Prince Philip was laid to rest on Saturday in a funeral ceremony that honored his lifetime of service to the UK, the crown and his wife of 73 years, Queen Elizabeth II. (April 17)
Prince Philip was laid to rest on Saturday in a funeral ceremony that honored his lifetime of service to the UK, the crown and his wife of 73 years, Queen Elizabeth II. (April 17)
CALGARY, Alberta, May 06, 2021 (GLOBE NEWSWIRE) -- Crew Energy Inc. (TSX: CR) (“Crew” or the “Company”) today announced our operating and financial results for the three-month period ended March 31, 2021. Crew’s Financial Statements and Notes, as well as Management’s Discussion and Analysis (“MD&A”) for the three-month period ended March 31, 2021 are available on Crew’s website at www.crewenergy.com and filed on SEDAR at www.sedar.com. “Crew entered 2021 primed to capitalize on structural improvements in crude oil and natural gas pricing with a pivotal two-year plan which is designed to increase the pace of development of our world-class Montney resource while optimizing production and infrastructure utilization. This is expected to enhance margins, improve leverage metrics and generate shareholder value,” said Dale Shwed, President and CEO of Crew. “In Q1 2021, we saw the initial benefits of our two-year plan, with meaningful growth across an array of financial and operating metrics both year-over-year and quarter-over-quarter, including a 124% increase in revenue, 174% increase in Adjusted Funds Flow1 (“AFF”) and a 10% increase in production volumes compared to Q1 2020.” Q1 2021 OPERATING & FINANCIAL HIGHLIGHTS 26,258 boe per day2 (157.5 mmcfe per day) average production in Q1/21, a 10% increase over Q1/20 and a 21% increase from the preceding quarter, reflecting the operational success of Crew’s drilling and completions program.$34.0 million of AFF1 ($0.22 per fully diluted share) generated in the quarter, a 174% increase over Q1/20 and 118% higher than the preceding quarter, due largely to increased production, lower costs and stronger commodity pricing, particularly for natural gas. $4.65 per boe net operating costs1 in Q1/21, representing a 19% reduction compared to Q1/20, and a 12% reduction from the prior quarter, reflecting higher production leading to operational efficiencies. Q1/21 general and administrative (“G&A”) costs of $0.93 per boe declined 19% and 28% compared to Q1/20 and Q4/20, respectively. $50.1 million of net capital expenditures1 in Q1/21, at the low end of the previously announced guidance range of $50 to $53 million, as drilling and completion efficiencies improved in the quarter. The majority of expenditures were directed towards the continued development of our world-class Montney resource play, with $42.3 million invested in drilling and completions activities, $5.6 million directed to equipment and pipelines, and $2.2 million on land, seismic, recompletions and other miscellaneous amounts.11 natural gas wells were drilled in Q1/21, while six natural gas wells were completed, and seven previously completed natural gas wells were tied in through permanent facilities. In Q1/21, Crew drilled two wells over 6,200 meters in total length, the longest wells drilled in the Company’s history.4 ultra-condensate rich wells were completed on Crew’s 3-32 pad with encouraging initial first month average per well sales rates of 497 bbls per day of condensate, 2.2 mmcf per day of conventional natural gas and 99 bbls per day of ngl. These wells had an average condensate to gas ratio of 226 bbls per mmcf over the first month of production.$375.7 million of net debt1 at March 31, 2021, with no near-term maturities or repayment requirements on the $300 million of senior notes termed out until 2024, and 38% drawn on our $150 million credit facility. FINANCIAL & OPERATING HIGHLIGHTS FINANCIAL($ thousands, except per share amounts)Three months endedMar. 31, 2021Three months endedMar. 31, 2020Petroleum and natural gas sales85,51738,094Adjusted funds flow 133,99512,400 Per share – basic0.230.08 – diluted0.220.08Net income / (loss) 1,353(191,909) Per share – basic0.01(1.27) – diluted0.01(1.27)Exploration and development expenditures50,09018,029Property acquisitions (net of dispositions)-(34,940)Net capital expenditures50,090(16,911) As atMar. 31, 2021As atDec. 31, 2020Working capital deficiency 121,73924,361Bank loan56,85135,994 78,59060,355Senior Unsecured Notes297,097296,851Total net debt 1375,687357,206Common shares outstanding (thousands)156,576156,449 Notes: (1) Non-IFRS measure that does not have any standardized meaning as prescribed by International Financial Reporting Standards, and therefore, may not be comparable with the calculations of similar measures for other entities. See “Advisories - Non-IFRS Measures” contained within this press release. OperationsThree months endedMar. 31, 2021Three months endedMar. 31, 2020Daily production Light crude oil (bbl/d) 1155215 Heavy crude oil (bbl/d)1,0551,527 Natural gas liquids (“ngl”) 2 (bbl/d)2,4012,288 Condensate (bbl/d)2,7083,340 Conventional natural gas (mcf/d)119,63599,144 Total (boe/d @ 6:1)26,25823,894Average prices 3 Light crude oil ($/bbl)63.9744.81 Heavy crude oil ($/bbl)52.6920.06 Natural gas liquids ($/bbl)13.564.86 Condensate ($/bbl)69.7554.83 Conventional natural gas ($/mcf)5.541.86 Oil equivalent ($/boe)36.1917.52 Notes: (1) The Company does not have any medium crude oil as defined by NI 51-101.(2) Throughout this news release, natural gas liquids (“ngl”) comprise all natural gas liquids as defined in National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), other than condensate, which is disclosed separately, and natural gas means conventional natural gas by NI 51-101 product type.(3) Average prices are before deduction of transportation costs and do not include realized gains and losses on derivative financial instruments. Three months endedMar. 31, 2021Three months endedMar. 31, 2020Netback ($/boe) Petroleum and natural gas sales36.19 17.52 Royalties(2.21)(1.00) Realized commodity hedging gain(7.34)1.75 Marketing income 1- 0.11 Net operating costs 2,3(4.65)(5.74) Transportation costs(4.17)(3.21) Operating netback 317.82 9.43 G&A(0.93)(1.15) Financing costs on long-term debt(2.50)(2.58) Adjusted funds flow 314.39 5.70 Notes: (1) Marketing income was recognized from the monetization of forward physical sales contracts offset by the cost of committed natural gas transportation that was not available during the period.(2) Net operating costs are calculated as gross operating costs less processing revenue. (3) Non-IFRS measure that does not have any standardized meaning as prescribed by International Financial Reporting Standards, and therefore, may not be comparable with the calculations of similar measures for other entities. See “Advisories - Non-IFRS Measures” contained within this press release. SUSTAINABILITY AND ESG INITIATIVES Crew's environmental, social and governance ("ESG") initiatives were a prime focus in Q1/21 as we continued our unwavering commitment to safely and to responsibly operate in the communities in which we work. The Company expects to release our inaugural ESG report to stakeholders in mid-2021, while we continue to advance our sustainability goals: The Company continues to reduce its surface footprint by developing its resource through the drilling of longer Extended Reach Horizontal (“ERH”) wells. These longer wells ultimately reduce the number of wells needed to deplete a reservoir, reduce future development capital and minimize pipeline requirements. Additionally, by concentrating the placement of wells on drilling pads, surface impact is minimized to one area as exhibited on our Greater Septimus 1-8 pad. Recent wells have exceeded 4,000 meters in lateral length, allowing access to resource that would otherwise have been challenging and costly to access due to difficult terrain and environmental sensitivities.Crew has upheld an exemplary safety record, featuring no employee or contractor lost time injuries for over 1,000 consecutive days as of Q1 2021.Crew successfully participated in the provincially funded dormant well programs, having abandoned 41 wells and initiated 78 site assessments to date in 2021. Crew expects to abandon approximately 16% of the Company’s idle wells in 2021.Crew continues to leverage the use of next generation, spoolable surface pipelines for produced water transfer, which removes trucks from the road, reduces CO2 emissions, and affirms Crew's commitment to improving efficiencies and reducing our environmental impact. In addition to meaningful reductions in emissions, the corresponding removal of vehicles from the road also significantly reduces the risk of accidents and spills, further contributing to improved safety and environmental performance.Through Q1/21, Crew’s strong regulatory compliance record remained consistent with 2019 and 2020, achieving a 96% compliance rating with 57 regulatory inspections completed across the three provinces in which we operate. OPERATIONS & AREA OVERVIEW NE BC Montney Production & DrillingQ12021Q42020Q32020Q22020Q12020Average daily production (boe/d) 123,13018,08917,11918,56519,894Wells drilled116601Wells completed6 7010 Note: (1) See table in the Advisories for production breakdown by product type as defined in NI 51-101. Operating Netback ($ per boe) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020Petroleum and natural gas sales36.1520.4115.7311.9717.61Royalties(2.07)(0.89)(0.42)(0.36)(0.86)Realized commodity hedge (loss) gain(7.26)1.452.183.061.44Marketing (loss) income 1-(0.05)(0.33)(0.31)0.13Net operating costs 2,3(3.84)(4.33)(4.71)(4.81)(4.52)Transportation costs(4.25)(4.33)(3.86)(3.37)(2.99)Operating netback 318.7312.268.596.1810.81 Notes: (1) Marketing income was recognized from the monetization of forward physical sales contracts offset by the cost of committed natural gas transportation that was not available during the period.(2) Net operating costs are calculated as gross operating costs less processing revenue. (3) Non-IFRS measure that does not have any standardized meaning as prescribed by International Financial Reporting Standards, and therefore, may not be comparable with the calculations of similar measures for other entities. See “Advisories - Non-IFRS Measures” contained within this press release. Production at Greater Septimus totaled 23,130 boe per day in Q1/21, a 28% increase compared to the prior quarter and a 16% increase year-over-year.Despite extreme cold weather in February, Crew effectively executed our first quarter drilling and completions program, with 11 wells drilled and six Montney wells completed. Four wells were drilled for land tenure extensions with three wells drilled at Groundbirch, which are expected to be completed in the next year, and one well drilled at Attachie, which is not expected to be completed until a development plan for the area has been established. Excluding the Attachie well, the Company now has an inventory of 10 drilled and uncompleted wells and has recently paused its drilling program through spring breakup.At Crew’s 3-32 pad, four wells were completed in the ultra-condensate rich Upper Montney “B” zone with encouraging initial first month per well average sales rates of 497 bbls per day of condensate, 2.2 mmcf per day of conventional natural gas, and 99 bbls per day of ngl. These wells had an average condensate to gas ratio of 226 bbls per mmcf over the first month of production. The 3-32 pad wells were tied into permanent facilities in mid April.At the 3-32 pad, Crew's commitment to improving efficiencies and reducing emissions was reaffirmed through the installation of a licensed temporary surface pipeline for produced water. The pipeline allows for the safe and environmentally responsible transportation of produced water, dramatically reducing the trucking of water in Crew’s area of operations while significantly reducing emissions. As a result of this pipeline, 7,333 two-way truckloads were removed from the road during the completion of the 3-32 pad in Q1 2021, which is the approximate equivalent of 329 tCO2e.Drilling of the seven-well 1-8 pad began in Q4 and was finished in Q1, incorporating the longest wells drilled in the Company's history. After completing the drilling of the 1-8 pad, the associated drilling rig was moved to our nine well 4-14 pad, targeting gas and condensate at Greater Septimus. Other NE BC Montney Crew continues to evaluate encouraging offset operator activity in the Attachie and Oak/Flatrock areas.During Q1/21, Crew completed our land retention program focused in the Groundbirch area to facilitate future growth by drilling three land tenure extension wells. This program allowed the Company to hold 53 sections of Montney mineral rights. AB / SK Heavy Oil Lloydminster Crew’s dedication to the optimization of operations has led to an 8% year-over-year decline in Q1/21 operating costs in the heavy oil operating area.In Q1/21, Crew successfully executed 35 well abandonments in the area. BOARD OF DIRECTORS TRANSITION Crew is pleased to announce that Ms. Gail Hannon will be standing for election to our Board of Directors at the 2021 Annual General and Special Meeting (“AGSM”), which is to be held on May 20th, 2021. Ms. Hannon is currently the Vice President of Corporate and Financial Planning with a private Alberta based oil and gas company. Bringing over 30 years of diverse accounting and reporting experience, Ms. Hannon has worked in various management and executive roles in both private and public companies. She holds a CPA designation, a CMA certification and currently serves on the board of a private company. We are very excited to have Ms. Hannon join our Crew and believe her extensive experience will be an invaluable contribution to the Board. The Company also announces that Mr. David Smith is not standing for re-election at Crew’s 2021 AGSM. On behalf of our Board of Directors and our Crew, we would like to thank David for 12 years of outstanding advice and service on Crew’s Board, and we wish him all the best in his retirement. OUTLOOK Crew continues to execute on our two-year plan with production and AFF ahead of budget assumptions. Both short-term and long-term fundamentals remain strong for natural gas while oil prices have recently exhibited positive momentum as the world begins to recover from the effects of the COVID-19 pandemic. Crew management anticipates that natural gas will continue to play a long-term and vital role in the global energy transition as the world looks to diversify energy sources and reduce emissions. Two-Year Plan on Track Crew's pivotal two-year plan, designed to expand margins and significantly improve leverage metrics by efficiently matching production volumes with infrastructure and transportation commitments, has been successfully initiated. Production Growth – Q1/21 production averaged 26,258 boe per day3, representing a 21% increase over Q4/20, as our drilling and completions program progresses. The Q2/21 capital program is expected to range between $15 and $18 million, while production volumes are expected to average between 26,000 and 27,000 boe per day3.AFF Guidance Increased – As a result of strong first quarter AFF4 and an improved commodity price forecast for the remainder of the year, the Company now expects 2021 AFF4 to range between $105 and $125 million5, representing an increase of approximately 20% over previous guidance.Optimizing Commitments – Increasing Q1/21 natural gas production has resulted in Crew enhancing the utilization of our committed transportation by over 30% as compared to Q4/20. Further improvements are anticipated as production increases throughout the year and as committed transportation decreases by over 20% in Q4/21, which is expected to reduce transportation expenses by over $9 million annually.Enhanced Hedging Program – Crew currently has over 55% of forecast 2021 natural gas production hedged at an average price of $2.48 per Gigajoule (“GJ”) (or $3.08 per mcf calculated using Crew’s heat content factor), while approximately 35% of targeted natural gas production for 2022 is hedged at an average price of $2.46 per GJ (or $3.05 per mcf using Crew’s heat content factor).Reduced Costs – Crew’s plan to reduce unit costs by over 25% is largely based on increasing production volumes into existing infrastructure, as over 50% of the Company’s expenses are fixed. As production increases, per unit costs associated with operating, transportation, G&A and interest expenses are targeted to decline from $13.19 per boe in 2020 to approximately $10.00 per boe in 2022. Progress was made in achieving these goals in Q1, as per unit operating, transportation, G&A and interest costs declined by 11% from $13.80 per boe in Q4/20 to $12.25 per boe in Q1/21.Debt Reduction – Based on projected capital spending, current forward commodity prices and the production assumptions outlined in Crew’s most recent Corporate Presentation, we expect that debt metrics will improve to under 2x EBITDA6 by the end of 2022.Full Year 2021 Guidance – 2021 capital and production guidance remains unchanged, with plans to invest between $120 and $145 million of capital throughout the year, resulting in average annual production of 26,000 to 28,000 boe per day7 and an exit rate of over 30,000 boe per day7. Our Crew remains enthusiastic and focussed on the efficient execution of the Company’s business plan. We have identified actionable opportunities to grow profitably while expanding margins and participating in the energy transition. With a history of low finding and development costs and high recycle ratios, with access to diversified markets, we are uniquely positioned to provide superior returns to our shareholders. Crew retains the financial flexibility and expertise to execute on our plans, with ample liquidity and the optionality to raise funds through asset transactions as needed. We commend the hard work of Crew’s employees, contractors and directors whose commitment and dedication are critical to our ongoing success and thank all shareholders and bondholders for your ongoing support. ADVISORIES Non-IFRS Measures Certain financial measures referred to in this press release, such as adjusted funds flow or AFF, EBITDA, operating netback, net capital expenditures, net debt, net operating costs and working capital deficiency and are not prescribed by IFRS. Crew uses these measures to help evaluate its financial and operating performance as well as its liquidity and leverage. These non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. “Adjusted funds flow" or “AFF”, presented herein is equivalent to funds from operations before decommissioning obligations settled. The Company considers this metric as a key measure that demonstrate the ability of the Company’s continuing operations to generate the cash flow necessary to maintain production at current levels and fund future growth through capital investment and to service and repay debt. Crew also presents AFF per share in this presentation whereby per share amounts are calculated using fully diluted shares outstanding. “EBITDA” is calculated as consolidated net income (loss) before interest and financing expenses, income taxes, depletion, depreciation and amortization, adjusted for certain non-cash, extraordinary and non-recurring items primarily relating to unrealized gains and losses on financial instruments and impairment losses. Crew utilizes EBITDA as a measure of operational performance and cash flow generating capability. EBITDA impacts the level and extent of funding for capital projects investments. This measure is consistent with the EBITDA formula prescribed under the Company's Credit Facility and allows Crew and others to assess its ability to fund financing expenses, net debt reductions and other obligations. "Operating Netbacks" equals petroleum and natural gas sales including realized gains and losses on commodity related derivative financial instruments, marketing income, less royalties, net operating costs and transportation costs calculated on a boe basis. Management considers operating netback an important measure to evaluate its operational performance as it demonstrates its field level profitability relative to current commodity prices. The calculation of Crew’s netbacks can be seen under “Operating Netbacks” within the Company’s most recently filed MD&A." "Net Capital Expenditures" equals exploration and development expenditures plus property acquisitions or less property dispositions. “Net Debt" is defined as bank debt plus working capital deficiency or surplus, excluding the current portion of the fair value of financial instruments. “Net Operating Costs” equals operating costs net of processing revenue. "Working Capital Surplus (Deficiency)" equals current assets less current liabilities and derivative financial instruments. Please refer to Crew’s most recently filed MD&A for additional information relating to Non-IFRS measures including a reconciliation of AFF to its most closely related IFRS measure. The MD&A can be accessed either on Crew’s website at www.crewenergy.com or under the Company’s profile on www.sedar.com. Forward-Looking Information and Statements This news release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" “forecast” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: the ability to execute on its two-year development plan as described herein; as to our plan to optimize production and infrastructure utilization, enhance margins, increase AFF and improve leverage metrics; our Q2 2021 and 2021 annual capital budget range and associated drilling and completion plans and associated guidance; preliminary capital plans and targets for 2022; production estimates including forecast Q2 and 2021 annual average and exit production volumes; commodity price expectations including Crew’s estimates of natural gas pricing exposure; Crew's commodity risk management programs and future hedging opportunities; well abandonment plans; marketing and transportation and processing plans and requirements; estimates of processing capacity and requirements; future liquidity and financial capacity; future results from operations and operating and leverage metrics; anticipated reductions in expenses and associated estimates including forecast unit costs in 2022 and expected reductions in transportation expenses by over $9 million annually; expected debt metric improvements to under 2x EBITDA; strong capital efficiencies and enhanced returns going forward; the potential impact of COVID-19 as well as government programs associated with COVID-19; world supply and demand projections and anticipated reductions in industry spending as a result, and long-term impact on pricing; future development, exploration, acquisition and disposition activities (including drilling and completion plans, anticipated on-stream dates and associated timing and cost estimates); infrastructure investment plans; the successful implementation of our ESG initiatives including the anticipated release of Crew's inaugural ESG report in 2021; the amount and timing of capital projects; and anticipated improvement in our long-term sustainability including the expected positive attributes discussed herein attributable to our two-year development plan. The internal projections, expectations, or beliefs underlying our Board approved 2021 capital budget and associated guidance, as well as management's preliminary estimates and targets in respect of plans for 2022 and beyond, are subject to change in light of the impact of the COVID-19 pandemic, and any related actions taken by businesses and governments, ongoing results, prevailing economic circumstances, commodity prices, and industry conditions and regulations. Crew's financial outlook and guidance provides shareholders with relevant information on management's expectations for results of operations, excluding any potential acquisitions or dispositions, for such time periods based upon the key assumptions outlined herein. In this press release reference is made to the Company's longer range 2022 and beyond internal plan and associated economic model. Such information reflects internal targets used by management for the purposes of making capital investment decisions and for internal long-range planning and budget preparation. Readers are cautioned that events or circumstances could cause capital plans and associated results to differ materially from those predicted and Crew's guidance for 2021 and beyond may not be appropriate for other purposes. Accordingly, undue reliance should not be placed on same. In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Crew which have been used to develop such statements and information but which may prove to be incorrect. Although Crew believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Crew can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: that Crew will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities consistent with past operations; the quality of the reservoirs in which Crew operates and continued performance from existing wells; the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Crew’s reserve volumes; certain commodity price and other cost assumptions; continued availability of debt and equity financing and cash flow to fund Crew’s current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Crew operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Crew to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Crew has an interest in to operate the field in a safe, efficient and effective manner; the ability of Crew to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Crew to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Crew operates; and the ability of Crew to successfully market its oil and natural gas products. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: the continuing and uncertain impact of COVID-19; changes in commodity prices; changes in the demand for or supply of Crew's products, the early stage of development of some of the evaluated areas and zones the potential for variation in the quality of the Montney formation; interruptions, unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates; climate change regulations, or other regulatory matters; changes in development plans of Crew or by third party operators of Crew's properties, increased debt levels or debt service requirements; inaccurate estimation of Crew's oil and gas reserve volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Crew's public disclosure documents (including, without limitation, those risks identified in this news release and Crew's Annual Information Form). This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Crew's prospective capital expenditures, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. The actual results of operations of Crew and the resulting financial results will likely vary from the amounts set forth in this press release and such variation may be material. Crew and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, Crew undertakes no obligation to update such FOFI. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about Crew's anticipated future business operations. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Crew does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Key Budget and Underlying Material Assumptions1 2021 (Updated)3 Capital Expenditures ($MM)120-145 Annual Average Production (boe/d)26,000 – 28,000 Adjusted Funds Flow ($MM)105-125 EBITDA ($MM)130-149 Oil price (WTI)($US per bbl)$61.00 WCS price ($C per bbl)$61.00 Natural gas price (AECO 5A) ($C per mcf)$2.90 Natural gas price (NYMEX) ($US per mmbtu)$2.80 Natural gas price (Crew est. wellhead) ($C per mcf)$3.80 Foreign exchange ($US/$CAD)$0.80 Royalties4-6% Net operating costs2 ($ per boe)$4.75-$5.25 Transportation ($ per boe)$3.50-$4.00 G&A ($ per boe)$0.90-$1.10 Interest rate – bank debt6.0% Interest rate – high yield6.5% Notes: 1 The actual results of operations of Crew and the resulting financial results will likely vary from the estimates and material underlying assumptions set forth in this guidance by the Company and such variation may be material. The guidance and material underlying assumptions have been prepared on a reasonable basis, reflecting management's best estimates and judgments. 2 Non-IFRS measure that does not have any standardized meaning as prescribed by International Financial Reporting Standards, and therefore, may not be comparable with the calculations of similar measures for other entities. See “Non-IFRS Measures” contained within this Press Release. 3 See the Guidance section of the Company’s most recently filed Management’s Discussion and Analysis for additional information regarding updated guidance and material assumptions. Supplemental Information Regarding Product Types The following is intended to provide the product type composition for each of the boe/d production figures provided herein, where not already disclosed within tables above: Corporate Production Volume Breakdown2 Crude Oil1Natural gas liquids3CondensateConventional Natural gasTotal (boe/d)2021 Q1 Average1,210 bbl/d2,401 bbl/d2,708 bbl/d119,635 mcf/d26,2582021 Q2 Average4%10%12%74%26,000-27,0002021 Annual Average4%10%11%75%26,000-28,000 Greater Septimus Production Volume Breakdown Crude Oil1Natural gas liquids3CondensateConventional Natural gasTotal (boe/d)Q1/210%10%12%78%23,130Q4/200%10%12%78%18,089Q3/200%11%13%76%17,119Q2/200%11%14%75%18,565Q1/200%11%17%72%19,894 Notes:1 Crude oil is comprised primarily of Heavy crude oil, with an immaterial portion of Light and Medium crude oil.2 With respect to forward looking production guidance, given the potential for variability in actual product type results, the issuer approximates percentages for budget planning purposes based on management's reasonable assumptions including, without limitation, historical well results.3 Excludes condensate volumes which have been reported separately. Test Results and Initial Production ("IP") Rates A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed. Test results and initial production rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long term performance or of ultimate recovery. Sales gas used herein reflects natural gas sales based on historical gas processing shrinkage and condensate and ngl yields. BOE, MMCFE and TCFE Conversions Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of 6:1, utilizing the 6:1 conversion ratio may be misleading as an indication of value. TCFe of gas is defined as Trillion Cubic Feet Equivalent, and MMCFe of gas is defined as Million Cubic Feet Equivalent. Both terms have been applied using the oil equivalent conversion ratio of six thousand cubic feet of natural gas (6 mcf) to one barrel of oil (1 bbl). TCFe and MMCFe amounts may be misleading, particularly if used in isolation. Crew is a growth-oriented oil and natural gas producer, committed to pursuing sustainable per share growth through a balanced mix of financially and socially responsible exploration and development complemented by strategic acquisitions. The Company’s operations are primarily focused in the vast Montney resource, situated in northeast British Columbia, and include a large contiguous land base. Greater Septimus along with Groundbirch and the light oil area at Tower in British Columbia offer significant development potential over the long-term. The Company has access to diversified markets with operated infrastructure and access to multiple pipeline egress options. Crew adhere’s to safe and environmentally responsible operations while remaining committed to sound ESG practices that underpin Crew’s fundamental business tenets. Crew’s common shares are listed for trading on the Toronto Stock Exchange (“TSX”) under the symbol “CR”. Financial statements and Management’s Discussion and Analysis for the three month periods ended March 31, 2021 and 2020 are filed on SEDAR at www.sedar.com and are available on the Company’s website at www.crewenergy.com. FOR DETAILED INFORMATION, PLEASE CONTACT: Dale Shwed, President and CEOPhone: (403) 266-2088John Leach, Executive Vice President and CFOEmail: email@example.com 1 Non-IFRS measure that does not have any standardized meaning as prescribed by International Financial Reporting Standards, and therefore, may not be comparable with the calculations of similar measures for other entities. See “Advisories - Non-IFRS Measures” contained within this press release.2 See table in the Advisories for production breakdown by product type as defined in NI 51-101.3 See table in the Advisories for production breakdown by product type as defined in NI 51-101.4 Non-IFRS measure that does not have any standardized meaning as prescribed by International Financial Reporting Standards, and therefore, may not be comparable with the calculations of similar measures for other entities. See “Advisories - Non-IFRS Measures” contained within this press release.5 See table in the Advisories for key budget and underlying material assumptions related to Crew’s development plan and associated guidance.6 Non-IFRS measure that does not have any standardized meaning as prescribed by International Financial Reporting Standards, and therefore, may not be comparable with the calculations of similar measures for other entities. See “Advisories - Non-IFRS Measures” contained within this press release.7 See table in the Advisories for production breakdown by product type as defined in NI 51-101.
NEW YORK, May 06, 2021 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Workhorse Group Inc. (“Workhorse” or the “Company”) (NASDAQ: WKHS) and certain of its officers. The class action, filed in the United States District Court for the Central District of California, and docketed under 21-cv-02207, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Workhorse securities between July 7, 2020 and February 23, 2021, inclusive (the “Class Period”). Plaintiff seeks to recover compensable damages caused by Defendants’ violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”). If you are a shareholder who purchased Workhorse securities during the Class Period, you have until May 7, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. [Click here for information about joining the class action] Workhorse is a technology company engaged in the development and manufacturing of electric delivery vehicles. In 2016, the United States Postal Service (“USPS”) announced the USPS Next Generation Delivery Vehicle (“NGDV”) project, a competitive multiyear acquisition process for replacing approximately 165,000 package delivery vehicles. Workhorse was one of the companies vying for the NGDV contract, which was thought to be worth approximately $6.3 billion. The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was merely hoping that the USPS was going to select an electric vehicle as its Next Generation Delivery Vehicle, and had no assurance or indication from USPS that this was the case; (ii) the Company had concealed the fact that, as revealed by the postmaster general in explaining the ultimate decision not to select an electric vehicle, electrifying the USPS’s entire fleet would be impractical and astronomically expensive; and (iii) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times. On February 23, 2021, while the market was open, the USPS issued a press release entitled “U.S. Postal Service Awards Contract to Launch Multi-Billion-Dollar Modernization of Postal Delivery Vehicle Fleet.” The press release announced that Oshkosh Defense, not Workhorse, had won the lucrative NGDV contract. On this news, securities of Workhorse fell $14.87 per share, or 47%, to close at $16.47 per share in the regular session on February 23, 2021. The price continued to drop in after-hours trading and opened on February 24, 2021 at a price of $14.07 per share, a fall of over 50% from the previous open, damaging investors. The New York Times published an article on February 24, 2021, entitled “Losing Bid for Postal Contract Proves Costly for Electric-Vehicle Maker.” The subtitle read: “Workhorse, a small truck maker with big ambitions, was counting on the deal for a surge in revenue. Its shares lost $2 billion in value.” The press release quoted the postmaster general, Louis DeJoy, who said the USPS’s plan called for 10 percent of its new trucks to be electric. When asked by Representative Jackie Speier, a California Democrat, why that figure was not 90 percent, Mr. DeJoy pointed to cost, stating: “We don’t have the three or four extra billion dollars in our plan right now that it would take to do it[.]” The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com CONTACT:Robert S. WilloughbyPomerantz LLPrswilloughby@pomlaw.com
Ole Gunnar Solskjaer reached a major final as Manchester United manager for the first time after a 3-2 defeat to AS Roma at the Stadio Olimpico was enough to earn his side an 8-5 aggregate win in the Europa League semi-finals on Thursday. United will face Villarreal in the final in Gdansk on May 26 after the Spaniards beat Arsenal 2-1 on aggregate. Solskjaer had lost his last four semi-finals during his Old Trafford reign and despite Thursday's defeat in Rome, the Norwegian's side progressed comfortably thanks to last week's commanding 6-2 first leg win.
Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 18 classes of Velocity Commercial Capital 2021-1 (VCC 2021-1) mortgage-backed certificates.
Two of Jarryd Hayne's former teammates have sparked uproar with their responses to his sentencing. See what they had to say.
Longtime Pulaski Academy head coach Kevin Kelley is leaving for Presbyterian College. Presbyterian competes at the FCS level.
Randi Weingarten, president of the American Federation of Teachers, tells Yahoo Finance Live that in spite of some of the difficulties in reopening schools, she has seen first-hand that many kids feel safe and are happy to be back in school.
Shares of Aurinia Pharmaceuticals (NASDAQ: AUPH), an early commercial-stage biotech, are down by 17% in after-hours trading Thursday afternoon. The biotech's stock is cratering in response to the company's 2021 first-quarter earnings report released after the closing bell today. Investors appear to be backing away from Aurinia today for one simple reason: Sales of the biotech's newly approved lupus nephritis medication Lupkynis (aka voclosporin) failed to break even $1 million during the first quarter of 2021.
EBITDA1 of $392 million on Sales of $849 millionNet Cash Position and Available Liquidity of $944 million BURNABY, British Columbia, May 06, 2021 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded Net earnings in Q1’21 of $264.5 million, or $4.01 per share, compared to $149.1 million, or $2.24 per share in Q4’20 and $6.3 million, or $0.09 per share in Q1’20. Adjusted net earnings in Q1’21 was $270.6 million compared to $164.7 million in Q4’20 and $0.7 million in Q1’20. Adjusted EBITDA was a record $392.1 million on sales of $849.3 million in Q1’21 versus $248.6 million on sales of $662.3 million in Q4’20. Notable items in the quarter: Strong Free Cash Flow Generation Interfor generated $377.7 million of cash flow from operations before changes in working capital, or $5.73 per share. Working capital investment increased by $92.6 million, primarily related to higher trade receivables driven by lumber prices and seasonally higher log inventories in B.C.Net debt ended the quarter at $(236.0) million, or (21.7)% of invested capital, resulting in available liquidity of $943.6 million. Strategic Capital Investments Capital spending was $29.2 million, including $18.7 million on high-return discretionary projects. The majority of this discretionary spending was focused on a new kiln at the Adams Lake, BC sawmill and the ongoing multi-year rebuild of the Eatonton, Georgia sawmill.The new kiln installed at our Adams Lake sawmill was fully operational by mid-February and allows for increased site-wide production and a significantly improved grade mix. This project was complementary to Interfor’s Q1’20 acquisition of 349,000 cubic metres of annual cutting rights from Canfor Corporation which solidified Adams Lake’s long-term log supply and operational platform.The major rebuild of our Eatonton, Georgia sawmill is on-track for completion in Q4 of 2021, with full ramp-up expected to take approximately nine months thereafter. This project will add approximately 110 million board feet of annual production capacity and result in lower cash conversion costs and improved grade mix. Inclusive of this project, US$108 million has been spent on the Company’s Phase II strategic capital plan through March 31, 2021.The Company has received Board approval to proceed with strategic capital investments at its sawmills in Castlegar, BC, and Perry, Georgia of approximately $35 million and US$30 million, respectively. These investments will provide a combination of benefits in the form of higher production, improved lumber recovery and grade mix, and lower conversion costs. Completion of both projects is expected in Q3 of 2022.Interfor’s total capital expenditures are expected to be approximately $150 million in 2021 and in the range of $150 - $180 million in 2022, as the Company continues to execute on its strategic capital plans with attractive returns at conservative lumber prices. Acquisition of Summerville sawmill On March 12, 2021, Interfor concluded the acquisition of sawmill operations in Summerville, South Carolina from WestRock Company for total consideration of US$58,618,000 ($73,630,000). Normal Course Issuer Bid (“NCIB”) During Q1’21, Interfor purchased 774,420 common shares under the Company’s NCIB for total consideration of $20.3 million. Record Lumber Market Interfor’s average selling price was $1,143 per mfbm, up $301 per mfbm versus Q4’20. The key benchmark prices rose significantly quarter-over-quarter with the SYP Composite, Western SPF Composite and KD H-F Stud 2x4 9’ benchmarks increasing by US$312, US$283 and US$355 per mfbm to US$915, US$935 and US$1,162 per mfbm, respectively. Continued Strong Production Total lumber production in Q1’21 was 687 million board feet, which was consistent with Q4’20 and only 1 million board feet below Interfor’s production record for a quarter. The U.S. South and U.S. Northwest regions accounted for 338 million board feet and 141 million board feet, respectively, compared to 361 million board feet and 136 million board feet in Q4’20. Production in the B.C. region increased to 208 million board feet from 190 million board feet in the preceding quarter.Total lumber shipments were 666 million board feet, including agency and wholesale volumes, or 17 million board feet lower than Q4’20. Softwood Lumber Duties Interfor expensed $12.4 million of duties in the quarter, representing the full amount of countervailing and anti-dumping duties incurred on its Canadian shipments of softwood lumber into the U.S. at a combined rate of 8.99%.Cumulative duties of US$143.1 million have been paid by Interfor since the inception of the current trade dispute and are held in trust by the U.S. Except for US$32.9 million in respect of overpayments arising from duty rate adjustments, Interfor has recorded the duty deposits as an expense. 1 Refer to Adjusted EBITDA in the Non-GAAP Measures section Outlook North American lumber markets over the near term are expected to remain robust and above historical trends, albeit volatile, as relatively low levels of lumber inventories industry-wide combined with growing demand from new housing starts and repair and remodel activity put pressure on available lumber supply from manufacturers. Interfor expects lumber demand to continue to grow over the mid-term, as repair and renovation activities and U.S. housing starts benefit from favourable underlying economic fundamentals and trends. Interfor’s strategy of maintaining a diversified portfolio of operations allows the Company to both reduce risk and maximize returns on invested capital over the business cycle. While uncertainty remains as to the duration and extent of the economic impact from the COVID-19 pandemic, Interfor is well positioned with its strong balance sheet and significant available liquidity. Financial and Operating Highlights1 For the three months ended Mar. 31, Mar. 31, Dec. 31, Unit 2021 2020 2020 Financial Highlights2 Total sales$MM 849.3 479.6 662.3 Lumber$MM 762.4 379.3 575.0 Logs, residual products and other$MM 86.9 100.3 87.3 Operating earnings$MM 355.6 14.6 203.2 Net earnings$MM 264.5 6.3 149.1 Net earnings per share, basic$/share 4.01 0.09 2.24 Adjusted net earnings3$MM 270.6 0.7 164.7 Adjusted net earnings per share, basic3$/share 4.11 0.01 2.47 Operating cash flow per share (before working capital changes)3$/share 5.73 0.57 3.05 Adjusted EBITDA3$MM 392.1 36.6 248.6 Adjusted EBITDA margin3% 46.2% 7.6% 37.5% Total assets$MM 2,159.7 1,569.5 1,843.2 Total debt$MM 377.3 425.6 382.0 Net debt3$MM (236.0) 322.0 (75.4) Net debt to invested capital3% (21.7)% 26.7% (7.5)% Annualized return on capital employed3% 79.2% 4.0% 48.4% Operating Highlights Lumber productionmillion fbm 687 627 687 Total lumber salesmillion fbm 666 641 683 Lumber sales - Interfor producedmillion fbm 662 632 675 Lumber sales - wholesale and commissionmillion fbm 4 9 8 Lumber - average selling price4$/thousand fbm 1,143 592 842 Average USD/CAD exchange rate51 USD in CAD 1.2660 1.3449 1.3030 Closing USD/CAD exchange rate51 USD in CAD 1.2575 1.4187 1.2732 Notes: Figures in this table may not equal or sum to figures presented elsewhere due to rounding.Financial information presented for interim periods in this release is prepared in accordance with IFRS and is unaudited.Refer to the Non-GAAP Measures section of this release for definitions and reconciliations of these measures to figures reported in the Company’s consolidated financial statements.Gross sales before duties.Based on Bank of Canada foreign exchange rates. Liquidity Balance Sheet Interfor’s Net debt at March 31, 2021 was $(236.0) million, or (21.7)% of invested capital, representing a decrease of $160.5 million from the level of Net debt at December 31, 2020. As at March 31, 2021 the Company had net working capital of $744.5 million and available liquidity of $943.6 million, based on the full borrowing capacity under its $350 million Revolving Term Line. The Revolving Term Line and Senior Secured Notes are subject to financial covenants, including net debt to total capitalization ratios, and an EBITDA interest coverage ratio. Management believes, based on circumstances known today, that Interfor has sufficient working capital and liquidity to fund operating and capital requirements for the foreseeable future. For the three months ended Mar. 31, Dec. 31, Mar. 31, Thousands of Dollars 2021 2020 2020 Net debt Net debt, period opening $(75,432)$88,705 $224,860 Issuance of Senior Secured Notes - - 140,770 Revolving Term Line net repayments - - (59)Impact on U.S. Dollar denominated debt from (strengthening) weakening CAD (4,710) (18,210) 25,139 Increase in cash and cash equivalents (162,167) (165,294) (68,984)Impact on U.S. Dollar denominated cash and cash equivalents from strengthening CAD 6,343 19,367 310 Net debt, period ending $(235,966)$(75,432)$322,036 On March 26, 2020, the Company issued US$50,000,000 of Series F Senior Secured Notes, bearing interest at 3.34%, and US$50,000,000 of Series G Senior Secured Notes, bearing interest at 3.25%. Each series of these Senior Secured Notes have equal payments of US$16,667,000 due on each of March 26, 2028, 2029 and on maturity in 2030. Capital Resources The following table summarizes Interfor’s credit facilities and availability as of March 31, 2021: Revolving Senior Term Secured Thousands of Canadian Dollars Line Notes Total Available line of credit and maximum borrowing available $350,000 $377,250 $727,250 Less: Drawings - 377,250 377,250 Outstanding letters of credit included in line utilization 19,613 - 19,613 Unused portion of facility $330,387 $- 330,387 Add: Cash and cash equivalents 613,216 Available liquidity at March 31, 2021 $943,603 Interfor’s Revolving Term Line matures in March 2024 and its Senior Secured Notes have maturities principally in the years 2024-2030. As of March 31, 2021, the Company had commitments for capital expenditures totaling $75.7 million for both maintenance and discretionary capital projects. Non-GAAP Measures This release makes reference to the following non-GAAP measures: Adjusted net earnings, Adjusted net earnings per share, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net debt to invested capital, Operating cash flow per share (before working capital changes), and Annualized return on capital employed which are used by the Company and certain investors to evaluate operating performance and financial position. These non-GAAP measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. The following table provides a reconciliation of these non-GAAP measures to figures as reported in the Company’s audited consolidated financial statements (unaudited for interim periods) prepared in accordance with IFRS: For the three months ended Mar. 31, Mar. 31, Dec. 31, Thousands of Canadian Dollars except number of shares and per share amounts 2021 2020 2020 Adjusted Net Earnings Net earnings $264,487 $6,309 $149,148 Add: Asset write-downs and restructuring costs 142 371 1,793 Other foreign exchange loss 2,346 849 8,162 Long term incentive compensation expense (recovery) 7,670 (8,946) 10,254 Other (income) expense (1,996) 115 92 Post closure wind-down costs 224 - 949 Income tax effect of above adjustments (2,229) 2,043 (5,652)Adjusted net earnings $270,644 $741 $164,746 Weighted average number of shares - basic ('000) 65,927 67,260 66,687 Adjusted net earnings per share $4.11 $0.01 $2.47 Adjusted EBITDA Net earnings $264,487 $6,309 $149,148 Add: Depreciation of plant and equipment 21,474 20,061 21,947 Depletion and amortization of timber, roads and other 6,968 10,530 10,511 Finance costs 4,524 4,096 1,891 Income tax expense 86,256 3,205 43,889 EBITDA 383,709 44,201 227,386 Add: Long term incentive compensation expense (recovery) 7,670 (8,946) 10,254 Other foreign exchange loss 2,346 849 8,162 Other (income) expense (1,996) 115 92 Asset write-downs and restructuring costs 142 371 1,793 Post closure wind-down costs 224 - 947 Adjusted EBITDA $392,095 $36,590 $248,634 Sales $849,307 $479,646 $662,301 Adjusted EBITDA margin 46.2% 7.6% 37.5% Net debt to invested capital Net debt Total debt $377,250 $425,610 $381,960 Cash and cash equivalents (613,216) (103,574) (457,392)Total net debt $(235,966)$322,036 $(75,432)Invested capital Net debt $(235,966)$322,036 $(75,432)Shareholders' equity 1,322,222 882,917 1,080,312 Total invested capital $1,086,256 $1,204,953 $1,004,880 Net debt to invested capital1 (21.7)% 26.7% (7.5)% Operating cash flow per share (before working capital changes) Cash provided by operating activities $285,080 $19,319 $229,947 Cash used in (generated from) operating working capital 92,604 19,109 (26,514)Operating cash flow (before working capital changes) $377,684 $38,428 $203,433 Weighted average number of shares - basic ('000) 65,927 67,260 66,687 Operating cash flow per share (before working capital changes) $5.73 $0.57 $3.05 Annualized return on capital employed Net earnings $264,487 $6,309 $149,148 Add: Finance costs 4,524 4,096 1,891 Income tax expense 86,256 3,205 43,889 Earnings before income taxes and finance costs $355,267 $13,610 $194,928 Capital employed Total assets $2,159,692 $1,569,508 $1,843,187 Current liabilities (263,526) (149,748) (189,726)Less: Current portion of long term debt 6,811 - 6,897 Current portion of lease liabilities 12,169 11,819 11,745 Capital employed, end of period $1,915,146 $1,431,579 $1,672,103 Capital employed, beginning of period 1,672,103 1,214,375 1,555,212 Average capital employed $1,793,624 $1,322,977 $1,613,657 Earnings before income taxes and finance costs divided by average capital employed 19.8% 1.0% 12.1%Annualization factor 4.0 4.0 4.0 Annualized return on capital employed 79.2% 4.0% 48.4% Note: 1 Net debt to invested capital as of the period end. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the three months ended March 31, 2021 and 2020 (unaudited)(thousands of Canadian Dollars except earnings per share)Three Months Three Months Mar. 31, 2021 Mar. 31, 2020 Sales$849,307 $479,646 Costs and expenses: Production 432,167 423,228 Selling and administration 12,879 9,228 Long term incentive compensation expense (recovery) 7,670 (8,946) U.S. countervailing and anti-dumping duty deposits 12,390 10,600 Depreciation of plant and equipment 21,474 20,061 Depletion and amortization of timber, roads and other 6,968 10,530 493,548 464,701 Operating earnings before restructuring costs 355,759 14,945 Restructuring costs (142) (371)Operating earnings 355,617 14,574 Finance costs (4,524) (4,096 )Other foreign exchange loss (2,346) (849)Other (income) expense 1,996 (115 ) (4,874) (5,060) Earnings before income taxes 350,743 9,514 Income tax expense Current 83,173 329 Deferred 3,083 2,876 86,256 3,205 Net earnings$264,487 $6,309 Net earnings per share Basic$4.01 $0.09 Diluted$4.00 $0.09 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the three months ended March 31, 2021 and 2020 (unaudited)(thousands of Canadian Dollars)Three Months Three Months Mar. 31, 2021 Mar. 31, 2020 Net earnings$264,487 $6,309 Other comprehensive income: Items that will not be recycled to Net earnings: Defined benefit plan actuarial gain (loss), net of tax 4,472 (713) Items that are or may be recycled to Net earnings: Foreign currency translation differences for foreign operations, net of tax (8,887) 46,083 Total other comprehensive income (loss), net of tax (4,415) 45,370 Comprehensive income $260,072 $51,679 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the three months ended March 31, 2021 and 2020 (unaudited)(thousands of Canadian Dollars)Three Months Three Months Mar. 31, 2021 Mar. 31, 2020 Cash provided by (used in): Operating activities: Net earnings $264,487 $6,309 Items not involving cash: Depreciation of plant and equipment 21,474 20,061 Depletion and amortization of timber, roads and other 6,968 10,530 Deferred income tax expense 3,083 2,876 Current income tax expense 83,173 329 Finance costs 4,524 4,096 Other assets (431) 936 Reforestation liability 496 2,766 Provisions and other liabilities 495 (10,293) Stock options 196 256 Unrealized foreign exchange loss 3,011 441 Other (income) expense (1,996) 115 Income taxes (paid) refunded(7,796) 6 377,684 38,428 Cash generated from (used in) operating working capital: Trade accounts receivable and other (67,859) (23,413) Inventories (24,352) 1,355 Prepayments (3,348) (2,113) Trade accounts payable and provisions 2,955 5,062 285,080 19,319 Investing activities: Additions to property, plant and equipment (26,331) (24,872) Additions to roads and bridges (2,885) (2,704) Acquisitions (73,630) (56,606) Proceeds on disposal of plant and equipment 5,693 162 Net proceeds from (additions to) deposits and other assets 157 (198) (96,996) (84,218) Financing activities: Issuance of share capital, net of expenses 1,945 - Share repurchases (20,303) - Interest payments (4,258) (3,758) Lease liability payments (3,301) (2,934) Debt refinancing costs - (136) Operating line net repayments - (59) Additions to long term debt - 140,770 (25,917) 133,883 Foreign exchange loss on cash and cash equivalents held in a foreign currency (6,343) (310 )Increase in cash 155,824 68,674 Cash and cash equivalents, beginning of period 457,392 34,900 Cash and cash equivalents, end of period$613,216 $103,574 CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONMarch 31, 2021 and December 31, 2020 (unaudited)(thousands of Canadian Dollars) Mar. 31, 2021 Dec. 31, 2020 Assets Current assets: Cash and cash equivalents$613,216 $457,392 Trade accounts receivable and other 182,436 117,371 Income taxes receivable 179 169 Inventories 191,169 160,188 Prepayments 21,027 17,970 1,008,027 753,090 Employee future benefits 4,880 106 Deposits and other assets 48,770 48,957 Right of use assets 36,673 35,471 Property, plant and equipment 778,831 729,163 Roads and bridges 22,640 22,379 Timber licences 114,059 114,953 Goodwill and other intangible assets 145,128 138,838 Deferred income taxes 684 230 $2,159,692 $1,843,187 Liabilities and Shareholders’ Equity Current liabilities: Trade accounts payable and provisions$148,880 $150,509 Current portion of long term debt 6,811 6,897 Reforestation liability 16,551 16,181 Lease liabilities 12,169 11,745 Income taxes payable 79,115 4,394 263,526 189,726 Reforestation liability 30,281 29,735 Lease liabilities 29,129 28,541 Long term debt 370,439 375,063 Employee future benefits 9,734 11,137 Provisions and other liabilities 27,320 26,637 Deferred income taxes 107,041 102,036 Equity: Share capital 520,151 523,605 Contributed surplus 4,500 5,157 Translation reserve 40,959 49,846 Retained earnings 756,612 501,704 1,322,222 1,080,312 $2,159,692 $1,843,187 Approved on behalf of the Board: “L. Sauder”Director“T.V. Milroy”Director FORWARD-LOOKING STATEMENTS This release contains forward-looking information about the Company’s business outlook, objectives, plans, strategic priorities and other information that is not historical fact. A statement contains forward-looking information when the Company uses what it knows and expects today, to make a statement about the future. Statements containing forward-looking information may include words such as: will, could, should, believe, expect, anticipate, intend, forecast, projection, target, outlook, opportunity, risk or strategy. Readers are cautioned that actual results may vary from the forward-looking information in this release, and undue reliance should not be placed on such forward-looking information. Risk factors that could cause actual results to differ materially from the forward-looking information in this release are described in Interfor’s first quarter and annual Management’s Discussion and Analysis under the heading “Risks and Uncertainties”, which are available on www.interfor.com and under Interfor’s profile on www.sedar.com. Material factors and assumptions used to develop the forward-looking information in this release include volatility in the selling prices for lumber, logs and wood chips; the Company’s ability to compete on a global basis; the availability and cost of log supply; natural or man-made disasters; currency exchange rates; changes in government regulations; the availability of the Company’s allowable annual cut (“AAC”); claims by and treaty settlements with Indigenous peoples; the Company’s ability to export its products; the softwood lumber trade dispute between Canada and the U.S.; stumpage fees payable to the Province of British Columbia (“B.C.”); environmental impacts of the Company’s operations; labour disruptions; information systems security; and the existence of a public health crisis (such as the current COVID-19 pandemic). Unless otherwise indicated, the forward-looking statements in this release are based on the Company’s expectations at the date of this release. Interfor undertakes no obligation to update such forward-looking information, except as required by law. ABOUT INTERFOR Interfor is a growth-oriented forest products company with operations in Canada and the United States. The Company has annual production capacity of approximately 3.2 billion board feet and offers a diverse line of lumber products to customers around the world. For more information about Interfor, visit our website at www.interfor.com. The Company’s unaudited condensed consolidated interim financial statements and Management’s Discussion and Analysis for Q1’21 are available at www.sedar.com and www.interfor.com. There will be a conference call on Friday, May 7, 2021 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company’s release of its first quarter 2021 financial results. The dial-in number is 1-833-297-9919. The conference call will also be recorded for those unable to join in for the live discussion and will be available until June 7, 2021. The number to call is 1-855-859-2056, Passcode 4759584. For further information:Richard Pozzebon, Senior Vice President and Chief Financial Officer(604) 422-3400
Germany has opposed the US call to expand access to Covid-19vaccines for poor countries by removing patent protections on the jabs. Activists and humanitarian institutions cheered after the US reversed course on Wednesday and called for a waiver of intellectual property protections on the vaccine. The decision ultimately is up to the 164-member World Trade Organisation, and if just one country votes against a waiver, the proposal will fail.
Arsenal’s Europa League exit to Villarreal drew strong criticism from former Gunners defenders Lee Dixon and Martin Keown, with the latter branding the result an “embarrassment” for Mikel Arteta. Arsenal face a first season without European football in 25 years after drawing a blank in their semi-final second leg against Unai Emery’s Villarreal.
Sema4, a patient-centered health intelligence company leveraging AI and machine learning to derive data-driven insights, and CM Life Sciences (Nasdaq: CMLF), a special purpose acquisition company, or SPAC, sponsored by affiliates of Casdin Capital, LLC and Corvex Management LP, today announced the filing of the preliminary proxy statement related to their proposed business combination.
HOUSTON, May 06, 2021 (GLOBE NEWSWIRE) -- Occidental (NYSE:OXY) said today that its Board of Directors has declared a regular quarterly dividend of $0.01 per share on common stock payable on July 15, 2021, to stockholders of record as of June 10, 2021. About Occidental Occidental is an international energy company with assets in the United States, Middle East, Africa and Latin America. We are one of the largest oil producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Our Oxy Low Carbon Ventures subsidiary is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. We are committed to using our global leadership in carbon management to advance a lower-carbon world. Visit oxy.com for more information. ContactsMediaInvestorsEric MosesJeff Alvarez713email@example.com firstname.lastname@example.org
Herc Holdings Inc. (NYSE: HRI) today announced that its senior management will participate in the Goldman Sachs Industrials & Materials Conference on Wednesday, May 12, 2021. Larry Silber, president and chief executive officer and Mark Irion, senior vice president and chief financial officer, will participate in a "fireside chat" that will be webcast live at 9:40 AM Eastern Daylight Time. The presentation will be archived on the Company’s website for 30 days.
South Carolina plans to stop some of its federally-funded unemployment benefits to address "ongoing workforce shortages."
Roku announced earnings after the closing bell on Thursday.
The US military has no plans to shoot down an out -of-control Chinese rocket now hurtling towards Earth, Defense Secretary Lloyd Austin said Thursday.
What happened Shares of Evolent Health (NYSE: EVH) declined by 7.7% on Thursday, on a day when the S&P 500 index ended higher by 0.8%. That came in the wake of the company's first-quarter earnings release.
HOUSTON, May 06, 2021 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported first quarter 2021 financial and operating results and material subsequent events following the end of the quarter through the date of this release. Net cash provided by operations of $5.6 million for the three months ended March 31, 2021, with free cash flow (FCF) of $5.1 million for the same period.Realized gas prices of $2.57/Mcf, (excluding hedges) and $2.61/Mcf (including hedges) for the three months ended March 31, 2021.During the first three months of 2021 the company returned a total of $0.5 million to shareholders through share repurchases representing a reduction of 0.5% of outstanding shares from December 31, 2020.Marcellus net revenue interest (NRI) gas production averaged 26.8 MMcf/d (Working Interest of 30.9 MMcf/d) for the first quarter. Working interest exit rate for the first quarter was 30.8 MMcf/d.Auburn System gathered and delivered 17.5 Bcf gross (6.1 Bcf net to Epsilon’s interest) during the three months ended March 31, 2021 through the Auburn GGS which represents approximately 87% of maximum throughput as currently configured.Total revenues of $8.4 million; net income of $2.7 million; and EBITDA of $5.4 million for the quarter.Cash at quarter end of $17.9 million.Net income before tax of $3.9 million for the quarter.Operating expenses including SG&A was $1.26/Mcfe. Michael Raleigh, CEO, commented, “Despite having some production curtailed in the first quarter for adjacent drilling operations, Epsilon achieved its internal upstream revenue expectations as a result of very constructive prices for natural gas, particularly in February. Current natural gas prices in the Northeast, however, are somewhat challenged as the normal maintenance cycle for pipelines in the spring reduces capacity out of the basin. We expect this maintenance, and the associated relatively weaker local prices, to continue through the end of May. Natural gas production levels in Appalachia peaked above 34 Bcf/d in early January 2021 but have since declined and remained flat near the 33.5 Bcf. We do not expect growth in natural gas production in Appalachia or the total US market this year; however, we do expect strong demand to continue from LNG and Mexican export markets. It is likely that the market will price natural gas higher this summer in an effort to balance the market and build a comfortable inventory level prior to next winter. Epsilon participated with its 22% interest in the drilling of an extended lateral targeting both the upper and lower Marcellus in May. This well is currently being completed and is expected to turn-in-line in early July.” Financial and Operating Results Three months ended March 31, 2021 2020 Revenues Natural gas revenue $6,332,099 $4,019,764 Volume (MMcf) 2,466 2,727 Avg. Price ($/Mcf) $2.57 $1.47 PA Exit Rate (MMcfpd) 32.8 33.1 Oil and other liquids revenue $107,056 $91,380 Volume (MBO) 3.7 3.1 Avg. Price ($/Bbl) $28.58 $29.22 Gathering system revenue $2,002,157 $2,316,702 Total Revenues $8,441,312 $6,427,846 Capital Expenditures Epsilon’s capital expenditures were $0.9 million for the three months ended March 31, 2021. This capital was mainly related to the completion of one gross (0.03 net to EPSN) well and the drilling of one gross (.22 net to EPSN) well during the 1st quarter of 2021, as well as expenditures for the Auburn Gas Gathering system. Marcellus Operational Guidance During the first quarter of 2021, the operator completed and turned in line one gross (0.03 net to EPSN). Additionally, the operator spud and drilled one gross (0.22 net to EPSN) wells. It is expected that this well will be completed in May and turned to production early July. First Quarter Results Epsilon generated revenues of $8.4 million for the three months ended March 31, 2021 compared to $6.4 million for the three months ended March 31, 2020. Realized natural gas prices averaged $2.56/Mcf (excluding hedges) for Marcellus Upstream operations in the first quarter of 2021. Operating expenses for Marcellus Upstream operations in the first quarter were $1.4 million. Auburn System gathered and delivered 17.5 Bcf gross of natural gas during the quarter as compared to 15.3 Bcfe during the fourth quarter of 2020. Primary gathering volumes declined 7.3% quarter over quarter to 12.2 Bcfe. Imported cross-flow volumes increased 15.3% to 5.3 Bcfe. Epsilon reported net after tax income of $2.7 million attributable to common shareholders or $0.11 per basic and diluted common share outstanding for the three months ended March 31, 2021, compared to net income of $0.3 million, and $0.01 per basic and diluted common share outstanding for the three months ended March 31, 2020. For the three months ended March 31, 2021, Epsilon's Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization ("Adjusted EBITDA") was $5.4 million as compared to $4.6 million for the three months ended March 31, 2020. About Epsilon Epsilon Energy Ltd. is a North American onshore natural gas production and midstream company with a current focus on the Marcellus Shale of Pennsylvania. Forward-Looking Statements Certain statements contained in this news release constitute forward looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, ‘may”, “will”, “project”, “should”, ‘believe”, and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated. Forward-looking statements are based on reasonable assumptions, but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon. The reserves and associated future net revenue information set forth in this news release are estimates only. In general, estimates of oil and natural gas reserves and the future net revenue therefrom are based upon a number of variable factors and assumptions, such as production rates, ultimate reserves recovery, timing and amount of capital expenditures, ability to transport production, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially from actual results. For those reasons, estimates of the oil and natural gas reserves attributable to any particular group of properties, as well as the classification of such reserves and estimates of future net revenues associated with such reserves prepared by different engineers (or by the same engineers at different times) may vary. The actual reserves of the Company may be greater or less than those calculated. In addition, the Company's actual production, revenues, development and operating expenditures will vary from estimates thereof and such variations could be material. Statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and can be profitably produced in the future. There is no assurance that forecast price and cost assumptions will be attained and variances could be material. Proved reserves are those reserves which are most certain to be recovered. There is at least a 90% probability that the quantities actually recovered will equal or exceed the estimated proved reserves. Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable) to which they are assigned. Proved undeveloped reserves are those reserves that can be estimated with a high degree of certainty and are expected to be recovered from known accumulations where a significant expenditure is required to render them capable of production. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties due to the effects of aggregation. The estimated future net revenues contained in this news release do not necessarily represent the fair market value of the Company's reserves. Contact Information: 281-670-0002 Michael RaleighChief Executive OfficerMichael.Raleigh@EpsilonEnergyLTD.com Special note for news distribution in the United States The securities described in the news release have not been registered under the United Stated Securities Act of 1933, as amended, (the “1933 Act”) or state securities laws. Any holder of these securities, by purchasing such securities, agrees for the benefit of Epsilon Energy Ltd. (the “Corporation”) that such securities may not be offered, sold, or otherwise transferred only (A) to the Corporation or its affiliates; (B) outside the United States in accordance with applicable state laws and either (1) Rule 144(as) under the 1933 Act or (2) Rule 144 under the 1933 Act, if applicable. EPSILON ENERGY LTD.Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (All amounts stated in US$) Three months ended March 31, 2021 2020Revenues from contracts with customers: Gas, oil, NGLs and condensate revenue $6,439,155 $4,111,144 Gas gathering and compression revenue 2,002,157 2,316,702 Total revenue 8,441,312 6,427,846 Operating costs and expenses: Lease operating expenses 1,594,188 2,047,767 Gathering system operating expenses 190,947 97,778 Development geological and geophysical expenses 11,539 2,629 Depletion, depreciation, amortization, and accretion 1,682,860 2,414,376 Impairment of proved properties — 1,760,000 General and administrative expenses: Stock based compensation expense 202,499 173,919 Other general and administrative expenses 1,327,161 1,008,113 Total operating costs and expenses 5,009,194 7,504,582 Operating income (loss) 3,432,118 (1,076,736) Other income (expense): Interest income 7,813 21,529 Interest expense (27,073) (28,006)Gain on derivative contracts 465,341 1,721,018 Other income (expense) 1,941 (2,225)Other income, net 448,022 1,712,316 Net income before income tax expense 3,880,140 635,580 Income tax expense 1,144,573 325,281 NET INCOME $2,735,567 $310,299 Currency translation adjustments 242 (114)NET COMPREHENSIVE INCOME $2,735,809 $310,185 Net income per share, basic $0.11 $0.01 Net income per share, diluted $0.11 $0.01 Weighted average number of shares outstanding, basic 23,947,222 26,565,084 Weighted average number of shares outstanding, diluted 24,030,104 26,565,084 EPSILON ENERGY LTD.Unaudited Condensed Consolidated Balance Sheets (All amounts stated in US$) March 31, December 31, 2021 2020ASSETS Current assets Cash and cash equivalents $17,851,587 $13,270,913 Accounts receivable 3,462,548 3,917,288 Fair value of derivatives 401,141 — Prepaid income taxes — 89,285 Other current assets 339,209 500,583 Total current assets 22,054,485 17,778,069 Non-current assets Property and equipment: Oil and gas properties, successful efforts method Proved properties 134,831,162 133,902,723 Unproved properties 21,510,765 21,552,063 Accumulated depletion, depreciation, amortization and impairment (99,469,225) (98,200,111)Total oil and gas properties, net 56,872,702 57,254,675 Gathering system 42,215,928 42,202,644 Accumulated depletion, depreciation, amortization and impairment (32,480,738) (32,101,624)Total gathering system, net 9,735,190 10,101,020 Land 637,764 637,764 Buildings and other property and equipment, net 335,455 338,419 Total property and equipment, net 67,581,111 68,331,878 Other assets: Restricted cash 566,540 565,858 Prepaid drilling costs 223 379 Total non-current assets 68,147,874 68,898,115 Total assets $90,202,359 $86,676,184 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable trade $725,168 $1,195,479 Gathering fees payable 780,096 909,768 Royalties payable 1,414,126 1,155,698 Income taxes payable 247,513 — Accrued capital expenditures 724,714 139,766 Other accrued liabilities 786,130 1,002,935 Asset retirement obligations 108,258 106,734 Total current liabilities 4,786,005 4,510,380 Non-current liabilities Asset retirement obligations 3,042,871 3,043,509 Deferred income taxes 10,908,211 10,102,852 Total non-current liabilities 13,951,082 13,146,361 Total liabilities 18,737,087 17,656,741 Commitments and contingencies (Note 9) Shareholders' equity Common shares, no par value, unlimited shares authorized and 23,985,799 issued and 23,862,599 outstanding at March 31, 2021 and 23,985,799 shares issued and outstanding at December 31, 2020. 131,730,401 131,730,401 Treasury shares, 123,200 at March 31, 2021 (492,479) — Additional paid-in capital 8,081,618 7,879,119 Accumulated deficit (77,675,157) (80,410,724)Accumulated other comprehensive income 9,820,889 9,820,647 Total shareholders' equity 71,465,272 69,019,443 Total liabilities and shareholders' equity $90,202,359 $86,676,184 EPSILON ENERGY LTD.Unaudited Condensed Consolidated Statements of Cash Flows (All amounts stated in US$) Three months ended March 31, 2021 2020Cash flows from operating activities: Net income $2,735,567 $310,299 Adjustments to reconcile net income to net cash provided by operating activities: Depletion, depreciation, amortization, and accretion 1,682,860 2,414,376 Impairment of proved properties — 1,760,000 Gain on derivative contracts (465,341) (1,721,018)Cash received from settlements of derivative contracts 64,200 1,345,942 Settlement of asset retirement obligation (3,483) — Stock-based compensation expense 202,499 173,919 Deferred income tax expense (benefit) 805,359 (69,478)Changes in assets and liabilities: Accounts receivable 454,740 530,156 Prepaid income taxes and other current assets 161,374 478,540 Accounts payable, royalties payable and other accrued liabilities (349,705) (9,215)Income taxes payable 336,798 — Net cash provided by operating activities 5,624,868 5,213,521 Cash flows from investing activities: Additions to unproved oil and gas properties (23,702) (61,978)Additions to proved oil and gas properties (481,021) (2,045,439)Additions to gathering system properties (40,963) (101,473)Additions to land, buildings and property and equipment (5,745) (145,640)Prepaid drilling costs 156 244 Net cash used in investing activities (551,275) (2,354,286)Cash flows from financing activities: Buyback of common shares (492,479) (1,499,586)Net cash used in financing activities (492,479) (1,499,586)Effect of currency rates on cash, cash equivalents and restricted cash 242 (114)Increase in cash, cash equivalents and restricted cash 4,581,356 1,359,535 Cash, cash equivalents and restricted cash, beginning of period 13,836,771 14,613,711 Cash, cash equivalents and restricted cash, end of period $18,418,127 $15,973,246 Supplemental cash flow disclosures: Income taxes paid $— $— Interest paid $29,562 $28,006 Non-cash investing activities: Change in unproved properties accrued in accounts payable and accrued liabilities $(65,000) $— Change in proved properties accrued in accounts payable and accrued liabilities $468,972 $(903,544)Change in gathering system accrued in accounts payable and accrued liabilities $(27,679) $(21,026)Asset retirement obligation asset additions and adjustments $(21,554) $3,937 EPSILON ENERGY LTD.Adjusted EBITDA Reconciliation (All amounts stated in US$) MDA_Adjusted_EBITDA Three months ended March 31, 2021 2020 Net income $2,735,567 $310,299 Add Back: Net interest expense 19,260 6,477 Income tax expense 1,144,573 325,281 Depreciation, depletion, amortization, and accretion 1,682,860 2,414,376 Impairment expense — 1,760,000 Stock based compensation expense 202,499 173,919 Gain on derivative contracts net of cash received or paid on settlement (401,141) (375,076) Foreign currency translation loss 332 2,225 Adjusted EBITDA $5,383,950 $4,617,501 Epsilon defines Adjusted EBITDA as earnings before (1) net interest expense, (2) taxes, (3) depreciation, depletion, amortization and accretion expense, (4) impairments of natural gas and oil properties, (5) non-cash stock compensation expense, (6) gain or loss on derivative contracts net of cash received or paid on settlement, and (7) other income. Adjusted EBITDA is not a measure of financial performance as determined under U.S. GAAP and should not be considered in isolation from or as a substitute for net income or cash flow measures prepared in accordance with U.S. GAAP or as a measure of profitability or liquidity. Additionally, Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Epsilon has included Adjusted EBITDA as a supplemental disclosure because its management believes that EBITDA provides useful information regarding its ability to service debt and to fund capital expenditures. It further provides investors a helpful measure for comparing operating performance on a "normalized" or recurring basis with the performance of other companies, without giving effect to certain non-cash expenses and other items. This provides management, investors and analysts with comparative information for evaluating the Company in relation to other natural gas and oil companies providing corresponding non-U.S. GAAP financial measures or that have different financing and capital structures or tax rates. These non-U.S. GAAP financial measures should be considered in addition to, but not as a substitute for, measures for financial performance prepared in accordance with U.S. GAAP. EPSILON ENERGY LTD.Free Cash Flow Reconciliation (All amounts stated in US$) Three months ended March 31 2021 2020Net cash provided by operating activities $5,624,868 $5,213,521 Less: Net cash used in investing activities (Capital Expenditures) (551,275) (2,354,286)Free cash flow $5,073,593 $2,859,235 Epsilon defines Free cash flow (“FCF”) as net cash provided by operating activities in the period minus payments for property and equipment made in the period. FCF is considered a non-GAAP financial measure under the SEC’s rules. Management believes, however, that FCF is an important financial measure for use in evaluating the Company’s financial performance, as it measures our ability to generate additional cash from our business operations. FCF should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of FCF is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations, payments made for business acquisitions, or amounts spent to buys back shares. Therefore, we believe it is important to view FCF as supplemental to our entire statement of cash flows.
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