FALCON OIL & GAS LTD.
("Falcon" or the "Company" or the "Group")
Full Year Results
28 April 2017 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, ESM: FAC) is pleased to announce its financial results for the year ended 31 December 2016.
The following should be read in conjunction with the complete audited Financial Statements and the accompanying Management's Discussion and Analysis ("MD&A") for the three and twelve months ended 31 December 2016.
- Successfully completed the drilling of the Beetaloo W-1 well to a total depth of 3,173 with very encouraging results.
- Hydraulic stimulation of the horizontal Amungee NW-1H well was completed.
- In February 2017, the Group announced that Origin Energy Resources ("Origin"), Falcon's 35% joint venture partner submitted the Results of Evaluation of the Discovery and Preliminary Estimate of Petroleum in Place for the Amungee NW-1H Velkerri B Shale Gas Pool to the Northern Territory Government indicating a material gas resource.
- Completion of the nine well exploration and appraisal programme will be delayed pending the outcome of the independent scientific inquiry on hydraulic fracturing.
- Processing of Falcon's exploration license application in South Africa's Karoo Basin continues to progress and the South African Department of Mineral Resources is expected to issue licences in 2017.
- Strong financial position, debt free with cash of US$10.1 million at 31 December 2016.
- Continued focus on strict cost management and efficient operation of the portfolio.
- General & administrative expenses decreased 18% year on year to US$2.0 million (31 December 2015: US$2.5 million).
Philip O'Quigley, CEO of Falcon Oil & Gas commented:
"2016 was a landmark year for our Company with the first extended production test in the Beetaloo basin and the announcement of a material gas resource. Our 2017 drilling program is delayed pending the outcome of the independent scientific inquiry on hydraulic fracturing, however we are hopeful of a favourable outcome and the resumption of drilling in the not too distant future. "
Filing of Financial statements, MD&A, AIF and Reserves data
Falcon has filed its audited financial statements for the year ended 31 December 2016, the accompanying MD&A for year ended 31 December 2016 dated 27 April 2017, its Annual Information Form ("AIF") dated 27 April 2017 and the Statement of Reserves Data and Other Oil and Gas Information (National Instrument 51-101, Forms 51-101F1, 51-101F2 and 51-101F3) with the relevant provincial securities regulators. These filings are available for review on the Canadian System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com. The audited financial statements, MD&A and AIF are also available on Falcon's website www.falconoilandgas.com.
Falcon Oil & Gas Ltd.
Consolidated Statement of Operations and Comprehensive Loss
$'000 Year Ended 31 December
$'000 Revenue Oil and natural gas revenue 6 7 6 7 Expenses Exploration and evaluation expenses (336) (679) Production and operating expenses (15) (20) Depreciation (16) (39) General and administrative expenses (2,037) (2,491) Share based compensation (1,335) (256) Foreign exchange loss (73) (143) (3,812) (3,628) Other income - 3,594 (3,806) 3,594 Results from operating activities (3,806) (27) Fair value gain - outstanding warrants 208 79 Finance income 53 78 Finance expense (145) (220) Net finance expense (92) (142) Loss before tax (3,690) (90) Taxation - (110) Loss and comprehensive loss for the year (3,690) (200) Loss and comprehensive loss attributable to: Equity holders of the company (3,687) (193) Non-controlling interests (3) (7) Loss and comprehensive loss for the year (3,690) (200) Loss per share attributable to equity holders of the company: Basic and diluted ($0.004) ($0.000)
Falcon Oil & Gas Ltd.
Consolidated Statement of Financial Position
At 31 December
At 31 December
$'000 Assets Non-current assets Exploration and evaluation assets 39,618 39,618 Property, plant and equipment 7 64 Trade and other receivables 34 22 Restricted cash 2,151 2,239 41,810 41,943 Current assets Cash and cash on deposit 10,127 12,683 Trade and other receivables 190 268 10,317 12,951 Total assets 52,127 54,894 Equity and liabilities Equity attributable to owners of the parent Share capital 382,853 382,853 Contributed surplus 44,251 42,916 Retained deficit (386,229) (382,542) 40,875 43,227 Non-controlling interests 703 706 Total equity 41,578 43,933 Liabilities Non-current liabilities Decommissioning provision 9,690 9,565 9,690 9,565 Current liabilities Accounts payable and accrued expenses 632 961 Derivative financial liabilities 227 435 859 1,396 Total liabilities 10,549 10,961 Total equity and liabilities 52,127 54,894
Falcon Oil & Gas Ltd.
Consolidated Statement of Cash flows
Year Ended 31 December 2016
$'000 Cash flows from operating activities Net loss for the year (3,690) (200) Adjustments for: Share based compensation 1,335 256 Depreciation 16 39 Fair value gain - outstanding warrants 208 (79) Net finance expense 92 142 Termination of farm-out transaction - NIS - (3,700) Other 101 143 Change in non-cash working capital Trade and other receivables 66 257 Accounts payable and accrued expenses (202) 124 Restructuring spend - (444) Interest received 53 78 Net cash used in operating activities (2,437) (3,384) Cash flows from investing activities Decrease / (increase) in restricted cash 22 (1,991) Exploration and evaluation assets (110) (110) (Increase) / decrease in cash deposits - other receivables (2,270) 4,000 Termination of farm-out transaction - NIS - 3,700 Property, plant and equipment (4) - Net cash (used in) / generated by investing activities (2,362) 5,599 Change in cash and cash equivalents (4,799) 2,215 Effect of exchange rates on cash & cash equivalents (27) (285) Cash and cash equivalents at beginning of year 10,683 8,753 Cash and cash equivalents at end of year 5,857 10,683
Falcon Oil & Gas Ltd.
Philip O'Quigley, CEO
Anne Flynn, CFO
+353 1 676 8702
+353 87 814 7042
+353 1 676 9162 Davy (NOMAD & Broker)
John Frain / Anthony Farrell
+353 1 679 6363
This announcement has been reviewed by Dr. Gábor Bada, Falcon Oil & Gas Ltd's Head of Technical Operations. Dr. Bada obtained his geology degree at the Eötvös L. University in Budapest, Hungary and his PhD at the Vrije Aniversiteit Amsterdam, the Netherlands. He is a member of AAPG and EAGE.
All dollar amounts in this document are in United States dollars "$", except as otherwise indicated.
About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd is an international oil & gas company engaged in the acquisition, exploration and development of conventional and unconventional oil and gas assets, with the current portfolio focused in Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.
For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com
About Origin Energy
Origin Energy (ASX: ORG) is the leading Australian integrated energy company with market leading positions in energy retailing (approximately 4.3 million customers), power generation (approximately 6,000 MW of capacity owned and contracted) and natural gas production (1,093 PJ of 2P reserves and annual production of 82 PJe). To match its leadership in the supply of green energy, Origin also aspires to be the number one renewables company in Australia.
Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing Australia's biggest CSG to LNG project based on the country's largest 2P CSG reserves base.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Such information may include, but is not limited to comments made with respect to the awarding of an exploration license in South Africa, to the type, number, schedule, testing and objectives of the wells to be drilled in the Beetaloo basin Australia, expected contributions of the partners, the prospectivity of the Middle Velkerri shale play and the prospect of the exploration programme being brought to commerciality. Actual results might differ materially from results suggested in any forward-looking statements. Falcon assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Falcon. Additional information identifying risks and uncertainties is contained in Falcon's filings with the Canadian securities regulators, which filings are available at www.sedar.com.
On 28 of April 2017 at 9:00 (EET) AB Klaipedos nafta (hereinafter – the Company) holds a conference webinar for its shareholders, investors, mass media representatives and other stakeholders. The presentation is held in English.
The webinar is hosted by KN General Manager Mindaugas Jusius and Director of Finance and Administration Department Marius Pulkauninkas who introduce the Company’s financial results for the first quarter of 2017 and will answer the participant questions.
Webinar presentation is enclosed.
Indrė Milinienė, Chief Communications Officer, tel.: 8 46 391 772
AB Klaipėdos nafta (hereinafter – KN, the Company) announces the unaudited financial results for the first three month period ended 31 March 2017.
- AB Klaipėdos nafta revenues for the first three months of 2017 comprise EUR 27,280 thousand, 10.8% less compared to the same period of 2016 (EUR 30,596 thousand);
- Net profit of the Company comprise EUR 4,812 thousand, 29.8% less compared to the same period of 2016 (EUR 6,857 thousand), net profit margin – 17.6 per cent (in the same period of 2016 – 22,4 per cent).
- Company’s EBITDA for the first three months of 2017 comprise EUR 8,716 thousand, 20,0% less compared to the same period of the year 2016 (EUR 10,888 thousand), EBITDA margin – 32.0 per cent (in the same period of 2016 – 35.6 per cent).
In the first half of 2016 achieved activities record high results in 2017 have changed as a result of the negative external economical and geopolitical factors. The year 2017 for AB Klaipedos nafta has started with the challenges which negatively reflected Company’s financial results but which are gradually overcome.
Total transhipment in KN’s oil terminals of Klaipeda and Subacius in the first quarter of 2017 comprised 1.55 million tons of petroleum products or by 33% less comparing to the same period of 2016 when 2.3 million tons were transhipped. The main reason of the transhipment volume decrease is related with geopolitical factors in the region. From the second half of 2016 the crude oil supply to Belarussian refineries has been significantly reduced that resulted in decrease of oil refinery and accordingly oil products export through the Company’s terminal. In April the crude oil supply started recovering and it is expected for the transhipment volumes increase in the nearly future.
The petroleum products transhipment of AB ORLEN Lietuva remained stable except temporary reduction in March when its refinery was stopped for a planned turnaround. On the other side after the Company modernized its auto carriers loading unit the transhipment volumes loaded through this infrastructure has significantly increased and partially compensated overall decrease in transhipment volumes.
LNG terminal regasification volume in Q1 of 2017 was 1.5 million MWh or less by 70% comparing to the same period of 2016 when 5.1 million MWh have been regasified. The higher regasification volume is expected in the remaining periods of 2017 because AB Achema has reserved additional capacities of the terminal and global LNG prices are tended to reduce in summer.
KN Oil terminals’ revenues in 2017 reduced proportionally with the transhipment volumes decrease and for the Q1 comprised EUR 8.7 million, i.e. reduced by 30% comparing to the same period of 2016. The revenues of the KN LNG terminal for the reporting period comprised EUR 18.5 million when in the same period of 2016 – EUR 18.1 million.
Despite the fact that activity volumes and revenues has decreased in a light of record 2016 Q1 KN activity in 2017 Q1 ensures stable, effective activity results. The unaudited net profit for reporting period comprises EUR 4.8 million, net profit margin – 17.6%. EBITDA comprise EUR 8.7 million, EBITDA margin – 31.9%. These results properly reflect the expectations of the KN management and allow expect a stable performance in the future.
- Unaudited interim condensed Financial Statements of AB Klaipėdos nafta for the three months period ended 31 March 2017.
- Presentation of the financial result for the 3 month period of 2017.
Marius Pulkauninkas, Director of Finance and Administration Department, tel. 8 46 391763
HOUSTON, April 27, 2017 (GLOBE NEWSWIRE) -- Frank’s International N.V. (NYSE:FI) (Frank’s) will demonstrate the SKYHOOK™ Wireless Cement Line Make Up Device May 1-4, 2017, in Booth 1127 at the NRG Center as part of the 2017 Offshore Technology Conference (OTC 2017) taking place in Houston, Texas. The SKYHOOK™ is an award-winning, revolutionary solution for remotely connecting high pressure pumping lines during cementing operations, improving both safety and efficiency. Live technical presentations will take place at 1:30 p.m. each day of the exhibition in the Frank’s booth (1127).
The SKYHOOK™ eliminates the need for hands-on intervention high in the derrick during cementing operations, which increases efficiency and eliminates the dangerous potential for falls. When using the SKYHOOK™, operational flow-line make up time is reduced from half an hour to mere minutes and cementing operations can continue in even extreme weather conditions. In October 2016, the SKYHOOK™ was awarded the New Technology of the Year Award at the Texas Oil and Gas Awards, following its first field deployment in September 2016 in the Gulf of Mexico.
The SKYHOOK™ was patented and developed by Blackhawk Specialty Tools (Blackhawk) and is part of a technologically-advanced specialty cementing suite of products that complements the Frank’s tubular running services portfolio, allowing Frank’s to offer customers integrated well construction solutions, as well as well intervention and completions solutions, across land, shelf, and deepwater applications.
In addition to the SKYHOOK™, Frank’s will highlight proprietary drilling technologies that help optimize the drilling practice in extended reach wells, while preventing failures, reducing overall costs, and preserving well integrity. These include the patented Harmonic Isolation Tool (HI Tool®), and the Drill String Torque Reducer (DSTR™) sub. Frank’s non-marking Fluid Grip® tong will also be featured.
OTC was founded in 1969, and is widely acknowledged as the largest annual oil and gas industry event in the world, attracting attendees from 100 countries.
“OTC offers a valuable opportunity to showcase our latest technologies to a knowledgeable industry audience,” remarked Frank’s President and CEO Douglas Stephens. “This year, we are proud to feature new solutions that not only facilitate the most complex completions, but save time and money while enhancing safety on the rig.”
About Frank’s International
Frank’s International, N.V. is a global oil services company that focuses on complex and technically demanding wells by providing a broad and comprehensive range of highly engineered tubular running services, tubular fabrication, and specialty well construction and well intervention solutions. Founded in 1938, Frank’s International has approximately 3,000 employees and provides services to exploration and production companies in onshore and offshore environments in approximately 60 countries on six continents. Frank’s International common stock is traded on the NYSE under the symbol “FI.” Additional information is available on www.franksinternational.com.CONTACT: Contact: Blake Holcomb – Director, Investor Relations and Communications firstname.lastname@example.org 713-231-2463
CALGARY, Alberta, April 27, 2017 (GLOBE NEWSWIRE) -- Baytex Energy Corp. (TSX:BTE) (NYSE:BTE) will release its 2017 first quarter financial and operating results after the close of markets on Thursday, May 4, 2017. A conference call and webcast will be held on Friday, May 5, 2017 to discuss the results and address investor questions.
Conference Call Details:Date:Friday, May 5, 2017Time:9:00 a.m. MDT (11:00 a.m. EDT)Dial-in:647-427-2258 (Toronto Local and International)
1-866-226-4099 (North America Toll-Free)
An archived recording of the conference call will be available approximately two hours after the event by accessing the webcast link above. The conference call will also be archived on the Baytex website at www.baytexenergy.com.
Baytex Energy Corp. is an oil and gas corporation based in Calgary, Alberta. The company is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. Approximately 79% of Baytex’s production is weighted toward crude oil and natural gas liquids. Baytex’s common shares trade on the Toronto Stock Exchange and the New York Stock Exchange under the symbol BTE.
For further information about Baytex, please visit our website at www.baytexenergy.com.CONTACT: Brian Ector, Senior Vice President, Capital Markets and Public Affairs Toll Free Number: 1-800-524-5521 Email: email@example.com
CALGARY, Alberta, April 27, 2017 (GLOBE NEWSWIRE) -- Baytex Energy Corp. (TSX:BTE) (NYSE:BTE) will be holding its Annual Meeting of Shareholders on Thursday, May 4, 2017 at Centennial Place, 3rd Floor, West Tower (Bow Glacier Room), 250 - 5th Street S.W., Calgary, Alberta, commencing at 3:00 p.m. (MDT). Following the meeting, Mr. Edward LaFehr, President and incoming Chief Executive Officer, will deliver a corporate presentation on Baytex. Both the meeting and Mr. LaFehr’s presentation will be webcast. The presentation slides and a link to the webcast will be available on the Baytex website, www.baytexenergy.com, at the start of the meeting. The archived webcast of the meeting and presentation can also be accessed via the following URL for 30 days following the meeting:
Baytex Energy Corp. is an oil and gas corporation based in Calgary, Alberta. The company is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. Approximately 79% of Baytex’s production is weighted toward crude oil and natural gas liquids. Baytex's common shares trade on the Toronto Stock Exchange and the New York Stock Exchange under the symbol BTE.
For further information about Baytex, please visit our website at www.baytexenergy.com or contact:CONTACT: Brian Ector, Senior Vice President, Capital Markets and Public Affairs Toll Free Number: 1-800-524-5521 Email: firstname.lastname@example.org
HOUSTON, April 27, 2017 (GLOBE NEWSWIRE) -- Sanchez Energy Corporation (NYSE:SN) (“Sanchez Energy” or the “Company”) today announced that it will host a conference call at 1:00 p.m. Central Time (2:00 p.m. Eastern Time) on Tuesday, May 9, 2017. The Company expects to release its first quarter 2017 earnings before the market opens that day.What: Sanchez Energy First Quarter 2017 Earnings Conference Call When: Tuesday, May 9, 2017 at 1:00 p.m. Central Time (2:00 p.m. Eastern Time) Dial In: 1-888-349-0085 (U.S.) 1-855-669-9657 (Canada) 001-855-817-7630 (Mexico) 1-412-902-4293 (International) Request Sanchez Energy 1Q 2017 Conference Call Webcast: Live and rebroadcast over the Internet at: http://edge.media-server.com/m/p/c7dxdxj7/lan/en Replay: A replay will be available approximately two hours after the call through May 16, 2017, at 10:59 p.m. Central Time (11:59 p.m. Eastern Time). The replay may be accessed by dialing (844) 512-2921 (U.S.) or (412) 317-6671 (International), and referencing the replay passcode: 10106496.
ABOUT SANCHEZ ENERGY CORPORATION
Sanchez Energy Corporation (NYSE:SN) is an independent exploration and production company focused on the acquisition and development of U.S. onshore unconventional oil and natural gas resources, with a current focus on the Eagle Ford Shale in South Texas where we have assembled over 335,000 net acres. For more information about Sanchez Energy Corporation, please visit our website: www.sanchezenergycorp.com.CONTACT: COMPANY CONTACT: Kevin Smith VP Investor Relations (281) 925-4828 Cham King Director, Capital Markets & Investor Relations (713) 756-2797 General Inquiries: (713) 783-8000 www.sanchezenergycorp.com
HOUSTON, April 27, 2017 (GLOBE NEWSWIRE) -- RigNet, Inc. (NASDAQ:RNET) today announced that it will release its first quarter 2017 earnings results after the NASDAQ Exchange closes Monday, May 8, 2017. This release will be followed by a conference call for investors on Tuesday, May 9, 2017, at 11:00 a.m. Eastern Daylight Time (10:00 a.m. CDT) to discuss RigNet’s first quarter 2017 results. Hosting the call will be Steven Pickett, President and Chief Executive Officer, and Chip Schneider, Chief Financial Officer and Senior Vice President.
The call may be accessed live over the telephone by dialing +1 (877) 845-0777, or for international callers, +1 (760) 298-5090. Interested parties may also listen to a simultaneous webcast of the conference call by logging onto RigNet’s website at www.rig.net in the Investors – Webcasts and Presentation section. A replay of the conference call will also be available for approximately 30 days following the call.
RigNet (NASDAQ:RNET) is a leading global provider of customized systems and solutions serving customers with complex data networking and operational requirements. RigNet provides solutions ranging from fully-managed voice and data networks to more advanced applications that include video conferencing, crew welfare, asset monitoring and real-time data services. RigNet is based in Houston, Texas and has operations around the globe.
For more information on RigNet, please visit www.rig.net. RigNet is a registered trademark of RigNet, Inc.CONTACT: Media / Investor Relations Contact: Charles E. Schneider Senior Vice President and Chief Financial Officer RigNet, Inc. Tel: +1 (281) 674-0699
HOUSTON, April 27, 2017 (GLOBE NEWSWIRE) -- SAExploration Holdings, Inc. (NASDAQ:SAEX) (OTCQB:SXPLW) today announced plans to release its unaudited consolidated financial results for the first quarter ended March 31, 2017 on Thursday, May 4, 2017 after close of trading. SAE has scheduled a conference call for Friday, May 5, 2017 at 10:00 a.m. ET to discuss these results and other related matters.SAExploration Holdings, Inc. Q1 2017 Earnings CallDate:Friday, May 5, 2017Time:10:00 a.m. ET (9:00 a.m. CT)Phone:(855) 433-0934 (Toll-Free) or (484) 756-4291 (Toll)
The conference call will also be broadcast live on the Investors section of SAE’s website at www.saexploration.com. To listen to the live call via the Company’s website, please go to the website at least 15 minutes early to register and download any necessary audio software. If you are unable to listen live, the webcast of the conference call will be archived on the Company’s website for approximately 90 days.
About SAExploration Holdings, Inc.
SAE is an internationally-focused oilfield services company offering a full range of vertically-integrated seismic data acquisition and logistical support services in remote and complex environments throughout Alaska, Canada, South America, Southeast Asia and West Africa. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones and offshore in depths reaching 3,000 meters, SAE offers a full suite of logistical support and in-field data processing services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation and community relations. SAE operates crews around the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large independent oil and gas exploration companies. Operations are supported through a multi-national presence in Houston, Alaska, Canada, Peru, Colombia, Bolivia, Brazil and New Zealand. For more information, please visit SAE’s website at www.saexploration.com.
The information in SAE’s website is not, and shall not be deemed to be, a part of this notice or incorporated in filings SAE makes with the Securities and Exchange Commission.
Forward Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the U.S. federal securities laws with respect to SAE. These statements can be identified by the use of words or phrases such as “expects,” “estimates,” “projects,” “budgets,” “forecasts,” “anticipates,” “intends,” “plans,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions. These forward-looking statements include statements regarding SAE's financial condition, results of operations and business and SAE's expectations or beliefs concerning future periods and possible future events. These statements are subject to significant known and unknown risks and uncertainties that could cause actual results to differ materially from those stated in, and implied by, this press release. Risks and uncertainties that could cause actual results to vary materially from SAE’s expectations are described under “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in SAE’s filings with the Securities and Exchange Commission. Except as required by applicable law, SAE is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
CONTACT: Contact SAExploration Holdings, Inc. Ryan Abney Vice President, Finance (281) 258-4409 email@example.com
Hamilton, Bermuda, April 27, 2017 - North Atlantic Drilling Ltd. (the "Company") announced that it has filed its annual report on Form 20-F for the year ended December 31, 2016. The Annual Report on Form 20-F is available from our website www.nadlcorp.com | Investor relations | Financial reports.
The Company's Annual Report on Form 20-F, may be accessed through the website of the U.S. Securities and Exchange Commission - http://www.sec.gov/. Shareholders may also request a hard copy of the Annual Report, which includes the Company's complete 2016 audited consolidated financial statements, free of charge, by sending an email to: firstname.lastname@example.org.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
At the Annual General Meeting of Landsvirkjun, the National Power Company of Iceland, held today, the Minister of Finance and Economic Affairs appointed Board members and reserve members for Landsvirkjun’s Board of Directors.
Members of Landsvirkjun’s Board of Directors:
- Jónas Þór Guðmundsson
- Ragnheiður Elín Árnadóttir
- Haraldur Flosi Tryggvason
- Álfheiður Ingadóttir
- Kristín Vala Ragnarsdóttir
Today marks the first time that women are in the majority as Board members of Landsvirkjun.
Leaving the Board were Jón Björn Hákonarson, Helgi Jóhannesson and Þórunn Sveinbjarnardóttir. They have been members of the board since 2014 and were thanked for their work.
Reserve members of the Board: Ásta Björg Pálmadóttir, Páley Borgþórsdóttir, Lárus Elíasson, Ragnar Óskarsson and Albert Svan Sigurðsson.
The Annual General Meeting confirmed the Board of Directors’ report and consolidated accounts for the past financial year. Deloitte ehf. was elected as the audit company for Landsvirkjun as recommended by the Icelandic National Audit Office.
Jónas Þór Guðmundsson re-elected Chairman of the Board
Jónas Þór Guðmundsson was re-elected Chairman of the Board and Haraldur Flosi Tryggvason was elected Vice Chairman of the Board, at the first meeting held by the Board.
1.5 billion ISK dividends for the year 2016
The Board’s proposal for the payment of dividends to owners in the amount of 1.5 billion ISK, for the year 2016, was also approved at the Annual General Meeting.
Magnús Þór Gylfason
Director of Corporate Communications
+ 354 5159000
Paris, 27 April 2017
2017 Q1 sales: €90 million
Stable in sequential (vs Q4 2016) thanks to a favorable price effect but an unfavorable quantity effect in Gabon
Increase in annual (vs Q1 2016) thanks to a very favorable price effect
The Group's consolidated sales for the first quarter of 2017 totalled €90 million, broken down as follows:Q2 2016 Q3 2016 Q4 2016 Q1 2017 Chg.
Q4 16 Q1 2016 Chg.
Q1 16 Total production sold in the period (M&P share) million barrels of oil 1.89 1.95 1.91 1.63 -14% 1.69 -3% million MMBTUs 2.28 1.55 1.78 1.91 7% 2.13 -10% Average selling price OIL, in US$/bbl 45.1 44.2 47.5 52.8 11% 32.6 62% GAS, in US$/BTU 3.11 3.16 3.16 3.18 1% 3.11 2% €/US$ exchange rate 1.13 1.12 1.08 1.06 -2% 1.10 -4% SALES €m €m €m €m €m Oil production 81 81 88 86 -3% 55 56% Gabon 76 77 84 81 -3% 50 62% Tanzania 5 4 4 5 9% 5 -5% Drilling activity 4 3 3 5 31% 3 75% Consolidated sales 84 83 92 90 -1% 58 57%
Sales trends reflected a sharp rise in the average selling price of oil produced in Gabon (up 11% versus Q4 2016 and up 62% versus Q1 2016) while volumes sold were relatively stable compared to Q1 2016 (down 3%) but lower compared to Q4 2016 (down 14%).
The average selling price of oil has followed the rise in the market reference price, i.e. Brent. It has also benefited from higher prices for Rabi Light crude oil, which is discounted compared to Brent and averaged US$3.45/bbl in Q1 2016, US$1.49/bbl in Q4 2016 and US$1.35/bbl in Q1 2017.
Hydrocarbon production in Q1 2017 (M&P share)Units Q2 2016 Q3 2016 Q4 2016 Q1 2017 Chg.
T4 16 Q1 2016 Chg.
T1 16 Oil bopd 22,195 22,666 22,237 19,442 -13% 19,910 -2% Gas MMcf/d 24.5 16.5 18.9 20.8 10% 22.8 -9% TOTAL boepd 26,279 25,413 25,392 22,905 -10% 23,717 -3%
Oil production in Q1 2017 stood at 19,442 bopd for M&P working interest (80 %), or 24,303 bopd for operated production. This level was below the fields' production capacity, which had been impacted by a strike that disrupted operations.
In Tanzania, gas output was 20.8 MMcf/d (M&P share: 48.06%), almost the same as the 2016 average (20.7 MMcf/d). Gas production capacity on the Mnazi Bay permit is currently around 80 MMcf/d for average operated production of around 43 MMcf/d (at 100%). This production level depends on industrial gas consumption in Dar Es Salam, which is routed through TPDC buying from the operator.
French English pieds cubes pc cf cubic feet pieds cubes par jour pc/j cfpd cubic feet per day milliers de pieds cubes kpc Mcf 1,000 cubic feet millions de pieds cubes Mpc MMcf 1,000 Mcf = million cubic feet milliards de pieds cubes Gpc Bcf billion cubic feet baril b bbl barrel barils d'huile par jour b/j bopd barrels of oil per day milliers de barils kb Mbbl 1,000 barrels millions de barils Mb MMbbl 1,000 Mbbl = million barrels barils équivalent pétrole bep boe barrels of oil equivalent barils équivalent pétrole par jour bep/j boepd barrels of oil equivalent per day milliers de barils équivalent pétrole kbep Mboe 1,000 barrels of oil equivalent millions de barils équivalent pétrole Mbep MMboe 1,000 Mbbl = million barrels of oil equivalent
For more information, go to www.maureletprom.fr
MAUREL & PROM
Tel: +33 (0)1 53 83 16 00
Press, shareholder and investor relations
Tel: +33 (0)1 53 83 16 45
This document may contain forward-looking statements regarding the financial position, results, business and industrial strategy of Maurel & Prom. By nature, forward-looking statements contain risks and uncertainties to the extent that they are based on events or circumstances that may or may not happen in the future. These projections are based on assumptions we believe to be reasonable, but which may prove to be incorrect and which depend on a number of risk factors, such as fluctuations in crude oil prices, changes in exchange rates, uncertainties related to the valuation of our oil reserves, actual rates of oil production and the related costs, operational problems, political stability, legislative or regulatory reforms, or even wars, terrorism and sabotage.
Maurel & Prom is listed for trading on Euronext Paris
ISIN FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA
BOISE, Idaho, April 27, 2017 (GLOBE NEWSWIRE) -- U.S. Geothermal Inc. (the “Company”) (NYSE MKT:HTM), a leading and profitable renewable energy company focused on the development, production, and sale of electricity from geothermal energy, is pleased to provide an update on its Raft River expansion project.
Phase II of the ongoing plan to increase the output at Raft River from its current generation level of 10 MWs, up to its contract maximum of 13 MWs, commenced in March with the successful installation of the pump in well RRG-5. Production from RRG-5 started on March 21, 2017 and is currently operating at the rate of 1,100 gallons per minute. The addition of this flow to the plant has increased net power production by approximately 0.71 MWs.
“We are pleased to report success from this initial step of work at Raft River, and we expect to have additional increases in generation over the quarter as we upgrade downstream equipment,” said Douglas Glaspey, President and COO. “We remain optimistic that the positive results at Raft River, coupled with our ongoing hybrid cooling efforts at Neal Hot Springs will move us toward our short-term goal of increasing generation from our existing projects.”
To date, the reservoir response has been significantly better than projected, with minimal drawdown in well RRG-5 and no impact to water level in the adjoining wells. The well temperature is currently stable at over 247°F. The next step to optimize output from the wellfield is to increase the capacity of the injection system. After an injection pump is upgraded, a further increase in fluid flow to the plant is expected, which will result in a corresponding increase in generation, plus allow for additional production well increases.
About U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a leading and profitable renewable energy company focused on the development, production and sale of electricity from geothermal energy. The Company is currently operating geothermal power projects at Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho for a total power generation of approximately 45 MWs. The Company is also developing an additional estimated 115 MWs of projects at: the Geysers, California; a second phase project at San Emidio, Nevada; at Crescent Valley, Nevada; and the El Ceibillo project located near Guatemala City, Guatemala. U.S. Geothermal’s growth goal is to reach over 200 MWs of generation by 2021 through a combination of internal development and strategic acquisitions.
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Scott Anderson – Director of Investor Relations and Corporate Communications
U.S. Geothermal Inc.
Please visit our Website at: http://www.usgeothermal.com
The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Readers are cautioned to review the risk factors identified by the company in its filings with US and Canadian securities agencies. All statements, other than statements of historical fact, included herein, without limitation, statements relating to the future operating or financial performance, development schedules or estimated resources of U.S. Geothermal, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. These forward-looking statements may include statements regarding perceived merit of properties; interpretation of the results of well tests; project development; resource megawatt capacity; capital expenditures; timelines; strategic plans; or other statements that are not statements of fact. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from U.S. Geothermal's expectations include the uncertainties involving the availability of financing in the debt and capital markets; uncertainties involved in the interpretation of results of well tests; the need for cooperation of government agencies in the development and operation of properties; the need to obtain permits and governmental approvals; risks of construction; unexpected cost increases, which could include significant increases in estimated capital and operating costs; and other risks and uncertainties disclosed in U.S. Geothermal's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the United States Securities and Exchange Commission and Canadian securities regulatory authorities and in other U.S. Geothermal reports and documents filed with applicable securities regulatory authorities from time to time. Forward-looking statements are based on management’s expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management’s expectations, beliefs, or opinions, or other factors, should change.
The NYSE MKT does not accept responsibility for the adequacy of this release.
A conference call has been scheduled to discuss these earnings results at 2:00 p.m. Pacific Time. The conference call can be accessed live via the Sunrun Investor Relations website at http://investors.sunrun.com or over the phone by dialing (877) 470-1078 (domestic) or (615) 247-0087 (international) using ID #7201266. A replay will be available following the call via the Sunrun Investor Relations website or for one week at the following numbers (855) 859-2056 (domestic) or (404) 537-3406 (international) using ID #7201266.
Sunrun (Nasdaq:RUN) is the largest dedicated residential solar company in the United States with a mission to create a planet run by the sun. Since establishing the solar as a service model in 2007, Sunrun continues to lead the industry in providing clean energy to homeowners with little to no upfront cost and at a savings to traditional electricity. The company designs, installs, finances, insures, monitors and maintains the solar panels on a homeowner's roof, while families receive predictable pricing for 20 years or more. For more information please visit: www.sunrun.com.
CONTACT: Investor Relations Contact Investors@sunrun.com Patrick Jobin Vice President, Finance & Investor Relations 415-638-4007 Charlotte Coultrap-Bagg Director, Finance & Investor Relations 415-510-4833
FORT WAYNE, Ind., April 27, 2017 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. (NASDAQ:FELE) reported first quarter 2017 GAAP fully diluted earnings per share (EPS) of $0.33, versus a GAAP fully diluted EPS in the first quarter 2016 of $0.28, an increase of 18 percent. First quarter 2017 sales were $220.3 million, an increase of 1 percent compared to 2016 first quarter sales of $218.4 million. The Company’s organic sales growth was 1 percent as the impact of foreign currency translation was not significant.
Gregg Sengstack, Franklin Electric’s Chairman and Chief Executive Officer, commented:
“We are pleased to report increased sales and earnings for the first quarter. Our Fueling Systems segment achieved record first quarter sales and earnings and posted organic sales growth of 9 percent and our Water business outside the U.S. and Canada grew organically as well, with particularly strong results in Latin America. Gross profit and gross profit margins both improved over the first quarter 2016. Despite these improvements, our operating income declined in the quarter due to higher marketing and selling costs. During the first quarter, we recognized discrete tax benefits that more than offset the operating income decline and allowed us to achieve an 18 percent increase in EPS.”
Key Performance Indicators:Net Sales United StatesLatinEurope, MiddleAsiaTotal (in millions)& CanadaAmericaEast & AfricaPacificWaterFuelingConsolidated Q1 2016$77.6 $27.1 $42.8 $21.3 $168.8 $49.6 $218.4 Q1 2017$71.5 $33.3 $40.9 $21.5 $167.2 $53.1 $220.3 Change ($6.1) $6.2 ($1.9) $0.2 ($1.6) $3.5 $1.9 % Change -8% 23% -4% 1% -1% 7% 1% Foreign currency translation$0.0 $3.2 ($2.5) $0.1 $0.8 ($0.8) $0.0 % Change 0% 12% -6% 0% 0% -2% 0% Volume/Price ($6.1)$3.0 $0.6 $0.1 ($2.4)$4.3 $1.9 % Change -8% 11% 2% 1% -1% 9% 1%
Operating Income and Margins Before and After Restructuring Expenses (in millions) For the First Quarter 2017 WaterFuelingOtherConsolidatedReported Operating Income / (Loss) $21.4 $11.0 $(13.9)$18.5 % Operating Income To Net Sales 12.8% 20.7% 8.4% Restructuring $0.3 $- $- $0.3 Operating Income/(Loss) before Restructuring Expenses $21.7 $11.0 $(13.9)$18.8 % Operating Income to Net Sales Before Restructuring 13.0% 20.7% 8.5% Operating Income and Margins Before and After Restructuring Expenses (in millions) For the First Quarter 2016 WaterFuelingOtherConsolidatedReported Operating Income / (Loss) $24.2 $10.2 $(13.3)$21.1 % Operating Income To Net Sales 14.3% 20.6% 9.7% Restructuring $0.4 $0.4 $- $0.8 Operating Income/(Loss) before Restructuring Expenses $24.6 $10.6 $(13.3)$21.9 % Operating Income to Net Sales Before Restructuring 14.6% 21.4% 10.0%
Water Systems sales were $167.2 million in the first quarter 2017, a decrease of $1.6 million or about 1 percent versus the first quarter 2016 sales of $168.8 million. Water Systems organic sales were also down about 1 percent compared to the first quarter 2016.
Water Systems sales in the U.S. and Canada were down about 8 percent compared to the prior year first quarter. On April 10, 2017, the Company announced the acquisition of three distribution companies in the U.S. groundwater market. Groundwater sales declined about $7 million, of which approximately $6 million is attributable to the decision by the leadership of the acquired distribution companies to reduce their holdings of Franklin Electric inventory in anticipation of the acquisitions.
Outside of the sales to the acquired distribution companies, U.S. and Canada sales of groundwater pumping equipment were down about 4 percent due to higher channel inventory levels from significant fourth quarter 2016 purchases and to a lesser extent, adverse weather, especially in the West. U.S. and Canada sales of dewatering equipment increased by 12 percent in the first quarter when compared to the prior year and sales of other surface pumping equipment declined by 3 percent.
Water Systems sales in markets outside the U.S. and Canada experienced overall growth of about 5 percent, of which about 1 percent was attributable to the impact of foreign currency translation. International Water Systems sales growth was led by improved sales in the Latin American region which had organic sales growth of 11 percent, after excluding the impact of foreign currency translation. Sales in Europe, the Middle East, Africa and Asia Pacific markets also grew organically in the quarter compared to last year excluding the impact of foreign currency translation.
Water Systems operating income was $21.4 million in the first quarter 2017, down $2.8 million or 12 percent versus the first quarter 2016 and operating income margin was 12.8 percent, a decline of 150 basis points from 14.3 percent in the first quarter 2016. Water Systems first quarter 2017 operating income and operating income margins before restructuring expenses were $21.7 million and 13.0 percent respectively. The decline in Water Systems operating income and operating income margin is primarily attributed to lower sales volume and higher marketing and selling expenses.
Fueling Systems sales were $53.1 million in the first quarter 2017, an increase of $3.5 million or about 7 percent versus the first quarter 2016 sales of $49.6 million. Fueling Systems sales decreased by $0.8 million or about 2 percent in the quarter due to foreign currency translation. Fueling Systems sales increased about 9 percent, after excluding foreign currency translation.
Fueling Systems sales in the U.S. and Canada grew by about 7 percent during the quarter. The increase was primarily in pumping and fuel management systems. Outside of the U.S. and Canada, Fueling Systems revenues also grew by about 7 percent, led by stronger sales in Asia Pacific, especially China. This growth was partially offset by a sales decline in Latin America.
Fueling Systems operating income was $11.0 million in the first quarter of 2017, up $0.8 million or about 8 percent compared to $10.2 million in the first quarter of 2016 and the first quarter operating income margin was 20.7 percent, an increase of 10 basis points from the 20.6 percent of net sales in the first quarter of 2016.
The Company’s consolidated gross profit was $75.8 million for the first quarter of 2017, an increase of $1.6 million, or about 2 percent, from the first quarter of 2016 gross profit of $74.2 million. The gross profit as a percent of net sales was 34.4 percent in the first quarter of 2017 and increased about 40 basis points versus 34.0 percent during the first quarter 2016. The gross profit margin increase was primarily due to favorable pricing and lower direct material costs, partially offset by higher fixed costs.
Selling, general, and administrative (SG&A) expenses were $57.0 million in the first quarter of 2017 compared to $52.3 million in the first quarter of the prior year, an increase of $4.7 million or about 9 percent. Sales related support cost, including marketing and selling related expenses, increased by about $3.3 million and transaction and other costs associated with the recently acquired distribution companies were about $0.8 million.
The Company realized discrete income tax benefits related to foreign net operating losses and currency exchange losses in the first quarter of 2017 which lowered the consolidated effective tax rate to about 1 percent. The effective tax rate in the first quarter 2016 was about 27 percent.
The Company ended the first quarter of 2017 with a cash balance of about $71 million versus about $104 million at the end of 2016, down due primarily to increased inventory. Inventory levels at the end of the first quarter 2017 were $236 million versus year end 2016 of $203 million. The inventory increase is primarily due to seasonal demand and due to lower than anticipated sales of groundwater pumping equipment in the U.S. and Canada markets.
Commenting on the outlook, Mr. Sengstack said:
“Despite the slow start in the U.S. and Canada groundwater markets, we remain positive about the balance of 2017 and our ability to achieve organic top line growth in the five to seven percent range for our pre-acquisition segments. This growth allows us to reaffirm our 2017 adjusted earnings per share guidance range of $1.77 to $1.87.
As we had previously announced on April 10, our forward integration into distribution in the U.S. through the creation of the Headwater Distribution segment is a logical next step for Franklin Electric to serve and grow in the U.S. groundwater market. We will begin reporting results for the new segment in the second quarter 2017.”
A conference call to review earnings and other developments in the business will commence at 9:00 am EDT. The first quarter 2017 earnings call will be available via a live webcast. The webcast will be available in a listen only mode by going to:
If you intend to ask questions during the call, please dial in using 877.643.7158 for domestic calls and 914.495.8565 for international calls. The conference ID is: 5094619.
A replay of the conference call will be available Thursday, April 27, 2017 at 12:00 noon EDT through midnight EDT on Thursday, May 4, 2017, by dialing 855.859.2056 for domestic calls and 404.537.3406 for international calls. The replay passcode is: 5094619.
Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and fuel. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.
FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) (In thousands) March 31, December 31, 2017 2016ASSETS Cash and equivalents$70,651 $104,331Receivables 154,701 145,999Inventories 235,724 203,471Other current assets 33,803 30,018Total current assets 494,879 483,819 Property, plant, and equipment, net 197,412 196,137Goodwill and other assets 362,989 359,949Total assets$1,055,280 $1,039,905 LIABILITIES AND EQUITY Accounts payable$69,042 $63,927Accrued expenses and other current liabilities 46,667 60,119Current maturities of long-term debt and short-term borrowings 33,783 33,715Total current liabilities 149,492 157,761 Long-term debt 156,170 156,544Deferred income taxes 42,067 40,460Employee benefit plans 43,527 45,307Other long-term liabilities 18,367 17,093 Redeemable noncontrolling interest 7,849 7,652 Total equity 637,808 615,088Total liabilities and equity$1,055,280 $1,039,905
FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(In thousands) March 31, April 2, 2017 2016 Cash flows from operating activities: Net income$15,934 $13,580 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 8,924 8,752 Share-based compensation 2,941 2,539 Other (1,879) 1,709 Changes in assets and liabilities: Receivables (6,560) (20,609)Inventory (29,661) (8,884)Accounts payable and accrued expenses (10,539) (3,649)Other (3,731) 6,125 Net cash flows from operating activities (24,571) (437) Cash flows from investing activities: Additions to property, plant, and equipment (4,908) (11,153)Proceeds from sale of property, plant, and equipment 34 185 Other investing activities (7) - Net cash flows from investing activities (4,881) (10,968) Cash flows from financing activities: Change in debt (460) 11,789 Proceeds from issuance of common stock 481 411 Excess tax from share-based payment arrangements - 53 Purchases of common stock (665) (4,175)Dividends paid (4,668) (4,506)Net cash flows from financing activities (5,312) 3,572 Effect of exchange rate changes on cash 1,084 914 Net change in cash and equivalents (33,680) (6,919)Cash and equivalents at beginning of period 104,331 81,561 Cash and equivalents at end of period$70,651 $74,642
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, future trends, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2016, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statement.
TULSA, Okla., April 27, 2017 (GLOBE NEWSWIRE) -- Midstates Petroleum Company, Inc. (NYSE MKT:MPO) (“Midstates” or the “Company”) today announced that its first quarter 2017 earnings release will be issued on Monday, May 8, after the close of trading on the NYSE MKT. The Company will host a conference call to discuss first quarter results the following morning, Tuesday, May 9 at 11:00 a.m. Eastern time (10:00 a.m. Central time).
Participants may join the conference call by dialing (877) 645-4610 (for U.S. and Canada) or (707) 595-2723 (International). The conference call access code is 15297042 for all participants. To listen via live web cast, please visit the Investor Relations section of the Company’s website, www.midstatespetroleum.com.
An audio replay of the conference call will be available approximately two hours after the conclusion of the call. The audio replay will remain available until midnight on June 9 and can be accessed by dialing (855) 859-2056 (for U.S. and Canada) or (404) 537-3406 (International). The conference call audio replay access code is 15297042 for all participants. The audio replay will also be available in the Investors section of the Company’s website approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.
About Midstates Petroleum Company, Inc.
Midstates Petroleum Company, Inc. is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore U.S. The Company’s operations are currently focused on oilfields in the Mississippian Lime play in Oklahoma and the Anadarko Basin in Texas and Oklahoma.CONTACT: Contact: Midstates Petroleum Company, Inc. Jason McGlynn, Investor Relations, (918) 947-4614 Jason.McGlynn@midstatespetroleum.com
New leases total 34.42 MW YTD
Double Digit Revenue, Earnings Per Share, Normalized FFO per share and AFFO growth
WASHINGTON, April 27, 2017 (GLOBE NEWSWIRE) -- DuPont Fabros Technology, Inc. (NYSE:DFT) announces results for the quarter ended March 31, 2017. All per share results are reported on a fully diluted basis.
- As of April 27, 2017, our operating portfolio was 99% leased and commenced as measured by critical load (in megawatts, or "MW") and computer room square feet ("CRSF"), and 51% of the MW under development have been pre-leased.
- First Quarter 2017 Highlights:
• Double digit growth rates versus prior year quarter:
• Revenue: +12%
• Earnings per share: +25%
• Normalized Funds from Operations ("FFO") per share: +15%
• Adjusted FFO ("AFFO"): +40%
• Executed two leases totaling 5.62 MW and 34,636 CRSF with a weighted average lease term of 6.5 years. One of these leases, which totals 4.2 MW and 25,686 CRSF, was disclosed in our fourth quarter 2016 earnings release.
• Executed one lease amendment for the remaining 4,307 CRSF in ACC7 with a term of 9.7 years.
- Second Quarter 2017 Highlights to date:
• Executed three pre-leases totaling 28.80 MW and 161,822 CRSF in our ACC9 and CH3 data centers, with a weighted average lease term of 8.5 years.
• Commenced development of ACC10 Phase I in Ashburn, Virginia, comprising 15.00 MW and 90,000 CRSF, with expected delivery in the second quarter of 2018.
• Commenced development of CH3 Phase II, comprising 12.80 MW and 89,000 CRSF, with expected delivery in the second quarter of 2018.
Chris Eldredge, President and CEO commented, “DFT is extremely honored that our top customers continue to value and expand their relationship with us, evidenced by the record-setting volume of leases signed year to date. Given the level of inventory absorbed by our customers and continued demand for high-quality data center space, we are expanding development offerings in our Ashburn, Virginia and metro Chicago markets.”
First Quarter 2017 Results
For the quarter ended March 31, 2017, earnings were $0.45 per share compared to $0.36 per share in the first quarter of 2016. Earnings increased $0.09 per share, or 25%, year over year, which was primarily due to new leases that commenced in 2016 and the first quarter of 2017 and lower preferred stock dividends, partially offset by the impact of the issuance of common stock that occurred late in the first quarter of 2016. For the quarter-ended March 31, 2017, revenues were $139.5 million, an increase of 12%, or $15.3 million, over the first quarter of 2016. The increase in revenues was primarily due to new leases commencing.
For the quarter ended March 31, 2017, NAREIT FFO was $0.76 per share compared to $0.67 per share for the prior year quarter. NAREIT FFO for the first quarter of 2017 included $0.01 per share of severance and equity acceleration related to the departure of our Chief Revenue Officer. The increase of $0.09 per share of NAREIT FFO is due to the items discussed below, partially offset by the severance and equity acceleration.
Normalized FFO for the quarter ended March 31, 2017 was $0.77 per share compared to $0.67 per share for the first quarter of 2016. Normalized FFO increased $0.10 per share, or 15%, from the prior year quarter primarily due to the following:
- Increased operating income, excluding depreciation of $0.11 per share, primarily due to new leases commencing and
- Lower preferred stock dividends of $0.04 per share due to fewer preferred shares outstanding and a lower dividend rate, partially offset by
- $0.05 per share from the issuance of common equity in the first quarter of 2016.
During the first quarter 2017, we:
- Executed two leases totaling 5.62 MW and 34,636 CRSF:
• One lease was at ACC7 Phase IV for 4.20 MW and 25,686 CRSF. This lease was disclosed in our February 23, 2017 earnings release and resulted in ACC7 being 100% leased and commenced on a critical load basis.
• One lease was at CH2 Phase II for 1.42 MW and 8,950 CRSF. This lease commenced in the first quarter and resulted in CH2 being 100% leased and commenced.
- Executed one lease amendment for the remaining 4,307 CRSF in ACC7 which commenced in the first quarter.
During the second quarter 2017 to date, we:
- Executed three pre-leases totaling 28.80 MW and 161,822 CRSF:
• One pre-lease was for the entire CH3 Phase I, comprising 14.40 MW and 71,506 CRSF. This lease is expected to commence in the first quarter of 2018 when CH3 Phase I is placed into service. CH3 Phase I is now 100% pre-leased both on critical load and CRSF. Based on this lease and our current estimate of CH3 developments costs, we forecast that the unlevered GAAP return on investment for CH3 will be between 11% and 12%.
• One pre-lease was for 7.20 MW and 45,158 CRSF in ACC9 Phase I. This lease will commence on May 1, 2017 as ACC9 Phase I is now in service. ACC9 Phase I is 70% leased on critical load and CRSF.
• One pre-lease was for 7.20 MW and 45,158 CRSF in ACC9 Phase II. This lease is expected to commence in the third quarter of 2017 when ACC9 Phase II is placed into service. ACC9 Phase II is now 50% pre-leased on both critical load and CRSF. Based on the pre-leases signed to date at ACC9 and our current estimate of ACC9 developments costs, we forecast that the unlevered GAAP return on investment of ACC9 will be between 11% and 12%.
Year to date, we:
- Executed six new leases, lease amendments and pre-leases, with a weighted average lease term of 8.1 years, totaling 34.42 MW and 200,765 CRSF, which are expected to generate approximately $36.7 million of annualized GAAP base rent revenue, which is equivalent to a GAAP rate of $89 per kW per month. These leases are expected to generate approximately $46.4 million of GAAP annualized revenue, which includes estimated amounts of operating expense recoveries, net of recovery of metered power, which results in a GAAP rate of $112 per kW per month.
- Commenced three leases totaling 5.62 MW and 38,943 CRSF.
We have commenced development of ACC10 Phase I in Ashburn, Virginia comprising 15.00 MW and 90,000 CRSF with expected delivery in the second quarter of 2018. We have also commenced development of CH3 Phase II comprising 12.80 MW and 89,000 CRSF with expected delivery in the second quarter of 2018.
Below is a summary of our projects currently under development:Data Center Phase Critical Load
Capacity (MW) Anticipated
Placed in Service Date Percentage Pre-Leased
CRSF / Critical LoadACC9 Phase I 14.4 Q2 2017 70% / 70%ACC9 Phase II 14.4 Q3 2017 50% / 50%ACC10 Phase I 15.0 Q2 2018 —SC1 Phase III 16.0 Q3 2017 100% / 100%TOR1 Phase IA 6.0 Q4 2017 —CH3 Phase I 14.4 Q1 2018 100% / 100%CH3 Phase II 12.8 Q2 2018 — 93.0
Balance Sheet and Liquidity
As of April 27, 2017, we had $264.1 million in borrowings under our revolving credit facility, leaving $485.9 million available for additional borrowings.
In February 2017, we announced the establishment of an "at-the-market" equity issuance program, or ATM program, through which we may issue and sell up to an aggregate of $200 million of shares of our common stock. As of March 31, 2017, no shares of common stock have been issued under this program.
The Board approved a common stock repurchase program of $100 million for 2017. As of March 31, 2017, no shares of common stock have been repurchased under this program.
Our first quarter 2017 dividend of $0.50 per share was paid on April 17, 2017 to shareholders of record as of April 3, 2017. The anticipated 2017 annualized dividend of $2.00 per share represents an estimated AFFO payout ratio of 63% and a yield of approximately 4.0% based on our current stock price.
Second Quarter and Full Year 2017 Guidance
GAAP earnings per share guidance for 2017 is now $1.75 to $1.87 per share compared to prior guidance of $1.75 to $1.95 per share.
Revised Normalized Funds From Operations (“FFO”) guidance is $3.01 to $3.13 per share compared to our prior guidance of $3.00 to $3.20 per share. The low end of the range assumes no revenue from speculative leases that commence in 2017 and the high end assumes $0.10 per share of revenue from speculative leases.
The revised midpoint of the company’s 2017 Normalized FFO guidance range is $3.07 per share which is $0.03 per share lower than prior guidance. This is due to the following:
- $0.10 per share from an assumed equity offering to fund CH3 Phase II and ACC10 Phase I, partially offset by
- Increased operating income, excluding depreciation, from the leases and pre-leases executed since the February 23, 2017 earnings release of $0.04 per share and
- Decreased interest expense of $0.03 per share from lower debt outstanding due to the assumed equity offering and higher capitalized interest related to the CH3 Phase II and ACC10 Phase I developments.
The high end of the 2017 Normalized FFO guidance range is $0.07 per share lower than prior guidance. This is due to the following items which were not assumed as a part of the initial 2017 guidance:
- $0.10 per share from an assumed equity offering to fund CH3 Phase II and ACC10 Phase I, partially offset by
- Decreased interest expense of $0.03 per share from lower debt outstanding and higher capitalized interest related to the CH3 Phase II and ACC10 Phase I developments.
The Normalized FFO guidance range for the second quarter of 2017 is $0.76 to $0.78 per share. The midpoint of $0.77 per share is equal to first quarter's Normalized FFO per share.
The assumptions underlying our guidance can be found on the last page of this earnings release.
First Quarter 2017 Conference Call and Webcast Information
We will host a conference call to discuss these results today, Thursday, April 27, 2017 at 11:00 a.m. ET. To access the live call, please visit the Investor Relations section of our website at www.dft.com or dial 1-844-420-8189 (domestic) or 1-478-219-0833 (international) and entering the conference ID #3450807. A replay will be available for seven days by dialing 1-855-859-2056 (domestic) or 1-404-537-3406 (international) and entering the conference ID #3450807. The webcast will be archived on our website for one year at www.dft.com on the Presentations & Webcasts page.
About DuPont Fabros Technology, Inc.
DuPont Fabros Technology, Inc. (NYSE:DFT) is a leading owner, developer, operator and manager of enterprise-class, carrier neutral, multi-tenant wholesale data centers. The Company's facilities are designed to offer highly specialized, efficient and safe computing environments in a low-cost operating model. The Company's customers outsource their mission critical applications and include national and international enterprises across numerous industries, such as technology, Internet content providers, media, communications, cloud-based, healthcare and financial services. The Company's 11 data centers are located in three major U.S. markets, which total 3.3 million gross square feet and 287 megawatts of available critical load to power the servers and computing equipment of its customers. The Company is in the process of expanding into two new markets. DuPont Fabros Technology, Inc., a real estate investment trust (REIT), is headquartered in Washington, DC. For more information, please visit www.dft.com.
Certain statements contained in this press release may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters described in these forward-looking statements include expectations regarding future events, results and trends and are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond our control. We face many risks that could cause our actual performance to differ materially from the results contemplated by our forward-looking statements, including, without limitation, the risk that the assumptions underlying our full year and second quarter 2017 guidance are not realized, the risks related to the leasing of available space to third-party customers, including delays in executing new leases, failure to negotiate leases on terms that will enable us to achieve our expected returns and declines in rental rates at new and existing facilities, risks related to the collection of accounts and notes receivable, the risk that we may be unable to obtain new financing on favorable terms to facilitate, among other things, future development projects, the risks commonly associated with the acquisition of development sites, construction and development of new facilities (including delays and/or cost increases associated with the completion of new developments), risks relating to obtaining required permits and compliance with permitting, zoning, land-use and environmental requirements, the risk that we will not declare and pay dividends as anticipated for future periods and the risk that we may not be able to maintain our qualification as a REIT for federal tax purposes. The periodic reports that we file with the Securities and Exchange Commission, including the annual report on Form 10-K for the year ended December 31, 2016 contain detailed descriptions of these and many other risks to which we are subject. These reports are available on our website at www.dft.com. Because of the risks described above and other unknown risks, our actual results, performance or achievements may differ materially from the results, performance or achievements contemplated by our forward-looking statements. The information set forth in this news release represents our expectations and intentions only as of the date of this press release. We assume no responsibility to issue updates to the contents of this press release.DUPONT FABROS TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands except share and per share data) Three months ended March 31, 2017 2016Revenues: Base rent$91,268 $82,533 Recoveries from tenants45,295 38,694 Other revenues2,921 2,922 Total revenues139,484 124,149 Expenses: Property operating costs40,191 35,955 Real estate taxes and insurance5,010 5,316 Depreciation and amortization28,207 25,843 General and administrative6,812 5,575 Other expenses2,705 2,349 Total expenses82,925 75,038 Operating income56,559 49,111 Interest: Expense incurred(11,459) (11,569) Amortization of deferred financing costs(825) (845)Net income44,275 36,697 Net income attributable to redeemable noncontrolling interests – operating partnership(5,712) (5,478)Net income attributable to controlling interests38,563 31,219 Preferred stock dividends(3,333) (6,811)Net income attributable to common shares$35,230 $24,408 Earnings per share – basic: Net income attributable to common shares$0.46 $0.36 Weighted average common shares outstanding76,670,425 66,992,995 Earnings per share – diluted: Net income attributable to common shares$0.45 $0.36 Weighted average common shares outstanding77,651,406 67,846,115 Dividends declared per common share$0.50 $0.47
DUPONT FABROS TECHNOLOGY, INC.
RECONCILIATIONS OF NET INCOME TO NAREIT FFO, NORMALIZED FFO AND AFFO (1)
(unaudited and in thousands except share and per share data) Three months ended March 31, 2017 2016Net income$44,275 $36,697 Depreciation and amortization28,207 25,843 Less: Non-real estate depreciation and amortization(204) (194)NAREIT FFO72,278 62,346 Preferred stock dividends(3,333) (6,811)NAREIT FFO attributable to common shares and common units68,945 55,535 Severance expense and equity acceleration532 — Normalized FFO attributable to common shares and common units69,477 55,535 Straight-line revenues, net of reserve1,718 (1,737)Amortization and write-off of lease contracts above and below market value(271) (116)Compensation paid with Company common shares2,372 1,769 Non-real estate depreciation and amortization204 194 Amortization of deferred financing costs825 845 Improvements to real estate(186) (2,099)Capitalized leasing commissions(276) (1,611)AFFO attributable to common shares and common units$73,863 $52,780 NAREIT FFO attributable to common shares and common units per share – diluted$0.76 $0.67 Normalized FFO attributable to common shares and common units per share – diluted$0.77 $0.67 Weighted average common shares and common units outstanding – diluted90,311,511 83,094,266
(1)Funds from operations, or FFO, is used by industry analysts and investors as a supplemental operating performance measure for REITs. We calculate FFO in accordance with the definition that was adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. FFO, as defined by NAREIT, represents net income determined in accordance with GAAP, excluding extraordinary items as defined under GAAP, impairment charges on depreciable real estate assets and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. We also present FFO attributable to common shares and OP units, which is FFO excluding preferred stock dividends. FFO attributable to common shares and OP units per share is calculated on a basis consistent with net income attributable to common shares and OP units and reflects adjustments to net income for preferred stock dividends. We use FFO as a supplemental performance measure because, in excluding real estate-related depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared period over period, captures trends in occupancy rates, rental rates and operating expenses. We also believe that, as a widely recognized measure of the performance of equity REITs, FFO may be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes real estate related depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. While FFO is a relevant and widely used measure of operating performance of equity REITs, other equity REITs may use different methodologies for calculating FFO and, accordingly, FFO as disclosed by such other REITs may not be comparable to our FFO. Therefore, we believe that in order to facilitate a clear understanding of our historical operating results, FFO should be examined in conjunction with net income as presented in the consolidated statements of operations. FFO should not be considered as an alternative to net income or to cash flow from operating activities (each as computed in accordance with GAAP) or as an indicator of our liquidity, nor is it indicative of funds available to meet our cash needs, including our ability to pay dividends or make distributions. We present FFO with adjustments to arrive at Normalized FFO. Normalized FFO is FFO attributable to common shares and units excluding severance expense and equity accelerations, gain or loss on early extinguishment of debt, gain or loss on derivative instruments and write-offs of original issuance costs for redeemed preferred shares. We also present FFO with supplemental adjustments to arrive at Adjusted FFO (“AFFO”). AFFO is Normalized FFO excluding straight-line revenue, compensation paid with Company common shares, below market lease amortization and write-offs net of above market lease amortization and write-offs, non-real estate depreciation and amortization, amortization of deferred financing costs, improvements to real estate and capitalized leasing commissions. AFFO does not represent cash generated from operating activities in accordance with GAAP and therefore should not be considered an alternative to net income as an indicator of our operating performance or as an alternative to cash flow provided by operations as a measure of liquidity and is not necessarily indicative of funds available to fund our cash needs including our ability to pay dividends. In addition, AFFO may not be comparable to similarly titled measurements employed by other companies. We use AFFO in management reports to provide a measure of REIT operating performance that can be compared to other companies using AFFO.
DUPONT FABROS TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands except share data) March 31,
2017 December 31,
2016 (unaudited) ASSETS Income producing property: Land$103,304 $105,890 Buildings and improvements3,019,725 3,018,361 3,123,029 3,124,251 Less: accumulated depreciation(689,099) (662,183)Net income producing property2,433,930 2,462,068 Construction in progress and property held for development493,442 330,983 Net real estate2,927,372 2,793,051 Cash and cash equivalents44,980 38,624 Rents and other receivables, net9,504 11,533 Deferred rent, net121,340 123,058 Deferred costs, net24,560 25,776 Prepaid expenses and other assets50,256 46,422 Total assets$3,178,012 $3,038,464 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Line of credit$197,819 $50,926 Mortgage notes payable, net of deferred financing costs109,592 110,733 Unsecured term loan, net of deferred financing costs249,089 249,036 Unsecured notes payable, net of discount and deferred financing costs837,895 837,323 Accounts payable and accrued liabilities29,647 36,909 Construction costs payable75,884 56,428 Accrued interest payable6,273 11,592 Dividend and distribution payable46,426 46,352 Prepaid rents and other liabilities72,449 81,062 Total liabilities1,625,074 1,480,361 Redeemable noncontrolling interests – operating partnership579,329 591,101 Commitments and contingencies— — Stockholders’ equity: Preferred stock, $.001 par value, 50,000,000 shares authorized: Series C cumulative redeemable perpetual preferred stock, 8,050,000 shares issued and
outstanding at March 31, 2017 and December 31, 2016201,250 201,250 Common stock, $.001 par value, 250,000,000 shares authorized, 77,836,170 shares issued
and outstanding at March 31, 2017 and 75,914,763 shares issued and outstanding at
December 31, 201678 76 Additional paid in capital773,321 766,732 Retained earnings— — Accumulated other comprehensive loss(1,040) (1,056)Total stockholders’ equity973,609 967,002 Total liabilities and stockholders’ equity$3,178,012 $3,038,464
DUPONT FABROS TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands) Three months ended March 31, 2017 2016Cash flow from operating activities Net income$44,275 $36,697 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization28,207 25,843 Straight-line revenues, net of reserve1,718 (1,737)Amortization of deferred financing costs825 845 Amortization and write-off of lease contracts above and below market value(271) (116)Compensation paid with Company common shares2,536 1,769 Changes in operating assets and liabilities Rents and other receivables2,029 (97) Deferred costs(276) (1,611) Prepaid expenses and other assets(3,907) 61 Accounts payable and accrued liabilities(7,274) (4,599) Accrued interest payable(5,319) (5,309) Prepaid rents and other liabilities(7,931) (407)Net cash provided by operating activities54,612 51,339 Cash flow from investing activities Investments in real estate – development(137,223) (52,302)Acquisition of real estate – related party— (20,168)Interest capitalized for real estate under development(4,051) (3,183)Improvements to real estate(186) (2,099)Additions to non-real estate property(68) (123)Net cash used in investing activities(141,528) (77,875)Cash flow from financing activities Line of credit: Proceeds146,549 60,000 Repayments— (60,000)Mortgage notes payable: Repayments(1,250) — Payments of financing costs(34) — Issuance of common stock, net of offering costs— 275,797 Equity compensation (payments) proceeds(3,975) 7,007 Dividends and distributions: Common shares(37,939) (31,070)Preferred shares(3,333) (6,811)Redeemable noncontrolling interests – operating partnership(6,746) (7,084)Net cash provided by financing activities93,272 237,839 Net increase in cash and cash equivalents6,356 211,303 Cash and cash equivalents, beginning of period38,624 31,230 Cash and cash equivalents, ending of period$44,980 $242,533 Supplemental information: Cash paid for interest, net of amounts capitalized$16,778 $16,880 Deferred financing costs capitalized for real estate under development$302 $217 Construction costs payable capitalized for real estate under development$75,884 $21,247 Redemption of operating partnership units$77,894 $6,101 Adjustments to redeemable noncontrolling interests – operating partnership$66,249 $131,582
DUPONT FABROS TECHNOLOGY, INC.
As of April 1, 2017 Property Property Location Year Built/
Area (2) Computer
(2) CRSF %
(3) CRSF %
MW (5) Critical
(4)Stabilized (1) ACC2 Ashburn, VA 2001/2005 87,000 53,000 100% 100% 10.4 100% 100%ACC3 Ashburn, VA 2001/2006 147,000 80,000 100% 100% 13.9 100% 100%ACC4 Ashburn, VA 2007 347,000 172,000 100% 100% 36.4 97% 97%ACC5 Ashburn, VA 2009-2010 360,000 176,000 99% 99% 36.4 100% 100%ACC6 Ashburn, VA 2011-2013 262,000 130,000 100% 100% 26.0 100% 100%ACC7 Ashburn, VA 2014-2016 446,000 238,000 100% 100% 41.6 100% 100%CH1 Elk Grove Village, IL 2008-2012 485,000 231,000 100% 100% 36.4 100% 100%CH2 Elk Grove Village, IL 2015-2016 328,000 158,000 100% 100% 26.8 100% 100%SC1 Phases I-II Santa Clara, CA 2011-2015 360,000 173,000 100% 100% 36.6 100% 100%VA3 Reston, VA 2003 256,000 147,000 94% 94% 13.0 95% 95%VA4 Bristow, VA 2005 230,000 90,000 100% 100% 9.6 100% 100%Total Operating Properties 3,308,000 1,648,000 99% 99% 287.1 99% 99%
(1)Stabilized operating properties are either 85% or more leased and commenced or have been in service for 24 months or greater.(2)Gross building area is the entire building area, including CRSF (the portion of gross building area where our customers' computer servers are located), common areas, areas controlled by us (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to our customers.(3)Percentage leased is expressed as a percentage of CRSF or critical load, as applicable, that is subject to an executed lease. Leases executed as of April 1, 2017 represent $383 million of base rent on a GAAP basis and $389 million of base rent on a cash basis over the next twelve months. Both amounts include $19 million of revenue from management fees over the next twelve months.(4)Percentage commenced is expressed as a percentage of CRSF or critical load, as applicable, where the lease has commenced under GAAP.(5)Critical load (also referred to as IT load or load used by customers' servers or related equipment) is the power available for exclusive use by customers expressed in terms of megawatt, or MW, or kilowatt, or kW (One MW is equal to 1,000 kW).
DUPONT FABROS TECHNOLOGY, INC.
As of April 1, 2017 The following table sets forth a summary schedule of lease expirations at our operating properties for each of the ten calendar years beginning with 2017. The information set forth in the table below assumes that customers exercise no renewal options and takes into account customers’ early termination options in determining the life of their leases under GAAP. Year of Lease Expiration Number
Expiring (1) CRSF of
(in thousands) (2) % of
CRSF Total kW
Leases (2) % of
Leased kW % of
Base Rent (3)2017 (4) 3 19 1.2% 3,846 1.3% 1.5%2018 20 177 10.8% 33,448 11.7% 12.3%2019 26 330 20.2% 57,404 20.1% 21.6%2020 15 182 11.1% 31,754 11.1% 11.4%2021 17 293 17.9% 51,514 18.1% 17.5%2022 10 140 8.6% 24,509 8.6% 8.7%2023 8 92 5.6% 13,305 4.7% 4.2%2024 9 138 8.4% 23,479 8.2% 7.9%2025 4 47 2.9% 7,750 2.7% 3.4%2026 7 55 3.4% 10,134 3.6% 4.0%After 2026 8 164 9.9% 28,244 9.9% 7.5%Total 127 1,637 100% 285,387 100% 100%
(1)Represents 32 customers with 127 lease expiration dates. One additional customer has executed a pre-lease at ACC9 and will be our 33rd customer.(2)CRSF is that portion of gross building area where customers locate their computer servers. One MW is equal to 1,000 kW.(3)Annualized base rent represents the monthly contractual base rent (defined as cash base rent before abatements) multiplied by 12 for commenced leases as of April 1, 2017.(4)A customer at ACC4 whose lease expires on July 31, 2017 has informed us that it does not intend to renew this lease. This lease is for 1.14 MW and 5,400 CRSF. Additionally, a customer at ACC6, whose lease expires on August 31, 2017, has informed us that it does not intend to renew this lease. This lease is for 0.54 MW and 2,523 CRSF. These leases total 0.9% of Annualized Base Rent. We are marketing these computer rooms for re-lease.
DUPONT FABROS TECHNOLOGY, INC.
Leasing Statistics - New Leases Period Number of Leases Total CRSF Leased (1) Total MW Leased (1) Q1 2017 3 38,943 5.62Q4 2016 1 18,000 2.88Q3 2016 2 16,319 2.42Q2 2016 4 72,657 12.52Trailing Twelve Months 10 145,919 23.44 Q1 2016 7 160,686 33.11
Leasing Statistics - Renewals Period Number of
Renewals Total CRSF
Renewed (1) Total MW
Renewed (1) GAAP Rent
change (2) Cash Rent
Change (2) Q1 2017 — — — —% —%Q4 2016 1 13,696 1.30 5.8% 4.0%Q3 2016 2 16,400 3.41 1.2% 3.0%Q2 2016 4 21,526 2.72 3.5% 2.9%Trailing Twelve Months 7 51,622 7.43 Q1 2016 1 2,517 0.54 14.9% 3.0%
(1)CRSF is that portion of gross building area where customers locate their computer servers. One MW is equal to 1,000 kW.(2)GAAP rent change compares the change in annualized base rent before and after the renewal. Cash rent change compares cash base rent at renewal execution to cash base rent at the start of the renewal period.
Booked Not Billed
($ in thousands) The following table outlines the incremental and annualized revenue excluding direct electric from leases that have been executed but have not been billed as of March 31, 2017. 2017 2018 Total Incremental Revenue $12,671 $— Annualized Revenue $28,100 $— $28,100
The table above excludes the three pre-leases that were executed in April 2017 totaling 28.80 MW and 161,822 CRSF in our ACC9 and CH3 data centers. Including these pre-leases and the leases included in the table above, incremental revenue in 2017 and 2018 totals $19.7 million and $19.4 million, respectively, and annualized revenue in 2017 and 2018 totals $46.5 million and $20.2 million, respectively, for a total of $66.7 million. DUPONT FABROS TECHNOLOGY, INC. Top 15 Customers
As of April 1, 2017 The following table presents our top 15 customers based on annualized monthly contractual base rent at our operating properties as of April 1, 2017: Customer Number
Term % of
Base Rent (1)1Microsoft 9 3 6.5 24.9%2Facebook 4 1 3.9 21.0%3Fortune 25 Investment Grade-Rated Company 3 3 3.7 10.9%4Rackspace 3 2 8.3 8.8%5Fortune 500 leading Software as a Service (SaaS) Provider, Not Rated 4 2 6.2 8.4%6Yahoo! (2) 1 1 1.1 5.9%7Server Central 1 1 4.4 2.4%8Fortune 50 Investment Grade-Rated Company 2 1 3.6 1.9%9Dropbox 1 1 1.8 1.6%10IAC 1 1 2.1 1.5%11Symantec 2 1 2.2 1.3%12GoDaddy 1 1 9.5 1.1%13Anexio 3 1 6.8 1.0%14UBS 1 1 8.3 1.0%15Sanofi Aventis 2 1 4.3 0.9%Total 92.6%
(1)Annualized base rent represents monthly contractual base rent for commenced leases (defined as cash base rent before abatements) multiplied by 12 for commenced leases as of April 1, 2017.(2) Comprised of a lease at ACC4 that has been fully subleased to another DFT customer.
DUPONT FABROS TECHNOLOGY, INC.
Same Store Analysis
($ in thousands) Same Store PropertiesThree Months Ended 31-Mar-17 31-Mar-16 % Change 31-Dec-16 % ChangeRevenue: Base rent$91,268 $79,569 14.7% $90,513 0.8% Recoveries from tenants45,295 36,671 23.5% 44,904 0.9% Other revenues632 437 44.6% 725 (12.8)%Total revenues137,195 116,677 17.6% 136,142 0.8% Expenses: Property operating costs40,191 33,625 19.5% 40,963 (1.9)% Real estate taxes and insurance4,985 4,225 18.0% 4,029 23.7% Other expenses58 114 N/M 52 11.5%Total expenses45,234 37,964 19.1% 45,044 0.4% Net operating income (1)91,961 78,713 16.8% 91,098 0.9% Straight-line revenues, net of reserve1,718 (1,964) N/M 1,081 N/M Amortization and write-off of lease contracts above and below market value(271) (116) N/M (91) N/M Cash net operating income (1)$93,408 $76,633 21.9% $92,088 1.4% Note: Same Store Properties represent those properties placed into service on or before January 1, 2016. NJ1 is excluded as it was sold in June 2016. Same Store, Same Capital PropertiesThree Months Ended 31-Mar-17 31-Mar-16 % Change 31-Dec-16 % ChangeRevenue: Base rent$70,875 $70,657 0.3% $70,979 (0.1)% Recoveries from tenants38,557 34,611 11.4% 39,051 (1.3)% Other revenues471 392 20.2% 466 1.1%Total revenues109,903 105,660 4.0% 110,496 (0.5)% Expenses: Property operating costs34,099 31,275 9.0% 35,311 (3.4)% Real estate taxes and insurance4,127 3,889 6.1% 3,440 20.0% Other expenses20 107 N/M 17 17.6%Total expenses38,246 35,271 8.4% 38,768 (1.3)% Net operating income (1)71,657 70,389 1.8% 71,728 (0.1)% Straight-line revenues, net of reserve4,015 870 N/M 3,858 4.1% Amortization and write-off of lease contracts above and below market value(271) (116) N/M (91) N/M Cash net operating income (1)$75,401 $71,143 6.0% $75,495 (0.1)% Note: Same Store, Same Capital properties represent those properties placed into service on or before January 1, 2016 and have less than 10% of additional critical load developed after January 1, 2016. Excludes ACC7 and CH2. NJ1 is also excluded as it was sold in June 2016.
(1) See next page for a reconciliation of Net Operating Income and Cash Net Operating Income to GAAP measures.
DUPONT FABROS TECHNOLOGY, INC.
Same Store Analysis - Reconciliations of Operating Income
to Net Operating Income and Cash Net Operating Income (1)
($ in thousands) Reconciliation of Operating Income to Same Store Net Operating Income and Cash Net Operating Income Three Months Ended 31-Mar-17 31-Mar-16 % Change 31-Dec-16 % ChangeOperating income$56,559 $49,111 15.2% $56,386 0.3% Add-back: non-same store operating loss7,239 4,681 54.6% 6,633 9.1% Same Store: Operating income63,798 53,792 18.6% 63,019 1.2% Depreciation and amortization28,163 24,921 13.0% 28,079 0.3% Net operating income91,961 78,713 16.8% 91,098 0.9% Straight-line revenues, net of reserve1,718 (1,964) N/M 1,081 N/M Amortization and write-off of lease contracts above and below market value(271) (116) N/M (91) N/M Cash net operating income$93,408 $76,633 21.9% $92,088 1.4% Reconciliation of Operating Income to Same Store, Same Capital Net Operating Income and Cash Net Operating Income Three Months Ended 31-Mar-17 31-Mar-16 % Change 31-Dec-16 % ChangeOperating income$56,559 $49,111 15.2% $56,386 0.3% Less: non-same store, same capital operating income(7,629) (1,400) N/M (7,354) 3.7% Same Store, Same Capital: Operating income48,930 47,711 2.6% 49,032 (0.2)% Depreciation and amortization22,727 22,678 0.2% 22,696 0.1% Net operating income71,657 70,389 1.8% 71,728 (0.1)% Straight-line revenues, net of reserve4,015 870 N/M 3,858 4.1% Amortization and write-off of lease contracts above and below market value(271) (116) N/M (91) N/M Cash net operating income$75,401 $71,143 6.0% $75,495 (0.1)%
(1)Net Operating Income ("NOI") represents total revenues less property operating costs, real estate taxes and insurance, and other expenses (each as reflected in the consolidated statements of operations) for the properties included in the analysis. Cash Net Operating Income ("Cash NOI") is NOI less straight-line revenues, net of reserve and amortization of lease contracts above and below market value for the properties included in the analysis. We use NOI and Cash NOI as supplemental performance measures because, in excluding depreciation and amortization, impairment charges on depreciable real estate assets and gains and losses from property dispositions, each provides a performance measure that, when compared period over period, captures trends in occupancy rates, rental rates and operating expenses. However, because NOI and Cash NOI exclude depreciation and amortization, impairment charges on depreciable real estate assets and gains and losses from property dispositions, and capture neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially impact our results from operations, the utility of NOI and Cash NOI as a measure of our performance is limited. Other REITs may not calculate NOI and Cash NOI in the same manner we do and, accordingly, our NOI and Cash NOI may not be comparable to the NOI and Cash NOI of other REITs. NOI and Cash NOI should not be considered as an alternative to operating income (as computed in accordance with GAAP).
DUPONT FABROS TECHNOLOGY, INC.
As of March 31, 2017
($ in thousands) Property Property
Area (1) CRSF (2) Critical
MW (3) Estimated
Total Cost (4) Construction
in Progress &
Land Held for
leased Current Development Projects ACC9 Phase I (6) Ashburn, VA 163,000 90,000 14.4 $126,000 - $130,000 $114,618 20% 20%ACC9 Phase II (7) Ashburn, VA 163,000 90,000 14.4 126,000 - 130,000 95,825 —% —%CH3 Phase I (8) Elk Grove Village, IL 153,000 71,000 14.4 136,000 - 142,000 31,926 —% —%SC1 Phase III Santa Clara, CA 111,000 64,000 16.0 163,000 - 167,000 113,132 100% 100%TOR1 Phase IA Vaughan, ON 112,000 35,000 6.0 58,000 - 64,000 12,227 —% —% 702,000 350,000 65.2 609,000 - 633,000 367,728 Current Development Project - Shell Only ACC10 (9) Ashburn, VA 289,000 163,000 27.0 64,000 - 70,000 14,214 289,000 163,000 27.0 64,000 - 70,000 14,214 Future Development Projects/Phases CH3 Phase II (10) Elk Grove Village, IL 152,000 89,000 12.8 70,000 - 74,000 31,687 TOR1 Phase IB/C Vaughan, ON 225,000 78,000 12.0 82,000 - 90,000 24,455 TOR1 Phase II Vaughan, ON 374,000 113,000 16.5 32,074 32,074 751,000 280,000 41.3 184,074 - 196,074 88,216 Land Held for Development (11) ACC8 Ashburn, VA 100,000 50,000 10.4 4,252 ACC11 Ashburn, VA 150,000 80,000 16.0 4,805 OR1 Hillsboro, OR 765,000 329,000 48.0 7,471 OR2 Hillsboro, OR 765,000 329,000 48.0 6,756 1,780,000 788,000 122.4 23,284 Total 3,522,000 1,581,000 255.9 $493,442
(1)Gross building area is the entire building area, including CRSF (the portion of gross building area where our customers’ computer servers are located), common areas, areas controlled by us (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to our customers. The respective amounts listed for each of the “Land Held for Development” sites are estimates.(2)CRSF is that portion of gross building area where customers locate their computer servers. The respective amounts listed for each of the “Land Held for Development” sites are estimates.(3)Critical load (also referred to as IT load or load used by customers’ servers or related equipment) is the power available for exclusive use by customers expressed in terms of MW or kW (1 MW is equal to 1,000 kW). The respective amounts listed for each of the “Land Held for Development” sites are estimates.(4)Current development projects include land, capitalization for construction and development and capitalized interest and operating carrying costs, as applicable, upon completion. Future development projects/phases include land, shell and underground work through the opening of the phase(s) that are either under current development or in service.(5)Amount capitalized as of March 31, 2017. Future development projects/phases include land, shell and underground work through the opening of the phase(s) that are either under current development or in service.(6)As of April 27, 2017, ACC9 Phase I was 70% pre-leased based on CRSF and critical load.(7)As of April 27, 2017, ACC9 Phase II was 50% pre-leased based on CRSF and critical load.(8)As of April 27, 2017, CH3 Phase I was 100% pre-leased based on CRSF and critical load.(9)In April 2017, we commenced development of ACC10 Phase I, comprising 15.0 MW of critical load.(10)In April 2017, we commenced development of CH3 Phase II.(11)Amounts listed for gross building area, CRSF and critical load are current estimates.
DUPONT FABROS TECHNOLOGY, INC.
Debt Summary as of March 31, 2017
($ in thousands) March 31, 2017 Amounts (1) % of Total Rates Maturities
(years)Secured$110,000 8% 2.5% 1.0Unsecured1,297,819 92% 4.7% 4.7Total$1,407,819 100% 4.5% 4.4 Fixed Rate Debt: Unsecured Notes due 2021$600,000 42% 5.9% 4.5Unsecured Notes due 2023 (2)250,000 18% 5.6% 6.2 Fixed Rate Debt850,000 60% 5.8% 5.0Floating Rate Debt: Unsecured Credit Facility197,819 14% 2.5% 3.3Unsecured Term Loan250,000 18% 2.5% 4.8ACC3 Term Loan110,000 8% 2.5% 1.0 Floating Rate Debt557,819 40% 2.5% 3.5 Total$1,407,819 100% 4.5% 4.4
We capitalized interest and deferred financing cost amortization of $4.4 million during the three months ended March 31, 2017. (1)Principal amounts exclude deferred financing costs. (2)Principal amount excludes original issue discount of $1.6 million as of March 31, 2017.
Debt Principal Repayments as of March 31, 2017
($ in thousands) Year Fixed Rate (1) Floating Rate (1) Total (1) % of Total Rates2017 — 7,500 (4) 7,500 0.5% 2.5%2018 — 102,500 (4) 102,500 7.3% 2.5%2019 — — — —% —%2020 — 197,819(5) 197,819 14.0% 2.5%2021 600,000 (2) — 600,000 42.6% 5.9%2022 — 250,000(6) 250,000 17.8% 2.5%2023 250,000(3) — 250,000 17.8% 5.6%Total $850,000 $557,819 $1,407,819 100.0% 4.5%
(1)Principal amounts exclude deferred financing costs.(2)The 5.875% Unsecured Notes due 2021 mature on September 15, 2021.(3)The 5.625% Unsecured Notes due 2023 mature on June 15, 2023. Principal amount excludes original issue discount of $1.6 million as of March 31, 2017.(4)The ACC3 Term Loan matures on March 27, 2018 with no extension option. Quarterly principal payments of $1.25 million began on April 1, 2016, increased to $2.5 million on April 1, 2017 and continue through maturity.(5)The Unsecured Credit Facility matures on July 25, 2020 with a one-year extension option.(6)The Unsecured Term Loan matures on January 21, 2022 with no extension option.
DUPONT FABROS TECHNOLOGY, INC.
Selected Unsecured Debt Metrics(1) 3/31/17 12/31/16Interest Coverage Ratio (not less than 2.0)5.2 5.4 Total Debt to Gross Asset Value (not to exceed 60%)36.3% 34.0% Secured Debt to Total Assets (not to exceed 40%)2.8% 3.0% Total Unsecured Assets to Unsecured Debt (not less than 150%)206% 231%
(1)These selected metrics relate to DuPont Fabros Technology, LP's outstanding unsecured notes. DuPont Fabros Technology, Inc. is the general partner of DuPont Fabros Technology, LP.
Capital Structure as of March 31, 2017
(in thousands except per share data) Line of Credit $197,819 Mortgage Notes Payable 110,000 Unsecured Term Loan 250,000 Unsecured Notes 850,000 Total Debt 1,407,819 23.3%Common Shares87% 77,836 Operating Partnership (“OP”) Units13% 11,683 Total Shares and Units100% 89,519 Common Share Price at March 31, 2017 $49.59 Common Share and OP Unit Capitalization $4,439,247 Preferred Stock ($25 per share liquidation preference) 201,250 Total Equity 4,640,497 76.7%Total Market Capitalization $6,048,316 100.0%
DUPONT FABROS TECHNOLOGY, INC.
Common Share and OP Unit
Weighted Average Amounts Outstanding Q1 2017 Q1 2016Weighted Average Amounts Outstanding for EPS Purposes: Common Shares - basic76,670,425 66,992,995Effect of dilutive securities980,981 853,120Common Shares - diluted77,651,406 67,846,115 Weighted Average Amounts Outstanding for FFO,
Normalized FFO and AFFO Purposes: Common Shares - basic76,670,425 66,992,995OP Units - basic12,425,238 15,035,445Total Common Shares and OP Units89,095,663 82,028,440 Effect of dilutive securities1,215,848 1,065,826Common Shares and Units - diluted90,311,511 83,094,266 Period Ending Amounts Outstanding: Common Shares77,836,170 OP Units11,682,368 Total Common Shares and Units89,518,538
DUPONT FABROS TECHNOLOGY, INC.
2017 Guidance The earnings guidance/projections provided below are based on current expectations and are forward-looking. Expected Q2 2017
per share Expected 2017
per shareNet income per common share and common unit - diluted$0.45 to $0.47 $1.75 to $1.87Depreciation and amortization, net0.31 1.25NAREIT FFO per common share and common unit - diluted (1)$0.76 to $0.78 $3.00 to $3.12Severance and equity acceleration— 0.01Normalized FFO per common share and common unit - diluted (1)$0.76 to $0.78 $3.01 to $3.13 Straight-line revenues, net of reserve— 0.04Amortization of lease contracts above and below market value— —Compensation paid with Company common shares0.03 0.10Non-real estate depreciation and amortization— 0.01Amortization of deferred financing costs0.01 0.04Improvements to real estate(0.02) (0.05)Capitalized leasing commissions(0.01) (0.05)
2017 Debt Assumptions Weighted average debt outstanding $1,518.0 millionWeighted average interest rate (one-month LIBOR avg. 1.12%, one-month CDOR avg. 0.92%) 4.94%Total interest costs $75.0 millionAmortization of deferred financing costs 4.9 millionInterest expense capitalized (20.4) millionDeferred financing costs amortization capitalized (1.3) millionTotal interest expense after capitalization $58.2 million 2017 Other Guidance Assumptions Total revenues $570 to $585 millionBase rent (included in total revenues) $375 to $385 millionGeneral and administrative expense $26 to $27 millionInvestments in real estate - development (2) $725 to $775 millionImprovements to real estate excluding development $5 millionPreferred stock dividends $13 millionAnnualized common stock dividend $2.00 per shareWeighted average common shares and OP units - diluted 93.5 millionAcquisitions of income producing properties No amounts budgeted
(1)For information regarding NAREIT FFO and Normalized FFO, see “Reconciliations of Net Income to FFO, Normalized FFO and AFFO” in this earnings release.(2)Represents cash spend expected in 2017 for ACC9 Phases I and II, ACC10 Phase I, CH3 Phases I and II, SC1 Phase III and TOR1 Phase 1A, which are currently in development and OR1 Phase I, which is a planned future development that requires board approval. Note: This press release supplement contains certain non-GAAP financial measures that we believe are helpful in understanding our business, as further discussed within this press release supplement. These financial measures, which include NAREIT Funds From Operations, Normalized Funds From Operations, Adjusted Funds From Operations, Net Operating Income, Cash Net Operating Income, NAREIT Funds From Operations per share and Normalized Funds From Operations per share, should not be considered as an alternative to net income, operating income, earnings per share or any other GAAP measurement of performance or as an alternative to cash flows from operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity. Information included in this supplemental package is unaudited. CONTACT: Investor Relations Contacts:
Jeffrey H. Foster
Chief Financial Officer
Vice President, Investor Relations
GasLog Partners LP Reports Financial Results for the Three-Month Period Ended March 31, 2017 and Increases Cash Distribution
Monaco, April 27, 2017, GasLog Partners LP ("GasLog Partners" or the "Partnership") (NYSE: GLOP), an international owner and operator of liquefied natural gas ("LNG") carriers, today reported its financial results for the three-month period ended March 31, 2017.
- Successfully completed an equity offering and issuance of general partner units, raising total net proceeds of $79.6 million.
- Announced the pending acquisition of the GasLog Greece from GasLog Ltd. ("GasLog") for $219.0 million, including $1.0 million for positive net working capital, with attached long-term charter to a subsidiary of Royal Dutch Shell plc ("Shell").
- Increased cash distribution of $0.50 per common unit for the first quarter of 2017, 2% higher than the fourth quarter of 2016 and 5% higher than the first quarter of 2016.
- Quarterly Revenues, Profit, Adjusted Profit(1) and EBITDA(1) of $57.0 million, $21.0 million, $20.4 million and $42.0 million, respectively.
- Highest-ever quarterly Partnership Performance(2) Results for Revenues and EBITDA(1).
- Distribution coverage ratio(3) of 1.17x.
(1) Adjusted Profit and EBITDA are non-GAAP financial measures, and should not be used in isolation or as a substitute for GasLog Partners' financial results presented in accordance with International Financial Reporting Standards ("IFRS"). For definition and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with IFRS, please refer to Exhibit III at the end of this press release.
(2) Partnership Performance represents the results attributable to GasLog Partners which are non-GAAP financial measures. For definition and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with IFRS, please refer to Exhibit II at the end of this press release.
(3) Distribution coverage ratio represents the ratio of Distributable cash flow to the cash distribution declared. For definition and reconciliation of Distributable cash flow to the most directly comparable financial measure calculated and presented in accordance with IFRS, please refer to Exhibit III at the end of this press release.
Mr. Andrew Orekar, Chief Executive Officer, commented: "I am delighted with what GasLog Partners has achieved thus far in 2017. We announced the pending acquisition of the GasLog Greece, which is expected to expand the Partnership's fleet to ten wholly owned LNG carriers and to extend our average remaining charter duration. The first full quarter contribution of the GasLog Seattle, which the Partnership acquired on November 1, 2016, enabled GasLog Partners to deliver our highest-ever quarterly Partnership Performance Results for Revenues and EBITDA. We also completed equity and debt financings in January and April 2017, respectively, with the net proceeds to be used to fund the dropdown of the GasLog Greece and to repay the majority of the junior tranche of the credit agreement entered into on February 18, 2016 (the "Five Vessel Refinancing"), originally due in April 2018.
As a result of these actions, we are increasing our quarterly cash distribution to $0.50 per unit, which represents a 33% increase since our initial public offering ("IPO"), or an 11% compound annual growth rate. Our announced acquisition of the GasLog Greece is supportive of the Partnership's guidance to grow unitholder distributions at a 10% to 15% compound annual rate since IPO. We affirm this growth guidance, which, if approved, would result in an annualized distribution of $2.09 per unit or higher by the fourth quarter of 2017.
Following the expected closing of the GasLog Greece acquisition in the second quarter of 2017, the Partnership will have a dropdown pipeline of twelve vessels which, assuming the execution of further dropdowns, can support future growth of the Partnership's fleet and distributable cash flows."
Completion of Equity Offering
On January 27, 2017, GasLog Partners completed an equity offering of 3,750,000 common units at a public offering price of $20.50 per unit. In addition, the option to purchase additional shares was partially exercised by the underwriter on February 24, 2017, resulting in 120,000 additional units being sold at the same price. The aggregate net proceeds from this offering, including the partial exercise by the underwriters of the option to purchase additional shares, after deducting underwriting discounts and other offering expenses, were $78.0 million. In connection with the offering, the Partnership also issued 78,980 general partner units to its general partner in order for GasLog to retain its 2.0% general partner interest. The net proceeds from the issuance of the general partner units were $1.6 million.
Pending acquisition of the GasLog Greece
On March 23, 2017, GasLog Partners signed an agreement to acquire 100% of the shares in the entity that owns and charters to Shell the GasLog Greece from GasLog. The GasLog Greece is a 174,000 cubic meter ("cbm") tri-fuel diesel electric ("TFDE") LNG carrier built in 2016 and operated by GasLog since delivery. The vessel is currently on a multi-year time charter with a subsidiary of Shell through March 2026 and Shell has an option to extend the charter for a period of five years.
The aggregate purchase price for the acquisition will be $219.0 million, which includes $1.0 million for positive net working capital balances transferred with the vessel. GasLog Partners expects to finance the acquisition with cash on hand, including proceeds from its recent equity offering, and the assumption of the GasLog Greece's outstanding indebtedness of $151.4 million.
Financial SummaryIFRS Common Control Reported Results(1) For the three months ended % Change from (All amounts expressed in thousands of U.S. dollars) March 31,
2016 December 31,
2016 March 31, 2017 March 31,
2016 December 31,
2016 Revenues 56,127 57,911 56,993 2% (2% ) Profit 16,013 25,467 21,022 31% (17% ) Adjusted Profit(2) 18,392 21,295 20,374 11% (4% ) EBITDA(2) 39,638 43,145 42,026 6% (3% )
(1) "IFRS Common Control Reported Results" represent the results of GasLog Partners in accordance with IFRS. Such results include amounts related to vessels currently owned by the Partnership for the periods prior to their respective transfer to GasLog Partners from GasLog, as the transfer of such vessels was accounted for as a reorganization of entities under common control for IFRS accounting purposes. The unaudited condensed consolidated financial statements of the Partnership accompanying this press release are prepared under IFRS on this basis.
(2) Adjusted Profit and EBITDA are non-GAAP financial measures. For definition and reconciliation of these measures to the most directly comparable financial measure presented in accordance with IFRS, please refer to Exhibit III at the end of this press release.
The decrease in profit in the first quarter of 2017 as compared to the fourth quarter of 2016 is mainly attributable to a decrease of $3.5 million in unrealized gain on the interest rate swaps signed in November 2016, combined with a decrease in revenues due to fewer calendar days in the first quarter of 2017.
The increase in profit in the first quarter of 2017 as compared to the same period in 2016 is mainly attributable to the increase in the profit from operations, mainly attributable to the scheduled dry-dockings and planned repairs performed in the first quarter of 2016, as well as an unrealized gain on interest rate swaps in the first quarter of 2017 as compared to an unrealized loss for the same period in 2016.Partnership Performance Results(1) For the three months ended % Change from (All amounts expressed in thousands of U.S. dollars) March 31,
2016 December 31,
2016 March 31, 2017 March 31,
2016 December 31,
2016 Revenues 49,358 55,978 56,993 15% 2% Profit 16,191 24,826 21,022 30% (15% ) Adjusted Profit(2) 16,191 20,654 20,374 26% (1% ) EBITDA(2) 34,457 41,632 42,026 22% 1% Distributable cash flow(2) 18,867 23,541 23,496 25% 0% Cash distributions declared 15,712 19,549 20,121 28% 3%
(1) "Partnership Performance Results" represent the results attributable to GasLog Partners. Such results are non-GAAP measures and exclude amounts related to vessels currently owned by the Partnership for the periods prior to their respective transfer to GasLog Partners from GasLog, as the Partnership is not entitled to the cash or results generated in the periods prior to such transfers. Such results are included in the GasLog Partners' results in accordance with IFRS because the transfer of the vessel owning entities by GasLog to the Partnership represents a reorganization of entities under common control and the Partnership reflects such transfers retroactively under IFRS. GasLog Partners believes that these non-GAAP financial measures provide meaningful supplemental information to both management and investors regarding the financial and operating performance of the Partnership necessary to understand the underlying basis for the calculations of the quarterly distribution and earnings per unit, which similarly exclude the results of vessels prior to their transfer to the Partnership. These non-GAAP financial measures should not be viewed in isolation or as substitutes to the equivalent GAAP measures presented in accordance with IFRS, but should be used in conjunction with the most directly comparable IFRS Common Control Reported Results. For definitions and reconciliations of these measurements to the most directly comparable financial measures presented in accordance with IFRS, please refer to Exhibit II at the end of this press release.
(2) Adjusted Profit, EBITDA and Distributable cash flow are non-GAAP financial measures, and should not be used in isolation or as a substitute for GasLog Partners' financial results presented in accordance with IFRS. For definition and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with IFRS, please refer to Exhibit III at the end of this press release.
The decrease in profit in the first quarter of 2017 as compared to the fourth quarter of 2016 is mainly attributable to a decrease of $3.5 million in unrealized gain on the interest rate swaps signed in November 2016.
The increases in the Partnership Performance Results for the first quarter of 2017 as compared to the same period in 2016 are mainly attributable to the profit from operations of the GasLog Seattle, acquired by the Partnership on November 1, 2016, and also to the increase in profit from operations of the existing fleet, mainly due to the scheduled dry-dockings and planned repairs performed in the first quarter of 2016, which were partially offset by the interest expense with respect to the outstanding debt of the GasLog Seattle.
The Partnership Performance Results reported in the first quarter of 2017 are the same as the IFRS Common Control Reported Results for the period since there were no vessel acquisitions from GasLog during the quarter, which would have resulted in retrospective adjustment of the historical financial statements.
On April 26, 2017, the board of directors of GasLog Partners approved and declared a quarterly cash distribution of $0.50 per common unit for the quarter ended March 31, 2017. The cash distribution is payable on May 12, 2017, to all unitholders of record as of May 8, 2017.
End of Subordination Period
The subordination period on the existing 9,822,358 subordinated units held by GasLog will extend until the second business day following the aforementioned cash distribution. Upon expiration of the subordination period, each outstanding subordinated unit (100% held by GasLog) will automatically convert into one common unit and will then participate pro rata with the other common units in distributions of available cash.
Liquidity and Financing
As of March 31, 2017, we had $129.4 million of cash and cash equivalents, of which $42.9 million is held in current accounts and $86.5 million was held in time deposits.
As of March 31, 2017, we had an aggregate of $800.8 million of indebtedness outstanding under our credit facilities, of which $104.3 million is repayable within one year. In addition, we had unused availability under our revolving credit facilities of $42.9 million.
As of March 31, 2017, $60.1 million under the junior tranche of the Five Vessel Refinancing was reclassified under "Borrowings - current portion" following a notice of prepayment issued by the respective subsidiaries on March 24, 2017 and was prepaid on April 5, 2017, as described below.
On April 3, 2017, the Partnership signed a deed of termination with respect to its revolving credit facility with GasLog. On the same date, the Partnership entered into a new unsecured five year term loan of $45.0 million and a five year revolving credit facility of $30.0 million with GasLog. Subsequently, on April 5, 2017, an amount of $45.0 million under the term loan facility and an amount of $15.0 million under the revolving credit facility were drawn by the Partnership and were used on the same date to prepay $60.1 million of the outstanding debt of GAS-nineteen Ltd., GAS-twenty Ltd. and GAS-twenty one Ltd., which would have been originally due in April 2018.
The Partnership has entered into three interest rate swap agreements with GasLog at a notional value of $390.0 million in aggregate, maturing between 2020 and 2022. As of March 31, 2017, the Partnership has hedged 48.1% of its floating interest rate exposure on its outstanding debt at a weighted average interest rate of approximately 1.6% (excluding margin).
As of March 31, 2017, our current assets totaled $139.9 million and current liabilities totaled $133.4 million, resulting in a positive working capital position of $6.5 million.
LNG Market Update and Outlook
During the quarter, there has been continued momentum in the start-up of new LNG liquefaction capacity with the third trains at both Gorgon and Sabine Pass commencing production. In addition, the world's first floating liquefaction terminal, the Petronas-owned PFLNG Satu, loaded its first cargo in Malaysia. Later this year, Ichthys, Wheatstone, Cove Point and Sabine Pass Train 4 are all expected to start production. Wood Mackenzie estimates that there will be projects with approximately 34 million tons per annum ("mtpa") of nameplate capacity coming online in 2017.
Some offtakers of these projects are yet to secure all of their shipping requirements. In addition to newbuild LNG carriers, we expect a number of vessels for these projects to be sourced from vessels currently operating in the short-term market, which should be positive for the overall shipping supply and demand balance. In the 2017-2020 period, Wood Mackenzie expects approximately 120 mtpa of new nameplate capacity to come online around the world. We believe that this new supply will create significant demand for LNG carriers over and above those available in the market and on order today.
Looking longer term, there have been a number of encouraging developments recently: ExxonMobil purchased a 25% interest in Area 4 in Mozambique; ENI's Coral FLNG has reached the final stages of a multi stage final investment decision ("FID") process; Total made a $207.0 million investment in Tellurian to develop the Driftwood LNG project; and Qatar Petroleum announced the lifting of the moratorium on incremental production from its North Field.
2016 saw significant increases in LNG demand from a number of new markets such as Pakistan, Poland, Lithuania and Jordan as well as major energy growth markets such as China and India. This trend has continued into the first quarter of 2017 with further strong increases in demand from China (+23% year-on-year to end March 2017) as well as in large conventional markets such as Japan (+13% year-on-year) and South Korea (+18% year-on-year) following the cold winter and slow progress with nuclear re-starts.
A number of markets that do not currently import gas are exploring LNG as an alternative to oil and coal or to replace declining domestic supply. Many countries with growing power demand, such as Ivory Coast, South Africa, Bangladesh and Myanmar, are looking at floating storage and re-gasification units ("FSRU") as a quick-to-market, cost-effective solution to import LNG. Other countries with FSRUs already in place are looking at expanding their use of FSRUs due to the successful commissioning and effective operations of the existing units. FSRUs continue to dominate new import markets as a quicker to build, more flexible and low cost alternative to an onshore facility. Many of the current and future LNG sellers are focusing their attention on FSRUs as a key enabler in creating new markets for their LNG.
In the shipping market, short-term charter rates declined in February and March largely due to seasonally lower LNG demand following the Northern Hemisphere winter. A high number of "re-lets" during the quarter also weighed on the market. We expect this trend to reverse as we enter the summer cooling season in the Middle East, Europe and Asia and the Southern Hemisphere winter.
While the recovery in charter rates and utilization in the LNG shipping market is taking longer than we had anticipated, we are seeing some initial signs of increased short-term and long-term activity, and we continue to believe that the longer term fundamentals point to a strengthening market in 2017 and beyond.
GasLog Partners will host a conference call to discuss its results for the first quarter of 2017 at 8:30 a.m. EDT (1:30 p.m. BST) on Thursday, April 27, 2017. Andrew Orekar, Chief Executive Officer, and Alastair Maxwell, Chief Financial Officer, will review the Partnership's operational and financial performance for the period. Management's presentation will be followed by a Q&A session.
The dial-in numbers for the conference call are as follows:
+1 855 253 8928 (USA)
+44 20 3107 0289 (United Kingdom)
+33 1 70 80 71 53 (France)
Conference ID: 4415089
A live webcast of the conference call will also be available on the investor relations page of the Partnership's website at http://www.gaslogmlp.com/investor-relations.
For those unable to participate in the conference call, a replay will also be available from 2:00 p.m. EDT (7:00 p.m. BST) on Thursday, April 27, 2017 until 11:59 p.m. EDT (4:59 a.m. BST) on Thursday, May 4, 2017.
The replay dial-in numbers are as follows:
+1 855 859 2056 (USA)
+44 20 3107 0235 (United Kingdom)
+33 1 70 80 71 79 (France)
Conference ID: 4415089
The replay will also be available via a webcast on the investor relations page of the Partnership's website at
About GasLog Partners
GasLog Partners is a growth-oriented master limited partnership focused on owning, operating and acquiring LNG carriers under multi-year charters. Upon closing of the announced GasLog Greece acquisition, GasLog Partners' fleet will consist of ten LNG carriers with an average carrying capacity of approximately 152,000 cbm. GasLog Partners' principal executive offices are located at Gildo Pastor Center, 7 Rue du Gabian, MC 98000, Monaco. Visit the GasLog Partners website at http://www.gaslogmlp.com.
All statements in this press release that are not statements of historical fact are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that address activities, events or developments that the Partnership expects, projects, believes or anticipates will or may occur in the future, particularly in relation to our operations, cash flows, financial position, liquidity and cash available for dividends or distributions, plans, strategies, business prospects and changes and trends in our business and the markets in which we operate. We caution that these forward-looking statements represent our estimates and assumptions only as of the date of this press release, about factors that are beyond our ability to control or predict, and are not intended to give any assurance as to future results. Any of these factors or a combination of these factors could materially affect future results of operations and the ultimate accuracy of the forward-looking statements. Accordingly, you should not unduly rely on any forward-looking statements.
Factors that might cause future results and outcomes to differ include, but are not limited to, the following:
- general LNG shipping market conditions and trends, including spot and long-term charter rates, ship values, factors affecting supply and demand of LNG and LNG shipping, technological advancements and opportunities for the profitable operations of LNG carriers;
- continued low prices for crude oil and petroleum products and volatility in gas prices;
- our ability to leverage GasLog's relationships and reputation in the shipping industry;
- our ability to enter into time charters with new and existing customers;
- changes in the ownership of our charterers;
- our customers' performance of their obligations under our time charters and other contracts;
- our future operating performance, financial condition, liquidity and cash available for dividends and distributions;
- our ability to purchase vessels from GasLog in the future;
- our ability to obtain financing to fund capital expenditures, acquisitions and other corporate activities, funding by banks of their financial commitments, funding by GasLog of the revolving credit facility with GasLog entered into on April 3, 2017 and our ability to meet our restrictive covenants and other obligations under our credit facilities;
- future, pending or recent acquisitions of ships or other assets, business strategy, areas of possible expansion and expected capital spending or operating expenses;
- our expectations about the time that it may take to construct and deliver newbuildings and the useful lives of our ships;
- number of off-hire days, dry-docking requirements and insurance costs;
- fluctuations in currencies and interest rates;
- our ability to maintain long-term relationships with major energy companies;
- our ability to maximize the use of our ships, including the re-employment or disposal of ships no longer under time charter commitments, including the risk that our vessels may no longer have the latest technology at such time;
- environmental and regulatory conditions, including changes in laws and regulations or actions taken by regulatory authorities;
- the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, requirements imposed by classification societies and standards imposed by our charterers applicable to our business;
- risks inherent in ship operation, including the discharge of pollutants;
- GasLog's ability to retain key employees and provide services to us, and the availability of skilled labor, ship crews and management;
- potential disruption of shipping routes due to accidents, political events, piracy or acts by terrorists;
- potential liability from future litigation;
- our business strategy and other plans and objectives for future operations;
- any malfunction or disruption of information technology systems and networks that our operations rely on or any impact of a possible cybersecurity breach; and
- other risks and uncertainties described in the Partnership's Annual Report on Form 20-F filed with the SEC on February 13, 2017, available at http://www.sec.gov.
We undertake no obligation to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events, a change in our views or expectations or otherwise. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.
The declaration and payment of distributions are at all times subject to the discretion of our board of directors and will depend on, amongst other things, risks and uncertainties described above, restrictions in our credit facilities, the provisions of Marshall Islands law and such other factors as our board of directors may deem relevant.
Chief Financial Officer
Head of Investor Relations
Investor Relations Manager
EXHIBIT I - Unaudited Interim Financial Information: IFRS Common Control Reported Results
Unaudited condensed consolidated statements of financial position
As of December 31, 2016 and March 31, 2017
(All amounts expressed in thousands of U.S. Dollars, except unit data)
Unaudited condensed consolidated statements of profit or loss
For the three months ended March 31, 2016 and March 31, 2017
(All amounts expressed in thousands of U.S. Dollars, except per unit data)
Unaudited condensed consolidated statements of cash flows
For the three months ended March 31, 2016 and March 31, 2017
(All amounts expressed in thousands of U.S. Dollars)
Non-GAAP Financial Measures:
Reconciliation of Partnership Performance Results to IFRS Common Control Reported Results in our Financial Statements:
Our Partnership Performance Results for the three months ended March 31, 2016 and December 31, 2016 presented below are non-GAAP measures and exclude amounts related to GAS-seven Ltd. (the owner of the GasLog Seattle), for the period prior to its transfer to the Partnership on November 1, 2016. While such amounts are reflected in the Partnership's unaudited condensed consolidated financial statements because the transfer to the Partnership was accounted for as a reorganization of entities under common control under IFRS, GAS-seven Ltd. was not owned by the Partnership prior to its transfer to the Partnership on November 1, 2016, and accordingly the Partnership was not entitled to the cash or results generated in the period prior to such transfer.
Our IFRS Common Control Reported Results presented below include the accounts of the Partnership and its subsidiaries. Transfers of vessel owning subsidiaries from GasLog are accounted for as a reorganization of entities under common control and the Partnership's consolidated financial statements are restated to reflect such subsidiaries from the date of their incorporation by GasLog as they were under the common control of GasLog.
GasLog Partners believes that these non-GAAP financial measures provide meaningful supplemental information to both management and investors regarding the financial and operating performance of the Partnership which is necessary to understand the underlying basis for the calculations of the quarterly distribution and the earnings per unit, which similarly exclude the results of acquired vessels prior to their transfer to the Partnership. These non-GAAP financial measures should not be viewed in isolation or as substitutes for the equivalent GAAP measures presented in accordance with IFRS, but should be used in conjunction with the most directly comparable IFRS Common Control Reported Results.For the three months ended March 31, 2016
(All amounts expressed in thousands of U.S. dollars) Results attributable to GasLog Partnership Performance Results IFRS Common Control Reported Results Revenues 6,769 49,358 56,127 Vessel operating costs (1,354 ) (11,394 ) (12,748 ) Voyage expenses and commissions (85 ) (714 ) (799 ) Depreciation (1,428 ) (11,103 ) (12,531 ) General and administrative expenses (149 ) (2,793 ) (2,942 ) Profit from operations 3,753 23,354 27,107 Financial costs (1,029 ) (7,181 ) (8,210 ) Financial income - 18 18 Loss on interest rate swaps (2,902 ) - (2,902 ) Total other expenses, net (3,931 ) (7,163 ) (11,094 ) (Loss)/profit for the period (178 ) 16,191 16,013
(All amounts expressed in thousands of U.S. dollars) Results attributable to GasLog Partnership Performance Results IFRS Common Control Reported Results Revenues 1,933 55,978 57,911 Vessel operating costs (341 ) (10,845 ) (11,186 ) Voyage expenses and commissions (28 ) (707 ) (735 ) Depreciation (486 ) (12,062 ) (12,548 ) General and administrative expenses (51 ) (2,794 ) (2,845 ) Profit from operations 1,027 29,570 30,597 Financial costs (386 ) (8,420 ) (8,806 ) Financial income - 53 53 Gain on interest rate swaps - 3,623 3,623 Total other expenses, net (386 ) (4,744 ) (5,130 ) Profit for the period 641 24,826 25,467
Amounts reflected in the Partnership's unaudited condensed consolidated financial statements for the three months ended March 31, 2017 are fully attributable to the Partnership. The Partnership Performance Results reported in the first quarter of 2017 are the same as the IFRS Common Control Reported Results for the period since there were no vessel acquisitions from GasLog during the quarter, which would have resulted in retrospective adjustment of the historical financial statements.For the three months ended March 31, 2017
(All amounts expressed in thousands of U.S. dollars) Results attributable to GasLog Partnership Performance Results IFRS Common Control Reported Results Revenues - 56,993 56,993 Vessel operating costs - (11,168 ) (11,168 ) Voyage expenses and commissions - (715 ) (715 ) Depreciation - (12,362 ) (12,362 ) General and administrative expenses - (3,084 ) (3,084 ) Profit from operations - 29,664 29,664 Financial costs - (8,782 ) (8,782 ) Financial income - 117 117 Gain on interest rate swaps - 23 23 Total other expenses, net - (8,642 ) (8,642 ) Profit for the period - 21,022 21,022
Non-GAAP Financial Measures:
EBITDA is defined as earnings before interest income and expense, gain/loss on interest rate swaps, taxes, depreciation and amortization. Adjusted Profit represents earnings before (a) non-cash gain/loss on interest rate swaps that includes unrealized gain/loss on interest rate swaps held for trading and recycled loss of cash flow hedges reclassified to profit or loss and (b) write-off of unamortized loan fees. EBITDA and Adjusted Profit, which are non-GAAP financial measures, are used as supplemental financial measures by management and external users of financial statements, such as investors, to assess our financial and operating performance. The Partnership believes that these non-GAAP financial measures assist our management and investors by increasing the comparability of our performance from period to period. The Partnership believes that including EBITDA and Adjusted Profit assists our management and investors in (i) understanding and analyzing the results of our operating and business performance, (ii) selecting between investing in us and other investment alternatives and (iii) monitoring our ongoing financial and operational strength in assessing whether to continue to hold our common units. This increased comparability is achieved by excluding the potentially disparate effects between periods of, in the case of EBITDA, interest, gain/loss on interest rate swaps, taxes, depreciation and amortization; and in the case of Adjusted Profit, non-cash gain/loss on interest rate swaps and write-off of unamortized loan fees, which items are affected by various and possibly changing financing methods, financial market conditions, capital structure and historical cost basis and which items may significantly affect results of operations between periods.
EBITDA and Adjusted Profit have limitations as analytical tools and should not be considered as alternatives to, or as substitutes for, or superior to, profit, profit from operations, earnings per unit or any other measure of financial performance presented in accordance with IFRS. Some of these limitations include the fact that they do not reflect (i) our cash expenditures or future requirements for capital expenditures or contractual commitments, (ii) changes in, or cash requirements for, our working capital needs and (iii) the cash requirements necessary to service interest or principal payments on our debt. Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements. It is not adjusted for all non-cash income or expense items that are reflected in our statement of cash flows and other companies in our industry may calculate this measure differently to how we do, limiting its usefulness as a comparative measure.
EBITDA and Adjusted Profit are presented on the basis of IFRS Common Control Reported Results and Partnership Performance Results. Partnership Performance Results are non-GAAP measures. The difference between IFRS Common Control Reported Results and Partnership Performance Results are results attributable to GasLog.
Reconciliation of EBITDA to Profit:
(Amounts expressed in thousands of U.S. Dollars)IFRS Common Control Reported Results For the three months ended March 31, 2016 December 31, 2016 March 31, 2017 Profit for the period 16,013 25,467 21,022 Depreciation 12,531 12,548 12,362 Financial costs 8,210 8,806 8,782 Financial income (18 ) (53 ) (117 ) Loss/(gain) on interest rate swaps 2,902 (3,623 ) (23 ) EBITDA 39,638 43,145 42,026
Reconciliation of Adjusted Profit to Profit:
(Amounts expressed in thousands of U.S. Dollars)IFRS Common Control Reported Results For the three months ended March 31, 2016 December 31, 2016 March 31, 2017 Profit for the period 16,013 25,467 21,022 Non-cash loss/(gain) on interest rate swaps 2,379 (4,172 ) (648 ) Adjusted Profit 18,392 21,295 20,374
Distributable Cash Flow
Distributable cash flow with respect to any quarter means EBITDA, as defined above for the Partnership Performance Results, after considering financial costs for the period, excluding amortization of loan fees, estimated dry-docking and replacement capital reserves established by the Partnership. Estimated dry-docking and replacement capital reserves represent capital expenditures required to renew and maintain over the long-term the operating capacity of, or the revenue generated by, our capital assets. Distributable cash flow is a quantitative standard used by investors in publicly-traded partnerships to assess their ability to make quarterly cash distributions. Our calculation of Distributable cash flow may not be comparable to that reported by other companies. Distributable cash flow is a non-GAAP financial measure and should not be considered as an alternative to profit or any other indicator of the Partnership's performance calculated in accordance with GAAP. The table below reconciles Distributable cash flow to Profit for the period attributable to the Partnership.
Reconciliation of Distributable Cash Flow to Profit:
(Amounts expressed in thousands of U.S. Dollars)For the three months ended March 31, 2016 (1) December 31, 2016 (1) March 31, 2017 (2) Partnership's profit for the period 16,191 24,826 21,022 Depreciation 11,103 12,062 12,362 Financial costs 7,181 8,420 8,782 Financial income (18 ) (53 ) (117 ) Gain on interest rate swaps - (3,623 ) (23 ) EBITDA 34,457 41,632 42,026 Financial costs excluding amortization of loan fees and realized loss on interest rate swaps (6,191 ) (7,991 ) (8,419 ) Dry-docking capital reserve (2,168 ) (2,324 ) (2,682 ) Replacement capital reserve (7,231 ) (7,776 ) (7,429 ) Distributable cash flow 18,867 23,541 23,496 Other reserves(3) (4) (3,155 ) (3,992 ) (3,375 ) Cash distribution declared 15,712 19,549 20,121
(1) Excludes amounts related to GAS-seven Ltd., the owner of the GasLog Seattle, for the period prior to its transfer to the Partnership on November 1, 2016. While such amounts are reflected in the Partnership's unaudited condensed consolidated financial statements because the transfer to the Partnership was accounted for as a reorganization of entities under common control under IFRS, GAS-seven Ltd. was not owned by the Partnership prior to its transfer to the Partnership on November 1, 2016, and accordingly the Partnership was not entitled to the cash or results generated in the period prior to such transfer.
(2) Amounts reflected in the Partnership's unaudited condensed consolidated financial statements for the three months ended March 31, 2017 are fully attributable to the Partnership.
(3) Refers to reserves (other than the dry-docking and replacement capital reserves) for the proper conduct of the business of the Partnership and its subsidiaries (including reserves for future capital expenditures and for anticipated future credit needs of the Partnership and its subsidiaries). For the three months ended March 31, 2016, the other reserves amount above has been reduced by $142 of foreign exchange losses. For this period, distributable cash flow as reported had been adjusted to exclude the potentially disparate impact of foreign exchange losses.
(4) For the three months ended December 31, 2016 and March 31, 2017, the cash distribution declared and the other reserves have been affected by $1,922 and $2,035, respectively, paid in respect of the units issued in the Partnership's equity offering completed in the first quarter of 2017. After giving effect to the aforementioned equity offering, the Q4 2016 distribution coverage ratio decreased from 1.34 to 1.20 and the Q1 2017 distribution coverage ratio decreased from 1.30 to 1.17.
Energy XXI Gulf Coast Provides Preliminary Results of March 31, 2017 Independent Reserve Engineer Report
HOUSTON, April 27, 2017 (GLOBE NEWSWIRE) -- Energy XXI Gulf Coast, Inc. (“EGC” or the “Company”) (NASDAQ:EXXI) today provided preliminary results of its third-party independent reserve engineer report as of March 31, 2017 that is being prepared by Netherland Sewell and Associates, Inc. (NSAI). The final report is expected to be delivered during the week of May 8, 2017. In recent years, the Company had utilized third-party engineers to audit its internal calculations of reserves, but has not had a fully-engineered third-party report prepared since 2012. The Company previously disclosed that under the terms of its First Lien Exit Credit Agreement, a third party engineer report would be required annually, with the first report due by May 31, 2017. The last internally-prepared report was done as of December 31, 2016.
Total SEC proved reserves as of March 31, 2017 in the report being prepared by NSAI are expected to be in the range of 100 to 115 million barrels of oil equivalent. This preliminary estimate of total SEC proved reserves as of March 31, 2017 compared with the reserves reported as of year-end 2016 reflects the impact of production during the first quarter of 2017, changes in commodity pricing since year-end 2016, and the Company’s expectations with respect to higher capital costs, increased lease operating expenses, repairs, maintenance and workover costs. Proved reserves as of March 31, 2017 based on forward strip commodity pricing on that date is estimated to be in the range of 105 to 125 million barrels of oil equivalent.
The present value of the preliminary March 31, 2017 proved reserves discounted at 10% (“PV-10 Value”) is estimated to be in the range of zero PV-10 to $100 million of PV-10 utilizing SEC 12-month average pricing of $47.62 per barrel of oil and $2.73 per thousand cubic feet of natural gas, before differentials. The same factors that affected the change in reserves compared with year-end 2016 also impacted their PV-10 value. Utilizing forward strip commodity prices as of March 31, 2017 of $51.55 per barrel of oil and $3.31 per thousand cubic feet, before differentials, the PV-10 value is estimated to be in the range of $250 to $450 million.
The Company intends to disclose the final NSAI reserve report in a public filing after it is received by the Company.
Douglas E. Brooks, Chief Executive Officer and President remarked, “The transition to a fully-engineered reserve report from a reserve volume audit is a very rigorous process. Our staff and management have been deeply involved in that process and will continue to engage with our independent reserve engineers in active dialogue as is typical in such annual third-party reserve compilations. We believe this transition was a necessary and key step as we move forward with our long-term strategic plan. We remain excited about our future growth capacity that is possible from the combination of our portfolio of core Gulf of Mexico properties and our strong balance sheet. Our management team believes there is significant upside value in the Company’s non-proved resource base, especially at higher commodity prices, that will not be reflected in that engineering report.”
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including those relating to the intent, beliefs, plans, or expectations of EGC are based upon current expectations and are subject to a number of risks, uncertainties, and assumptions. It is not possible to predict or identify all such factors and the following list should not be considered a complete statement of all potential risks and uncertainties relating to emergence from Chapter 11, the recent change in EGC’s senior management team, or EGC’s oil and gas reserves, including, but not limited to: (i) the PV-10 and reserve volumes reported in the final NSAI reserve report, (ii) the level of potential upside actually realized by EGC from its non-proved resource base, (iii) the effects of the departure of EGC’s senior leaders on the Company’s employees, suppliers, regulators and business counterparties, (iv) the increased advisory costs incurred in connection with executing the reorganization, (v) the impact of restrictions in the exit financing on EGC’s ability to make capital investments and pursue strategic growth opportunities and (vi) other risks and uncertainties. These risks and uncertainties could cause actual results, including project plans and related expenditures and resource recoveries, to differ materially from those described in the forward-looking statements. For a more detailed discussion of risk factors, please see Part I, Item 1A, “Risk Factors” of the Transition Report on Form 10-K for the transition period ended December 31, 2016 filed by EGC for more information. EGC will file reports and other information with the SEC going forward. EGC assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.
About the Company
Energy XXI Gulf Coast, Inc. is an independent oil and natural gas development and production company whose assets are primarily located in the U.S. Gulf of Mexico waters offshore Louisiana and Texas. The Company’s near-term strategy emphasizes exploitation of key assets, enhanced by its focus on financial discipline and operational excellence. To learn more, visit EGC’s website at www.EnergyXXI.com.CONTACT: Investor Relations Contact Al Petrie Investor Relations Coordinator 713-351-0617 email@example.com
- H&P’s U.S. Land Operations contracted rig count increased by 41 rigs from December 31, 2016 to March 31, 2017 and by 73 rigs from September 30, 2016 to March 31, 2017, and today stands at 177 rigs
- H&P’s U.S. Land market share increased significantly by approximately 2% from 17% to 19% during the three months of the quarter
- H&P’s spot pricing in the U.S. Land market continued to increase (approximately 9%) from the date of the first quarter results announcement (January 26, 2017) to April 27, 2017
TULSA, Okla., April 27, 2017 (GLOBE NEWSWIRE) -- Helmerich & Payne, Inc. (NYSE:HP) reported a net loss of $49 million or $(0.45) per diluted share from operating revenues of $405 million for the second quarter of fiscal 2017. The net loss per diluted share includes $0.02 of after-tax income comprised of select items(1). Net cash provided by operating activities was $76 million for the second quarter of fiscal 2017.
President and CEO John Lindsay commented, “We experienced continued activity and spot pricing improvement in the U.S. Land market during our second fiscal quarter and H&P once again led the industry in AC drive rig reactivations and horizontal market share capture. The driving forces behind this success are our people, our continuing investment in technology and our integrated business model. Our ability to grow is enabled by promoting and hiring the best people, and delivering industry leading performance. FlexRig® technology supported by H&P’s integrated model has over 1900 rig years of experience and is the preferred AC drive rig offering in the marketplace. H&P is uniquely positioned with a fleet of FlexRigs that provide a Family of Solutions™ for our customers, and the right rig for their project. Our uniform fleet size and scale is unmatched in the U.S. land AC drive segment which provides H&P an opportunity for additional market share capture. H&P’s experience and expertise within an integrated model of designing, building, learning and upgrading the FlexRig fleet allow us to meet market needs in highest demand and provide the best value for customers. We can upgrade these higher specification FlexRigs in a very capital-efficient way and meet today’s demand without the need to invest in new rigs to meet customer requirements. We have 122 super-spec capable rigs in the U.S. land market today and another 50 rigs that are active that can also be upgraded. In addition, we have approximately 100 idle FlexRigs that are capable of being upgraded to drill the more challenging horizontal wells, representing about two-thirds of the number of idle high-spec AC drive rigs in the industry fleet.
“We see some signs indicating that the recovery in U.S. land continues to modestly build momentum, which should support continued improvements in both FlexRig activity and pricing. However, we expect our international land and offshore market outlook to remain weak for the foreseeable future. Our budget for capital expenditures has allowed us to remain ahead of demand. We have been able to maintain an industry leading cadence for upgrades allowing us to increase our active fleet by 89 rigs since September, including close to 60 rigs upgraded to super-spec capability. Our supply pipeline of capital spares and upgrade equipment should be sufficient for the level of demand we see going forward. We believe that the Company is positioned to successfully manage the new market dynamics. Our organizational effectiveness efforts implemented during the downturn are having a significant effect on our ability to respond to demand and add significant value for our customers. This is clearly demonstrated by the success we have enjoyed growing our U.S. land market share from 15% to 19% since the peak in 2014. We remain confident about the future for H&P because our competitive advantages remain in our people, performance, technology, reliability and uniform FlexRig fleet.”
Operating Segment Results
U.S. Land Operations
Segment operating loss widened by $21 million sequentially. The change was primarily attributable to approximately $18 million in abandonment charges, as increasing activity was offset by lower margins. The abandonment charges are included with depreciation in the segment and are related to the decommissioning of used drilling equipment as a result of our ongoing rig upgrade program.
The number of quarterly revenue days increased sequentially by approximately 35%. This H&P rate of increase was greater than the overall market’s rate of increase (estimated at 27%)(2), resulting in significant market share growth for the Company.
From the first to the second fiscal quarter of 2017, adjusted average rig revenue per day decreased by $1,690 to $22,201(3), as the proportion of rigs working in the spot market increased significantly quarter to quarter. The adjusted average rig expense per day increased sequentially by $548 to $15,612(3); the increase in the average was mostly attributable to upfront rig start-up expenses related to reactivating a large number of rigs. The corresponding adjusted average rig margin per day decreased sequentially by $2,238 to $6,589(3).
Segment operating income decreased 13% sequentially. The number of quarterly revenue days decreased sequentially by approximately 8%, and the average rig margin per day increased sequentially by $339 to $10,817. Additionally, management contracts on platform rigs contributed approximately $4 million to the segment’s operating income.
International Land Operations
The segment had an operating loss this quarter as compared to operating income the previous quarter. The $12 million sequential change was attributable to declines in average rig margin per day and rig revenue days, as well as the absence of early termination revenues in the most recent quarter.
Quarterly revenue days decreased sequentially by approximately 25%, and the adjusted average rig margin per day decreased sequentially by $5,192 to $3,691 during this year’s second fiscal quarter(3). Quarterly revenue days and adjusted average rig margin per day declined primarily as a result of the previously announced early termination notice from a customer for five rigs under long-term contracts in the segment.
Operational Outlook for the Third Quarter of Fiscal 2017
U.S. Land Operations:
- Quarterly revenue days expected to increase by roughly 25% sequentially
- Average rig revenue per day expected to be roughly $21,000 (excluding any impact from early termination revenue)
- Average rig expense per day expected to be roughly $14,300
- Quarterly revenue days expected to decrease by approximately 10% to 15% sequentially
- Average rig margin per day expected to be approximately $12,500
- Management contracts expected to generate approximately $4 million in operating income
International Land Operations:
- Quarterly revenue days expected to decrease by approximately 10% sequentially
- Average rig margin per day expected to remain under $4,000
Other Estimates for Fiscal 2017
- FY17 depreciation is now expected to be approximately $580 million. Included in this depreciation estimate are approximately $40 million of abandonment charges, about half of which has already been recognized in the first half of the fiscal year.
- The Company’s total active rig market share in U.S. Land Lower 48 grew to approximately 19% as of March 31, 2017.
- Since January 26, 2017 (date of first quarter results announcements), 22 AC drive FlexRigs with 1,500 hp drawworks and 750,000 lbs. hookload ratings were upgraded to include a 7,500 psi mud circulating system and/or multiple-well pad capability, resulting in 122 rigs in our fleet today with rig specifications in highest demand(4).
- On January 26, 2017, EnergyPoint Research announced, “Helmerich & Payne again rated first in total satisfaction among onshore contract drillers. The company also captured the top spot in performance and reliability, service and professionalism, horizontal and directional wells, high-pressure/high-temperature (HPHT) wells, safety and environmental (HSE), shale-oriented applications, Interior Texas & Mid-continent, and three additional categories.”
- On March 1, 2017, Directors of the Company declared a quarterly cash dividend of $0.70 per share on the Company’s common stock payable June 1, 2017 (as filed on Form 8-K at the time of the declaration).
Select Items Included in Net Income (or Loss) per Diluted Share
Second Quarter of Fiscal 2017 included $0.02 in after-tax income comprised of the following:
- $0.04 of after-tax income from long-term contract early termination compensation from customers
- $0.09 of after-tax gains related to the sale of used drilling equipment
- $0.11 of after-tax losses from abandonment charges related to the decommissioning of used drilling equipment
First Quarter of Fiscal 2017 included $0.08 in after-tax income comprised of the following:
- $0.08 of after-tax income from long-term contract early termination compensation from customers
- $0.01 of after-tax gains related to the sale of used drilling equipment
- $0.01 of after-tax losses from accrued charges related to a lawsuit settlement agreement
About Helmerich & Payne, Inc.
Helmerich & Payne, Inc. is primarily a contract drilling company. As of April 27, 2017, the Company’s existing fleet includes 350 land rigs in the U.S., 38 international land rigs, and eight offshore platform rigs. The Company’s global fleet has a total of 388 land rigs, including 373 AC drive FlexRigs.
This release includes "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and such statements are based on current expectations and assumptions that are subject to risks and uncertainties. All statements other than statements of historical facts included in this release, including, without limitation, statements regarding the registrant’s future financial position, operations outlook, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward-looking statements. For information regarding risks and uncertainties associated with the Company's business, please refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's SEC filings, including but not limited to its annual report on Form 10-K and quarterly reports on Form 10-Q. As a result of these factors, Helmerich & Payne, Inc.'s actual results may differ materially from those indicated or implied by such forward-looking statements. We undertake no duty to update or revise our forward-looking statements based on changes in internal estimates, expectations or otherwise, except as required by law.
Note Regarding Trademarks. Helmerich & Payne, Inc. owns or has rights to the use of trademarks, service marks and trade names that it uses in conjunction with the operation of its business. Some of the trademarks that appear in this release include FlexRig and Family of Solutions, which may be registered or trademarked in the U.S. and other jurisdictions.
(1)See the corresponding section of this release for details regarding the select items.
(2)The overall market’s rate of increase was calculated using the average U.S. Land rig counts from the fourth calendar quarter of 2016 and first calendar quarter of 2017 as publicly published by Baker Hughes.
(3)See the Selected Statistical & Operational Highlights table(s) for details on the revenues or charges excluded on a per revenue day basis.
(4)These combined rig specifications are in high demand and fit the description of what some industry followers refer to as “super-spec” rigs.
HELMERICH & PAYNE, INC.Unaudited(in thousands) March 31 September 30CONSOLIDATED CONDENSED BALANCE SHEETS 2017 2016 ASSETS Cash and cash equivalents $ 741,746 $ 905,561 Short-term investments 48,012 44,148 Other current assets 574,093 622,913 Current assets of discontinued operations 36 64 Total current assets 1,363,887 1,572,686 Investments 88,299 84,955 Net property, plant, and equipment 5,061,368 5,144,733 Other assets 24,630 29,645 TOTAL ASSETS $ 6,538,184 $ 6,832,019 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $ 301,377 $ 330,061 Current liabilities of discontinued operations 40 59 Total current liabilities 301,417 330,120 Non-current liabilities 1,392,346 1,445,237 Non-current liabilities of discontinued operations 4,654 3,890 Long-term debt less unamortized discount and debt issuance costs 492,373 491,847 Total shareholders’ equity 4,347,394 4,560,925 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 6,538,184 $ 6,832,019
HELMERICH & PAYNE, INC.Unaudited(in thousands) Six Months Ended March 31CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS 2017 2016 OPERATING ACTIVITIES: Net income (loss)$ (83,881) $ 37,207 Adjustment for loss from discontinued operations 854 3,865 Income (loss) from continuing operations (83,027) 41,072 Depreciation 286,624 283,646 Changes in assets and liabilities (58,283) 158,870 Income from asset sales (15,731) (7,273) Other 16,856 16,104 Net cash provided by operating activities from continuing operations 146,439 492,419 Net cash provided by (used in) operating activities from discontinued operations (80) 98 Net cash provided by operating activities 146,359 492,517 INVESTING ACTIVITIES: Capital expenditures (175,303) (180,481) Purchase of short-term investments (37,899) (21,869) Proceeds from sale of short-term investments 34,000 21,676 Proceeds from asset sales 13,459 9,715 Net cash used in investing activities (165,743) (170,959) FINANCING ACTIVITIES: Debt issuance costs - (32) Dividends paid (152,617) (149,300) Exercise of stock options, net of tax withholding 9,946 (199) Tax withholdings related to net share settlements of restricted stock (5,679) (3,617) Excess tax benefit from stock-based compensation 3,919 219 Net cash used in financing activities (144,431) (152,929) Net increase (decrease) in cash and cash equivalents (163,815) 168,629 Cash and cash equivalents, beginning of period 905,561 729,384 Cash and cash equivalents, end of period$ 741,746 $ 898,013
SEGMENT REPORTINGThree Months Ended Six Months Ended March 31 December 31 March 31 March 31 2017 2016 2016 2017 2016 (in thousands, except days and per day amounts) U.S. LAND OPERATIONS Revenues$ 330,967 $ 263,636 $ 349,283 $ 594,603 $ 719,088 Direct operating expenses 238,249 170,606 155,884 408,855 337,425 General and administrative expense 12,573 11,642 12,196 24,215 24,569 Depreciation 131,995 112,276 118,682 244,271 239,041 Segment operating income (loss)$ (51,850) $ (30,888) $ 62,521 $ (82,738) $ 118,053 Revenue days 13,166 9,784 9,601 22,950 21,546 Average rig revenue per day$ 22,654 $ 24,788 $ 34,218 $ 23,564 $ 31,132 Average rig expense per day$ 15,612 $ 15,204 $ 14,139 $ 15,438 $ 13,447 Average rig margin per day$ 7,042 $ 9,584 $ 20,079 $ 8,126 $ 17,685 Rig utilization 42% 31% 31% 36% 35% OFFSHORE OPERATIONS Revenues$ 36,235 $ 33,812 $ 34,325 $ 70,047 $ 76,205 Direct operating expenses 26,023 22,845 27,065 48,868 57,358 General and administrative expense 902 916 837 1,818 1,699 Depreciation 3,398 3,267 3,124 6,665 6,127 Segment operating income $ 5,912 $ 6,784 $ 3,299 $ 12,696 $ 11,021 Revenue days 595 644 691 1,239 1,427 Average rig revenue per day$ 36,006 $ 31,317 $ 28,004 $ 33,569 $ 27,764 Average rig expense per day$ 25,189 $ 20,839 $ 20,658 $ 22,929 $ 20,123 Average rig margin per day$ 10,817 $ 10,478 $ 7,346 $ 10,640 $ 7,641 Rig utilization 77% 78% 84% 77% 87% INTERNATIONAL LAND OPERATIONS Revenues$ 34,757 $ 68,031 $ 51,352 $ 102,788 $ 123,546 Direct operating expenses 32,181 53,350 38,113 85,531 102,121 General and administrative expense 920 669 887 1,589 1,605 Depreciation 12,633 13,187 14,620 25,820 28,753 Segment operating income (loss) $ (10,977) $ 825 $ (2,268) $ (10,152) $ (8,933) Revenue days 870 1,157 1,307 2,027 2,718 Average rig revenue per day$ 37,340 $ 55,880 $ 36,774 $ 47,923 $ 41,580 Average rig expense per day$ 33,649 $ 42,911 $ 26,287 $ 38,936 $ 30,406 Average rig margin per day$ 3,691 $ 12,969 $ 10,487 $ 8,987 $ 11,174 Rig utilization 25% 33% 38% 29% 39% Operating statistics exclude the effects of offshore platform management contracts, gains and losses from translation
of foreign currency transactions, and do not include reimbursements of “out-of-pocket” expenses in revenue per day,
expense per day and margin calculations. Reimbursed amounts were as follows: U.S. Land Operations$ 32,704 $ 21,098 $ 20,751 $ 53,802 $ 48,322 Offshore Operations$ 6,066 $ 4,431 $ 6,086 $ 10,497 $ 12,417 International Land Operations$ 2,272 $ 3,377 $ 3,288 $ 5,649 $ 10,532 Segment operating income for all segments is a non-GAAP financial measure of the Company’s performance, as it excludes general and administrative expenses, corporate depreciation, income from asset sales and other corporate income and expense. The Company considers segment operating income to be an important supplemental measure of operating performance for presenting trends in the Company’s core businesses. This measure is used by the Company to facilitate period-to-period comparisons in operating performance of the Company’s reportable segments in the aggregate by eliminating items that affect comparability between periods. The Company believes that segment operating income is useful to investors because it provides a means to evaluate the operating performance of the segments and the Company on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect the Company’s operating performance in future periods. The following table reconciles operating income per the information above to income (loss) from continuing operations before income taxes as reported on the Consolidated Statements of Operations (in thousands).
Three Months Ended Six Months Ended March 31 December 31 March 31 March 31 2017 2016 2016 2017 2016 Operating income U.S. Land$(51,850) $(30,888) $62,521 $(82,738) $118,053 Offshore 5,912 6,784 3,299 12,696 11,021 International Land (10,977) 825 (2,268) (10,152) (8,933) Other (1,134) (2,049) (1,349) (3,183) (2,653) Segment operating income (loss)$(58,049) $(25,328) $62,203 $(83,377) $117,488 Corporate general and administrative (19,124) (21,035) (19,891) (40,159) (38,012) Other depreciation (3,822) (4,077) (3,971) (7,899) (7,581) Inter-segment elimination 434 434 596 868 1,123 Income from asset sales 14,889 842 2,684 15,731 7,273 Operating income (loss)$ (65,672) $ (49,164) $ 41,621 $ (114,836) $ 80,291 Other income (expense): Interest and dividend income 1,338 990 799 2,328 1,532 Interest expense (6,084) (5,055) (5,721) (11,139) (10,245) Other 174 387 653 561 392 Total other income (expense) (4,572) (3,678) (4,269) (8,250) (8,321) Income (loss) from continuing
operations before income taxes$ (70,244) $ (52,842) $ 37,352 $ (123,086) $ 71,970
SUPPLEMENTARY STATISTICAL INFORMATION The tables and information that follow are additional information that may also help provide further clarity and insight into the operations of the Company. SELECTED STATISTICAL & OPERATIONAL HIGHLIGHTS (Used to determine adjusted per revenue day statistics) Three Months Ended March 31 December 31 2017 2016 (in dollars per revenue day) U.S. Land Operations Early contract termination revenues$ 453 $ 897 Lawsuit settlement charges$ - $ (140) Total impact per revenue day:$ 453 $ 757 International Land Operations Early contract termination revenues$ - $ 4,086 Total impact per revenue day:$ - $ 4,086
U.S. LAND RIG COUNTS & MARKETABLE FLEET STATISTICS April 27March 31December 31Q2FY17 201720172016AverageU.S. Land Operations Term Contract Rigs88888276.6Spot Contract Rigs88794269.7Total Rigs Generating Revenue Days176167124146.3Other Contracted Rigs1131.0Total Contracted Rigs177168127147.3Idle or Other Rigs173182223202.7Total Marketable Fleet350350350350.0
H&P GLOBAL FLEET UNDER TERM CONTRACT STATISTICS Number of Rigs Already Under Long-Term Contracts(1)(Estimated Quarterly Average, Including Announced New Builds – as of 4/27/17) Q3Q4Q1Q2Q3Q4Q1 FY17FY17FY18FY18FY18FY18FY19Segment U.S. Land Operations86.474.965.048.838.732.326.8International Land Operations11.010.010.010.010.010.010.0Offshore Operations2.02.02.02.01.90.30.0Total99.486.977.060.850.642.636.8
(1)The above term contract coverage excludes long-term contracts for which the Company received early contract termination notifications as of 4/27/17. Given notifications as of 4/27/17, the Company expects to generate approximately $5 million in the third fiscal quarter of 2017 and over $18 million thereafter from early terminations corresponding to long-term contracts and related to its U.S. Land segment. All of the above rig contracts include provisions for early termination fees.CONTACT: Contact: Investor Relations firstname.lastname@example.org (918) 588-5190