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Contains the last 10 releases
Updated: 3 hours 14 sec ago

Aegean Marine Petroleum Network Inc. Reaches Settlement Agreement with RBM Holdings LLC to Dismiss Shareholder Litigation and Appoint Tyler Baron, Raymond Bartoszek and Donald Moore to the Board

3 hours 37 min ago

Aegean also Announces Termination of its Consulting Agreement with Dimitris Melisanidis

NEW YORK, May 02, 2018 (GLOBE NEWSWIRE) -- Aegean Marine Petroleum Network Inc. (NYSE:ANW) (“Aegean” or the “Company”), a leading international marine fuel logistics company, today announced that it has appointed Tyler Baron of RBM Holdings LLC (“RBM”), Raymond Bartoszek, and Donald Moore to its Board of Directors, effective immediately. These independent directors will serve alongside Yiannis N. Papanicolaou, Spyridon Fokas, George J. Konomos and Konstantinos Koutsomitopoulos on Aegean’s Board of Directors, bringing the number of independent directors to six.

In connection with these appointments, Aegean has entered into a Settlement Agreement with RBM and its members, Tyler Baron, Justin Moore and August Roth (together, the “RBM Parties”), pursuant to which RBM has agreed to voluntarily dismiss the shareholder litigation, with prejudice, that it initiated against Aegean in the Southern District of New York, and further, the RBM Parties have agreed to release Aegean from any and all claims relating to such litigation. The RBM Parties have also agreed to certain limited standstill and voting provisions, including voting in favor of the Company’s proposed slate of directors at the Company’s 2018 Annual Meeting of Shareholders. The full terms of the Settlement Agreement will be filed by Aegean with the U.S. Securities and Exchange Commission.

“We are pleased to welcome the new directors joining the Company’s Board and the resolution of the litigation. We and RBM believe that Aegean’s unique assets and strategic network are a strong foundation for future success,” said Konstantinos Koutsomitopoulos, Aegean’s Chairman of the Nominating and Governance Committee.

Tyler Baron and Justin Moore, speaking on behalf of RBM and The Committee for Aegean Accountability, said, “We are pleased to be part of a significant evolution of the board. The new board members look forward to working with their colleagues and management on delivering a strategic operating plan that focuses on value creation and brings Aegean into its next phase of growth and profitability.”

The Committee for Aegean Accountability owns approximately 14.7% of Aegean’s outstanding shares and is comprised of the RBM Parties, the newly appointed directors, as well as Towle & Co. and Shah Capital Management, among others.

In addition, Aegean today announced that its Consulting Agreement with Dimitris Melisanidis (through Leskira Holdings Co. Limited), Aegean’s founder and former Head of Corporate Development, has been terminated by the mutual consent of both parties.

Biographies of the newly appointed Directors:

Tyler Baron

Mr. Baron has more than 15 years of experience in the financial services and investment management industry.  Since 2012, Mr. Baron has been the Portfolio Manager and Managing Partner of Sentinel Rock Capital, a hedge fund that applies an absolute value-oriented strategy across long/short investment opportunities expressed in small and mid-capitalization equities and debt.  From 2006-2011, Mr. Baron was a Partner at Spring Point Capital, a $1.5B hedge fund based in San Francisco, initially as an analyst and then managing research for the long portfolio as well as becoming one of the largest equity partners at the firm.  Mr. Baron started his investing career in 2003 as an analyst at CBI Capital, a long/short hedge fund based in New York City.  In 2001, Mr. Baron joined the restructuring group as an analyst at Peter J. Solomon Company, a boutique investment bank, providing advisory services to debtors and creditor groups undergoing debt restructurings.  Mr. Baron attended the University of California at Berkeley and graduated with a Bachelor of Science degree from the Haas School of Business in 2001.

Raymond Bartoszek

Mr. Bartoszek has over 20 years of experience as an oil trader specializing in the supply of marine bunker fuels to global shipping companies, first at Texaco and then at Glencore Ltd.  While at Glencore Ltd. he held a number of senior management positions including Managing Director and head of its oil department where he managed a global team and portfolio of assets.  Mr. Bartoszek was one of the firm's directors leading up to the successful IPO in 2011.  Following his time at Glencore, Mr. Bartoszek started a family office called RLB Holdings.  He currently serves on the board of several private companies and is a Limited Partner of the New York Yankees.  He is also the Managing Partner of Horseheads Sand and Transloading Terminal, an energy terminal that supplies well operations in the Marcellus Shale.  Mr. Bartoszek holds a M.B.A. with a focus in International Business from Rensselaer Polytechnic Institute and a Dual-Major B.S. degree from the U.S. Merchant Marine Academy.

Donald Moore

Mr. Moore has over 40 years of experience in the financial services industry at Morgan Stanley, most recently as Chairman of Morgan Stanley Group (Europe) from 2000-2016 and as Global Chairman of the Financial Institutions Group from 2013-2016.  He has been involved in over 500 billion euros ($552 billion) worth of transactions throughout Europe working closely with governments, institutions and corporations on strategic issues, including mergers, acquisitions, divestitures, restructurings and equity financings.  Prior to moving to Europe in 1997, Mr. Moore worked on over 120 transactions spanning 22 years in New York, including most of the landmark banking transactions such as Citicorp on their restructuring and recapitalization in 1990.  In 1995, Mr. Moore was appointed by the US Treasury Secretary Robert Rubin to serve on the U.S. Treasury Advisory Council on Financial Institutions.  Mr. Moore has served as a trustee and board member of a number of organizations including, Carnegie Hall, the National Gallery (London), the London Symphony Orchestra, and currently serves as the Chairman of the Institute of Contemporary Arts (London).  Mr. Moore attended the London School of Economics and holds a B.A. with Honors from Pomona College and a M.B.A. from Harvard Graduate School of Business Administration.

About Aegean Marine Petroleum Network Inc.

Aegean Marine Petroleum Network Inc. is an international marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to ships in port and at sea. The Company procures product from various sources (such as refineries, oil producers, and traders) and resells it to a diverse group of customers across all major commercial shipping sectors and leading cruise lines. Currently, Aegean has a global presence in more than 30 markets and a team of professionals ready to serve its customers wherever they are around the globe. For additional information please visit: www.ampni.com.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed or referenced in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "intend," "anticipate," "estimate," "project," "forecast," "plan," "potential," "may," "should," "expect" and similar expressions identify forward-looking statements. Any forward-looking statements made or referenced in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include our ability to manage growth, our ability to maintain our business in light of our proposed business and location expansion or other changes in our business, our ability to obtain double hull secondhand bunkering tankers, the outcome of legal, tax or regulatory proceedings to which we may become a party, adverse conditions in the shipping or the marine fuel supply industries, our ability to retain our key suppliers and key customers, material disruptions in the availability or supply of crude oil or refined petroleum products, changes in the market price of petroleum, including the volatility of spot pricing, increased levels of competition, compliance or lack of compliance with various environmental and other applicable laws and regulations, our ability to collect accounts receivable, changes in the political, economic or regulatory conditions in the markets in which we operate, and the world in general, our failure to hedge certain financial risks associated with our business, our ability to maintain our current tax treatments and our failure to comply with restrictions or covenants in our debt agreements and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

CONTACTS:
Aegean Marine Petroleum Network Inc.
Tel. +1-212-430-1098
Email: investor@ampni.com

Investor Relations / Media Advisor
Nicolas Bornozis / Daniela Guerrero
Capital Link, Inc.
Tel. +1-212-661-7566
Email: aegean@capitallink.com

For RBM Holdings LLC:
Gagnier Communications
Dan Gagnier
Tel: +1-646-569-5897
Email:  dg@gagnierfc.com

 

Categories: State

Prosafe SE : Proxies for Annual General Meeting to be held 3 May 2018

5 hours 52 min ago


Birgit Aagaard-Svendsen, Director of the Board of Prosafe SE, has been appointed to act as proxy for 6 520 008 shares, corresponding to 8.07 % of the share capital, at the Annual General Meeting to be held 3 May 2018.

The specific proxies are without specific voting instructions and are valid for this Annual General Meeting only.

Prosafe is a leading owner and operator of semi-submersible accommodation vessels. The company is headquartered in Larnaca, Cyprus and listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com  

Larnaca, 2 May 2018
Georgina Georgiou, General Manager
Prosafe SE

For further information, please contact:

Stig Harry Christiansen, Deputy CEO and CFO
Prosafe Management AS
Phone: +47 51 64 25 17 / +47 478 07 813



This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Categories: State

BW Offshore: 2018 Annual General Meeting - Notice

6 hours 10 min ago

Notice is hereby given that the 2018 Annual General Meeting of the Members of BW Offshore Limited will be held at 86-90 Park Lane, London, on 28 May 2018 at 11:00 am (London time).

Please see the attached documents in relation to the Annual General Meeting:
1.            Chairman's Letter;
2.            Notice of AGM and Agenda (including Appendix I);
3.            Form of Proxy; and
4.            Recommendation from the Nomination Committee.

For further information, please contact:
Knut R. Sæthre, CFO, +47 911 17 876

IR@bwoffshore.com or www.bwoffshore.com


This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.

Attachments

Categories: State

Statoil ASA: Notifiable trading

6 hours 20 min ago

The following primary insider in Statoil ASA has sold shares in Statoil ASA:

Magne Andre Hovden, senior vice president in Statoil ASA (OSE:STL, NYSE:STO), has on 2 May 2018 sold 6,000 shares in Statoil ASA at a price of NOK 206 per share and will after the sale hold 13,252 shares in Statoil ASA.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Categories: State

Fortuna to release first quarter 2018 financial results on May 9, 2018; Conference call at 12 p.m. Eastern on May 10, 2018

7 hours 37 min ago

VANCOUVER, British Columbia, May 02, 2018 (GLOBE NEWSWIRE) -- Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI) announces that it will release its financial statements and MD&A for the first quarter after the market closes on Wednesday, May 9, 2018.

A conference call to discuss the financial and operational results will be held on Thursday, May 10, 2018 at 9:00 a.m. Pacific | 12:00 p.m. Eastern.  Hosting the call will be Jorge A. Ganoza, President and CEO, and Luis D. Ganoza, Chief Financial Officer. 

Shareholders, analysts, media and interested investors are invited to listen to the live conference call by logging onto the webcast at: http://www.investorcalendar.com/IC/CEPage.asp?ID=176642 or over the phone by dialing just prior to the starting time.

Conference call details:

Date:  Thursday, May 10, 2018
Time: 9:00 a.m. Pacific | 12:00 p.m. Eastern  

Dial in number (Toll Free): +1.877.407.8035
Dial in number (International): +1.201.689.8035

Replay number (Toll Free): +1.877.481.4010
Replay number (International): +1.919.882.2331
Replay Passcode: 10450

Playback of the conference call will be available until May 24, 2018 at 11:59 p.m. Eastern.  Playback of the webcast will be available until August 10, 2018.  In addition, a transcript of the call will be archived in the company’s website: https://www.fortunasilver.com/investors/financials/2018/.     

About Fortuna Silver Mines Inc.

Fortuna is a growth oriented, precious metal producer with its primary assets being the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico and the Lindero gold Project in Argentina.  The company is selectively pursuing acquisition opportunities throughout the Americas and in select other areas.  For more information, please visit its website at www.fortunasilver.com.

ON BEHALF OF THE COMPANY

Carlos Baca
Investor Relations manager

Trading symbols: NYSE: FSM | TSX: FVI

Investor Relations:

T (Peru): +51.1.616.6060, ext. 0
E: info@fortunasilver.com

Forward Looking Statements

This news release contains forward looking statements which constitute “forward looking information” within the meaning of applicable Canadian securities legislation and “forward looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 (collectively, “Forward looking Statements”). All statements included herein, other than statements of historical fact, are Forward looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward looking Statements. The Forward looking Statements in this news release may include, without limitation, statements about the Company’s plans for its mines and mineral properties; the Company’s business strategy, plans and outlook; the merit of the Company’s mines and mineral properties; mineral resource and reserve estimates; timelines; the future financial or operating performance of the Company; expenditures; approvals and other matters. Often, but not always, these Forward looking Statements can be identified by the use of words such as “will”, “will be” or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.

Forward looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by the Forward looking Statements. Such uncertainties and factors include, among others, changes in general economic conditions and financial markets; changes in prices for silver and other metals; technological and operational hazards in Fortuna’s mining and mine development activities; risks inherent in mineral exploration; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries; governmental and other approvals; political unrest or instability in countries where Fortuna is active; labor relations issues; as well as those factors discussed under “Risk Factors” in the Company's Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward looking Statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to expectations regarding mine production costs; expected trends in mineral prices and currency exchange rates; the accuracy of the Company’s current mineral resource and reserve estimates; that the Company’s activities will be in accordance with the Company’s public statements and stated goals; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained; that there will be no significant disruptions affecting operations and such other assumptions as set out herein. Forward looking Statements are made as of the date hereof and the Company disclaims any obligation to update any Forward looking Statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that Forward looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on Forward looking Statements.

Categories: State

EMGS: Trading period for the subscription rights will end today at 16:30 CET

9 hours 33 min ago


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO U.S. NEWS WIRE SERVICES, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, HONG KONG, SINGAPORE OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO BUY, SELL OR SUBSCRIBE FOR ANY SECURITIES DESCRIBED HEREIN.

Reference is made to the stock exchange notifications published by Electromagnetic Geoservices ASA ("EMGS" or the "Company") pertaining to the Comprehensive Refinancing, including the stock exchange notifications published on 16 April 2018 and 19 April 2018.

The trading period for the Rights Issue Subscription Rights expires today, 2 May 2018, at 16:30 CET.

Any Rights Issue Subscription Rights not sold prior to 16:30 CET today, or not used to subscribe for new shares in the Rights Issue prior to 12:00 CET on 4 May 2018, will lapse and cease to carry any value.

For further information, please contact:
Hege Veiseth, CFO, +47 99 21 67 43

About EMGS
EMGS, the marine EM market leader, uses its proprietary electromagnetic (EM) technology to support oil and gas companies in their search for offshore hydrocarbons. EMGS supports each stage in the workflow, from survey design and data acquisition to processing and interpretation. The Company's services enable the integration of EM data with seismic and other geophysical and geological information to give explorationists a clearer and more complete understanding of the subsurface. This improves exploration efficiency and reduces risks and the finding costs per barrel.

EMGS operates on a worldwide basis with offices in Trondheim, Oslo, Houston, Villahermosa, Rio de Janeiro and Kuala Lumpur.

For more information, visit www.emgs.com


Categories: State

Providence Resources P.l.c. - Technical Update - Frontier Exploration Licence 3/04 - Dunquin

2 May 2018 - 1:02am

TECHNICAL UPDATE
FRONTIER EXPLORATION LICENCE 3/04
DUNQUIN

  • PROVIDENCE PRESENTS FEL 3/04 TECHNICAL PAPER AT AAPG ERC LISBON 2018

Dublin and London - May 2, 2018 - Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil and Gas Exploration Company (the "Company"), today provides an technical update regarding Frontier Exploration Licence ("FEL") 3/04 located in the southern Porcupine Basin.  FEL 3/04 is operated by Eni Ireland BV (36.913%) on behalf of its partners, Repsol Exploracion Irlanda SA (33.557%), Providence Resources P.l.c. (26.846%) and Sosina Exploration Limited (2.684%), collectively referred to as the "FEL 3/04 Partners".  FEL 3/04 contains the undrilled Lower Cretaceous "Dunquin South" carbonate exploration prospect.

Dr. John O'Sullivan, Technical Director at Providence, will present a technical paper on FEL 3/04 at the American Association of Petroleum Geologist's (AAPG) European Regional Conference (ERC) in Lisbon this morning.  A copy of this presentation is available for download on the company's website at www.providenceresources.com.

INVESTOR ENQUIRIES   Providence Resources P.l.c. Tel: +353 1 219 4074 Tony O'Reilly, Chief Executive Officer   John O'Sullivan, Technical Director            Cenkos Securities plc Tel: +44 131 220 9771 Neil McDonald/Derrick Lee       J&E Davy Tel: +353 1 679 6363 Anthony Farrell       Mirabaud Securities Limited Tel: + 44 20 3167 7221 Peter Krens       MEDIA ENQUIRIES   Powerscourt Tel: +44 207 250 1446 Peter Ogden       Murray Consultants Tel: +353 1 498 0300 Pauline McAlester  

ABOUT PROVIDENCE RESOURCES
Providence Resources is an Irish based Oil & Gas Exploration Company with a portfolio of appraisal and exploration assets located offshore Ireland.  Providence's shares are quoted on the AIM in London and the ESM in Dublin.

ANNOUNCEMENT
This announcement has been reviewed by Dr John O'Sullivan, Technical Director, Providence Resources P.l.c.  John is a geology graduate of University College, Cork and holds a Masters in Applied Geophysics from the National University of Ireland, Galway. He also holds a Masters in Technology Management from the Smurfit Graduate School of Business at University College Dublin and a doctorate in Geology from Trinity College Dublin.  John is a Chartered Geologist and a Fellow of the Geological Society of London.  He is also a member of the Petroleum Exploration Society of Great Britain, the Society of Petroleum Engineers and the Geophysical Association of Ireland. John has more than 25 years of experience in the oil and gas exploration and production industry having previously worked with both Mobil and Marathon Oil.  John is a qualified person as defined in the guidance note for Mining Oil & Gas Companies, March 2006 of the London Stock Exchange. Definitions in this press release are consistent with SPE guidelines. SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has been used in preparing this announcement.

Categories: State

TGS Q1 2018 webcast and teleconference

2 May 2018 - 12:51am

ASKER, NORWAY (2 May 2018) - TGS will release its Q1 2018 results at approximately 07:00 CEST on 9 May 2017. CEO Kristian Johansen and CFO Sven Børre Larsen will present the results at 09:00 CEST at the Felix Conference Center, Aker Brygge, Oslo, Norway. The presentation is open to the public and can be followed live on the internet at www.tgs.com.

The slides from the presentation will also be available in PDF format at both the TGS and Oslo Stock Exchange websites.

CEO Kristian Johansen and CFO Sven Børre Larsen will host a conference call on 9 May 2017 at 15:00
CEST (09:00 EDT).   Attendees may want to call 5-10 minutes before to ensure registration and access.

  • Norwegian attendees are invited to call 800 51084 or +47 2100 2610
  • International attendees are invited to call 0800 358 6377 or +44 (0)330 336 9105
  • US attendees are invited to call +1 800 239 9838 or +1 323-794-2551

Participants will need to quote the following confirmation code when dialing into the conference: 6527744.

A Q&A session will follow a short introduction, based upon the presentation issued in the morning. To pose a question, please press *1.

A replay of the conference call will be available shortly after. To access replay of the TGS conference call, dial + 47 23 50 00 77 or + 800 196 72 (Norway), +44 (0) 207 660 0134 or 0 808 101 1153 (International) or +1 719-457-0820 or 888-203-1112 (US) replay access code 6527744 followed by # (pound-sign).

 

A replay of the conference call will also be available at www.tgs.com.


Company summary     

TGS-NOPEC Geophysical Company (TGS) provides multi-client geoscience data to oil and gas Exploration and Production companies worldwide.  In addition to extensive global geophysical and geological data libraries that include multi-client seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, TGS also offers advanced processing and imaging services, interpretation products, and data integration solutions.

For more information visit TGS online at www.tgs.com.

Forward-looking statements and contact information

All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include TGS' reliance on a cyclical industry and principle customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.

TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO:TGS).

TGS sponsored American Depositary Shares trade on the U.S. over-the-counter market under the symbol "TGSGY".


For additional information about this press release please contact:

Sven Børre Larsen
Chief Financial Officer
Tel: +47 90 94 36 73
Email: sven.larsen@tgs.com

Will Ashby
VP HR & Communication
Tel: +1 713 860 2184
Email: will.ashby@tgs.com


This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Categories: State

Report for the three months ended 31 March 2018

2 May 2018 - 12:30am

                                                                                               


  • Strong EBITDA, operating cash flow and net result.
  • Free cash flow of approximately MUSD 170.
  • Production above guidance.
  • Operating cost of USD 3.82 per barrel.
  • Positive appraisal result on Luno II with PDO submission planned around the end of 2018.
 Financial summary1 Jan 2018-
31 Mar 2018
3 months1 Jan 2017-
31 Mar 2017
3 months1 Jan 2017-
31 Dec 2017
12 months 

  Production in Mboepd

83.1 

82.6 

86.1Revenue and other income in MUSD692.9421.51,997.0EBITDA in MUSD456.5355.81,501.5Operating cash flow in MUSD461.8365.91,530.0Net result in MUSD228.859.2380.9Earnings/share in USD10.680.181.13Earnings/share fully diluted in USD10.670.181.13Net debt3,724.44,028.73,883.6

The numbers included in the table above for 2017 are based on continuing operations.
1 Based on net result attributable to shareholders of the Parent Company.


Comments from Alex Schneiter, President and CEO of Lundin Petroleum:
"With production above guidance and a further reduced operating cost, I am pleased to report that Lundin Petroleum has delivered a strong financial performance for the first quarter 2018. With free cash flow generation of approximately MUSD 170 before debt repayments, we are already close to matching the free cash flow generated for the full year 2017. Significant increases in EBITDA and operating cash flow means that we can report a net result that is close to four times the net result for the same period in 2017. These results truly set the tone for what we believe will be another profitable and successful year for Lundin Petroleum. Our production guidance for 2018 remains unchanged at between 74 to 82 Mboepd.       

The very active offshore installation programme for Phase 1 of Johan Sverdrup has recently begun. The steel jacket for the drilling platform and the topsides for the riser platform were successfully installed on the field in April. I was impressed to see, during my visit to the Haugesund yard in Norway last month, the large topside for the drilling platform being prepared for installation in June this year. Work on Phase 2 is also well underway and we will submit the Phase 2 PDO before September 2018.

Our organic growth strategy continues to deliver with the recent successful appraisal of the Luno II discovery, located just south of the Edvard Grieg field, where development studies will be progressed with the aim of submitting a PDO around the end of 2018. We are also looking forward to the results from the appraisal of the nearby Rolvsnes discovery, which if successful, could be another likely tie-back development to the Edvard Grieg platform. In addition, drilling is ongoing for an extended well test at the Alta discovery in the southern Barents Sea, which will give us important information for further appraisal and development activities and improve our understanding of this frontier area.

The exploration programme for 2018 has been updated to ten wells, targeting a revised total of approximately 600 MMboe of net unrisked resources in our six core exploration areas. I firmly believe in our ability to continue to find new resources and with a clear and active organic growth strategy, the future looks as promising as ever for our Company.”

Webcast presentation
Listen to Alex Schneiter, President and CEO, and Teitur Poulsen, CFO, commenting on the report at a webcast held on Wednesday 2 May 2018 at 09.00 CEST.

Follow the presentation live at www.lundin-petroleum.com or by dialling in on the following telephone numbers:

Sweden: +46 8 519 993 55
Norway: +47 23 500 211
UK:  +44 203 194 05 50
International Toll Free: +1 855 269 26 05

https://lundinpetroleum.videosync.fi/2018-05-02_q1


Lundin Petroleum is one of Europe’s leading independent oil and gas exploration and production companies with operations focused on Norway and listed on NASDAQ Stockholm (ticker "LUPE"). Read more about Lundin Petroleum’s business and operations at www.lundin-petroleum.com


For further information, please contact:

Alex Budden
VP Communications & Investor Relations
Tel: +41 22 595 10 19
alex.budden@lundin.ch
 Sofia Antunes
Investor Relations Officer
Tel: +41 795 23 60 75
sofia.antunes@lundin.ch Robert Eriksson
Manager, Media Communications
Tel: +46 701 11 26 15
robert.eriksson@lundin-petroleum.se


This information is information that Lundin Petroleum AB is required to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07.30 CEST on 2 May 2018.

Forward-Looking Statements

Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable securities legislation). Such statements and information (together, "forward-looking statements") relate to future events, including the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will prove to be correct and such forward-looking statements should not be relied upon.  These statements speak only as on the date of the information and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, operational risks (including exploration and development risks), productions costs, availability of drilling equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. These risks and uncertainties are described in more detail under the heading “Risks and Risk Management” and elsewhere in the Company’s annual report. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement.

Attachment

Categories: State

Suncor Energy reports first quarter 2018 results

1 May 2018 - 7:05pm

Unless otherwise noted, all financial figures are unaudited, presented in Canadian dollars (Cdn$), and have been prepared in accordance with International Financial Reporting Standards, specifically International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board. Production volumes are presented on a working interest basis, before royalties, except for Libya, which is on an entitlement basis. Certain financial measures referred to in this news release (funds from operations, operating earnings, Oil Sands operations cash operating costs and Syncrude cash operating costs) are not prescribed by Canadian generally accepted accounting principles (GAAP). See the Non-GAAP Financial Measures section of this news release. References to Oil Sands operations exclude Suncor's interest in Fort Hills' and Syncrude's operations.

CALGARY, Alberta, May 01, 2018 (GLOBE NEWSWIRE) --  “The value of our integrated model was front and centre this quarter as strong financial results from our downstream and offshore assets helped to offset the impact of lower Oil Sands production, and our refineries were able to fully capture the lost value associated with unfavourable heavy crude differentials at Oil Sands,” said Steve Williams, president and chief executive officer. “Our balance sheet strength allowed us to increase our stake in Syncrude and further invest in offshore development. We also increased our dividend and approved a renewal of our share repurchase program, which reaffirms our commitment to return cash to shareholders.”

  • Funds from operations of $2.164 billion ($1.32 per common share). Cash flow provided by operating activities, which includes changes in non‑cash working capital, was $724 million ($0.44 per common share).

  • Operating earnings of $985 million ($0.60 per common share) and net earnings of $789 million ($0.48 per common share).

  • Refinery utilization of 98% and crude throughput of 453,500 barrels per day (bbls/d), which is the highest ever for a first quarter.

  • Fort Hills production averaged 29,800 bbls/d, including bitumen froth sent to Oil Sands Base, with the second of three extraction trains coming online at the end of the quarter and ramping up ahead of schedule.

  • Hebron production averaged 8,200 bbls/d and continues to also ramp up ahead of schedule.

  • Total upstream quarterly production was 689,400 barrels of oil equivalent per day (boe/d).

  • During the first quarter, Suncor closed the previously announced acquisition of Mocal Energy Limited’s (Mocal) 5% interest in Syncrude, adding approximately 17,500 bbls/d of sweet synthetic crude oil capacity.

  • The company continued to demonstrate its commitment to return cash to shareholders by repurchasing $389 million of shares during the first quarter and distributing $590 million in dividends.

Financial Results

Suncor recorded first quarter 2018 operating earnings of $985 million ($0.60 per common share), compared to $812 million ($0.49 per common share) in the prior year quarter. The quarter-over-quarter increase was a result of improved crude oil pricing and increased refining margins, refinery utilization of 98% and strong In Situ production, partially offset by increased operating costs, which were primarily due to higher planned and unplanned maintenance expenses and the addition of full operating costs at Fort Hills while production ramps up. Oil Sands results in the current period were impacted by a weather‑related outage at the company’s Oil Sands Base plant, as well as constrained capacity on a bitumen feed line at Syncrude, which resulted in lower overall Oil Sands production. The planned upgrader turnaround at Syncrude, originally scheduled to begin in the second quarter of 2018, was advanced to the first quarter to mitigate the impact of the line constraint on annual production.

Funds from operations were $2.164 billion ($1.32 per common share), compared to $2.024 billion ($1.21 per common share) in the first quarter of 2017 and were influenced primarily by the same factors impacting operating earnings noted above. Cash flow provided by operating activities, which includes changes in non‑cash working capital, was $724 million for the first quarter of 2018, compared to $1.628 billion for the first quarter of 2017. The change in non‑cash working capital in the first quarter of 2018 resulted from an increase in accounts receivable on an improving price environment, a substantial build of product inventory in advance of major turnarounds and the payment of deferred 2017 tax instalments.

Net earnings were $789 million ($0.48 per common share) in the first quarter of 2018, compared to $1.352 billion ($0.81 per common share) in the prior year quarter. Net earnings for the first quarter of 2018 included a $329 million unrealized after-tax foreign exchange loss on the revaluation of U.S. dollar denominated debt and a non-cash after-tax gain associated with the exchange of the company’s mineral landholdings in northeast British Columbia with Canbriam Energy Inc. (Canbriam) of $133 million. Net earnings in the prior year quarter included a $103 million unrealized after-tax foreign exchange gain on the revaluation of U.S. dollar denominated debt and a $437 million after-tax gain on the sale of the company’s lubricants business and its interest in the Cedar Point wind facility.

Operating Results

Suncor’s total upstream production was 689,400 boe/d in the first quarter of 2018, compared to 725,100 boe/d in the prior year quarter.

Oil Sands operations production was 404,800 bbls/d in the first quarter of 2018, compared to 448,500 bbls/d in the prior year quarter and upgrader utilization in the first quarter of 2018 declined to 80%, compared to 95% in the prior year period. The decrease in production and upgrader utilization was a result of lower production from Oil Sands Base due to a weather-related outage early in the quarter, partially offset by strong In Situ production. Oil Sands Base returned to normal operations by the end of February.

Oil Sands operations cash operating costs per barrel increased to $26.85 in the first quarter of 2018, from $22.55 in the prior year quarter, primarily as a result of the weather-related outage which led to lower production and an increase in unplanned maintenance costs. In addition, higher planned maintenance costs incurred in preparation for the Upgrader 1 turnaround, which began in the second quarter of 2018, were partially offset by lower natural gas prices.

Fort Hills began producing bitumen late in January and the ramp up is progressing ahead of schedule, with production averaging 29,800 bbls/d, net to Suncor, in the first quarter of 2018, including 5,200 bbls/d of bitumen froth further processed by Oil Sands Base. The second of three extraction trains at Fort Hills became operational at the end of the first quarter of 2018, adding further production capacity, and Suncor expects to achieve 90% of nameplate capacity ahead of schedule.

Suncor’s share of Syncrude production was 142,300 bbls/d in the first quarter of 2018, compared to 142,100 bbls/d in the prior year quarter. Production was comparable to the prior year quarter as a result of unplanned incidents during both periods. The first quarter of 2018 was impacted by constrained capacity on a bitumen feed line and an upgrader turnaround originally scheduled for the second quarter of 2018, which Syncrude advanced in order to resolve the feed line issue and minimize the impact on overall annual production, partially offset by the additional 5% working interest acquired partway through the quarter. The first quarter of 2017 was impacted by a facility incident late in the quarter. The events in each respective quarter resulted in Syncrude upgrader reliability of 71% in the first quarter of 2018 and 75% in the prior year quarter.

Syncrude cash operating costs per barrel were $50.75 in the first quarter of 2018, an increase from $45.15 in the prior year quarter, due to higher operating costs associated with advanced planned upgrader maintenance, unplanned maintenance to address the line constraint and an increase in preventive maintenance to improve long-term reliability, partially offset by lower natural gas prices.

Production volumes in Exploration and Production (E&P) were 117,700 boe/d in the first quarter of 2018, compared to 134,500 boe/d in the prior year quarter. The decrease was primarily due to natural declines in the United Kingdom and East Coast Canada, partially offset by the accelerated ramp up of production at Hebron, which averaged 8,200 bbls/d in the quarter. A third production well at Hebron came online early in the second quarter of 2018.

“The ramp up at both Fort Hills and Hebron is progressing ahead of schedule,” said Williams. “Production from these growth projects and strong In Situ performance helped mitigate the impact of operational challenges at Oil Sands Base and Syncrude. Oil Sands Base returned to full production rates in February.”

The company’s crude oil and refined product sales benefited from improved benchmark pricing across the integrated value chain in the first quarter of 2018, when compared to the prior year quarter. For the three months ended March 31, 2018, the impact of widening heavy crude oil differentials on Oil Sands earnings was offset by higher realized refining margins in the company’s Refining and Marketing (R&M) segment. Higher refining benchmark crack spreads in the first quarter of 2018 combined with improved product location differentials and the benefit of consuming lower priced heavy oil feedstock resulted in a 38% increase in realized margins, as compared to the prior year quarter.

Refinery crude throughput in R&M was 453,500 bbls/d in the first quarter of 2018, which is the highest ever for a first quarter, compared to 429,900 bbls/d in the prior year quarter. The increase was due to strong reliability at all of the company’s refineries, with the prior year quarter being impacted by a third-party power outage at the Commerce City refinery. Average refinery utilization was 98% in the first quarter of 2018, compared to 93% in the prior year quarter, and Suncor continued to build product inventory of approximately 6 million barrels to support second quarter sales during the upcoming Edmonton and Sarnia turnarounds.

Strategy Update

Suncor’s 2018 capital program will be focused on the efficient and effective ramp up at both of Suncor’s major growth projects, Fort Hills and Hebron, development of step-out offshore projects and improving the safety and reliability of the company’s operating assets.

In the first quarter of 2018, total capital and exploration expenditures were $1.214 billion (excluding capitalized interest), compared to $1.206 billion in the prior year period, with increased sustaining capital expenditures offsetting the decrease in growth capital associated with the commissioning of the company’s major growth projects, Fort Hills and Hebron. Higher sustaining capital in the first quarter of 2018 was primarily driven by an increase in planned maintenance activity in 2018. This included preliminary planning work on the first full turnaround of Oil Sands operations Upgrader 1 in five years, the advancement of the upgrader turnaround at Syncrude, refinery turnaround preparation, as well as an increase in spend associated with the company’s recently approved tailings management plan. The company anticipates the majority of the turnaround costs to be incurred in the first half of 2018, and expects to remain within the capital guidance range of $4.5 to $5.0 billion for the year.

Fort Hills began producing paraffinic froth‑treated bitumen from the first of three secondary extraction trains on January 27, 2018, and the production ramp up to the project’s nameplate capacity of 194,000 bbls/d (105,000 bbls/d net to Suncor) is progressing ahead of schedule following the commissioning of the second extraction train at the end of the first quarter of 2018. The third secondary extraction train is expected to come online in the second quarter of 2018. Also during the first quarter, Suncor acquired additional working interests in the Fort Hills project from Total E&P Canada Ltd. (Total). Under the terms of the agreement reached in the fourth quarter of 2017, Suncor’s share of the project increased to 54.11% and Teck Resources Limited’s share increased to 21.31%, while Total’s share decreased to 24.58%. Working interests in the Fort Hills project may be further adjusted in accordance with the terms of the agreement.

During the first quarter of 2018, Suncor closed the previously announced transaction to purchase an additional 5% interest in Syncrude from Mocal for approximately $923 million, with a closing date of February 23, 2018. Suncor’s share in the Syncrude joint venture project is now 58.74%.

Production at Hebron continues to ramp up, with the second production well coming online ahead of schedule during the first quarter of 2018. At peak production, the project is expected to produce more than 30,000 bbls/d, net to Suncor, ramping up over the next several years.

During the first quarter of 2018, the company entered into an agreement to acquire a 17.5% interest in the Fenja development project offshore Norway, with the transaction expected to close in the second quarter of 2018. The project has received government approval and is a strategic fit for Suncor’s offshore portfolio that is expected to provide profitable growth in an area where Suncor has existing knowledge, expertise and assets. Other E&P activity in the first quarter included development drilling at White Rose, Terra Nova, Hebron and Hibernia, and development work on the West White Rose Project and the Norwegian Oda project.

During the first quarter of 2018, Suncor closed the previously announced transaction with Canbriam, a private natural gas company, to exchange all of Suncor’s northeast British Columbia mineral landholdings, and consideration of $52 million, for a 37% equity interest in Canbriam.

“The acquisitions in the first quarter highlight Suncor’s commitment to our core assets and profitable growth,” said Williams. “Our increased ownership position in Syncrude reflects our belief in the asset’s further long-term potential and the opportunity to create significant value through integration.”

During the first quarter of 2018, Suncor’s Board of Directors approved a 12.5% dividend increase and an additional $2.0 billion in authority for share repurchases. The company also repurchased and cancelled $389 million of its own shares in the first quarter of 2018, for a total of $1.8 billion to the end of the quarter.

Operating Earnings Reconciliation(1)

 Three months ended
March 31 ($ millions)2018 2017  Net earnings789 1 352  Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt329 (103) Gain on significant disposals(2)(133)(437) Operating earnings(1)985 812  

(1)           Operating earnings is a non‑GAAP financial measure. All reconciling items are presented on an after‑tax basis. See the Non‑GAAP Financial Measures section of this news release.

(2)           Non‑cash after‑tax gain of $133 million in the E&P segment related to the asset exchange with Canbriam for the company’s mineral landholdings in northeast British Columbia in the first quarter of 2018. The first quarter of 2017 included a $354 million after‑tax gain in the R&M segment, related to the sale of the company’s lubricants business, combined with an after‑tax gain of $83 million in the Corporate segment related to the sale of the company’s interest in the Cedar Point wind facility.

Corporate Guidance

Suncor has updated its full year business environment outlook assumptions to reflect average actual year‑to‑date realized prices plus forward curve pricing. Brent Sullom Voe has been updated to US$67.00 from US$58.00, WTI at Cushing to US$63.00 from US$55.00, WCS at Hardisty to US$41.00 from US$40.00, New York Harbor 3‑2‑1 crack to US$18.00 from US$16.00, AECO‑C Spot to $1.50 from $2.50 and the Cdn$/US$ exchange rate to 0.78 from 0.80. These updates have resulted in a corresponding increase to full year current income tax to $1,050 million – $1,350 million from $450 million – $750 million. For further details and advisories regarding Suncor’s 2018 corporate guidance, see suncor.com/guidance.

Normal Course Issuer Bid

The Toronto Stock Exchange (TSX) accepted a notice filed by Suncor of its intention to renew its normal course issuer bid (the NCIB) to continue to purchase shares under its previously announced buyback program through the facilities of the TSX, New York Stock Exchange and/or alternative trading platforms. The notice provides that Suncor may purchase for cancellation up to approximately $2.15 billion worth of its common shares beginning May 4, 2018 and ending May 3, 2019.

The actual number of common shares that may be purchased and the timing of any such purchases will be determined by Suncor. Suncor believes that, depending on the trading price of its common shares and other relevant factors, purchasing its own shares represents an attractive investment opportunity and is in the best interests of the company and its shareholders. The company does not expect the decision to allocate cash to repurchase shares will affect its long-term growth strategy. Between May 1, 2017 and April 30, 2018 and pursuant to Suncor’s previous normal course issuer bid, Suncor repurchased 43,213,523  shares on the open market for approximately $1.85 billion, at a weighted average price of $42.83 per share. Pursuant to the NCIB, Suncor has agreed that it will not purchase more than 52,285,330 common shares, which is equal to approximately 3% of Suncor’s issued and outstanding common shares.

Subject to the block purchase exemption that is available to Suncor for regular open market purchases under the NCIB, Suncor will limit daily purchases of Suncor common shares on the TSX in connection with the NCIB to no more than 25% (725,092) of the average daily trading volume of Suncor's common shares on the TSX during any trading day. Purchases under the NCIB will be made through open market purchases at market price, as well as by other means as may be permitted by the TSX and securities regulatory authorities, including by private agreements. Purchases made by private agreement under an issuer bid exemption order issued by a securities regulatory authority will be at a discount to the prevailing market price as provided in the exemption order. In the future, Suncor may enter into an automatic share purchase plan in relation to purchases made in connection with the NCIB.

Non-GAAP Financial Measures

Operating earnings  is defined in the Non‑GAAP Financial Measures Advisory section of Suncor’s Management's Discussion and Analysis dated May 1, 2018 (the MD&A) and reconciled to GAAP measures in the Consolidated Financial Information and Segment Results and Analysis sections of the MD&A. Oil Sands operations cash operating costs and Syncrude cash operating costs are defined in the Non-GAAP Financial Measures Advisory section of the MD&A and reconciled to GAAP measures in the Segment Results and Analysis section of the MD&A. Funds from operations is defined and reconciled to GAAP measures in the Non‑GAAP Financial Measures Advisory section of the MD&A. These non-GAAP financial measures are included because management uses this information to analyze business performance, leverage and liquidity and it may be useful to investors on the same basis. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Legal Advisory – Forward-Looking Information

This news release contains certain forward-looking information and forward-looking statements (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements in this news release include references to: expectations about Fort Hills, including that the ramping up of the project is ahead of schedule, that the project will achieve 90% of nameplate capacity ahead of schedule, that the third secondary extraction train will come online in the second quarter of 2018, the project’s nameplate capacity of 194,000 bbls/d (105,000 bbls/d net to Suncor) and the possibility that working interests in the Fort Hills project may be further adjusted in accordance with the terms of the agreement with the Fort Hills partners; the expectation that, at peak production, the Hebron project is expected to produce more than 30,000 bbls/d, net to Suncor, ramping up over the next several years, and that the ramping up of the project is ahead of schedule; the expectation that advancing the planned upgrader turnaround at Syncrude into the first quarter will mitigate the impact to annual production of the bitumen feed line constraint that occurred in the first quarter of 2018; the focus of Suncor’s 2018 capital program on the efficient and effective ramp up at both of Suncor’s major growth projects, Fort Hills and Hebron, development of step-out offshore projects and improving the safety and reliability of the company’s operating assets; the expectations that the majority of turnaround costs will be incurred in the first half of 2018 and that the company will remain within the capital guidance range of $4.5 to $5.0 billion for the year; the expectation that the transaction to acquire a 17.5% interest in the Fenja development project will close in the second quarter of 2018 and that the project will provide profitable growth in an area where Suncor has existing knowledge, expertise and assets; Suncor’s belief in Syncrude’s further long-term potential and the opportunity to create significant value through integration; Suncor’s commitment to return cash to shareholders, plans respecting the NCIB, the belief that, depending on the trading price of its common shares and other relevant factors, the company purchasing its own shares represents an attractive investment opportunity and is in the best interests of the company and its shareholders, and the company’s expectation that the decision to allocate cash to repurchase shares will not affect its long-term growth strategy; and Suncor’s business environment outlook assumption for Brent Sullom Voe, WTI at Cushing, WCS at Hardisty, New York Harbor 3-2-1, AECO-C Spot, the Cdn$/US$ exchange rate, and full year current income taxes. In addition, all other statements and information about Suncor’s strategy for growth, expected and future expenditures or investment decisions, commodity prices, costs, schedules, production volumes, operating and financial results and the expected impact of future commitments are forward-looking statements. Some of the forward-looking statements and information may be identified by words like “expects”, “anticipates”, “will”, “estimates”, “plans”, “scheduled”, “intends”, “believes”, “projects”, “indicates”, “could”, “focus”, “vision”, “goal”, “outlook”, “proposed”, “target”, “objective”, “continue”, “should”, “may” and similar expressions.

Forward-looking statements are based on Suncor’s current expectations, estimates, projections and assumptions that were made by the company in light of its information available at the time the statement was made and consider Suncor’s experience and its perception of historical trends, including expectations and assumptions concerning: the accuracy of reserves and resources estimates; commodity prices and interest and foreign exchange rates; the performance of assets and equipment; capital efficiencies and cost savings; applicable laws and government policies; future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to Suncor; the execution of projects; and the receipt, in a timely manner, of regulatory and third-party approvals.

Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Suncor. Suncor’s actual results may differ materially from those expressed or implied by its forward-looking statements, so readers are cautioned not to place undue reliance on them.

The MD&A and Suncor’s Annual Information Form, Form 40-F and Annual Report to Shareholders, each dated March 1, 2018, and other documents it files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available without charge from Suncor at 150 6th Avenue S.W., Calgary, Alberta T2P 3E3, by calling 1-800-558-9071, or by email request to invest@suncor.com or by referring to the company’s profile on SEDAR at sedar.com or EDGAR at sec.gov. Except as required by applicable securities laws, Suncor disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Legal Advisory – BOEs

Certain natural gas volumes have been converted to barrels of oil equivalent (boe) on the basis of one barrel to six thousand cubic feet. Any figure presented in boe may be misleading, particularly if used in isolation. A conversion ratio of one bbl of crude oil or natural gas liquids to six thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Suncor Energy is Canada's leading integrated energy company. Suncor's operations include oil sands development and upgrading, offshore oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand. A member of Dow Jones Sustainability indexes, FTSE4Good and CDP, Suncor is working to responsibly develop petroleum resources while also growing a renewable energy portfolio. Suncor is listed on the UN Global Compact 100 stock index. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.

For more information about Suncor, visit our web site at suncor.com, follow us on Twitter @Suncor or together.suncor.com

A full copy of Suncor's first quarter 2018 Report to Shareholders and the financial statements and notes (unaudited) can be downloaded at suncor.com/financialreporting.

Suncor’s updated Investor Relations presentation is available online, visit suncor.com/investor-centre.

To listen to the webcast discussing Suncor's first quarter results, visit suncor.com/webcasts.
Representing management will be Steve Williams, president and chief executive officer, Mark Little, chief operating officer and Alister Cowan, executive vice president and chief financial officer.

Media inquiries:
403-296-4000
media@suncor.com

Investor inquiries:
800-558-9071
invest@suncor.com

 

Categories: State

Raise Production Inc. Announces 2017 Financial Results and Provides Operations Update

1 May 2018 - 5:55pm

CALGARY, Alberta , May 01, 2018 (GLOBE NEWSWIRE) -- Raise Production Inc. (TSX-V:RPC) ("Raise" or the "Company") has released its financial results for the year ended December 31, 2017.

PRESIDENT’S UPDATE

The Company is pleased to provide an update to its shareholders on recent activities related to its operations.

The Company is actively working on finalizing financing to provide working capital for the next 18-24 months. The working capital will be used to purchase inventory, continue to develop the USA markets, add international clients to the portfolio, hire critical staff for commercialization and add a small production manufacturing expansion for rapid response to our existing shop facilities.

HART (Horizontal Artificial Recovery Technology)

The Company is pleased to announce that it has received the “DEVICE” patent from the Canadian Patent Office (CPO) for the HART. This is in addition to the method patent previously announced. This means that the Company not only owns the patent for the method of multiple pumps deployed in a horizontal wellbore, the additional award protects the unique pump and associated equipment design and function.

The Company is in the process of securing a partner for deployment of the HART in the USA who will provide a more productive wellbore with improved economic benefits. The Company believes that it will have a customer this year and all indicators are this will be in the USA. HART system deployment will commence at that time. A minor modification to the activation system is the only item to be resolved for the deeper, longer and more productive wellbores.

HARP (High Angle Reciprocating Pump)

The HARP is now commercial in Canada and the Company is undergoing slight material modifications for the USA market to make it better suited to deeper, higher fluid load wells in the USA. Initial tests in the USA have proven the pump to be viable at high angles with significantly increased productivity. The Company has installs slated for May and June 2018 and it expects the USA market to be a significant contributor in the third and fourth quarters of 2018.

The Canadian market has slowed due to spring breakup; however, the Company has a number of installs to complete after this period. The Company is confident that it can achieve a higher level of customer engagement and continued increase in sales through technical forums to gain wider acceptance of this technology. Shareholders are encouraged to view the website to see results from recent installs comparative to conventional pumps.

HALS (High Angle Lift Solution)

As stated previously in the Company’s press release dated April 10, 2018, the Company received a contract from a major Canadian producer to design and supply two HALS systems for use in a heavy oil application. Since that time, the Company has received more interest for this product here in Canada, USA and overseas. The majority of interest is for running the HALS in conjunction with an ESP (Electrical Submersible Pump). ESP’s currently make up the highest volume by revenue of all artificial lift solutions.

Upcoming

The Company is excited for the coming 12-24 months and believes that with a new financial injection for working capital, more focus on commercialization of the HARP and HALS, and less cash allocated to research & development projects, it is going in the right direction to obtain market penetration and success. The Company would like to thank all shareholders for their continued support and encouragement.

RESULTS OF OPERATIONS  Statements of Loss and Comprehensive Loss      20172016      Revenue $333,824$220,835   Cost of sales 258,838169,818Gross margin 74,98651,017   Other income 22,38114,437   Expenses:  General and administration1,576,8921,334,477Stock-based compensation330,78684,390Depreciation and amortization100,703140,788Research expenses98,79094,555Loss on derecognition of assets–90,719Finance costs7,84015,771 2,115,0111,760,700   Net loss and comprehensive loss$(2,017,644)$(1,695,246)   Net loss per share – basic and diluted$(0.02)$(0.02)


About Raise Production Inc.

The Company is an innovative oilfield service company that focuses its efforts on the production service sector, utilizing its proprietary products to enhance and increase ultimate production in both conventional and unconventional oil and gas wells.

For further information please contact:

Eric Laing, President and Chief Executive Officer
E-mail: elaing@raiseproduction.com

Susan Scullion, Chief Financial Officer
E-mail: sscullion@raiseproduction.com

Raise Production Inc.
2620-58th Avenue S.E.
Calgary, Alberta T2C 1G5
Tel: (403) 699-7675

Web site at: www.raiseproduction.com

Neither 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 news release.

Certain information included in this news release constitutes forward-looking statements under applicable securities legislation. Forward-looking statements or information typically contain or can be identified by statements that include words such as "anticipate", "assume", "based", "believe", "can", "continue", "depend", "estimate", "expect", "forecast", "if", "intend", "may", "plan", "project", "propose", "result", "upon", "will", "within" or similar words suggesting future outcomes or statements regarding an outlook. Such forward-looking statements or information are based on a number of assumptions that may prove to be incorrect. Assumptions have been made regarding, among other things: the ability to obtain financing to provide working capital to fund operations, the availability of credit, the ability to commercialize products and operations, the potential to increase recoverable reserves for customers by utilization of the HALS and HART systems, estimates regarding current and projected cash resources and cash flow anticipated sales, the ability to adequately protect proprietary information and technology from its competitors; the ability to obtain partnering opportunities; the ability to attract and retain key personnel and key collaborators; the availability of skilled labour, services and equipment, general economic and financial market conditions, the legislative and regulatory environment of the jurisdictions where the Company carries on business and the ability to successfully compete in targeted markets.

The forward-looking statements contained in this news release are made as of the date hereof and the Company does not undertake any obligation to publicly update or revise any of the included forward-looking statements, except as required by applicable Canadian securities law. Forward-looking statements are based upon the current opinions, estimates, projections, assumptions and expectations of management of the Company as at the effective date of such statements and, in some cases, information supplied by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct.  By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statement will not occur. These risks and uncertainties include, but are not limited to: the possibility that testing, deployment and commercialization of the Company’s products and regulatory changes. Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this news release and such forward-looking statements should not be interpreted or regarded as guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.

Categories: State

TerraForm Power Reports First Quarter 2018 Results

1 May 2018 - 5:36pm

BETHESDA, Md., May 01, 2018 (GLOBE NEWSWIRE) -- TerraForm Power, Inc. (Nasdaq:TERP) (“TerraForm Power”) today reported financial results for the three months ended March 31, 2018. For the first quarter of 2018, TerraForm Power’s results were significantly improved with CAFD of $23 million, compared with $19 million in the first quarter of 2017. Excluding the one-time impact of outages related to the Raleigh wind facility, CAFD was $29 million.

Recent Highlights

  • In advanced negotiations with an original equipment manufacturer to provide a full-wrap, long-term service contract covering all of our wind fleet that features a fixed price that is consistent with our business plan and attractive availability guarantees; contract execution expected in the coming weeks
  • Received regulatory approval to launch an accretive tender offer to acquire 100% of Saeta Yield (“Saeta”), a European renewable power company with 1,000 Megawatts (“MW”) of recently constructed wind and solar assets
  • Declared a Q2 2018 dividend of $0.19 per share, implying $0.76 per share on an annual basis

     Results

   $ in millions, except per share amounts3 Months Ended
3/31/20183 Months Ended
3/31/2017Generation (GWh) 11,834 1,982 Net Loss$(76)$(56)Earnings (Loss) per Share 20.56 (0.37)Adj. EBITDA 396 103 CAFD 323 19 per Share 3,40.16 0.14      

     Results (excluding impact of outages related to Raleigh)

   $ in millions, except per share amounts3 Months Ended
3/31/20183 Months Ended
3/31/2017Adj. EBITDA 3,5$102$103CAFD 3,52919per Share 3,4,50.200.14   

1 Amount in 2017 is adjusted for sale of our UK and Residential portfolios.
2 Earnings per share for the three months ended March 31, 2018 includes the impact of a $145.0 million net loss allocated to non-controlling interests resulting from changes in tax rates effective January 1, 2018.
3  Non-GAAP measures. See “Calculation and Use of Non-GAAP Measures” and “Reconciliation of Non-GAAP Measures” sections. Amounts in 2017 adjusted for sale of our UK and Residential portfolios.
4  Diluted earnings (loss) per share is calculated based on the net income (loss) attributable to Class A common stockholders divided by the weighted average number of shares outstanding. CAFD per share calculated on shares outstanding of Class A common stock and Class B common stock on March 31. For the three months ended March 31, 2018, Class A common stock shares outstanding totaled 148.1 million (three months ended March 31, 2017: 92.2 million). For three months ended March 31, 2018, there were no Class B common stock shares outstanding (three months ended March 31, 2017: 48.2 million).
5  Excluding the impact of outages related to Raleigh.

“We have made significant progress in executing our business plan, which is resilient to macroeconomic factors and capital market volatility,” said John Stinebaugh, CEO of TerraForm Power. “After closing the Saeta acquisition this summer, our growth over the next five years will be driven primarily by executing our cost savings plan, accretion from the acquisition and organic growth initiatives, with limited need to issue equity.”

Growth Initiatives

Over the past few months, we have made significant progress executing an outsourcing agreement for all of our wind fleet. We are currently in advanced negotiations with an original equipment manufacturer to provide a full-wrap, long-term service agreement (“LTSA”). The scope of the LTSA would include comprehensive wind turbine operations and maintenance (O&M) as well as other balance of plant services for a term of 10 years, with flexibility to terminate early. The agreement would also lock in pricing and provide availability guarantees that are consistent with our business plan. We anticipate finalizing the agreement within the next few weeks. While we expect a modest amount of transition costs in order to implement the agreement, we should begin realizing cost savings in the second half of 2018. Combined with the $10 million in cost savings we expect to achieve on a run rate basis by the end of the second quarter, we are confident we will realize approximately $25 million in annual cost savings over the next two to three years.

In April, we received approval from Spain’s National Securities Market Commission (CNMV) of the prospectus for our tender offer to acquire Saeta, including approval of our €12.20 per share offer price as a fair price for a delisting tender offer. Saeta is a European renewable power company with 1,000 MW of wind and solar capacity that has an average remaining life in excess of 23 years. It has historically produced very stable cashflow, with an average contract and/or regulatory life of approximately 14 years. Commencing this week, we will launch a voluntary tender offer to acquire 100% of Saeta, which is supported by irrevocable commitments to purchase over 50% of Saeta’s shares. To the extent we acquire over 90% of Saeta’s shares in the voluntary offer, we will immediately proceed with a merger to acquire the remainder of Saeta. If we acquire less than 90% of Saeta’s shares, we will be able to delist Saeta’s shares by means of a purchase order at the approved price of €12.20 per share, which we anticipate launching shortly after the close of the voluntary offer. In either case, we are very confident we will acquire the vast majority of Saeta’s shares through tender offers by mid-summer.

Since February, it has become apparent to us that the volatility in the capital markets will likely continue for some period of time. As a result, we believe that it is prudent to consider increasing the equity to fund the Saeta transaction from $400 million up to $650 million, which is consistent with our initial underwriting and target returns. If we do so, we believe this would further strengthen our balance sheet and ensure that we have ample access to liquidity. The remainder of the ~$1.2 billion purchase price would be funded with ~$350 million in non-recourse debt raised from TerraForm Power’s unencumbered assets and ~$200 million of cash released from Saeta’s balance sheet. With the incremental equity, the Saeta acquisition would still be very accretive to TerraForm Power’s CAFD per share, and we expect our proforma corporate debt-to-cash flow ratio will decline to within our 4.0x to 5.0x goal, furthering our long-term plan to establish an investment grade rating. With a strong balance sheet and nearly $1 billion of available liquidity under committed facilities after the acquisition closes, we would be well-positioned to make opportunistic acquisitions in this period of market turbulence should they arise.

In addition to opportunistic acquisitions such as Saeta, we are looking for ways to take advantage of investment opportunities within our existing portfolio and to build our pipeline of organic growth opportunities. We are in late stage negotiations to acquire a 6 MW portfolio of operating distributed solar generation assets located in California and New Jersey pursuant to a right of first offer (“ROFO”) associated with a prior acquisition. Expected returns are at the high end of our target range with potential upside from executing our business plan. We have a ROFO on an additional 15 MW of operating distributed solar assets with the same seller, which we may be able to exercise in phases over the next 9-18 months.

We are also progressing a number of opportunities to establish relationships with developers in North America and Europe whereby we may provide capital to fund their pipeline of shovel-ready development projects and add-on acquisitions. We are in discussions with a renewable power developer in Europe in which we would commit capital to fund a strategy to consolidate small, regulated solar facilities in Spain. We are targeting returns on this program that would be accretive to our target return for Saeta.

Operations

In mid-January, the failure of a single faulty blade caused the collapse of a tower at our Raleigh wind facility in Dillon, Ontario. While the incident did not cause any injuries or impact the broader community, it reduced our CAFD for the quarter by approximately $6 million. In order to determine the root cause of the blade failure, we removed from service all 70 turbines at Raleigh and Bishop Hill that utilize the same blades. After a thorough investigation and rigorous inspections of the blades, all turbines were returned to service between mid-March and the end of April.

Excluding outages related to Raleigh, our fleetwide performance was in-line with the same period in the prior year. In addition to the wind outsourcing agreement, we are making progress on our plan to enhance availability at our solar sites. We are in the process of evaluating each of our solar assets that have below average availability to determine the root cause of the underperformance. This will result in a performance improvement plant that should increase availability to our target of 97% and enhance the cash flow of our solar fleet. Finally, the replacement of the battery energy storage system (BESS) at one of our wind farms in Maui is progressing on scope, schedule and budget.

Financial Results

Beginning this quarter, we will report CAFD using the definition that we disclosed last year, which we believe will provide a more meaningful measure for investors to evaluate our financial performance and our ability to pay dividends. As compared to preceding periods, CAFD has been revised to (i) exclude adjustments related to deposits into and withdrawals from restricted cash accounts, required by project financing arrangements, (ii) replace sustaining capital expenditures made during the quarter with the average long-term sustaining capital expenditures necessary to maintain the reliability and efficiency of our assets, and (iii) levelize debt service payments paid during the year rather than including the cash principal and interest payments made during a given quarter. For consistency purposes, we will also begin reclassifying into Adjusted EBITDA certain capital expenditures that we expect will be covered under our long-term service agreement and will be reported as O&M expense, prospectively. As a result of these changes, we expect less volatility in our quarterly CAFD than in previous years.

During the first quarter, our portfolio performed broadly in-line with expectations, excluding the impact of the outages related to Raleigh, delivering Adjusted EBITDA and CAFD of $102 million and $29 million, respectively. This represents a decrease in Adjusted EBITDA of $1 million but an increase of CAFD of $10 million compared to the same period last year. The decrease in Adjusted EBITDA was largely attributable to the transmission outage at Bishop Hill, which was partially offset by stronger resource at our utility scale solar facilities compared with the same period in the prior year. The increase in CAFD resulted from reduced interest expense that more than offset the decline in Adjusted EBITDA. Interest savings were driven by the attractive senior note, term loan B and corporate revolver refinancings completed in Q4 2017 as well as lower debt balances. For the first quarter, our total operating expenses on an annualized basis were $181 million, compared to total operating expenses of $191 million in 2017. The $10 million reduction reflects efficiencies from our organization structure and other cost savings initiatives. Deducting the nonrecurring lost revenue of $6 million related to Raleigh, Adjusted EBITDA was $96 million and CAFD was $23 million, representing a decline of $7 million, and an increase of $4 million for the quarter, respectively, compared to the same period in the prior year. We also recorded a non-cash asset impairment charge of $15 million due to the rejection of a Solar Renewable Energy Credit (“SREC”) contract with First Energy Solutions, which recently filed for bankruptcy.

Note that we have also enhanced our supplemental reporting package to better facilitate the assessment of our business by investors. Going forward, we will be providing an estimate of long-term average annual generation (LTA) by segment, which is defined as energy at the point of delivery, net of all recurring losses and constraints. Our LTA represents the level of production we expect to achieve by 2019 as we improve the performance of our fleet. In the short-term, we recognize that wind and irradiance conditions will vary from one period to the next. However, we expect our facilities will produce in-line with their long-term averages over time. We believe that comparing actual generation levels against LTA will enable investors to better assess the impact of an important factor that affects our business results.

Announcement of Quarterly Dividend

TerraForm Power today announced that, on April 30, 2018, its Board declared a quarterly dividend with respect to TerraForm Power’s Class A common stock of $0.19 per share. The dividend is payable on June 15, 2018, to shareholders of record as of June 1, 2018. This dividend represents TerraForm Power’s second dividend payment under Brookfield’s sponsorship.

About TerraForm Power

TerraForm Power owns and operates a best-in-class renewable power portfolio of solar and wind assets located primarily in the U.S., totaling more than 2,600 MW of installed capacity. TerraForm Power’s goal is to acquire operating solar and wind assets in North America and Western Europe. TerraForm Power is listed on the Nasdaq stock exchange (Nasdaq:TERP). It is sponsored by Brookfield Asset Management, a leading global alternative asset manager with more than $285 billion of assets under management.

For more information about TerraForm Power, please visit: www.terraformpower.com.

Contacts for Investors / Media:

Chad Reed
TerraForm Power
investors@terraform.com

Quarterly Earnings Call Details

Investors, analysts and other interested parties can access TerraForm Power’s 2018 First Quarter Results as well as the Letter to Shareholders and Supplemental Information on TerraForm Power’s website at www.terraformpower.com.

The conference call can be accessed via webcast on May 2, 2018 at 9:00 a.m. Eastern Time at https://edge.media-server.com/m6/p/ty7ocvs7, or via teleconference at 1-844-464-3938 toll free in North America. For overseas calls please dial 1-765-507-2638, at approximately 8:50 a.m. Eastern Time. A replay of the webcast will be available for those unable to attend the live webcast.

Safe Harbor Disclosure

This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks, and uncertainties and typically include words or variations of words such as “expect,” “anticipate,” “believe,” “intend,” “plan,” “seek,” “estimate,” “predict,” “project,” “goal,” “guidance,” “outlook,” “objective,” “forecast,” “target,” “potential,” “continue,” “would,” “will,” “should,” “could,” or “may” or other comparable terms and phrases. All statements that address operating performance, events, or developments that TerraForm Power expects or anticipates will occur in the future are forward-looking statements. They may include estimates of cash available for distribution (CAFD), dividend growth, cost savings initiatives, earnings, Adjusted EBITDA, revenues, income, loss, capital expenditures, liquidity, capital structure, future growth, and other financial performance items (including future dividends per share), descriptions of management’s plans or objectives for future operations, products, or services, or descriptions of assumptions underlying any of the above. Forward-looking statements provide TerraForm Power’s current expectations or predictions of future conditions, events, or results and speak only as of the date they are made. Although TerraForm Power believes its expectations and assumptions are reasonable, it can give no assurance that these expectations and assumptions will prove to have been correct and actual results may vary materially.

By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, risks related to: risks related to the transition to Brookfield Asset Management Inc. sponsorship, including our ability to realize the expected benefits of the sponsorship; risks related to wind conditions at our wind assets or to weather conditions at our solar assets; risks related to the effectiveness of our internal controls over financial reporting; pending and future litigation; the willingness and ability of counterparties to fulfill their obligations under offtake agreements; price fluctuations, termination provisions and buyout provisions in offtake agreements; our ability to enter into contracts to sell power on acceptable prices and terms, including as our offtake agreements expire; our ability to compete against traditional and renewable energy companies; government regulation, including compliance with regulatory and permit requirements and changes in tax laws, market rules, rates, tariffs, environmental laws and policies affecting renewable energy; risks related to the proposed relocation of the Company’s headquarters; the condition of the debt and equity capital markets and our ability to borrow additional funds and access capital markets, as well as our substantial indebtedness and the possibility that we may incur additional indebtedness going forward; operating and financial restrictions placed on us and our subsidiaries related to agreements governing indebtedness; risks related to the expected timing and likelihood of completion of the tender offer for the shares of Saeta Yield, S.A., including the timing or receipt of any governmental approvals; risks related to our financing of the tender offer for the shares of Saeta Yield, S.A., including our ability to issue equity on terms that are accretive to our shareholders and our ability to implement our permanent funding plan; our ability to successfully identify, evaluate and consummate acquisitions; and our ability to integrate the projects we acquire from third parties, including Saeta Yield, S.A., or otherwise and realize the anticipated benefits from such acquisitions.

The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data, or methods, future events, or other changes, except as required by law. The foregoing list of factors that might cause results to differ materially from those contemplated in the forward-looking statements should be considered in connection with information regarding risks and uncertainties, which are described in our Annual Report on Form 10-K and any subsequent Quarterly Report on Form 10-Q, as well as additional factors we may describe from time to time in other filings with the SEC. We operate in a competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and you should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

TERRAFORM POWER, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

   Three Months Ended
March 31,

 2018 2017Operating revenues, net$127,547  $151,135 Operating costs and expenses:   Cost of operations37,323  34,338 Cost of operations - affiliate—  5,598 General and administrative expenses24,284  36,725 General and administrative expenses - affiliate3,474  1,419 Acquisition and related costs3,685  — Impairment of renewable energy facilities15,240  — Depreciation, accretion and amortization expense65,590  60,987 Total operating costs and expenses149,596  139,067 Operating (loss) income(22,049) 12,068 Other expenses:   Interest expense, net53,554  68,312 Loss on foreign currency exchange, net891  587 Other expenses, net849  360 Total other expenses, net55,294  69,259 Loss before income tax benefit(77,343) (57,191)Income tax benefit(976) (918)Net loss(76,367) (56,273)Less: Net (loss) income attributable to redeemable non-controlling interests(2,513) 835 Less: Net loss attributable to non-controlling interests(157,087) (25,339)Net income (loss) attributable to Class A common stockholders$83,233  $(31,769)    Weighted average number of shares:   Class A common stock - Basic148,139  92,072 Class A common stock - Diluted148,166  92,072     Earnings (loss) per share:   Class A common stock - Basic and diluted$0.56  $(0.37)    Dividends declared per share:   Class A common stock$0.19  $—         

TERRAFORM POWER, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)

     March 31,
2018
 December 31,
2017
Assets   Current assets:   Cash and cash equivalents$157,833  $128,087 Restricted cash51,987  54,006 Accounts receivable, net70,346  89,680 Prepaid expenses and other current assets43,473  65,393 Due from affiliates4,856  4,370 Total current assets328,495  341,536     Renewable energy facilities, net, including consolidated variable interest entities of $3,238,105 and $3,273,848 in 2018 and 2017, respectively4,719,808  4,801,925 Intangible assets, net, including consolidated variable interest entities of $810,724 and $823,629 in 2018 and 2017, respectively1,057,557  1,077,786 Restricted cash43,577  42,694 Other assets109,344  123,080 Total assets$6,258,781  $6,387,021     Liabilities, Redeemable Non-controlling Interests and Stockholders' Equity   Current liabilities:   Current portion of long-term debt and financing lease obligations, including consolidated variable interest entities of $80,564 and $84,691 in 2018 and 2017, respectively$413,249  $403,488 Accounts payable, accrued expenses and other current liabilities, including consolidated variable interest entities of $40,109 and $34,199 in 2018 and 2017, respectively107,439  88,538 Deferred revenue1,807  17,859 Due to affiliates3,369  3,968 Total current liabilities525,864  513,853     Long-term debt and financing lease obligations, less current portion, including consolidated variable interest entities of $831,074 and $833,388 in 2018 and 2017, respectively3,181,122  3,195,312 Deferred revenue, less current portion13,134  38,074 Deferred income taxes16,839  18,636 Asset retirement obligations, including consolidated variable interest entities of $98,812 and $97,467 in 2018 and 2017, respectively153,557  154,515 Other long-term liabilities38,155  37,923 Total liabilities3,928,671  3,958,313     Redeemable non-controlling interests50,760  58,340 Stockholders' equity:   Class A common stock, $0.01 par value per share, 1,200,000,000 shares authorized, 148,586,447 shares issued and 148,086,027 shares outstanding in 2018 and 20171,486  1,486 Additional paid-in capital1,841,692  1,866,206 Accumulated deficit(290,818) (398,629)Accumulated other comprehensive income30,360  48,018 Treasury stock, 500,420 shares in 2018 and 2017(6,712) (6,712)Total TerraForm Power, Inc. stockholders' equity1,576,008  1,510,369 Non-controlling interests703,342  859,999 Total stockholders' equity2,279,350  2,370,368 Total liabilities, redeemable non-controlling interests and stockholders' equity
$6,258,781  $6,387,021         

TERRAFORM POWER, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

   Three Months Ended
March 31,
 2018 2017Cash flows from operating activities:   Net loss$(76,367) $(56,273)Adjustments to reconcile net loss to net cash provided by operating activities:   Depreciation, accretion and amortization expense65,590  60,987 Amortization of favorable and unfavorable rate revenue contracts, net9,817  9,827 Impairment of renewable energy facilities15,240  — Amortization of deferred financing costs and debt discounts2,684  4,639 Unrealized loss (gain) on commodity contract derivatives, net2,148  (2,231)Recognition of deferred revenue(464) (3,987)Stock-based compensation expense—  2,509 Unrealized loss on foreign currency exchange, net779  748 Deferred taxes(882) 639 Other, net2,907  (22)Changes in assets and liabilities:   Accounts receivable(6,410) (10,982)Prepaid expenses and other current assets15,390  7,024 Accounts payable, accrued expenses and other current liabilities18,527  19,858 Due to affiliates(599) — Deferred revenue368  186 Other, net3,361  2,306 Net cash provided by operating activities52,089  35,228 Cash flows from investing activities:   Capital expenditures(2,720) (2,076)Proceeds from reimbursable interconnection costs4,084  — Net cash provided by (used in) investing activities1,364  (2,076)Cash flows from financing activities:   Revolving credit facility draws52,000  — Revolving credit facility repayments(42,000) (5,000)Borrowings of non-recourse long-term debt—  79,835 Principal payments on Term Loan and non-recourse long-term debt(9,556) (11,870)Debt financing fees(2,134) (2,791)Contributions from non-controlling interests in renewable energy facilities7,685  6,935 Distributions to non-controlling interests in renewable energy facilities(5,786) (9,692)Due to/from affiliates, net3,214  (4,841)SunEdison investment—  7,371 Payment of dividend(28,008) — Net cash (used in) provided by financing activities(24,585) 59,947 Net increase in cash, cash equivalents and restricted cash28,868  93,099 Net change in cash, cash equivalents and restricted cash classified within assets held for sale—  19,440 Effect of exchange rate changes on cash, cash equivalents and restricted cash(258) (471)Cash, cash equivalents and restricted cash at beginning of period224,787  682,837 Cash, cash equivalents and restricted cash at end of period$253,397  $794,905     

Reconciliation of Non-GAAP Measures

Adjusted Revenue, Adjusted EBITDA and CAFD are supplemental non-GAAP measures that should not be viewed as alternatives to GAAP measures of performance, including revenue, net income (loss), operating income or net cash provided by operating activities. Our definitions and calculation of these non-GAAP measures may not necessarily be the same as those used by other companies. These non-GAAP measures have certain limitations, which are described below, and they should not be considered in isolation. We encourage you to review, and evaluate the basis for, each of the adjustments made to arrive at Adjusted Revenue, Adjusted EBITDA and CAFD.

Calculation of Non-GAAP Measures

We define Adjusted Revenue as operating revenues, net, adjusted for non-cash items including unrealized gain/loss on derivatives, amortization of favorable and unfavorable rate revenue contracts, net and other non-cash revenue items.

We define Adjusted EBITDA as net income (loss) plus depreciation, accretion and amortization, non-cash general and administrative costs, interest expense, income tax (benefit) expense, acquisition related expenses, and certain other non-cash charges, unusual or non-recurring items and other items that we believe are not representative of our core business or operating performance, as described further below.

We define “cash available for distribution” or “CAFD” as Adjusted EBITDA (i) minus cash distributions paid to non-controlling interests in our renewable energy facilities, if any, (ii) minus annualized scheduled interest and project level amortization payments in accordance with the related borrowing arrangements, (iii) minus average annual sustaining capital expenditures (based on the long-sustaining capital expenditure plans) which are recurring in nature and used to maintain the reliability and efficiency of our power generating assets over our long-term investment horizon, (iv) plus or minus operating items as necessary to present the cash flows we deem representative of our core business operations.  

As compared to the preceding period, we revised our definition of CAFD to (i) exclude adjustments related to deposits into and withdrawals from restricted cash accounts, required by project financing arrangements, (ii) replace sustaining capital expenditures payment made in the year with the average annualized long-term sustaining capital expenditures to maintain reliability and efficiency of our assets, and (iii) annualized debt service payments.  We revised our definition as we believe it provides a more meaningful measure for investors to evaluate our financial and operating performance and ability to pay dividends.  For items presented on an annualized basis, we will present actual cash payments as a proxy for an annualized number until the period commencing January 1, 2018.

Furthermore, to provide investors with the most appropriate measures to assess the financial and operating performance of our existing fleet and the ability to pay dividends in the future, we have excluded results associated with our UK solar and Residential portfolios, which were sold in 2017, from Adjusted Revenue, Adjusted EBITDA and CAFD reported for all periods presented.

Use of Non-GAAP Measures

We disclose Adjusted Revenue because it presents the component of our operating revenue that relates to the energy production from our plants, and is, therefore, useful to investors and other stakeholders in evaluating the performance of our renewable energy assets and comparing that performance across periods in each case without regard to non-cash revenue items.

We disclose Adjusted EBITDA because we believe it is useful to investors and other stakeholders as a measure of financial and operating performance and debt service capabilities. We believe Adjusted EBITDA provides an additional tool to investors and securities analysts to compare our performance across periods and among us and our peer companies without regard to interest expense, taxes and depreciation and amortization. Adjusted EBITDA has certain limitations, including that it: (i) does not reflect cash expenditures or future requirements for capital expenditures or contractual liabilities or future working capital needs, (ii) does not reflect the significant interest expenses that we expect to incur or any income tax payments that we may incur, and (iii) does not reflect depreciation and amortization and, although these charges are non-cash, the assets to which they relate may need to be replaced in the future, and (iv) does not take into account any cash expenditures required to replace those assets. Adjusted EBITDA also includes adjustments for non-cash impairment charges, gains and losses on derivatives and foreign currency swaps, acquisition related costs and items we believe are infrequent, unusual or non-recurring, including adjustments for general and administrative expenses we have incurred as a result of the SunEdison bankruptcy.

We disclose CAFD because we believe cash available for distribution is useful to investors in evaluating our operating performance and because securities analysts and other stakeholders analyze CAFD as a measure of our financial and operating performance and our ability to pay dividends. CAFD is not a measure of liquidity or profitability, nor is it indicative of the funds needed by us to operate our business. CAFD has certain limitations, such as the fact that CAFD includes all of the adjustments and exclusions made to Adjusted EBITDA described above.

The adjustments made to Adjusted EBITDA and CAFD for infrequent, unusual or non-recurring items and items that we do not believe are representative of our core business involve the application of management judgment, and the presentation of Adjusted EBITDA and CAFD should not be construed to infer that our future results will be unaffected by infrequent, non-operating, unusual or non-recurring items.

In addition, these measures are used by our management for internal planning purposes, including for certain aspects of our consolidated operating budget, as well as evaluating the attractiveness of investments and acquisitions. We believe these Non-GAAP measures are useful as a planning tool because it allows our management to compare performance across periods on a consistent basis in order to more easily view and evaluate operating and performance trends and as a means of forecasting operating and financial performance and comparing actual performance to forecasted expectations. For these reasons, we also believe these Non-GAAP measures are also useful for communicating with investors and other stakeholders.

The following tables present a reconciliation of Operating Revenues to Adjusted Revenue and net loss to Adjusted EBITDA to CAFD and has been adjusted to exclude asset sales in the UK and Residential portfolios:

      Three Months Ended March 31 (in thousands) 20182017Adjustments to reconcile operating revenues, net to adjusted revenue   Operating revenues, net $127,547 $151,135 Unrealized (gain) loss on commodity contract derivatives, net (a) 2,148 (2,231)Amortization of favorable and unfavorable rate revenue contracts, net (b) 9,817 9,827 Other non-cash items (c) (416)(3,433)Adjustment for Asset Sales - (6,596)Adjusted revenue $139,096  $148,702  Direct operating costs (d) (43,383)(45,738)Settled FX gain (loss) (112)161 Adjusted EBITDA $95,601  $103,125  Non-operating general and administrative expenses (e) (18,065)(25,374)Stock-based compensation expense - (2,509)Acquisition and related costs (3,685)- Depreciation, accretion and amortization expense (f) (75,406)(70,814)Impairment charges (15,240)- Interest expense, net (53,554)(68,312)Income tax benefit 976 918 Adjustment for asset sales - 3,147 Other non-cash or non-operating items (g) (6,994)3,546 Net loss ($76,367)($56,273)    (in thousands)  Three Months Ended March 31     Reconciliation of adjusted EBITDA to CAFD 2018
2017
Adjusted EBITDA $95,601  $103,125  Fixed management fee (2,500)- Variable management fee (787)- Adjusted interest expense (h) (49,508)(60,011)Levelized principal payments (i) (24,350)(24,810)Cash distributions to non-controlling interests (j) (4,737)(9,602)Sustaining capital expenditures (k) (1,850)(244)Adjustment for asset sales - (134)Other (l) 10,722 10,940 Cash available for distribution (CAFD) (m) $22,591  $19,264      

a) Represents unrealized loss (gain) on commodity contracts associated with energy derivative contracts that are accounted for at fair value with the changes recorded in operating revenues, net. The amounts added back represent changes in the value of the energy derivative related to future operating periods, and are expected to have little or no net economic impact since the change in value is expected to be largely offset by changes in value of the underlying energy sale in the spot or day-ahead market.

b) Represents net amortization of purchase accounting intangibles arising from past business combinations related to favorable and unfavorable rate revenue contracts.

c) Primarily represents recognized deferred revenue related to the upfront sale of investment tax credits.

d) In the three months ended March 31, 2017, reclassifies $2.3 million wind sustaining capital expenditure into direct operating costs, which will be covered under a new Full Service Agreement.

e) Pursuant to the management services agreement, SunEdison agreed to provide or arrange for other service providers to provide management and administrative services to us. In the three months ended March 31, 2017, we accrued $0.4 million of costs incurred for management and administrative services that were provided by SunEdison under the Management Services Agreement that were not reimbursed by TerraForm Power and were treated as an addback in the reconciliation of net income (loss) to Adjusted EBITDA. In addition, non-operating items and other items incurred directly by TerraForm Power that we do not consider indicative of our core business operations are treated as an addback in the reconciliation of net income (loss) to Adjusted EBITDA. These items include extraordinary costs and expenses related primarily to restructuring, legal, advisory and contractor fees associated with the bankruptcy of SunEdison and certain of its affiliates (the “SunEdison bankruptcy”) and investment banking, legal, third party diligence and advisory fees associated with the Brookfield transaction, dispositions and financings. The Company’s normal general and administrative expenses, paid by Terraform Power, are the amounts shown below and were not added back in the reconciliation of net income (loss) to Adjusted EBITDA ($ in millions):

  Q1 2018  Q1 2017 $7 M$9 M  

f) Include reductions (increases) within operating revenues due to net amortization of favorable and unfavorable rate revenue contracts as detailed in the reconciliation of Adjusted Revenue.

g) Represents other non-cash items as detailed in the reconciliation of Adjusted Revenue and associated footnote and certain other items that we believe are not representative of our core business or future operating performance, including but not limited to: loss (gain) on foreign exchange (“FX”), unrealized loss on commodity contracts, loss on investments and receivables with affiliate, loss on disposal of renewable energy facilities, and wind sustaining capital expenditure previously reclassified.

h) Represents project-level and other interest expense and interest income attributed to normal operations. The reconciliation from Interest expense, net as shown on the Unaudited Condensed Consolidated Statement of Operations to adjusted interest expense applicable to CAFD is as follows:

   $ in millions Q1 2018  Q1 2017 Interest expense, net($54)($68)Amortization of deferred financing costs and debt discounts   3     5  Adjustment for asset sales   -      4  Other   1     (1)Adjusted interest expense($50)($60)       

i) Represents levelized project-level and other principal debt payments to the extent paid from operating cash.

j) Represents cash distributions paid to non-controlling interests in our renewable energy facilities. The reconciliation from Distributions to non-controlling interests as shown on the Unaudited Condensed Consolidated Statement of Cash Flows to Cash distributions to non-controlling interests, net for the three months ended March 31, 2018 and 2017 is as follows:

   $ in millions Q1 2018  Q1 2017 Distributions to non-controlling interests($6)($10)Adjustment for non-operating cash distributions 1    -   Cash distributions to non-controlling interests, net($5)($10)       

k) Represents long-term average sustaining capex starting in 2018 to maintain reliability and efficiency of the assets.

l) Represents other cash flows as determined by management to be representative of normal operations including, but not limited to, wind plant “pay as you go” contributions received from tax equity partners, interconnection upgrade reimbursements, major maintenance reserve releases or (additions), and releases or (postings) of collateral held by counterparties of energy market hedges for certain wind plants.

m) CAFD in 2017 was recast as follows to present the levelized principal payments and adjusted interest expense in order to reduce volatility in reported CAFD. In the twelve months ended December 31, 2017, CAFD remained $88 million as reported previously.

       $ in millions Q1
2017
 Q2
2017
 Q3
2017
 Q4
2017
2017Cash available for distribution (CAFD) before debt service reported$104  $120  $106  $91  $421  Levelized principal payments(25)(25)(25)(24)(99)Adjusted interest expense(60)(61)(63)(50)(234)Cash available for distribution (CAFD), recast$19  $34  $18  $17  $88             
Categories: State

Pengrowth Announces First Quarter 2018 Results, Setting the Stage for Double-Digit Production Growth in 2018

1 May 2018 - 5:20pm

CALGARY, Alberta, May 01, 2018 (GLOBE NEWSWIRE) -- Pengrowth Energy Corporation (TSX:PGF) (NYSE:PGH) today announced its operating and financial results for the three months ended March 31, 2018.

The first quarter results are on plan, setting the stage for a solid year as “new” Pengrowth continues the transformation into a resource developer focused on its two 100 percent owned and operated growth assets at Lindbergh and Groundbirch. “Our results have positioned us with a good start to the year and have set us up to achieve our target of organic double-digit production growth in 2018,” said Pete Sametz, President and Chief Executive Officer of Pengrowth. “We will ultimately grow our production to approximately 24,000 barrels of oil equivalent (boe) per day by the end of the year, led by our top tier Lindbergh thermal oil asset.”

First Quarter Highlights:

First quarter results from our focused asset portfolio have positioned the Company on the path to achieving double-digit production growth in 2018

  • Delivered first quarter average daily production of 19,541 boe per day, led by Lindbergh production which averaged 15,118 barrels (bbl) per day in the quarter.

  • First quarter development activities at Lindbergh and Groundbirch resulted in significant production growth subsequent to the end of the quarter with Lindbergh production eclipsing 16,500 bbl per day in mid-April and Groundbirch production exceeding 28 million cubic feet (MMcf) per day in early April.   

  • Managed exposure to Western Canadian Select (WCS) price differential fluctuations in the quarter through physical delivery contracts that provided differential as well as pipeline apportionment protection. These contracts resulted in thermal oil prices being higher by approximately $10.50 per bbl in the quarter versus the benchmark prices. For the rest of 2018,  70 percent of projected WCS sales are price protected at an average price differential of approximately U.S. $16.80 per bbl.

  • Achieved an average netback at Lindbergh of Cdn $26.16 per bbl in the quarter, including the impact of Pengrowth’s physical delivery contracts despite the benchmark light-heavy price differential widening significantly to over U.S. $24.00 per bbl.

Operations

Pengrowth achieved first quarter average daily production of 19,541 boe per day, led by production volumes from Lindbergh, which averaged 15,118 bbl per day in the quarter at an average SOR of 2.9. Subsequent to the end of the quarter, production at Lindbergh continued to ramp up following the development activities in the quarter, with volumes increasing to over 16,500 bbl per day in mid-April. Similarly, the development activities at Groundbirch in the quarter resulted in a ramp up of production at Groundbirch with total production increasing from approximately 9 MMcf per day at the start of the year to over 28 MMcf per day in early April, representing an increase of over 200 percent. 

Lindbergh capital spending in the first quarter was focused on the conversion of four well pairs drilled on Pad D04 late in 2017 to SAGD production, equipment installation and initiation of circulating activities on the three remaining well pairs on Pad D04, as well as the commencement of the 2018 optimization program. As part of our 2018 optimization strategy for Lindbergh, the Company plans on drilling eight infill wells in support of production growth at Lindbergh. Drilling of the wells commenced in the second quarter and the Company expects to have the wells drilled, completed and tied-in by the third quarter. Following planned steaming operations, these wells are expected to be brought on stream in the fourth quarter of 2018, targeting Lindbergh production of approximately 18,000 bbl per day by the end of the year.  

At Groundbirch, activities in the quarter included the completion and tie-in of three of the four wells drilled in 2017. In addition to the development activities, the Company completed the compression project which allows us to shift transportation of natural gas production at Groundbirch away from Station Two and onto the Nova Gas Transmission Limited (NGTL) system. As of April 1, 2018, volumes from Groundbirch commenced flow on the NGTL system. The fourth well completion and tie-in is anticipated during the third quarter of 2018. The gas production from Groundbirch is a physical hedge for our gas requirements needed to generate steam at Lindbergh, where we expect to utilize approximately 87 percent of the natural gas produced from Groundbirch.

Total capital expenditures in the first quarter were $26.4 million and primarily focused on development activities at Groundbirch and Lindbergh. 

Net Operating and G&A Expenses

First quarter net operating expenses of $18.3 million ($10.41 per boe) were on track with full year guidance and reflect the lower operating costs associated with our focused asset base. Cash G&A expenses of $8.9 million ($5.06 per boe) in the quarter continue to trend downwards following the significant asset dispositions completed in 2017 and the subsequent realignment of staffing needs to match the smaller asset base. First quarter cash G&A still contained approximately $1.2 million of staffing costs related to the divested properties. These trailing tasks are expected to end in the second quarter of 2018, and the Company remains on track to reduce G&A costs further in the second half of the year. We anticipate full year 2018 cash G&A expenses to be in line with 2018 Guidance.

Financial Results

The Company reported funds flow from operations of $7.2 million ($0.01 per share), compared to funds flow of $26.9 million ($0.05 per share) for the same period in 2017. The decrease in funds flow year over year was primarily due to the absence of production volumes from divested properties combined with higher diluent expenses at Lindbergh. Diluent is required for processing and blending of Lindbergh bitumen production to meet pipeline specifications. The Company typically uses more diluent in the winter months due to the colder weather. Higher realized prices during the first quarter of 2018 compared to the same period in 2017, due to material improvements in crude oil benchmark prices, were partially offset by realized financial risk management losses.

Pengrowth's WCS physical oil delivery contracts in the first quarter insulated the Company from the volatility in the light-heavy price differentials and resulted in the Company’s Lindbergh production generating an operating netback of $26.16 per bbl. The physical hedge contracts in the quarter resulted in a realized gain of $10.51 per bbl for Pengrowth’s thermal oil sales. A summary of corporate and Lindbergh standalone Q1, 2018 operating netbacks is provided in the table below:

                   Corporate         Lindbergh  Sales39.97 42.33  Royalties(2.79)(2.57)                             Net operating expenses(10.41)(10.59) Transportation expenses                   (2.73)(3.01) Operating netback24.04 26.16  

 

In addition to the physical delivery contracts, Pengrowth has in place financial risk management contracts for 2018. During the second half of 2017, in order to ensure compliance with relaxed covenants on its debt, Pengrowth entered into a series of WTI hedges. In the first quarter these hedges represented 62 percent of Pengrowth’s liquids production, and as Lindbergh production continues to increase through 2018, the percentage hedged will decline to approximately 55 percent of liquids production. These contracts generated a realized loss of approximately $7.96 per boe in the quarter, resulting in funds flow being lower by $14.0 million. If commodity prices remain at current levels, the absence of these financial risk management contracts will result in significantly higher realized prices for liquids production and higher funds flow, starting in 2019.   

Pengrowth recorded a net loss of $27.2 million ($0.05 per share) in the first quarter of 2018 compared to a net loss of $86.3 million ($0.16 per share) in the first quarter of 2017. The smaller net loss is primarily due to the absence of impairment charges and losses on the disposition of properties recorded in the first quarter of 2017. Partly offsetting these were lower funds flow year over year and the absence of unrealized commodity risk management gains recorded in the first quarter of 2017.

Financial Resources and Liquidity

Pengrowth’s total debt (excluding letters of credit) at March 31, 2018 amounted to Cdn $662.1 million, which was a slight increase from the end of the year. The higher debt was primarily a result of Pengrowth’s development program, which is front-end weighted with the bulk of the $65 million of the 2018 capital expected to be spent in the first half of the year. In addition, as the majority of Pengrowth's long term debt and interest payments are denominated in U.S. dollars, they are subject to fluctuations in the exchange rate between the Canadian and US dollars. The weaker Canadian dollar versus the U.S. dollar during the quarter translated into a higher Canadian dollar equivalent debt, contributing to the overall increase in corporate debt. Pengrowth manages this foreign exchange exposure through swap contracts on the majority of its outstanding foreign denominated notes. At March 31, 2017 Pengrowth held U.S. $255 million of swap contracts at a weighted average exchange rate of Cdn $0.75/U.S. $1.00.

Outlook

The Company has started to demonstrate its growth potential and the development focus on our two primary assets leave us on track to generate double-digit organic production growth in 2018. Our 2018 capital expenditure budget of $65 million is unchanged and focused on adding production volumes from Lindbergh and Groundbirch. The 2018 budget is expected to generate average annual production of 22,500 to 23,500 boe per day, with an estimated 2018 exit rate of approximately 24,000 boe per day, representing double-digit production growth for 2018.

Analyst call

Pengrowth will host an analyst call and listen-only audio webcast beginning at 7:00 A.M. Mountain Time (MT) on Wednesday, May 2, 2018, during which management will review Pengrowth's first quarter results and respond to questions from the analyst community.

To ensure timely participation in the teleconference, callers are encouraged to dial in 10 minutes prior to the start of the call to register.

Dial-in numbers:

Toll free: (844) 358-9179 or International: (478) 219-0186    
Live listen only audio webcast: https://edge.media-server.com/m6/p/dh38jheg

Pengrowth’s unaudited Financial Statements for the three months ended March 31, 2018 and related Management’s Discussion and Analysis can be viewed on Pengrowth’s website at www.pengrowth.com. They have also been filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar

About Pengrowth:

Pengrowth Energy Corporation is a Canadian energy company focused on the sustainable development and production of oil and natural gas in Western Canada from its Lindbergh thermal oil property and its Groundbirch Montney gas property. The Company is headquartered in Calgary, Alberta, Canada and has been operating in the Western Canadian basin for over 28 years. The Company’s shares trade on both the Toronto Stock Exchange under the symbol "PGF" and on the New York Stock Exchange under the symbol "PGH". 

PENGROWTH ENERGY CORPORATION
Pete Sametz
President and Chief Executive Officer

Contact information:

Wassem Khalil
Manager, Investor Relations
Toll free 1-855-336-8814

For further information about Pengrowth, please visit our website www.pengrowth.com or contact: Investor Relations, E-mail: investorrelations@pengrowth.com

Advisories:

Currency:
All amounts are stated in Canadian dollars unless otherwise specified. 

Caution Regarding Engineering Terms:
When used herein, the term "boe" means barrels of oil equivalent on the basis of one boe being equal to one barrel of oil or NGLs or 6,000 cubic feet of natural gas (6 mcf: 1 bbl). Barrels of oil equivalent may be misleading, particularly if used in isolation. A conversion ratio of six mcf of natural gas to one boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All production figures stated are based on Company Interest before the deduction of royalties.

Caution Regarding Forward Looking Information:
This press release contains forward-looking statements within the meaning of securities laws, including the "safe harbour" provisions of the Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to, statements with respect to expected double-digit growth in exit production; expected exit production of 24,000 boe per day; anticipated $65 million of capital expenditures in 2018 and the focus thereof on adding production volumes at Lindbergh and Groundbirch; expected average daily production in 2018; continued optimization activities at Lindbergh including the drilling of eight additional infill wells; Lindbergh production reaching 18,000 boe per day by the end of the year; expectation of new infill wells to be on stream by the fourth quarter of 2018; anticipated completion and tie-in of fourth well at Groundbirch in the third quarter of 2018; expected increase in production at Groundbirch to 30 MMcf per day by the end of 2018; plans to utilize the majority of Groundbirch natural gas in the Company’s thermal operations; G&A cost structures expected to decrease in the second half of 2018 and remain within full year guidance and the expectation for higher realized prices for liquids production and higher expected funds flow from operations starting in 2019. Forward-looking statements and information are based on current beliefs as well as assumptions made by and information currently available to Pengrowth concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: changes in general economic, market and business conditions; the volatility of oil and gas prices; fluctuations in production and development costs and capital expenditures; the imprecision of reserve estimates and estimates of recoverable quantities of oil, natural gas and liquids; Pengrowth's ability to replace and expand oil and gas reserves; geological, technical, drilling and processing problems and other difficulties in producing reserves; environmental claims and liabilities; incorrect assessments of value when making acquisitions; increases in debt service charges; the loss of key personnel; the marketability of production; defaults by third party operators; unforeseen title defects; fluctuations in foreign currency and exchange rates; fluctuations in interest rates; inadequate insurance coverage; compliance with environmental laws and regulations; actions by governmental or regulatory agencies, including changes in tax laws; Pengrowth's ability to access external sources of debt and equity capital; the impact of foreign and domestic government programs and the occurrence of unexpected events involved in the operation and development of oil and gas properties. Further information regarding these factors may be found under the heading "Business Risks" in our most recent management's discussion and analysis and under "Risk Factors" in our Annual Information Form dated February 28, 2018.

The foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements contained in this press release are made as of the date of this press release, and Pengrowth does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Additional and Non-GAAP Measures
In addition to providing measures prepared in accordance with International Financial Reporting Standards (IFRS), Pengrowth presents additional and non-GAAP measures including total debt before working capital, total debt including working capital, net operating costs and cash G&A expenses. These measures do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. These measures are provided, in part, to assist readers in determining Pengrowth’s ability to generate cash from operations. Pengrowth believes these measures are useful in assessing operating performance and liquidity of Pengrowth’s ongoing business on an overall basis. These measures should be considered in addition to, and not as a substitute for, net income (loss), cash provided by operations and other measures of financial performance and liquidity reported in accordance with IFRS. Further information including reconciliation to the applicable GAAP measure with respect to these additional and non-GAAP measures can be found in the MD&A.

Note to US Readers
We report our production and reserve quantities in accordance with Canadian practices and specifically in accordance with NI 51- 101. These practices are different from the practices used to report production and to estimate reserves in reports and other materials filed with the SEC by companies in the United States.

Current SEC reporting requirements permit, but do not require United States oil and gas companies, in their filings with the SEC, to disclose probable and possible reserves, in addition to the required disclosure of proved reserves. The SEC does not permit the inclusion of estimates of contingent resources in reports filed with it by United States companies. Under current SEC requirements, net quantities of reserves are required to be disclosed, which requires disclosure on an after royalties basis and does not include reserves relating to the interests of others. Because we are permitted to prepare our reserves information in accordance with Canadian disclosure requirements, we have included contingent resources, disclosed reserves before the deduction of royalties and interests of others and determined and disclosed our reserves and the estimated future net cash therefrom using forecast prices and costs. See "Presentation of our Reserve Information" in our most recent Annual Information Form or Form 40-F for more information.

We incorporate additional information with respect to production and reserves which is either not generally included or prohibited under rules of the SEC and practices in the United States. We follow the Canadian practice of reporting gross production and reserve volumes; however, we also follow the United States practice of separately reporting these volumes on a net basis (after the deduction of royalties and similar payments). We also follow the Canadian practice of using forecast prices and costs when we estimate our reserves. The SEC permits, but does not require, the disclosure of reserves based on forecast prices and costs.

Categories: State

Suncor Energy declares dividend

1 May 2018 - 5:16pm

All financial figures are in Canadian dollars.

CALGARY, Alberta, May 01, 2018 (GLOBE NEWSWIRE) -- Suncor Energy’s Board of Directors has approved a quarterly dividend of $0.36 per share on its common shares, payable June 25, 2018 to shareholders of record at the close of business on June 4, 2018.

Suncor Energy is Canada's leading integrated energy company. Suncor's operations include oil sands development and upgrading, offshore oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand. A member of Dow Jones Sustainability indexes, FTSE4Good and CDP, Suncor is working to responsibly develop petroleum resources while also growing a renewable energy portfolio. Suncor is listed on the UN Global Compact 100 stock index. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.

For more information about Suncor, visit our web site at suncor.com, follow us on Twitter @Suncor or together.suncor.com

Media inquiries:
403-296-4000
media@suncor.com

Investor inquiries:
800-558-9071
invest@suncor.com

Categories: State

Resolute Energy Corporation to announce results for the first quarter ended March 31, 2018, will hold an investor conference call on Tuesday, May 8 at 10:00 am EDT

1 May 2018 - 4:46pm

DENVER, May 01, 2018 (GLOBE NEWSWIRE) -- Resolute Energy Corporation (NYSE:REN) announced today that it will issue a press release covering operating and financial results for the first quarter ended March 31, 2018, after the market close on Monday, May 7, 2018. An investor conference call to review the first quarter results will be held on Tuesday, May 8, 2018, at 10:00 AM Eastern Daylight Time.

Date: Tuesday, May 8, 2018

Time: 10:00 AM EDT / 9:00 AM CDT / 8:00 AM MDT / 7:00 AM PDT

Call: (866) 548-4713 (US), (323) 794-2093 (International)

Replay: Available through Monday, May 14, 2018, at (844) 512-2921 (US) or (412) 317-6671 (International), Passcode 3751357.

About Resolute Energy Corporation

Resolute is an independent oil and gas company focused on the acquisition and development of unconventional oil and gas properties in the Delaware Basin portion of the Permian Basin of west Texas. For more information, visit www.resoluteenergy.com. The Company routinely posts important information about the Company under the Investor Relations section of its website. The Company's common stock is traded on the NYSE under the ticker symbol "REN."

Contact:

HB Juengling
Vice President - Investor Relations
Resolute Energy Corporation
303-534-4600
hbjuengling@resoluteenergy.com

Categories: State

Encana reports on the election of directors voting results from the 2018 Annual Meeting of Shareholders

1 May 2018 - 4:30pm

CALGARY, Alberta, May 01, 2018 (GLOBE NEWSWIRE) -- (TSX:ECA) (NYSE:ECA) The following matter was voted upon at the Annual Meeting of Shareholders of Encana Corporation (the “Corporation”) held on May 1, 2018 in Calgary, Alberta. Each of the matters is described in greater detail in the Notice of Annual Meeting of Shareholders and 2018 Proxy Statement dated March 22, 2018.

1. Election of Directors

By resolution passed via ballot, the following 10 nominees were appointed as Directors of the Corporation to serve until the close of the next annual meeting of shareholders of the Corporation, or until their successors are elected or appointed. The results of the ballot were as follows:

Name of NomineeVotes ForPercentVotes WithheldPercentPeter A. Dea690,282,95998.71%9,019,7031.29%Fred J. Fowler686,553,16198.18%12,749,5011.82%Howard J. Mayson692,147,92798.98%7,154,7351.02%Lee A. McIntire686,862,60498.22%12,440,0581.78%Margaret A. McKenzie687,650,21398.33%11,652,4491.67%Suzanne P. Nimocks683,990,01697.81%15,312,6462.19%Brian G. Shaw694,970,38099.38%4,332,2820.62%Douglas J. Suttles695,213,97599.42%4,088,6870.58%Bruce G. Waterman680,842,13297.36%18,460,5302.64%Clayton H. Woitas680,417,32197.30%18,885,3412.70%

Encana Corporation
Encana is a leading North American energy producer that is focused on developing its strong portfolio of resource plays, held directly and indirectly through its subsidiaries, producing oil, natural gas liquids (NGLs) and natural gas. By partnering with employees, community organizations and other businesses, Encana contributes to the strength and sustainability of the communities where it operates. Encana common shares trade on the Toronto and New York stock exchanges under the symbol ECA.

Further information on Encana Corporation is available on the company’s website, www.encana.com, or by contacting:

Investor contact:
Corey Code
Vice-President, Investor Relations
(403) 645-4606 

Patti Posadowski
Sr. Advisor, Investor Relations
(403) 645-2252 Media contact:
Simon Scott
Vice-President, Communications
(403) 645-2526

Jay Averill
Director, Media Relations
(403) 645-4747

SOURCE: Encana Corporation

Categories: State

Petroteq Energy Announces Issuance of Securities

1 May 2018 - 4:00pm

STUDIO CITY, Calif., May 01, 2018 (GLOBE NEWSWIRE) -- Petroteq Energy Inc. (the “Company”) (TSXV:PQE ) (OTC:PQEFF) (Frankfurt:PQCF), announces that it has entered into shares for debt agreements, pursuant to which it will issue an aggregate of 993,242 common shares in satisfaction of $1,385,462 of indebtedness currently owed to three creditors. The Company determined to satisfy the indebtedness with common shares in order to preserve its cash for use on its extraction technology in Asphalt Ridge, Utah, and for working capital. The shares will be issued upon acceptance by the TSX Venture Exchange and approval by the directors of the Company. The common shares issued in satisfaction of the indebtedness will be subject to a four month hold period from the date of issuance.

The Company also announces that, further to its news release of March 2, 2018, it has issued unsecured convertible debentures for an aggregate principal amount of up to US$1,650,897 to six arm’s length existing lenders of the Company. The debentures bear interest at a rate of 10% per annum, payable quarterly and mature on April 13, 2023. At the option of the holders of the debentures, principal under the debentures may be converted into units of the Company at a conversion price of US$1.09 per unit. Each unit consists of one common share of the Company and one common share purchase warrant of the Company. Each warrant entitles the holder to acquire one common share of the Company at an exercise price of US$1.30 per common share until the earlier of (i) 24 months from issuance of the warrant, and (ii) April 13, 2023. All securities issued pursuant to the financing are subject to a four-month hold period.

About Petroteq Energy Inc.

Petroteq is a fully integrated oil and gas company focused on the development and implementation of a new proprietary technology for oil extraction. The Company has an environmentally safe and sustainable technology for the extraction of heavy oils from oil sands, oil shale deposits and shallow oil deposits. Petroteq is engaged in the development and implementation of its patented environmentally friendly heavy oil processing and extraction technologies. Our proprietary process produces zero greenhouse gas, zero waste and requires no high temperatures. Petroteq is currently focused on developing its oil sands resources and expanding production capacity at its Asphalt Ridge heavy oil extraction facility located near Vernal, Utah. The Company also owns a minority stake in an exploration and production play located in southwest Texas held by Accord GR Energy Inc. In addition, the Company, through its wholly owned subsidiary PetroBLOQ, LLC, is seeking to develop the first blockchain based platform created exclusively for the supply chain needs of the oil & gas sector. For more information, visit www.Petroteq.energy and PetroBLOQ.com.

Forward-Looking Statements

Certain statements contained in this news release contain forward-looking statements within the meaning of the U.S. and Canadian securities laws. Words such as “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions as they relate to the Company, including completion of the transactions contemplated herein, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, based on information available to the Company, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information, including, the Company receiving TSX Venture Exchange and director approval of the transactions. While forward-looking statements are based on data, assumptions and analyses that the Company believes are reasonable under the circumstances, whether actual results, performance or developments will meet the Company’s expectations and predictions depend on a number of risks and uncertainties that could cause the actual results, performance and financial condition of the Company to differ materially from its expectations.

Certain of the “risk factors” that could cause actual results to differ materially from the Company’s forward-looking statements in this press release include, without limitation: the directors of the Company and/or the TSX Venture Exchange not approving one or more of the transactions; changes in laws or regulations; the ability to implement business strategies or to pursue business opportunities, whether for economic or other reasons; status of the world oil markets, oil prices and price volatility; state of capital markets and ability by the Company to raise capital; litigation; the commercial and economic viability of the Company’s oil sands hydrocarbon extraction technology, the SWEPT technology, the S-BRPT technology, and other proprietary technologies developed or licensed by the Company or by Accord which are of experimental nature and have not been used at full capacity for an extended period of time; reliance on suppliers, contractors, consultants and key personnel; the ability of the Company and Accord to maintain their respective mineral lease holdings; potential failure of the Company’s business plans or model; the nature of oil and gas production and oil sands mining, extraction and production; uncertainties in exploration and drilling for oil, gas and other hydrocarbon-bearing substances; unanticipated costs and expenses, availability of financing and other capital; potential damage to or destruction of property, loss of life, and environmental damage; risks associated with compliance with environmental protection laws and regulations; uninsurable or uninsured risks; potential conflicts of interest of officers and directors; and other general economic, market and business conditions and factors, including the risk factors discussed or referred to in the Company’s disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.

Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.

Petroteq Energy Inc.
Alex Blyumkin
Executive Chairman
Tel: (800) 979-1897

Categories: State

Amplify Energy Announces Retirement of Chief Executive Officer

1 May 2018 - 4:00pm

HOUSTON, May 01, 2018 (GLOBE NEWSWIRE) -- Amplify Energy Corp. (“Amplify Energy” or the “Company”) (OTCQX:AMPY) announced today the retirement of its President and Chief Executive Officer, William J. Scarff, effective as of the earlier of May 17, 2018 and (ii) the date on which his successor is appointed. Mr. Scarff will continue to serve as a member of the Company’s board of directors (the “Board”). Additionally, each of Christopher S. Cooper, the Company’s Senior Vice President and Chief Operating Officer, and Robert L. Stillwell, Jr., the Company’s Senior Vice President and Chief Financial Officer, departed the Company effective April 27, 2018.

“The Board would like to thank Bill and team for their years of service and dedication to the Company,” said David Proman, Chairman of the Board.  “Given recent trends in the energy landscape, the Company remains primarily focused on generating free cash flow and otherwise creating value for shareholders.  We are optimistic for what this next chapter holds.”

The Board has also appointed Martyn Willsher, the Company’s Vice President and Treasurer, to serve as Senior Vice President and Chief Financial Officer of the Company effective April 27, 2018.  Mr. Willsher has served as the Company’s Vice President and Treasurer since May 2017. He previously served as Treasurer of Memorial Production Partners GP, LLC, the Company’s predecessor, from July 2014 to May 2017, and as Director of Strategic Planning for Memorial Resource Development LLC, an affiliate of the Company’s predecessor, from March 2012 to June 2014. Prior to that, he served as Manager, Financial Analysis of AGL Resources from September 2009 to March 2012, as Director – Upstream Oil & Gas A&D of Constellation Energy from August 2006 to March 2009. Prior to that, he served in various business development and financial analysis roles at JM Huber Corp., FTI Consulting and PricewaterhouseCoopers LLP. Mr. Willsher received his Master of Business Administration from The University of Texas at Austin and his Bachelor of Business Administration in Finance from Texas A&M University.

Cancelation of Earnings Conference Call

The Company will announce earnings results for the first quarter 2018 on Wednesday, May 9, 2018. However, due to the transition in the Company’s management team as discussed above, the Company has canceled the conference call to discuss its results for the first quarter 2018 that had previously been scheduled for Wednesday, May 9, 2018 at 10:00 a.m. CT.

About Amplify Energy

Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploration and production of oil and natural gas properties. The Company’s operations are focused in East Texas / North Louisiana, the Rockies, offshore California and South Texas.

For more information, visit www.amplifyenergy.com.

Contacts

Investors:
Amplify Energy
Martyn Willsher – Chief Financial Officer
(713) 588-8346
martyn.willsher@amplifyenergy.com

Eric Willis – General Counsel
(713) 588-8369
eric.willis@amplifyenergy.com

Categories: State

SemGroup Declares Quarterly Dividend

1 May 2018 - 3:39pm

TULSA, Okla., May 01, 2018 (GLOBE NEWSWIRE) -- SemGroup® Corporation (NYSE:SEMG) today announced that its Board of Directors has declared a quarterly cash dividend to common shareholders. A dividend in the amount of $0.4725 per share, or $1.89 per share annualized, will be paid on May 25, 2018 to all common shareholders of record on May 16, 2018.

The Board of Directors also declared a dividend to holders of its 7% Series A Cumulative Perpetual Convertible Preferred Stock, which were outstanding for a portion of the first quarter 2018. The company elected, pursuant to the terms of the convertible preferred shares, to have the aggregate amount of $4.8 million that would have been payable in cash as a dividend added to the liquidation preference of such shares as a payment in kind. The record date for the payment in kind on the shares of convertible preferred stock is May 16, 2018 and the payment date is May 25, 2018.

As previously announced, SemGroup plans to release first quarter 2018 results after the market closes on Tuesday, May 8, 2018. A conference call for investors will be held at 11 a.m. Eastern on Wednesday, May 9, 2018 to discuss SemGroup’s first quarter results. A presentation of the results will be posted prior to the conference call on SemGroup’s Investor Relations website at www.semgroupcorp.com.

What:SemGroup Corporation first quarter 2018 earnings conference call  When:11 a.m. Eastern, Wednesday, May 9, 2018  Where:1) Phone conference call • U.S. callers – 1-855-239-1101 • International callers – 1-412-542-4117    2) Register for the live webcast here.

If you are unavailable to participate in the conference call or webcast, a replay will be available on the company’s website following the call.

About SemGroup
Based in Tulsa, Okla., SemGroup® Corporation (NYSE:SEMG) is a publicly traded midstream service company providing the energy industry the means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end-users and consumers of crude oil, natural gas, natural gas liquids, refined products, residual fuel oil and asphalt. Services include purchasing, selling, processing, transporting, terminalling and storing energy.

SemGroup uses its Investor Relations website and social media outlets as channels of distribution of material company information. Such information is routinely posted and accessible on our Investor Relations website at www.semgroupcorp.com, our Twitter account and LinkedIn account.

Forward-Looking Statements
Certain matters contained in this Press Release include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.

All statements, other than statements of historical fact, included in this Press Release may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include the risk factors discussed from time to time in each of our documents and reports filed with the SEC.

Readers are cautioned not to place undue reliance on any forward-looking statements contained in this Press Release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.

Investor Relations:
Alisa Perkins
918-524-8081
investor.relations@semgroupcorp.com

Media:
Tom Droege
918-524-8560
tdroege@semgroupcorp.com

Categories: State

Gold Resource Corporation Reports First Quarter Net Income of $0.10 Per Share, Maintains 2018 Production Outlook

1 May 2018 - 3:35pm

COLORADO SPRINGS, Colo., May 01, 2018 (GLOBE NEWSWIRE) -- Gold Resource Corporation (NYSE American:GORO) (the “Company” or “GRC”) reported production results for the first quarter ended March 31, 2018 of 6,647 ounces of gold and 425,884 ounces of silver, which along with base metal revenue generated $32.2 million in net revenue and $5.5 million, or $0.10 per share in net income for the quarter.  Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, U.S.A.  The Company has returned $110 million to its shareholders in monthly dividends since commercial production commenced July 1, 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.

Q1 2018 HIGHLIGHTS

  • $5.5 million net income, or $0.10 per share
  • $28.6 million cash and cash equivalents (a $6.2 million increase)
  • $32.2 million net sales
  • 6,647 gold ounces produced
  • 425,884 silver ounces produced
  • Negative $316 total cash cost per gold equivalent ounce sold (after by-product credits)
  • $347 total all-in sustaining cost per precious metal gold equivalent ounce sold
  • $20.7 million base metal by-product credits, or $2,010 per precious metal gold ounce sold
  • $0.3 million dividend distributions, or $0.005 per share for quarter

Overview of Q1 2018 Results

Gold Resource Corporation sold 10,275 precious metal gold equivalent ounces at a total cash cost of negative $316 per ounce (after by-product credits), benefiting from strong base metal production and sales. Average realized metal prices during the quarter included $1,342 per ounce gold and $16.58 per ounce silver*. The Company recorded net income of $5.5 million, or $0.10 per share. The Company paid $0.3 million to its shareholders in dividends, or $0.005 per share during the quarter. Cash and cash equivalents at quarter end totaled $28.6 million.

Production totals for the first quarter of 2018 included 6,647 ounces of gold, 425,884 ounces of silver, 385 tonnes of copper, 1,615 tonnes of lead and 4,793 tonnes of zinc. The Company maintains its 2018 Annual Outlook, targeting a plus or minus 10 percent production of 27,000 gold ounces and 1,700,000 silver ounces.

*Average realized metal prices include final settlement adjustments for previously unsettled provisional sales.  Provisional sales may remain unsettled from one quarter into the next.  Realized prices will therefore vary from average spot metal market prices upon final settlement.

The following Production Statistics table summarizes certain information about our mining operations for three months ended March 31, 2018 and 2017:

  Three months ended March 31,   2018 2017Arista Mine      Milled      Tonnes Milled   130,789   72,609Grade      Average Gold Grade (g/t)   1.92   2.69Average Silver Grade (g/t)   106   187Average Copper Grade (%)   0.39   0.39Average Lead Grade (%)   1.63   1.59Average Zinc Grade (%)   4.41   4.28Recoveries      Average Gold Recovery (%)   78   89Average Silver Recovery (%)   91   93Average Copper Recovery (%)   75   78Average Lead Recovery (%)   76   80Average Zinc Recovery (%)   83   85Aguila Open Pit      Milled      Tonnes Milled   5,108   28,721Grade      Average Gold Grade (g/t)   2.16   1.73Average Silver Grade (g/t)   45   30Recoveries      Average Gold Recovery (%)   84   73Average Silver Recovery (%)   86   82Alta Gracia      Milled      Tonnes Milled   3,192   -Grade      Average Gold Grade (g/t)   1.16   -Average Silver Grade (g/t)   182   -Recoveries      Average Gold Recovery (%)   60   -Average Silver Recovery (%)   82   -Combined      Tonnes milled   139,089   101,330Tonnes Milled per Day (1)   1,636   1,206Mill production (before payable metal deductions) (2)      Gold (ozs.)   6,647   6,747Silver (ozs.)   425,884   427,890Copper (tonnes)   385   220Lead (tonnes)   1,615   927Zinc (tonnes)   4,793   2,644Precious metal gold equivalent ounces produced (mill production) (2)      Gold Ounces   6,647   6,747Gold Equivalent Ounces from Silver   5,262   6,090Total Precious Metal Gold Equivalent Ounces   11,909   12,837       

__________________

  1. Based on actual days the mill operated during the period.
  2. Mill production represents metal contained in concentrates produced at the mill, which is before payable metal deductions are levied by the buyer of our concentrates. Payable metal deduction quantities are defined in our contracts with the buyer and represent an estimate of metal contained in the concentrates which the buyer deducts from payment. There are inherent limitations and differences in the sampling method and assaying of estimated metal contained in concentrates that are shipped, and those contained metal estimates are derived from sampling methods and assaying throughout the mill production process. We monitor these differences to ensure that precious metal mill production quantities are materially correct.

The following Sales Statistics table summarizes certain information about our combined mining operations for the three months ended March 31, 2018 and 2017:

  Three months ended March 31,   2018 2017       Metal sold      Gold (ozs.)   5,563    7,133Silver (ozs.)   381,366    420,236Copper (tonnes)   340    225Lead (tonnes)   1,493    839Zinc (tonnes)   3,778    2,149Average metal prices realized (1)      Gold ($ per oz.)   1,342    1,215Silver ($ per oz.)   16.58    17.29Copper ($ per tonne)   7,156    5,871Lead ($ per tonne)   2,573    2,351Zinc ($ per tonne)   3,805    2,839Precious metal gold equivalent ounces sold      Gold Ounces   5,563    7,133Gold Equivalent Ounces from Silver   4,712    5,981Total Precious Metal Gold Equivalent Ounces   10,275    13,114Total cash cost before by-product credits per precious metal gold equivalent ounce sold (2) $ 1,694  $ 980Total cash (credit) cost after by-product credits per precious metal gold equivalent ounce sold (2) (3) $ (316) $ 263Total all-in sustaining cost per precious metal gold equivalent ounce sold (2) $ 347  $ 672Total all-in cost per precious metal gold equivalent ounce sold (2) $ 395  $ 701        

__________________

  1. Average metal prices realized vary from the market metal prices due to final settlement adjustments from our provisional invoices when they are settled. Our average metal prices realized will therefore differ from the market average metal prices in most cases.
  2. For a reconciliation of this non-GAAP measure to total mine cost of sales, which is the most comparable U.S. GAAP measure, please see Non-GAAP Measures in the Company’s most recently filed 10-K.
  3. Total cash (credit) cost was significantly affected by unusually high base metals sales as compared to precious metals sales.

See Accompanying Tables

The calculation of our cash cost per precious metal gold equivalent per ounce sold, total all-in sustaining cost per precious metal gold equivalent per ounce sold and total all-in cost per precious metal gold equivalent per ounce sold contained in this press release are non-GAAP financial measures. Please see "Management's Discussion and Analysis and Results of Operations" contained in the Company’s most recent Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.

The following information summarizes Gold Resource Corporation’s financial condition at March 31, 2018 and December 31, 2017, its results of operations including the three months ended March 31, 2018 and 2017, and its cash flows for the three months ended March 31, 2018 and 2017. The summary data for the three months ended March 31, 2018 is unaudited; the summary data for the year ended December 31, 2017 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2017, but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company’s Form 10-K in its entirety, which can be found on the SEC's website at www.sec.gov.

GOLD RESOURCE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share and per share amounts)

 March 31,  December 31,  2018
 2017
 (Unaudited)   ASSETS     Current assets:     Cash and cash equivalents$ 28,617  $ 22,390 Gold and silver rounds/bullion  3,826    3,812 Accounts receivable  1,642    2,884 Inventories, net  12,920    11,636 Prepaid expenses and other current assets  1,653    1,767 Total current assets  48,658    42,489 Property, plant and mine development, net  85,972    82,599 Deferred tax assets, net  6,828    6,854 Other non-current assets  914    981 Total assets$142,372  $ 132,923 LIABILITIES AND SHAREHOLDERS' EQUITY     Current liabilities:     Accounts payable$ 9,292  $ 6,904 Loan payable, current  574    568 Capital lease, current  388    382 Income taxes payable, net  2,776    1,944 Mining royalty taxes payable, net  3,375    2,359 Accrued expenses and other current liabilities  2,469    2,851 Total current liabilities  18,874    15,008 Reclamation and remediation liabilities  3,180    2,946 Loan payable, long-term  1,499    1,645 Capital lease, long-term  1,119    1,218 Total liabilities  24,672    20,817 Shareholders' equity:     Common stock - $0.001 par value, 100,000,000 shares authorized:     57,230,793 and 56,916,484 shares outstanding at March 31, 2018 and December 31, 2017, respectively  57    57 Additional paid-in capital  115,007    114,584 Retained earnings  9,691    4,520 Treasury stock at cost, 336,398 shares  (5,884)   (5,884)Accumulated other comprehensive loss  (1,171)   (1,171)Total shareholders' equity  117,700    112,106 Total liabilities and shareholders' equity$ 142,372  $ 132,923         

GOLD RESOURCE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

  Three months ended March 31,    2018 2017 Sales, net $32,151 $ 24,336 Mine cost of sales:       Production costs  15,535   11,335 Depreciation and amortization  3,493   2,556 Reclamation and remediation  203   29 Total mine cost of sales   19,231   13,920 Mine gross profit   12,920   10,416 Costs and expenses:       General and administrative expenses  2,354   1,812 Exploration expenses  1,185   822 Other expense, net   278   464 Total costs and expenses   3,817   3,098 Income before income taxes   9,103   7,318  Provision for income taxes  3,646   2,942 Net income $ 5,457 $ 4,376 Net income per common share:       Basic $ 0.10 $ 0.08 Diluted $ 0.09 $ 0.08 Weighted average shares outstanding:       Basic   57,120,077   56,796,751 Diluted   57,911,299   57,991,633         

GOLD RESOURCE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (U.S. dollars in thousands)
(Unaudited)

 Three months ended March 31,  2018
 2017Cash flows from operating activities:     Net income$ 5,457  $ 4,376 Adjustments to reconcile net income to net cash from operating activities:     Deferred income taxes  412    1,296 Depreciation and amortization  3,652    2,663 Stock-based compensation  236    200 Other operating adjustments  (906)   407 Changes in operating assets and liabilities:     Accounts receivable  1,242    (1,129)Inventories  (1,283)   339 Prepaid expenses and other current assets  868    (151)Other noncurrent assets  65    1 Accounts payable and other accrued liabilities  2,726    1,578 Mining royalty and income taxes payable, net  1,489    (578)Net cash provided by operating activities  13,958    9,002       Cash flows from investing activities:     Capital expenditures  (7,332)   (6,062)Other investing activities  2    (78)Net cash used in investing activities  (7,330)   (6,140)      Cash flows from financing activities:     Proceeds from the exercise of stock options  244    - Dividends paid  (285)   (284)Repayment of loan payable  (140)   - Repayment of capital leases  (93)   - Net cash used in financing activities  (274)   (284)      Effect of exchange rate changes on cash and cash equivalents  (127)   (105)Net increase in cash and cash equivalents  6,227    2,473 Cash and cash equivalents at beginning of period  22,390    14,166 Cash and cash equivalents at end of period$ 28,617  $ 16,639       Supplemental Cash Flow Information     Interest expense paid$ 49  $ 13 Income and mining taxes paid$ 730  $ 1,348 Non-cash investing activities:     (Decrease) increase in accrued capital expenditures$ (193) $ 495 Common stock issued for the acquisition of mineral rights$ -  $ 1,300         

About GRC:

Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA.  The Company targets low capital expenditure projects with potential for generating high returns on capital.  The Company has returned $110 million back to shareholders since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.  For more information, please visit GRC’s website, located at www.goldresourcecorp.com and read the Company’s 10-K for an understanding of the risk factors involved.

Cautionary Statements:

This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words “plan”, “target”, "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation’s strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that production will continue at any specific rate.  Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company’s 10-K filed with the SEC.

Contacts:

Corporate Development
Greg Patterson
303-320-7708
www.goldresourcecorp.com

Categories: State

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