.0%; Adjusted EBITDA(2) and Adjusted EBITDA margin(2) of $93.8 million and 33.5%, respectively; Cash and cash equivalents of $347.7 million, with no bank debt outstanding as of March 31, 2025; and In April 2025, the Board of Directors declared a quarterly cash dividend of $0.13 per Class A share. Financial Summary Scott Bender, CEO and Chairman of the Board of Cactus, commented, "First quarter 2025 revenues in both segments exceeded our expectations. Strength in Spoolable Technologies was driven by non-U.S. product sales, which increased sequentially, while the outperformance in Pressure Control was driven by record levels of product sold per rig followed. Margins in both segments remained resilient. Cash flow conversion was lower than our usual cadence in the first quarter as working capital increased on particularly strong revenue performance in March in both segments. Additionally, as mentioned last quarter, we made a deferred cash tax payment in January and incurred elevated capex and investments largely due to a Vietnam supply chain investment." "In the second quarter of 2025, we anticipate that the U.S. land rig count will decline from today's levels as customers reset their operating budgets given lower commodity pricing and an increasingly uncertain global economic outlook. We anticipate exiting Q2 with the U.S. land rig count below today's levels, with potential for further activity reductions to continue as the year progresses. In Pressure Control, we expect revenues to be down modestly. In Spoolable Technologies, we expect a typical seasonal sales expansion in the second quarter, despite industry activity headwinds, as a result of record first quarter orders achieved during the period." Mr. Bender concluded, "Tariff policies and the associated uncertainty have led to a rapidly deteriorating global economic outlook, impacting our whole industry. We anticipate our results will face headwinds in the near-term as our input costs increase in both segments due to elevated tariff rates, though to a lesser degree in our Spoolable Technologies business. We are taking several actions to mitigate the current impacts of increased tariff rates, such as accelerating production from Vietnam, and we expect these actions to be largely complete within 12 months. We believe our strong balance sheet, diversifying supply chain, historically supportive customer base, and the capital-light nature of our business will enable us to successfully navigate this market, as we have proven in previous downcycles. As always, we intend to take appropriate and timely actions to protect margins, returns and cash flows." Segment Performance We report two business segments, Pressure Control and Spoolable Technologies. Corporate and other expenses not directly attributable to either segment are presented separately as Corporate and Other expenses. Pressure Control First quarter 2025 Pressure Control revenue increased $13.6 million, or 7.7%, sequentially, primarily due to increased sales of wellhead and production related equipment resulting from increased customer drilling efficiencies. Operating income increased $3.5 million, or 6.9%, sequentially, on the higher volume, with margins decreasing 20 basis points due to reserves taken in connection with litigation claims. Adjusted Segment EBITDA increased $3.3 million, or 5.3%, sequentially, with Adjusted Segment EBITDA margins decreasing 80 basis points. Spoolable Technologies First quarter 2025 Spoolable Technologies revenues decreased $3.5 million, or 3.6%, sequentially, due to reduced customer activity levels in the seasonally slow first quarter. Operating income decreased $1.6 million, or 6.5%, sequentially, on lower volume, while margins decreased 80 basis points on lower operating leverage. Adjusted Segment EBITDA decreased $1.8 million, or 5.0%, sequentially, with Adjusted Segment EBITDA margins decreasing 50 basis points. Corporate and Other Expenses First quarter 2025 Corporate and Other expenses increased $3.7 million, or 62.7%, sequentially, primarily due to professional fees associated with growth initiatives. Liquidity, Capital Expenditures and Other As of March 31, 2025, the Company had $347.7 million of cash and cash equivalents, no bank debt outstanding, and $222.6 million of availability on our revolving credit facility. Operating cash flow was $41.5 million for the first quarter of 2025. During the first quarter, the Company made dividend payments and associated distributions of $10.7 million. Net capital expenditures were $15.5 million during the first quarter of 2025, inclusive of a meaningful supply chain equity investment into a Vietnam manufacturing facility to enable more rapid expansion of our local manufacturing capacity. For the full year 2025, the Company now expects net capital expenditures to be in the range of $40 to $50 million, inclusive of capital directed towards supply chain diversification efforts and efficiency improvements in the Baytown manufacturing facility, a reduction of $5 million from prior guidance considering the revised market outlook. We are continuing to evaluate further reductions to our capital spending program for the year. As of March 31, 2025, Cactus had 68,390,114 shares of Class A common stock outstanding (representing 85.7% of the total voting power) and 11,432,545 shares of Class B common stock outstanding (representing 14.3% of the total voting power). Quarterly Dividend The Board of Directors has approved a quarterly cash dividend of $0.13 per share of Class A common stock with payment to occur on June 20, 2025 to holders of record of Class A common stock at the close of business on June 2, 2025. A corresponding distribution of up to $0.13 per CC Unit has also been approved for holders of CC Units of Cactus Companies, LLC. Conference Call Details The Company will host a conference call to discuss financial and operational results tomorrow, Thursday, May 1, 2025 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). The call will be webcast on Cactus' website at www.CactusWHD.com. Please access the webcast for the call at least 10 minutes ahead of the start time to ensure a proper connection. Analysts and institutional investors may click here to pre-register for the conference call. An archived webcast of the conference call will be available on the Company's website shortly after the end of the call. About Cactus, Inc. Cactus designs, manufactures, sells or rents a range of highly engineered pressure control and spoolable pipe technologies. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers' wells. In addition, it provides field services for its products and rental items to assist with the installation, maintenance and handling of the equipment. Cactus operates service centers throughout North America and Australia, while also providing equipment and services in select international markets. Cautionary Statement Concerning Forward-Looking Statements Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus' control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology including "may," "believe," "expect," "intend," "anticipate," "plan," "should," "estimate," "continue," "potential," "will," "hope," "opportunity," or other similar words and include the Company's expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other "forward-looking" information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company's Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. Cactus disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Cactus, Inc. - Supplemental Information Reconciliation of GAAP to non-GAAP Financial Measures Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin (unaudited) Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin are not measures of net income as determined by GAAP but they are supplemental non-GAAP financial measures that are used by management and external users of the Company's consolidated financial statements. Cactus defines adjusted net income as net income assuming Cactus, Inc. held all units in its operating subsidiary at the beginning of the period, with the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. Adjusted net income also includes certain other adjustments described below. Cactus defines diluted earnings per share, as adjusted as Adjusted net income divided by weighted average shares outstanding, as adjusted. Cactus defines Adjusted net income margin as Adjusted net income divided by total revenue. The Company believes this supplemental information is useful for evaluating performance period over period. Cactus, Inc. - Supplemental Information Reconciliation of GAAP to non-GAAP Financial Measures EBITDA, Adjusted EBITDA and Adjusted EBITDA margin (unaudited) EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are not measures of net income as determined by GAAP but are supplemental non-GAAP financial measures that are used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines EBITDA as net income excluding net interest, income tax and depreciation and amortization. Cactus defines Adjusted EBITDA as EBITDA excluding the other items outlined below. Cactus management believes EBITDA and Adjusted EBITDA are useful because they allow management to more effectively evaluate the Company's operating performance and compare the results of its operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company's computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue. Cactus presents this supplemental information because it believes it provides useful information regarding the factors and trends affecting the Company's business. Cactus, Inc. - Supplemental Information Reconciliation of GAAP to non-GAAP Financial Measures Adjusted Segment EBITDA and Adjusted Segment EBITDA margin (unaudited) Adjusted Segment EBITDA and Adjusted Segment EBITDA margin are not measures of net income as determined by GAAP but are supplemental non-GAAP financial measures that are used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines Adjusted Segment EBITDA as segment operating income excluding depreciation and amortization and the other items outlined below, in each case, that are attributable to the segment. Cactus management believes Adjusted Segment EBITDA is useful because it allows management to more effectively evaluate the Company's segment operating performance and compare the results of its segment operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. Adjusted Segment EBITDA should not be considered as an alternative to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company's computations of Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted Segment EBITDA margin as Adjusted Segment EBITDA divided by total segment revenue. Cactus presents this supplemental information because it believes it provides useful information regarding the factors and trends affecting the Company's business. 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Valaris Reports First Quarter 2025 Results
Valaris Reports First Quarter 2025 Results HAMILTON, Bermuda, Apr. 30 /BusinessWire/ -- Valaris Limited (NYSE:VAL) ("Valaris" or the "Company") today reported first quarter 2025 results. President and Chief Executive Officer Anton Dibowitz said, "I'd like to thank the entire Valaris team for delivering another quarter of strong operational and financial performance. We continued our track record of providing safe and efficient operations for our customers, delivering revenue efficiency of 96% as well as meaningful EBITDA and free cash flow during the quarter." Dibowitz added, "We are also successfully executing our commercial strategy by securing attractive, long-term contracts for our high-specification fleet. The recent award for drillship VALARIS DS-10 offshore West Africa enhances our presence in a key deepwater region. Additionally, since the beginning of the year, we've had meaningful contracting success across our shallow-water fleet, including contracts for jackups in the Middle East, the North Sea, Australia and Trinidad. We remain actively engaged with customers for additional contracting opportunities in 2026 and beyond." Dibowitz concluded, "While macroeconomic uncertainty has increased recently, we expect offshore production will continue to play a vital role in meeting the world's energy needs and will be an important part of our customers' portfolios going forward. Given our high-quality fleet and operational performance, we believe Valaris is well positioned to secure additional contracts which, paired with our prudent fleet management, will further support our earnings and cash flow." Financial and Operational Highlights Total operating revenues of $621 million, with revenue efficiency of 96%; Net loss of $39 million, inclusive of $167 million of discrete tax expense; Adjusted EBITDA of $181 million; Generated $156 million of cash from operating activities and $74 million of Adjusted Free Cash Flow; Secured approximately $1.0 billion of new contract backlog since February's fleet status report, increasing total backlog by nearly 20% to more than $4.2 billion; Recognized by the International Association of Drilling Contractors ("IADC") North Sea Chapter with its 2024 Best Safety Performance Award for Jackup Rigs; and Sold semisubmersibles VALARIS DPS-3, DPS-5 and DPS-6 for recycling in April. First Quarter Review Net loss of $39 million compared to net income of $131 million in the fourth quarter 2024. Net loss included tax expense of $194 million, which is further described below, compared to a tax benefit of $7 million in the fourth quarter. Adjusted EBITDA increased to $181 million from $142 million in the fourth quarter primarily due to higher revenues for the floater fleet. Revenues exclusive of reimbursable items increased to $578 million from $548 million in the fourth quarter 2024 primarily due to more operating days and higher average daily revenue for the floater fleet. Exclusive of reimbursable items, contract drilling expense decreased to $374 million from $381 million in the fourth quarter 2024 primarily due to a non-cash accrual associated with a legal matter in the fourth quarter, partially offset by higher costs for the floater fleet associated with more operating days. First quarter 2025 included an $8 million loss on impairment related to our decision to retire semisubmersibles VALARIS DPS-3, DPS-5 and DPS-6 during the quarter. General and administrative expense decreased to $24 million from $27 million in the fourth quarter 2024 primarily due to lower professional fees. Other income increased to $11 million from $5 million in the fourth quarter 2024 primarily due to a gain on the sale of assets, including jackup VALARIS 75, partially offset by foreign currency exchange losses compared to gains in the fourth quarter. Tax expense was $194 million compared to tax benefit of $7 million in the fourth quarter 2024. The first quarter 2025 tax provision included $167 million of discrete tax expense, which was primarily attributable to the establishment of a valuation allowance on deferred tax assets in a certain operating jurisdiction in connection with our decision to retire three semisubmersibles during the quarter. The fourth quarter tax provision included $16 million of discrete tax benefit, which was primarily attributable to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years. Adjusted for discrete tax items, tax expense increased to $27 million from $9 million in the fourth quarter. Capital expenditures decreased to $100 million from $112 million in the fourth quarter 2024 primarily due to VALARIS DS-4 undergoing a shipyard upgrade project during the fourth quarter as well as lower maintenance capital expenditures in the first quarter. Cash and cash equivalents and restricted cash increased to $454 million as of March 31, 2025, from $381 million as of December 31, 2024. The increase was primarily due to cash flow from operations and asset sales, partially offset by capital expenditures. First Quarter Segment Review Floaters Revenues exclusive of reimbursable items increased to $356 million from $328 million in the fourth quarter 2024 due to more operating days and higher average daily revenue. The increase in operating days was primarily due to VALARIS DS-4 commencing a new contract offshore Brazil late in the fourth quarter, partially offset by VALARIS DS-12 completing a contract offshore Egypt in the first quarter. The increase in average daily revenue was primarily driven by VALARIS DS-15 commencing a new higher day rate contract offshore Brazil late in the fourth quarter. Exclusive of reimbursable items, contract drilling expense decreased to $204 million from $211 million in the fourth quarter 2024. The decrease was primarily due to a non-cash accrual associated with a legal matter in the fourth quarter, partially offset by higher expense for VALARIS DS-4 following the rig's return to work as costs were capitalized during its shipyard upgrade project during the fourth quarter. Jackups Revenues exclusive of reimbursable items decreased to $186 million from $188 million in the fourth quarter 2024 primarily due to fewer operating days, including for planned repairs on VALARIS 249, partially offset by higher average daily revenues. Exclusive of reimbursable items, contract drilling expense increased to $117 million from $114 million in the fourth quarter 2024 primarily due to an increase in repair costs associated with VALARIS 249. ARO Drilling Revenues decreased to $135 million from $136 million in the fourth quarter 2024. Contract drilling expense increased to $86 million from $82 million in the fourth quarter primarily due to higher bareboat charter expense. Other Revenues exclusive of reimbursable items increased to $36 million from $33 million in the fourth quarter 2024 primarily due to higher bareboat charter revenue from rigs leased to ARO, reflecting fewer out of service days for planned maintenance. Exclusive of reimbursable items, contract drilling expense decreased to $16 million from $18 million in the fourth quarter primarily due to lower survey costs associated with rigs leased to ARO. As previously announced, Valaris will hold its first quarter 2025 earnings conference call at 9:00 a.m. CT (10:00 a.m. ET) on Thursday, May 1, 2025. 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. To learn more, visit the Valaris website at www.valaris.com. Forward-Looking 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," "likely," "outlook," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements regarding expected financial performance; expected utilization, day rates, revenues, operating expenses, cash flows, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the offshore drilling market, including supply and demand, customer drilling programs and the attainment of requisite permits for such programs, stacking of rigs, effects of new rigs on the market and effect of the volatility of commodity prices; expected work commitments, awards, contracts and letters of intent; scheduled delivery dates for rigs; performance and expected benefits of our joint ventures, including our joint venture with Saudi Aramco; timing of the delivery of the Saudi Aramco Rowan Offshore Drilling Company ("ARO") newbuild rigs and the timing of additional ARO newbuild orders; the availability, delivery, mobilization, contract commencement, availability, relocation or other movement of rigs and the timing thereof; rig reactivations; suitability of rigs for future contracts; divestitures of assets; general economic, market, business and industry conditions, including changing tariff policies, trade disputes, inflation and recessions, trends and outlook; general political conditions, including political tensions, conflicts and war; cybersecurity attacks and threats; uncertainty around the use and impacts of artificial intelligence applications; impacts and effects of public health crises, pandemics and epidemics; future operations; ability to renew expiring contracts or obtain new contracts; increasing regulatory complexity; targets, progress, plans and goals related to sustainability matters; the outcome of tax disputes; assessments and settlements; and expense management. The forward-looking statements contained in this press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including cancellation, suspension, renegotiation or termination of drilling contracts and programs; our ability to obtain financing, service our debt, fund capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; future share repurchases; actions by regulatory authorities, or other third parties; actions by our security holders; internal control risk; commodity price fluctuations and volatility, customer demand, loss of a significant customer or customer contract, downtime and other risks associated with offshore rig operations; adverse weather, including hurricanes; changes in worldwide rig supply; and demand, competition and technology; supply chain and logistics challenges; consumer preferences for alternative fuels and forecasts or expectations regarding the global energy transition; increased scrutiny of our sustainability targets, initiatives and reporting and our ability to achieve such targets or initiatives; changes in customer strategy; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties, including recessions, volatility affecting financial markets and the banking system, changing tariff policies, trade disputes, and adverse changes in the level of international trade activity; terrorism, piracy and military action; risks inherent to shipyard upgrade, repair, maintenance, enhancement or rig reactivation; our ability to enter into, and the terms of, future drilling contracts; suitability of rigs for future contracts; the cancellation of letters of intent or letters of award or any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; the use of artificial intelligence by us, third-party service providers or our competitors; environmental or other liabilities, risks or losses; compliance with our debt agreements and debt restrictions that may limit our liquidity and flexibility, including in any return of capital plans; cybersecurity risks and threats; and changes in foreign currency exchange rates. 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, which is 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. Non-GAAP Financial Measures (Unaudited) To supplement Valaris' condensed consolidated financial statements presented on a GAAP basis, this press release provides investors with Adjusted EBITDA and Adjusted Free Cash Flow, which are non-GAAP measures. Valaris defines "Adjusted EBITDA" as net income (loss) before income tax expense, interest expense, other (income) expense, depreciation expense, amortization, loss on impairment and equity in (earnings) losses of ARO. Adjusted EBITDA is a non-GAAP measure that our management uses to facilitate period-to-period comparisons of our core operating performance and to evaluate our long-term financial performance against that of our peers. We believe that this measure is useful to investors and analysts in allowing for greater transparency of our core operating performance and makes it easier to compare our results with those of other companies within our industry. Adjusted EBITDA should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies. Valaris defines "ARO Adjusted EBITDA" as ARO's net income (loss) before income tax expense, other expense, net, depreciation expense and loss on impairment. ARO Adjusted EBITDA is a non-GAAP measure that our management uses to facilitate period-to-period comparisons of ARO's core operating performance and to evaluate ARO's long-term financial performance against that of ARO's peers. We believe that this measure is useful to investors and analysts in allowing for greater transparency of ARO's core operating performance and makes it easier to compare ARO's results with those of other companies within ARO's industry. ARO Adjusted EBITDA should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. ARO Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies. The Company is not able to provide a reconciliation of the Company's forward-looking Adjusted EBITDA, as discussed on its first quarter 2025 earnings conference call, to the most directly comparable GAAP measure without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation, including forward-looking tax expense and other income (expense). Valaris defines "Adjusted Free Cash Flow" as net cash provided by operating activities less capital expenditures plus proceeds from the disposition of assets. Adjusted Free Cash Flow is a non-GAAP measure that our management uses to assess the cash generation of our fleet, including proceeds from the sale of assets, and deducting operating expenses and capital expenditures to maintain and upgrade our assets. We believe that this measure is useful to investors and analysts in allowing for greater transparency of the cash generation of our business. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of Net Income (Loss) to Adjusted EBITDA A reconciliation of net income (loss) as reported to Adjusted EBITDA is included in the tables below (in millions): A reconciliation of net income (loss) as reported to ARO Adjusted EBITDA is included in the tables below (in millions): Reconciliation of Net Income to Adjusted EBITDA Reconciliation of Net Income (Loss) to Adjusted EBITDA Reconciliation of Net Income to Adjusted EBITDA Reconciliation of Cash from Operating Activities to Adjusted Free Cash Flow View source version on businesswire.com: https://www.businesswire.com/news/home/20250429591538/en/ back
Obsidian Energy Announces Date of First Quarter 2025 Results and AGSM Webcast
Obsidian Energy Announces Date of First Quarter 2025 Results and AGSM Webcast Calgary, Alberta--(Newsfile Corp. - April 30, 2025) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") expects to release our first quarter 2025 financial and operational results (the "Release") before North American markets open on Wednesday, May 7, 2025. In addition, the first quarter management's discussion and analysis and the unaudited consolidated financial statements will be available on our website at www.obsidianenergy.com, and under our SEDAR+ profile at www.sedarplus.ca and EDGAR profile at www.sec.gov on or about the same date.ANNUAL AND SPECIAL MEETING The Company's Annual and Special Meeting (the "Meeting") is scheduled for Wednesday, May 7, 2025, at 1:00 p.m. MT (3:00 p.m. ET) at the offices of Obsidian Energy, Suite 200, 207 - 9 Avenue SW, Calgary, Alberta. Access to the Meeting will, subject to Company's by-laws, be limited to essential personnel, registered shareholders and proxyholders entitled to attend and vote at the Meeting as well as invited guests. Additional information about the Meeting can be found on our website. In association with the Meeting, our President and CEO, Stephen Loukas and other members of management will host a webcast presentation after the formal portion of the meeting at 2:00 p.m. MT (4:00 pm ET) (the "Presentation"). The Presentation will be broadcast live on the Internet and may be accessed either through our website or directly at the webcast portal. Those who wish to listen to the Presentation should connect at least five to 10 minutes prior to the scheduled start time through the following numbers: Canada/U.S.: 1-844-763-8274 (toll-free) International: 1-647-484-8814A question-and-answer session will be held following the Presentation. If you wish to submit a question to the Company, participants can do so ahead of time after registering on the webcast portal on the Intranet or by emailing questions to investor.relations@obsidianenergy.com. An updated corporate presentation and the Presentation will be available following the webcast on our website. ADDITIONAL READER ADVISORIESFORWARD-LOOKING STATEMENTSThis news release contains forward-looking statements or information (collectively "forward-looking statements") within the meaning of the safe harbour provisions of applicable securities legislation. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this news release contains forward-looking statements and information concerning: the expected date for the Release, Presentation and corporate presentation.The forward-looking statements and information are based on certain key expectations and assumptions made by Obsidian Energy. Although Obsidian Energy believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Obsidian Energy can give no assurance that they will prove to be correct. By its nature, such forward-looking statements and information are subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, fluctuations in commodity prices, changes in industry regulations and political landscape both domestically and abroad, and financial market volatility. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are cautioned that the assumptions used in the preparation of such forward-looking statements and information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on such forward-looking statements and information. Obsidian Energy gives no assurance that any of the events anticipated will transpire or occur, or, if any of them do, what benefits Obsidian Energy will derive from them. The forward-looking statements and information contained in this news release are expressly qualified by this cautionary statement. Except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein. Readers should also carefully consider the matters discussed that could affect Obsidian Energy, or its operations or financial results in Obsidian Energy's Annual Information Form (see "Risk Factors" and "Forward-Looking Statements" therein) for the year ended December 31, 2024, which is available on the SEDAR+ website (www.sedarplus.ca), EDGAR website (www.sec.gov) or Obsidian Energy's website.Obsidian Energy shares are listed on both the Toronto Stock Exchange in Canada and the NYSE American exchange in the United States under the symbol "OBE".CONTACTOBSIDIAN ENERGYSuite 200, 207 - 9th Avenue SW, Calgary, Alberta T2P 1K3Phone: 403-777-2500Toll Free: 1-866-693-2707Website: www.obsidianenergy.com;Investor Relations:Toll Free: 1-888-770-2633E-mail: investor.relations@obsidianenergy.comTo view the source version of this press release, please visit https://www.newsfilecorp.com/release/249831
Kinetik Announces Chief Strategy Officer to Retire
Kinetik Announces Chief Strategy Officer to Retire HOUSTON & MIDLAND, Texas, Apr. 30 /BusinessWire/ -- Kinetik Holdings Inc. (NYSE:KNTK) ("Kinetik" or the "Company") today announced Anne Psencik, Chief Strategy Officer, informed Kinetik of her intent to retire from the Company, effective June 30, 2025. Ms. Psencik will continue her current day-to-day responsibilities until that time. Following her retirement, she will continue to support the Company as a consultant. "Annie has been a valuable leader at Kinetik, and I thank her for the significant contributions she has made to the Company and our long-term growth strategy," said Jamie Welch, Kinetik's President & Chief Executive Officer. "During her six-year tenure, Annie has managed risk and also served as a trusted advisor on numerous commercial and investment opportunities across our business. I am grateful for her dedicated service and the expertise she brought to the leadership team. We wish her all the best in this next chapter." Ms. Psencik has served as Chief Strategy Officer since 2019. With over 35 years of experience in the oil and gas industry, Ms. Psencik has a proven track record of management and leadership in midstream business development, trading, and engineering and construction. About Kinetik Holdings Inc. Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20250430987980/en/ back
Antero Resources Announces First Quarter 2025 Financial and Operating Results
Antero Resources Announces First Quarter 2025 Financial and Operating Results DENVER, April 30, 2025 /PRNewswire/ -- Antero Resources Corporation (NYSE: AR) ("Antero Resources," "Antero," or the "Company") today announced its first quarter 2025 financial and operating results. The relevant consolidated financial statements are included in Antero Resources' Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. Highlights: Net production averaged 3.4 Bcfe/dNatural gas production averaged 2.2 Bcf/d Liquids production averaged 206 MBbl/d Realized a pre-hedge natural gas equivalent price of $4.55 per Mcfe, which is a $0.90 per Mcfe premium to NYMEXRealized a pre-hedge C3+ NGL price of $45.65 per barrel, a $1.66 per barrel premium to Mont Belvieu pricing Net income was $208 million and Adjusted Net Income was $247 million (Non-GAAP)Adjusted EBITDAX was $549 million (Non-GAAP); net cash provided by operating activities was $458 million, increases of 110% and 75% compared to the prior year period, respectively Drilling and completion capital was $157 million, 16% below the prior year periodFree Cash Flow was $337 million (Non-GAAP)Net Debt during the quarter was reduced by $204 million, to $1.29 billion (Non-GAAP)Purchased 2.7 million shares for approximately $92 million year-to-date through April 30th Paul Rady, Chairman, CEO and President of Antero Resources commented, "Our first quarter 2025 results highlight the benefit of Antero's differentiated strategy in securing firm transportation capacity that sells the majority of our natural gas along the Gulf Coast LNG corridor. The faster than expected ramp-up of Gulf Coast LNG facilities led to record LNG demand and contributed to natural gas realizations at a $0.36 premium to NYMEX during the quarter. Bolstering our premium price realization outlook further, on the NGL side, we entered into firm sales agreements for approximately 90% of our LPG at the Marcus Hook, PA dock at an attractive double-digit premium to Mont Belvieu pricing for 2025. This contracted pricing is expected to deliver an approximate $2.00 per barrel premium to Mont Belvieu in 2025." Michael Kennedy, CFO of Antero Resources said, "Our ability to capture premium prices along with our best-in-class capital efficiency results in an attractive Free Cash Flow outlook. This outlook combined with our low debt levels allowed us to be opportunistic in our share repurchase program, starting it earlier than our previous forecast." Mr. Kennedy continued, "In addition, we reduced debt by over $200 million during the quarter. Looking ahead, we plan to actively manage our share repurchase program, accelerating buybacks when there are market opportunities. This plan also maintains our focus on further debt reduction as we are targeting an undrawn credit facility." 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." Free Cash Flow During the first quarter of 2025, Free Cash Flow was $337 million. Three Months Ended March 31, 2024 2025 Net cash provided by operating activities $ 261,610 457,739 Less: Capital expenditures (222,449) (206,145) Less: Distributions to non-controlling interests in Martica (23,617) (15,969) Free Cash Flow $ 15,544 235,625 Changes in Working Capital (1) (11,086) 101,019 Free Cash Flow before Changes in Working Capital $ 4,458 336,644 (1) Working capital adjustments in the first quarter of 2024 includes $14 million in net increases in current assets and liabilities and $3 million in net decreases in accounts payable and accrued liabilities for additions to property and equipment. Working capital adjustments in the first quarter of 2025 includes $82 million in net decreases in current assets and liabilities and $19 million in net decreases in accounts payable and accrued liabilities for additions to property and equipment. Share Repurchase Program From January 1st, 2025 to April 30th, 2025 Antero purchased 2.7 million shares at an average weighted price of $34.18 per share, or an aggregate $92 million. Antero has approximately $1 billion of capacity remaining on its current share repurchase program. Debt Reduction As of March 31, 2025 Antero's total debt was $1.29 billion. Net Debt to trailing twelve month Adjusted EBITDAX was 1.1x. During the quarter, Antero reduced total debt by $204 million. LPG Firm Sales Contracts Antero entered into sales agreements for approximately 90% of its LPG export volumes for 2025 at a double-digit per cent per gallon premium to Mont Belvieu pricing. These locked-in firm sales do not have cancellation rights. As a result of these firm sales, the Company continues to expect full year 2025 C3+ NGL prices to average a premium to Mont Belvieu pricing in the range of $1.50 to $2.50 per barrel. Lean Gas Hedge Program Antero added new natural gas collars for 2026 with the amounts tied to the expected volumes from its lean gas (approximately 1200 BTU or less) pads planned through the end of 2026. Antero's portfolio includes lean gas development in its capital budget for high gas deliverability and midstream infrastructure availability. These wide collars lock in attractive rates of returns with a floor price of $3.07 per MMBtu with a ceiling of $5.96 per MMBtu. Antero did not enter into any new natural gas hedges for 2025. For more detail please see the presentation titled "Hedges and Guidance Presentation" on Antero's website. Natural Gas MMBtu/d Weighted Average Index Price ($/MMBtu) % of Estimated Natural Gas Production (1) 2025 NYMEX Henry Hub Swap 100,000 $ 3.12 4 % Weighted Average Index Natural Gas (MMBtu/d) Floor Price ($/MMBtu) Ceiling Price ($/MMBtu) % of Estimated Natural Gas Production (1) 2026 NYMEX Henry Hub Collars 320,000 $ 3.07 $ 5.96 14 % (1) Based on the midpoint of 2025 natural gas guidance (including BTU upgrade) First Quarter 2025 Financial Results Net daily natural gas equivalent production in the first quarter averaged 3.4 Bcfe/d, including 206 MBbl/d of liquids. Antero's average realized natural gas price before hedges was $4.01 per Mcf, a $0.36 per Mcf premium to the benchmark index price. Antero's average realized C3+ NGL price before hedges was $45.65 per barrel, a $1.66 per barrel premium to the benchmark index price. The following table details average net production and average realized prices for the three months ended March 31, 2025: Three Months Ended March 31, 2025 Natural Gas (MMcf/d) Oil (Bbl/d) C3+ NGLs (Bbl/d) Ethane (Bbl/d) Combined Natural Gas Equivalent (MMcfe/d) Average Net Production 2,162 9,467 113,656 82,689 3,397 Natural Gas Oil C3+ NGLs Ethane Combined Natural Gas Equivalent Average Realized Prices ($/Mcf) ($/Bbl) ($/Bbl) ($/Bbl) ($/Mcfe) Average realized prices before settled derivatives $ 4.01 59.08 45.65 12.70 4.55 Index price (1) $ 3.65 71.42 43.99 11.46 3.65 Premium / (Discount) to Index price $ 0.36 (12.34) 1.66 1.24 0.90 Settled commodity derivatives (2) $ (0.06) (0.11) - - (0.03) Average realized prices after settled derivatives $ 3.95 58.97 45.65 12.70 4.52 Premium / (Discount) to Index price $ 0.30 (12.45) 1.66 1.24 0.87 (1) Please see Antero's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, for more information on these index and average realized prices. (2) These commodity derivative instruments include contracts attributable to Martica Holdings LLC ("Martica"), Antero's consolidated variable interest entity. All gains or losses from Martica's derivative instruments are fully attributable to the noncontrolling interests in Martica, which includes portions of the natural gas and C3+ NGL and all oil derivative instruments during the three months ended March 31, 2025. All-in cash expense, which includes lease operating, gathering, compression, processing and transportation and production and ad valorem taxes was $2.56 per Mcfe in the first quarter, as compared to $2.44 per Mcfe during the first quarter of 2024. The increase was due primarily to higher gathering, compression, processing and transportation costs related to increased fuel costs as a result of higher natural gas prices. Net marketing expense was $0.06 per Mcfe during the first quarter of 2025, compared to $0.04 per Mcfe during the first quarter of 2024. First Quarter 2025 Operating Results Antero placed 26 horizontal Marcellus wells to sales during the first quarter with an average lateral length of 13,700 feet. Sixteen of these wells have been on line for approximately 60 days with an average rate per well of 32 MMcfe/d, including 1,458 Bbl/d of liquids per well assuming 25% ethane recovery. First Quarter 2025 Capital Investment Antero's drilling and completion capital expenditures for the three months ended March 31, 2025 were $157 million. In addition to capital invested in drilling and completion activities, the Company leased $30 million in land during the first quarter. Through this leasing, Antero added approximately 6,000 net acres, representing 26 incremental drilling locations, replenishing the 26 wells brought on line during the first quarter at an average cost of approximately $850,000 per location. Conference Call A conference call is scheduled on Thursday, May 1, 2025 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, May 8, 2025 at 9:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13750395. To access the live webcast and view the related earnings conference call presentation, visit Antero's website at www.anteroresources.com. The webcast will be archived for replay until Thursday, May 8, 2025 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 income, 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 income as an indicator of financial performance. The GAAP measure most directly comparable to Adjusted Net Income is net income. The following table reconciles net income to Adjusted Net Income (in thousands): Three Months Ended March 31, 2024 2025 Net income and comprehensive income attributable to Antero Resources Corporation $ 22,730 207,971 Net income and comprehensive income attributable to noncontrolling interests 11,942 11,495 Unrealized commodity derivative (gains) losses (8,078) 60,654 Amortization of deferred revenue, VPP (6,738) (6,230) Loss (gain) on sale of assets 188 (575) Impairment of property and equipment 5,190 5,618 Equity-based compensation 16,077 15,145 Loss on early extinguishment of debt - 2,899 Equity in earnings of unconsolidated affiliate (23,347) (28,661) Contract termination, loss contingency and settlements 2,039 (1,308) Tax effect of reconciling items (1) 3,189 (10,387) 23,192 256,621 Martica adjustments (2) (14,696) (9,963) Adjusted Net Income $ 8,496 246,658 Diluted Weighted Average Common Shares Outstanding (3) 312,503 314,798 (1) Deferred taxes were approximately 22% for 2024 and 2025. (2) Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above. (3) Diluted weighted average shares outstanding does not include securities that would have had an anti-dilutive effect on the computation of diluted earnings per share. Anti-dilutive weighted average shares outstanding for the three months ended March 31, 2024 and 2025 were 0.6 million and 0.3 million, respectively. Net Debt Net Debt is calculated as total long-term 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 long-term debt to Net Debt as used in this release (in thousands): December 31, March 31, 2024 2025 Credit Facility $ 393,200 304,100 8.375% senior notes due 2026 96,870 - 7.625% senior notes due 2029 407,115 388,475 5.375% senior notes due 2030 600,000 600,000 Unamortized debt issuance costs (7,955) (7,195) Total long-term debt $ 1,489,230 1,285,380 Less: Cash and cash equivalents - - Net Debt $ 1,489,230 1,285,380 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 capital expenditures, which includes additions to unproved properties, drilling and completion costs and additions to other property and equipment, 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, service or incur additional debt and estimate our ability to return capital to shareholders. 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 income, 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: andis 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 GAAP measures most directly comparable to Adjusted EBITDAX are net income and net cash provided by operating activities. The following table represents a reconciliation of Antero's net income, including noncontrolling interest, to Adjusted EBITDAX and a reconciliation of Antero's Adjusted EBITDAX to net cash provided by operating activities per our condensed consolidated statements of cash flows, in each case, for the three months ended March 31, 2024 and 2025 (in thousands). Adjusted EBITDAX also excludes the noncontrolling interests in Martica, and these adjustments are disclosed in the table below as Martica related adjustments. Three Months Ended March 31, 2024 2025 Reconciliation of net income to Adjusted EBITDAX: Net income and comprehensive income attributable to Antero Resources Corporation $ 22,730 207,971 Net income and comprehensive income attributable to noncontrolling interests 11,942 11,495 Unrealized commodity derivative (gains) losses (8,078) 60,654 Amortization of deferred revenue, VPP (6,738) (6,230) Loss (gain) on sale of assets 188 (575) Interest expense, net 30,187 23,368 Loss on early extinguishment of debt - 2,899 Income tax expense 6,227 54,400 Depletion, depreciation, amortization and accretion 191,251 187,291 Impairment of property and equipment 5,190 5,618 Exploration expense 602 668 Equity-based compensation expense 16,077 15,145 Equity in earnings of unconsolidated affiliate (23,347) (28,661) Dividends from unconsolidated affiliate 31,285 31,314 Contract termination, loss contingency, transaction expense and other 2,020 463 279,536 565,820 Martica related adjustments (1) (17,449) (16,392) Adjusted EBITDAX $ 262,087 549,428 Reconciliation of our Adjusted EBITDAX to net cash provided by operating activities: Adjusted EBITDAX $ 262,087 549,428 Martica related adjustments (1) 17,449 16,392 Interest expense, net (30,187) (23,368) Amortization of debt issuance costs and other 715 466 Exploration expense (602) (668) Changes in current assets and liabilities 14,361 (81,748) Contract termination, loss contingency, transaction expense and other (1,820) (1,771) Other items (393) (992) Net cash provided by operating activities $ 261,610 457,739 (1) Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above. Twelve Months Ended March 31, 2025 Reconciliation of net income to Adjusted EBITDAX: Net income and comprehensive income attributable to Antero Resources Corporation $ 242,467 Net income and comprehensive income attributable to noncontrolling interests 36,024 Unrealized commodity derivative losses 78,155 Amortization of deferred revenue, VPP (26,593) Loss on sale of assets 99 Interest expense, net 111,388 Loss on early extinguishment of debt 3,427 Income tax benefit (70,012) Depletion, depreciation, amortization, and accretion 761,867 Impairment of property and equipment 47,861 Exploration 2,684 Equity-based compensation expense 65,530 Equity in earnings of unconsolidated affiliate (99,101) Dividends from unconsolidated affiliate 125,226 Contract termination, loss contingency, transaction expense and other 3,376 1,282,398 Martica related adjustments (1) (62,732) Adjusted EBITDAX $ 1,219,666 (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 Ended March 31, 2024 2025 Drilling and completion costs (cash basis) $ 188,905 175,134 Change in accrued capital costs (1,746) (17,982) Adjusted drilling and completion costs (accrual basis) $ 187,159 157,152 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. This release includes "forward-looking statements." Words such as "may," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "plan," "estimate," "anticipate," "believe," "project," "budget," "potential," or "continue," and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words. 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 our strategy, future operations, financial position, estimated revenues and losses, projected costs, estimated realized natural gas, NGL and oil prices, anticipated reductions in letters of credit and interest expense, prospects, plans and objectives of management, return of capital, expected results, impacts of geopolitical and world health events, future commodity prices, future production targets, 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, expected drilling and development plans, projected well costs and cost savings initiatives, operations of Antero Midstream, 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. These forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. 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. 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, supply chain or other disruption, availability and cost of drilling, completion and production equipment and services, environmental risks, drilling and completion and other operating risks, marketing and transportation risks, regulatory changes or changes in law, the uncertainty inherent in estimating natural gas, NGLs and oil reserves and in projecting future rates of production, cash flows and access to capital, the timing of development expenditures, conflicts of interest among our stockholders, impacts of geopolitical and world health events, cybersecurity risks, the state of markets for, and availability of, verified quality carbon offsets and the other risks described under the heading " Risk Factors" in Antero Resources' Annual Report on Form 10-K for the year ended December 31, 2024 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. ANTERO RESOURCES CORPORATION Condensed Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited) December 31, March 31, 2024 2025 Assets Current assets: Accounts receivable $ 34,413 40,385 Accrued revenue 453,613 513,382 Derivative instruments 1,050 358 Prepaid expenses 12,423 12,693 Other current assets 6,047 7,967 Total current assets 507,546 574,785 Property and equipment: Oil and gas properties, at cost (successful efforts method): Unproved properties 879,483 883,042 Proved properties 14,395,680 14,444,544 Gathering systems and facilities 5,802 5,802 Other property and equipment 105,871 107,378 15,386,836 15,440,766 Less accumulated depletion, depreciation and amortization (5,699,286) (5,768,456) Property and equipment, net 9,687,550 9,672,310 Operating leases right-of-use assets 2,549,398 2,526,305 Derivative instruments 1,296 778 Investment in unconsolidated affiliate 231,048 239,672 Other assets 33,212 35,471 Total assets $ 13,010,050 13,049,321 Liabilities and Equity Current liabilities: Accounts payable $ 62,213 55,268 Accounts payable, related parties 111,066 118,262 Accrued liabilities 402,591 309,131 Revenue distributions payable 315,932 364,219 Derivative instruments 31,792 84,054 Short-term lease liabilities 493,894 515,880 Deferred revenue, VPP 25,264 24,830 Other current liabilities 3,175 13,702 Total current liabilities 1,445,927 1,485,346 Long-term liabilities: Long-term debt 1,489,230 1,285,380 Deferred income tax liability, net 693,341 746,803 Derivative instruments 17,233 24,416 Long-term lease liabilities 2,050,337 2,005,829 Deferred revenue, VPP 35,448 29,653 Other liabilities 62,001 63,111 Total liabilities 5,793,517 5,640,538 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; 311,165 and 311,584 shares issued and outstanding as of December 31, 2024 and March 31, 2025, respectively 3,111 3,115 Additional paid-in capital 5,909,373 5,902,893 Retained earnings 1,109,166 1,312,366 Total stockholders' equity 7,021,650 7,218,374 Noncontrolling interests 194,883 190,409 Total equity 7,216,533 7,408,783 Total liabilities and equity $ 13,010,050 13,049,321 ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2024 2025 Revenue and other: Natural gas sales $ 474,133 780,005 Natural gas liquids sales 517,862 561,432 Oil sales 64,717 50,335 Commodity derivative fair value gains (losses) 9,446 (71,671) Marketing 48,520 25,558 Amortization of deferred revenue, VPP 6,738 6,230 Other revenue and income 855 818 Total revenue 1,122,271 1,352,707 Operating expenses: Lease operating 29,121 33,986 Gathering, compression, processing and transportation 672,281 695,017 Production and ad valorem taxes 58,168 55,299 Marketing 59,813 42,770 Exploration 602 668 General and administrative (including equity-based compensation expense of $16,077 and $15,145 in 2024 and 2025, respectively) 55,862 62,445 Depletion, depreciation and amortization 190,475 186,352 Impairment of property and equipment 5,190 5,618 Accretion of asset retirement obligations 776 939 Contract termination, loss contingency and settlements 2,039 (1,308) Loss (gain) on sale of assets 188 (575) Other operating expense 17 24 Total operating expenses 1,074,532 1,081,235 Operating income 47,739 271,472 Other income (expense): Interest expense, net (30,187) (23,368) Equity in earnings of unconsolidated affiliate 23,347 28,661 Loss on early extinguishment of debt - (2,899) Total other income (expense) (6,840) 2,394 Income before income taxes 40,899 273,866 Income tax expense (6,227) (54,400) Net income and comprehensive income including noncontrolling interests 34,672 219,466 Less: net income and comprehensive income attributable to noncontrolling interests 11,942 11,495 Net income and comprehensive income attributable to Antero Resources Corporation $ 22,730 207,971 Net income per common share-basic $ 0.07 0.67 Net income per common share-diluted $ 0.07 0.66 Weighted average number of common shares outstanding: Basic 304,943 311,328 Diluted 312,503 314,798 ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three Months Ended March 31, 2024 2025 Cash flows provided by (used in) operating activities: Net income including noncontrolling interests $ 34,672 219,466 Adjustments to reconcile net income to net cash provided by operating activities: Depletion, depreciation, amortization and accretion 191,251 187,291 Impairments 5,190 5,618 Commodity derivative fair value losses (gains) (9,446) 71,671 Gains (losses) on settled commodity derivatives 1,368 (11,017) Deferred income tax expense 6,156 53,462 Equity-based compensation expense 16,077 15,145 Equity in earnings of unconsolidated affiliate (23,347) (28,661) Dividends of earnings from unconsolidated affiliate 31,285 31,314 Amortization of deferred revenue (6,738) (6,230) Amortization of debt issuance costs and other 715 466 Settlement of asset retirement obligations (322) (54) Contract termination, loss contingency and settlements 200 (1,308) Loss (gain) on sale of assets 188 (575) Loss on early extinguishment of debt - 2,899 Changes in current assets and liabilities: Accounts receivable 2,498 (5,972) Accrued revenue 74,587 (59,769) Prepaid expenses and other current assets (2,701) (2,190) Accounts payable including related parties 3,244 11,995 Accrued liabilities (60,825) (86,552) Revenue distributions payable (3,222) 48,286 Other current liabilities 780 12,454 Net cash provided by operating activities 261,610 457,739 Cash flows provided by (used in) investing activities: Additions to unproved properties (27,044) (30,407) Drilling and completion costs (188,905) (175,134) Additions to other property and equipment (6,500) (604) Proceeds from asset sales 363 575 Change in other assets (4,724) (2,321) Net cash used in investing activities (226,810) (207,891) Cash flows provided by (used in) financing activities: Repurchases of common stock - (10,094) Repayment of senior notes - (118,046) Borrowings on Credit Facility 1,125,700 1,308,400 Repayments on Credit Facility (1,127,600) (1,397,500) Distributions to noncontrolling interests in Martica Holdings LLC (23,617) (15,969) Employee tax withholding for settlement of equity-based compensation awards (9,024) (16,298) Other (259) (341) Net cash used in financing activities (34,800) (249,848) 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 $ 48,252 43,078 Decrease in accounts payable and accrued liabilities for additions to property and equipment $ (3,275) (19,271) The following table sets forth selected financial data for the three months ended March 31, 2024 and 2025 (in thousands): Three Months Ended Amount of March 31, Increase Percent 2024 2025 (Decrease) Change Operating revenues and other: Natural gas sales $ 474,133 780,005 305,872 65 % Natural gas liquids sales 517,862 561,432 43,570 8 % Oil sales 64,717 50,335 (14,382) (22) % Commodity derivative fair value gains (losses) 9,446 (71,671) (81,117) * Marketing 48,520 25,558 (22,962) (47) % Amortization of deferred revenue, VPP 6,738 6,230 (508) (8) % Other revenue and income 855 818 (37) (4) % Total revenue 1,122,271 1,352,707 230,436 21 % Operating expenses: Lease operating 29,121 33,986 4,865 17 % Gathering and compression 223,530 236,134 12,604 6 % Processing 255,795 261,155 5,360 2 % Transportation 192,956 197,728 4,772 2 % Production and ad valorem taxes 58,168 55,299 (2,869) (5) % Marketing 59,813 42,770 (17,043) (28) % Exploration 602 668 66 11 % General and administrative (excluding equity-based compensation) 39,785 47,300 7,515 19 % Equity-based compensation 16,077 15,145 (932) (6) % Depletion, depreciation and amortization 190,475 186,352 (4,123) (2) % Impairment of property and equipment 5,190 5,618 428 8 % Accretion of asset retirement obligations 776 939 163 21 % Contract termination, loss contingency and settlements 2,039 (1,308) (3,347) * Gain (loss) on sale of assets 188 (575) (763) * Other expense 17 24 7 41 % Total operating expenses 1,074,532 1,081,235 6,703 1 % Operating income 47,739 271,472 223,733 469 % Other income (expense): Interest expense, net (30,187) (23,368) 6,819 (23) % Equity in earnings of unconsolidated affiliate 23,347 28,661 5,314 23 % Loss on early extinguishment of debt - (2,899) (2,899) * Total other income (expense) (6,840) 2,394 9,234 * Income before income taxes 40,899 273,866 232,967 570 % Income tax expense (6,227) (54,400) (48,173) 774 % Net income and comprehensive income including noncontrolling interests 34,672 219,466 184,794 533 % Less: net income and comprehensive income attributable to noncontrolling interests 11,942 11,495 (447) (4) % Net income and comprehensive income attributable to Antero Resources Corporation 22,730 207,971 185,241 815 % Adjusted EBITDAX $ 262,087 549,428 287,341 110 % * Not meaningful The following table sets forth selected financial data for the three months ended March 31, 2024 and 2025: (Unaudited) Three Months Ended Amount of March 31, Increase Percent 2024 2025 (Decrease) Change Production data (1) (2): Natural gas (Bcf) 202 195 (7) (3) % C2 Ethane (MBbl) 6,760 7,442 682 10 % C3+ NGLs (MBbl) 10,564 10,229 (335) (3) % Oil (MBbl) 1,035 852 (183) (18) % Combined (Bcfe) 312 306 (6) (2) % Daily combined production (MMcfe/d) 3,426 3,397 (29) (1) % Average prices before effects of derivative settlements (3): Natural gas (per Mcf) $ 2.35 4.01 1.66 71 % C2 Ethane (per Bbl) (4) $ 9.32 12.70 3.38 36 % C3+ NGLs (per Bbl) $ 43.05 45.65 2.60 6 % Oil (per Bbl) $ 62.53 59.08 (3.45) (6) % Weighted Average Combined (per Mcfe) $ 3.39 4.55 1.16 34 % Average realized prices after effects of derivative settlements (3): Natural gas (per Mcf) $ 2.36 3.95 1.59 67 % C2 Ethane (per Bbl) (4) $ 9.32 12.70 3.38 36 % C3+ NGLs (per Bbl) $ 43.03 45.65 2.62 6 % Oil (per Bbl) $ 62.39 58.97 (3.42) (5) % Weighted Average Combined (per Mcfe) $ 3.39 4.52 1.13 33 % Average costs (per Mcfe): Lease operating $ 0.09 0.11 0.02 22 % Gathering and compression $ 0.72 0.77 0.05 7 % Processing $ 0.82 0.85 0.03 4 % Transportation $ 0.62 0.65 0.03 5 % Production and ad valorem taxes $ 0.19 0.18 (0.01) (5) % Marketing expense, net $ 0.04 0.06 0.02 50 % General and administrative (excluding equity-based compensation) $ 0.13 0.15 0.02 15 % Depletion, depreciation, amortization and accretion $ 0.61 0.61 - * * Not meaningful (1) Production data excludes volumes related to VPP transaction. (2) 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 may not reflect their relative economic value. (3) 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. (4) The average realized price for the three months ended March 31, 2024 includes $2 million of proceeds related to a take-or-pay contract. Excluding the effect of these proceeds, the average realized price for ethane before and after the effects of derivatives for the three months ended March 31, 2024 would have been $9.07 per Bbl. View original content to download multimedia:https://www.prnewswire.com/news-releases/antero-resources-announces-first-quarter-2025-financial-and-operating-results-302443283.html SOURCE Antero Resources Corporation
COMSTOCK RESOURCES, INC. REPORTS FIRST QUARTER 2025 FINANCIAL AND OPERATING RESULTS
COMSTOCK RESOURCES, INC. REPORTS FIRST QUARTER 2025 FINANCIAL AND OPERATING RESULTS FRISCO, TX, April 30, 2025 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter ended March 31, 2025. Highlights of 2025's First Quarter Higher natural gas prices in the first quarter drove improved financial results in the quarter. Natural gas and oil sales, including realized hedging gains, were $405 million for the quarter.Operating cash flow was $239 million or $0.81 per diluted share.Adjusted EBITDAX for the quarter was $293 million.Adjusted net income was $53.8 million or $0.18 per diluted share for the quarter. Comstock resumed completion activity in late 2024 allowing it to turn fourteen (11.3 net) operated wells to sales since the last update with an average per well initial production rate of 25 MMcf per day.The successful results of Comstock's step out Western Haynesville well drilled in Freestone County, Texas substantially extended the success the Company has had in proving up its Western Haynesville acreage. Financial Results for the Three Months Ended March 31, 2025 Natural gas prices improved substantially in the first quarter of 2025 and Comstock realized $3.58 per Mcf before hedging and $3.52 per Mcf after hedging for its natural gas production of 115 Bcf in the quarter. Comstock's natural gas and oil sales in the first quarter of 2025 increased to $405.0 million (including realized hedging losses of $8.0 million). Operating cash flow (excluding changes in working capital) generated in the first quarter of 2025 was $239.0 million, and net loss for the first quarter was $115.4 million or $0.40 per share. The net loss in the quarter included a pre-tax $322.4 million unrealized loss on hedging contracts held for price risk management resulting from the rise in future natural gas prices since the end of 2024. Excluding this item and exploration expense, adjusted net income for the first quarter of 2025 was $53.8 million, or $0.18 per diluted share. Comstock's production cost per Mcfe in the first quarter averaged $0.83 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.30 for lease operating costs, $0.10 for production and other taxes and $0.06 for cash general and administrative expenses. Comstock's unhedged operating margin was 77% in the first quarter of 2025 and 76% after hedging. Drilling Results Comstock drilled seven (6.9 net) operated horizontal Haynesville/Bossier shale wells in the first quarter of 2025, which had an average lateral length of 11,660 feet. Comstock turned eleven (8.3 net) operated wells to sales in the first quarter of 2025. Since its last operational update in February, Comstock has turned fourteen (11.3 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 25 MMcf per day. The completed lateral length of these wells averaged 12,220 feet. Included in the wells turned to sales was our first Western Haynesville well drilled in Freestone county, the Olajuwon Pickens #1, which had a 10,306 foot completed lateral. This well is 24.4 miles away from the closest producing Western Haynesville well and represents a major milestone in Comstock's progress in delineating its Western Haynesville acreage. The Olajuwon Pickens #1 was turned to sales at an initial production rate of 41 MMcf per day. Other On April 29, 2025, Comstock also announced that its bank group reaffirmed the $2.0 billion borrowing base under its $1.5 billion revolving credit facility. Earnings Call Information Comstock has planned a conference call for 10:00 a.m. Central Time on May 1, 2025, to discuss the first quarter 2025 operational and financial results. Investors wishing to listen should visit the Company's website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:https://register-conf.media-server.com/register/BIe794f2ba5583499f970858176fd39094. Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/99m3j47q. If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on May 1, 2025. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/99m3j47q. This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company's filings with the Securities and Exchange Commission ("SEC") available on the Company's website or the SEC's website at sec.gov. Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company's stock is traded on the New York Stock Exchange under the symbol CRK. COMSTOCK RESOURCES, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share amounts) COMSTOCK RESOURCES, INC.OPERATING RESULTS(In thousands, except per unit amounts) (1) Included in gain (loss) from derivative financial instruments in operating results. (2) Excludes stock-based compensation. COMSTOCK RESOURCES, INC.NON-GAAP FINANCIAL MEASURES(In thousands, except per share amounts) (1) Adjusted net income (loss) is presented because of its acceptance by investors and by Comstock management as an indicator of the Company's profitability excluding non-cash unrealized gains and losses on derivative financial instruments, exploration expense and other unusual items. (2) Adjusted net income (loss) per share is calculated to include the dilutive effects of unvested restricted stock pursuant to the two-class method and performance stock units pursuant to the treasury stock method. (3) Adjusted EBITDAX is presented in the earnings release because management believes that adjusted EBITDAX, which represents Comstock's results from operations before interest, income taxes, and certain non-cash items, including depreciation, depletion and amortization, unrealized gains and losses on derivative financial instruments and exploration expense, is a common alternative measure of operating performance used by certain investors and financial analysts. COMSTOCK RESOURCES, INC.NON-GAAP FINANCIAL MEASURES(In thousands) (1) Operating cash flow is presented in the earnings release because management believes it to be useful to investors as a common alternative measure of cash flows which excludes changes to other working capital accounts. (2) Free cash deficit from operations and free cash deficit after acquisitions are presented in the earnings release because management believes them to be useful indicators of the Company's ability to internally fund acquisitions and debt maturities after exploration and development capital expenditures, midstream and other capital expenditures, contributions from its midstream partner, proved and unproved property acquisitions, and proceeds from divestiture of natural gas and oil properties. COMSTOCK RESOURCES, INC.CONSOLIDATED BALANCE SHEETS(In thousands)
Custom Truck One Source, Inc. Reports First Quarter 2025 Results and Reaffirms 2025 Guidance
Custom Truck One Source, Inc. Reports First Quarter 2025 Results and Reaffirms 2025 Guidance KANSAS CITY, Mo., Apr. 30 /BusinessWire/ -- Custom Truck One Source, Inc. (NYSE:CTOS), a leading provider of specialty equipment to the electric utility, telecom, rail, forestry, waste management and other infrastructure-related end markets, today reported financial results for the three months ended March 31, 2025. CTOS First-Quarter Highlights Total revenue of $422.2 million, an increase of $10.9 million, or 2.7%, compared to the first quarter of 2024 Gross profit of $85.5 million, a decrease of $5.2 million, or 5.7%, compared to the first quarter of 2024 Adjusted Gross Profit of $135.6 million, an increase of $1.2 million, or 0.9%, compared to the first quarter of 2024 Net loss of $17.8 million, an increase of $3.5 million compared to the first quarter of 2024 Adjusted EBITDA of $73.4 million, a $4.0 million decrease compared to the first quarter of 2024 Increased Average OEC on rent by $136.6 million, or 13%, compared to the first quarter of 2024 "In the first quarter, we achieved year-over-year revenue growth, driven by continued strong fundamentals across our primary end markets: utility, infrastructure, rail, and telecom. The significant improvements in our core T&D markets that we experienced in the second half of last year continued into the first quarter, resulting in marked year-over-year increases in rental revenue and rental asset sales within our ERS segment. For the quarter, our rental fleet saw average utilization of just under 78%, a strong improvement versus the same period last year and in line with our expectations. We ended the quarter with total OEC of $1.55 billion, up from the end of last year and the highest in our history, which we anticipate will support our expected growth within ERS in 2025," said Ryan McMonagle, Chief Executive Officer of CTOS. "TES saw another strong quarter of sales, as well as significant year-over-year net order growth, which is reflected in our increased backlog at the end of the quarter. We have continued to experience further backlog growth in April. Sustained, robust demand for vocational vehicles across our end markets continues to drive the performance within the TES segment. We believe that the current pace of customer orders and our existing TES backlog are sufficient to achieve the growth we expect in the segment this year. Despite ongoing challenges to economic activity being posed by the implementation of the new tariff policy, we remain cautiously optimistic about fiscal 2025 and continue to believe Custom Truck is well-positioned to benefit from secular tailwinds driven by data center investments, manufacturing onshoring, electrification, and utility grid upgrades. As a result, we are reaffirming our 2025 guidance that we initiated when we reported last quarter," McMonagle added. Summary Actual Financial Results by Segment Our results are reported for our three segments: Equipment Rental Solutions ("ERS"), Truck and Equipment Sales ("TES") and Aftermarket Parts and Services ("APS"). ERS encompasses our core rental business, inclusive of sales of used rental equipment to our customers. TES encompasses our specialized truck and equipment production and new equipment sales activities. APS encompasses sales and rentals of parts, tools, and other supplies to our customers, as well as our aftermarket repair service operations. Management Commentary First quarter 2025 consolidated rental revenue increased 9.5% compared to the first quarter of 2024 due to higher OEC on rent and utilization. Consolidated equipment sales increased 0.5% compared to the first quarter of 2024, primarily driven by an increase in used equipment sales. Consolidated parts sales and service revenue remained flat year-over-year. The 9.4% increase in ERS segment rental revenue in the first quarter of 2025 compared to the first quarter of 2024 was the result of improved fleet utilization (which increased to 77.7% compared to 73.3%) driven by increased rental volume, with average OEC on rent increasing by 13% year-over-year. Compared to the first quarter of 2024, used equipment sales increased 26.4% in the first quarter of 2025. ERS gross profit and adjusted gross profit margins remained flat year-over-year. Revenue in our TES segment decreased 3.1% in the first quarter of 2025 compared to the first quarter of 2024 as a result of pricing pressures due to the ongoing high-interest rate environment and the mix of equipment sold. Gross profit decreased by 18.9% in the first quarter of 2025 compared to the first quarter of 2024. Order backlog increased 22% compared to the fourth quarter of 2024 with new sales backlog representing approximately 4.8 months of new equipment sales, which is in our historical normal range of four to six months. APS segment revenue in the first quarter of 2025 was essentially flat year-over-year. Gross profit margin declined reflective of continued higher costs of materials. The increase in net loss in the first quarter of 2025 compared to the first quarter of 2024 was primarily due to decreased gross profit and higher interest expense on variable-rate debt and variable-rate floor plan liabilities. Adjusted EBITDA for the first quarter of 2025 was $73.4 million, a 5.1% decrease compared to the first quarter of 2024, which was largely driven by a decline in gross profit as well as higher costs associated with the increase in variable-rate floorplan liabilities from higher inventory levels. As of March 31, 2025, cash and cash equivalents was $5.4 million, Total Debt outstanding was $1,618.0 million, Net Debt was $1,612.6 million and Net Leverage Ratio was 4.80x. Availability under the senior secured credit facility was $289.9 million as of March 31, 2025, and based on our borrowing base, we have an additional $161.4 million of suppressed availability that we can potentially utilize by upsizing our existing facility. As we disclosed in a Form 8-K filing with the SEC on February 3, 2025 and discussed on last quarter's earnings call, on January 30, 2025, the Company purchased 8,143,635 shares of the Company's common stock from affiliates of Energy Capital Partners at a purchase price of $4.00 per share, which represents an approximately 23% discount from the price of $5.19 per share of common stock at the close of trading on January 29, 2025, for an aggregate purchase price of $32.6 million. OUTLOOK We are reaffirming our full-year revenue and Adjusted EBITDA1, 4 guidance for 2025 at this time. We continue to expect 2025 to be a year of growth. We believe TES will continue to benefit from an overall good macro demand environment as well as our strong relationships with our key customers, and chassis and attachment suppliers. After the unexpected volatility in our ERS segment rental markets in 2024, primarily in the transmission and distribution utility market, we experienced a return to strong demand in the second half of fiscal year 2024, which has continued into 2025. Coupled with our efforts to further penetrate the vocational rental market, we believe the ERS outlook from our rental customers for long-term demand and growth will be strong. As a result, we expect to further grow our rental fleet (based on net OEC) by at least mid-single digits. Regarding TES, further supply chain improvements, healthy, but improved inventory levels exiting 2024, and normalized backlog levels will continue to allow us to produce and deliver even more units again in 2025. Further, despite a tactical investment in inventory during the first quarter to mitigate the impact of new tariffs, we expect to make progress on unwinding our significant strategic investment in inventory levels over the last two years by the end of the year. As a result, we expect to generate meaningful free cash flow in 2025, setting a target to generate $50 million to $100 million of levered free cash flow2, 4 and deliver a meaningful reduction in our net leverage ratio3, 4 by the end of the fiscal year. "Despite the ongoing uncertainty related to the new tariff policy, we remain cautiously optimistic about fiscal 2025. Custom Truck continues to be well-positioned to benefit from secular tailwinds. After a somewhat unpredictable 2024, including the uncertainties relating to a high-interest rate environment and the Presidential election, our fiscal year 2025 outlook again reflects the long-term strength of our end markets, our strong strategic and competitive positioning, and the continued focus by our teams to profitably grow our business," said Mr. McMonagle. CONFERENCE CALL INFORMATION The Company has scheduled a conference call at 9:00 a.m. ET on May 1, 2025, to discuss its first quarter 2025 financial results. A webcast will be publicly available at: investors.customtruck.com. To listen by phone, please dial 1-800-715-9871 or 1-646-307-1963 and provide the operator with conference ID 8102215. A replay of the call will be available until 11:59 p.m. ET, Thursday, May 8, 2025, by dialing 1-800-770-2030 or 1-609-800-9909 and entering passcode 8102215. ABOUT CTOS CTOS is one of the largest providers of specialty equipment, parts, tools, accessories and services to the electric utility transmission and distribution, telecommunications, and rail markets in North America, with a differentiated "one-stop-shop" business model. CTOS offers its specialized equipment to a diverse customer base for the maintenance, repair, upgrade, and installation of critical infrastructure assets, including electric lines, telecommunications networks, and rail systems. The Company's coast-to-coast rental fleet of approximately 10,000 units includes aerial devices, boom trucks, cranes, digger derricks, pressure drills, stringing gear, Hi-rail equipment, repair parts, tools, and accessories. For more information, please visit customtruck.com. FORWARD-LOOKING STATEMENTS This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, as amended, and within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "suggests," "plans," "targets," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's management's control, that could cause actual results or outcomes to differ materially from those discussed in this press release. This press release is based on certain assumptions that the Company's management has made in light of its experience in the industry, as well as the Company's perceptions of historical trends, current conditions, expected future developments and other factors the Company believes are appropriate in these circumstances and at such time. As you read and consider this press release, you should understand that these statements are not guarantees of performance or results. Many factors could affect the Company's actual performance and results and could cause actual results to differ materially from those expressed in this press release. Important factors, among others, that may affect actual results or outcomes include: increases in labor costs, changes in U.S. trade policy including tariffs, our inability to obtain raw materials, component parts and/or finished goods in a timely and cost-effective manner, and our inability to manage our rental equipment in an effective manner; competition in the equipment dealership and rental industries; our sales order backlog may not be indicative of the level of our future revenues; increases in unionization rate in our workforce; our inability to attract and retain key personnel, including our management and skilled technicians; material disruptions to our operation and manufacturing locations as a result of public health concerns, equipment failures, natural disasters, work stoppages, power outages or other reasons; any further increase in the cost of new equipment that we purchase for use in our rental fleet or for sale as inventory; and aging or obsolescence of our existing equipment, and the fluctuations of market value thereof; disruptions in our supply chain; our business may be impacted by government spending; we may experience losses in excess of our recorded reserves for receivables; uncertainty relating to macroeconomic conditions, unfavorable conditions in the capital and credit markets and our customers' inability to obtain additional capital as required; increases in price of fuel or freight; regulatory technological advancement, or other changes in our core end-markets may affect our customers' spending; our strategic initiatives including acquisitions and divestitures may not be successful and may divert our management's attention away from operations and could create general customer uncertainty; the interest of our majority stockholder, which may not be consistent with the other stockholders; volatility of our common stock market price; our significant indebtedness, which may adversely affect our financial position, limit our available cash and our access to additional capital, prevent us from growing our business and increase our risk of default; our inability to generate cash, which could lead to a default; significant operating and financial restrictions imposed by our debt agreements; changes in interest rates, which could increase our debt service obligations on the variable rate indebtedness and decrease our net income and cash flows; disruptions or security compromises affecting our information technology systems or those of our critical services providers could adversely affect our operating results by subjecting us to liability, and limiting our ability to effectively monitor and control our operations, adjust to changing market conditions, or implement strategic initiatives; we are subject to complex laws and regulations, including environmental and safety regulations that can adversely affect cost, manner or feasibility of doing business; we are subject to a series of risks related to climate change; and increased attention to, and evolving expectations for, sustainability and environmental, social and governance initiatives. For a more complete description of these and other possible risks and uncertainties, please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and its subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. CUSTOM TRUCK ONE SOURCE, INC. NON-GAAP FINANCIAL AND PERFORMANCE MEASURES In our press release and schedules, and on the related conference call, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles ("GAAP"). We utilize these financial measures to manage our business on a day-to-day basis and some of these measures are commonly used in our industry to evaluate performance by excluding items considered to be non-recurring. We believe these non-GAAP measures provide investors expanded insight to assess performance, in addition to the standard GAAP-based financial measures. The press release schedules reconcile the most directly comparable GAAP measure to each non-GAAP measure that we refer to. Although management evaluates and presents these non-GAAP measures for the reasons described herein, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, operating income/loss, net income/loss, earnings/loss per share or any other comparable measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP financial measures differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others. Adjusted EBITDA. Adjusted EBITDA is a non-GAAP performance measure that we use to monitor our results of operations, to measure performance against debt covenants and performance relative to competitors. We believe Adjusted EBITDA is a useful performance measure because it allows for an effective evaluation of operating performance, without regard to financing methods or capital structures. We exclude the items identified in the reconciliations of net income (loss) to Adjusted EBITDA because these amounts are either non-recurring or can vary substantially within the industry depending upon accounting methods and book values of assets, including the method by which the assets were acquired, and capital structures. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) determined in accordance with GAAP. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historical costs of depreciable assets, none of which are reflected in Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as an indication that results will be unaffected by the items excluded from Adjusted EBITDA. Our computation of Adjusted EBITDA may not be identical to other similarly titled measures of other companies. We define Adjusted EBITDA as net income or loss before interest expense, income taxes, depreciation and amortization, share-based compensation, and other items that we do not view as indicative of ongoing performance. Our Adjusted EBITDA includes an adjustment to exclude the effects of purchase accounting adjustments when calculating the cost of inventory and used equipment sold. When inventory or equipment is purchased in connection with a business combination, the assets are revalued to their current fair values for accounting purposes. The consideration transferred (i.e., the purchase price) in a business combination is allocated to the fair values of the assets as of the acquisition date, with amortization or depreciation recorded thereafter following applicable accounting policies; however, this may not be indicative of the actual cost to acquire inventory or new equipment that is added to product inventory or the rental fleets apart from a business acquisition. We also include an adjustment to remove the impact of accounting for certain of our rental contracts with customers containing a rental purchase option that are accounted for under GAAP as a sales-type lease. We include this adjustment because we believe continuing to reflect the transactions as an operating lease better reflects the economics of the transactions given our large portfolio of rental contracts. These, and other, adjustments to GAAP net income or loss that are applied to derive Adjusted EBITDA are specified by our senior secured credit agreement and the indenture of our senior secured notes. Adjusted Gross Profit. We present total gross profit excluding rental equipment depreciation ("Adjusted Gross Profit") as a non-GAAP financial performance measure. This measure differs from the GAAP definition of gross profit, as we do not include the impact of depreciation expense, which represents non-cash expense. We use this measure to evaluate operating margins and the effectiveness of the cost of our rental fleet. Net Debt. We present the non-GAAP financial measure "Net Debt," which is total debt (the most comparable GAAP measure, calculated as current and long-term debt, excluding deferred financing fees, plus current and long-term finance lease obligations) minus cash and cash equivalents. We believe this non-GAAP measure is useful to investors to evaluate our financial position. Net Leverage Ratio. Net leverage ratio is a non-GAAP performance measure used by management and we believe it provides useful information to investors because it is an important measure to evaluate our debt levels and progress toward leverage targets, which is consistent with the manner our lenders and management use this measure. We define net leverage ratio as net debt divided by Adjusted EBITDA for the previous twelve-month period ("last twelve months," or "LTM"). Adjusted EBITDA is defined as net income (loss), as adjusted for provision for income taxes, interest expense, net, depreciation of rental equipment and non-rental depreciation and amortization, and further adjusted for the impact of the fair value mark-up of acquired rental fleet, business acquisition and merger-related costs, including integration, the impact of accounting for certain of our rental contracts with customers that are accounted for under GAAP as sales-type lease and stock compensation expense. This non-GAAP measure is subject to certain limitations. View source version on businesswire.com: https://www.businesswire.com/news/home/20250430617761/en/ back
Magnolia Oil & Gas Corporation Announces First Quarter 2025 Results
Magnolia Oil & Gas Corporation Announces First Quarter 2025 Results HOUSTON, Apr. 30 /BusinessWire/ -- Magnolia Oil & Gas Corporation ("Magnolia," "we," "our," or the "Company") (NYSE:MGY) today announced its financial and operational results for the first quarter of 2025. First Quarter 2025 Highlights: First Quarter 2025 Highlights: Magnolia reported first quarter 2025 net income attributable to Class A Common Stock of $102.9 million, or $0.54 per diluted share. First quarter 2025 total net income was $106.6 million and total adjusted net income(1) was $105.6 million. Diluted weighted average total shares outstanding decreased by 5% to 194.2 million(2) compared to first quarter 2024. Adjusted EBITDAX(1) was $248.4 million during the first quarter of 2025. Total drilling and completions ("D&C") capital was $130.4 million and below our earlier guidance. The first quarter D&C capital represented approximately 53% of adjusted EBITDAX and is expected to be the largest quarterly capital outlay during 2025. Net cash provided by operating activities was $224.5 million during the first quarter of 2025 and the Company generated free cash flow(1) of $110.5 million. Magnolia generated operating income as a percentage of revenue (pre-tax margins) of 39% during the first quarter. Total Company production volumes in the first quarter of 2025 grew by 14% on a year-over-year basis to 96.5 thousand barrels of oil equivalent per day ("Mboe/d") including 39.1 thousand barrels of oil per day ("Mbbls/d"). The better-than-expected production levels were the result of stronger than anticipated well productivity and shallower than expected well declines in Giddings. Production from Giddings was 76.7 Mboe/d, providing overall growth of 25% compared to last year's first quarter, including oil production growth of 17%. We are increasing our full-year 2025 production growth guidance range to 7 to 9 percent, from 5 to 7 percent previously, due to the stronger than expected first quarter production volumes and improved overall well performance. In addition, we are reducing our capital spending program for 2025 to a new range of $430 to $470 million, compared to our initial plan of $460 to $490 million, a decrease of a little more than 5%. Our strong start to the year, including better well performance and improved capital efficiencies provides us with operational flexibility to deliver higher growth while spending less and maintaining the discipline of our business model. The Company repurchased 2.2 million of its Class A Common Stock during the first quarter for $52.0 million. Magnolia has 9.6 million Class A Common shares remaining under its current repurchase authorization, which are specifically allocated toward open market share repurchases. As previously announced, the Board of Directors declared a cash dividend of $0.15 per share of Class A common stock, and a cash distribution of $0.15 per Class B unit, payable on June 2, 2025 to shareholders of record as of May 12, 2025. Magnolia returned $81.7 million(3), or 74% of the Company's free cash flow(1), to shareholders during the first quarter through a combination of share repurchases and dividends. Together with the significant return of cash to shareholders, Magnolia ended the first quarter with $247.6 million of cash on the balance sheet and an undrawn $450 million revolving credit facility. "Magnolia's very strong start to 2025 as demonstrated by our first quarter results, was supported by better than expected well performance, providing us with greater confidence in this year's development program and continuing to validate the high-quality nature of our assets," said President and CEO Chris Stavros. "Our total production during the first quarter of 96.5 thousand barrels of oil equivalent per day exceeded our expectations and was driven by strong well productivity in our Giddings asset together with shallower than expected declines. Much of this benefit originated from a newer area of Giddings which we had previously appraised, acquired additional acreage and more recently brought online multiple pads that have outperformed. As this area was expected to be a little gassier than the average Giddings well, we tactically planned some activity here to be brought online during the winter months to take advantage of historically higher pricing. "The Giddings area has continued to surprise us to the upside as we have applied more modern drilling and completion techniques to this older vintage oil and gas field, which has delivered strong well productivity and returns. "The strong start to this year including our better well performance and improved capital efficiency allows us to raise our guidance for 2025 year-over-year production growth to a range of 7 to 9 percent compared to our initial outlook of 5 to 7 percent. At the same time, we are lowering the range for our 2025 capital spending to $430 to $470 million, a reduction of approximately $25 million or more than 5 percent from the midpoint of our original spending plan. At current product prices, we now expect to see somewhat higher production and for less capital while maintaining a high level of flexibility in our activity program for the remainder of the year. "Recent volatility in the financial markets and for product prices suggest that we have entered a period of elevated uncertainty for the global economy. With our low level of debt and business model oriented toward capital discipline, Magnolia is well-prepared and able to manage through periods of weaker product prices or potential market instability. As we noted earlier this year, our teams took proactive measures during the last couple of years to reduce both our field-level operating costs as well as working with our key oil field service providers and material vendors to lower our overall well costs. These early efforts taken during a period of higher product prices has reduced our overall cost structure placing us in a stronger position should prices weaken, allowing for our sustainable return of cash to shareholders through our base dividend and ongoing share repurchases." Operational Update Total Company production volumes in the first quarter of 2025 grew by 14 percent on a year-over-year basis to 96.5 Mboe/d including 39.1 Mbbls/d, both setting new quarterly production records for the Company. First quarter Giddings production increased by 25 percent, compared to the prior year period with Giddings oil production growing 17 percent compared to the first quarter of 2024. Giddings production represented 79 percent of total Company volumes during the first quarter. Magnolia's first quarter 2025 capital spending on drilling, completions, and associated facilities was $130.4 million and is expected to be the highest quarterly spending rate during 2025. Magnolia had targeted to bring online some gas-weighted multi-well pads in a newer area during the winter months to take advantage of seasonally higher prices, and well productivity and performance exceeded the Company's expectations. The wells in this newer area have strong production rates and exhibited shallower declines with excellent returns and quick pay back periods. These results should allow us to generate high single-digit total production growth in 2025 and with fewer total wells turned in line compared to last year. Other areas within Giddings saw strong oil production performance with meaningful associated gas volumes. Flexibility with our operating program could allow for additional appraisal tests later this year. Magnolia plans to continue to operate two drilling rigs and one completion crew during 2025 and expects to maintain this level of activity through the remainder of the year. Our two operated rig and one completion crew development program has been in place consistently for the last four years driving total Company production growth of more than 40 percent and more than doubling our production volumes in Giddings. Approximately 75 to 80 percent of the 2025 activity will consist of multi-well development pads in the Giddings area combined with some appraisal wells intended to test some concepts and extend the boundaries of the play within our sizable acreage position. Our development program at Giddings consists of drilling multi-well pads throughout our core 200,000 net acre development area. This creates a balanced and efficient program that provides consistent year-over-year results. Additional Guidance The better than expected first quarter production supported by continued strong well performance leads us to increase our guidance for year-over-year production growth in the range of 7 to 9 percent, compared to our prior forecast of 5 to 7 percent. Magnolia is also reducing its total 2025 D&C capital spending by slightly more than 5 percent within the range of $430 to $470 million, from $460 to $490 million previously. This includes an estimate of non-operated capital that is similar to 2024 levels. Second quarter 2025 D&C capital spending is estimated to be approximately $110 million and total production for the second quarter is estimated to be roughly flat on a sequential quarterly basis, or approximately 97 Mboe/d. Oil price differentials are anticipated to be approximately a $3 per barrel discount to Magellan East Houston and Magnolia remains completely unhedged for all its oil and natural gas production. The fully diluted share count for the second quarter of 2025 is expected to be approximately 193 million shares, which is 4 percent lower than second quarter 2024 levels. Quarterly Report on Form 10-Q Magnolia's financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the three months ended March 31, 2025, which is expected to be filed with the U.S. Securities and Exchange Commission ("SEC") on May 1, 2025. Conference Call and Webcast Magnolia will host an investor conference call on Thursday, May 1, 2025 at 10:00 a.m. Central (11:00 a.m. Eastern) to discuss these operating and financial results. Interested parties may join the webcast by visiting Magnolia's website at www.magnoliaoilgas.com/investors/events-and-presentations and clicking on the webcast link or by dialing 1-844-701-1059. A replay of the webcast will be posted on Magnolia's website following completion of the call. About Magnolia Oil & Gas Corporation Magnolia (MGY) is a publicly traded oil and gas exploration and production company with operations primarily in South Texas in the core of the Eagle Ford Shale and Austin Chalk formations. Magnolia focuses on generating value for shareholders by delivering steady, moderate annual production growth resulting from its disciplined and efficient philosophy toward capital spending. The Company strives to generate high pre-tax margins and consistent free cash flow allowing for strong cash returns to our shareholders. For more information, visit www.magnoliaoilgas.com. Cautionary Note Regarding Forward-Looking Statements The information in this press release 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 present or historical fact included in this press release, regarding Magnolia's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, the words could, should, will, may, believe, anticipate, intend, estimate, expect, project, the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events. Except as otherwise required by applicable law, Magnolia disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Magnolia cautions you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Magnolia, incident to the development, production, gathering and sale of oil, natural gas and natural gas liquids. In addition, Magnolia cautions you that the forward looking statements contained in this press release are subject to the following factors: (i) the supply and demand for oil, natural gas, NGLs, and other products or services, including impacts of actions taken by OPEC and other state-controlled oil companies; (ii) the outcome of any legal proceedings that may be instituted against Magnolia; (iii) Magnolia's ability to realize the anticipated benefits of its acquisitions, which may be affected by, among other things, competition and the ability of Magnolia to grow and manage growth profitably; (iv) changes in applicable laws or regulations; (v) geopolitical and business conditions in key regions of the world; and (vi) the possibility that Magnolia may be adversely affected by other economic, business, and/or competitive factors, including inflation and tariffs. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in Magnolia's filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Magnolia's SEC filings are available publicly on the SEC's website at www.sec.gov. Magnolia Oil & Gas Corporation Non-GAAP Financial Measures Reconciliation of net income to adjusted EBITDAX In this press release, we refer to adjusted EBITDAX, a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, and rating agencies. We define adjusted EBITDAX as net income before interest expense, income taxes, depreciation, depletion and amortization, exploration expenses, and accretion of asset retirement obligations, adjusted to exclude the effect of certain items included in net income. Adjusted EBITDAX is not a measure of net income in accordance with GAAP. Our management believes that adjusted EBITDAX is useful because it allows them to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We also believe that securities analysts, investors, and other interested parties may use adjusted EBITDAX in the evaluation of our Company. We exclude the items listed above from net income in arriving at adjusted EBITDAX 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 EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of adjusted EBITDAX. Our presentation of adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Our computations of adjusted EBITDAX may not be comparable to other similarly titled measures of other companies. The following table presents a reconciliation of net income to adjusted EBITDAX, our most directly comparable financial measure, calculated and presented in accordance with GAAP: Magnolia Oil & Gas Corporation Non-GAAP Financial Measures Reconciliation of net income to adjusted net income Our presentation of adjusted net income is a non-GAAP measures because it excludes the effect of certain items included in net income. Management uses adjusted net income to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Company's on-going business operations. As a performance measure, adjusted net income may be useful to investors in facilitating comparisons to others in the Company's industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, and capital structure, among other factors. Management believes adjusting these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted net income may not be comparable to similar measures of other companies in our industry. Magnolia Oil & Gas Corporation Non-GAAP Financial Measures Reconciliation of revenue to adjusted cash operating margin and operating income margin Our presentation of adjusted cash operating margin and total adjusted cash operating costs are supplemental non-GAAP financial measures that are used by management. Total adjusted cash operating costs exclude the impact of non-cash activity. We define adjusted cash operating margin per boe as total revenues per boe less cash operating costs per boe. Management believes that total adjusted cash operating costs per boe and adjusted cash operating margin per boe provide relevant and useful information, which is used by our management in assessing the Company's profitability and comparability of results to our peers. As a performance measure, total adjusted cash operating costs and adjusted cash operating margin may be useful to investors in facilitating comparisons to others in the Company's industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, and capital structure, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted cash operating margin may not be comparable to similar measures of other companies in our industry. Magnolia Oil & Gas Corporation Non-GAAP Financial Measures Reconciliation of net cash provided by operating activities to free cash flow Free cash flow is a non-GAAP financial measure. Free cash flow is defined as cash flows from operations before net change in operating assets and liabilities less additions to oil and natural gas properties and changes in working capital associated with additions to oil and natural gas properties. Management believes free cash flow is useful for investors and widely accepted by those following the oil and gas industry as financial indicators of a company's ability to generate cash to internally fund drilling and completion activities, fund acquisitions, and service debt. It is also used by research analysts to value and compare oil and gas exploration and production companies and are frequently included in published research when providing investment recommendations. Free cash flow is used by management as an additional measure of liquidity. Free cash flow is not a measure of financial performance under GAAP and should not be considered an alternative to cash flows from operating, investing, or financing activities. View source version on businesswire.com: https://www.businesswire.com/news/home/20250430583484/en/ back
NextNRG Expands Services into Oklahoma
NextNRG Expands Services into Oklahoma MIAMI, April 30, 2025 (GLOBE NEWSWIRE) -- NextNRG, Inc. ("NextNRG" or the "Company") (Nasdaq: NXXT), a pioneer in AI-driven energy innovationtransforming how energy is produced, managed, and delivered through its advanced Utility Operating System, smart microgrid technology, wireless EV charging, and on-demand mobile fuel delivery solutions today announced the expansion of its mobile fueling operations into Oklahoma, further extending its national footprint and advancing its recurring revenue strategy. Initial operations in Oklahoma will begin with servicing one of the nation's largest in-house fleet operators under a long-term agreement. The Company expects to build on this foundation by expanding services to additional national accounts and opening new markets across the state. NextNRG believes that Oklahoma's expanding infrastructure and logistics sectors represent a significant opportunity for mobile fueling services. With more than $9 billion in planned construction through 2030, a high concentration of fleet-reliant industries, and its role as a national freight and energy corridor, the state aligns well with NextNRG's customer profile and operating model. "Oklahoma represents a strong entry point as we expand fueling services for one of the largest in-house fleet operators in the U.S.," said Michael D. Farkas, Founder and CEO of NextNRG. "This launch not only supports an existing customer relationship under a long-term agreement, but also provides a foundation for broader growth across the state as we scale with additional national partners and open new markets in the region." NextNRG's direct-to-site fueling services are currently active in several states, including Florida, Texas, California, Tennessee, Michigan and Arizona. The Company provides centralized account management, on-demand scheduling and secure tracking tools through its proprietary customer interface. About NextNRG, Inc.NextNRG, Inc. (NextNRG) is Powering What's Next by implementing artificial intelligence (AI) and machine learning (ML) into renewable energy, next-generation energy infrastructure, battery storage, wireless electric vehicle (EV) charging and on-demand mobile fuel delivery to create an integrated ecosystem. At the core of NextNRG's strategy is its Utility Operating System, which leverages AI and ML to help make existing utilities' energy management as efficient as possible; and the deployment of NextNRG smart microgrids, which utilize AI-driven energy management alongside solar power and battery storage to enhance energy efficiency, reduce costs and improve grid resiliency. These microgrids are designed to serve commercial properties, schools, hospitals, nursing homes, parking garages, rural and tribal lands, recreational facilities and government properties, expanding energy accessibility while supporting decarbonization initiatives. NextNRG continues to expand its growing fleet of fuel delivery trucks and national footprint, including the acquisition of Yoshi Mobility's fuel division and Shell Oil's trucks, further solidifying its position as a leader in the on-demand fueling industry. NextNRG is also integrating sustainable energy solutions into its mobile fueling operations. The company hopes to be an integral part of assisting its fleet customers in their transition to EV, supporting more efficient fuel delivery while advancing clean energy adoption. The transition process is expected to include the deployment of NextNRG's innovative wireless EV charging solutions. To find out more, visit: www.nextnrg.com Forward-Looking StatementsThis press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement describing NextNRG's goals, expectations, financial or other projections, intentions, or beliefs is a forward-looking statement and should be considered an at-risk statement. Words such as "expect," "intends," "will," and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, including, but not limited to, those related to NextNRG's business and macroeconomic and geopolitical events. These and other risks are described in NextNRG's filings with the Securities and Exchange Commission from time to time. NextNRG's forward-looking statements involve assumptions that, if they never materialize or prove correct, could cause its results to differ materially from those expressed or implied by such forward-looking statements. Although NextNRG's forward-looking statements reflect the good faith judgment of its management, these statements are based only on facts and factors currently known by NextNRG. Except as required by law, NextNRG undertakes no obligation to update any forward-looking statements for any reason. As a result, you are cautioned not to rely on these forward-looking statements. Investor Relations ContactNextNRG, Inc.Sharon CohenSCohen@nextnrg.com
Hess Midstream LP Reports Estimated Results for the First Quarter of 2025
Hess Midstream LP Reports Estimated Results for the First Quarter of 2025 First Quarter 2025 Highlights:Net income was $161.4 million. Net cash provided by operating activities was $202.4 million.Net income attributable to Hess Midstream LP was $71.6 million, or $0.65 basic earnings per Class A share, after deduction for noncontrolling interests.Adjusted EBITDA1 was $292.3 million and Adjusted Free Cash Flow1 was $190.7 million.Increased quarterly cash distribution to $0.7098 per Class A share for the first quarter of 2025, an increase of $0.0086 per Class A share for the first quarter of 2025 compared with the fourth quarter of 2024.Completed accretive $100.0 million repurchase of Class B units of Hess Midstream Operations LP in January 2025.Throughput volumes increased 8% for gas processing, 7% for oil terminaling and 9% for water gathering compared with the prior-year quarter, primarily due to higher production.Hess Midstream LP is reaffirming its full year 2025 financial and throughput guidance. HOUSTON, Apr. 30 /BusinessWire/ -- Hess Midstream LP (NYSE:HESM) ("Hess Midstream" or the "company") today reported first quarter 2025 net income of $161.4 million compared with net income of $161.9 million for the first quarter of 2024. After deduction for noncontrolling interests, net income attributable to Hess Midstream was $71.6 million, or $0.65 basic earnings per Class A share, compared with $0.60 basic earnings per Class A share in the first quarter of 2024. Hess Midstream generated Adjusted EBITDA of $292.3 million. Net cash provided by operating activities was $202.4 million and Adjusted Free Cash Flow was $190.7 million. "We continued to deliver strong operational and financial performance in the first quarter despite challenging weather," said John Gatling, President and Chief Operating Officer of Hess Midstream. "We remain focused on execution, delivery, and growth, which continues to drive the opportunity to return capital to our shareholders on a consistent and ongoing basis." Hess Midstream's results contained in this release are consolidated to include the noncontrolling interests in Hess Midstream Operations LP owned by affiliates of Hess Corporation ("Hess") and Global Infrastructure Partners, a part of BlackRock ("GIP" and together with Hess, the "Sponsors"). We refer to certain results as "attributable to Hess Midstream LP," which exclude the noncontrolling interests in Hess Midstream Operations LP owned by the Sponsors. (1) Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP measures. Definitions and reconciliations of these non-GAAP measures to GAAP reporting measures appear in the following pages of this release. Financial Results Revenues and other income in the first quarter of 2025 were $382.0 million compared with $355.6 million in the prior-year quarter. First quarter 2025 revenues included $25.5 million of pass-through electricity, produced water trucking and disposal costs and certain other fees compared with $23.2 million in the prior-year quarter. First quarter 2025 revenues and other income were up $26.4 million compared with the prior-year quarter, primarily due to higher physical volumes. Total operating costs and expenses in the first quarter of 2025 were $144.6 million, up from $133.6 million in the prior-year quarter, primarily due to higher employee costs charged to Hess Midstream, higher pass-through electricity and produced water trucking and disposal costs, and higher depreciation expense for additional assets placed in service. Interest expense, net of interest income, in the first quarter of 2025 was $56.4 million, up from $48.5 million in the prior-year quarter, primarily due to $600.0 million 6.500% fixed-rate senior unsecured notes issued in May 2024, $800.0 million 5.875% fixed-rate senior unsecured notes issued in February 2025 and charges associated with early redemption of $800.0 million 5.625% fixed-rate senior unsecured notes, partially offset by lower interest on lower borrowings under the company's credit facilities. Net income for the first quarter of 2025 was $161.4 million, or $0.65 basic earnings per Class A share, after deduction for noncontrolling interests, compared with $0.60 basic earnings per Class A share in the prior-year quarter. Substantially all of income tax expense was attributed to earnings of Class A shares reflective of Hess Midstream's organizational structure. Net cash provided by operating activities for the first quarter of 2025 was $202.4 million. Adjusted EBITDA for the first quarter of 2025 was $292.3 million. Adjusted Free Cash Flow for the first quarter of 2025 was $190.7 million. In February 2025, Hess Midstream Operations LP issued $800.0 million aggregate principal amount of 5.875% fixed-rate senior unsecured notes due 2028 at par to qualified institutional investors. The proceeds from the notes were used to redeem its outstanding $800.0 million aggregate principal amount of 5.625% senior notes due 2026. At March 31, 2025, Hess Midstream had a drawn balance of $128.0 million on its revolving credit facility. Operational Highlights Throughput volumes increased 8% for gas processing, 7% for oil terminaling and 9% for water gathering in the first quarter of 2025 compared with the first quarter of 2024, primarily due to higher Hess and third-party production. Capital Expenditures Capital expenditures for the first quarter of 2025 totaled $50.1 million compared with $35.2 million in the prior-year quarter, primarily due to continued expansion of Hess Midstream's gas compression and related pipeline infrastructure. Quarterly Cash Distributions On April 28, 2025, the Board of Directors of Hess Midstream's General Partner declared a quarterly cash distribution of $0.7098 per Class A share for the first quarter of 2025, an increase of $0.0086 per Class A share as compared with the fourth quarter of 2024, consistent with the company's target of at least 5% growth in annual distributions per Class A share through 2027. The distribution is expected to be paid on May 14, 2025, to shareholders of record as of the close of business on May 8, 2025. Guidance Hess Midstream continues to target at least 5% annual distribution growth per Class A share through 2027 and continues to prioritize financial strength with a long-term leverage target of 3x Adjusted EBITDA. For 2026 and 2027, Hess Midstream continues to expect organic throughput volume growth across all systems relative to 2025 volume guidance. Hess Midstream is reaffirming its full year 2025 guidance as follows: Investor Webcast Hess Midstream will review first quarter financial and operating results and other matters on a webcast today at 12:00 p.m. Eastern Time. For details about the event, refer to www.hessmidstream.com. About Hess Midstream Hess Midstream LP is a fee-based, growth-oriented midstream company that owns, operates, develops and acquires a diverse set of midstream assets to provide services to Hess and third-party customers. Hess Midstream owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. More information is available at www.hessmidstream.com. Reconciliation of U.S. GAAP to Non-GAAP Measures In addition to our financial information presented in accordance with U.S. generally accepted accounting principles ("GAAP"), management utilizes certain additional non-GAAP measures to facilitate comparisons of past performance and future periods. We previously reported the non-GAAP measure of "Adjusted EBITDA", which we defined as reported net income (loss) before net interest expense, income tax expense, depreciation and amortization and our proportional share of depreciation of our equity affiliates, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance, such as transaction costs, other income and other non-cash and non-recurring items, if applicable. As this definition varied from other definitions of Adjusted EBITDA, we determined it was appropriate to discontinue reporting Adjusted EBITDA as previously defined. Beginning with the second quarter of 2024, and as presented in this release, "Adjusted EBITDA" is defined as reported net income (loss) before net interest expense, income tax expense, and depreciation and amortization, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance, such as transaction costs, other income and other non-cash and non-recurring items, if applicable. Prior period calculations of Adjusted EBITDA have been recast to conform to the new presentation, as applicable. We define "Adjusted Free Cash Flow" as Adjusted EBITDA less net interest, excluding amortization of deferred financing costs, cash paid for federal and state income taxes, capital expenditures and ongoing contributions to equity investments. We define "Gross Adjusted EBITDA Margin" as the ratio of Adjusted EBITDA to total revenues, less pass-through revenues. We believe that investors' understanding of our performance is enhanced by disclosing these measures as they may assist in assessing our operating performance as compared to other publicly traded companies in the midstream energy industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods, and assessing the ability of our assets to generate sufficient cash flow to make distributions to our shareholders. These measures are not, and should not be viewed as, a substitute for GAAP net income or cash flow from operating activities and should not be considered in isolation. Reconciliations of Adjusted EBITDA, Adjusted Free Cash Flow and Gross Adjusted EBITDA Margin to reported net income (GAAP), net cash provided by operating activities (GAAP) and gross margin (GAAP), are provided below. Hess Midstream is unable to project net cash provided by operating activities with a reasonable degree of accuracy 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 occur. Therefore, Hess Midstream is unable to provide projected net cash provided by operating activities, or the related reconciliation of projected Adjusted Free Cash Flow to projected net cash provided by operating activities without unreasonable effort. Cautionary Note Regarding Forward-looking Information This press release contains "forward-looking statements" within the meaning of U.S. federal securities laws. 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; our industry; our expected revenues; our future profitability; our maintenance or expansion projects; our projected budget and capital expenditures and the impact of such expenditures on our performance; future economic and market conditions in the oil and gas industry; expected timing and completion of Hess' proposed merger with Chevron Corporation ("Chevron"); and our ability to execute future accretive opportunities, including incremental return of capital to shareholders. 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: the ability of Hess and other parties to satisfy their obligations to us, including Hess' ability to meet its drilling and development plans on a timely basis or at all, its ability to deliver its nominated volumes to us, and the operation of joint ventures that we may not control; our ability to generate sufficient cash flow to pay current and expected levels of distributions; reductions in the volumes of crude oil, natural gas, natural gas liquids ("NGLs") and produced water we gather, process, terminal or store; the actual volumes we gather, process, terminal or store for Hess in excess of our MVCs and relative to Hess' nominations; fluctuations in the prices and demand for crude oil, natural gas and NGLs; changes in global economic conditions and the effects of a global economic downturn or inflation on our business and the business of our suppliers, customers, business partners and lenders; our ability to comply with government regulations or make capital expenditures required to maintain compliance, including our ability to obtain or maintain permits necessary for capital projects in a timely manner, if at all, or the revocation or modification of existing permits; our ability to successfully identify, evaluate and timely execute our capital projects, investment opportunities and growth strategies, whether through organic growth or acquisitions; costs or liabilities associated with federal, state and local laws, regulations and governmental actions applicable to our business, including legislation and regulatory initiatives relating to environmental protection and health and safety, such as spills, releases, pipeline integrity and measures to limit greenhouse gas emissions and climate change; our ability to comply with the terms of our credit facility, indebtedness and other financing arrangements, which, if accelerated, we may not be able to repay; reduced demand for our midstream services, including the impact of weather or the availability of the competing third-party midstream gathering, processing and transportation operations; potential disruption or interruption of our business due to catastrophic events, such as accidents, severe weather events, labor disputes, information technology failures, constraints or disruptions and cyber-attacks; any limitations on our ability to access debt or capital markets on terms that we deem acceptable, including as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation; risks and uncertainties associated with Hess' proposed merger with Chevron; 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. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20250430749909/en/ back
Equinor ASA: Key information relating to cash dividend for first quarter 2025
Equinor ASA: Key information relating to cash dividend for first quarter 2025 Key information relating to the cash dividend to be paid by Equinor (OSE: EQNR, NYSE:EQNR) for first quarter 2025. Cash dividend amount: 0.37 Announced currency: USD Last day including rights: 15 August 2025 Ex-date Oslo Børs : 18 August 2025 Ex-date New York Stock Exchange: 19 August 2025 Record date: 19 August 2025 Payment date: 29 August 2025 Date of approval: 29 April 2025 Other information: The cash dividend per share in NOK will be communicated 25 August 2025. This information is published in accordance with the requirements of the Continuing Obligations and is subject to the disclosure requirements pursuant to Section 5-12 in the Norwegian Securities Trading Act.
Delek US Holdings, Inc. Announces Quarterly Dividend
Delek US Holdings, Inc. Announces Quarterly Dividend BRENTWOOD, Tenn., Apr. 29 /BusinessWire/ -- Delek US Holdings, Inc. (NYSE:DK) ("Delek") today announced that its Board of Directors has approved a quarterly dividend of $0.255 per share, to be paid on May 19, 2025, to shareholders as of record on May 12, 2025. About Delek US Holdings, Inc. Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, and renewable fuels. The refining assets consist primarily of refineries operated in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a combined nameplate crude throughput capacity of 302,000 barrels per day. The logistics operations include Delek Logistics Partners, LP (NYSE:DKL). Delek Logistics Partners, LP is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets. Delek US Holdings, Inc. and its subsidiaries owned approximately 63.4% (including the general partner interest) of Delek Logistics Partners, LP as of March 31, 2025. Information about Delek US Holdings, Inc. can be found on its website (www.delekus.com), investor relations webpage (ir.delekus.com), and news webpage (www.delekus.com/news). Safe Harbor Provisions Regarding Forward-Looking Statements This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning estimates, expectations or projections about future dividends, results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are "forward-looking statements," within the meaning of federal securities laws. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time and/or management's good faith belief with respect to future events, and investors are cautioned that risks described in the Company's filings with the United States Securities and Exchange Commission, among others, could cause actual performance or results to differ materially from those expressed in the statements. There can be no assurance that actual results will not differ from those expected by management or described in forward-looking statements. The Company undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur or that the Company becomes aware of after the date hereof, except as required by applicable law or regulation. View source version on businesswire.com: https://www.businesswire.com/news/home/20250429333635/en/ back
Archrock Announces Timing for First Quarter 2025 Results
Archrock Announces Timing for First Quarter 2025 Results HOUSTON, April 29, 2025 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE:AROC) ("Archrock") will host a conference call on Tuesday, May 6, 2025, to discuss its first quarter 2025 financial and operating results. The call will begin at 10:30 a.m. Eastern Time. Archrock will release its first quarter 2025 earnings report prior to the conference call. To listen to the call via a live webcast, please visit Archrock's website at www.archrock.com. The call will also be available by dialing 1 (800) 715-9871 in the United States, or 1 (646) 307-1963 for international calls. The access code is 4749623. A replay of the webcast will be available for 90 days on Archrock's website shortly after the call. About Archrock Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how the Company embodies its purpose, WE POWER A CLEANER AMERICA, visit www.archrock.com. SOURCE: Archrock, Inc. For information, contact: Megan RepineVice President, Investor Relations(281) 836-8360investor.relations@archrock.com
ONEOK Announces Higher First Quarter 2025 Earnings; Affirms 2025 Financial Guidance
ONEOK Announces Higher First Quarter 2025 Earnings; Affirms 2025 Financial Guidance Higher Year-Over-Year Rocky Mountain Region Volumes TULSA, Okla., April 29, 2025 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced higher first quarter 2025 results and affirmed full-year 2025 financial guidance. Higher First Quarter 2025 Results, Compared With First Quarter 2024: Net income of $691 million (includes noncontrolling interests).Net income attributable to ONEOK of $636 million, resulting in $1.04 per diluted share.Adjusted EBITDA of $1.78 billion (includes $31 million of transaction costs).15% increase in Rocky Mountain region NGL raw feed throughput volumes.7% increase in Rocky Mountain region natural gas volumes processed."ONEOK's solid first quarter results highlight the strength of our integrated system, disciplined growth strategy and dedicated employees," said Pierce H. Norton II, ONEOK president and chief executive officer. "Higher year-over-year volumes in the Rocky Mountain region, along with contributions from recent strategic acquisitions and growth initiatives, drove performance during the quarter," added Norton. "We expect continued execution on acquisition-related synergies, the completion of organic growth projects and the demand for our services to support growth throughout 2025, creating additional shareholder value." FIRST QUARTER 2025 FINANCIAL HIGHLIGHTS Three Months Ended March 31, 2025 2024 (Millions of dollars, except pershare amounts) Net income (a) $ 691 $ 639 Net income attributable to ONEOK (a) $ 636 $ 639 Diluted earnings per common share (a) $ 1.04 $ 1.09 Adjusted EBITDA (b) $ 1,775 $ 1,441 Operating income (a) $ 1,220 $ 1,064 Operating costs $ 752 $ 569 Depreciation and amortization $ 380 $ 254 Equity in net earnings from investments $ 108 $ 76 Maintenance capital $ 74 $ 74 Capital expenditures (includes maintenance) $ 629 $ 512 (a) Amounts for the three months ended March 31, 2025, include $42 million of transaction costs, related primarily to theEnLink acquisition, resulting in a net impact of 5 cents per diluted share after tax. (b) Amounts for the three months ended March 31, 2025, include $31 million of transaction costs related primarily to theEnLink acquisition. Transaction costs of $11 million were noncash and not included in adjusted EBITDA. Adjusted earningsbefore interest, taxes, depreciation and amortization (adjusted EBITDA) is a non-GAAP measure. HIGHLIGHTS: On Jan. 31, 2025, ONEOK completed the acquisition of EnLink Midstream (EnLink).In February 2025, ONEOK announced joint ventures to construct a 400,000-barrel per day (bpd) liquified petroleum gas (LPG) export terminal in Texas City, Texas, and a pipeline connecting ONEOK's Mont Belvieu storage facility to the new terminal.In March 2025, ONEOK repaid $250 million of 3.2% senior notes at maturity with cash on hand.In March 2025, ONEOK repurchased 190,000 shares of common stock for $17.4 million under its $2 billion share repurchase program, bringing total repurchases under the program to 1.865 million shares for $189 million since its inception in January 2024.In April 2025, ONEOK declared a quarterly dividend of $1.03 per share, or $4.12 per share annualized.As of March 31, 2025:No borrowings outstanding under ONEOK's $3.5 billion credit agreement.$141 million of cash and cash equivalents.FIRST QUARTER 2025 FINANCIAL PERFORMANCE ONEOK reported first quarter 2025 net income attributable to ONEOK and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) of $636 million and $1.78 billion, respectively. Results were driven primarily by a full quarter of adjusted EBITDA from EnLink and Medallion, and higher natural gas liquids (NGL) and natural gas processing volumes in the Rocky Mountain region. Results were partially offset by increased operating costs due primarily to higher employee-related costs from the growth of ONEOK's operations, and no earnings in 2025 from assets divested in 2024. Additionally, first quarter 2025 adjusted EBITDA included $31 million of transaction costs related primarily to the EnLink acquisition. BUSINESS SEGMENT RESULTS: Natural Gas Liquids Segment Three Months Ended March 31, Natural Gas Liquids Segment 2025 2024 (Millions of dollars) Adjusted EBITDA $ 635 $ 588 Capital expenditures $ 171 $ 253 The increase in first quarter 2025 adjusted EBITDA, compared with first quarter 2024, primarily reflects: A $64 million increase due to adjusted EBITDA from EnLink; andAn $11 million increase in adjusted EBITDA from unconsolidated affiliates due primarily to higher volumes delivered to the Overland Pass Pipeline; offset byA $15 million decrease in optimization and marketing due primarily to lower earnings on sales of purity NGLs held in inventory; andA $13 million increase in operating costs due primarily to higher employee-related costs from the growth of ONEOK's operations.Refined Products and Crude Segment Three Months Ended March 31, Refined Products and Crude Segment 2025 2024 (Millions of dollars) Adjusted EBITDA $ 471 $ 381 Capital expenditures $ 141 $ 42 The increase in first quarter 2025 adjusted EBITDA, compared with first quarter 2024, primarily reflects: A $92 million increase due to adjusted EBITDA from Medallion and EnLink;A $13 million increase in adjusted EBITDA from unconsolidated affiliates due primarily to higher BridgeTex earnings and higher Saddlehorn earnings due to ONEOK's 10% ownership interest increase in March 2024; andA $13 million decrease in operating costs due primarily to lower outside services; offset byA $27 million decrease in optimization and marketing due primarily to lower liquids blending differentials.Natural Gas Gathering and Processing Segment Three Months Ended March 31, Natural Gas Gathering and Processing Segment 2025 2024 (Millions of dollars) Adjusted EBITDA $ 491 $ 306 Capital expenditures $ 241 $ 116 The increase in first quarter 2025 adjusted EBITDA, compared with first quarter 2024, primarily reflects: A $213 million increase due to adjusted EBITDA from EnLink; andA $16 million increase from higher volumes due primarily to increased production and the impact of winter weather in the Rocky Mountain region in 2024; offset byA $19 million decrease due primarily to lower realized NGL prices, net of hedging, and lower average fee rates; offset partially by higher realized natural gas and condensate prices, net of hedging;A $16 million increase in operating costs due primarily to higher employee-related costs and accruals for methane fees in 2025; andA $6 million decrease from the divestiture of certain non-strategic assets in 2024.Natural Gas Pipelines Segment Three Months Ended March 31, Natural Gas Pipelines Segment 2025 2024 (Millions of dollars) Adjusted EBITDA $ 212 $ 165 Capital expenditures $ 62 $ 79 The increase in first quarter 2025 adjusted EBITDA, compared with first quarter 2024, primarily reflects: An $80 million increase due to adjusted EBITDA from EnLink; offset byA $32 million decrease due to the interstate natural gas pipeline divestiture.EARNINGS CONFERENCE CALL AND WEBCAST: Members of ONEOK's management team will participate in a conference call at 11 a.m. Eastern (10 a.m. Central) on April 30, 2025. The call will also be webcast. To participate in the conference call, dial 877-883-0383, entry number 3676307, or log on to the webcast at www.oneok.com. If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for one year. A recording will be available by phone for seven days. The playback call may be accessed at 877-344-7529, access code 1067147. LINK TO EARNINGS TABLES AND PRESENTATION: https://ir.oneok.com/financial-information/financial-reports NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES: ONEOK has disclosed in this news release adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), a non-GAAP financial metric used to measure the company's financial performance. Adjusted EBITDA is defined as net income adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes, noncash compensation expense, and other noncash items; and includes adjusted EBITDA from the company's unconsolidated affiliates using the same recognition and measurement methods used to record equity in net earnings from investments. Adjusted EBITDA from unconsolidated affiliates is calculated consistently with the definition above and excludes items such as interest expense, depreciation and amortization, income taxes and other noncash items. Adjusted EBITDA is useful to investors because it and similar measures are used by many companies in the industry as a measure of financial performance and is commonly employed by financial analysts and others to evaluate ONEOK's financial performance and to compare the company's financial performance with the performance of other companies within the industry. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP. This non-GAAP financial measure excludes some, but not all, items that affect net income. Additionally, this calculation may not be comparable with similarly titled measures of other companies. A reconciliation of net income to adjusted EBITDA is included in the tables. At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation, storage and marine export services. Through our approximately 60,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude oil that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest integrated energy infrastructure companies in North America, ONEOK is delivering energy that makes a difference in the lives of people in the U.S. and around the world. ONEOK is an S&P 500 company headquartered in Tulsa, Oklahoma. For information about ONEOK, visit the website: www.oneok.com. For the latest news about ONEOK, find us on LinkedIn, Facebook, X and Instagram. This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plans," "potential," "projects," "scheduled," "should," "target," "will," "would," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following: the impact on drilling and production by factors beyond our control, including the demand for natural gas, NGLs, Refined Products and crude oil; producers' desire and ability to drill and obtain necessary permits; regulatory compliance; reserve performance; and capacity constraints and/or shut downs on the pipelines that transport crude oil, natural gas, NGLs, and Refined Products from producing areas and our facilities;the impact of unfavorable economic and market conditions, inflationary pressures, which may increase our capital expenditures and operating costs, raise the cost of capital or depress economic growth;the impact of the volatility of natural gas, NGL, Refined Products and crude oil prices on our earnings and cash flows, which is impacted by a variety of factors beyond our control, including international terrorism and conflicts and geopolitical instability;the impact of reduced volatility in energy prices or new government regulations that could discourage our storage customers from holding positions in Refined Products, crude oil and natural gas;the economic or other impact of announced or future tariffs;our dependence on producers, gathering systems, refineries and pipelines owned and operated by others and the impact of any closures, interruptions or reduced activity levels at these facilities;the impact of increased attention to ESG issues, including climate change, and risks associated with the physical and financial impacts of climate change;risks associated with operational hazards and unforeseen interruptions at our operations;the inability of insurance proceeds to cover all liabilities or incurred costs and losses, or lost earnings, resulting from a loss;the risk of increased costs for insurance premiums or less favorable coverage;demand for our services and products in the proximity of our facilities;risks associated with our ability to hedge against commodity price risks or interest rate risks;a breach of information security, including a cybersecurity attack, or failure of one or more key information technology or operational systems, and terrorist attacks, including cyber sabotage;exposure to construction risk and supply risks if adequate natural gas, NGL, Refined Products and crude oil supply is unavailable upon completion of facilities;the accuracy of estimates of hydrocarbon reserves, which could result in lower than anticipated volumes;our lack of ownership over all of the land on which our property is located and certain of our facilities and equipment;the impact of changes in estimation, type of commodity and other factors on our measurement adjustments;excess capacity on our pipelines, processing, fractionation, terminal and storage assets;risks associated with the period of time our assets have been in service;our partial reliance on cash distributions from our unconsolidated affiliates on our operating cash flows;our ability to cause our joint ventures to take or not take certain actions unless some or all of our joint-venture participants agree;our reliance on others to operate certain joint-venture assets and to provide other services;our ability to use net operating losses and certain tax attributes;increased regulation of exploration and production activities, including hydraulic fracturing, well setbacks and disposal of wastewater;impacts of regulatory oversight and potential penalties on our business;risks associated with the rate regulation, challenges or changes, which may reduce the amount of cash we generate;the impact of our gas liquids blending activities, which subject us to federal regulations that govern renewable fuel requirements in the U.S.;incurrence of significant costs to comply with the regulation of greenhouse gas emissions;the impact of federal and state laws and regulations relating to the protection of the environment, public health and safety on our operations, as well as increased litigation and activism challenging oil and gas development as well as changes to and/or increased penalties from the enforcement of laws, regulations and policies;the impact of unforeseen changes in interest rates, debt and equity markets and other external factors over which we have no control;actions by rating agencies concerning our credit;our indebtedness and guarantee obligations could cause adverse consequences, including making us vulnerable to general adverse economic and industry conditions, limiting our ability to borrow additional funds and placing us at competitive disadvantages compared with our competitors that have less debt;an event of default may require us to offer to repurchase certain of our or ONEOK Partners' senior notes or may impair our ability to access capital;the right to receive payments on our outstanding debt securities and subsidiary guarantees is unsecured and effectively subordinated to any future secured indebtedness and any existing and future indebtedness of our subsidiaries that do not guarantee the senior notes;use by a court of fraudulent conveyance to avoid or subordinate the cross guarantees of our or ONEOK Partners' indebtedness;the risks associated with pending or possible acquisitions and dispositions, including our ability to finance or integrate any such acquisitions and any regulatory delay or conditions imposed by regulatory bodies in connection with any such acquisitions and dispositions;the risk that the EnLink and Medallion businesses will not be integrated successfully;our ability to effectively manage our expanded operations following closing of recent acquisitions;our ability to pay dividends;our exposure to the credit risk of our customers or counterparties;a shortage of skilled labor;misconduct or other improper activities engaged in by our employees;the impact of potential impairment charges;the impact of the changing cost of providing pension and health care benefits, including postretirement health care benefits, to eligible employees and qualified retirees;our ability to maintain an effective system of internal controls; andthe risk factors listed in the reports we have filed and may file with the SEC.Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Other than as required under securities laws, ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov. Analyst Contact: Megan Patterson 918-561-5325 Media Contact: Brad Borror 918-588-7582 View original content to download multimedia:https://www.prnewswire.com/news-releases/oneok-announces-higher-first-quarter-2025-earnings-affirms-2025-financial-guidance-302441763.html SOURCE ONEOK, Inc.
Nabors Announces First Quarter 2025 Results
Nabors Announces First Quarter 2025 Results HAMILTON, Bermuda, April 29, 2025 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported first quarter 2025 operating revenues of $736 million, compared to operating revenues of $730 million in the fourth quarter of 2024. Net income attributable to Nabors shareholders for the quarter was $33 million, compared to a net loss of $54 million in the fourth quarter. This equates to earnings per diluted share of $2.18, compared to a loss per diluted share of $6.67 in the fourth quarter. The first quarter included a one-time, non-cash net gain on the Parker transaction of $113.0 million, or $9.68 per diluted share. This gain was partially offset by non-cash charges related to the wind-down of operations in Russia totaling $28.6 million, or $2.45 per diluted share, and by expenses related to the Parker acquisition. First-quarter adjusted EBITDA was $206 million, compared to $221 million in the previous quarter. Highlights In March, Nabors completed the acquisition of Parker Wellbore, strengthening its portfolio with complementary businesses. This transaction adds Quail Tools, the leading tubular rental franchise in the U.S., along with the largest casing running contractor in Saudi Arabia and the United Arab Emirates, and a fleet of ten drilling rigs in several international markets and Alaska. This acquisition is expected to be immediately accretive to Nabors' 2025 free cash flow and to improve leverage metrics.In the first quarter, the SANAD joint venture deployed its tenth newbuild rig. The eleventh commenced in April, and the twelfth is expected to start later in the second quarter. Two additional rigs are planned for startup in the second half of 2025. As these rigs come online, they should make a material contribution to SANAD's adjusted EBITDA while supporting their customer's program to maintain production capacity and develop its natural gas resources.Nabors and Corva AI expanded their existing strategic alliance, extending their collaboration into Nabors' RigCLOUD® platform. The resulting solution combines Nabors' edge and cloud computing platform with Corva's AI-driven analytics, enhancing real-time data processing, predictive insights, and performance, improving decision-making and maximizing efficiency.In the month of March, the Company suspended activity on its three rigs in Russia in response to the recently expanded sanctions. Nabors does not expect activity in this market to resume in the near term. Financial performance in this market had become increasingly marginal.Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "With the acquisition of Parker completed, we are already realizing the benefits we anticipated. Parker's operations contributed to our first quarter. We commenced our well-planned integration, and the early achievements are encouraging. "Our first quarter results reflect improving performance in certain international markets, as well as challenges in the U.S. In the U.S. specifically, rig churn placed pressure on rig utilization and operating expenses. More recently, we are encouraged by our success adding rigs in the Lower 48 after our rig count troughed in February. However, in view of the current activity level we have responded with actions to improve efficiency and align our cost structure. "Daily adjusted gross margin in the International Drilling business was $17,421, an improvement of more than $700 per day. This expansion was driven by higher margins in most of our international geographies. Our international drilling activity was essentially flat, as two rig startups in Saudi Arabia offset the impact of the suspension of our Russia operations and lower activity in Colombia. Looking ahead over the balance of 2025, we have a number of startups planned, in Saudi Arabia, Kuwait, Argentina, Mexico, and India. These offset the completion of some drilling programs in the Eastern Hemisphere. "SANAD, our 50/50 joint venture with Saudi Aramco, began operating its tenth newbuild rig during the first quarter, and the eleventh early in the second quarter. Another three are scheduled to commence operations during the balance of 2025. SANAD, with its newbuild program totaling 50 rigs over 10 years, is growing rapidly and provides a source of significant value to Nabors and our shareholders." Segment Results International Drilling adjusted EBITDA totaled $115.5 million, compared to $112.0 million in the fourth quarter of 2024. Average rig count was essentially in line with activity expectations. Daily adjusted gross margin for the first quarter averaged $17,421, reflecting additional newbuild rigs in Saudi Arabia and improved operating performance in several geographies. The U.S. Drilling segment reported first quarter adjusted EBITDA of $92.7 million, compared to $105.8 million in the fourth quarter. This decrease was driven by reduced rig count in the Lower 48 and somewhat higher operational expenses. Nabors' first quarter Lower 48 rig count averaged 61, versus 66 in the fourth quarter. Lower 48 daily margins averaged $14,276 in the first quarter, as compared to $14,940 in the previous quarter. Operating inefficiencies from elevated rig churn primarily led to this change. Drilling Solutions, or NDS, adjusted EBITDA was $40.9 million. The addition of the Parker operations contributed $9.6 million in the first quarter. The decline in Nabors' Lower 48 rig count in the quarter impacted NDS results. This segment's gross margin remained strong, at 53%. Rig Technologies adjusted EBITDA was $5.6 million. Lower capital equipment deliveries in the Middle East and decreased OEM aftermarket volumes contributed to a sequential decline in adjusted EBITDA. Adjusted Free Cash Flow In the first quarter, consolidated adjusted free cash flow was a use of $71 million. Nabors legacy business, excluding the impact from Parker, consumed $61 million in adjusted free cash flow. The first quarter normally includes higher payments, mainly annual bonuses, property taxes and interest expenses. In addition, the first quarter for the Nabors legacy business included approximately $14 million in severance and other costs mainly related to the Parker transaction. On a positive note, Nabors collected approximately $20 million from its main customer in Mexico. The Company had targeted another $20 million in collections that dropped out of the first quarter. Nabors is working on further material payments with its customer, which it expects to collect during the second quarter. Parker consumed $10 million in adjusted free cash flow, including capital expenditures of $6 million, $5 million in accrued interest on the Parker term loan, which was retired at the end of the first quarter, and a small amount of transaction-related expenses. William Restrepo, Nabors CFO, stated, "The addition of Parker marks a significant milestone for Nabors, materially expanding our Drilling Solutions business and adding significant cash generation to our combined company. With a full quarter of Parker, we expect NDS results in the second quarter to account for approximately 25% of adjusted EBITDA from consolidated operations. The Parker business is forecast to add material free cash flow. In addition to $130 million in incremental adjusted EBITDA for 2025 post-closing, we are on track to realize $40 million of cost synergies. Parker capital expenditures post-closing are targeted at $60 million for 2025. "Nabors adjusted free cash flow for the quarter was impacted by several factors as compared to our forecast. Capital expenses were $70 million below target mainly on delayed milestones for SANAD's newbuild rigs that shifted into the second quarter. Additionally, collections were $30 million below our expectations. Payments related to our Parker transaction were approximately $14 million. "As a result of the ongoing uncertainty with the increased U.S. tariffs, we have quantified the potential impact of these changes on our future free cash flow. We estimate the total amount would land between $10 million and $20 million on a full-year basis. We also believe that some of this impact would be offset by commercial negotiations with our customers. "We are targeting a substantial improvement in free cash flow generation over the remaining three quarters of the year, driven by continued progress in our international drilling profitability, some recovery in our Lower 48 rig count and Parker's incremental contribution including material synergy capture." Outlook Nabors expects the following metrics for the second quarter of 2025, which reflect a full quarter from Parker Wellbore operations: U.S. Drilling Lower 48 average rig count of 63 - 64 rigsLower 48 daily adjusted gross margin of approximately $14,100Alaska and Gulf of Mexico combined adjusted EBITDA of approximately $26 millionInternational Average rig count of 85 - 86 rigs, including two rigs from ParkerDaily adjusted gross margin of approximately $17,700Drilling Solutions Adjusted EBITDA of approximately $75 million, including an approximate $43 million contribution from ParkerRig Technologies Adjusted EBITDA approximately in line with the first quarterCapital Expenditures Capital expenditures of $220 - $230 million, including $35 million for the Parker operations and $100 - $105 million for the newbuilds in Saudi ArabiaFull-year capital expenditures of approximately $770 - $780 million, with $360 million for the SANAD newbuilds and $60 million for ParkerAdjusted Free Cash Flow Adjusted free cash flow for 2025 of approximately $80 million (excluding any impact from tariffs), with SANAD consuming approximately $150 million, while the remaining operations including Parker should generate around $230 millionMr. Petrello concluded, "Our business and geographic diversity, and our industry-leading technology, will help us navigate this current environment. We expect the Parker business to make an immediate positive impact to our position. "The investments we have made in our international business should generate meaningful returns, as we deploy a significant number of rigs over the next several quarters. In particular, SANAD is on track to operate 15 newbuild rigs by early 2026, with additional newbuilds already under discussion. The outlook for this program, and SANAD in total, is for considerable free cash generation, which should lead to material value creation for our shareholders." About Nabors Industries Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With presence in more than 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible 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 energy technology leadership: www.nabors.com. Forward-looking Statements The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements. Non-GAAP Disclaimer This press release presents certain "non-GAAP" financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, investment income (loss), gain on bargain purchase, and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments. Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Management believes that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies. Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including Adjusted EBITDA, adjusted operating income (loss), net debt, and adjusted free cash flow, because it believes that these financial measures accurately reflect the Company's ongoing profitability, performance and liquidity. Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes, net debt to total debt, and adjusted free cash flow to net cash provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. We do not provide a forward-looking reconciliation of our outlook for Segment Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash Flow, as the amount and significance of items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful. Investor Contacts: William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, +1 281-775-2423 or via e-mail william.conroy@nabors.com, or Kara K. Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954 or via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail mark.andrews@nabors.com NABORS INDUSTRIES LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) Three Months Ended March 31, December 31, (In thousands, except per share amounts) 2025 2024 2024 Revenues and other income: Operating revenues $ 736,186 $ 733,704 $ 729,819 Investment income (loss) 6,596 10,201 8,828 Total revenues and other income 742,782 743,905 738,647 Costs and other deductions: Direct costs 447,300 437,077 433,404 General and administrative expenses 68,506 61,751 61,436 Research and engineering 14,035 13,863 14,434 Depreciation and amortization 154,638 157,685 156,348 Interest expense 54,326 50,379 53,642 Gain on bargain purchase (112,999) - - Other, net 44,790 16,108 37,021 Total costs and other deductions 670,596 736,863 756,285 Income (loss) before income taxes 72,186 7,042 (17,638) Income tax expense (benefit) 15,007 16,044 15,231 Net income (loss) 57,179 (9,002) (32,869) Less: Net (income) loss attributable to noncontrolling interest (24,191) (25,331) (20,802) Net income (loss) attributable to Nabors $ 32,988 $ (34,333) $ (53,671) Earnings (losses) per share: Basic $ 2.35 $ (4.54) $ (6.67) Diluted $ 2.18 $ (4.54) $ (6.67) Weighted-average number of common shares outstanding: Basic 10,460 9,176 9,213 Diluted 11,671 9,176 9,213 Adjusted EBITDA $ 206,345 $ 221,013 $ 220,545 Adjusted operating income (loss) $ 51,707 $ 63,328 $ 64,197 NABORS INDUSTRIES LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, December 31, (In thousands) 2025 2024 ASSETS Current assets: Cash and short-term investments $ 404,109 $ 397,299 Accounts receivable, net 549,626 387,970 Other current assets 245,083 214,268 Total current assets 1,198,818 999,537 Property, plant and equipment, net 3,074,789 2,830,957 Other long-term assets 776,077 673,807 Total assets $ 5,049,684 $ 4,504,301 LIABILITIES AND EQUITY Current liabilities: Trade accounts payable $ 375,440 $ 321,030 Other current liabilities 292,205 250,887 Total current liabilities 667,645 571,917 Long-term debt 2,685,169 2,505,217 Other long-term liabilities 251,493 220,829 Total liabilities 3,604,307 3,297,963 Redeemable noncontrolling interest in subsidiary 795,643 785,091 Equity: Shareholders' equity 342,660 134,996 Noncontrolling interest 307,074 286,251 Total equity 649,734 421,247 Total liabilities and equity $ 5,049,684 $ 4,504,301 NABORS INDUSTRIES LTD. AND SUBSIDIARIES SEGMENT REPORTING (Unaudited) The following tables set forth certain information with respect to our reportable segments and rig activity: Three Months Ended March 31, December 31, (In thousands, except rig activity) 2025 2024 2024 Operating revenues: U.S. Drilling $ 230,746 $ 271,989 $ 241,637 International Drilling 381,718 349,359 371,406 Drilling Solutions 93,179 75,574 75,992 Rig Technologies (1) 44,165 50,156 56,166 Other reconciling items (2) (13,622) (13,374) (15,382) Total operating revenues $ 736,186 $ 733,704 $ 729,819 Adjusted EBITDA: (3) U.S. Drilling $ 92,711 $ 120,403 $ 105,757 International Drilling 115,486 102,498 111,962 Drilling Solutions 40,853 31,787 33,809 Rig Technologies (1) 5,563 6,801 9,208 Other reconciling items (4) (48,268) (40,476) (40,191) Total adjusted EBITDA $ 206,345 $ 221,013 $ 220,545 Adjusted operating income (loss): (5) U.S. Drilling $ 31,599 $ 50,529 $ 38,973 International Drilling 32,958 22,476 29,528 Drilling Solutions 32,913 26,893 28,944 Rig Technologies (1) 4,335 4,209 8,413 Other reconciling items (4) (50,098) (40,779) (41,661) Total adjusted operating income (loss) $ 51,707 $ 63,328 $ 64,197 Rig activity: Average Rigs Working: (7) Lower 48 60.6 71.9 65.9 Other US 7.6 6.8 6.8 U.S. Drilling 68.2 78.7 72.7 International Drilling 85.0 81.0 84.8 Total average rigs working 153.2 159.7 157.5 Daily Rig Revenue: (6),(8) Lower 48 $ 34,546 $ 35,468 $ 33,396 Other US 61,361 64,402 62,624 U.S. Drilling (10) 37,557 37,968 36,137 International Drilling 49,895 47,384 47,620 Daily Adjusted Gross Margin: (6),(9) Lower 48 $ 14,276 $ 16,011 $ 14,940 Other US 30,374 35,184 34,707 U.S. Drilling (10) 16,084 17,667 16,793 International Drilling 17,421 16,061 16,687 (1) Includes our oilfield equipment manufacturing activities. (2) Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment. (3) Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)". (4) Represents the elimination of inter-segment transactions and unallocated corporate expenses. (5) Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on bargain purchase and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)". (6) Rig revenue days represents the number of days the Company's rigs are contracted and performing under a contract during the period. These would typically include days in which operating, standby and move revenue is earned. (7) Average rigs working represents a measure of the average number of rigs operating during a given period. For example, one rig operating 45 days during a quarter represents approximately 0.5 average rigs working for the quarter. On an annual period, one rig operating 182.5 days represents approximately 0.5 average rigs working for the year. Average rigs working can also be calculated as rig revenue days during the period divided by the number of calendar days in the period. (8) Daily rig revenue represents operating revenue, divided by the total number of revenue days during the quarter. (9) Daily adjusted gross margin represents operating revenue less direct costs, divided by the total number of rig revenue days during the quarter. (10) The U.S. Drilling segment includes the Lower 48, Alaska, and Gulf of Mexico operating areas. NABORS INDUSTRIES LTD. AND SUBSIDIARIES Reconciliation of Earnings per Share (Unaudited) Three Months Ended March 31, December 31, (in thousands, except per share amounts) 2025 2024 2024 BASIC EPS: Net income (loss) (numerator): Income (loss), net of tax $ 57,179 $ (9,002) $ (32,869) Less: net (income) loss attributable to noncontrolling interest (24,191) (25,331) (20,802) Less: distributed and undistributed earnings allocated to unvested shareholders (1,177) - - Less: accrued distribution on redeemable noncontrolling interest in subsidiary (7,184) (7,283) (7,794) Numerator for basic earnings per share: Adjusted income (loss), net of tax - basic $ 24,627 $ (41,616) $ (61,465) Weighted-average number of shares outstanding - basic 10,460 9,176 9,213 Earnings (losses) per share: Total Basic $ 2.35 $ (4.54) $ (6.67) DILUTED EPS: Adjusted income (loss), net of tax - basic $ 24,627 $ (41,616) $ (61,465) Add: after tax interest expense of convertible notes 848 - - Add: effect of reallocating undistributed earnings of unvested shareholders 3 - - Adjusted income (loss), net of tax - diluted $ 25,478 $ (41,616) $ (61,465) Weighted-average number of shares outstanding - basic 10,460 9,176 9,213 Add: if converted dilutive effect of convertible notes 1,176 - - Add: dilutive effect of potential common shares 35 - - Weighted-average number of shares outstanding - diluted 11,671 9,176 9,213 Earnings (losses) per share: Total Diluted $ 2.18 $ (4.54) $ (6.67) NABORS INDUSTRIES LTD. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT (Unaudited) (In thousands) Three Months Ended March 31, 2025 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) $ 31,599 $ 32,958 $ 32,913 $ 4,335 $ (50,098) $ 51,707 Depreciation and amortization 61,112 82,528 7,940 1,228 1,830 154,638 Adjusted EBITDA $ 92,711 $ 115,486 $ 40,853 $ 5,563 $ (48,268) $ 206,345 Three Months Ended March 31, 2024 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) $ 50,529 $ 22,476 $ 26,893 $ 4,209 $ (40,779) $ 63,328 Depreciation and amortization 69,874 80,022 4,894 2,592 303 157,685 Adjusted EBITDA $ 120,403 $ 102,498 $ 31,787 $ 6,801 $ (40,476) $ 221,013 Three Months Ended December 31, 2024 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) $ 38,973 $ 29,528 $ 28,944 $ 8,413 $ (41,661) $ 64,197 Depreciation and amortization 66,784 82,434 4,865 795 1,470 156,348 Adjusted EBITDA $ 105,757 $ 111,962 $ 33,809 $ 9,208 $ (40,191) $ 220,545 NABORS INDUSTRIES LTD. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES RECONCILIATION OF ADJUSTED GROSS MARGIN BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT (Unaudited) Three Months Ended March 31, December 31, (In thousands) 2025 2024 2024 Lower 48 - U.S. Drilling Adjusted operating income (loss) $ 18,995 $ 39,264 $ 27,354 Plus: General and administrative costs 4,817 4,823 5,156 Plus: Research and engineering 823 964 1,002 GAAP Gross Margin 24,635 45,051 33,512 Plus: Depreciation and amortization 53,225 59,733 57,019 Adjusted gross margin $ 77,860 $ 104,784 $ 90,531 Other - U.S. Drilling Adjusted operating income (loss) $ 12,604 $ 11,265 $ 11,619 Plus: General and administrative costs 405 326 305 Plus: Research and engineering 62 47 72 GAAP Gross Margin 13,071 11,638 11,996 Plus: Depreciation and amortization 7,887 10,141 9,765 Adjusted gross margin $ 20,958 $ 21,779 $ 21,761 U.S. Drilling Adjusted operating income (loss) $ 31,599 $ 50,529 $ 38,973 Plus: General and administrative costs 5,222 5,149 5,461 Plus: Research and engineering 885 1,011 1,074 GAAP Gross Margin 37,706 56,689 45,508 Plus: Depreciation and amortization 61,112 69,874 66,784 Adjusted gross margin $ 98,818 $ 126,563 $ 112,292 International Drilling Adjusted operating income (loss) $ 32,958 $ 22,476 $ 29,528 Plus: General and administrative costs 16,378 14,415 16,758 Plus: Research and engineering 1,414 1,508 1,431 GAAP Gross Margin 50,750 38,399 47,717 Plus: Depreciation and amortization 82,528 80,022 82,434 Adjusted gross margin $ 133,278 $ 118,421 $ 130,151 Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization. NABORS INDUSTRIES LTD. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS) (Unaudited) Three Months Ended March 31, December 31, (In thousands) 2025 2024 2024 Net income (loss) $ 57,179 $ (9,002) $ (32,869) Income tax expense (benefit) 15,007 16,044 15,231 Income (loss) from continuing operations before income taxes 72,186 7,042 (17,638) Investment (income) loss (6,596) (10,201) (8,828) Interest expense 54,326 50,379 53,642 Gain on bargain purchase (112,999) - - Other, net 44,790 16,108 37,021 Adjusted operating income (loss) (1) 51,707 63,328 64,197 Depreciation and amortization 154,638 157,685 156,348 Adjusted EBITDA (2) $ 206,345 $ 221,013 $ 220,545 (1) Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on bargain purchase and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. (2) Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. NABORS INDUSTRIES LTD. AND SUBSIDIARIES RECONCILIATION OF NET DEBT TO TOTAL DEBT (Unaudited) March 31, December 31, (In thousands) 2025 2024 Long-term debt $ 2,685,169 $ 2,505,217 Less: Cash and short-term investments 404,109 397,299 Net Debt $ 2,281,060 $ 2,107,918 NABORS INDUSTRIES LTD. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) Three Months Ended March 31, December 31, (In thousands) 2025 2024 2024 Net cash provided by operating activities $ 87,735 $ 107,239 $ 148,919 Add: Capital expenditures, net of proceeds from sales of assets (159,161) (99,125) (202,215) Adjusted free cash flow $ (71,426) $ 8,114 $ (53,296) Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP. View original content:https://www.prnewswire.com/news-releases/nabors-announces-first-quarter-2025-results-302441797.html SOURCE Nabors Industries Ltd.
Ranger Energy Services, Inc. Announces Q1 2025 Results
Ranger Energy Services, Inc. Announces Q1 2025 Results HOUSTON, Apr. 29 /BusinessWire/ -- Ranger Energy Services, Inc. (NYSE:RNGR) ("Ranger" or the "Company") announced today its results for the first quarter ended March 31, 2025. First Quarter 2025 Highlights Revenue of $135.2 million, a 1% decrease from $136.9 million in the first quarter of 2024, and a 6% decrease from $143.1 million in the fourth quarter of 2024 Net income of $0.6 million, or $0.03 per fully diluted share, an increase from a net loss of $0.8 million in the first quarter of 2024, or negative $0.03 per share and a decrease from net income of $5.8 million in the fourth quarter 2024, or $0.25 per fully diluted share Adjusted EBITDA(1) of $15.5 million with 11.4% Adjusted EBITDA margin, representing a 42% increase from $10.9 million in the first quarter of 2024, and a 29% decrease from $21.9 million in the fourth quarter of 2024 Free Cash Flow(2) of $3.4 million, or $0.19 per share, compared to first quarter 2024 Free Cash Flow of $5.5 million or $0.24 per share including dividend payments during the quarter of $1.3 million reflecting our recently increased dividends of $0.06 per share Balance sheet remains in a position of strength with available cash of $40.3 million and $104.4 million of total liquidity at the end of the quarter Management Comments Stuart Bodden, Ranger's Chief Executive Officer, commented, "This quarter reflects the continued strength of our core High Specification Rigs business and the growth trend we have seen in this segment over the past couple of years. Normal seasonality and weather impacts can create a sequentially reduced Q1 from the prior quarter, and our most recent quarter reminds us weather events are impactful. We experienced the rare occurrence of two polar vortex events during January and February along with windstorms that continued into March creating a greater than planned impact to our business. Given these challenges, we were proud to post materially improved EBITDA in the first quarter year over year. Across all of our business units, we continue to position ourselves as a production services company and believe this meaningfully differentiates us from the rest of the oilfield services sector. "Our flagship High Specification Rigs business delivered yet another record revenue quarter with strong operating hours and rates, demonstrating the continued market share gains and resiliency despite the previously described weather related impacts. "In our Ancillary segment, we had several service lines show steady activity. While our coil tubing and plugging and abandonment service lines improved from the prior year, they had more dramatic pullbacks from the fourth quarter due to the unusual weather events and general market sentiment shifts. These challenges are mostly abating with strong March results. "Our Wireline business, which is focused in the north, saw the largest impact from the weather related pullbacks posting EBITDA losses in both January and February and for the quarter as a whole. March wireline financial results did improve to breakeven levels and April revenues indicate a more positive trajectory for the next two quarters." Mr. Bodden continued, "We remain positive about Ranger's prospects and are encouraged by a stronger activity trajectory as we start the second quarter. Ranger benefits from strong relationships with the largest U.S. onshore producers, who tend to have less volatile and more consistent work programs that allow us to plan for our business more effectively. While we recognize concerns about crude price volatility and potential lower energy demand, our blue-chip customer base and production-focused business positions us well for cyclical troughs, and our balance sheet remains strong with zero debt, significant cash and greater than $100 million in liquidity. "Ranger was built on a foundation of through-cycle returns and resiliency, and we are confident in our ability to respond and adjust to market conditions. We enter this period of uncertainty from a position of strength and will continue to take advantage of opportunities to create long-term shareholder value, whether through pursuing further M&A activity or repurchasing of our shares at attractive prices," concluded Mr. Bodden. CAPITAL RETURNS AND GOVERNANCE UPDATE During the quarter, the Company did not repurchase any of the Company's Class A Common Stock on the open market. Since the share repurchase program's inception in 2023 through the end of the first quarter of 2025, the Company has repurchased a total of 3,325,800 shares, for a total value of $34.8 million, net of tax. Today, the Board of Directors declared this quarter's cash dividend of $0.06 per share payable on May 23, 2025 to common stockholders of record at the close of business on May 9, 2025 reinforcing our commitment to a consistent return of capital each and every quarter. PERFORMANCE SUMMARY For the first quarter of 2025, revenue was $135.2 million, a slight decrease from $136.9 million in the prior year period, and a decrease from the fourth quarter of $143.1 million. Quarter over quarter decreases in revenue are attributable to reduced activity in the wireline segment. Cost of services for the first quarter of 2025 was $115.4 million, or 85% of revenue, compared to $120.8 million, or 88% of revenue in the prior year period. The decrease in cost of services as a percentage of revenue from the prior year quarter was primarily attributable to service line mix contribution, operational efficiencies and cost reductions. General and administrative expenses were $7.1 million for the first quarter of 2025, relatively flat with the prior quarter and slightly increased from $6.7 million in the prior year period. Net income totaled $0.6 million for the first quarter of 2025 compared to a net loss of $0.8 million in the prior year period and $5.8 million in the prior quarter. Fully diluted earnings per share was $0.03 for the first quarter of 2025 compared to negative $0.03 in the prior year period and $0.25 in the prior quarter. Adjusted EBITDA of $15.5 million for the first quarter of 2025 increased $4.6 million from $10.9 million in the prior year period, and decreased $6.4 million from $21.9 million in the prior quarter. The year over year increases were driven by stronger revenue and margins in High-Specification Rigs and Processing Solutions and Ancillary Services. Quarter over quarter decreases were driven primarily by losses in the Wireline Services segment. BUSINESS SEGMENT FINANCIAL RESULTS High Specification Rigs High Specification Rigs segment revenue was $87.5 million in the first quarter of 2025, an increase of $7.8 million relative to the prior year period and an increase of $0.5 million relative to the prior quarter revenue of $87.0 million. Rig hours were up to 115,700 from 111,000 in the prior year period and slightly decreased from 115,900 in the prior quarter. Hourly rig rates increased by 3% to $756 from $718 in the prior year period largely due to the addition of incremental rental equipment to rig packages deployed. Hourly rig rates slightly increased by 1% from $751 per hour in the prior quarter, due to asset mix reflecting relatively consistent pricing levels quarter over quarter. Operating income was $12.0 million in the first quarter of 2025, an increase of $4.2 million, or 54% compared to $7.8 million in the prior year period, and a decrease of $1.3 million, or 10% compared to $13.3 million in the prior quarter. Adjusted EBITDA was $17.4 million in the first quarter, up from $13.6 million in the prior year period and down from $19.0 million in the prior quarter. Processing Solutions and Ancillary Services Processing Solutions and Ancillary Services segment revenue was $30.5 million in the first quarter of 2025, down $3.0 million, or 9% from $33.5 million in the prior quarter and up $6.1 million, or 25% from $24.4 million for the prior year period and down $3.0 million, or 9% from $33.5 million in the prior quarter. The increase from the prior year period was largely attributable to increased operational activity in most service lines with the largest contribution coming from the rentals service line. The decrease from the prior quarter was largely attributable to decreased operational activity in our P&A and Coil Tubing service lines. Operating income in this segment was $3.3 million in the first quarter, up from $0.5 million in the prior year period and down from $6.0 million in the prior quarter. Adjusted EBITDA was $5.6 million, up from $2.5 million in the prior year period but down from $8.0 million in the prior quarter. Wireline Services Wireline Services segment revenue was $17.2 million in the first quarter of 2025, down $15.6 million or 48% compared to $32.8 million in the prior year period, and down $5.4 million or 24% compared to $22.6 million in the prior quarter. Our Completions service line reported completed stage counts of 1,400, a decrease of 64% compared to 3,400 in the prior year period and 28% compared to 1,800 for the prior quarter. Operating loss was $5.8 million in the first quarter, down another $2.9 million from an operating loss of $2.9 million in the prior year period and down $2.6 million from an operating loss of $3.2 million in the prior quarter. Adjusted EBITDA was a loss of $2.3 million, further down from $0.2 million in the prior year period and $0.2 million for the prior quarter. BALANCE SHEET, CASH FLOW AND LIQUIDITY As of March 31, 2025, the Company had $104.4 million of liquidity, consisting of $64.1 million of capacity on its revolving credit facility and $40.3 million of cash on hand. This compares to December 31, 2024 when the Company had $112.1 million of liquidity, consisting of $71.2 million of capacity on its revolving credit facility and $40.9 million of cash on hand. Cash provided by Operating Activities for the first quarter of 2025 is $10.6 million, compared to $12.0 million in the same quarter of 2024. The Company's Free Cash Flow(2) of $3.4 million for the first quarter of 2025 compares to Free Cash Flow(2) of $5.5 million in the prior year period primarily due to additional capital expenditures. The Company had capital expenditures of $7.2 million in the first quarter of 2025, compared to $6.5 million in the first quarter of 2024. Part of our investment in capital expenditures to date is around modern technological assets to improve the safety, marketability and margin of our rig fleet. Many of these investments have been implemented in order to strengthen our customer relationships and provide improved returns in future periods. Conference Call The Company will host a conference call to discuss its first quarter 2025 results on Wednesday, April 30, 2025, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). To join the conference call from within the United States, participants may dial 1-833-255-2829, or participants may dial 1-412-902-6710 from outside the United States. To listen via live webcast, please visit the Investor Relations section of the Company's website, www.rangerenergy.com. Participants are encouraged to login to the webcast or dial in to the conference call prior to the start time. An audio replay of the conference call will be available shortly after the conclusion of the call and will remain available for approximately seven days through the Investor Relations section of the Company's website. About Ranger Energy Services, Inc. Ranger is one of the largest providers of high specification mobile rig well services, cased hole wireline services, and ancillary services in the U.S. oil and gas industry. Our services facilitate operations throughout the lifecycle of a well, including the completion, production, maintenance, intervention, workover and abandonment phases. Cautionary Statement Concerning Forward-Looking Statements Certain statements contained in this press release constitute "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 fact included in this press release, regarding our strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words "may," "should," "intend," "could," "believe," "anticipate," "estimate," "expect," "outlook," "project" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements represent Ranger's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Ranger's control. Should one or more of these risks or uncertainties described occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. Our future results will depend upon various other risks and uncertainties, including, but not limited to, those detailed in our current and past filings with the U.S. Securities and Exchange Commission ("SEC"). These documents are available through our website or through the SEC's Electronic Data Gathering and Analysis Retrieval system at www.sec.gov. These risks include, but are not limited to, the risks described under "Part I, Item 1A, Risk Factors" in our Annual Report on 10-K filed with the SEC on March 5, 2024, and those set forth from time-to-time in other filings by the Company with the SEC. All forward looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law any forward-looking statement speaks only as of the date on which is it made. We disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this cautionary statement, to reflect events or circumstances after the date of this press release. Note Regarding Non-GAAP Financial Measure The Company utilizes certain non-GAAP financial measures that management believes to be insightful in understanding the Company's financial results. These financial measures, which include Adjusted EBITDA and Free Cash Flow, should not be construed as being more important than, or as an alternative for, comparable U.S. GAAP financial measures. Detailed reconciliations of these Non-GAAP financial measures to comparable U.S. GAAP financial measures have been included below and are available in the Investor Relations sections of our website at www.rangerenergy.com. Our presentation of Adjusted EBITDA and Free Cash Flow should not be construed as an indication that our results will be unaffected by the items excluded from the reconciliations. Our computations of these Non-GAAP financial measures may not be identical to other similarly titled measures of other companies. Adjusted EBITDA We believe Adjusted EBITDA is a useful performance measure because it allows for an effective evaluation of our operating performance when compared to our peers, without regard to our financing methods or capital structure. We exclude the items listed below from net income or loss in arriving at Adjusted EBITDA because these amounts can vary substantially within our industry depending upon accounting methods, book values of assets, capital structures and the method by which the assets were acquired. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDA. We define Adjusted EBITDA as net income or loss before net interest expense, income tax provision or benefit, depreciation and amortization, equity-based compensation, acquisition-related, severance and reorganization costs, gain or loss on disposal of property and equipment, and certain other non-cash items that we do not view as indicative of our ongoing performance. The following tables are a reconciliation of net income or loss to Adjusted EBITDA for the respective periods, in millions: Free Cash Flow We believe Free Cash Flow is an important financial measure for use in evaluating the Company's financial performance, as it measures our ability to generate additional cash from our business operations. Free Cash Flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of Free Cash Flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Therefore, we believe it is important to view Free Cash Flow as supplemental to our entire statement of cash flows. The following table is a reconciliation of consolidated operating cash flows to Free Cash Flow for the respective periods, in millions: View source version on businesswire.com: https://www.businesswire.com/news/home/20250429815075/en/ back
Cheniere Declares Quarterly Dividend
Cheniere Declares Quarterly Dividend HOUSTON, Apr. 29 /BusinessWire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE:LNG) today announced that its Board of Directors has declared a quarterly cash dividend of $0.500 per common share payable on May 19, 2025 to shareholders of record as of the close of business on May 9, 2025. About Cheniere Cheniere Energy, Inc. is the leading producer and exporter of liquefied natural gas ("LNG") in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with total production capacity of over 46 million tonnes per annum ("mtpa") of LNG in operation and an additional 8+ mtpa of expected production capacity under construction. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, Dubai and Washington, D.C. For additional information, please refer to the Cheniere website at www.cheniere.com and Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission. Forward-Looking Statements This press release contains certain statements that may include "forward-looking statements" within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, (i) statements regarding Cheniere's financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding regulatory authorization and approval expectations, (iii) statements expressing beliefs and expectations regarding the development of Cheniere's LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third-parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, (vii) statements relating to Cheniere's capital deployment, including intent, ability, extent, and timing of capital expenditures, debt repayment, dividends, share repurchases and execution on the capital allocation plan, and (viii) statements relating to our goals, commitments and strategies in relation to environmental matters. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere's periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements. View source version on businesswire.com: https://www.businesswire.com/news/home/20250429988173/en/ back