March 2023 CPEA Exam Dumps

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Exam Code: CPEA Practice test 2023 by Killexams.com team
CPEA Certified Professional Environmental Auditor (CPEA)

BEAC issues the Certified Professional Environmental Auditor (CPEA®) designation. The CPEA credential demonstrates ones understanding of todays ever changing environmental, health & safety regulations. The CPEA designation is fully accredited by the Council on Engineering and Scientific Specialty Boards (CESB). BEAC CPEAs qualify for Professional Membership status with the American Society of Safety Engineers (ASSE).

Includes identifying environmental aspects and impacts, assessing compliance with environmental laws and regulations, and/or applying professional environmental compliance auditing practices.

Requirements
Education
​Bachelors degree or higher.

Professional Experience
​Applicants for certification must have four years of relevant work experience as defined below.

Audit Experience
​Applicants must perform a minimum of 20 environmental compliance audits for a minimum of 100 days within the four years prior to certification. Of the 100 days, a minimum of 20 days must be conducted on site.

Auditor Training
​Formal training as an attendee or provider is required within the three years prior to certification. This training shall consist of 40 hours of formal training as outlined in the Definition of Relevant Experience and Training Elements outlined below and may be internal or external to the applicant's organization.

Definitions of Relevant Environmental Compliance Experience and Training Elements
​Relevant experience and training must include identifying environmental aspects and impacts, assessing compliance with environmental laws and regulations, and/or applying professional environmental compliance auditing practices. It may include any combination of: environmental science and technology; environmental management and technical aspects of business activities including facility operations; requirements of environmental laws, regulations, and related documents at the national and local jurisdictional levels; evaluation, implementation, and management of environmental compliance; environmental standards against which management systems and compliance audits may be conducted; management systems and compliance audits procedures, processes, and techniques; and principles of environmental compliance and compliance implementation.

Health & Safety
Includes identifying health and safety aspects and impacts, assessing compliance with safety-related laws and regulations, and/or applying professional health & safety auditing practices.

Requirements
Education
​Bachelors degree or higher.

Professional Experience ​Applicants for certification must have four years of relevant work experience as defined below.

Audit Experience
​Applicants must perform a minimum of 20 health and safety audits for a minimum of 100 days within the four years prior to certification. Of the 100 days, a minimum of 20 days must be conducted on site.

Auditor Training
​Formal training as an attendee or provider is required within the three years prior to certification. This training shall consist of 40 hours of formal training in relevant experience elements identified below.
Definition of Relevant Health & Safety Experience and Training Elements
​Relevant experience and training must include identifying health and safety aspects and impacts, assessing compliance with safety-related laws and regulations, and/or applying professional health & safety auditing practices. It may include any combination of: safety engineering; industrial hygiene; health and safety management and technical aspects of business activities including facility operations; requirements of OSHA laws, regulations, and related documents at the national and local jurisdictional levels; evaluation, implementation, and management of health and safety compliance; health and safety standards against which management systems and compliance audits may be conducted; management systems and compliance audits procedures, processes, and techniques; and principles of health and safety compliance and compliance implementation.

Management Systems
Includes skills and understanding in any combination of EHS science and technology; EHS management and technical aspects of business activities including facility operations; requirements of EHS laws, regulations, and related documents at the national and local jurisdictional levels; evaluation, implementation, and management of EHS compliance; EHS standards against which management systems and compliance audits may be conducted; management systems and compliance audits procedures, processes, and techniques; and principles of EHS compliance and compliance implementation.

Requirements
Education
​Bachelors degree or higher.

Professional Experience
​Applicants for certification must have four years of relevant work experience as defined below.

Audit Experience
​Applicants must perform a minimum of 20 MS audits for a minimum of 100 days within the four years prior to certification. Of the 100 days, a minimum of 20 days must be conducted on site.

Auditor Training
​Formal training as an attendee or provider is required within the three years prior to certification. This training shall consist of 40 hours of formal training outlined in the Definition of Relevant Experience and Training Elements shown below, and may be internal or external to the applicant's organization.

Definition of Relevant Management Systems Experience and Training Elements
​Relevant experience and training for the Management System Certification must include any combination of: environmental, health & safety (EHS) science and technology; EHS management and technical aspects of business activities including facility operations; requirements of EHS laws, regulations, and related documents at the national and local jurisdictional levels; evaluation, implementation, and management of EHS compliance; EHS standards against which management systems and compliance audits may be conducted; management systems and compliance audits procedures, processes, and techniques; and principles of EHS compliance and compliance implementation.
​Responsible Care®
Includes skills and understanding in one or more of the following areas: implementation of Responsible Care programs; the chemical process industry; product stewardship, transportation or distribution of chemical products; requirements of EHS laws, regulations and related documents; and EHS/Responsible Care management systems and standards or related auditing procedures, processes and auditing techniques.

Requirements
Education
​Bachelors degree or higher.

Professional Experience
​Applicant is required to have a minimum of four years relevant work experience, gained during the last ten years. Clear evidence of work experience in the chemical industry or EHS fields that provides an understanding of these issues shall be required. Relevant work experience shall be considered verifiable experience and shall be defined as experience that develops skills and understanding in at least two of the areas described below.

Audit Experience ​Applicants must have performed at least four EMS-related audits consisting of at least 20 total days within the two years prior to certification.

Auditor Training
​Formal training as an attendee or provider is required within the three years prior to certification. This training shall consist of 40 hours of formal training in relevant experience elements identified below. As part of this training, the applicant must successfully complete an ACC qualified Responsible Care course in accordance with "Responsible Care Auditor Course Requirements."

Definition of Relevant Responsible Care Experience and Training Elements
​Relevant experience and training must include verifiable experience gained during the last ten years and shall be defined as experience that develops skills and understanding in at least two of the following areas: implementation of Responsible Care programs; EHS science and technology; work experience gained by real hands-on roles in the chemical process industry and/or EHS services; product stewardship, transportation or distribution of chemical products; requirements of EHS laws, regulations and related documents; and EHS/Responsible Care management systems and standards or related auditing procedures, processes and auditing techniques. Auditor training must include 40 hours in the last three years and successful completion of an ACC qualified Responsible Care course in accordance with "Responsible Care Auditor Course Requirements" (RCMS206.00).

Certified Professional Environmental Auditor (CPEA)
Financial Environmental availability
Killexams : Financial Environmental availability - 100% Guaranteed https://killexams.com/pass4sure/exam-detail/CPEA Search results Killexams : Financial Environmental availability - 100% Guaranteed https://killexams.com/pass4sure/exam-detail/CPEA https://killexams.com/exam_list/Financial Killexams : Greenland Resources Submits Environmental Impact Assessment

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TORONTO — Greenland Resources Inc. (NEO: MOLY | FSE: M0LY) (“Greenland Resources” or the “Company”) following its press release dated December 12, 2023, is pleased to announce the regulatory submission of the independent Environmental Impact Assessment report (the “EIA”) for the Malmbjerg Molybdenum Project in east Greenland (the “Project”). The EIA conducted by WSP Danmark A/S (“WSP”), evaluates and assigns a rating on possible environmental impacts of the Project and considers mitigation measures. The majority of the Project impacts were assessed to be of low environmental risk.

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Highlights

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  • On environmental impacts of the Project, using a scale of very low, low, medium and high, sixteen out of nineteen environmental impacts analyzed are assessed to be low or very low and three medium
  • On environmental risks due to accidents and natural disasters, all three risks analyzed which include risk of tailings disposal from the Tailings Management Facility (“TMF”) to the sea, contamination of land and fresh water and contamination of the sea due to shipping accidents are assessed to be of low environmental risk
  • Significant decarbonization has already been achieved with the proposed aerial conveyor that will haul downhill 35,000 tonnes per day of ore from the mine to the concentrator, will produce no CO2and will generate electricity through regenerative braking
  • The subaqueous tailings deposit design will reduce the existing contamination in the area caused in the 1960’s
  • Due to the environmentally friendly modularized infrastructure design, the construction, closure and decommissioning plan has a low footprint with low environmental risk of disturbance
  • The TMF water storage in Noret Inlet contains salt water which will be used as the process water source, negating the use of fresh water supply, and will be recycled and not discharged to the environment

Dr. Ruben Shiffman, Chairman, commented, “The independent findings of our EIA are very positive for the development of our Project and are to a greater degree a consequence of the hard work we put in our feasibility study and environmentally friendly mine design that help mitigate environmental risks. All the existing molybdenum mines are old and lack many of the low environmental risk features we are proposing. We are closely following innovation and technology and we are aiming to achieve decarbonization and emission-reduction targets consistent with our northern European end users. Our current EIA findings provide strong support on environmental sustainability while our current SIA findings recently announced are powerful on economic and social sustainability.”

The studies relating to the independent EIA were prepared by WSP, an experienced environmental service provider with respect to mining and permitting operations in Greenland, according to the Greenland EIA Guidelines for preparing an Environmental Impact Assessment report for mineral exploitation in Greenland. The EIA follows the requirements determined in the Company’s Terms of Reference (ToR) for the EIA approved by the Government of Greenland (Naalakkersuisut) on September 29, 2023. The EIA represents over three years of work and correlates results of over thirteen years of extensive environmental data available in the Project area.

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The EIA submitted is based upon the development of the molybdenum proven and probable reserves contained in the Company’s license as outlined in the Feasibility Study published in 2023. The Company anticipates production of 24.1 million pounds of contained molybdenum metal per year for twenty years. As the high-grade molybdenum is mined for the first half of the mine life, the average annual production for years one to ten is 32.8 million pounds per year of contained molybdenum metal at an average grade of 0.23% MoS2. During the approval process, the EIA may lead to modifications based on comments received from regulators and the consultation process and will aim to be consistent with the approved ToR EIA.

The Company is proactively working to achieve sustainability which includes global climate goals that are consistent with the decarbonization goals expressed by the northern European molybdenum steel and chemical end users. In addition, Greenland Resources is continuously implementing measures to achieve environmental sustainability such as the sourcing of high efficiency low energy consumption mining equipment, promotion of energy reductions across the mining process, and monitoring development of possible cleaner fuel. The Company is following closely two advanced leading research Institutes on carbon capture technologies based on use of zeolites in the solid capturing of carbon dioxide, in order to achieve carbon neutrality once it becomes commercially viable.

Qualified Person Statement

The news release has been reviewed and approved by Mr. Jim Steel, P.Geo., M.B.A. a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 “Standards of Disclosure for Mineral Projects”.

About Greenland Resources Inc.

Greenland Resources is a Canadian public company with the Ontario Securities Commission as its principal regulator and is focused on the development of its 100% owned world-class Climax type pure molybdenum deposit located in central east Greenland. The Malmbjerg molybdenum project is an open pit operation with an environmentally friendly mine design focused on reduced water usage, low aquatic disturbance and low footprint due to modularized infrastructure. The Malmbjerg project benefits from a NI 43-101 Definitive Feasibility Study completed by Tetra Tech in 2023, with Proven and Probable Reserves of 245 million tonnes at 0.176% MoS2, for 571 million pounds of contained molybdenum metal. The project had a previous exploitation license granted in 2009. With offices in Toronto, the Company is led by a management team with an extensive track record in the mining industry and capital markets. For further details, please refer to our web site ( www.greenlandresources.ca) and our Canadian regulatory filings on Greenland Resources’ profile at www.sedar.com.

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The Project is supported by the European Raw Materials Alliance (ERMA) as stated in their press release EIT/ERMA_June 13, 2023 Press Release, a Knowledge and Innovation Community of the European Institute of Innovation and Technology (EIT), a body of the European Union.

About Molybdenum and the European Union

Molybdenum is a critical metal used mainly in steel and chemicals that is needed in all technologies in the upcoming green energy transition (World Bank, 2020; IEA, 2021). When added to steel and cast iron, it enhances strength, hardenability, weldability, toughness, temperature strength, and corrosion resistance. Based on data from the International Molybdenum Association and the European Commission Steel Report, the world produced around 576 million pounds of molybdenum in 2021 where the European Union (“EU”) as the second largest steel producer in the world used approximately 25% of global molybdenum supply and has no domestic molybdenum production. To a greater degree, the EU steel dependent industries like the automotive, construction, and engineering, represent around 18% of the EU’s ≈ US$16 trillion GDP. Greenland Resources strategically located Malmbjerg molybdenum project has the potential to supply in and for the EU approximately 24 million pounds per year, of environmentally friendly molybdenum from a responsible EU Associate country, for decades to come. The high quality of the Malmbjerg ore, having low impurity content in phosphorus, tin, antimony, and arsenic, makes it an ideal source of molybdenum for the high-performance steel industry lead worldwide by Europe, specifically the Scandinavian countries and Germany.

Forward Looking Statements

This news release contains “forward-looking information” (also referred to as “forward looking statements”), which relate to future events or future performance and reflect management’s current expectations and assumptions. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “hopes”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. All statements, other than statements of historical fact, are forward-looking statements or information. Forward-looking statements or information in this news release relate to, among other things: the Company’s objectives, goals or future plans, the Company’s environmental and social assessment studies, results of discussions with stakeholders, future consumers, and other parties, and changes to the Company’s plans as a result of such discussions, the Company’s relationship with local communities, the Company’s permitting process for the Project; statements, exploration results, potential mineralization, the estimation of mineral resources and reserves, and their valuation, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions.

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These forward-looking statements and information reflect the Company’s current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: the results of EIA reports on the Project being positive and allowing the Company’s current plans with respect to the Project to be carried out; obtaining the permitting on the Project in a timely manner; no adverse changes to the planned operations of the Project as a result of the EIA; continued favourable relationships with local communities; current EU and other initiatives remaining in place into the future; expected demand for molybdenum in the EU and abroad; our mineral reserve estimates and the assumptions upon which they are based, including geotechnical and metallurgical characteristics of rock confirming to sampled results and metallurgical performance; tonnage of ore to be mined and processed; ore grades and recoveries; assumptions and discount rates being appropriately applied to the technical studies; estimated valuation and probability of success of the Company’s projects, including the Malmbjerg molybdenum project; prices for molybdenum remaining as estimated; currency exchange rates remaining as estimated; availability of funds for the Company’s projects; capital decommissioning and reclamation estimates; mineral reserve and resource estimates and the assumptions upon which they are based; prices for energy inputs, labour, materials, supplies and services (including transportation); no labour-related disruptions; no unplanned delays or interruptions in scheduled construction and production; all necessary permits, licenses and regulatory approvals are received in a timely manner or at all; and the ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.

The Company cautions the reader that forward-looking statements and information include known and unknown risks, uncertainties and other factors that may cause real results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the favourable results of the EIA; favourable local community support for the Project’s development; the projected demand for molybdenum both in the EU and elsewhere; the current initiatives and programs for resource development in the EU and abroad; the projected and real effects of the COVID-19 coronavirus on the factors relevant to the business of the Corporation, including the effect on supply chains, labour market, currency and commodity prices and global and Canadian capital markets, fluctuations in molybdenum and commodity prices; fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation); fluctuations in currency markets (such as the Canadian dollar versus the U.S. dollar versus the Euro); operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structure formations, cave-ins, flooding and severe weather); inadequate insurance, or the inability to obtain insurance, to cover these risks and hazards; our ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices in Greenland, including environmental, export and import laws and regulations; legal restrictions relating to mining; risks relating to expropriation; increased competition in the mining industry for equipment and qualified personnel; the availability of additional capital; title matters and the additional risks identified in our filings with Canadian securities regulators on SEDAR in Canada (available at www.sedar.com). Although the Company has attempted to identify important factors that could cause real results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Investors are cautioned against undue reliance on forward-looking statements or information.

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These forward-looking statements are made as of the date hereof and, except as required by applicable securities regulations, the Company does not intend, and does not assume any obligation, to update the forward-looking information. Neither the NEO Exchange Inc. nor its regulation services provider accepts responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230213005375/en/

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Contacts

For further information please contact:

Ruben Shiffman, PhD Chairman, President
Keith Minty, P.Eng, MBA Engineering and Project Management
Jim Steel, P.Geo, MBA Exploration and Mining Geology
Nauja Bianco, M.Pol.Sci. Public and Community Relations
Gary Anstey Investor Relations
Eric Grossman, CPA, CGA Chief Financial Officer
Corporate office Suite 1410, 181 University Av. Toronto, Ontario, Canada M5H 3M7
Telephone +1 647 273 9913
Email info@greenlandresourcesinc.com
Web www.greenlandresources.ca

#distro

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Sun, 12 Feb 2023 10:01:00 -0600 en-CA text/html https://financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/greenland-resources-submits-environmental-impact-assessment
Killexams : The U.S. EPA and environmental justice implications in cannabis

This Black History Month, let’s talk about environmental justice and its implications for the cannabis industry. In 1970 President Nixon created the Environmental Protection Agency (EPA), via executive order EPA Order 1110.2, to permit coordinated and effective government action on behalf of the environment. The EPA serves as an umbrella agency to regulate environmental laws and policy ensuring industrial operations don’t cause undue harm to human health and the environment. Through this umbrella agency, environmental policy is legislated, regulated, inspected, and enforced within 4 key tenets:

  • Air and Radiation
  • Water
  • Pesticides and Toxic Substances
  • Solid Waste and Emergency Response

In the late 1960s, an abundance of environmental complaints were reported in areas of lower socio-economic communities, largely populated by black and brown people. In 1968 the Environmental Justice movement began with the Memphis Sanitation Strike and was championed by individuals who sought to address the inequity of environmental protection within urban communities.

Prior to EPA, regulations for manufacturer operating distance from neighborhoods, waterways, schools and communities were non-existent; which led to an increased risk of exposure to poor air quality from industrial processes, forcing chronic inhalation of harmful chemical compounds by local citizens. Additionally, residents were exposed to harmful chemicals in their drinking water due to no regulation on waste disposal. Amidst national growing concern, the EPA launched the Environmental Equity Workgroup in 1990. By 1992 EPA established the Office of Environmental Equity; known today as the Office of Environmental Justice.

Today, federal cannabis prohibition has prevented EPA promulgation of cannabis industry-specific best practices thereby, increasing the risk of non-compliance. While state-specific guidance is available in several states, it is not always clear which rules apply to specific cannabis processes and operations. As a result of this ambiguity, several operators have become aware of their environmental liabilities only after costly incidents, violations, and fines.

In June of 2021, a California extraction facility pled guilty to transporting hazardous materials simply because they did not have the right permits and documents completed. Later that month, a processing facility in Massachusetts received citations in excess of $17,000 for:

  • Air emission violations/ not having a permit for volatile organic compounds
  • No permit/ certification for diesel-powered backup emergency generators
  • No permit/ approval to operate an industrial wastewater holding tank
  • Generating hazardous waste without a permit
  • No labels on the hazardous waste satellite accumulation area

Equity should not be used exclusively to describe representation and financial availability for people of color in the cannabis industry; but also in everyone’s right to breathe clean air, drink clean water, and exist in a society without concern for unknown potential health effects. As leaders in cannabis, it is our responsibility to build a wholly equitable and compliant industry.

When looking at how best to protect your human capital and financial risk, remember that environmental compliance is a necessary component; incidents can be prevented and risks can be mitigated.

Not sure where to start? Contact Delta Compliance for your free consultation and let the experts guide you through the intricacies and requirements of environmental compliance and permitting.

Talya D. Mayfield

Talya Mayfield is the CEO and Principal consultant for Delta Compliance Consulting. Talya has a B.S. in Biology, an M.S. in Industrial Engineering Management, and a Certificate in Lean Six Sigma.
She spent 8 years in cement manufacturing and hazardous waste working on a range of environmental compliance requirements, from improving safety and employee exposure, to hazardous material management and disposal permitting.

She has now merged this expertise with her love of all things cannabis, and launched Delta Compliance Consulting to help cannabis operators run safe, compliant and successful facilities. 

Mon, 13 Feb 2023 06:21:00 -0600 en-US text/html https://mogreenway.com/2023/02/13/the-u-s-epa-and-environmental-justice-implications-in-cannabis/
Killexams : Matador Resources Company Names New Chief Financial Officer

DALLAS, February 16, 2023--(BUSINESS WIRE)--Matador Resources Company (NYSE: MTDR) ("Matador") today announced the promotion of Brian J. Willey to Chief Financial Officer, President of Midstream Operations and Executive Vice President, effective as of February 16, 2023. Mr. Willey will continue to serve as the President of San Mateo Midstream, LLC, Matador’s midstream joint venture, among his other duties. Mr. Willey joined Matador in February 2014 and most recently served as Matador’s President and General Counsel of Midstream Operations and Executive Vice President of Matador as well as President of San Mateo Midstream, LLC.

Soon after Mr. Willey joined Matador in February 2014 as its Deputy General Counsel, Mr. Willey was appointed as Co-General Counsel. He was then promoted to Vice President and Co-General Counsel in August 2016 and became Senior Vice President and Co-General Counsel in July 2018. In March 2023, Mr. Willey was promoted to President of San Mateo and Senior Vice President, President and General Counsel of Midstream. Mr. Willey was promoted to President and General Counsel of Midstream Operations and Executive Vice President in October 2023.

Mr. Willey previously served as a senior associate in the Dallas office of Baker Botts L.L.P. where his practice focused on corporate matters, including mergers and acquisitions, public and private securities offerings, venture capital transactions and SEC compliance matters as well as board of director and corporate governance matters.

Mr. Willey received a Bachelor of Science degree in Accounting in 2002 from Brigham Young University, where he graduated magna cum laude. He received his law degree in 2005 from The University of Texas School of Law, where he graduated with High Honors and was a member of the Order of the Coif in addition to being named a Chancellor and an Associate Editor on the Texas Law Review. Mr. Willey also served a church mission in the Philippines from 1995 to 1997.

Joseph Wm. Foran, Matador’s Founder, Chairman and Chief Executive Officer, stated, "Brian has been a key member of Matador since he joined us. The Board and I congratulate him on this promotion to Chief Financial Officer and all of us look forward to working with him in that role. Brian’s accounting and legal background have served him well. To this point, Brian has assisted primarily in building our legal department and midstream business since he joined Matador in 2014. In this new role, Brian will serve as Matador’s principal financial officer and will have the opportunity to develop deeper relationships with our directors, investors, lenders, analysts and other stakeholders as well as playing a larger role in planning, strategy and personnel decisions. Michael Frenzel has done a tremendous job serving as the principal financial officer for the Company over the past year, and I look forward to us continuing to work with him in his longtime role as Executive Vice President and Treasurer and as a member of the finance and special projects teams."

About Matador Resources Company

Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. Matador also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Additionally, Matador conducts midstream operations in support of its exploration, development and production operations and provides natural gas processing, oil transportation services, natural gas, oil and produced water gathering services and produced water disposal services to third parties.

For more information, visit Matador Resources Company at www.matadorresources.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. "Forward-looking statements" are statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "could," "believe," "would," "anticipate," "intend," "estimate," "expect," "may," "should," "continue," "plan," "predict," "potential," "project," "hypothetical," "forecasted" and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, future liquidity, the payment of dividends, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. real results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, the following risks related to financial and operational performance: general economic conditions; the Company’s ability to execute its business plan, including whether its drilling program is successful; changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; its ability to replace reserves and efficiently develop current reserves; the operating results of the Company’s midstream oil, natural gas and water gathering and transportation systems, pipelines and facilities, the acquiring of third-party business and the drilling of any additional salt water disposal wells; costs of operations; delays and other difficulties related to producing oil, natural gas and natural gas liquids; delays and other difficulties related to regulatory and governmental approvals and restrictions; impact on the Company’s operations due to seismic events; availability of sufficient capital to execute its business plan, including from future cash flows, available borrowing capacity under its revolving credit facilities and otherwise; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions; the operating results of and the availability of any potential distributions from our joint ventures; weather and environmental conditions; the impact of the worldwide spread of the novel coronavirus, or COVID-19, or variants thereof, on oil and natural gas demand, oil and natural gas prices and its business; and the other factors which could cause real results to differ materially from those anticipated or implied in the forward-looking statements. For further discussions of risks and uncertainties, you should refer to Matador’s filings with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" section of Matador’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Matador undertakes no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law, including the securities laws of the United States and the rules and regulations of the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230216005851/en/

Contacts

Mac Schmitz
Vice President – Investor Relations
investors@matadorresources.com
(972) 371-5225

Thu, 16 Feb 2023 07:39:00 -0600 en-US text/html https://www.yahoo.com/now/matador-resources-company-names-chief-214000653.html
Killexams : NMG Obtains Financial Levers of Up to CA$3.6 Million to Further Develop its Advanced Transformation Processes for Environmentally Friendly Anode Material No result found, try new keyword!In line with its strategy of full vertical integration, Nouveau Monde Graphite Inc. (“NMG” or the “Company”) (NYSE: NMG, TSX.V: NOU) is continuing to ... Fri, 10 Feb 2023 03:34:00 -0600 https://www.businesswire.com/news/home/20230210005316/en/NMG-Obtains-Financial-Levers-of-Up-to-CA3.6-Million-to-Further-Develop-its-Advanced-Transformation-Processes-for-Environmentally-Friendly-Anode-Material Killexams : Capstone Copper Announces Filing of Audited Annual Financial Statements

VANCOUVER, British Columbia, February 17, 2023--(BUSINESS WIRE)--Capstone Copper Corp. ("Capstone" or the "Company") (TSX:CS) has filed its audited annual financial statements and related management’s discussion and analysis for the financial year ended December 31, 2023 with the applicable Canadian securities regulatory authorities on SEDAR.

The documents are available on the Company’s website at www.capstonecopper.com and at www.sedar.com.

ABOUT CAPSTONE COPPER CORP.

Capstone Copper Corp. is an Americas-focused copper mining company headquartered in Vancouver, Canada. We own and operate the Pinto Valley copper mine located in Arizona, USA, the Cozamin copper-silver mine located in Zacatecas, Mexico, the Mantos Blancos copper-silver mine located in the Antofagasta region, Chile, and 70% of the Mantoverde copper-gold mine, located in the Atacama region, Chile. In addition, we own the fully permitted Santo Domingo copper-gold project, located approximately 30 kilometres northeast of Mantoverde in the Atacama region, Chile, as well as a portfolio of exploration properties in the Americas.

Capstone Copper’s strategy is to unlock transformational copper production growth while executing on cost and operational improvements through innovation, optimization and safe and responsible production throughout our portfolio of assets. We focus on profitability and disciplined capital allocation to surface stakeholder value. We are committed to creating a positive impact in the lives of our people and local communities, while delivering compelling returns to investors by sustainably producing copper to meet the world’s growing needs.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This document may contain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation.

Forward-looking statements relate to future events or future performance and reflect our expectations or beliefs regarding future events and the impacts of the ongoing and evolving COVID-19 pandemic and the evolving geopolitical environment. Forward-looking statements include, but are not limited to, statements with respect to the execution of our future growth projects, our financial liquidity and development of our projects, the estimation of Mineral Resources and Mineral Reserves, the success of the underground paste backfill and tailings filtration projects at Cozamin, the timing and cost of the construction of the paste backfill and dry stack tailings plant at Cozamin, the success and timing of the Mantos Blancos Concentrator Debottlenecking Project, the timing and cost of the Mantoverde Development Project, the timing and results of the PV4 study, the expected reduction in capital requirements for the Santo Domingo project, the timing and success of the Cobalt Study for Santo Domingo, the timing and results of the integrated plan for Mantoverde - Santo Domingo, the realization of Mineral Reserve estimates, the timing and amount of estimated future production, the costs of production and capital expenditures and reclamation, the budgets for exploration at Cozamin, Santo Domingo, Pinto Valley, Mantos Blancos, Mantoverde and other exploration projects, the timing and success of the Copper Cities project, the success of our mining operations, the continuing success of mineral exploration, the estimations for potential quantities and grade of inferred resources and exploration targets, our ability to fund future exploration activities, our ability to finance the Santo Domingo project and other current or future projects and expansions, environmental risks, unanticipated reclamation expenses and title disputes, the success of the synergies and catalysts related to prior transactions, and the anticipated future production, costs of production, including the cost of sulphuric acid and oil and other fuel, capital expenditures and reclamation of the Company's operations and development projects and the risks included in our continuous disclosure filings on SEDAR at www.sedar.com. The potential effects of the COVID-19 pandemic on our business and operations are unknown at this time, including Capstone Copper’s ability to manage challenges and restrictions arising from COVID-19 in the communities in which Capstone Copper operates and our ability to continue to safely operate. The impact of COVID-19 to Capstone Copper is dependent on a number of factors outside of our control and knowledge, including the effectiveness of the measures taken by public health and governmental authorities to combat the spread of the disease, global economic uncertainties and outlook due to the disease, supply chain delays resulting in lack of availability of supplies, goods and equipment, and evolving restrictions relating to mining activities and to travel in certain jurisdictions in which we operate.

In certain cases, forward-looking statements can be identified by the use of words such as "anticipates", "approximately", "believes", "budget", "estimates", expects", "forecasts", "guidance", intends", "plans", "scheduled", "target", or variations of such words and phrases, or statements that certain actions, events or results "be achieved", "could", "may", "might", "occur", "should", "will be taken" or "would" or the negative of these terms or comparable terminology. In this document certain forward-looking statements are identified by words including "anticipated", "expected", "guidance" and "plan". By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our real results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to inherent hazards associated with mining operations and closure of mining projects, future prices of copper and other metals, compliance with financial covenants, surety bonding, our ability to raise capital, Capstone Copper’s ability to acquire properties for growth, counterparty risks associated with sales of our metals, use of financial derivative instruments and associated counterparty risks, foreign currency exchange rate fluctuations, market access restrictions or tariffs, changes in general economic conditions, availability and quality of water, accuracy of Mineral Resource and Mineral Reserve estimates, operating in foreign jurisdictions with risk of changes to governmental regulation, compliance with governmental regulations, compliance with environmental laws and regulations, reliance on approvals, licences and permits from governmental authorities and potential legal challenges to permit applications, contractual risks including but not limited to, our ability to meet the completion test requirements under the Cozamin Silver Stream Agreement with Wheaton Precious Metals Corp. ("Wheaton"), our ability to meet certain closing conditions under the Santo Domingo Gold Stream Agreement with Wheaton, acting as Indemnitor for Minto Metals Corp.’s surety bond obligations post divestiture, impact of climate change and changes to climatic conditions at our operations and projects, changes in regulatory requirements and policy related to climate change and greenhouse gas ("GHG") emissions, land reclamation and mine closure obligations, aboriginal title claims and rights to consultation and accommodation, risks relating to widespread epidemics or pandemic outbreak including the COVID-19 pandemic; the impact of COVID-19 on our workforce, risks related to construction activities at our operations and development projects, suppliers and other essential resources and what effect those impacts, if they occur, would have on our business, including our ability to access goods and supplies, the ability to transport our products and impacts on employee productivity, the risks in connection with the operations, cash flow and results of Capstone Copper relating to the unknown duration and impact of the COVID-19 pandemic, impacts of inflation, geopolitical events and the effects of global supply chain disruptions, uncertainties and risks related to the potential development of the Santo Domingo project, risks related to the Mantos Blancos Concentrator Debottlenecking Project and the Mantoverde Development Project, increased operating and capital costs, increased cost of reclamation, challenges to title to our mineral properties, increased taxes in jurisdictions the Company operates or is subject to tax, changes in tax regimes we are subject to and any changes in law or interpretation of law may be difficult to react to in an efficient manner, maintaining ongoing social licence to operate, seismicity and its effects on our operations and communities in which we operate, dependence on key management personnel, potential conflicts of interest involving our directors and officers, corruption and bribery, limitations inherent in our insurance coverage, labour relations, increasing input costs such as those related to sulphuric acid, electricity, fuel and supplies, increasing inflation rates, competition in the mining industry including but not limited to competition for skilled labour, risks associated with joint venture partners and non-controlling shareholders or associates, our ability to integrate new acquisitions and new technology into our operations, cybersecurity threats, legal proceedings, the volatility of the price of the common shares, the uncertainty of maintaining a liquid trading market for the common shares, risks related to dilution to existing shareholders if stock options or other convertible securities are exercised, the history of Capstone Copper with respect to not paying dividends and anticipation of not paying dividends in the foreseeable future and sales of common shares by existing shareholders can reduce trading prices, and other risks of the mining industry as well as those factors detailed from time to time in the Company’s interim and annual financial statements and MD&A of those statements and Annual Information Form, all of which are filed and available for review under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause our real results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that cause our results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that our forward-looking statements will prove to be accurate, as our real results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements.

CAUTIONARY NOTE TO UNITED STATES INVESTORS REGARDING PRESENTATION OF MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES

As a British Columbia corporation and a "reporting issuer" under Canadian securities laws, we are required to provide disclosure regarding our mineral properties in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. In accordance with NI 43-101, we use the terms mineral reserves and resources as they are defined in accordance with the CIM Definition Standards on mineral reserves and resources (the "CIM Definition Standards") adopted by the Canadian Institute of Mining, Metallurgy and Petroleum. In particular, the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" used in this annual information form and the documents incorporated by reference herein and therein, are Canadian mining terms defined in accordance with CIM Definition Standards. These definitions differ from the definitions in the disclosure requirements promulgated by the SEC. Accordingly, information contained in this annual information form and the documents incorporated by reference herein may not be comparable to similar information made public by U.S. companies reporting pursuant to SEC disclosure requirements.

United States investors are also cautioned that while the SEC will now recognize "measured mineral resources", "indicated mineral resources" and "inferred mineral resources", investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater amount of uncertainty as to their existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any "measured mineral resources", "indicated mineral resources", or "inferred mineral resources" that we report are or will be economically or legally mineable. Further, "inferred resources" have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist. In accordance with Canadian rules, estimates of "inferred mineral resources" cannot form the basis of feasibility or other economic studies, except in limited circumstances where permitted under NI 43-101.

1 These are alternative performance measures. Refer to the section entitled "Alternative Performance Measures" in the Cautionary Notes
2 2023 C1 Cash Costs are preliminary. Final results will be released on February 15th, 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230217005348/en/

Contacts

Jerrold Annett, SVP, Strategy and Capital Markets
647-273-7351
jannett@capstonecopper.com

Kettina Cordero, Director Investor Relations & Communications
604-262-9794
kcordero@capstonecopper.com

Fri, 17 Feb 2023 07:30:00 -0600 en-US text/html https://www.yahoo.com/now/capstone-copper-announces-filing-audited-213000065.html
Killexams : SolGold PLC Announces Half-Yearly Financial Report and Quarterly MD&A

The MarketWatch News Department was not involved in the creation of this content.

Feb 14, 2023 (ACCESSWIRE via COMTEX) -- BISHOPSGATE, UK / ACCESSWIRE / February 14, 2023 / The Board of Directors of SolGold (LSE:SOLG)(TSX:SOLG) is pleased to advise all shareholders and interested investors of the release of the Company's interim financial results for the half year ended 31 December 2023. The full interim financial report is available here: http://www.rns-pdf.londonstockexchange.com/rns/7933P_1-2023-2-13.pdf

Further, the Board advises shareholders and interested investors that the Company's website also contains access to additional information required to be filed on SEDAR in Canada in connection with the Company's quarterly financial period ended 31 December 2023. The Management Discussion and Analysis report is available here: http://www.rns-pdf.londonstockexchange.com/rns/7933P_2-2023-2-13.pdf

This announcement was approved for release by Rufus Gandhi - Company Secretary.

CONTACTS

Rufus Gandhi
SolGold Plc (Company Secretary)


Tel: +61 (0) 7 3180 3823

Fawzi Hanano/Lia Abady
SolGold Plc (Investors/Communication)
investors@solgold.com.au/info@solgold.com.au


Tel: +44 (0) 20 3823 2130

Tavistock (Media)
Jos Simson/Gareth Tredway


Tel: +44 (0) 20 7920 3150

ABOUT SOLGOLD

SolGold is a leading resources company focussed on the discovery, definition and development of world-class copper and gold deposits and continues to strive to deliver objectives efficiently and in the interests of shareholders. SolGold is exploring the length and breadth of the highly prospective and gold-rich section of the Andean Copper Belt which is currently responsible for c40% of global mined copper production.

The Company operates with transparency and in accordance with international best practices. SolGold is committed to delivering value to its shareholders, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact.

SolGold is listed on the London Stock Exchange and Toronto Stock Exchange (LSE/TSX: SOLG).

Seewww.solgold.com.aufor more information. Follow us on twitter @SolGold plc

CAUTIONARY NOTICE

News releases, presentations and public commentary made by SolGold plc (the "Company") and its Officers may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to interpretations of exploration results to date and the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's Directors, including the plan for developing the Project currently being studied as well as the expectations of the Company as to the forward price of copper. Such forward-looking and interpretative statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the real performance or achievements of the Company to be materially different from such interpretations and forward-looking statements.

Accordingly, the reader should not rely on any interpretations or forward-looking statements; and save as required by the exchange rules of the TSX and LSE or by applicable laws, the Company does not accept any obligation to disseminate any updates or revisions to such interpretations or forward-looking statements. The Company may reinterpret results to date as the status of its assets and projects changes with time expenditure, metals prices and other affecting circumstances.

This release may contain "forward�?'looking information". Forward�?'looking information includes, but is not limited to, statements regarding the Company's plans for developing its properties. Generally, forward�?'looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".

Forward�?'looking information is subject to known and unknown risks, uncertainties and other factors that may cause the real results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward�?'looking information, including but not limited to: transaction risks; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause real results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as real results and future events could differ materially from those anticipated in such statements. Factors that could cause real results to differ materially from such forward-looking information include, but are not limited to, risks relating to the ability of exploration activities (including assay results) to accurately predict mineralization; errors in management's geological modelling and/or mine development plan; capital and operating costs varying significantly from estimates; the preliminary nature of visual assessments; delays in obtaining or failures to obtain required governmental, environmental or other required approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; the global economic climate; fluctuations in commodity prices; the ability of the Company to complete further exploration activities, including drilling; delays in the development of projects; environmental risks; community and non-governmental actions; other risks involved in the mineral exploration and development industry; the ability of the Company to retain its key management employees and skilled and experienced personnel; and those risks set out in the Company's public documents filed on SEDAR at www.sedar.com. Accordingly, readers should not place undue reliance on forward�?'looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

The Company and its officers do not endorse, or reject or otherwise comment on the conclusions, interpretations or views expressed in press articles or third-party analysis.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: SolGold PLC

View source version on accesswire.com: https://www.accesswire.com/739252/SolGold-PLC-Announces-Half-Yearly-Financial-Report-and-Quarterly-MDA

COMTEX_424451740/2457/2023-02-14T02:01:41

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

The MarketWatch News Department was not involved in the creation of this content.

Mon, 13 Feb 2023 16:01:00 -0600 en-US text/html https://www.marketwatch.com/press-release/solgold-plc-announces-half-yearly-financial-report-and-quarterly-mda-2023-02-14
Killexams : Capstone Green Energy Announces Third Quarter Fiscal 2023 Financial Results

Third Quarter Revenues of $19.6M; Fiscal 2023 Year-to-Date Revenues up 9.5%, $59.0M Compared to $53.9M in Fiscal Year 2023

Third Quarter Net Loss is $5.2M; Adjusted EBITDA Loss of $1.7M Improved 43% Year-over-Year; Fiscal Year 2023 Year-to-Date Adjusted EBITDA Improved 57%

Rental units under contract increased 126% to 40 MW versus December 2021

Capstone Green Energy Corporation CGRN, announced its financial results for the third quarter ended December 31, 2023, as the Company continues to execute on its Energy-as-a-Service (EaaS) business plan.

"Revenue for the third quarter was $1.0 million less compared to the same period last year; however our year-to-date revenue is up 9.5%, when compared to the first nine months of the prior year. This revenue growth is largely attributed to our Energy as a Service (EaaS) business which continues to grow, despite a very tough supply chain environment. Although product shipments during the third quarter were challenged as we continue to battle supply chain disruptions and higher costs, I expect this will begin to be offset by our price increases implemented at the end of January," said Darren Jamison, President, and Chief Executive Officer of Capstone Green Energy.

Third Quarter and Nine Months Fiscal 2023 Highlights:

  • Revenues for the third quarter ending December 31, 2023, were $19.6 million, down 6% from $20.8 million in revenue during the second quarter ended September 30, 2023, and down 5% from $20.6 million in the year-ago third quarter.
  • Revenues for the first nine months of fiscal 2023 totaled $59.0 million, up 9.5% from $53.9 million from the nine months of fiscal 2023.
  • EaaS business (Factory Protection Plan (FPP) Service, Spare Parts and Rentals) revenues were up 18% for the nine months of fiscal 2023 mainly due to higher rental and FPP revenues.
  • Gross margins for the third quarter ending December 31, 2023, were 14% compared to 11% in the second quarter ending September 30, 2023 and 11% in the year ago third quarter ended December 31, 2021. Gross margins increased primarily due to a greater proportion of revenue from the higher-margin rental fleet offsetting increased costs in the company's supply chain.
  • Gross margins for the nine months of fiscal 2023 increased to 16% from 14% for the nine months of fiscal 2023, but were below Company expectations of 25% because of ongoing supply chain expenses, freight and expediting charges.
  • Net loss was $5.2 million for the third quarter ending December 31, 2023, compared to a net loss of $5.1 million in the same quarter last year. Prior year net loss included a $2.6 million benefit from the Paycheck Protection Program loan forgiveness. Without such forgiveness, the net loss would have been $7.7 million. The improvement in the current quarter is mainly due to higher gross margin.
  • Adjusted EBITDA for the third quarter ending December 31, 2023, improved 43% to negative $1.7 million from negative $3.0 million in the third quarter last year, primarily due to higher gross margin contribution from the EaaS business.
  • Net loss was $12.2 million for nine months ending December 31, 2023, compared to a net loss of $13.3 million in the same period last year. Prior year net loss included a $2.6 million benefit from the Paycheck Protection Program loan forgiveness. Without such forgiveness, the net loss would have been $15.9 million.
  • Adjusted EBITDA improved 57% to negative $3.5 million for nine months ended December 31, 2023, compared to negative $8.1 million for the same period last year driven by solid execution in our high-margin EaaS business and ongoing cost reduction efforts, offset by ongoing supply chain expenses, freight and expediting charges.
  • EaaS long-term rental units and re-rental units under contract on December 31, 2023, totaled approximately 40 MW versus 17.7 MW on December 31, 2021, representing 126% growth year-over-year.
  • The Company remains on track to reach its goal of 50 MW under contract by March 31, 2023.
  • Gross product bookings for the third quarter ending December 31, 2023, were $6.9 million, down from $16.3 million in the previous quarter ended September 30, 2023, as bookings slowed in December.
  • Total cash as of December 31, 2023, was $16.6 million, down from $23.8 million as of September 30, 2023. The decrease of $7.2 million was primarily related to the net loss and manufacturing of 4.6 MW of new rental assets for the growing EaaS rental fleet.
  • Net cash used by operating activities was $4.9 million, primarily as a result of net loss funding and $1.7 million in cash used by working capital mainly due to the purchase of long lead-time inventory.
  • The Company's Days Sales Outstanding, or DSO, dropped from 85 days in the quarter ending September 30, 2023, to 66 days in the most recent quarter.
  • To mitigate global supply chain shortages, parts price increases, and higher freight costs, the Company enacted an across-the-board product, spare parts, and FPP service contract price increase on January 30, 2023.

"We project a confluence of positive events over the next 12 months with new price increases taking effect, the Inflation Reduction Act (IRA) taking hold, and new markets like EV charging gaining increasing momentum. Our centerpiece will remain our EaaS rental business and the benefits it brings us including higher margins, predictable revenues, and consistent cash flow while transitioning us away from being only a manufacturing company. Our progress since implementing this major strategic shift is demonstrated in our results as we have effectively marched towards our goal of 50 MW. The numbers show our customers both need and want this solution and that we can provide it, solving both our customer's needs and driving returns for our stockholders," continued Mr. Jamison.

"Our overall financial goals are unchanged, and we are focused on growing revenue and reaching positive Adjusted EBITDA on a sustainable basis. EaaS is a pivotal factor in achieving this goal in conjunction with our ongoing price increases and cost control initiatives. There are several drivers as we look ahead including the IRA (and similar global initiatives), leveraging Capstone's Direct Sales organization, targeting large global customers, and growing our global Distribution network to reach more geographies," concluded Mr. Jamison.

Conference Call Information

Capstone Green Energy will host a conference call today beginning at 1:45 p.m PT/4:45 p.m.ET to discuss the results for its third quarter fiscal year 2023 ended December 31, 2023 as well as key business highlights. Participants can access the live call via webcast as follows:

The replay of the conference call will be available via webcast on the Company's Investor Relations page at www.capstonegreenenergy.com.

About Capstone Green Energy

Capstone Green Energy CGRN is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that ensure life-cycle costs, as well as aftermarket parts. Energy Generation Technologies (EGT) are driven by the Company's industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Solutions (ESS) business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen & Sustainable Products (H2S), Capstone Green Energy offers customers a variety of hydrogen products, including the Company's microturbine energy systems.

To date, Capstone has shipped over 10,000 units to 83 countries and estimates that in FY22, it saved customers over $213 million in annual energy costs and approximately 388,000 tons of carbon. Total savings over the last four years are estimated to be approximately $911 million in energy savings and approximately 1,503,100 tons of carbon savings.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com.

For more information about the Company, please visit www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding expectations relating to the Company's efforts to increase margins, grow revenues and achieve and maintain profitability and other statements regarding the Company's expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as "expect," "anticipate," "believe," "could," "should," "estimate," "intend," "may," "will," "plan," "goal" and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. real results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ability of the Company to increase prices; continuing supply chain issues; the impact of inflation and other factors on the Company's cost structure; the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company's indebtedness; the Company's ability to develop new products, enhance existing products and grow its EaaS business; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company's ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's filings with the Securities and Exchange Commission, including the disclosures under "Risk Factors" in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

(Unaudited)

 

 

 

 

 

 

 

December 31,

 

March 31,

 

2022

 

2022

Assets

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

$

16,618

 

 

$

22,559

 

Accounts receivable, net of allowances of $1,013 at December 31, 2023 and $845 at March 31, 2023

 

15,119

 

 

 

24,665

 

Inventories, net

 

25,602

 

 

 

18,465

 

Prepaid expenses and other current assets

 

7,125

 

 

 

5,519

 

Total current assets

 

64,464

 

 

 

71,208

 

Property, plant, equipment and rental assets, net

 

25,906

 

 

 

18,038

 

Non-current portion of accounts receivable

 

107

 

 

 

1,212

 

Non-current portion of inventories

 

3,055

 

 

 

1,680

 

Other assets

 

11,334

 

 

 

8,635

 

Total assets

$

104,866

 

 

$

100,773

 

Liabilities and Stockholders' Equity

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable and accrued expenses

$

26,087

 

 

$

25,130

 

Accrued salaries and wages

 

1,421

 

 

 

1,147

 

Accrued warranty reserve

 

1,540

 

 

 

1,483

 

Deferred revenue

 

9,699

 

 

 

9,185

 

Current portion of notes payable and lease obligations

 

2,201

 

 

 

675

 

Term note payable

 

50,974

 

 

 

 

Total current liabilities

 

91,922

 

 

 

37,620

 

Deferred revenue - non-current

 

817

 

 

 

981

 

Term note payable - non-current

 

 

 

 

50,949

 

Long-term portion of notes payable and lease obligations

 

11,036

 

 

 

5,809

 

Total liabilities

 

103,775

 

 

 

95,359

 

Commitments and contingencies

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

Preferred stock, $.001 par value; 1,000,000 shares authorized; none issued

 

 

 

 

 

Common stock, $.001 par value; 51,500,000 shares authorized, 18,464,854 shares issued and 18,347,840 shares outstanding at December 31, 2023; 15,398,368 shares issued and 15,296,735 shares outstanding at March 31, 2023

 

18

 

 

 

15

 

Additional paid-in capital

 

954,982

 

 

 

946,969

 

Accumulated deficit

 

(951,770

)

 

 

(939,482

)

Treasury stock, at cost; 117,014 shares at December 31, 2023 and 101,633 shares at March 31, 2023

 

(2,139

)

 

 

(2,088

)

Total stockholders' equity

 

1,091

 

 

 

5,414

 

Total liabilities and stockholders' equity

$

104,866

$

100,773

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Nine Months Ended

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Product and accessories

 

$

10,003

 

 

$

12,329

 

 

$

29,773

 

 

$

29,183

 

Parts, service and rentals

 

 

9,603

 

 

 

8,280

 

 

 

29,260

 

 

 

24,704

 

Total revenue

 

 

19,606

 

 

 

20,609

 

 

 

59,033

 

 

 

53,887

 

Cost of goods sold:

 

 

 

 

 

 

 

 

 

 

 

 

Product and accessories

 

 

11,629

 

 

 

12,689

 

 

 

33,017

 

 

 

30,479

 

Parts, service and rentals

 

 

5,308

 

 

 

5,703

 

 

 

16,465

 

 

 

15,833

 

Total cost of goods sold

 

 

16,937

 

 

 

18,392

 

 

 

49,482

 

 

 

46,312

 

Gross profit

 

 

2,669

 

 

 

2,217

 

 

 

9,551

 

 

 

7,575

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

634

 

 

 

767

 

 

 

1,726

 

 

 

2,637

 

Selling, general and administrative

 

 

5,397

 

 

 

5,293

 

 

 

15,423

 

 

 

17,055

 

Total operating expenses

 

 

6,031

 

 

 

6,060

 

 

 

17,149

 

 

 

19,692

 

Loss from operations

 

 

(3,362

)

 

 

(3,843

)

 

 

(7,598

)

 

 

(12,117

)

Other income (expense)

 

 

5

 

 

 

(21

)

 

 

(43

)

 

 

639

 

Interest income

 

 

43

 

 

 

5

 

 

 

74

 

 

 

16

 

Interest expense

 

 

(1,900

)

 

 

(1,287

)

 

 

(4,618

)

 

 

(3,800

)

Gain (loss) on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

1,950

 

Loss before provision for income taxes

 

 

(5,214

)

 

 

(5,146

)

 

 

(12,185

)

 

 

(13,312

)

Provision for income taxes

 

 

 

 

 

 

 

 

6

 

 

 

10

 

Net loss

 

 

(5,214

)

 

 

(5,146

)

 

 

(12,191

)

 

 

(13,322

)

Less: Deemed dividend on purchase warrant for common shares

 

 

 

 

 

 

 

 

97

 

 

 

 

Net loss attributable to common stockholders

 

$

(5,214

)

 

$

(5,146

)

 

$

(12,288

)

 

$

(13,322

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share attributable to common stockholders—basic and diluted

 

$

(0.28

)

 

$

(0.34

)

 

$

(0.73

)

 

$

(0.92

)

Weighted average shares used to calculate basic and diluted net loss per common share attributable to common stockholders

18,351

15,236

16,824

14,548

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

Reconciliation of Reported Net Loss to EBITDA and Adjusted EBITDA

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

Net loss, as reported

 

$

(5,214

)

 

$

(5,146

)

 

$

(12,191

)

 

$

(13,322

)

Interest expense

 

 

1,900

 

 

 

1,287

 

 

 

4,618

 

 

 

3,800

 

Provision for income taxes

 

 

 

 

 

 

 

 

6

 

 

 

10

 

Depreciation and amortization

 

 

852

 

 

 

493

 

 

 

2,378

 

 

 

1,337

 

EBITDA

 

$

(2,462

)

 

$

(3,366

)

 

$

(5,189

)

 

$

(8,175

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss (gain) on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

(1,950

)

Additional PPP Loan forgiveness

 

 

 

 

 

 

 

 

 

 

 

(660

)

Stock-based compensation and other expense

 

 

232

 

 

 

335

 

 

 

617

 

 

 

1,985

 

Debt compliance costs/legal settlements

 

 

499

 

 

 

 

 

 

1,089

 

 

 

750

 

Adjusted EBITDA

 

$

(1,731

)

 

$

(3,031

)

 

$

(3,483

)

 

$

(8,050

)

To supplement the company's unaudited financial data presented on a generally accepted accounting principles (GAAP) basis, management has presented Adjusted EBITDA, a non-GAAP financial measure. This non-GAAP financial measure is among the indicators management uses as a basis for evaluating the company's financial performance as well as for forecasting future periods. Management establishes performance targets, annual budgets and makes operating decisions based in part upon this metric. Accordingly, disclosure of this non-GAAP financial measure provides investors with the same information that management uses to understand the company's economic performance year-over-year.

EBITDA is defined as net income before interest, provision for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA before gain on debt extinguishment, additional PPP loan forgiveness, stock-based compensation, consulting and legal expenses related to compliance with debt covenants, and legal settlements. Gain on debt extinguishment and additional PPP loan forgiveness relates to the Paycheck Protection Program loan forgiveness. Stock-based compensation and other expense includes expense related to stock issued to employees, directors, vendors, and for extraordinary, non-recurring expenses. Debt compliance costs/legal settlements include costs associated with our debt restructuring and legal settlements.

Adjusted EBITDA is not a measure of the company's liquidity or financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of its liquidity.

While management believes that the non-GAAP financial measure provides useful supplemental information to investors, there are limitations associated with the use of this measure. The measures are not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies due to potential differences in the methods of calculation. Management compensates for these limitations by relying primarily on the company's GAAP results and by using Adjusted EBITDA only supplementally.

Non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States. The company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP.

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Mon, 13 Feb 2023 07:41:00 -0600 en text/html https://www.benzinga.com/pressreleases/23/02/b30888427/capstone-green-energy-announces-third-quarter-fiscal-2023-financial-results
Killexams : NorthWestern Corporation: NorthWestern Reports 2023 Financial Results

Company reports GAAP diluted earnings per share of $3.25 for 2023, announces a $510 million capital plan for 2023 and a 1.6% increase to the quarterly dividend - to $0.64 per share - payable March 31, 2023

BUTTE, Mont. and SIOUX FALLS, S.D., Feb. 16, 2023 (GLOBE NEWSWIRE) -- NorthWestern Corporation d/b/a NorthWestern Energy (Nasdaq: NWE) reported financial results for the year ended December 31, 2023. Net income for the period was $183.0 million, or $3.25 per diluted share, as compared with net income of $186.8 million, or $3.60 per diluted share, for the same period in 2021. This decrease of $3.8 million in net income was primarily due to higher operating expense (including depreciation and property taxes) and interest expense, lower transmission revenues, a less favorable Qualifying Facilities (QF) liability adjustment as compared to the prior year and higher non-recoverable electric supply costs in Montana. These impacts were partly offset by increased revenue from higher electric and natural gas retail volumes due to favorable weather and customer growth and Montana electric and natural gas interim rates (which are subject to refund). The decrease in per share earnings was also affected by equity issuances during 2023, which increased average common shares outstanding. Equity issuances during the year contributed to $0.27 of the $0.35 decrease in per share earnings.

Non-GAAP Adjusted diluted earnings per share for 2023 was $3.18 and slightly below our previously communicated guidance range of $3.20 - $3.35 primarily due to higher non-recoverable Montana supply costs, higher interest expense on our revolving credit facility (driven by the significant delay in the recoverable electric supply balances in conjunction with higher interest rates) and continued operating costs inflation. See "Significant items not contemplated in Guidance" and "Non-GAAP Financial Measures" sections below for additional information on these measures, including a reconciliation of GAAP diluted earnings per share to Non-GAAP adjusted diluted earnings per share.

"2022 was a foundational year for us with the filing of our Montana general rate review; requesting a sustainable level of operating expenses and issuing incremental equity to fund our capital plan while protecting our credit ratings - both necessitating the guide to lower earnings for 2023. Significant items that impacted our performance that were not anticipated include extremely high power prices in Montana that are not fully recovered and an unprecedented increase in interest rates and operating cost inflation. Fourth quarter was a strong quarter but not enough to overcome the unanticipated items," said Brian Bird, President and Chief Executive Officer. "We safely completed a record level of capital work; recognized with a vast improvement in our JD Power Customer Satisfaction Survey scores; exceeded our electric and gas reliability targets; and advanced our Montana general rate review filing - which continues to proceed in a timely, constructive and collaborative manner. We remain focused on recovering the more than one billion dollars of investment made since the last electric and natural gas rate filings and adjusting our power cost recovery mechanism as proposed in this rate review - both are critical to closing the gap on earning our authorized returns. In addition, in January 2023, we announced an agreement with Avista to transfer their ownership in the Colstrip facility at the end of 2025, reducing supply risks for our customers and shareholders."

Additional information regarding this release can be found in the earnings presentation found at: www.northwesternenergy.com/about-us/investors/financials/earnings

Fourth Quarter Financial Results

Net income for the three months ending December 31, 2023 was $66.7 million, or $1.16 per diluted share, as compared with net income of $51.3 million, or $0.96 per diluted share, for the same period in 2021. This increase of $15.4 million in net income was primarily due to increased revenue from higher electric and natural gas retail volumes due to favorable weather and customer growth and Montana electric and natural gas interim rates (which are subject to refund). These favorable impacts were partly offset by higher operating expense (including depreciation and property taxes) and interest expense. The increase in per share earnings for the quarter was partially offset by equity issuances during the year, which increased average common shares outstanding. Equity issuances resulted in $0.09 of earnings per share dilution offsetting a $0.29 increase in earnings per share due to higher net income (a net $0.20 increase in diluted earnings per share for the quarter).

Non-GAAP Adjusted diluted earnings per share for the quarter was $1.13 as compared to $1.04 for the same period last year. See "Significant items not contemplated in Guidance" and "Non-GAAP Financial Measures" sections below for additional information on these measures, including a reconciliation of GAAP diluted earnings per share to Non-GAAP adjusted diluted earnings per share.

Financial Results

Year Ended December 31,
(in millions) 2022 2021
Reconciliation of gross margin to utility margin:
Operating Revenues $ 1,477.8 $ 1,372.3
Less: Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below) 492.0 425.5
Less: Operating and maintenance 221.4 208.3
Less: Property and other taxes 192.5 173.4
Less: Depreciation and depletion 195.0 187.4
Gross Margin 376.9 377.7
Plus: Operating and maintenance 221.4 208.3
Plus: Property and other taxes 192.5 173.4
Plus: Depreciation and depletion 187.5 187.4
Utility Margin(1) $ 985.8 $ 946.8
Year Ended December 31,
(in millions, except per share amounts) 2022 2021
Consolidated Statements of Income
Revenues $ 1,477.8 $ 1,372.3
Fuel, purchased supply and direct transmission expense(2) 492.0 425.5
Utility Margin(1) 985.8 946.8
Operating and maintenance 221.4 208.3
Administrative and general 113.8 101.9
Property and other taxes 192.5 173.4
Depreciation and depletion 195.0 187.5
Operating Expenses 722.7 671.1
Operating income 263.1 275.7
Interest expense, net (100.1 ) (93.7 )
Other income, net 19.4 8.3
Income before income taxes 182.4 190.2
Income tax benefit (expense) 0.6 (3.4 )
Net Income 183.0 186.8
Basic Shares Outstanding 55.8 51.7
Earnings per Share - Basic $ 3.28 $ 3.61
Diluted Shares Outstanding 56.3 51.9
Earnings per Share - Diluted $ 3.25 $ 3.60
Dividends Declared per Common Share $ 2.52 $ 2.48
(1) Utility Margin is a Non-GAAP financial measure.See Reconciliation of Gross Margin to Utility Margin and Non-GAAP Financial Measure sections that follow.
(2) Exclusive of depreciation and depletion.

Reconciliation of Primary Changes from 2021 to 2023 Results

Year Ended December 31, 2023 vs. 2021
Pre-tax
Income
Inc. Tax
(Expense)
Benefit(3)
Net
Income
Diluted Earnings Per Share
(in millions)
Year ended December 31, 2021 $ 190.2 $ (3.4 ) $ 186.8 $ 3.60
Variance in revenue and fuel, purchased supply, and direct transmission expense(1) items impacting net income:
Higher electric retail volumes 14.8 (3.7 ) 11.1 $ 0.21
Montana interim rates (subject to refund) 9.5 (2.4 ) 7.1 $ 0.14
Higher natural gas volumes 8.1 (2.1 ) 6.0 $ 0.12
Lower electric transmission revenue (4.8 ) 1.2 (3.6 ) $ (0.07 )
A less favorable electric QF liability adjustment (2.4 ) 0.6 (1.8 ) $ (0.03 )
Higher non-recoverable Montana electric supply costs ($7.2 million in 2023 as compared to $5.4 million in 2021) (1.8 ) 0.5 (1.3 ) $ (0.03 )
Variance in expense items(2) impacting net income:
Higher operating, maintenance, and admin. expenses (10.9 ) 2.8 (8.1 ) $ (0.16 )
Higher depreciation expense (7.5 ) 1.9 (5.6 ) $ (0.11 )
Higher interest expense (6.4 ) 1.6 (4.8 ) $ (0.09 )
Higher property tax expenses (5.5 ) 1.5 (4.0 ) $ (0.08 )
Other (0.9 ) 2.1 1.2 $ 0.02
Dilution from higher share count $ (0.27 )
Year ended December 31, 2023 $ 182.4 $ 0.6 $ 183.0 $ 3.25
Change in Net Income $ (3.8 ) $ (0.35 )
(1) Exclusive of depreciation and depletion shown separately below
(2) Excluding fuel, purchased supply, and direct transmission expense
(3) Income Tax (Expense) Benefit calculation on reconciling items assumes blended federal plus state effective tax rate of 25.3%.

Significant Trends and Regulation

Regulatory Update

Rate Review Filings - On August 8, 2023, we filed a Montana electric and natural gas rate review filing (2021 test year) under Docket 2023.07.78. A summary of our requests within this rate review is below:

Montana Rate Review ($ in millions)
Electric Natural Gas
Proposed Return on Equity (ROE) 10.60 % 10.60 %
Proposed Equity Ratio 48.02 % 48.02 %
Forecasted 2023 Rate Base $ 2,790 $ 575
Net Rate Base Increase $ 453 $ 143
Requested Revenue Increase (in millions)
Electric Natural Gas
Base Rates $ 91.8 $ 20.2
Power Cost & Credit Mechanism (PCCAM)(1) $ 68.1 n/a
Property Tax (tracker true-up)(1) $ 11.1 $ 2.8
Total $ 171.0 $ 23.0
(1) These items are flow-through costs, which represent approximately 42% of the requested electric and natural gas revenue increase.

Within this rate review filing we requested an increase to the PCCAM base rate (PCCAM Base) of $68.1 million as well as structural revisions to the PCCAM mechanism to provide customers with prices that better reflect the cost of services received. We also proposed to implement a revised electric only pilot for the Fixed Cost Recovery Mechanism (FCRM) beginning July 1, 2023, or alternatively to terminate the FCRM. Our rate review filing also includes proposals for more timely cost recovery beyond the test period, including critical reliability resources, such as the Yellowstone County Generating Station, our Enhanced Wildfire Mitigation plan, and business technology maintenance costs.

Interim Rates - On September 28, 2023, the Montana Public Service Commission (MPSC) approved the recommendations of the MPSC Staff for interim rates, subject to refund, which increased base electric rates $29.4 million, PCCAM Base rates $61.1 million, and base natural gas rates $1.7 million, effective October 1, 2023.

Key dates in the procedural schedule are expected to be as follows:

  • NorthWestern rebuttal testimony and cross-intervenor testimony - March 6, 2023
  • Hearing commences - April 11, 2023

Montana PCCAM - The Montana PCCAM Base of $138.7 million, approved in 2019, no longer reflects an accurate current forecast of our normal fuel and power costs. The MPSC's September 28, 2023 decision approving interim rates, which are subject to refund, in our rate review included an increase to the PCCAM Base of $61.1 million, on an interim basis, effective October 1, 2023. As of December 31, 2023, we have under-collected our total Montana electric supply costs for the current July 2023 through June 2023 PCCAM year by approximately $44.8 million. Absent the interim rate PCCAM Base increase, as of December 31, 2023, our under-collected position would have been approximately $55.9 million. Under-collections are not reflected in customer bills and are not recovered until the subsequent power cost adjustment year, adversely affecting our cash flows and liquidity.

Under the PCCAM, under and over-collection of non-qualifying facility related net costs are allocated 90% to Montana customers and 10% to shareholders. For the twelve months ended December 31, 2023, we deferred $64.8 million of costs to be collected from customers (90% of the costs above base) and recorded a reduction in pre-tax earnings of $7.2 million (10% of the variance). For the twelve months ended December 31, 2021, we deferred $48.7 million of costs for future collection from customers and recorded a reduction in pre-tax earnings of $5.4 million.

Our electric supply from owned and long-term contracted resources is not adequate to meet our peak-demand needs. Because of this, the volatility of market prices for energy on peak-demand days, even if only for a few days in duration, exposes us to potentially significant market purchases that could negatively impact our results of operations and cash flows. See the Electric Resource Planning - Montana section below for how we are working to address this market exposure.

Holding Company Filings - On June 1, 2023, we filed a legal corporate restructuring application (Restructuring Plan) with the state commissions in Montana, South Dakota and Nebraska and the Federal Energy Regulatory Commission (FERC). Currently, our utility businesses are held in the same legal entity. Under the proposed Restructuring Plan, we would legally separate our Montana public utility business from our South Dakota and Nebraska public utility business and establish a holding company to hold the ownership interests of all of the subsidiaries. The purpose of the reorganization is to integrate our organizational structure to be more transparent and in line with the public utility industry.

The Restructuring Plan does not propose and we do not expect any procedural or substantive change in how the state public utility commissions regulate those services. Implementation of the Restructuring Plan is subject to receipt of all regulatory approvals. On July 26, 2023, the Nebraska Public Service Commission approved our Restructuring Plan application. On August 3, 2023, the South Dakota Public Utilities Commission approved the application. On November 29, 2023, the FERC approved the application. NorthWestern reached settlement terms with the intervenors in the Montana proceeding, and the MPSC is reviewing those terms.

Electric Resource Planning - Montana

Yellowstone County 175 MW plant - Construction at the site began in April 2023 with a current schedule that is expected to allow the plant to serve our Montana customers during 2024 with total construction costs of approximately $275.0 million ($154.9 million incurred through December 31, 2023).

On October 21, 2021, the Montana Environmental Information Center and the Sierra Club filed a lawsuit in Montana State Court, against the Montana Department of Environmental Quality and us, alleging that the environmental analysis conducted prior to issuance of the Yellowstone County Generating Station's air quality permit was inadequate. The Montana District Court judge held oral argument on June 20, 2023. We expect a decision in 2023. This lawsuit, as well as additional legal challenges related to the Yellowstone County Generating Station, could delay the project timing. Construction is ongoing while we are awaiting this decision.

Acquisition of Colstrip Interest - On January 16, 2023, we entered into a definitive agreement (the Avista Agreement) with Avista Corporation (Avista) to acquire Avista's 15 percent interest in each of Units 3 and 4 at the Colstrip Generating Station, a coal-fired, base-load electric generation facility located in Colstrip, Montana. The Avista Agreement provides that the purchase price will be $0 and that we will acquire Avista's interest effective December 31, 2025, subject to the satisfaction of the closing conditions contained within the Avista Agreement. Under the terms of this Avista Agreement, we will be responsible for operating costs starting on January 1, 2026; while Avista will retain responsibility for its pre-closing share of environmental and pension liabilities attributed to events or conditions existing prior to the closing of the transaction and for any future decommission and demolition costs associated with the existing facilities that comprise Avista's interest.

The Avista Agreement contains customary representations and warranties, covenants, and indemnification obligations, and the Avista Agreement is subject to customary conditions and approvals, including approval from the FERC. Closing is also conditioned on our ability to enter into a new coal supply agreement for Colstrip by December 31, 2024. Such coal supply agreement must provide a sufficient amount of coal to Colstrip to permit the generation of electric power by the maximum permitted capacity of the interest in Colstrip then held by us during the period from January 1, 2026 through, December 31, 2030.

Either party may terminate the Avista Agreement if any requested regulatory approval is denied or if the closing has not occurred by December 31, 2025 or if any law or order would delay or impair closing. The Avista Agreement may be subject to the exercise by other Colstrip owners of a right of first refusal set forth in the Ownership & Operation (O&O) Agreement. Should any other owners exercise such rights, we intend to exercise our right of first refusal under the O&O Agreement to the fullest extent permitted, and Avista has agreed that it will not exercise its right of first refusal.

The acquisition of an additional interest under this Avista Agreement in 2026 will provide capacity to help us meet our obligation to provide reliable and cost effective power to our customers in Montana, while allowing opportunity for us to identify and plan for newer technologies to provide reliable, affordable and carbon free power through our Integrated Resource Planning process.

Future Integrated Resource Planning - Resource adequacy in the Western third of the U.S. has been declining with the retirement of thermal power plants. Our owned and long-term contracted resources are inadequate to supply the necessary capacity we require to meet our peak-demand loads, which exposes us to large quantities of market purchases at typically high and volatile energy prices. To comply with regulatory resource planning requirements, we expect to submit an integrated resource plan to the MPSC by the end of March 2023.

We remain concerned regarding an overall lack of capacity in the West and our owned and long-term contracted capacity deficit to meet peak-demand loads. The construction of the Yellowstone County Generating Station and acquisition of Avista's Colstrip Units 3 and 4 interests, as discussed above, will reduce our exposure to market purchases at typically high and volatile energy prices.

Electric Resource Supply - South Dakota

Our new Bob Glanzer Generating Station was operational as of May 27, 2023. The 58 MW natural gas plant is located in Huron, South Dakota.

Our electric supply resource plans for South Dakota continue to identify portfolio requirements including potential investments resulting from a completed competitive solicitation process. We filed an updated integrated resource plan on September 6, 2023, which is consistent with the prior plan laying out a retire-and-replace generation asset strategy. A decision on what process to use, and what type of generation technology to add, is expected to be made in the first half of 2023.

Supply Chain and Inflation Challenges

We place significant reliance on our third-party business partners to supply materials, equipment and labor necessary for us to operate our utility and reliably serve current customers and future customers. As a result of current macroeconomic conditions, both nationally and globally, we have recently experienced issues with our supply chain for materials and components used in our operations and capital project construction activities. Issues include higher prices, scarcities/shortages, longer fulfillment times for orders from our suppliers, workforce availability, and wage increases. Should challenges with product and services availability and price inflation continue, we could have difficulty timely completing the operations activities necessary to serve our customers safely and reliably, and/or achieving our capital investment program, which ultimately could result in higher customer utility rates, longer outages, and could have a material adverse impact on our business, financial condition and operations.

Enhanced Wildfire Mitigation

With changing weather conditions which include more significant wind events, drought conditions, and warmer air temperatures, we do not consider the fire season specific to a time of year, but rather a condition that may exist at any time of year. Each year's weather conditions impact these situations differently: early season rains encourage plant growth which fuels fires later in the growing season, and winters with little snow leave dry plant material available for late season fires. The threat is not only in forested areas, where insect infestations and resulting tree death has been severe, but across the entire system including rural areas where grassland fires could be ignited, along with urban areas where extreme weather conditions pose a great risk to heavily populated areas.

Recognizing the risk of significant wildfires in Montana, we continue to proactively seek to mitigate wildfire risk. We have developed an Enhanced Wildfire Mitigation Plan addressing five key areas: situational awareness, operational practices, system preparedness, vegetation management, and public communications and outreach. This plan builds upon several key initiatives that were initiated and executed over the past decade including nearly $80 million spent on vegetation management and hazard tree removal programs and our growing annual investment to harden our transmission and distribution system infrastructure. Because of ever-increasing wildfire risk, our plan includes greater focus on situational awareness to monitor changing environmental conditions, operational practices that are more reactive to changing conditions, increased frequency of patrol and repairs, and more robust system hardening programs that target higher risk segments in our transmission and distribution systems. We included a request for expected costs associated with the mitigation plan in our 2023 Montana rate review.

Earnings Drivers

Gross Margin

Consolidated gross margin in 2023 was $376.9 million as compared with $377.7 million in 2021, a decrease of $0.8 million or 0.2 percent. This decrease was primarily due to lower transmission revenues due to the prior year recognition of deferred transmission revenue and lower prices, a less favorable QF liability adjustment as compared to the prior year, higher operating and maintenance expense, and higher depreciation and depletion, partly offset by higher electric and natural gas retail volumes due to favorable weather and customer growth and the interim rate increase, which is subject to refund.

Year Ended December 31,
(in millions) 2022 2021
Reconciliation of gross margin to utility margin:
Operating Revenues $ 1,477.8 $ 1,372.3
Less: Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below) 492.0 425.5
Less: Operating and maintenance 221.4 208.3
Less: Property and other taxes 192.5 173.4
Less: Depreciation and depletion 195.0 187.4
Gross Margin 376.9 377.7
Plus: Operating and maintenance 221.4 208.3
Plus: Property and other taxes 192.5 173.4
Plus: Depreciation and depletion 187.5 187.4
Utility Margin(1) $ 985.8 $ 946.8
(1) Utility Margin is a Non-GAAP financial measure.

Utility Margin(1)

Year Ended December 31,
2022 2021 Change % Change
(in millions)
Utility Margin
Electric $ 782.1 $ 757.4 $ 24.7 3.3 %
Natural Gas 203.7 189.4 14.3 7.6
Total Utility Margin $ 985.8 $ 946.8 $ 39.0 4.1 %

Consolidated utility margin in 2023 was $985.8 million as compared with $946.8 million in 2021, an increase of $39.0 million, or 4.1 percent. Primary components of the change in utility margin include the following:

(in millions) Utility Margin
2022 vs. 2021
Utility Margin Items Impacting Net Income
Higher electric retail volumes $ 14.8
Montana interim rates (subject to refund) 9.5
Higher natural gas retail volumes 8.1
Lower transmission revenue due to lower transmission rates and the prior year recognition of approximately $4.7 million of deferred interim rates, partly offset by higher demand (4.8 )
A less favorable electric QF liability adjustment (2.4 )
Higher non-recoverable Montana electric supply costs ($7.2 million in 2023 as compared to $5.4 million in 2021) (1.8 )
Reduction of rates from the step down of our Montana gas production assets (0.8 )
Other 2.3
Change in Utility Margin Impacting Net Income 24.9
Utility Margin Items Offset Within Net Income
Higher property taxes recovered in revenue, offset in property tax expense 13.3
Higher operating expenses recovered in revenue, offset in operating and maintenance expense 2.5
Higher gas production taxes recovered in revenue, offset in property and other taxes 0.3
Lower revenue from higher production tax credits, offset in income tax expense (2.0 )
Change in Items Offset Within Net Income 14.1
Increase in Consolidated Utility Margin(1) $ 39.0
(1) Utility Margin is a Non-GAAP financial measure.

Higher electric retail volumes were driven by overall favorable weather in all jurisdictions and customer growth. Higher natural gas retail volumes were driven by favorable weather in all jurisdictions and customer growth. Interim rates in our Montana rate review were effective October 1, 2023, and are subject to refund pending an outcome in the proceeding.

The less favorable adjustment to our electric QF liability (unrecoverable costs associated with PURPA contracts as part of a 2002 stipulation with the MPSC and other parties) reflects a $5.1 million gain in 2023, as compared with a $7.5 million gain for the same period in 2021, due to the combination of:

  • A $1.8 million favorable reduction in costs for the current contract year to record the annual adjustment for real output and pricing as compared with a $2.6 million favorable reduction in costs in the prior period;
  • A favorable adjustment, decreasing the QF liability by $3.3 million, reflecting annual real contract price escalation for the 2023-2023 contract year, which was less than previously estimated, partly offset by an increase in estimated contract prices for the 2023-2024 contract year, which is the last year of the contract that contains variable pricing terms. This is compared to an unfavorable adjustment of $2.1 million in the prior year due to higher real price escalation; and
  • A favorable adjustment in the prior year, decreasing the QF liability by approximately $7.0 million, associated with a one-time clarification in contract term.

Operating, General and Administrative Expenses

(in millions) Year Ended December 31,
2022 2021 Change % Change
Operating Expenses (excluding fuel, purchased supply and direct transmission expense)
Operating and maintenance $ 221.4 $ 208.3 $ 13.1 6.3 %
Administrative and general 113.8 101.9 11.9 11.7
Property and other taxes 192.5 173.4 19.1 11.0
Depreciation and depletion 195.0 187.5 7.5 4.0
Total Operating Expenses (excluding fuel, purchased supply and direct transmission expense) $ 722.7 $ 671.1 $ 51.6 7.7 %

Consolidated operating expenses, excluding fuel, purchased supply and direct transmission expense, were $722.7 million in 2023, as compared with $671.1 million in 2021. Primary components of the change include the following:

(in millions) Operating Expenses
2022 vs. 2021
Operating Expenses (excluding fuel, purchased supply and direct transmission expense) Impacting Net Income
Higher depreciation expense due to plant additions $ 7.5
Higher property tax expense due to an increase in estimated state and local taxes 5.5
Higher insurance expense 2.2
Increase in uncollectible accounts due to the prior year collection of previously written off balances 2.0
Higher cost of materials 1.9
Higher technology implementation and maintenance expenses 1.8
Higher travel expenses 1.6
Higher advertising expenses 1.0
Higher expenses at our electric generation facilities 0.4
Lower labor and benefits due to higher capitalization of labor and benefits costs and lower pension costs, partly offset by higher labor costs(1) (2.1 )
Prior year write off of preliminary construction costs (1.6 )
Other 2.1
Change in Items Impacting Net Income 23.9
Operating Expenses Offset Within Net Income
Higher property and other taxes recovered in trackers, offset in revenue 13.6
Higher pension and other postretirement benefits, offset in other income(1) 12.8
Higher operating expenses recovered in trackers, offset in revenue 2.5
Lower non-employee directors deferred compensation, offset in other income (1.2 )
Change in Items Offset Within Net Income 27.7
Increase in Operating Expenses (excluding fuel, purchased supply and direct transmission expense) $ 51.6
(1) In order to present the total change in labor and benefits, we have included the change in the non-service cost component of our pension and other postretirement benefits, which is recorded within other income on our Condensed Consolidated Statements of Income. This change is offset within this table as it does not affect our operating expenses.

Operating Income

Consolidated operating income in 2023 was $263.1 million as compared with $275.7 million in 2021. This decrease was primarily due to lower transmission revenues due to the prior year recognition of deferred transmission revenue and lower prices, a less favorable QF liability adjustment as compared to the prior year, higher operating and maintenance expense, higher administrative and general expense, higher property tax expense, and higher depreciation and depletion, partly offset by higher electric and natural gas retail volumes due to favorable weather and customer growth, and the interim rate increase, which is subject to refund pending an outcome in the proceeding.

Interest Expense

Consolidated interest expense in 2023 was $100.1 million, as compared with $93.7 million in 2021. This increase was primarily due to higher interest rates on borrowings under our revolving credit facilities partly offset by higher capitalization of allowance for funds used during construction (AFUDC).

Other Income

Consolidated other income in 2023 was $19.4 million, as compared with $8.3 million in 2021. This increase was primarily due to a decrease in the non-service cost component of pension expense and higher capitalization of AFUDC, partly offset by a $2.5 million Montana Community Renewable Energy Projects (CREP) penalty, which relates to litigation we have been involved in associated with our past progress towards meeting obligations to acquire renewable energy projects as mandated by the recently repealed Montana CREP requirement, and a decrease in the value of deferred shares held in trust for non-employee directors deferred compensation.

Income Tax

Consolidated income tax benefit in 2023 was $0.6 million, as compared to an income tax expense of $3.4 million in 2021. Our effective tax rate for the twelve months ended December 31, 2023 was (0.3) percent as compared with 1.8 percent for the same period of 2021.

The following table summarizes the differences between our effective tax rate and the federal statutory rate:

(in millions) Year Ended December 31,
2022 2021
Income Before Income Taxes $ 182.4 $ 190.3
Income tax calculated at federal statutory rate 38.3 21.0 % 40.0 21.0 %
Permanent or flow through adjustments:
State income taxes, net of federal provisions 0.6 0.3 0.4 0.1
Flow-through repairs deductions (22.7 ) (12.4 ) (21.9 ) (11.5 )
Production tax credits (13.2 ) (7.2 ) (11.5 ) (6.1 )
Amortization of excess deferred income taxes (1.7 ) (0.9 ) (0.6 ) (0.3 )
Prior year permanent return to accrual adjustments (1.4 ) (0.8 ) - -
Plant and depreciation of flow through items (0.2 ) (0.1 ) (0.9 ) (0.6 )
Other, net (0.3 ) (0.2 ) (2.1 ) (0.8 )
(38.9 ) (21.3 ) (36.6 ) (19.2 )
Income Tax (Benefit) Expense $ (0.6 ) (0.3 )% $ 3.4 1.8 %

Our effective tax rate typically differs from the federal statutory tax rate primarily due to the regulatory impact of flowing through federal and state tax benefits of repairs deductions, state tax benefit of accelerated tax depreciation deductions (including bonus depreciation when applicable) and production tax credits.

Net Income

Consolidated net income in 2023 was $183.0 million as compared with $186.8 million in 2021, a decrease of $3.8 million. This decrease was primarily due to higher operating costs, higher depreciation expense, higher interest expense, higher property taxes that were not offset in revenues, lower transmission revenues due to the prior year recognition of deferred transmission revenue and lower prices, and a less favorable QF liability adjustment as compared to the prior year, partly offset by higher electric and natural gas retail volumes due to favorable weather and customer growth and higher Montana electric and natural gas interim rate revenue, which is subject to refund.

Liquidity and Capital Resources

As of December 31, 2023, our total net liquidity was approximately $108.5 million, including $8.5 million of cash and $100.0 million of revolving credit facility availability with no letters of credit outstanding. This compares to total net liquidity one year ago at December 31, 2021 of $79.8 million.

Dividend Declared

NorthWestern's Board of Directors declared a quarterly common dividend of $0.64 per share (a 1.6% increase over the prior quarter's dividend) payable March 31, 2023 to common shareholders of record as of March 15, 2023. Over the longer-term, we expect to maintain a dividend payout ratio within a targeted 60-70% range.

Significant items not contemplated in Guidance

We reported GAAP earnings of $3.25 per diluted share for the year-ended December 31, 2023 and $3.60 per diluted share for the same period in 2021. Adjusted Non-GAAP earnings per diluted share for the same periods are $3.18 and $3.51, respectively. A reconciliation of items not factored into our Adjusted Non-GAAP diluted earnings per share are summarized below. The amount below represents a non-GAAP measure that may provide users of this data with additional meaningful information regarding the impact of certain items on our expected earnings. More information on this measure can be found in the "Non-GAAP Financial Measures" section below.

(in millions, except per share amounts)
Actual
Nine Months Ended September 30, 2023 Q4 2023 Full Year 2023
Pre-tax
Income
Net(1)
Income
Diluted
EPS
Pre-tax
Income
Net(1)
Income
Diluted
EPS
Pre-tax
Income
Net(1)
Income
Diluted
EPS(2)
2022 Reported GAAP $ 118.6 $ 116.3 $ 2.09 $ 63.8 $ 66.7 $ 1.16 $ 182.4 $ 183.0 $ 3.25
Non-GAAP Adjustments:
Remove impact of favorable weather(1) (6.6 ) (4.9 ) (0.08 ) (2.3 ) (1.7 ) (0.03 ) (8.9 ) (6.6 ) (0.11 )
Remove impact of CREP penalty (non-tax deductible) 2.5 2.5 0.04 - - - 2.5 2.5 0.04
2022 Adj. Non-GAAP $ 114.5 $ 113.9 $ 2.05 $ 61.5 $ 65.0 $ 1.13 $ 176.0 $ 178.9 $ 3.18
Nine Months Ended September 30, 2021 Q4 2021 Full Year 2021
Pre-tax
Income
Net(1)
Income
Diluted
EPS
Pre-tax
Income
Net(1)
Income
Diluted
EPS
Pre-tax
Income
Net(1)
Income
Diluted
EPS(2)
2021 Reported GAAP $ 139.4 $ 135.5 $ 2.64 $ 50.9 $ 51.3 $ 0.96 $ 190.2 $ 186.8 $ 3.60
Non-GAAP Adjustments:
QF Liability - adjustment associated with one-time clarification of contract term (7.4 ) (5.5 ) (0.11 ) 0.5 0.4 0.01 (6.9 ) (5.2 ) (0.10 )
Remove impact of (favorable) unfavorable weather (4.1 ) (3.1 ) (0.06 ) 5.2 3.9 0.07 1.1 0.8 0.01
2021 Adj. Non-GAAP $ 127.9 $ 126.9 $ 2.47 $ 56.6 $ 55.6 $ 1.04 $ 184.4 $ 182.4 $ 3.51
(1) Income tax benefit or expense calculation on reconciling items assumes blended federal plus state effective tax rate of 25.3%.
(2) Due to changes in the quarterly diluted share count, full year EPS may be +/- $0.01 different than the sum of the quarters.

Revision to non-GAAP weather normalization method - Up to, and including, Q3 2023, our weather normalizing adjustment included the estimated impact from four customer classes; commercial electric, residential electric, commercial natural gas and residential natural gas. Due to a statistically low correlation coefficient of our commercial electric customers' usage patterns, we will no longer include a weather normalizing adjustment for this customer class. As a result, the weather adjustment in the fourth quarter reflects the reversal of the first three quarters of commercial electric customer impact (eliminating the commercial electric impact for the year). See table that follows.

(millions) 2022 Pretax (Favorable) Unfavorable Impact
Customer Class Q1 Q2 Q3 Q1-Q3 Q4 2022
Commercial Electric (reversed in Q4) $ 0.1 $ (0.1 ) $ (2.1 ) $ (2.1 ) $ 2.1 $ -
Residential Electric 0.1 (0.7 ) (3.2 ) (3.8 ) (1.8 ) (5.6 )
Commercial Natural Gas 0.1 (0.6 ) 0.3 (0.2 ) (0.7 ) (0.9 )
Residential Natural Gas 0.3 (1.6 ) 0.8 (0.5 ) (1.9 ) (2.4 )
Non-GAAP adjustment for unfavorable (favorable) weather $ 0.6 $ (3.0 ) $ (4.2 ) $ (6.6 ) $ (2.3 ) $ (8.9 )
2021 Pretax (Favorable) Unfavorable Impact
Customer Class Q1 Q2 Q3 Q1-Q3 Q4 2022
Commercial Electric $ 0.1 $ (0.9 ) $ (1.6 ) $ (2.4 ) $ 0.5 $ (1.9 )
Residential Electric 0.3 (1.3 ) (2.1 ) (3.1 ) 1.4 (1.7 )
Commercial Natural Gas 0.3 0.1 0.1 0.5 1.0 1.5
Residential Natural Gas 0.6 0.1 0.2 0.9 2.3 3.2
Non-GAAP adjustment for unfavorable (favorable) weather $ 1.3 $ (2.0 ) $ (3.4 ) $ (4.1 ) $ 5.2 $ 1.1


2023 Earnings Guidance and Capital Expenditures Forecast

NorthWestern expects to issue 2023 earnings guidance following an outcome in the currently pending Montana general rate review. Our estimated capital expenditures for 2023 are $510 million. Over the next five years (2023 to 2027) we estimate investment of $2.4 billion in our electric and natural gas transmission and distribution and electric generation infrastructure.

Company Hosting Investor Webinar

NorthWestern will host an investor webinar on Friday, February 17, 2023, at 3:30 p.m. Eastern time to review its financial results for the year ending December 31, 2023.

To register for the webinar, please visit www.northwesternenergy.com/earnings-registration. Please go to the site at least 15 minutes in advance of the webinar to register. An archived webcast will be available shortly after the event and remain active for one year.

NorthWestern Energy - Delivering a Bright Future

NorthWestern Corporation, doing business as NorthWestern Energy, provides essential energy infrastructure and valuable services that enrich lives and empower communities while serving as long-term partners to our customers and communities. We work to deliver safe, reliable, and innovative energy solutions that create value for customers, communities, employees, and investors. We do this by providing low-cost and reliable service performed by highly-adaptable and skilled employees. We provide electricity and / or natural gas to approximately 764,200 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. We have provided service in South Dakota and Nebraska since 1923 and in Montana since 2002.

Non-GAAP Financial Measures

This press release includes financial information prepared in accordance with GAAP, as well as other financial measures, such as Utility Margin, Adjusted Non-GAAP pretax income, Adjusted Non-GAAP net income and Adjusted Non-GAAP Diluted EPS that are considered "non-GAAP financial measures." Generally, a non-GAAP financial measure is a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

We define Utility Margin as Operating Revenues less fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion) as presented in our Consolidated Statements of Income. This measure differs from the GAAP definition of Gross Margin due to the exclusion of Operating and maintenance, Property and other taxes, and Depreciation and depletion expenses, which are presented separately in our Consolidated Statements of Income. A reconciliation of Utility Margin to Gross Margin, the most directly comparable GAAP measure, is included in the press release above.

Management believes that Utility Margin provides a useful measure for investors and other financial statement users to analyze our financial performance in that it excludes the effect on total revenues caused by volatility in energy costs and associated regulatory mechanisms. This information is intended to enhance an investor's overall understanding of results. Under our various state regulatory mechanisms, as detailed below, our supply costs are generally collected from customers. In addition, Utility Margin is used by us to determine whether we are collecting the appropriate amount of energy costs from customers to allow recovery of operating costs, as well as to analyze how changes in loads (due to weather, economic or other conditions), rates and other factors impact our results of operations. Our Utility Margin measure may not be comparable to that of other companies' presentations or more useful than the GAAP information provided elsewhere in this report.

Management also believes the presentation of Adjusted Non-GAAP pre-tax income, Adjusted Non-GAAP net income and Adjusted Non-GAAP Diluted EPS is more representative of normal earnings than GAAP pre-tax income, net income and EPS due to the exclusion (or inclusion) of certain impacts that are not reflective of ongoing earnings. The presentation of these non-GAAP measures is intended to supplement investors' understanding of our financial performance and not to replace other GAAP measures as an indicator of real operating performance. Our measures may not be comparable to other companies' similarly titled measures.

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, the information under "Significant Items Not Contemplated in Earnings." Forward-looking statements involve risks and uncertainties, which could cause real results or outcomes to differ materially from those expressed. We caution that while we make such statements in good faith and believe such statements are based on reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records and other data available from third parties, we cannot assure you that we will achieve our projections. Factors that may cause such differences include, but are not limited to:

  • adverse determinations by regulators, as well as potential adverse federal, state, or local legislation or regulation, including costs of compliance with existing and future environmental requirements, could have a material effect on our liquidity, results of operations and financial condition;
  • the impact of extraordinary external events and natural disasters, such as a wide-spread or global pandemic, geopolitical events, earthquake, flood, drought, lightning, weather, wind, and fire, could have a material effect on our liquidity, results of operations and financial condition;
  • acts of terrorism, cybersecurity attacks, data security breaches, or other malicious acts that cause damage to our generation, transmission, or distribution facilities, information technology systems, or result in the release of confidential customer, employee, or Company information;
  • supply chain constraints, recent high levels of inflation for product, services and labor costs, and their impact on capital expenditures, operating activities, and/or our ability to safely and reliably serve our customers;
  • changes in availability of trade credit, creditworthiness of counterparties, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments, may reduce revenues or may increase operating costs, each of which could adversely affect our liquidity and results of operations;
  • unscheduled generation outages or forced reductions in output, maintenance or repairs, which may reduce revenues and increase operating costs or may require additional capital expenditures or other increased operating costs; and
  • adverse changes in general economic and competitive conditions in the U.S. financial markets and in our service territories.

Our 2023 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
Travis Meyer (605) 978-2967
travis.meyer@northwestern.com
Media Contact:
Jo Dee Black (866) 622-8081
jodee.black@northwestern.com

Thu, 16 Feb 2023 23:32:00 -0600 de text/html https://www.finanznachrichten.de/nachrichten-2023-02/58342129-northwestern-corporation-northwestern-reports-2022-financial-results-399.htm
Killexams : SEE Upcoming Eventwith the Financial Community New York City Accelerating to High Quality Growth Company

The MarketWatch News Department was not involved in the creation of this content.

CHARLOTTE, N.C., (BUSINESS WIRE) -- SEE (Sealed Air NYSE: SEE) will participate in the following event:

BMO Non-Deal Roadshow February 15, 2023, New York City
Ted Doheny, President & CEO
Susan Yang, VP SEE Automation Finance Leader & Treasurer
Joel Tiss, Director of Investor Acquisition

Ted Doheny, President & CEO, Susan Yang, VP SEE Automation Finance Leader & Treasurer and Joel Tiss, Director of Investor Acquisition will share how SEE is becoming a world-class company partnering with customers on automation, digital and sustainability packaging solutions. They will discuss how SEE is accelerating to a high-quality growth company, the launch of Reinvent 2.0 and the recent acquisition of Liquibox.

About SEE
Sealed Air (NYSE: SEE) is in business to protect, to solve critical packaging challenges, and to make our world better than we find it. Our automated packaging solutions promote a safer, more resilient, and less wasteful global food, fluids and liquids supply chain, enable e-commerce, and protect goods in transit from damage.

Our globally recognized solution brands include CRYOVAC® food packaging, LIQUIBOX fluids and liquids systems, SEALED AIR® protective packaging, AUTOBAG® automated packaging systems, BUBBLE WRAP® packaging, SEEAutomation and prismiq Digital packaging and printing.

Our partnership with customers creates value through sustainable, automated, and digital packaging solutions, leveraging our industry-leading expertise in materials, automation systems, engineering and technology.

Our SEE Net Positive Circular Ecosystem is leading the packaging industry in creating a more environmentally, socially, and economically sustainable future. We have pledged to design or advance 100% of our packaging materials to be recyclable or reusable by 2025, with a bolder goal to reach net-zero carbon emissions in our global operations by 2040. Our Global Impact Report highlights how we are shaping the future of the packaging industry. We are committed to a diverse workforce and caring, inclusive culture through our 2025 Diversity, Equity and Inclusion pledge.

SEE generated $5.6 billion in sales in 2023 and has approximately 16,300 employees (not including Liquibox employees) who serve customers in 120 countries/territories. To learn more, visit sealedair.com.

Website Information
We routinely post important information for investors on our website, sealedair.com, in the Investors section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 concerning our business, consolidated financial condition, results of operations and cash flows. Forward-looking statements are subject to risks and uncertainties, many of which are outside our control, which could cause real results to differ materially from these statements. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements can be identified by such words as “anticipate,” “believe,” “plan,” “assume,” “could,” “should,” “estimate,” “expect,” “intend,” “potential,” “seek,” “predict,” “may,” “will” and similar references to future periods. All statements other than statements of historical facts included in this press release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results, expectations regarding the results of restructuring and other programs, expectations regarding future impacts resulting from the Liquibox acquisition, anticipated levels of capital expenditures and expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings.

The following are important factors that we believe could cause real results to differ materially from those in our forward-looking statements: global economic and political conditions, including recessionary and inflationary pressures, currency translation and devaluation effects, changes in raw material pricing and availability, competitive conditions, the success of new product offerings, failure to realize synergies and other financial benefits from the acquisition of Liquibox within the expected time frames, greater than expected costs or difficulties related to the integration of Liquibox, consumer preferences, the effects of animal and food-related health issues, the effects of epidemics or pandemics, including the Coronavirus Disease 2019, negative impacts related to the ongoing conflicts between Russia and Ukraine and related sanctions, export restrictions and other counteractions thereto, changes in energy costs, environmental matters, the success of our restructuring activities, the success of our merger, acquisition and equity investment strategies, the success of our financial growth, profitability, cash generation and manufacturing strategies and our cost reduction and productivity efforts, changes in our credit ratings, the tax benefit associated with the Settlement agreement (as defined in our 2021 Annual Report on Form 10-K), regulatory actions and legal matters and the other information referenced in the “Risk Factors” section appearing in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement made by us is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230213005663/en/

SOURCE: SEE

Investors
Brian Sullivan
Brian.c.sullivan@sealedair.com
704.503.8841 Media
Christina Griffin
Christina.griffin@sealedair.com
704.430.5742

COMTEX_424441177/2456/2023-02-13T23:05:17

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Mon, 13 Feb 2023 13:05:00 -0600 en-US text/html https://www.marketwatch.com/press-release/see-upcoming-eventwith-the-financial-community-new-york-city-accelerating-to-high-quality-growth-company-2023-02-13
Killexams : Summit Industrial Income REIT Reports Fourth Quarter 2023 Financial Results

TORONTO, Feb. 15, 2023 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") SMU announced today continued growth and strong operating performance for the three months and year ended December 31, 2023.

2022 HIGHLIGHTS

FINANCIAL:

  • Revenue from investment properties increased by 15.8% in Q4 2023 and 15.4% in 2023.
  • Net rental income increased by 19.3% in Q4 2023 and 15.4% in 2023.
  • FFO1 increased 20.6% to $37.7 million ($0.199 per Unit) in Q4 2023 and 18.5% to $142.3 million ($0.761 per Unit), excluding the non-recurring secured mortgage prepayment costs incurred in 2021.
  • Completed a bought-deal equity offering of REIT Units for net proceeds of $220.2 million on March 31, 2023.
  • On April 19, 2023, the REIT increased the total size of its Green Unsecured Development Credit Facility by $100 million to $200 million ($150 million green tranche and $50 million conventional tranche).
  • On May 4, 2023, the REIT increased the total size of its $300 million unsecured revolving credit facility by $100 million to $400 million and extended the term by one year to March 23, 2025.
  • In May 2023, the REIT entered into $169.7 million of new 10-year secured term mortgage financing at an effective interest rate of 4.43%, a significant portion of which is interest-only.
  • Repaid $86.2 million of secured term mortgages at maturity during 2023.
  • Subsequent to year end, the REIT repaid an additional $17.9 million of secured term mortgages at maturity.
  • On September 14, 2023, DBRS Limited upgraded the REIT's issuer rating and senior unsecured debentures rating to BBB with positive trends.
  • Approximately $1.7 billion of available liquidity1 and $4.1 billion of unencumbered assets at December 31, 2023.

OPERATIONS:

  • Near-full occupancy at 99.2% at December 31, 2023 with an average lease term of 5.4 years and 3.2% average annual contractual rent steps.
  • Same property NOI1 increased 6.2% in Q4 2023 and 5.7% in 2023, with Ontario and Quebec each contributing 8.4% and 6.5%, respectively, for Q4 2023 and 9.1% and 4.5%, respectively, in 2023
  • Completed over 2.6 million sq. ft. of lease renewals and new lease deals year-to-date generating a 53.2% overall increase in rents, including 90.6% in Ontario and 54.0% in Quebec (excluding contractual renewals).
  • Completed construction on approximately 928,000 sq. ft. of GLA in 2023 and transferred to income-producing properties.

____________________

1  Non-GAAP measure. Refer to "Non-GAAP Measures" section in this press release for further information.


PROPERTY PORTFOLIO:

  • Acquired six income-producing properties during the year for a total of 699,000 sq. ft. for a purchase price of $196.0 million.
  • Acquired interests in three development properties during the year, totalling 87 acres for a purchase price of $114.2 million, with the potential to add 1.7 million sq. ft. of GLA to the REIT's portfolio.
  • Acquired the remaining 50% interest in one industrial property under development that was nearing completion in Guelph, Ontario totalling 91,782 sq. ft. from the REIT's joint venture partner for a total acquisition cost of $12.8 million.
  • Acquired a 12-acre parcel of land with the potential to develop approximately 180,000 sq. ft. of industrial space, located at the intersection of Appleby Line and Highway 407 in Burlington, Ontario, for a purchase price of $27.5 million.
  • Disposed of a 32,000 sq. ft. non-core investment property for gross proceeds of $4.2 million.

OTHER:

  • On November 7, 2023, the REIT announced that it had entered into an agreement with GIC and Dream Industrial REIT, pursuant to which a joint venture between GIC and Dream Industrial REIT will acquire all of the assets and assume all of the liabilities of the REIT in an all-cash transaction, and the REIT will pay a special distribution and redeem all of its units for $23.50 per unit in cash. On February 7, 2023, the REIT announced that it had received approval under the Investment Canada Act in respect of the Transaction that was approved by the Ontario Superior Court (Commercial List) on December 20, 2023, and anticipates that closing of the Transaction will occur on or about February 17, 2023, subject to the satisfaction or waiver of all of the remaining customary closing conditions, all of which have been or are expected to be satisfied by or on such date.

This press release should be read in conjunction with Summit's Consolidated Financial Statements for the years ended December 31, 2023 and 2021, and Management's Discussion and Analysis for the year ended December 31, 2023, which are available on the REIT's website at www.summitiireit.com and on SEDAR at www.sedar.com.

FINANCIAL AND OPERATING HIGHLIGHTS

Summit's key financial and operating metrics for the three months and year ended December 31, 2023 are as follows:






Annual

(in thousands of Canadian dollars, except per Unit amounts)

Q4 2023


Q4 2021


2022


2021


2020











Portfolio Performance










Occupancy

99.2 %


99.2 %


99.2 %


99.2 %


98.0 %

Revenue from investment properties

$         65,905


$         56,911


$       250,328


$       216,971


$       190,906

Property operating expenses

$         16,675


$         15,649


$         64,019


$         55,544


$         50,796

Net rental income

$         49,230


$         41,262


$       186,309


$       161,427


$       140,110

Finance costs(2)

$         10,404


$           8,948


$         39,403


$         57,210


$         41,535

Fair value adjustments to investment properties

$       427,420


$         97,967


$       686,604


$    1,031,385


$         90,762

Net income

$       457,663


$       128,240


$       822,056


$    1,131,994


$       206,502











Operating Performance










FFO(1)(2)

$         37,724


$         31,277


$       142,268


$       100,040


$         94,389

FFO per Unit(1)(2)

$           0.199


$           0.178


$           0.761


$           0.587


$           0.651

Net income per Unit - basic

$           2.409


$           0.729


$           4.399


$           6.644


$           1.423

Same property NOI(1)

$         41,556


$         39,115


$       153,526


$       145,305


$         89,435

Same property NOI(1) growth

6.2 %


4.1 %


5.7 %


4.8 %


3.8 %











Distributions










Distributions declared to Unitholders(3)

$           9,195


$         24,841


$         89,635


$         95,024


$         79,252

Distributions per Unit declared to Unitholders(3)

$           0.048


$           0.141


$           0.478


$           0.556


$           0.540











FFO payout ratio without DRIP benefit(1)(2)(3)

24.4 %


79.3 %


62.8 %


94.7 %


83.0 %

FFO payout ratio with DRIP benefit(1)(2)(3)

48.7 %


60.3 %


60.2 %


73.8 %


67.6 %











Weighted average Units outstanding (in thousands)

189,977


175,909


186,880


170,390


145,089











Liquidity and Leverage










Total assets

$    5,718,120


$    4,542,994


$    5,718,120


$    4,542,994


$    3,172,213

Total unencumbered assets

$    4,124,541


$    2,996,333


$    4,124,541


$    2,996,333


$    1,054,481

Total debt

$    1,437,200


$    1,293,573


$    1,437,200


$    1,293,573


$    1,186,572











Weighted average effective interest rate

2.93 %


2.51 %


2.93 %


2.51 %


2.99 %

Weighted average term to maturity (years)

4.5


4.7


4.5


4.7


4.5











Leverage(1)

25.1 %


28.5 %


25.1 %


28.5 %


37.4 %

Interest coverage(1)

4.5x


4.3x


4.5x


4.1x


3.2x

Debt service coverage(1)

3.6x


3.3x


3.5x


2.9x


2.1x

Debt-to-adjusted EBITDA(1)

7.8x


8.3x


8.2x


8.5x


8.8x











DBRS Issuer Rating

BBB


BBB (low)


BBB


BBB (low)


BBB (low)











Income-Producing Investment Properties










Number of properties acquired


2


6


5


23

Number of properties disposed


1


1


7


2

Total number of properties

165


156


165


156


156

Total GLA

22,252


20,651


22,252


20,651


19,360





















(1) Non-GAAP Measure. Refer to "Non-GAAP Measures" section in this press release for further information.



(2) Finance costs and FFO includes strategic non-recurring mortgage prepayment costs of $20.0 million ($0.118 per Unit) for 2021. Excluding the prepayment costs, FFO per Unit was $0.705 per Unit for 2021. FFO payout ratio without DRIP benefit excluding the prepayment costs was 78.9% (61.5% including DRIP benefit) for 2021.

(3) Concurrent with the announcement of the Transaction on November 7, 2023, the REIT suspended its normal monthly distributions through closing, effective following the payment of the previously-declared monthly distribution for October 2023 that was paid on November 15, 2023.


PORTFOLIO GROWTH
During 2023, the REIT acquired six income-producing properties totalling 699,000 sq. ft. for a purchase price of $196.0 million and a 12-acre parcel of land with the potential to develop approximately 180,000 sq. ft. of industrial space, located at the intersection of Appleby Line and Highway 407 in Burlington, Ontario, for a purchase price of $27.5 million. The REIT also acquired a 50% interest in three development sites during the year through joint venture partnerships, totalling 87 acres. The development sites were acquired by the joint ventures for an aggregate purchase price of $114.2 million with the potential to add 1.7 million sq. ft. of GLA to the REIT's portfolio, as well as the remaining 50% interest in one industrial property under development that was nearing completion in Guelph, Ontario totalling 91,782 sq. ft. from the REIT's joint venture partner for a total acquisition cost of $12.8 million.

During 2023, the REIT completed the development of approximately 928,000 sq. ft. of industrial properties in Ontario and Quebec and transferred them to income-producing properties. These properties were all pre-leased and included 65 & 75 Quarterman Road and 54 Phelan Court in Guelph, 4225 North Service Road in Burlington,  2445 Surveyor Road in Mississauga, as well as the 7800 Trans-Canada Highway expansion premises in Montreal, Quebec.

At December 31, 2023, the REIT's portfolio totaled 165 properties aggregating 22.3 million sq. ft., with an additional 12 buildings under development aggregating 2.6 million sq. ft. of potential GLA, for a total net book value of approximately $5.5 billion. During Q4 2023 and 2023, the REIT recognized fair value gains on its investment properties of $427.4 million and $686.6 million, respectively.

CONTINUED STRONG OPERATING PERFORMANCE
Revenue from investment properties for Q4 2023 and 2023 rose 15.8% and 15.4% compared to the same prior year periods due primarily to acquisitions completed over the prior twelve months, continuing strong occupancy and higher overall rental rates on leasing activities. Occupancy remained strong at December 31, 2023 at 99.2% with an average lease term of 5.4 years and 3.2% annual contractual rent steps.

Net rental income for Q4 2023 and 2023 increased 19.3% and 15.4% compared to the same prior year periods due primarily to continuing strong occupancy, higher overall rental rates on leasing activities and acquisitions completed over the prior twelve months.

FFO1 for Q4 2023 increased 20.6% to $37.7 million ($0.199 per Unit). Excluding the non-recurring secured mortgage prepayment costs of $20.0 million ($0.118 per Unit) incurred in 2021, FFO1 increased 18.5% in 2023. Excluding the mortgage prepayment costs discussed above, FFO per Unit1 for 2023 increased 8.0% compared to 2021 despite 9.7% increase in Units outstanding and further balance sheet deleveraging that took place in 2023 resulting in leverage1 of 25.1% at December 31, 2023. The REIT's FFO payout ratio1 for Q4 2023 and 2023 was 24.4% and 62.8%, respectively, excluding the benefit of the REIT's DRIP (48.7% and 60.2%, respectively, including the benefit of the REIT's DRIP). The REIT's FFO payout ratio1 for Q4 2023 and 2023 was impacted by the suspension of monthly distribution, concurrent with the announcement of the Transaction in November 2023.

Same property NOI1 rose 6.2% for Q4 2023 (5.7% for 2023), including a 8.4% increase in Ontario and 6.5% increase in Quebec (9.1% and 4.5% in Ontario and Quebec, respectively, for 2023). Growth in same property NOI1 in the fourth quarter of 2023 was driven primarily by rental rate growth from 2021 and 2023 lease renewals and new lease deals, which generated an average of 53.8% and 29.5% increase over expiring rents in Ontario and Quebec, respectively, in 2021, and 88.4% and 37.1% increase over expiring rents in Ontario and Quebec, respectively, in 2023, in addition to an increase in other income in Ontario in 2023. Growth in same property NOI1 for 2023 was partially muted by lower bad debt recoveries ($0.1 million in 2023 and $1.1 million in 2021). Same property NOI1 for Q4 2023 represented approximately 84.4% of total portfolio NOI1 and 87.9% of total GLA at December 31, 2023 (82.4% of total portfolio NOI and 82.9% of total GLA for 2023).

STRATEGIC LEASING PROGRAM
The REIT completed over 2.6 million sq. ft. of lease renewals and new lease deals in 2023, generating an average increase in monthly rents of 53.2% over the expiring rent with a significant 90.6% increase over expiring rents in Ontario, 54.0% in Quebec and 6.5% in Alberta (excluding contractual renewals).

The REIT maintained near-full 99.2% occupancy in Q4 2023 with limited to no downtime, while also taking advantage of significantly higher market rents on turnover of the space, with some re-leasing at rental rates in excess of 100% of the expiring rent.

STRONG BALANCE SHEET AND LIQUIDITY
Total assets increased to $5.7 billion at December 31, 2023, up from $4.5 billion at December 31, 2021 due primarily to property acquisitions during the period and fair value gains on investment properties. Total debt was $1.4 billion at December 31, 2023 compared to $1.3 billion at December 31, 2021. At December 31, 2023, the REIT's unsecured debt represented 70% of total debt outstanding with approximately $4.1 billion in unencumbered assets.

On April 19, 2023, the REIT amended its green unsecured development credit facility to increase the commitment by $100 million. Following the amendment, the total credit facility size is $200 million, including a $150 million green tranche and a $50 million conventional tranche On May 4, 2023, the REIT amended its unsecured revolving credit facility to increase the commitment by $100 million to $400 million and to extend the term by one year to March 23, 2025. At December 31, 2023, $29.0 million was drawn on the unsecured revolving credit facility and $51.0 million was drawn from the green unsecured development credit facility.

During 2023, the REIT repaid $86.2 million in maturing secured term mortgages that carried a weighted average interest rate of 3.09%. Subsequent to year end, the REIT repaid an additional $17.9 million of secured term mortgages at maturity. The REIT also entered into $169.7 million of new 10-year secured term mortgage financing at an effective interest rate of 4.43%, a significant portion of which is interest-only.

The REIT's debt metrics remained strong during the fourth quarter of 2023. At December 31, 2023, the REIT's leverage ratio1 was 25.1% compared to 28.5% at December 31, 2021. Debt service coverage1, and interest coverage1 were 3.6x and 4.5x, respectively, for Q4 2023 compared to 3.3x and 4.3x, respectively, for the same prior year periods.

Debt-to-adjusted EBITDA was 7.8x and 8.2x for the three months and year ended December 31, 2023, respectively, a decrease from 8.3x and 8.5x for the same prior year periods.

At December 31, 2023, the REIT's liquidity position remained strong at approximately $1.7 billion of available liquidity1 including cash, available borrowing capacity on its credit facilities, and potential for new financing that could be placed on a portion of its $4.1 billion of unencumbered assets.

ARRANGEMENT AGREEMENT TO ACQUIRE THE REIT
On November 7, 2023, the REIT announced that it had entered into an agreement (the "Arrangement Agreement") with GIC and Dream Industrial REIT, pursuant to which a joint venture (the "Joint Venture") between GIC and Dream Industrial REIT would acquire all of the assets and assume all of the liabilities of the REIT in an all-cash transaction via a plan of arrangement under the Canada Business Corporations Act, and the REIT will pay a special distribution and redeem all of its units for $23.50 per unit in cash (the "Transaction"). The Arrangement Agreement contains customary terms and conditions, including deal protections.

On February 7, 2023, the REIT announced receipt of approval under the Investment Canada Act in respect of the Transaction that was approved by the Ontario Superior Court of Justice (Commercial List) on December 20, 2023. The REIT anticipates that closing of the Transaction will occur on or about February 17, 2023, subject to the satisfaction or waiver of all of the remaining customary closing conditions, all of which have been or are expected to be satisfied by or on such date. Following completion of the Transaction, the REIT's Units will be delisted from the TSX.

As a result of the Transaction, Summit will not host a conference call and webcast to discuss the financial results and operations for the fourth quarter.

NON-GAAP MEASURES
The REIT prepares and releases consolidated financial statements prepared in accordance with IFRS (GAAP). In this release, the REIT discloses and discusses certain non-GAAP measures, including FFO, FFO per Unit, FFO payout ratio, NOI, same property NOI, leverage ratio, interest coverage ratio, debt service coverage ratio, debt-to-adjusted EBITDA and available liquidity. The non-GAAP measures are further defined and discussed in Appendix A | Non-GAAP Measures in the MD&A for the year ended December 31, 2023 and filed on SEDAR (www.sedar.com), which is incorporated by reference and should be read in conjunction with this release. Since these measures are not determined by IFRS, such measures may not be comparable to similar measures reported by other issuers. The REIT has presented such non-GAAP measures as management believes the measures are a relevant measure of the ability of the REIT to earn and distribute cash returns to Unitholders and to evaluate the REIT's performance.  These non-GAAP measures should not be construed as alternatives to net income or cash flow from operating activities determined in accordance with IFRS as an indicator of the REIT's performance.

Reconciliation of Non-GAAP Measures
The following tables reconcile the REIT's non-GAAP measures to the most comparable IFRS measures for the three months and year ended December 31, 2023.

Available Liquidity
The REIT's available liquidity is calculated as follows:


December 31

December 31


2022

2021




Unencumbered assets

$        4,124,541

$        2,996,333

Assets required to be reserved under unsecured debt agreements:



Senior unsecured debentures(1)

(1,202,500)

(1,202,500)

Unsecured revolving credit facility(2)

(520,000)

(390,000)

Green Unsecured Development Credit Facility(3)

(260,000)

(130,000)

Unencumbered assets available to be encumbered

2,142,041

1,273,833

Borrowing Capacity on Unencumbered Assets(4)

$        1,178,122

$           700,608




Cash

47,732

16,052

Undrawn portion of unsecured revolving credit facility(5)

370,472

300,000

Undrawn portion of Green Unsecured Development Credit Facility(5)

135,382

90,000

Borrowing capacity on unencumbered assets (per above)

1,178,122

700,608

Available Liquidity

$        1,731,709

$        1,106,660




(1) Calculated as 1.3 times $925 million in aggregate senior unsecured debentures outstanding.

(2) Calculated as 1.3 times $400 million committed amount of unsecured revolving credit facility (December 31, 2021 - $300 million).

(3) Calculated as 1.3 times $200 million committed amount of Green Unsecured Development Credit Facility (December 31, 2021 - $100 million).

(4) Borrowing capacity is calculated as unencumbered assets available to be encumbered multiplied by 55% loan-to-value.

(5) Includes amounts drawn and letters of credit issued under the credit facility agreements.


FFO

The REIT's FFO, FFO per Unit and FFO payout ratio are calculated as follows:




Q4 2023

Q4 2021


Q4 2023

Q4 2021

Annual

Annual






Net income

$        457,663

$        128,240

$        822,056

$     1,131,994

Adjustments:





Free rent amortization

391

311

1,428

1,231

Amortization of other assets

96

91

466

326

Transaction costs

4,748

4,748

Fair value adjustment to deferred unit compensation

2,246

602

174

2,565

Fair value adjustment to loans receivable

(4,691)

Fair value adjustment to investment properties

(427,420)

(97,967)

(686,604)

(1,031,385)

FFO(1)

$          37,724

$          31,277

$        142,268

$        100,040






FFO per Unit(1)

$            0.199

$            0.178

$            0.761

$            0.587






Distributions declared to Unitholders(2)

$            9,195

$          24,841

$          89,635

$          95,024

Distributions per Unit declared to Unitholders(2)

$            0.048

$            0.141

$            0.478

$            0.556

Cash Distributions paid(2)

$          18,390

$          18,852

$          85,649

$          73,872






Regular FFO payout ratio without DRIP benefit(1)(2)

24.4 %

79.3 %

62.8 %

94.7 %

Regular FFO payout ratio with DRIP benefit(1)(2)

48.7 %

60.3 %

60.2 %

73.8 %






Weighted average number of Units outstanding (in thousands)

189,977

175,909

186,880

170,390

Units issued and outstanding at the end of the period (in thousands)

189,977

176,900

189,977

176,900






Other items:





Straight-line rent adjustment

$           (1,702)

$           (1,316)

$           (5,532)

$           (5,542)

Non-recoverable capital expenditures

$              (326)

$              (366)

$           (3,106)

$           (1,154)

Leasing costs

$           (6,545)

$           (1,294)

$         (19,390)

$           (8,534)






(1) FFO includes strategic non-recurring mortgage prepayment costs of $20.0 million ($0.118 per Unit) for  2021. Excluding the prepayment costs, FFO per Unit was $0.705 per Unit for 2021. FFO payout ratio without DRIP benefit excluding the prepayment costs was 78.9% (61.5% including DRIP benefit) for 2021.

(2) Concurrent with the announcement of the Transaction on November 7, 2023, the REIT suspended its normal monthly distributions through closing, effective following the payment of the previously-declared monthly distribution for October 2023 that was paid on November 15, 2023.


Same Property NOI

In calculating same property NOI, the impacts from the straight-lining of rents and amortization of free rent have been excluded. Same property NOI excludes properties that would have had changes due to acquisitions, dispositions and redevelopments, as well as properties classified as held for sale.

The following tables reconcile same property NOI to net rental income for the periods presented:





Change

Change


GLA

Q4 2023

Q4 2021

($)

( %)







Ontario

10,267

$               20,955

$               19,331

$                 1,624

8.4 %

Quebec

4,019

7,985

7,498

487

6.5 %

Alberta

5,229

12,519

12,189

330

2.7 %

Other Canada

42

97

97

0.0 %

Same property NOI

19,557

$               41,556

$               39,115

$                 2,441

6.2 %







Acquisitions/dispositions/redevelopments

2,695

6,363

1,142

5,221


Straight-line rent


1,702

1,316

386


Free rent amortization


(391)

(311)

(80)


Net rental income

22,252

$               49,230

$               41,262

$                 7,968





Q4 2023

Q4 2021

Change

Change


GLA

Annual

Annual

($)

( %)







Ontario

9,924

$               80,866

$               74,145

$                 6,721

9.1 %

Quebec

3,254

22,878

21,883

995

4.5 %

Alberta

5,229

49,391

48,890

501

1.0 %

Other Canada

42

391

387

4

1.0 %

Same property NOI

18,449

$             153,526

$             145,305

$                 8,221

5.7 %







Acquisitions/dispositions/redevelopments

3,803

28,679

11,811

16,868


Straight-line rent


5,532

5,542

(10)


Free rent amortization


(1,428)

(1,231)

(197)


Net rental income

22,252

$             186,309

$             161,427

$               24,882



Financial Ratios

The REIT's interest coverage ratio, debt service coverage ratio and debt-to-adjusted EBITDA are calculated as follows:




Q4 2023

Q4 2021


Q4 2023

Q4 2021

Annual

Annual






Net income

$           457,663

$           128,240

$           822,056

$        1,131,994

Adjustments:





Transaction costs

4,748

4,748

Free rent amortization

391

311

1,428

1,231

Amortization of other assets

96

91

466

326

Straight-lining of rents

(1,702)

(1,316)

(5,532)

(5,542)

Fair value adjustment to deferred unit compensation

2,246

602

174

2,565

Fair value adjustment to loans receivable

(4,691)

Fair value adjustment to investment properties

(427,420)

(97,967)

(686,604)

(1,031,385)

Finance costs(1)

10,404

8,948

39,403

57,210

Adjusted EBITDA

$             46,426

$             38,909

$           176,139

$           151,708






Adjustments to finance costs:





Non-recurring mortgage prepayment costs(1)

(20,036)

Interest expense (finance costs) excluding adjustments

$             10,404

$               8,948

$             39,403

$             37,174

Interest Coverage

4.5x

4.3x

4.5x

4.1x






Principal repayments (excluding mortgage payouts)

$               2,340

$               3,014

$             10,270

$             15,543

Principal and interest payments

$             12,744

$             11,962

$             49,673

$             52,717

Debt Service Coverage

3.6x

3.3x

3.5x

2.9x






Non-current loans and borrowings

$        1,383,593

$        1,199,376

$        1,383,593

$        1,199,376

Current loans and borrowings

53,607

94,197

53,607

94,197

Total loans and borrowings

1,437,200

1,293,573

1,437,200

1,293,573

Adjustments:





Unamortized premium on debt

(1,533)

(2,085)

(1,533)

(2,085)

Unamortized deferred financing charges

4,425

5,395

4,425

5,395

Total loans and borrowings (principal outstanding)

$        1,440,092

$        1,296,883

$        1,440,092

$        1,296,883

Adjusted EBITDA per above, annualized

$           185,704

$           155,636

$           176,139

$           151,708

Debt-to-Adjusted EBITDA

7.8x

8.3x

8.2x

8.5x






(1) The REIT incurred non-recurring mortgage prepayment costs of $20.0 million during 2021 on the strategic early repayment of $329.5 million of secured term mortgages, which were recorded in finance costs.


About Summit Industrial Income REIT
Summit Industrial Income REIT is an unincorporated open-ended trust focused on growing and managing a portfolio of light industrial properties in key markets across Canada. Summit's units are listed on the TSX and trade under the symbol SMU.UN. For more information, please visit the REIT's website at www.summitiireit.com.

Caution Regarding Forward Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "goal" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning the goal to build Summit's property portfolio; the Transaction and the terms thereof; the anticipated closing of the Transaction including the timing thereof. There can be no assurance that the proposed Transaction will be completed or that it will be completed on the terms and conditions contemplated in this news release. The proposed Transaction could be modified, restructured or terminated in accordance with its terms. The forward-looking statements and information are based on certain key expectations and assumptions made by Summit, including general economic conditions. Although Summit believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Summit can deliver no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the real results and expectations to differ materially from the anticipated results or expectations expressed, and given the impact of the COVID-19 pandemic and government measures to contain it, as well as the current geopolitical environment, there is inherently more uncertainty associated with the REIT's assumptions as compared to prior periods. These risks and uncertainties include, but are not limited to, the anticipated benefits of the Transaction to unitholders, the availability of cash flow from operations to meet monthly distributions, the ability to satisfy the conditions applicable to the Transaction, tenant risks, current economic environment, including disputes between nations, war and international sanctions, environmental matters, general insured and uninsured risks and Summit being unable to obtain any required financing and approvals. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Summit undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Summit Industrial Income REIT

View original content: http://www.newswire.ca/en/releases/archive/February2023/15/c6927.html

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Wed, 15 Feb 2023 08:42:00 -0600 en text/html https://www.benzinga.com/pressreleases/23/02/n30935111/summit-industrial-income-reit-reports-fourth-quarter-2022-financial-results

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