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Category: Energy

  • MIL-OSI: Enerflex Ltd. Announces First Quarter 2025 Financial and Operational Results

    Source: GlobeNewswire (MIL-OSI)

    ADJUSTED EBITDA OF $113 MILLION AND FREE CASH FLOW OF $85 MILLION

    EI CONTRACT BACKLOG AND ES BACKLOG OF $1.5 BILLION AND $1.2 BILLION, RESPECTIVELY, PROVIDING SOLID OPERATIONAL VISIBILITY

    REDUCED BANK ADJUSTED NET DEBT-TO-EBITDA RATIO TO 1.3x1 AT THE END OF Q1/25

    CALGARY, Alberta, May 08, 2025 (GLOBE NEWSWIRE) — Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) (“Enerflex” or the “Company”) today reported its financial and operational results for the three months ended March 31, 2025.

    All amounts presented are in U.S. Dollars unless otherwise stated.

    Q1/25 FINANCIAL AND OPERATIONAL OVERVIEW

    • Generated revenue of $552 million compared to $638 million in Q1/24 and $561 million in Q4/24.
      • Lower revenue compared with the prior year is primarily attributed to upfront revenue recognized in the Energy Infrastructure (“EI”) product line in Q1/24 on the extension and modification of an existing EI contract previously accounted for as an operating lease in the Eastern Hemisphere (“EH”) region.
    • Recorded gross margin before depreciation and amortization of $161 million, or 29% of revenue, compared to $119 million, or 19% of revenue in Q1/24 and $174 million, or 31% of revenue during Q4/24.
      • EI and After-Market Services (“AMS”) product lines generated 70% of consolidated gross margin before depreciation and amortization during Q1/25.
      • Engineered Systems (“ES”) gross margin before depreciation and amortization increased to 18% in Q1/25 compared to 5% in Q1/24 primarily due to costs recognized in Q1/24 related to an international ES project. ES gross margin before depreciation and amortization decreased compared to Q4/24 due to product mix.
    • Adjusted earnings before finance costs, income taxes, depreciation, and amortization (“adjusted EBITDA”) of $113 million compared to $69 million in Q1/24 and $121 million during Q4/24. The year-over-year increase in adjusted EBITDA was primarily due to costs recognized related to an international ES project in Q1/24.
    • SG&A was $57 million for the three months ended March 31, 2025, a decrease of $21 million from the same period in 2024, primarily due to decreased share-based compensation resulting from mark-to-market volatility on share prices in the first quarter of 2025, and lower costs and improved efficiencies, partially offset by executive transition costs.
    • Cash provided by operating activities was $96 million, which included net working capital recovery of $34 million. This compares to cash provided by operating activities of $101 million in Q1/24 and $113 million in Q4/24. Free cash flow increased to $85 million in Q1/25 compared to $72 million during Q1/24 and $76 million during Q4/24 primarily due to lower maintenance capital spend.
    • Return on capital employed (“ROCE”)2 increased to 14.2% in Q1/25 compared to 0.6% in Q1/24 and 10.3% in Q4/24. ROCE benefitted from an increase in trailing 12-month EBIT and lower average capital employed, predominantly due to a decline in net debt.
    • Invested $33 million in the business, consisting of $14 million in capital expenditures ($6 million for growth) and $19 million for expansion of an EI project in the EH region that will be accounted for as a finance lease.
    • Enerflex recorded ES bookings of $205 million during Q1/25, compared to $420 million during the same period of 2024. First quarter bookings were impacted by accelerated customer activity in the latter part of the fourth quarter of 2024, predominantly in the North America (“NAM”) segment, which resulted in select orders being pulled forward, and customers pausing some decisions on expenditures due to commodity price volatility and evolving market conditions. The Company continues to closely monitor activity levels and will adjust its business as appropriate. Enerflex’s backlog remains healthy at $1.2 billion at March 31, 2025.
    • Enerflex’s U.S. contract compression business continues to perform well, led by increasing natural gas production in the Permian.
      • This business generated revenue of $36 million and gross margin before depreciation and amortization of 72% during Q1/25 compared to $36 million and 75% in Q1/24 and $36 million and 78% during Q4/24.
      • Utilization remained stable at 94% across a fleet size of approximately 448,000 horsepower. Enerflex expects its North American contract compression fleet will grow to over 475,000 horsepower by the end of 2025.
    • The Board of Directors has declared a quarterly dividend of CAD$0.0375 per share, payable on June 3, 2025, to shareholders of record on May 21, 2025.

    BALANCE SHEET AND LIQUIDITY

    • Enerflex exited Q1/25 with net debt of $564 million, which included $75 million of cash and cash equivalents, a reduction of $179 million compared to Q1/24 and $52 million lower than the fourth quarter of 2024.
    • Enerflex’s bank-adjusted net debt-to-EBITDA ratio was approximately 1.3x at the end of Q1/25, down from 2.2x at the end of Q1/24 and 1.5x at the end of Q4/24.

    MANAGEMENT COMMENTARY

    Preet S. Dhindsa, Enerflex’s President & Chief Executive Officer (Interim), stated: “We are pleased to report another strong quarter of financial and operational results. Our Energy Infrastructure and After-Market Services business lines continue to deliver steady performance and reinforce Enerflex’s ability to generate sustainable returns across our global platform. Visibility for the ES product line remains solid, with backlog exiting Q1/25 at $1.2 billion, although we continue to closely monitor evolving market conditions and will adjust this business as appropriate. Despite increasing near-term risk and uncertainty, the fundamental drivers behind our business remain intact, namely global energy security and the shift toward low-emissions natural gas. Each of our business lines are delivering solid results and we believe all are well positioned to benefit from these fundamental drivers.”

    Joe Ladouceur, Enerflex’s Chief Financial Officer (Interim), stated, “Enerflex repaid an additional $74 million of debt during Q1/25 and reduced our leverage ratio to 1.3 times, reflective of strong operational execution and disciplined capital allocation. Our priorities are generating sustainable free cash flow, solidifying our balance sheet health, and positioning the Company for long-term growth and value creation. We’re sharpening our focus on boosting profitability, strengthening the resilience of our core operations, and ensuring Enerflex generates sustained, attractive returns for shareholders.”

    SUMMARY RESULTS

        Three months ended March 31,  
    ($ millions, except percentages)   2025     2024  
    Revenue   $ 552     $ 638  
    Gross margin     128       87  
    Gross margin as a percentage of revenue     23.2 %     13.6 %
    Selling, general and administrative expenses (“SG&A”)     57       78  
    Foreign exchange loss     –       1  
    Operating income     71       8  
    EBITDA1     105       47  
    EBIT1     66       3  
    EBT1     43       (23 )
    Net earnings (loss)     24       (18 )
    Long-term debt     639       853  
    Net debt2     564       743  
    Cash provided by operating activities     96       101  
                 
    Key Financial Performance Indicators (“KPIs”)            
    ES bookings3   $ 205     $ 420  
    ES backlog3     1,206       1,266  
    EI contract backlog4     1,497       1,639  
    Gross margin before depreciation and amortization (“Gross margin before D&A”)5     161       119  
    Gross margin before D&A as a percentage of revenue5     29.2 %     18.7 %
    Adjusted EBITDA6     113       69  
    Free cash flow7     85       72  
    Bank-adjusted net debt to EBITDA ratio7   1.3x     2.2x  
    Return on capital employed (“ROCE”)7,8     14.2 %     0.6 %

    1EBITDA is defined as earnings before finance costs, income taxes, depreciation and amortization. EBIT is defined as earnings before finance costs and income taxes. EBT is defined as earnings before taxes.
    2Net debt is defined as total long-term debt less cash and cash equivalent as presented in the Financial Statements.
    3Refer to the “ES Bookings and Backlog” section of the MD&A for further details.
    4Refer to the “EI Contract Backlog” section of the MD&A for further details.
    5Refer to the “Gross Margin by Product line” section of the MD&A for further details.
    6Refer to the “Adjusted EBITDA” section of the MD&A for further details.
    7Refer to the “Non-IFRS Measures” section of the MD&A for further details.
    8Determined by using the trailing 12-month period.

    Enerflex’s interim consolidated financial statements and notes (the “financial statements”) and Management’s Discussion and Analysis (“MD&A”) as at March 31, 2025, can be accessed on the Company’s website at www.enerflex.com and under the Company’s SEDAR+ and EDGAR profiles at www.sedarplus.ca and www.sec.gov/edgar, respectively.

    OUTLOOK

    Industry Update

    Enerflex continues to expect operating results to be underpinned by the highly contracted EI product line and the recurring nature of AMS, which together are expected to account for approximately 65% of gross margin before depreciation and amortization during 2025. The EI product line is supported by customer contracts expected to generate approximately $1.5 billion of revenue over their remaining terms.

    Visibility for the ES product line remains solid, with a backlog of approximately $1.2 billion as at March 31, 2025, the majority of which is expected to convert into revenue over the next 12 months. During 2025, ES gross margins are expected to align more closely with historical averages, reflecting both weaker domestic natural gas prices through much of 2024 and a shift in project mix.

    While near-term ES revenue is expected to remain steady, Enerflex continues to closely monitor evolving market conditions and increased near-term risk and uncertainty, including the impact of tariffs and lower oil prices, and will adjust its business as appropriate. The Company expects to be partially protected from the direct and indirect impact of tariffs through its diversified operations and on-going risk management efforts. Enerflex’s operations in the USA, Canada and Mexico are largely distinct in the client partners and projects they serve. USA is Enerflex’s largest operating region, generating 45% of consolidated revenue on a trailing-twelve month basis by destination of sale, and we believe the Company is well positioned to benefit from growth in domestic energy production. Enerflex’s operations in Canada and Mexico generated 11% and 3% of consolidated revenue on a trailing twelve-month basis, respectively.

    Despite increased near-term risk and uncertainty for the ES product line, recent domestic natural gas prices have been constructive, and the medium-term outlook for ES products and services remains attractive, supported by anticipated growth in natural gas and produced water volumes across Enerflex’s global footprint.

    Capital Spending

    Enerflex continues to target a disciplined capital program in 2025, with total capital expenditures of $110 million to $130 million. This includes a total of approximately $70 million for maintenance and property, plant and equipment (“PP&E”) capital expenditures and growth spending of $40 million to $60 million. Disciplined capital spending will focus on customer supported opportunities primarily in the USA. Notably, the fundamentals for contract compression in the USA remain strong, led by expected increases in natural gas production in the Permian basin and capital spending discipline from market participants. Enerflex will continue to make selective customer supported growth investments in this business.

    Capital Allocation

    Providing meaningful direct shareholder returns is a priority for Enerflex, reflected through the 50% increase of the Company’s third quarter 2024 dividend, and implementation of the Normal Course Issuer Bid (“NCIB”).

    The NCIB commenced on April 1, 2025 and will terminate no later than March 31, 2026. Under the NCIB, the Company is authorized to acquire up to a maximum of 6,159,695 Common Shares or approximately 5% of its public float as at the application date, for cancellation. During the month of April 2025, Enerflex repurchased 690,500 Common Shares at an average price of CAD$10.15 per share.

    Going forward, capital allocation decisions will be based on delivering value to Enerflex shareholders and measured against Enerflex’s ability to maintain balance sheet strength. In addition to increases in the Company’s dividend, share repurchases, and disciplined growth capital spending, Enerflex will also consider further debt reduction to strengthen its balance sheet and lower net finance costs. Unlocking greater financial flexibility positions the Company to respond to evolving market conditions and capitalize on opportunities to optimize its debt stack.

    DIVIDEND DECLARATION

    Enerflex is committed to paying a sustainable quarterly cash dividend to shareholders. The Board of Directors has declared a quarterly dividend of CAD$0.0375 per share, payable on June 3, 2025, to shareholders of record on May 21, 2025.

    CONFERENCE CALL AND WEBCAST DETAILS

    Investors, analysts, members of the media, and other interested parties, are invited to participate in a conference call and audio webcast on Thursday, May 8, 2025 at 8:00 a.m. (MDT), where members of senior management will discuss the Company’s results. A question-and-answer period will follow.

    To participate, register at https://register-conf.media-server.com/register/BIbf48293aea6d4b518127ab7e050c6058. Once registered, participants will receive the dial-in numbers and a unique PIN to enter the call. The audio webcast of the conference call will be available on the Enerflex website at www.enerflex.com under the Investors section or can be accessed directly at https://edge.media-server.com/mmc/p/oqas9bdk.

    NON-IFRS MEASURES

    Throughout this news release and other materials disclosed by the Company, Enerflex employs certain measures to analyze its financial performance, financial position, and cash flows, including net debt-to-EBITDA ratio and bank-adjusted net debt-to-EBITDA ratio. These non-IFRS measures are not standardized financial measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, non-IFRS measures should not be considered more meaningful than generally accepted accounting principles measures as indicators of Enerflex’s performance. Refer to “Non-IFRS Measures” of Enerflex’s MD&A for the three months ended March 31, 2025, for information which is incorporated by reference into this news release and can be accessed on Enerflex’s website at www.enerflex.com and under the Company’s SEDAR+ and EDGAR profiles at www.sedarplus.ca and www.sec.gov/edgar, respectively.

    ADJUSTED EBITDA

        Three months ended March 31, 2025  
    ($ millions)   NAM     LATAM     EH     Total  
    Net earnings1                     $ 24  
    Income taxes1                       19  
    Net finance costs1,2                       23  
    EBIT3   $ 38     $ 19     $ 12     $ 66  
    Depreciation and Amortization     16       11       12       39  
    EBITDA   $ 54     $ 30     $ 24     $ 105  
    Share-based compensation     (2 )     (1 )     –       (3 )
    Impact of finance leases                        
    Principal payments received     –       –       8       8  
    Loss on redemption options3                       3  
    Adjusted EBITDA   $ 52     $ 29     $ 32     $ 113  

    1The Company included net earnings (loss), income taxes, and net finance costs on a consolidated basis to reconcile to EBIT.
    2Net finance costs are considered corporate expenditures and therefore have not been allocated to reporting segments.
    3EBIT includes $3 million loss on redemption options associated with the Notes. Debt is managed within Corporate and is not allocated to reporting segments.

        Three months ended March 31, 2024  
    ($ millions)   NAM     LATAM     EH     Total  
    Net loss1                     $ (18 )
    Income taxes1                       (5 )
    Net finance costs1,2                       26  
    EBIT   $ 33     $ 5     $ (35 )   $ 3  
    Depreciation and amortization     18       10       16       44  
    EBITDA   $ 51     $ 15     $ (19 )   $ 47  
    Restructuring, transaction and integration costs     3       2       1       6  
    Share-based compensation     3       1       2       6  
    Impact of finance leases                        
    Upfront gain     –       –       (3 )     (3 )
    Principal payments received     –       –       13       13  
    Adjusted EBITDA   $ 57     $ 18     $ (6 )   $ 69  

    1The Company included net earnings (loss), income taxes, and net finance costs on a consolidated basis to reconcile to EBIT.
    2Net finance costs are considered corporate expenditures and therefore have not been allocated to reporting segments.

    FREE CASH FLOW

    The Company defines free cash flow as cash provided by (used in) operating activities, less total capital expenditures (growth and maintenance) for EI assets – operating leases and PP&E, mandatory debt repayments, and lease payments, while proceeds on disposals of PP&E and EI assets – operating leases are added back. Free cash flow may not be comparable to similar measures presented by other companies as it does not have a standardized meaning under IFRS. Management uses this non-IFRS measure to assess the level of free cash generated to fund other non-operating activities. These activities could include dividend payments, share repurchases, and non-mandatory debt repayments. Free cash flow is also used in calculating the dividend payout ratio.

        Three months ended March 31,  
    ($ millions, except percentages)   2025     2024  
    Cash provided by operating activities before changes in working capital and other1   $ 62     $ 18  
    Net change in working capital and other     34       83  
    Cash provided by operating activities2   $ 96     $ 101  
    Less:            
    Capital expenditures – Maintenance and PP&E     (8 )     (9 )
    Capital expenditures – Growth     (6 )     (8 )
    Mandatory debt repayments     –       (10 )
    Lease payments     (6 )     (4 )
    Add:            
    Proceeds on disposals of PP&E and EI assets – operating leases     9       2  
    Free cash flow   $ 85     $ 72  
    Dividends paid     6       2  
    Dividend payout ratio     7.1 %     2.8 %

    1Enerflex also refers to cash provided by operating activities before changes in working capital and other as “Funds from operations” or “FFO”.
    2Enerflex also refers to cash provided by operating activities as “Cashflow from operations” or “CFO”.

    BANK-ADJUSTED NET DEBT-TO-EBITDA RATIO

    The Company defines net debt as short- and long-term debt less cash and cash equivalents at period end, which is then divided by EBITDA for the trailing 12 months. In assessing whether the Company is compliant with the financial covenants related to its debt instruments, certain adjustments are made to net debt and EBITDA to determine Enerflex’s bank-adjusted net debt-to-EBITDA ratio. These adjustments and Enerflex’s bank-adjusted net-debt-to EBITDA ratio are calculated in accordance with, and derived from, the Company’s financing agreements.

    GROSS MARGIN BEFORE DEPRECIATION AND AMORTIZATION

    Gross margin before depreciation and amortization is a non-IFRS measure defined as gross margin excluding the impact of depreciation and amortization. The historical costs of assets may differ if they were acquired through acquisition or constructed, resulting in differing depreciation. Gross margin before depreciation and amortization is useful to present operating performance of the business before the impact of depreciation and amortization that may not be comparable across assets.

    ADVISORY REGARDING FORWARD-LOOKING INFORMATION

    This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” (and together with “forward-looking information”, “FLI”) within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are FLI. The use of any of the words “anticipate”, “believe”, “could”, “expect”, “future”, “may”, “potential”, “should”, “will” and similar expressions, (including negatives thereof) are intended to identify FLI.

    In particular, this news release includes (without limitation) FLI pertaining to:

    • expectations that the North American contract compression fleet will grow to over 475,000 horsepower by the end of 2025;
    • Enerflex’s ability to generate sustainable free cash flow, solidify its balance sheet health, and position the Company for long-term growth and value creation, and the time required in connection therewith, if at all;
    • disclosures under the heading “Outlook” including:
      • the highly contracted EI product line and the recurring nature of AMS will, together, account for approximately 65% of Enerflex’s gross margin before depreciation and amortization during 2025;
      • customer contracts within Enerflex’s EI product line will generate approximately $1.5 billion of revenue over their remaining terms;
      • a majority of the ES product line backlog of approximately $1.2 billion as at March 31, 2025, will convert into revenue over the next 12 months;
      • ES gross margins are expected to align more closely with historical averages while near term ES revenue will remain steady;
      • expectations that the Company will be partially protected from the direct and indirect impact of tariffs through its diversified operations and on-going risk management efforts;
      • in respect of the USA, expectations that the Company is well positioned to benefit from growth in domestic energy production;
      • natural gas and produced water volumes are anticipated to grow across Enerflex’s global footprint, supporting an attractive medium-term outlook for ES products and services;
      • total capital expenditures in 2025 will be $110 million to $130 million which includes approximately $70 million for maintenance and PP&E capital expenditures and growth spending of $40 million to $60 million;
      • capital spending will focus on customer supported opportunities primarily in the USA;
      • the fundamentals for contract compression in the USA remain strong, led by expected increases in natural gas production in the Permian basin and capital spending discipline from market participants;
      • considerations to further reduce debt to strengthen our balance sheet and lower net financing costs and that doing so will position the Company to respond to evolving market conditions and capitalize on opportunities to optimize its debt stack;
    • the ability of Enerflex to continue to pay a sustainable quarterly cash dividend; and
    • using free cash generated to fund other non-operating activities including dividend payments, share repurchases, and non-mandatory debt repayments, if at all.

    FLI reflect management’s current beliefs and assumptions with respect to such things as the impact of general economic conditions; commodity prices; the markets in which Enerflex’s products and services are used; general industry conditions, forecasts, and trends; changes to, and introduction of new, governmental regulations, laws, and income taxes; increased competition; availability of qualified personnel; political unrest and geopolitical conditions; and other factors, many of which are beyond the control of Enerflex. More specifically, Enerflex’s expectations in respect of its FLI are based on a number of assumptions, estimates and projections developed based on past experience and anticipated trends, including but not limited to:

    • the ability of the Company to adjust the business as appropriate in response to ES activity levels, evolving market conditions, and increased near-term risk and uncertainty, including the impact of tariffs and lower oil prices;
    • market dynamics, including increased energy demand, infrastructure development, and production activity, will drive growth in natural gas and produced water volumes across Enerflex’s global footprint;
    • market conditions, customer activity, and industry fundamentals will support stable demand across Enerflex’s product lines and geographic regions throughout 2025;
    • the high level of contractual commitments within the EI product line and the predictable, recurring revenue from AMS will continue;
    • existing customer contracts within the EI product line will remain in effect and with no material cancellations or renegotiations over their remaining terms;
    • the execution of projects within the ES product line will proceed as scheduled and the conversion to revenue will proceed without significant delays or cancellations;
    • no significant unforeseen cost overruns or project delays;
    • market conditions continuing to support the NCIB within the anticipated timeframe; and
    • Enerflex will maintain sufficient cash flow, profitability, and financial flexibility to support the ongoing payment of a sustainable quarterly cash dividend, subject to market conditions, operational performance, and board approval.

    As a result of the foregoing, actual results, performance, or achievements of Enerflex could differ and such differences could be material from those expressed in, or implied by, the FLI. The principal risks, uncertainties and other factors affecting Enerflex and its business are identified under the heading “Risk Factors” in: (i) Enerflex’s Annual Information Form for the year ended December 31, 2024, dated February 27, 2025; and (ii) Enerflex’s Annual Report dated February 26, 2025, copies of which are available under the electronic profile of the Company on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgar, respectively.

    The FLI included in this news release are made as of the date of this news release and are based on the information available to the Company at such time and, other than as required by law, Enerflex disclaims any intention or obligation to update or revise any FLI, whether as a result of new information, future events, or otherwise. This news release and its contents should not be construed, under any circumstances, as investment, tax, or legal advice.

    The outlook provided in this news release is based on assumptions about future events, including economic conditions and proposed courses of action, based on Management’s assessment of the relevant information currently available. The outlook is based on the same assumptions and risk factors set forth above and is based on the Company’s historical results of operations. The outlook set forth in this news release was approved by Management and the Board of Directors. Management believes that the prospective financial information set forth in this news release has been prepared on a reasonable basis, reflecting Management’s best estimates and judgments, and represents the Company’s expected course of action in developing and executing its business strategy relating to its business operations. The prospective financial information set forth in this news release should not be relied on as necessarily indicative of future results. Actual results may vary, and such variance may be material.

    ABOUT ENERFLEX

    Enerflex is a premier integrated global provider of energy infrastructure and energy transition solutions, deploying natural gas, low-carbon, and treated water solutions – from individual, modularized products and services to integrated custom solutions. With over 4,600 engineers, manufacturers, technicians, and innovators, Enerflex is bound together by a shared vision: Transforming Energy for a Sustainable Future. The Company remains committed to the future of natural gas and the critical role it plays, while focused on sustainability offerings to support the energy transition and growing decarbonization efforts.

    Enerflex’s common shares trade on the Toronto Stock Exchange under the symbol “EFX” and on the New York Stock Exchange under the symbol “EFXT”. For more information about Enerflex, visit www.enerflex.com.

    For investor and media enquiries, contact:

    Preet S. Dhindsa
    President and Chief Executive Officer (Interim)
    E-mail: PDhindsa@enerflex.com

    Joe Ladouceur
    Chief Financial Officer (Interim)
    E-mail: JLadouceur@enerflex.com

    Jeff Fetterly
    Vice President, Corporate Development and Capital Markets
    E-mail: JFetterly@enerflex.com

    The MIL Network –

  • MIL-OSI Economics: Pål Longva: Policy rate kept unchanged

    Source: Bank for International Settlements

    Presentation accompanying the speech

    Chart 1: Policy rate kept unchanged at 4.5 percent

    Norges Bank is tasked with keeping inflation low and stable. The operational target is inflation of close to 2 percent over time. We are also mandated to help keep employment as high as possible and to promote economic stability. 

    When inflation surged three years ago, we raised the policy rate sharply and rapidly. The policy rate has been held at 4.5 percent for more than a year. Inflation has fallen markedly from the peak but is still above target. Unemployment has edged up in recent years, albeit from a low level.

    At yesterday’s monetary policy meeting, the Monetary Policy and Financial Stability Committee decided to keep the policy rate unchanged at 4.5 percent.

    There is uncertainty about future economic developments, but the Committee’s current assessment of the outlook implies that the policy rate will most likely be reduced in the course of 2025.

    We have not made new forecasts for this monetary policy meeting but have assessed new information about economic developments against the forecasts presented in March. I will now provide an account of these assessments, starting with international developments.

    The global economy is marked by uncertainty about future trade policies. The US has raised tariffs on a range of goods, and some countries have responded with counter-measures. Trade barriers are now more extensive, and the global growth outlook appears to be weaker than assumed in the March Monetary Policy Report. While higher tariffs alone could push up inflation, lower global growth could dampen inflation.

    Interest rate expectations have fallen internationally since March. Oil and gas prices and prices for a number of other commodities have fallen.

    Global trade uncertainty has led to large movements in financial markets. Major equity indices fell sharply at the beginning of April but have since largely been reversed. Increased market stress and the fall in oil prices coincided with the krone weakening somewhat.

    Tariffs have also risen for Norway. The US has imposed a tariff of 10 percent on many Norwegian goods and has announced an increase to 15 percent. The direct effect on growth in the Norwegian economy is likely limited, but global trade uncertainty could dampen activity.

    Chart 2: Registered unemployment is little changed

    So far, activity in the Norwegian economy has been broadly as expected. Activity in the primary housing market appears to have picked up a little recently but is still at a low level. House prices have been lower than projected. The employment rate is high, and employment is somewhat higher than expected. In recent months, registered unemployment has shown little change.

    Chart 3: Inflation is still above target

    Since the end of 2024, inflation in Norway has risen somewhat. In March, consumer price inflation fell to 2.6 percent. Inflation adjusted for tax changes and excluding energy products was stable at 3.4 percent. This was in line with our expectations. Overall inflation is primarily being driven by the rise in prices for food and services. The wage norm for manufacturing in 2025 is close to the Bank’s projection of overall annual wage growth. High growth in business costs is likely to stoke inflation ahead. Since the March Report, the krone has been weaker than expected. A weaker krone means higher prices for imported goods.

    In summary, our assessment is that a restrictive monetary policy is still needed to bring inflation down to target within a reasonable time horizon. If the policy rate is lowered prematurely, prices may continue to rise rapidly. On the other hand, an overly tight monetary policy could restrict the economy more than needed to bring inflation down to target.

    Since March, developments in the Norwegian economy have been broadly as expected. Trade barriers have, however, become more extensive, and there is uncertainty about future trade policies. This may pull the interest rate outlook in different directions. On the one hand, the global growth outlook appears to be weaker, and oil prices have fallen. Norway’s main trading partners are now expected to make more rate cuts than previously. On the other hand, the krone has weakened somewhat and been weaker than assumed.

    The uncertainty surrounding the outlook is greater than normal, and the future path of the policy rate will depend on economic developments. The Committee will have received more information ahead of its next monetary policy meeting in June when new forecasts will also be presented.

    MIL OSI Economics –

  • MIL-OSI United Kingdom: expert reaction to the news that Ørsted are to discontinue the Hornsea 4 offshore wind project in its current form

    Source: United Kingdom – Executive Government & Departments

    Scientists comment on Ørsted discontinuing the Hornsea 4 offshore wind project. 

    Prof Jun Liang, Professor of Power Electronics and Power Networks, Cardiff University, said:

    What does this mean for the UK’s net zero by 2030 aim?

    “This development undoubtedly impacts the UK’s Net Zero ambitions, as renewable energy—particularly offshore wind power from the North Sea—is a key driver in achieving this goal.  While the discontinuation of a single offshore wind farm due to an isolated issue may not be catastrophic, the underlying reasons behind this decision raise significant concerns.  If these challenges reflect broader systemic issues, they could have far-reaching implications for other similar projects, potentially hindering progress toward the 2030 target.

     

    Is there anything the government can do to encourage projects like this?

    “Although the UK government seems to be not doing anything wrong directly towards this wind farm development, the government must take proactive measures to address supply chain challenges and prevent further project cancellations.  While we recognise the broader economic pressures facing the UK—including global trade uncertainties—sustained focus on economic growth is essential to strengthen investment capacity and build a resilient supply chain.  The challenges facing offshore wind projects, such as Hornsea 4, are not isolated incidents but rather symptoms of the current economic climate.  Without decisive intervention, similar setbacks could jeopardize the UK’s renewable energy ambitions.

     

    Is this a blow to the UK’s renewable energy efforts – what else do we have; was this a significant part of it or is there still plenty more?

    “Based on available information, the discontinuation of this offshore wind project does not appear to stem from inherent issues in renewable energy development—such as turbine technology, transmission infrastructure, or grid capacity.  Instead, broader economic and supply chain challenges seem to be the primary drivers.

    “While offshore wind is a cornerstone of the UK’s renewable energy strategy, other sources—such as onshore wind and solar PV—remain critical.  However, these sectors may face similar supply chain constraints, as the root cause lies in macroeconomic pressures rather than sector-specific limitations.  The key question is whether the UK can mitigate these systemic risks to sustain progress across all renewable energy avenues.”

     

    Prof John Loughhead, Industrial Professor of Clean Energy, University of Birmingham, said:

    “This is certainly a significant setback to the Government’s ambitions for a rapid increase in offshore wind capacity.  Hornsea 4 represented about 10% of the planned increase to meet its aggressive 2030 low carbon electricity targets, and as it has been in development since 2018 it’s very unlikely an alternative could be identified and delivered within that timescale.  Achieving the 2030 targets has become even more challenging.  It appears a combination of supply chain inflation and delivery challenges meant the project became economically unattractive given the CfD price agreed with Government only last September, which also suggests future offshore wind will need a higher guaranteed price than foreseen.”

     

     

     

    https://orsted.com/en/company-announcement-list/2025/05/orsted-to-discontinue-the-hornsea-4-offshore-wind–143901911

     

     

    Declared interests

    Prof John Loughhead: “No interests to declare.”

    For all other experts, no reply to our request for DOIs was received.

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Delivering our Plan for Change for workers

    Source: United Kingdom – Government Statements

    Speech

    Delivering our Plan for Change for workers

    The Health and Social Care Secretary Wes Streeting spoke at the Union of Shop, Distributive and Allied Workers (Usdaw) Annual Conference in Blackpool.

    It’s great to be here in Blackpool.

    Paddy (Lillis), you stood in the tradition of the greatest leaders of our movement, who believed it was not enough to walk through the streets demanding change, but that we had to walk through the corridors of power to deliver it.

    I also want to say thank you to Dave (McCrossen) for his leadership as Deputy General Secretary.

    Paddy, Dave, what you and your team have achieved in Usdaw is truly remarkable.

    Given the challenges facing retail and food distribution and the high turnover rates in the sector, maintaining your membership is a tough enough challenge, but with your leadership, Usdaw has grown. 

    With the switch to online shopping and the decline of our high streets, accelerated by the pandemic, others would have thrown in the towel. 

    Instead, your Retail Recovery Plan is helping the sector to come back stronger.

    Usdaw is an example to the trade union and labour movement:

    • to focus on the issues that matter most in the workplace
    • to keep our heads screwed on and our feet on the ground
    • to always champion the interests of working people

    Paddy, Dave, on behalf of everyone here and on behalf of the Prime Minister and the government, thank you for everything you’ve done for Usdaw and for our country.

    I’m also delighted to welcome Joanne as Usdaw’s new General Secretary. Joanne, you made history as Usdaw’s youngest regional secretary and now you’ve made history as the first woman to become general secretary – and the youngest, too!

    It’s clear the whole conference is excited to see what you do in the role. Congratulations and good luck! 

    I owe so much to Usdaw.

    [Redacted political content.]

    And having had my life saved by the NHS when I had kidney cancer at the age of 38, I can think of no better way of repaying the debt I owe to the NHS than by saving our National Health Service. 

    We should be in no doubt about the threat to our NHS.

    When we came into government, we took over an NHS going through the worst crisis in history:

    • waiting lists at historic highs
    • patient satisfaction at record lows
    • people struggling to see a GP
    • dental deserts in huge swathes of the country
    • ambulances not turning up on time
    • A&E departments full to bursting
    • doctors on picket lines, instead of the front line
    • that founding promise, that the NHS would always be there for us when we needed it, broken

    The NHS was broken.

    [Redacted political content.]

    Broken, but not beaten. Because every day there are amazing people delivering outstanding and compassionate care, despite all those challenges.

    Not beaten, because as Nye Bevan is often quoted as saying: “The NHS will last as long as there’s folk with faith left to fight for it.”

    Well, every day since I became Health Secretary, I’ve gone into work fighting for our NHS.

    To restore that basic founding principle that the NHS should always be there for us when we need it.

    With our Plan for Change, we’ve hit the ground running.

    As our first step, we promised 2 million more appointments in our first year.

    Promise made, promise kept:

    • we delivered our promise 7 months early and we’ve smashed our target – delivering not 2, but 3 million extra appointments since July and rising
    • we’ve got waiting lists down 6 months on the trot, including during peak winter pressures
    • we ended the strikes within 3 weeks and delivered an above-inflation pay rise for NHS staff
    • we’ve invested an extra £26 billion in health and care
    • we’ve recruited 1,500 more GPs – and agreed a GP contract for the first time since the pandemic
    • we’ve delivered the biggest investment to hospices in a generation
    • the biggest expansion of Carer’s Allowance since the 1970s
    • a massive boost for older and disabled people through the Disabled Facilities Grant
    • the biggest real-terms increase to the Public Health Grant in nearly a decade
    • we’ve given pharmacies the biggest funding uplift in a generation
    • and last week we froze prescription charges for the first time in years

    A lot done, but there is more to do:

    • our bill on smoking and vapes will protect children and the most vulnerable and make this generation of kids the first smoke-free generation
    • our Mental Health Bill will stop the disgraceful incarceration of learning disabled adults
    • the ban on junk food advertising targeted at children will be a first step in addressing the growing problem of childhood obesity
    • we are working with health unions, councils and employers to deliver the first ever fair pay agreement for social care staff
    • and Louise Casey is leading a Commission on Social Care which will finally get a grip on a system that is broken for too many families

    [Redacted political content.]

    We will always defend our NHS as a publicly funded, public service, free at the point of use, so that when you fall ill you never have to worry about the bill. 

    Our job is twofold.

    First, to get the NHS back on its feet and treating patients on time again.

    And second, to reform the service for the long-term, so it is fit for the future.

    This summer we will publish our 10 Year Plan for Health:

    • shifting the focus of healthcare out of hospital and into the community, with more investment in primary and community care  
    • bringing our analogue health service into the digital age, arming staff with modern equipment and cutting-edge technology
    • turning our sickness service into a preventative health service, to help people live well for longer and tackle the biggest killers

    This cannot be done by one man sat behind a desk in Whitehall. We will only succeed if this is a team effort, from the Prime Minister to the 1.5 million people who work in the health service. And the millions of us who use it taking the decisions needed to live healthier, more active lives.

    Mental health

    I know Usdaw have long campaigned on the impact poor mental health and stress can have at work. And your ‘It’s good to talk’ campaign is helping to overcome stigma and offering practical support to members who may be struggling.

    Failing to take mental health seriously doesn’t just have an enormous impact on people. Absences take their toll on businesses, our NHS and our economy as a whole. 

    In the NHS, we’re expanding talking therapies. Last year, we provided almost 70,000 people with the support they need at work, up more than 60% on the year before. 

    We know a timely intervention on mental health can save anguish and distress further down the line, and to deliver this we need to expand the mental health workforce so everyone can access the right people, with the right support, at the right time. 

    That’s why our manifesto promised an extra 8,500 mental health staff: tackling mental ill-health and the causes of mental ill-health. 

    New deal for working people

    Central to good health and good mental health are good jobs.

    So while I’m focused on fixing the foundations of our NHS, the whole government is working hard to deliver our manifesto promise to deliver the new deal for working people.

    [Redacted political content.]

    Last month, our landmark Plan to Make Work Pay passed the House of Commons. It will mean: 

    • jobs that are more secure and family friendly 
    • a real living wage people can live on 
    • going further and faster to close the gender pay gap 
    • sick pay for the lowest earners 
    • day one rights from unfair dismissal 
    • ending fire and rehire  
    • and banning exploitative zero-hour contracts once and for all 

    Conference, this will be the biggest upgrade of workers’ rights in a generation.  

    Campaigned for by Usdaw, delivered by this government. 

    Of course change – real change – takes time. As I said to Laura Kuenssberg on the BBC over the weekend, I’m pretty sure when I talk about falling waiting lists, there are people shouting at the telly: “What are you talking about? I’m still waiting!”

    Both things are true. Waiting lists are falling and are over 200,000 lower today than they were when we came into office. But if you’re one of 7 million cases still on the list, you’re not feeling it yet.

    Similarly, the decisions I took within weeks of taking office that allowed us to employ 1,500 GPs are making a difference, but there will still be people going bananas trying to get through at 8am tomorrow morning after the bank holiday.

    If the Chancellor were standing here today, she’d also report that interest rates have fallen 3 times and wages are finally rising above inflation. But that doesn’t wash away the cost of living crisis.

    People are really struggling at the moment.

    Not living, just surviving.

    It’s not good for our health and it’s not good for our country.

    We were elected with a simple promise: change.

    It won’t be enough for people to see it in the statistics – you need to feel it in your lives.

    Is my family better off?

    Is the NHS there for me when I need it?

    Do my kids attend good schools?

    Are my streets safe?

    Am I getting a fair wage for a hard day at work?

    [Redacted political content.]

    Those are the questions we as politicians need to help you as union reps answer. 

    I want all of you to know that, in government, all of us feel that pressure to deliver the change people voted for. We don’t want to let you or our country down. 

    [Redacted political content.]

    At the weekend, I asked people to give us the time we need to deliver as we grapple with an enormous breadth and depth of challenges.

    [Redacted political content.]

    But day by day, week by week, step by step, we will rebuild our economy, rebuild our public services and rebuild trust in politics.

    There’ll be bumps in the road and we won’t get everything right.

    [Redacted political content.]

    This government has already:

    • increased the National Living Wage and National Minimum Wage, giving over 3 million workers a pay rise
    • delivered breakfast clubs at 750 primary schools, so that they start the day with hungry minds instead of hungry bellies
    • scrapped the wasteful Rwanda scheme and launched our Border Security Command
    • overhauled apprenticeships through a new Growth and Skills Levy
    • and switched on Great British Energy

    We’re:

    • bringing the UK’s railways back into public ownership
    • banning no-fault evictions and introducing new protections for renters
    • delivering the New Deal for Working People
    • and cutting NHS waiting lists

    Lots done, so much more to do. 

    [Redacted political content.]

    Change has begun and the best is still to come.

    Thank you.

    Updates to this page

    Published 8 May 2025

    MIL OSI United Kingdom –

  • MIL-OSI Economics: OEUK news Industry job losses raise concern for wider sector as OEUK says there is another path for the UK 8 May 2025

    Source: Offshore Energy UK

    Headline: OEUK news

    Industry job losses raise concern for wider sector as OEUK says there is another path for the UK

    8 May 2025

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    MIL OSI Economics –

  • MIL-OSI Russia: The 28th Eurasian Economic Summit is dedicated to finding solutions to global problems

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    Source: People’s Republic of China – State Council News

    ISTANBUL, May 8 (Xinhua) — The 28th Eurasian Economic Summit kicked off in Istanbul on Wednesday to discuss ways to address pressing global issues such as conflicts, climate change, economic inequality and migration.

    The two-day summit, themed “A More Humane World – Dialogue for a Livable World,” is organized by Istanbul-based Marmara Group Foundation for Strategic and Social Research.

    Foundation President Akkan Suver described the summit as a unique platform for promoting inclusive dialogue between representatives of different countries around the world.

    “In a world increasingly characterized by conflict and polarization, our theme, ‘Dialogue for a World Fit to Live in’, highlights the urgent need for civil society, reason and conscience to guide us towards peace and cooperation,” he said in his opening remarks.

    The summit includes a number of sessions, including “Ecology, Economy, Energy and Artificial Intelligence” and “International Health Cooperation”, which highlight the multifaceted approach needed to address global challenges.

    One of the main events of the summit will be a session on “Disaster-Resilient Cities”, where world leaders will consider ways to strengthen urban infrastructure and ensure resilience to the growing threat of natural disasters caused by climate change.

    In addition, the Peace and Dialogue session will explore new approaches to peacebuilding and create opportunities for constructive dialogue in an increasingly polarized world.

    The summit is attended by more than 300 politicians, diplomats, scientists and entrepreneurs from almost 50 countries. –0–

    MIL OSI Russia News –

  • MIL-OSI: VAALCO Energy, Inc. Declares Second Quarter 2025 Dividend

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, May 08, 2025 (GLOBE NEWSWIRE) — Vaalco Energy, Inc. (NYSE: EGY; LSE: EGY) (“Vaalco” or the “Company”) today announced that it declared its quarterly cash dividend of $0.0625 per share of common stock for the second quarter of 2025 ($0.25 annualized), which is payable on June 27, 2025, to stockholders of record at the close of business on May 23, 2025. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Directors.

    George Maxwell, Vaalco’s Chief Executive Officer, commented, “We are pleased to announce our second quarter 2025 dividend, marking our 14th consecutive quarterly dividend. We have an active investment program underway and we are seeing volatility in commodity prices, but we remain committed to paying a sustainable, meaningful dividend to our shareholders.”

    About Vaalco

    Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a Houston, Texas, USA based, independent energy company with a diverse portfolio of production, development and exploration assets across Gabon, Egypt, Cote d’Ivoire, Equatorial Guinea, Nigeria and Canada.

    For Further Information

       
    Vaalco Energy, Inc. (General and Investor Enquiries) +00 1 713 543 3422
    Website: www.vaalco.com
       
    Al Petrie Advisors (US Investor Relations) +00 1 713 543 3422
    Al Petrie / Chris Delange  
       
    Buchanan (UK Financial PR) +44 (0) 207 466 5000
    Ben Romney / Barry Archer VAALCO@buchanan.uk.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, which are intended to be covered by the safe harbors created by those laws and other applicable laws and may also include “forward-looking information” within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. All statements other than statements of historical fact may be forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “forecast,” “outlook,” “aim,” “target,” “will,” “could,” “should,” “may,” “likely,” “plan” and “probably” or similar words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements relating to expectations of future dividends to stockholders. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: risks relating to any unforeseen liabilities of Vaalco; the ability to generate cash flows that, along with cash on hand, will be sufficient to support operations and cash requirements; risks relating to the timing and costs of completion for scheduled maintenance of the Floating Production Storage and Offloading vessel servicing the Baobab field; and the risks described under the caption “Risk Factors” in Vaalco’s 2024 Annual Report on Form 10-K filed with the SEC on March 17, 2025 and subsequent Quarterly Reports on Form 10-Q filed with the SEC.

    Dividends beyond the second quarter of 2025 have not yet been approved or declared by the Board of Directors. The declaration and payment of future dividends remain at the discretion of the Board of Directors and will be determined based on Vaalco’s financial results, balance sheet strength, cash and liquidity requirements, future prospects, crude oil and natural gas prices, and other factors deemed relevant by the Board of Directors. The Board of Directors reserves all powers related to the declaration and payment of dividends. Consequently, in determining the dividend to be declared and paid on Vaalco’s common stock, the Board of Directors may revise or terminate the payment level at any time without prior notice.

    Inside Information

    This announcement contains inside information as defined in Regulation (EU) No. 596/2014 on market abuse which is part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”) and is made in accordance with the Company’s obligations under article 17 of MAR. The person responsible for arranging the release of this announcement on behalf of Vaalco is Matthew Powers, Corporate Secretary of Vaalco.

    The MIL Network –

  • MIL-OSI USA: Energy Secretary Wright Testifies Before House Appropriations Subcommittee on FY2026 Budget Request

    Source: US Department of Energy

    WASHINGTON — U.S. Secretary of Energy Chris Wright testified today before the House Committee on Appropriations, Subcommittee on Energy and Water Development, outlining the Department of Energy’s Fiscal Year 2026 budget request.

    The FY2026 Budget reflects President Trump’s directive to unleash American energy, eliminate wasteful spending and refocus the Department on its core mission. It brings non-defense discretionary spending to its leanest level since 2017 and eliminates over $15 billion in Green New Scam funding that supports more expensive, less reliable energy sources. For more details, view the budget toplines here.

    Secretary Wright’s opening remarks:

    Chairman Fleischmann, Ranking Member Kaptur, and Members of the Committee, it is an honor to appear before you and this Committee today to discuss the President’s Fiscal Year 2026 Budget request for the Department of Energy.

    I’m especially honored to be at my first hearing before you as U.S. Secretary of Energy. I want to commend this Committee for its longstanding commitment to energy policy and to the mission of the Department of Energy.

    Energy is the backbone of civilization. It is the essential catalyst of human progress— enabling everything that we do, from the lights in our home, the process heat in our factories and the innovation in our national laboratories. I’ve dedicated my life to increasing access to energy, and I’m thrilled to carry my work forward at the Department of Energy at this pivotal moment in our history.

    My priorities for the Department are clear — to unleash a golden era of American energy dominance, strengthen our national security, and lead the world in innovation. A reliable and abundant energy supply is the foundation of a strong and prosperous nation– it drives our economy, safeguards our freedoms and fuels breakthroughs that improve our lives. When America leads in energy, we lead in prosperity, security and human flourishing.

    Achieving this vision means fully leveraging the resources that have powered our country for generations. The United States is blessed with the abundance of coal, oil, and natural gas, and the Trump administration is committed to using them to provide affordable, reliable, and secure energy for the American people.

    America has a historic opportunity to secure our energy systems, deliver leadership in scientific and technological innovation; maintain and strengthen our weapons stockpiles, and meet Cold War legacy waste commitments. The Department of Energy will advance these critical missions while cutting red tape, increasing efficiency, unleashing innovation and ensuring we are better stewards of taxpayer dollars.

    The President’s FY2026 budget will ensure taxpayer resources are allocated appropriately and cost-effectively. This budget will return DOE to its core mission of advancing energy innovation and global competitiveness through research and development. We will invest DOE’s resources in sources and technologies that support affordable, reliable, and secure energy and provide a return on investment for the American taxpayers.

    Just last week, the Trump administration celebrated its 100th day in office, and the Department of Energy has been hard at work to deliver on these goals of unleashing energy expansion while improving operational efficiency. I am proud to report that we have officially ended the previous administration’s reckless pause on LNG export permits and returned DOE to regular order for reviewing and approving new permits. Since January, the Department has approved applications for projects that will export more than 9.5 billion cubic feet per day of LNG, adding nearly as much incremental capacity as the world’s leading LNG exporting countries.

    We are advancing President Trump’s pledge to lower the cost of living and expand consumer choice for all Americans by rightsizing DOE’s regulatory approach to home efficiency standards. This ensures that the American people can choose which appliances work best for their homes and budgets.

    While we actively work to strengthen America’s role as the world’s leader in oil and natural gas production and lower costs for all Americans, we are also taking steps to accelerate innovation in the commercial nuclear development. America must lead the commercialization of affordable and abundant nuclear energy. DOE is working to advance the rapid deployment and export of next-generation nuclear technology, including small modular reactors. Small modular reactors will provide reliable power for our Nation’s growing energy demands, with the added benefits of flexible deployment due to their compact size and modular design.

    The responsible stewardship and modernization of the nation’s nuclear weapons systems is paramount for the Department of Energy and this Administration. DOE is focused on addressing critical upgrades for the U.S. nuclear stockpile and maintaining our engine powerhouses for submarines and aircraft carriers. Both tasks will become even more crucial in the next few years.

    We also need to unleash American energy innovation, and the National Labs are the engine that drives research and development to further this aim. When it comes to our National Labs, we are capable of doing more with less. We can both increase efficiency and drive innovation. We will prioritize research that supports true technological breakthroughs, such as nuclear fusion, high-performance computing, quantum computing, and AI, which will maintain America’s global competitiveness.

    AI is the next Manhattan Project. AI technology will define the future of the world, and it is essential that the U.S. leads in the development of this technology. DOE has a significant role to play in driving AI innovation for scientific discovery, energy innovation, and national security. Our agency has the world-class high-performance computing capabilities that enable fast and efficient AI research and development, including four of the world’s top ten supercomputers. We need all energy sources to power the global AI race and meet growing energy demand while also ensuring the security of the grid.

    America doesn’t back down from big challenges or big builds. If we want abundant, affordable, and secure energy, we must invest in the transmission, generation, and innovation that get us there. We are working to accelerate projects through permitting reform. We need to break ground faster with streamlined permitting, standardized designs, and public-private partnerships to build at the speed of national need.

    DOE will also work to replenish the Strategic Petroleum Reserve (SPR). The SPR is a national asset that protects our security in times of crisis. The last administration’s politically motivated depletion of 180 million barrels has significantly degraded SPR infrastructure, brought storage levels to historic lows, and weakened America’s ability to respond to new geopolitical oil market shocks.

    As Secretary of Energy, I am honored by the responsibility to help meet the American people’s growing energy needs and lead the world in energy development. Thank you for the opportunity to testify before this subcommittee.

    MIL OSI USA News –

  • MIL-OSI USA: May 7th, 2025 Heinrich Demands Answers on DOGE Staffer’s Unchecked Authority Over Department of the Interior

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich

    WASHINGTON — U.S. Senator Martin Heinrich (D-N.M.), Ranking Member of the U.S. Senate Energy and Natural Resources Committee, sent a letter to the U.S. Department of the Interior (DOI) Secretary Doug Burgum slamming DOI’s decision to elevate Department of Government Efficiency” (DOGE) staffer Tyler Hassen’s role in the agency. The letter comes after a March request from Heinrich urging Burgum to revoke his delegation of authority to Mr. Hassen, who never received a Senate hearing or confirmation, despite wielding significant power over the agency.

    In his letter, Heinrich demands a number of records related to Mr. Hassen’s authority, including a legal justification under the Vacancies Reform Act — of which Hassen’s role appears in direct violation — employment classifications and service history, all DOI staffing changes (past, current, and planned), an analysis of how layoffs affect the DOI’s mission, communications with DOGE and the Office of Management and Budget (OMB) about layoffs, as well as a list of all contracts and grants DOGE has targeted for termination or renegotiation.

    “On March 26, 2025, I wrote to you to express serious concern over your decision to appoint Tyler Hassen to a role responsible for performing the functions and duties of the Assistant Secretary for Policy, Management and Budget in an acting capacity. I outlined the delegation ran afoul of the Vacancies Reform Act. Troublingly, instead of revoking Mr. Hassen’s delegation, you have further empowered him,” Heinrich began.

    Heinrich continued, “On April 17, 2025, you signed a Secretarial Order giving Mr. Hassen extensive authority over Departmental functions. Under the Order, Mr. Hassen, who joined the Department of the Interior (“DOI” or “Department”) as a member of Elon Musk’s Department of Government Efficiency (DOGE), is now responsible for a broad portfolio, including human resources, contracting, federal financial assistance, and information technology. The Order appears to give Mr. Hassen free reign over key Departmental restructuring and decision-making for an indefinite period of time without a set expiration date.”

    In the last several months, DOI has fired thousands of hardworking public servants and additional reductions in force (RIF) are reportedly looming. The Department has also pushed employees to voluntarily resign or take early retirement through buyout offers. According to reports, in February, DOI fired more than 2,000 employees, which has been the subject of litigation. In April, the Department reportedly fired the agency’s Chief Information Officer, Chief Information Security Officer, and others in the solicitor’s office after they objected to DOGE gaining access to major payroll and personnel systems that processes the salaries of approximately 276,000 employees.

    Heinrich emphasized these drastic changes, slamming the Secretary’s decision to further empower Mr. Hassen at DOI, “Your latest action to further empower Mr. Hassen underscores your willingness to freely hand over the keys to the Department to a DOGE representative. The Department plays a vital role in managing public lands, safeguarding cultural resources, and engaging in responsible energy development. Delegating sweeping authorities and responsibilities to a non-Senate confirmed person in violation of the Vacancies Reform Act is baffling and extremely troubling.”

    Read the full letter here and below.

    Dear Mr. Secretary:

    On March 26, 2025, I wrote to you to express serious concern over your decision to appoint Tyler Hassen to a role responsible for performing the functions and duties of the Assistant Secretary for Policy, Management and Budget in an acting capacity. I outlined the delegation ran afoul of the Vacancies Reform Act. Troublingly, instead of revoking Mr. Hassen’s delegation, you have further empowered him.

    On April 17, 2025, you signed a Secretarial Order giving Mr. Hassen extensive authority over Departmental functions. Under the Order, Mr. Hassen, who joined the Department of the Interior (“DOI” or “Department”) as a member of Elon Musk’s Department of Government Efficiency (DOGE), is now responsible for a broad portfolio, including human resources, contracting, federal financial assistance, and information technology. The Order appears to give Mr. Hassen free reign over key Departmental restructuring and decision-making for an indefinite period of time without a set expiration date.

    Indeed, it appears that Mr. Hassen has wielded significant power since arriving at DOI. Mr. Hassen—appearing with Mr. Musk in a Fox News interview—touted reviewing “every single contract, every single grant” at DOI. In the same interview, Mr. Hassen boasted about access to you, stating, “[w]hen things come to my attention that don’t make sense, I’m bringing them to Secretary Burgum. He’s been fantastic. He’s a businessman, he’s very supportive of DOGE.”  In recent months, the Department has undergone drastic changes. DOI has fired thousands of hardworking public servants and additional reductions in force (RIF) are reportedly looming. The Department has also pushed employees to voluntarily resign or take early retirement through buyout offers. According to reports, in February, DOI fired more than 2,000 employees, which has been the subject of litigation. In April, the Department reportedly fired the agency’s Chief Information Officer, Chief Information Security Officer, and others in the solicitor’s office after they objected to DOGE gaining access to a major payroll and personnel systems that processes the salaries of approximately 276,000 employees.

    Your latest action to further empower Mr. Hassen underscores your willingness to freely hand over the keys to the Department to a DOGE representative. The Department plays a vital role in managing public lands, safeguarding cultural resources, and engaging in responsible energy development. Delegating sweeping authorities and responsibilities to a non-Senate confirmed person in violation of the Vacancies Reform Act is baffling and extremely troubling.

     To better understand the basis of your delegation of authorities to Mr. Hassen, as well as the breadth of workforce reductions at the Department, please provide the following information by May 21, 2025:

    Appointment

    1. Prior to your appointment of Mr. Hassen to a role responsible for performing the functions and duties of the Assistant Secretary for Policy, Management and Budget, did the Department assess whether the delegation of authority complied with the Vacancies Reform Act? If so, please provide a copy of the Department’s analysis.
    1. The Vacancies Reform Act permits only three categories of Government officials to perform the functions of a vacant office in an acting capacity. Please indicate if Mr. Hassen meets any of these three categories.
    1. What is Mr. Hassen’s current employment classification (e.g., Schedule C employee or another classification)? In responding to this question, please also provide all other employment classifications Mr. Hassen has served under at the Department and the dates of service for each classification.

    Terminations and Workforce Reductions

    1. Please provide the current and planned staffing levels at the Department. In responding to this question, please provide the following information:
      1. A detailed breakdown and the reason for the staff changes at the Department (e.g., retirement, termination, participation in a Deferred Resignation Program, or other action) and corresponding figures for each category listed.
    1. For each bureau and program office, please provide the following information:
      1. The number of employees in each bureau and program office on January 20, 2025, and the current number of employees in that bureau and program office.
      1. A detailed description of planned changes to workforce in each bureau and program office, including target employment numbers for each bureau and program office.
    1. Prior to making workforce reductions at the Department or offering the Deferred Resignation Program option to employees, did the Department conduct a comprehensive analysis to understand if such reductions compromised the Department’s ability to meet its statutory mission? If so, please provide the Committee with a copy of that analysis.
    1. Does DOI plan to eliminate, merge, or reduce the function of any bureau or program office? If so, please explain.
    1. Please provide all documents and communications between Mr. Hassen and agents or representatives of DOGE referring or relating to terminations and workforce reductions at DOI.
    1. Please provide all documents and communications between Mr. Hassen and OMB referring or relating to terminations and workforce reductions at DOI.

    Grants and Contract Terminations and Renegotiations

    1. Please provide a list of all Department grants or contracts DOGE has identified for termination or renegotiation. In responding to this question, please provide the following information:
      1. A description of each grant or contract DOGE has identified for termination or renegotiation and the current status.
      1. DOGE’s justification for terminating or renegotiating the grant or contract.
    1. Since January 20, 2025, has the Department terminated or recompeted any contract? If so, please provide the following information for each contract terminated or recompeted:
      1. A description of the contract terminated or recompeted.
      1. b. The reason the Department terminated or recompeted the contract.
    1. Since January 20, 2025, has the Department entered into any new contracts? If so, please provide detailed information.

    Sincerely,

    MIL OSI USA News –

  • MIL-OSI New Zealand: PM’s Science Council to set direction for science

    Source: NZ Music Month takes to the streets

    Prime Minister Christopher Luxon has today announced the new Prime Minister’s Chief Science Advisor, and the members of the Prime Minister’s Science and Technology Advisory Council.

    “We have world-class scientists in our universities and research institutes, but they’re working in a system held back by outdated settings. To unlock the full potential of science and technology, we need a sharper focus on commercialisation, better access to global investment, and clearer priorities at home,” Mr Luxon says. 

    “This Council is a new initiative to get clear, independent advice to ensure our investments in science and technology are delivering real outcomes for New Zealanders.

    “The Council will provide advice on long-term priorities for government-funded science and innovation. They will help identify areas of focus that will have the greatest benefit for Kiwis and our economy. 

    “I also expect them to provide bold and courageous advice about those areas that aren’t delivering value for New Zealanders and may need to be deprioritised. It’s about making sure we are investing in what will have the greatest impact for New Zealanders.”

    Members of the Council bring a strong mix of scientific, commercial and strategic expertise. They include:

    Sir Peter Gluckman
    Craig Piggott
    Professor Merryn Tawhai
    Komal Mistry-Mehta
    Malcolm Johns
    Dr John Roche

    “I am also pleased to announce that Dr John Roche has been appointed as the Prime Minister’s Chief Science Advisor. In this role, John will support robust decision making by providing high quality, independent scientific advice. John, in his capacity as my science advisor, will also be a member of the council.”

    Minister for Science, Innovation and Technology, Hon Dr Shane Reti, will chair the Council, with Dr John Roche as deputy chair.

    “These are highly capable individuals who understand both the science and the economic imperatives. They are prepared to make the bold calls needed to ensure the system is future-focused, outcome-driven and aligned with our economic goals,” Mr Luxon says.

    “A strong, well-directed science and innovation sector is critical to lifting productivity, creating high-value jobs and supporting a more resilient and competitive economy.”

    The Council will provide its first formal advice to the Prime Minister and Minister Reti later this year.

    Biographies of Council members:

    Sir Peter Gluckman 
    Professor Sir Peter Gluckman ONZ KNZM FRSNZ FMedSci FRS trained as a paediatrician and biomedical scientist. He is Director of Koi Tu- Centre for Informed Futures and holds a Distinguished University Professorship at the University of Auckland. He is currently the chair of the Science System Advisory Group. Sir Peter is President of the International Science Council (ISC, 2021-2026). From 2014-2021 he was the inaugural Chair of the International Network of Government Science Advice (INGSA), and from 2009-2018 he was the first Chief Science Advisor to the Prime Minister of New Zealand. He was also Science Envoy for the New Zealand Ministry of Foreign Affairs and Trade and coordinated the secretariat of the Small Advanced Economies Initiative. He has written and spoken extensively on science-policy and science-diplomacy and science-society interactions. He has received the highest scientific and civilian honours in New Zealand and numerous international scientific awards. 
    Craig Piggott
    Craig Piggott is the founder of Halter. The company’s solar-powered collar for dairy and beef cows, pairs with an app for farmers and allows cows to respond to guidance cues, enabling virtual herding and fencing while monitoring health 24/7. This innovation helps farmers increase milk and protein production propelling the company to become one of New Zealand’s fastest-growing businesses with a thriving international customer base. Craig brings experience in innovation, agriculture and business.  
    Merryn Tawhai
    Merryn Tawhai graduated from the University of Auckland with a PhD in Engineering Science in 2001. She leads a research programme at the Auckland Bioengineering Institute (ABI) in applied computational physiology of the respiratory system. Merryn is the Director of the ABI and sits on the Board of Directors for Cure Kids Ventures and the Virtual Physiological Human Institute. She was ABI’s Deputy Director for 10 years, Director of the Medical Technologies Centre of Research Excellence (MedTech CoRE), and an independent Director for Izon Science. Merryn was awarded the 2016 MacDiarmid Medal by the Royal Society of New Zealand (RSNZ) Te Apārangi, is a Fellow of the RSNZ, a Fellow of IAMBE and AIMBE, and an elected member of the Fleischner Society.
    Komal Mistry-Mehta
    Komal is Chief Innovation & Brand Officer at Fonterra and Managing Director of the Ki Tua Fund, Fonterra’s corporate venture capital arm. She leads global innovation, research and development, digital, brand and marketing functions for New Zealand’s largest company. Prior to joining the Fonterra Executive Team, Komal led Fonterra’s global health and nutrition business based in Singapore. With experience across Asia, the America’s and Europe, she has led major transformations in sales, innovation, digital enablement and technology. Komal was named New Zealand’s Young Executive of the Year in 2017 and serves on several international boards. Komal has completed the Executive Program at Stanford University School of Business and holds Bachelor of Laws and Bachelor of Management degrees from the University of Waikato. She is a Barrister and Solicitor of the High Court of New Zealand as well as a member of the New Zealand Institute of Chartered Accountants.
    Malcolm Johns
    Malcolm is the Chief Executive of Genesis Energy. Previously he was the Chief Executive of InterCity Group and held several governance roles within New Zealand’s transport, infrastructure and tourism sectors. He is Convenor of the Climate Leaders Coalition and served as Chair of the APEC Business Advisory Council leading the regional trade policy task force for climate change. Malcolm has extensive business acumen and understanding of Government systems

    John Roche 
    John was appointed MPI’s Chief Science Adviser in June 2018 to provide an independent science perspective. He leads MPI’s Science Forum, chairs the Science Governance Group at MPI and the independent Mycoplasma bovis Strategic Science Advisory Group. John is also a member of the Prime Minister’s Chief Science Adviser’s forum and is an adjunct professor in University of Auckland’s School of Biological Sciences. John was previously DairyNZ’s Principal Scientist for Animal Science. He has held science appointments in Ireland and Australia. He is also Managing Director of Down to Earth Advice Ltd. Widely published and a regular contributor to international science and farming conferences, John has an Honours degree in Agricultural Science, a Masters in Farm Systems and Pasture Management, and a PhD in Animal Nutrition.

    MIL OSI New Zealand News –

  • MIL-Evening Report: ER Report: A Roundup of Significant Articles on EveningReport.nz for May 8, 2025

    ER Report: Here is a summary of significant articles published on EveningReport.nz on May 8, 2025.

    Women’s sports are fighting an uphill battle against our social media algorithms
    Source: The Conversation (Au and NZ) – By Hans Westerbeek, Professor of International Sport Business, Head of Sport Business Insights Group, Victoria University Women’s sport is more and more getting the attention it deserves. Stadiums are filling, television ratings for many sports are climbing and athletes such as the Matildas’ Mary Fowler, triple Olympic gold

    New taxes on super didn’t get much attention in the election campaign. But they could be tricky to implement
    Source: The Conversation (Au and NZ) – By Mark Melatos, Associate Professor of Economics, University of Sydney Poetra.RH/Shutterstock The re-election of the Albanese government has led to renewed concern about planned changes to the taxation of investment returns in superannuation funds. Labor’s emphatic victory on Saturday night, including what looks like an increased presence in

    New Caledonia’s political talks – no outcome after three days of ‘conclave’
    By Patrick Decloitre, RNZ Pacific correspondent French Pacific Desk After three solid days of talks in retreat mode, New Caledonia’s political parties have yet to reach an agreement on the French Pacific territory’s future status. The talks, held with French Minister for Overseas Manuel Valls and French Prime Minister’s special advisor Eric Thiers, have since

    Forest home of ‘polar dinosaurs’ 120 million years ago in southern Australia recreated in detail for the first time
    Source: The Conversation (Au and NZ) – By Vera Korasidis, Lecturer in Environmental Geoscience, The University of Melbourne Artwork © Bob Nicholls 2024 Roughly 140 million to 100 million years ago, the piece of land that is modern day Australia was located much further south on Earth. In fact, what is now Victoria was once

    Ovarian cysts can be painful when they burst. When do you need to see a doctor?
    Source: The Conversation (Au and NZ) – By Anna Chruścik, Lecturer in Biomedical Sciences, University of Southern Queensland PeopleImages.com – Yuri A/Shutterstock Cysts are small pockets of fluid that form inside the body. Ovarian cysts are common, affecting around one in ten women. But sometimes they can cause pain – especially when they burst. You

    Keith Rankin Chart Analysis – International Trade over time: gifts with strings
    Analysis by Keith Rankin. The ‘see-saw’ chart above shows the accumulated ‘excess benefits’ that Aotearoa New Zealand, and a few other countries, have enjoyed from international trade over the last 40 years. These are benefits arising from ‘unbalanced trade’ which are in addition to the regular benefits – arising from efficient specialisation – of ‘balanced’

    ‘Utu’ as foreign policy: how a Māori worldview can make sense of a shifting world order
    Source: The Conversation (Au and NZ) – By Nicholas Ross Smith, Senior Research Fellow, National Centre for Research on Europe, University of Canterbury Getty Images There is a growing feeling in New Zealand that the regional geopolitical situation is becoming less stable and more conflicted. China has ramped up its Pacific engagement, most recently with

    While the Liberals haemorrhaged, the Nationals held their own. Is it time to break up the Coalition?
    Source: The Conversation (Au and NZ) – By Linda Botterill, Visiting Fellow, Crawford School of Public Policy, Australian National University Among the notable features of this year’s election campaign was that Australia’s second-oldest political party was apparently missing in action. At the same time, it managed to avoid the rout inflicted on its coalition partner.

    Why is hospital parking so expensive? Two economics researchers explain
    Source: The Conversation (Au and NZ) – By Lisa Farrell, Professor of Economics (Health Economist), RMIT University ThirtyPlus/Shutterstock Imagine having to pay A$39 dollars a day to park your car while visiting your sick child in hospital. For families already struggling in a cost-of-living crisis, hospital parking fees are not just another expense. They can

    Vietnam is poised to become a top 20 economy, so why is Australia taking so long to make trade and investment links?
    Source: The Conversation (Au and NZ) – By Anne Vo, Senior lecturer in Vietnamese culture and politics, University of Wollongong Aritra Deb/Shutterstock At a time of widespread global trade instability, Australia should be expanding and diversifying its economic partnerships. Supply chains remain fragile, and protectionist rhetoric is once again gaining traction in major Western economies.

    Marvel’s Thunderbolts* shines a light on men’s mental illness – but falls down with this outdated plotline
    Source: The Conversation (Au and NZ) – By Emily Baulch, Research Associate, Discipline of Media and Communications, University of Sydney Marvel Studios This piece contains spoilers. Marvel’s men are sad. And that’s a good thing. Thor’s depressed in Avengers: Endgame. Tony Stark has panic attacks in Iron Man 3. Peter grieves in Spider-Man: No Way

    Australia is set to be a renewables nation. After Labor’s win, there’s no turning back
    Source: The Conversation (Au and NZ) – By Wesley Morgan, Research Associate, Institute for Climate Risk and Response, UNSW Sydney bmphotographer/Shutterstock An emphatic election victory for the incumbent Labor government means Australia’s rapid shift to renewable energy will continue. As Climate Change and Energy Minister Chris Bowen said on Saturday: In 2022, the Australian people

    Financial Times: The West’s shameful silence on Gaza – do more to restrain Benjamin Netanyahu
    EDITORIAL: The Financial Times editorial board After 19 months of conflict that has killed tens of thousands of Palestinians and drawn accusations of war crimes against Israel, Benjamin Netanyahu is once more preparing to escalate Israel’s offensive in Gaza. The latest plan puts Israel on course for full occupation of the Palestinian territory and would

    ‘Under no illusions’ about France, says author of new Rainbow Warrior book
    Pacific Media Watch The author of the book Eyes of Fire, one of the countless publications on the Rainbow Warrior bombing almost 40 years ago but the only one by somebody actually on board the bombed ship, says he was under no illusions that France was behind the attack. Journalist David Robie was speaking last

    Australia doesn’t have a federal Human Rights Act – but the election clears the way for overdue reform
    Source: The Conversation (Au and NZ) – By Amy Maguire, Professor in Human Rights and International Law, University of Newcastle Master1305/Shutterstock The Albanese government has achieved an historic re-election, substantially building its majority in the House of Representatives. Much has already been written about the potential for a more ambitious legislative program on the back

    Samoa down in RSF media freedom world ranking due to ‘authoritarian pressure’
    Talamua Online News Samoa has dropped in its media and information freedom world ranking from 22 in 2024 to 44 in 2025 in the latest World Press Freedom Index compiled annually by the Paris-based Reporters Without Borders (RSF). For the Pacific region, New Zealand is ranked highest at 16, Australia at 29, Fiji at 40,

    How maximum security prison inmates and officers worked together to create a farm behind bars
    Source: The Conversation (Au and NZ) – By Christian Tietz, Senior Lecturer in Industrial Design, UNSW Sydney Macquarie Correctional Centre Media Unit At Macquarie Correctional Centre in western New South Wales, a story of collaboration and persistence is unfolding. Inmates and prison officers are farming commercial quantities of fresh food in a purpose-built indoor facility.

    Can what you eat during pregnancy and breastfeeding affect whether your child develops food allergies?
    Source: The Conversation (Au and NZ) – By Jennifer Koplin, Evidence and Translation Lead, National Allergy Centre of Excellence; Chief Investigator, Centre of Food Allergy Research; Associate Professor and Group Leader, Childhood Allergy & Epidemiology Group, Child Health Research Centre, The University of Queensland Maria Evseyeva/Shutterstock Many questions pop up when you’re growing or raising

    How do you put a tariff on movies? Here’s what Trump’s plan could mean for Australia
    Source: The Conversation (Au and NZ) – By Mark David Ryan, Professor, Film, Screen, Animation, Queensland University of Technology Kirk Wester/Shutterstock US President Donald Trump’s recent announcement of a plan to impose a 100% tariff on movies “produced in foreign lands” could have a massive impact on the global entertainment industry. Film and television production

    Labor says its second term will be about productivity reform. These ideas could help shift the dial
    Source: The Conversation (Au and NZ) – By Roy Green, Emeritus Professor of Innovation, University of Technology Sydney Summit Art Creations/Shutterstock In his victory speech, Prime Minister Anthony Albanese highlighted social policy as a major factor in Labor’s electoral success, particularly Medicare, housing and cost of living relief. He was justified in doing so. But

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI NGOs: Greenpeace USA responds to Energy Transfer Q1 earnings call announcement

    Source: Greenpeace Statement –

    Greenpeace USA projected a powerful message of purpose and defiance onto the base of the Golden Gate Bridge. The action marked 100 days into the administration’s second term and launched the global #TimeToResist campaign — a call to push back against attacks on democracy, dissent, and environmental justice from from billionaire oligarchs and corporate bullies. © Jana Asenbrennerova / Greenpeace

    Washington, D.C. (May 6, 2025) – In response to Energy Transfer announcing $4.1B in 2025 Q1 profits, Sushma Raman, Greenpeace USA Interim Executive Director, said: 

    “There are no words to fully capture the absurdity of Energy Transfer boasting billions in quarterly profits while trying to squeeze more than $660 million out of Greenpeace USA, Greenpeace Fund, and Greenpeace International. But as we’ve said from the beginning – this was never about money. There is no dollar figure that can be placed on rolling back constitutional rights to free speech and protest, yet, that is exactly what’s unfolding under this administration. Donald Trump’s wealthy allies are attempting to buy the power to silence dissent, using their bank accounts as battering rams against democracy. Our response is in our resistance. As we continue to fight these baseless charges, we know this is the Billionaire Bully playbook. They turn a profit by making people like us pay the price. 

    “The fact that we are still standing here today, because of the unwavering support of people who believe in a just and green future, is proof we refuse to be bullied by corporations into silence. As this nation’s founding document first declared — governments derive their power from the consent of the governed, so in that spirit, it is time we all say: We the People, resist.”

    Contact: Madison Carter, Greenpeace USA Senior Communications Specialist, [email protected]

    Greenpeace USA is part of a global network of independent campaigning organizations that use peaceful protest and creative communication to expose global environmental problems and promote solutions that are essential to a green and peaceful future. Greenpeace USA is committed to transforming the country’s unjust social, environmental, and economic systems from the ground up to address the climate crisis, advance racial justice, and build an economy that puts people first. Learn more at www.greenpeace.org/usa.

    MIL OSI NGO –

  • MIL-OSI USA: Eastern Tennessee Communities Awarded $2 Million for Helene Costs

    Source: US Federal Emergency Management Agency 2

    he state of Tennessee and FEMA have awarded nearly $2 million for emergency and permanent work to repair bridges, restore utilities, remove debris and take measures to protect 14 Eastern Tennessee counties affected by Tropical Storm Helene.
    The major presidential declaration designated Carter, Claiborne, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Johnson, Sevier, Sullivan, Unicoi and Washington counties for FEMA Public Assistance, a program that helps communities as they respond to declared disasters or emergencies. 
    In Cocke County, the City of Newport cleared more than 4,726 cubic yards of sand, soil and mud from streets and sidewalks after the storm. The city also contracted to have 4,156 cubic yards of vegetative debris and 570 cubic yards of mud, soil and sand removed from the public rights-of-way. 
    FEMA’s share for this project is $83,731; the nonfederal share is $27,910.
    The Public Assistance program reimburses communities for emergency work to save lives and protect property; remove debris; and repair roads, bridges, public buildings, utilities and parks. Because this is a cost-sharing program, FEMA reimburses state applicants 75% of eligible costs. The remaining 25% represents nonfederal funds.
    Below is a list of community projects, the total dollars awarded, and the category of Public Assistance funding:
    Carter County: First Utility District $4,966 for emergency protective measures.
    Hawkins County: Emergency Communications District $4,632 for emergency protective measures.
    Johnson County: $624,640 for Morefield Bridge repairs; $617,344 for Furnace Creek Bridge repairs; and $12,875 for Brownlow Utility District meter repairs.
    Sevier County: $34,524 for City of Pigeon Forge, $11,154 for Sevier County Utility District, and $196,489 for the county government, all for emergency protective measures.
    Unicoi County: Gas Utility District $27,949 for emergency protective measures; $39,335 for restoring gas service to residential customers; Sheriff’s Office $124,760 for emergency protective measures.
    Washington County: Johnson City Energy Authority $227,806 for emergency protective measures; the county Emergency Communications District $6,041 for emergency protective measures.
    Public Assistance is FEMA’s largest grant program, providing funding to help communities responding to and recovering from major presidentially declared disasters or emergencies. Tropical Storm Helene swept across Tennessee Sept. 26-30. The president approved a major disaster declaration for Tennessee on Oct. 2, allowing FEMA to pay for eligible costs associated with the emergency.

    MIL OSI USA News –

  • MIL-OSI USA: California sues Trump administration for illegally withholding billions in bipartisan infrastructure funds: ‘Another Trump gift to China’

    Source: US State of California 2

    May 7, 2025

    What you need to know: California and 16 other states today filed a federal lawsuit accusing President Trump of unlawfully withholding billions of dollars approved by bipartisan majorities in Congress for electric vehicle charging infrastructure that would reduce toxic pollution, expand access to clean vehicles and create thousands of green jobs.

    SACRAMENTO — Governor Gavin Newsom and Attorney General Rob Bonta announced today that a multi-state lawsuit was filed in federal court challenging actions taken by President Trump’s Federal Highway Administration (FHWA) to thwart Congress’s $5 billion program to expand electric vehicle (EV) charging infrastructure. The Trump administration’s unlawful actions would cost Californians more than $300 million, eliminate thousands of good-paying jobs and hobble a critical, emerging tech industry. 

    On the first day of his administration, President Trump issued an executive order directing federal agencies to immediately stop releasing funds appropriated through the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law, including $5 billion that Congress appropriated for electric vehicle charging stations under the National Electric Vehicle Infrastructure (NEVI) Formula Program. 

    Following that directive, FHWA effectively halted the NEVI Formula Program by, among other things, unlawfully withholding billions in funds that Congress had directed to the states for building EV infrastructure.

    When America retreats, China wins.

    President Trump’s illegal action withholding funds for electric vehicle infrastructure is yet another Trump gift to China – ceding American innovation and killing thousands of jobs.

    Instead of hawking Teslas on the White House lawn, President Trump could actually help Elon – and the nation – by following the law and releasing this bipartisan funding.

    Governor Gavin Newsom

    California, Colorado, and Washington led a coalition of 17 states in suing FHWA. The lawsuit states that FHWA’s unlawful actions deprive the states of billions of dollars in appropriated funds, ignores Congressional mandates, violates the U.S. Constitution and will devastate the ability of states to build the charging infrastructure necessary for making EVs accessible to more consumers, combating climate change, reducing other harmful pollution, and supporting the states’ green economies. 

    “The President continues to roll back environmental and climate change protections, this time illegally stripping away billions of dollars for electric vehicle charging infrastructure, all to line the pockets of his Big Oil friends,” said Attorney General Bonta. “The facts don’t lie: the demand for clean transportation continues to rise, and California will be at the forefront of this transition to a more sustainable, low-emissions future. California will not back down, not from Big Oil, and not from federal overreach.” 

    California’s State Electric Vehicle Infrastructure Deployment Plan anticipated that California would need hundreds of thousands of additional EV charging ports to support passenger cars and trucks and incrementally more charging ports for medium- and heavy-duty trucks and buses to meet climate goals. The plan, approved by the federal government, would leverage public funding and private investment to build out a statewide charging infrastructure, including $384 million from the NEVI program.   

    The lawsuit requests the court to declare that President Trump’s directives are unlawful, vacate the actions and permanently stop the administration from withholding the funds. 

    A national leader in zero-emission vehicles (ZEV) and infrastructure

    California’s support for clean cars is unmatched, and the state is home to more than 30% of new ZEVs sold in the U.S. With the rise in EV and plug-in hybrid demand, the state is committed to rapidly deploying funds to develop and ensure a reliable and easy-to-use charging network. The state has doubled down on improving the charging network and making it even easier to buy an EV:

    • More than 178,000 public or shared private electric vehicle charging ports have been installed throughout California, plus more than 700,000 at-home charging ports. 
    • Grants and rebates for thousands of dollars are available for low-income Californians to purchase EVs. Learn more at ClimateAction.ca.gov or ElectricForAll.org.

    The work doesn’t stop with passenger electric vehicles — the state has been hard at work to cut emissions from trucks and buses. Recent efforts include:

    • More than $640 million toward the deployment of zero-emission truck and bus recharging and refueling infrastructure.
    • $500 million to put another 1,000 ZEV school buses on the road.
    • More than $1.3 billion for public transportation projects, including several that support zero-emission buses. 

    California’s strategy for a clean transportation transition

    In addition to advancing ZEVs, the Newsom Administration is prioritizing clean fuel production, public transit and rail infrastructure enhancements, and a cleaner, smarter electric grid to help power it all. As California works toward this clean transportation future, the state is also advancing efforts to prevent gasoline price spikes. 

    Standing up for California communities and businesses 

    Today’s lawsuit follows the Governor’s recent announcement that California is challenging President Trump’s authority to unilaterally enact tariffs. The Governor also intends to create new strategic trade relationships with international partners aimed at strengthening shared economic resilience and protecting California’s manufacturers, workers, farmers, businesses, and supply chains. The Governor has also announced a new international campaign to help maintain the strong tourism partnership between California and Canada.

    Press Releases, Recent News

    Recent news

    May 7, 2025

    News What you need to know: Despite the Trump Administration’s assaults, both California and Texas are working to build high-speed rail. But only one state has built anything: California. SACRAMENTO — What’s the main difference between California high-speed rail and…

    May 7, 2025

    News What you need to know: A new report details nearly $33 billion raised for climate projects and direct support for Californians funded by cap-and-trade, as Governor Gavin Newsom and legislative leaders seek an extension of the program. SACRAMENTO – Governor Gavin…

    May 7, 2025

    News Sacramento, California – Governor Gavin Newsom today issued a proclamation declaring May 4-10, 2025 as “Children’s Mental Health Awareness Week.”The text of the proclamation and a copy can be found below: PROCLAMATIONChildren’s mental health has become an…

    MIL OSI USA News –

  • MIL-OSI Asia-Pac: Through Operation Sindoor, India used its ‘Right to Respond’ to the attack on its soil: Raksha Mantri

    Source: Government of India

    Through Operation Sindoor, India used its ‘Right to Respond’ to the attack on its soil: Raksha Mantri

    “Armed Forces scripted history by acting with precision, precaution and compassion to destroy terror camps in Pakistan & PoK”

    Shri Rajnath Singh virtually dedicates 50 infrastructure projects of BRO to the nation

    The projects in eight border States/UTs, constructed at a total cost of Rs 1,879 crore, to enhance connectivity, strengthen national security & promote economic prosperity

    Posted On: 07 MAY 2025 5:50PM by PIB Delhi

    “Through Operation Sindoor, India has used its ‘Right to Respond’ to the attack on its soil, and the Armed Forces scripted history by acting with precision, precaution & compassion to destroy the camps used to train terrorists in Pakistan and PoK,” said Raksha Mantri Shri Rajnath Singh while addressing the 66thRaising Day event of Border Roads Organisation (BRO) at Manekshaw Centre, Delhi Cantt on May 07, 2025. Raksha Mantri asserted that, as per the plan, the targets were destroyed and no civilian population was harmed. He commended the Armed Forces by giving a befitting reply under the leadership of Prime Minister Shri Narendra Modi.

    “The whole world has witnessed what our Armed Forces have done today. The action was carried out very thoughtfully and in a measured manner. It was limited only to the camps and other infrastructure used for training terrorists, with the aim of breaking their morale. I congratulate the Armed Forces on behalf of the whole country. I also congratulate Prime Minister Shri Narendra Modi for providing complete support to the forces,” added Shri Rajnath Singh.

    The event also witnessed the virtual dedication of 50 strategically-significant infrastructure projects of BRO – 30 bridges, 17 roads and three other works – to the nation by Raksha Mantri. These projects, constructed at a total cost of Rs 1,879 crore, are spread across six border States and two Union Territories – Jammu & Kashmir, Ladakh, Arunachal Pradesh, Himachal Pradesh, Sikkim, Mizoram, West Bengal & Rajasthan – reinforcing India’s security, connectivity and development in remote regions. In the last two years alone, BRO has completed a record 161 infrastructure projects worth Rs 5,600 crore, including 111 projects last year.  In the last four years, BRO has completed 456 infrastructure projects with a total expenditure of Rs 13,743 crore.

    Shri Rajnath Singh exuded confidence that the projects e-inaugurated today will enhance connectivity, strengthen national security and promote economic prosperity of all these regions. “These projects will enhance defence preparedness and boost transportation, tourism & economic activity in these areas. These are not just infrastructure assets; they are pathways to a brighter future,” he added.

    Underlining the strategic importance of BRO’s work, Raksha Mantri stated that modern defence capability depends not just on weaponry but also on the infrastructure that supports it. “You can have the fastest tank or the most advanced aircraft, but if they can’t reach where they are needed on time, they serve no purpose. BRO plays a critical role in making sure our military is always ready and well-positioned,” he said, commending BRO Karmayogis who work behind the scenes and contribute to national security.

    Shri Rajnath Singh emphasised on the need to build new generation infrastructure for the Armed Forces in view of the current geopolitical scenario. BRO must ensure that the preparations are at war-level, he said.

    Raksha Mantri reiterated the Government’s commitment to ensure border area development, making special mention of Sela Tunnel which has become a symbol of this resolve to enhance connectivity in strategically-important areas. He highlighted the vision of Prime Minister Shri Narendra Modi to revitalise border villages, stating that initiatives like the Vibrant Villages Programme under which the Government is increasing connectivity by building about 35 kilometers of roads every day.

    In his address, Director General Border Roads (DGBR) Lt Gen Raghu Srinivasan highlighted the growing national importance of BRO, stating that the organisation has emerged as the agency of choice for key central ministries for executing infrastructure projects in the most challenging terrains. He reaffirmed the BRO’s commitment to the well-being and dignity of its workforce, including GREF personnel and Casual Paid Labourers.

    Minister of Parliamentary Affairs and Minister of Minority Affairs Shri Kiran Rijiju, Minister of State (Independent Charge) Science & Technology; Earth Sciences, MoS PMO, PP/DoPT, Atomic Energy and Space Dr Jitendra Singh, Chief of the Army Staff Gen Upendra Dwivedi, Defence Secretary Shri Rajesh Kumar Singh and other senior officials of Ministry of Defence were present at the venue.

    Himachal Pradesh Governor Shri Shiv Pratap Shukla, Arunachal Pradesh Governor Lt Gen Kaiwalya Trivikram Parnaik, Rajasthan Governor Shri Haribhau Kisanrao Bagde, Arunachal Pradesh Chief Minister Shri Pema Khandu, Mizoram Chief Minister Shri Lalduhoma, Jammu & Kashmir Lt Governor Shri Manoj Sinha, Lt Governor Ladakh Brig. (Dr) BD Mishra (Retd) joined the event virtually.

    ******

    VK/Savvy/KB

    (Release ID: 2127561) Visitor Counter : 15

    MIL OSI Asia Pacific News –

  • MIL-OSI Europe: Answer to a written question – Fresh protests from European farmers – E-001000/2025(ASW)

    Source: European Parliament

    The Commission is fully aware of the challenges faced by farmers such as the drought conditions in Romania.

    To address these challenges, the Vision for Agriculture and Food presented on 19 February 2025[1] contains an ambitious roadmap and different work streams towards an agri-food system that is attractive, competitive, sustainable and fair for current and future generations, including trade and simplification.

    Trade agreements, like the EU-MERCOSUR Partnership Agreement, strike a balance between both the EU offensive and defensive interests of the agri-food sector.

    Trade agreements open new export opportunities for the EU agri-food sector, to the benefit of EU farmers income. At the same time the EU agri-food sector relies on imports from third countries.

    Moreover, imported products need to fully comply with EU sanitary and phyto-sanitary standards (SPS). These standards include the ban of hormones in cattle raising in both domestic and imported products.

    The current autonomous trade measures[2] for Ukraine include strengthened safeguards setting caps on imports of certain agricultural products from Ukraine. They helped stabilising markets and provide stability and predictability for farmers on both sides.

    Meanwhile, the Commission continues its efforts to simplify the delivery of the current Common Agricultural Policy (CAP) in view of reducing the administrative burden and providing more flexibility to farmers and national administrations. The second simplification package of the current CAP is expected for the second quarter of 2025.

    • [1]  https://agriculture.ec.europa.eu/vision-agriculture-food_en#:~:text=Shaping%20the%20future%20of%20farming%20and%20the%20agri-food,entire%20value%20chain%20within%20the%20EU%20and%20globally
    • [2]  Regulation (EU) 2024/1392 of the European Parliament and of the Council of 14 May 2024 on temporary trade-liberalisation measures supplementing trade concessions applicable to Ukrainian products under the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part (ELI: http://data.europa.eu/eli/reg/2024/1392/oj).
    Last updated: 7 May 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Answer to a written question – Greece’s potential contribution to the EU green hydrogen strategy – E-000870/2025(ASW)

    Source: European Parliament

    Greece started long-term planning of its future hydrogen infrastructure development within the European Ten-Year Network Development Plan[1].

    The Greek hydrogen backbone project, which aims at connecting the future hydrogen production sites with Greek off-takers and European markets, is included in the Union list of Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs)[2]. PCI status helps project development by providing streamlined permitting processes, and priority regulatory treatment.

    Given its PCI status, the Greek hydrogen backbone project is for example eligible for the financial support under the Connecting Europe Facility (CEF) under certain conditions.

    In 2025, the Commission allocated EUR 5.4 million to the project under CEF to support DESFA, the Greek transmission system operator, with studies that are necessary to realise this investment.

    The CEF support will de-risk and accelerate the project. Renewable hydrogen can be supported with the Modernisation Fund and Greece can take part in the auctions-as-a-service of the European Hydrogen Bank auctions under the Innovation Fund.

    The Commission is also in contact with the Greek administration for example within the context of Greece’s implementation of its recovery and resilience plan (RRP), which includes hydrogen-related actions[3].

    In addition, Greece like other Member States will need to transpose the recent EU hydrogen legislation, which includes the sectoral consumption targets for industry and transport under the revised Renewable Energy Directive[4] and the recast Gas Directive[5].

    The Commission is supporting Member States in this work through different means[6].

    • [1] https://www.entsog.eu/tyndp#entsog-ten-year-network-development-plan-2024
    • [2] https://ec.europa.eu/commission/presscorner/detail/en/ip_23_6047
    • [3] The Greek RRP includes a relevant reform on the framework for hydrogen, which shall include licensing and permitting procedures.
    • [4] Directive (EU) 2023/2413, transposition deadline 21 May 2025.
    • [5] Directive (EU) 2024/1788, transposition deadline 5 August 2026.
    • [6] This includes workshops on the consumption targets under the Renewable Energy Directive and a Q&A tool for Member States administrations on the Gas Directive.
    Last updated: 7 May 2025

    MIL OSI Europe News –

  • MIL-OSI USA: Congresswoman Lauren Boebert Statement on HNR Reconciliation Package

    Source: United States House of Representatives – Representative Lauren Boebert (Colorado, 3)

    WASHINGTON, DC– Congresswoman Lauren Boebert (CO-04) provided the following statement on the passage of the House Natural Resources Committee reconciliation package:

    “I was proud to vote for the House Natural Resources Committee package, which saves taxpayers $18.5 billion and gets us one step closer to passing President Trump’s One Big, Beautiful Bill. This effort aligns with President Trump’s mission of unleashing American energy by utilizing our federal lands for energy exploration, streamlining our burdensome permitting process to help Colorado’s oil & gas producers, investing in water infrastructure, and stopping the implementation of Resource Management Plans in the West that have been created by D.C. bureaucrats and placed ideology ahead of Americans.”

    Congresswoman Boebert’s remarks from the House Natural Resources reconciliation hearing can be viewed HERE.

    The language for Congresswoman Boebert’s American Energy Act was included within the HNR reconciliation package, which will generate revenue by streamlining the permitting process and prohibits malicious lawsuits from holding up energy exploration projects.

    BACKGROUND:

    As part of the House Reconciliation process, the House Natural Resources Committee was tasked with passing a budgetary package to assist in cost savings for the American taxpayer. The following background information on the package is courtesy of HNR Committee Chairman Bruce Westerman (AR-04), who highlighted the following provisions:

    • Reinstating quarterly onshore oil and gas lease sales, generating $12 billion in revenue.
    • Mandating at least 30 lease sales in the Gulf of America over the next 15 years and six in the Cook Inlet, generating billions of dollars in new revenue.
    • Returning to reasonable oil and natural gas royalty rates.
    • Requiring geothermal lease sales, generating $23 million in new revenue.
    • Resuming leasing for energy production in the National Petroleum Reserve in Alaska and the Arctic National Wildlife Refuge, generating over $1 billion in new revenue and savings.
    • Resuming coal leasing on federal lands.
    • Increasing timber sales on federal lands and requiring long-term timber contracts.
    • Rescinding various wasteful slush funds established under the Biden administration in agencies such as the National Oceanic and Atmospheric Administration, the National Park Service, and the Bureau of Land Management.
    • Investing in water infrastructure in the West.
    • Providing funding to celebrate America’s 250th anniversary, including by establishing the National Garden of American Heroes.

    MIL OSI USA News –

  • MIL-OSI: Enerflex Ltd. Announces Voting Results of The Annual Meeting of Shareholders

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, May 07, 2025 (GLOBE NEWSWIRE) — Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) (“Enerflex” or the “Company”), announces that at its Annual Meeting of Shareholders (the “Meeting”) held virtually on May 7, 2025, Enerflex’s shareholders approved the election of all 8 nominee directors presented in the Company’s Management Information Circular dated March 21, 2025. The shares represented at the Meeting voting on individual nominee directors were as follows:

         
      Approval Against
    Director Votes For Percentage Votes Against Percentage
    Fernando R. Assing 88,086,739 96.24% 3,444,156 3.76%
    Benjamin Cherniavsky 88,013,957 96.16% 3,516,938 3.84%
    Joanne Cox 83,911,502 91.68% 7,619,393 8.32%
    James C. Gouin 83,037,269 90.72% 8,493,626 9.28%
    Mona Hale 88,091,517 96.24% 3,439,378 3.76%
    Kevin J. Reinhart 79,599,459 86.96% 11,931,436 13.04%
    Thomas B. Tyree, Jr. 74,636,089 81.54% 16,894,806 18.46%
    Juan Carlos Villegas 79,933,294 87.33% 11,597,601 12.67%
             

    Enerflex’s non-binding advisory vote on executive compensation (“Say-on-Pay”) was approved with 91.59% (83,831,845 common shares) of the shares represented at the Meeting voting in favour of the resolution.

    ABOUT ENERFLEX

    Enerflex is a premier integrated global provider of energy infrastructure and energy transition solutions, deploying natural gas, low-carbon, and treated water solutions – from individual, modularized products and services to integrated custom solutions. With over 4,600 engineers, manufacturers, technicians, and innovators, Enerflex is bound together by a shared vision: Transforming Energy for a Sustainable Future. The Company remains committed to the future of natural gas and the critical role it plays, while focused on sustainability offerings to support the energy transition and growing decarbonization efforts.

    Enerflex’s common shares trade on the Toronto Stock Exchange under the symbol “EFX” and on the New York Stock Exchange under the symbol “EFXT”. For more information about Enerflex, visit www.enerflex.com.

    For investor and media enquiries, please contact the Company by email to chair@enerflex.com or ir@enerflex.com.

    The MIL Network –

  • MIL-OSI: LNG Energy Group Announces Application for Management Cease Trade Order

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, May 07, 2025 (GLOBE NEWSWIRE) — LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FWB: E26) (the “Company” or “LNG Energy Group”) announces that there will be a delay in filing its annual financial statements, management’s discussion and analysis, related officer certifications for the financial year ended December 31, 2024, and Form 51-101F1, Form 51-101F2 and Form 51-101F3, as required by National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (collectively, the “Required Filings”), which are required to be filed on or before April 30, 2025 (the “Filing Deadline”). The delay in filing the Required Filings is primarily a result of delays caused in getting its local operational audit completed, combined with recent departures of key Company personnel. The Company is continuing to work with its Canadian auditors to complete the Required Filings as soon as possible and expects to file them within two months of the Filing Deadline.

    In connection with the delay in filing, the Company has applied to the applicable Canadian securities regulators for the issuance of a management cease trade order which would restrict all trading in securities of the Company by the Company’s Chief Executive Officer and Chief Financial Officer.

    The Company intends to satisfy the provisions of the alternative information guidelines set out in sections 9 and 10 of National Policy 12-203 – Management Cease Trade Orders so long as the Required Filings remain outstanding. The Company confirms as of the date of this news release that there is no insolvency proceeding against it and there is no other material information concerning the affairs of the Company that has not been generally disclosed.

    About LNG Energy Group

    The Company is focused on the acquisition and development of natural gas production and exploration assets in Latin America. For more information, please visit www.lngenergygroup.com.

    For more information please contact:

    Angel Roa, Chief Financial Officer LNG Energy Group Corp.
    Website: www.lngenergygroup.com
    Email: investor.relations@lngenergygroup.com

    Find us on social media:
    LinkedIn: https://www.linkedin.com/company/lng-energy-group-inc/ Instagram: @lngenergygroup
    X: @LNGEnergyCorp

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

    This news release contains certain forward-looking information that reflect the current views and/or expectations of management of LNG Energy Group with respect to performance, business and future events. Forward-looking information can often be identified by words such as “may”, “will”, “would”, “could”, “should”, “believes”, “estimates”, “projects”, “potential”, “expects”, “plans”, “intends”, “anticipates”, “targeted”, “continues”, “forecasts”, “designed”, “goal”, or the negative of those words or other similar or comparable words. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which LNG Energy Group operates. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking information, readers should not place undue reliance on such information. The risks and uncertainties include, but are not limited to, whether LNG Energy Group will be able to obtain regulatory approval for the management cease trade order and the anticipating timing of filing the Required Filings. Forward-looking information is current as of the date it is made and is based on reasonable estimates and assumptions made by us at the relevant time in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances. LNG Energy Group does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

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

    The MIL Network –

  • MIL-OSI: Athabasca Oil Announces 2025 First Quarter Results Highlighted by 63% Growth in Funds Flow Per Share and Strong Operational Execution Driving a Robust Return of Capital Program

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, May 07, 2025 (GLOBE NEWSWIRE) — Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or the “Company”) is pleased to report its first quarter results highlighted by strong operational execution driving robust return of capital with the full completion of its second annual share buyback program. The Company is in an enviable position to weather market volatility with low corporate break-evens, long-life assets and a pristine balance sheet.

    Q1 2025 Consolidated Corporate Results

    • Production: Average production of 37,714 boe/d (98% Liquids), representing 13% (24% per share) growth year over year.
    • Cash Flow: Adjusted Funds Flow of $130 million ($0.25 per share), representing 63% per share growth year over year. Cash Flow from Operating Activities of $123 million. Free Cash Flow of $71 million from Athabasca (Thermal Oil).
    • Capital Program: $63 million total capital expenditures, with $44 million at Leismer as the Company advances the 40,000 bbl/d progressive growth project.

    Operations Highlights

    • Leismer: Production of ~28,000 bbl/d (April 2025) following the start-up of six redrills in the first quarter. Four additional new well pairs will be brought on stream in H2 2025 to maintain production rates at facility capacity.
    • Hangingstone: Production has increased to ~8,900 bbl/d (April 2025) following the start-up of two well pairs. The project continues to deliver meaningful free cash flow generation for the Company.
    • Duvernay Energy: Two multi-well pads (seven gross wells) are slated to be completed post break-up and will continue operational momentum in the Kaybob Duvernay play. Capital is trending ~$10 million lower than the 2025 budget at an estimated ~$75 million.

    Resilient Producer in a Shifting Global Landscape

    • Macro Volatility: Global oil benchmarks have softened in recent months in response to an accelerated OPEC+ supply outlook and evolving U.S. trade policy. Athabasca is uniquely positioned to withstand market volatility and its production is USMCA compliant and exempt from U.S. tariffs.
    • Pristine Balance Sheet & Tax Free Horizon: Athabasca has a Net Cash position of $115 million, strong Liquidity of $438 million (including $305 million cash) and a long dated maturity of 2029 on its term debt. The Company has $2.2 billion of tax pools (~80% high-value and immediately deductible).
    • Low Decline, Long Life Assets: Athabasca is uniquely positioned with a low base corporate decline and the Company expects to maintain Thermal Oil production in 2025 following recent capital projects. Athabasca has a deep inventory across its portfolio including 1,209 MMbbl of Proved plus Probable Thermal Oil reserves and ~444 gross future drilling locations within Duvernay Energy.
    • Low Break-evens: Long-life, low decline assets afford Athabasca with a sustaining capital advantage. The Company’s 2025 Thermal Oil operating break-even is estimated at ~US$32/bbl WTI and the capital program which includes growth initiatives is fully funded within cash flow down to ~US$48/bbl WTI for the balance of the year. The Company estimates long term sustaining capital investment of ~C$8/bbl (five‐year annual average) to hold production flat.
    • Flexible Capital: The Thermal Oil capital projects are flexible, highly economic and have optionality to be recalibrated based on the macroeconomic environment. Duvernay Energy retains significant flexibility on the pace of its operations and is positioned with an independent balance sheet and no near-term land expiries.
    • Sound Heavy Oil Fundamentals: The outlook for Canadian heavy oil remains strong supported by the Trans Mountain Expansion pipeline start-up in May 2024 and sustained global refining demand. This has resulted in tighter and less volatile WCS heavy differentials with spot markets currently trading at ~US$9/bbl. Athabasca is a direct beneficiary of structurally tighter differentials that are forecasted to hold in the coming years.


    Durable Shareholder Returns

    • Full Execution of Second Normal Course Issuer Bid (“NCIB”): On March 17, the Company fully completed its second annual NCIB, returning $289 million to shareholders and purchasing and cancelling 55 million shares.
    • Continued 100% of Free Cash Flow (Thermal Oil) Return to Shareholders through Buybacks in 2025: The Company renewed its third annual NCIB with capacity to repurchase up to 50 million shares. The Company has completed $94 million in share buybacks year to date. Athabasca has reduced its fully diluted share count by ~20% since March 31, 2023.
    • Durable Shareholder Returns: The Company’s capital allocation framework will continue to balance near-term return of capital initiatives for shareholders with a multi-year growth trajectory of cash flow per share. The Company sees significant intrinsic value not reflected in the current share price and intends to remain active with its share buyback strategy.

    Strategic Update and Corporate Guidance

    • Athabasca (Thermal Oil): The Thermal Oil division underpins the Company’s strong Free Cash Flow outlook, with production guidance of 33,500 – 35,500 bbl/d and a ~$250 million capital budget. Athabasca has differentiated and significant unrecovered capital balances on its Thermal Oil Assets that ensure a low Crown royalty framework (~7%1). Leismer is forecasted to remain pre-payout until late 20271 (and beyond with incremental project capital) while Hangingstone is forecasted to remain pre-payout beyond 20301.
    • Consolidated Production Outlook: Athabasca’s consolidated annual production guidance is 37,500 – 39,500 boe/d. Current production is ~40,000 boe/d and with current capital plans the Company is expecting to be at the upper end of guidance and anticipates exiting the year at ~41,000 boe/d.
    • Leismer Progressive Growth: The 2025 program at Leismer includes the tie-in of six redrills and four new well pairs on Pad 10 along with continued pad and facility expansion work for the progressive expansion to 40,000 bbl/d. This expansion project is highly economic (~$25,000/bbl/d capital efficiency) and provides flexibility with interim growth targets to ~32,000 bbl/d and ~35,000 bbl/d before achieving the regulatory approved 40,000 bbl/d capacity.
    • Duvernay Energy Corporation: The 2025 capital program of ~$75 million will continue production momentum in H2 2025 with an exit target of ~6,000 boe/d. Capital activity includes the completion of a 100% working interest (“WI”) three-well pad that was drilled in 2024, the drilling and completion of a 30% WI four-well pad (spud in Q1 2025) and the construction of a gathering system on operated lands. The capital program in Duvernay Energy Corporation is flexible and designed to be self-funded. The Company has a deep inventory of ~444 gross future drilling locations.
    • Free Cash Flow Focus: The Company forecasts consolidated Adjusted Funds Flow between $525 – $550 million1, including $475 – $500 million from its Thermal Oil assets. Every +US$1/bbl move in West Texas Intermediate (“WTI”) and Western Canadian Select (“WCS”) heavy oil impacts annual Adjusted Funds Flow by ~$10 million and ~$17 million, respectively. The 2025 Thermal Oil capital program, including growth initiatives, is fully funded within cash flow down to ~US$48 WTI for the balance of the year. Duvernay Energy is independently funded through its balance sheet and cash flow.
    • Capital Allocation Discipline: Athabasca has demonstrated its business resiliency and prudent management through past commodity cycles. The Company is nimble with respect to its operating plans and has levers available to adjust to a volatile macro environment. Preserving a pristine balance sheet is paramount to the strategy.
    • Steadfast Focus on Cash Flow Per Share Growth: The Company forecasts ~20% compounded annual cash flow per share1 growth between 2025 – 2029 driven by investing in attractive capital projects and prioritizing share buybacks with free cash flow.

    Footnote: Refer to the “Reader Advisory” section within this news release for additional information on Non‐GAAP Financial Measures (e.g. Adjusted Funds Flow, Free Cash Flow, Net Cash, Liquidity) and production disclosure.

    12025 pricing assumptions: US$70 WTI, US$12.50 WCS heavy differential, C$2 AECO, and 0.725 C$/US$ FX.

    Annual Shareholders Meeting

    Athabasca will be hosting its Annual General Meeting of Shareholders (“Meeting”) on Thursday, May 8, 2025 at 8:00 am (MT). The Meeting will be hosted virtually and shareholders and guests can listen via live webcast with details available at:

           https://www.atha.com/investors/presentation-events.html

    Financial and Operational Highlights

      Three months ended
    March 31,
    ($ Thousands, unless otherwise noted) 2025     2024  
    CORPORATE CONSOLIDATED(1)      
    Petroleum and natural gas production (boe/d)(2)   37,714       33,470  
    Petroleum, natural gas and midstream sales $ 367,844     $ 311,116  
    Operating Income(2) $ 145,590     $ 105,135  
    Operating Income Net of Realized Hedging(2)(3) $ 143,947     $ 106,580  
    Operating Netback ($/boe)(2) $ 44.07     $ 35.78  
    Operating Netback Net of Realized Hedging ($/boe)(2)(3) $ 43.57     $ 36.27  
    Capital expenditures $ 63,333     $ 76,011  
    Cash flow from operating activities $ 123,353     $ 76,638  
    per share – basic $ 0.24     $ 0.14  
    Adjusted Funds Flow(2) $ 129,675     $ 87,772  
    per share – basic $ 0.25     $ 0.15  
    ATHABASCA (THERMAL OIL)      
    Bitumen production (bbl/d)(2)   34,742       31,536  
    Petroleum, natural gas and midstream sales $ 362,375     $ 305,041  
    Operating Income(2) $ 135,316     $ 100,449  
    Operating Netback ($/bbl)(2) $ 44.56     $ 36.36  
    Capital expenditures $ 50,376     $ 42,119  
    Adjusted Funds Flow(2) $ 121,353     $ 83,713  
    Free Cash Flow(2) $ 70,977     $ 41,594  
    DUVERNAY ENERGY(1)      
    Petroleum and natural gas production (boe/d)(2)   2,972       1,934  
    Percentage Liquids (%)(2) 73 %   72 %
    Petroleum, natural gas and midstream sales $ 17,619     $ 11,538  
    Operating Income(2) $ 10,274     $ 4,686  
    Operating Netback ($/boe)(2) $ 38.42     $ 26.63  
    Capital expenditures $ 12,957     $ 33,892  
    Adjusted Funds Flow(2) $ 8,322     $ 4,059  
    Free Cash Flow(2) $ (4,635 )   $ (29,833 )
    NET INCOME AND COMPREHENSIVE INCOME      
    Net income and comprehensive income(4) $ 72,004     $ 38,609  
    per share – basic(4) $ 0.14     $ 0.07  
    per share – diluted(4) $ 0.14     $ 0.07  
    COMMON SHARES OUTSTANDING      
    Weighted average shares outstanding – basic   514,257,036       567,076,940  
    Weighted average shares outstanding – diluted   519,227,432       577,106,504  
      March 31,   December 31,  
    As at ($ Thousands) 2025   2024  
    LIQUIDITY AND BALANCE SHEET (CONSOLIDATED)        
    Cash and cash equivalents $ 304,538   $ 344,836  
    Available credit facilities(5) $ 133,074   $ 136,324  
    Face value of term debt $ 200,000   $ 200,000  

    (1) Corporate Consolidated and Duvernay Energy reflect gross production and financial metrics before taking into consideration Athabasca’s 70% equity interest in Duvernay Energy.
    (2) Refer to the “Advisories and Other Guidance” section within this News Release for additional information on Non-GAAP Financial Measures and production disclosure.
    (3) Includes realized commodity risk management loss of $1.6 million for the three months ended March 31, 2025 (three months ended March 31, 2024 – gain of $1.4 million).
    (4) Net income and comprehensive income per share amounts are based on net income and comprehensive income attributable to shareholders of the Parent Company.
    (5) Includes available credit under Athabasca’s and Duvernay Energy’s Credit Facilities and Athabasca’s Unsecured Letter of Credit Facility.

    Athabasca (Thermal Oil) Q1 2025 Highlights and Operations Update

    • Production: First quarter production of 34,742 bbl/d (27,025 bbl/d at Leismer & 7,717 bbl/d at Hangingstone).
    • Cash Flow: Adjusted Funds Flow of $121.4 million; Operating Income of $135.3 million with an Operating Netback of $44.56/bbl ($46.24/bbl at Leismer & $38.43/bbl at Hangingstone).
    • Capital Program: $50.4 million of capital expenditures in Q1, with $43.7 million at Leismer as the Company advances the 40,000 bbl/d progressive growth project.
    • Free Cash Flow: $71.0 million of Free Cash Flow supporting 100% return of capital commitment.


    Leismer

    In Q1 2025, the Company brought six extended redrills on Pad L1 (1,000 – 1,700 meter laterals) on production supporting current production of ~28,000 bbl/d (April 2025). The redrills target bypass pay on legacy pads with initial production rates between 400 – 1,000 bbl/d per well. In 2024, the Company drilled an additional four well pairs on Pad L10 that will maintain production rates at facility capacity for the balance of 2025. Another six well pairs will be drilled in H2 2025.

    Activity at Leismer remains focused on advancing progressive growth to 40,000 bbl/d by the end of 2027. The project cost is estimated at $300 million generating a capital efficiency of approximately $25,000/bbl/d. The $300 million will be spent between 2025 and 2027 and includes an estimated $190 million for facility capital and an estimated $110 million for growth wells. The project remains on budget and on schedule with the original sanction plans announced in July 2024. The progressive build provides flexibility with interim growth targets to ~32,000 bbl/d and ~35,000 bbl/d before achieving the regulatory approved 40,000 bbl/d capacity. This winter the Company completed regional infrastructure to Pad L10 and L11 including lease site construction, delineation drilling and pipeline looping. The project scope includes the installation of two new steam generators that were countercyclically acquired during a prior commodity down cycle.

    Leismer is forecasted to remain pre-payout from a crown royalty perspective until late 20271.

    Hangingstone

    At Hangingstone two extended reach sustaining well pairs (~1,400 meter average laterals) drilled in 2024 were placed on production in March supporting current production of ~8,900 bbl/d (April 2025). These are the first wells drilled at the project since 2015. The new well pairs have ramped up faster than anticipated, benefiting from favorable reservoir temperatures and pressure supported by offsetting wells. Early performance has exceeded expectations with initial production rates of 800 – 1,000 bbl/d per well.

    Hangingstone continues to deliver meaningful cash flow contributions to the Company and also has a pre-payout crown royalty structure beyond 20301.

    Duvernay Energy Corporation Q1 2025 Highlights and Operations Update

    • Production: First quarter production of 2,972 boe/d (73% Liquids).
    • Cash Flow: Adjusted Funds Flow of $8.3 million with an Operating Netback of $38.42/boe.
    • Capital Program: $13.0 million of capital expenditures included spudding a 30% WI four-well pad and constructing a strategic gathering system.  

    Q1 activity included spudding a four well pad (30% working interest) with average laterals of ~5,000 meters and construction of strategic gathering system connecting its newly operated assets with the Company’s existing operated infrastructure on the joint venture acreage. Completion operations will be phased through the balance of the year with the four well pad (30% WI) expected to be completed in Q3 and three well pad (100% WI) in early Fall. The Company expects to exit the year at ~6,000 boe/d.

    Production from wells drilled in 2024 continue to validate DEC’s type curve expectations. The five wells placed on production have averaged IP30’s of ~1,200 boe/d per well (86% Liquids) and IP90s of ~940 boe/d (86% Liquids) per well.

    2025 capital is trending ~$10 million lower than original budget and is estimated at ~$75 million, reflecting disciplined execution. Duvernay Energy retains significant operational flexibility with no near-term land expiries and the ability to adjust spending in response to commodity price movements.

    About Athabasca Oil Corporation

    Athabasca Oil Corporation is a Canadian energy company with a focused strategy on the development of thermal and light oil assets. Situated in Alberta’s Western Canadian Sedimentary Basin, the Company has amassed a significant land base of extensive, high quality resources. Athabasca’s light oil assets are held in a private subsidiary (Duvernay Energy Corporation) in which Athabasca owns a 70% equity interest. Athabasca’s common shares trade on the TSX under the symbol “ATH”. For more information, visit www.atha.com.

    For more information, please contact:    
    Matthew Taylor   Robert Broen
    Chief Financial Officer   President and CEO
    1-403-817-9104   1-403-817-9190
    mtaylor@atha.com   rbroen@atha.com
         

    Reader Advisory:

    This News Release contains forward-looking information that involves various risks, uncertainties and other factors. All information other than statements of historical fact is forward-looking information. The use of any of the words “anticipate”, “plan”, “project”, “continue”, “maintain”, “may”, “estimate”, “expect”, “will”, “target”, “forecast”, “could”, “intend”, “potential”, “guidance”, “outlook” and similar expressions suggesting future outcome are intended to identify forward-looking information. The forward-looking information is not historical fact, but rather is based on the Company’s current plans, objectives, goals, strategies, estimates, assumptions and projections about the Company’s industry, business and future operating and financial results. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. No assurance can be given that these expectations will prove to be correct and such forward-looking information included in this News Release should not be unduly relied upon. This information speaks only as of the date of this News Release. In particular, this News Release contains forward-looking information pertaining to, but not limited to, the following: our strategic plans; the allocation of future capital; timing and quantum for shareholder returns including share buybacks; the terms of our NCIB program; our drilling plans and capital efficiencies; production growth to expected production rates and estimated sustaining capital amounts; timing of Leismer’s and Hangingstone’s pre-payout royalty status; applicability of tax pools; exemption from U.S. tariffs; Adjusted Funds Flow and Free Cash Flow over various periods; type well economic metrics; number of drilling locations; forecasted daily production and the composition of production; break-even metrics, our outlook in respect of the Company’s business environment, including in respect of commodity pricing; and other matters.

    In addition, information and statements in this News Release relating to “Reserves” and “Resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and that the reserves and resources described can be profitably produced in the future. With respect to forward-looking information contained in this News Release, assumptions have been made regarding, among other things: commodity prices; the regulatory framework governing royalties, taxes and environmental matters in the jurisdictions in which the Company conducts and will conduct business and the effects that such regulatory framework will have on the Company, including on the Company’s financial condition and results of operations; the Company’s financial and operational flexibility; the Company’s financial sustainability; Athabasca’s cash flow break-even commodity price; the Company’s ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the applicability of technologies for the recovery and production of the Company’s reserves and resources; future capital expenditures to be made by the Company; future sources of funding for the Company’s capital programs; the Company’s future debt levels; future production levels; the Company’s ability to obtain financing and/or enter into joint venture arrangements, on acceptable terms; operating costs; compliance of counterparties with the terms of contractual arrangements; impact of increasing competition globally; collection risk of outstanding accounts receivable from third parties; geological and engineering estimates in respect of the Company’s reserves and resources; recoverability of reserves and resources; the geography of the areas in which the Company is conducting exploration and development activities and the quality of its assets. Certain other assumptions related to the Company’s Reserves and Resources are contained in the report of McDaniel & Associates Consultants Ltd. (“McDaniel”) evaluating Athabasca’s Proved Reserves, Probable Reserves and Contingent Resources as at December 31, 2024 (which is respectively referred to herein as the “McDaniel Report”).

    Actual results could differ materially from those anticipated in this forward-looking information as a result of the risk factors set forth in the Company’s Annual Information Form (“AIF”) dated March 5, 2025 available on SEDAR at www.sedarplus.ca, including, but not limited to: weakness in the oil and gas industry; exploration, development and production risks; prices, markets and marketing; market conditions; trade relations and tariffs; climate change and carbon pricing risk; statutes and regulations regarding the environment including deceptive marketing provisions; regulatory environment and changes in applicable law; gathering and processing facilities, pipeline systems and rail; reputation and public perception of the oil and gas sector; environment, social and governance goals; political uncertainty; state of capital markets; ability to finance capital requirements; access to capital and insurance; abandonment and reclamation costs; changing demand for oil and natural gas products; anticipated benefits of acquisitions and dispositions; royalty regimes; foreign exchange rates and interest rates; reserves; hedging; operational dependence; operating costs; project risks; supply chain disruption; financial assurances; diluent supply; third party credit risk; indigenous claims; reliance on key personnel and operators; income tax; cybersecurity; advanced technologies; hydraulic fracturing; liability management; seasonality and weather conditions; unexpected events; internal controls; limitations and insurance; litigation; natural gas overlying bitumen resources; competition; chain of title and expiration of licenses and leases; breaches of confidentiality; new industry related activities or new geographical areas; water use restrictions and/or limited access to water; relationship with Duvernay Energy Corporation; management estimates and assumptions; third-party claims; conflicts of interest; inflation and cost management; credit ratings; growth management; impact of pandemics; ability of investors resident in the United States to enforce civil remedies in Canada; and risks related to our debt and securities. All subsequent forward-looking information, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.

    Also included in this News Release are estimates of Athabasca’s 2025 outlook which are based on the various assumptions as to production levels, commodity prices, currency exchange rates and other assumptions disclosed in this News Release. To the extent any such estimate constitutes a financial outlook, it was approved by management and the Board of Directors of Athabasca and is included to provide readers with an understanding of the Company’s outlook. Management does not have firm commitments for all of the costs, expenditures, prices or other financial assumptions used to prepare the financial outlook or assurance that such operating results will be achieved and, accordingly, the complete financial effects of all of those costs, expenditures, prices and operating results are not objectively determinable. The actual results of operations of the Company and the resulting financial results may vary from the amounts set forth herein, and such variations may be material. The outlook and forward-looking information contained in this New Release was made as of the date of this News release and the Company disclaims any intention or obligations to update or revise such outlook and/or forward-looking information, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law.

    Oil and Gas Information

    “BOEs” may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (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. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

    Initial Production Rates 

    Test Results and Initial Production Rates: The well test results and initial production rates provided herein should be considered to be preliminary, except as otherwise indicated. Test results and initial production rates disclosed herein may not necessarily be indicative of long-term performance or of ultimate recovery.

    Reserves Information

    The McDaniel Report was prepared using the assumptions and methodology guidelines outlined in the COGE Handbook and in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities, effective December 31, 2024. There are numerous uncertainties inherent in estimating quantities of bitumen, light crude oil and medium crude oil, tight oil, conventional natural gas, shale gas and natural gas liquids reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth above are estimates only. In general, estimates of economically recoverable reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserve recovery, timing and amount of capital expenditures, 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. For those reasons, estimates of the economically recoverable reserves attributable to any particular group of properties, classification of such reserves based on risk of recovery and estimates of future net revenues associated with reserves prepared by different engineers, or by the same engineers at different times, may vary. The Company’s actual production, revenues, taxes and development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material. Reserves figures described herein have been rounded to the nearest MMbbl or MMboe. For additional information regarding the consolidated reserves and information concerning the resources of the Company as evaluated by McDaniel in the McDaniel Report, please refer to the Company’s AIF.

    Reserve Values (i.e. Net Asset Value) is calculated using the estimated net present value of all future net revenue from our reserves, before income taxes discounted at 10%, as estimated by McDaniel effective December 31, 2024 and based on average pricing of McDaniel, Sproule and GLJ as of January 1, 2025.

    The 444 gross Duvernay drilling locations referenced include: 87 proved undeveloped locations and 85 probable undeveloped locations for a total of 172 booked locations with the balance being unbooked locations. Proved undeveloped locations and probable undeveloped locations are booked and derived from the Company’s most recent independent reserves evaluation as prepared by McDaniel as of December 31, 2024 and account for drilling locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal management estimates. Unbooked locations do not have attributed reserves or resources (including contingent or prospective). Unbooked locations have been identified by management as an estimation of Athabasca’s multi-year drilling activities expected to occur over the next two decades based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which the Company will actually drill wells, including the number and timing thereof is ultimately dependent upon the availability of funding, commodity prices, provincial fiscal and royalty policies, costs, actual drilling results, additional reservoir information that is obtained and other factors.

    Non-GAAP and Other Financial Measures, and Production Disclosure

    The “Corporate Consolidated Adjusted Funds Flow”, “Corporate Consolidated Adjusted Funds Flow per Share”, “Athabasca (Thermal Oil) Adjusted Funds Flow”, “Duvernay Energy Adjusted Funds Flow”, “Corporate Consolidated Free Cash Flow”, “Athabasca (Thermal Oil) Free Cash Flow”, “Duvernay Energy Free Cash Flow”, “Corporate Consolidated Operating Income”, “Corporate Consolidated Operating Income Net of Realized Hedging”, “Athabasca (Thermal Oil) Operating Income”, “Duvernay Energy Operating Income”, “Corporate Consolidated Operating Netback”, “Corporate Consolidated Operating Netback Net of Realized Hedging”, “Athabasca (Thermal Oil) Operating Netback”, “Duvernay Energy Operating Netback” and “Cash Transportation and Marketing Expense” financial measures contained in this News Release do not have standardized meanings which are prescribed by IFRS and they are considered to be non-GAAP financial measures or ratios. These measures may not be comparable to similar measures presented by other issuers and should not be considered in isolation with measures that are prepared in accordance with IFRS. Net Cash and Liquidity are supplementary financial measures. The Leismer and Hangingstone operating results are supplementary financial measures that when aggregated, combine to the Athabasca (Thermal Oil) segment results.

    Adjusted Funds Flow, Adjusted Funds Flow Per Share and Free Cash Flow

    Adjusted Funds Flow and Free Cash Flow are non-GAAP financial measures and are not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. The Adjusted Funds Flow and Free Cash Flow measures allow management and others to evaluate the Company’s ability to fund its capital programs and meet its ongoing financial obligations using cash flow internally generated from ongoing operating related activities. Adjusted Funds Flow per share is a non-GAAP financial ratio calculated as Adjusted Funds Flow divided by the applicable number of weighted average shares outstanding. Adjusted Funds Flow and Free Cash Flow are calculated as follows:

      Three months ended
    March 31, 2025    		  
    ($ Thousands) Athabasca
    (Thermal Oil)    		   Duvernay Energy(1)   Corporate Consolidated(1)  
    Cash flow from operating activities $ 113,427   $ 9,926   $ 123,353  
    Changes in non-cash working capital   7,230     (1,612 )   5,618  
    Settlement of provisions   696     8     704  
    ADJUSTED FUNDS FLOW   121,353     8,322     129,675  
    Capital expenditures   (50,376 )   (12,957 )   (63,333 )
    FREE CASH FLOW $ 70,977   $ (4,635 ) $ 66,342  

    (1) Duvernay Energy and Corporate Consolidated reflect gross financial metrics before taking into consideration Athabasca’s 70% equity interest in Duvernay Energy.

      Three months ended
    March 31, 2024    		  
    ($ Thousands) Athabasca
    (Thermal Oil)    		   Duvernay Energy(1)   Corporate Consolidated(1)  
    Cash flow from operating activities $ 72,730   $ 3,908   $ 76,638  
    Changes in non-cash working capital   9,382     149     9,531  
    Settlement of provisions   1,601     2     1,603  
    ADJUSTED FUNDS FLOW   83,713     4,059     87,772  
    Capital expenditures   (42,119 )   (33,892 )   (76,011 )
    FREE CASH FLOW $ 41,594   $ (29,833 ) $ 11,761  

    (1) Duvernay Energy and Corporate Consolidated reflect gross financial metrics before taking into consideration Athabasca’s 70% equity interest in Duvernay Energy.

    Duvernay Energy Operating Income and Operating Netback

    The non-GAAP measure Duvernay Energy Operating Income in this News Release is calculated by subtracting the Duvernay Energy royalties, operating expenses and transportation & marketing expenses from petroleum and natural gas sales which is the most directly comparable GAAP measure. The Duvernay Energy Operating Netback per boe is a non-GAAP financial ratio calculated by dividing the Duvernay Energy Operating Income by the Duvernay Energy production. The Duvernay Energy Operating Income and the Duvernay Energy Operating Netback measures allow management and others to evaluate the production results from the Company’s Duvernay Energy assets.

    The Duvernay Energy Operating Income is calculated using the Duvernay Energy Segments GAAP results, as follows:

      Three months ended
    March 31,    		  
    ($ Thousands, unless otherwise noted) 2025   2024  
    Petroleum and natural gas sales $ 17,619   $ 11,538  
    Royalties   (2,761 )   (2,314 )
    Operating expenses   (3,786 )   (3,640 )
    Transportation and marketing   (798 )   (898 )
    DUVERNAY ENERGY OPERATING INCOME(1) $ 10,274   $ 4,686  

    Athabasca (Thermal Oil) Operating Income and Operating Netback

    The non-GAAP measure Athabasca (Thermal Oil) Operating Income in this News Release is calculated by subtracting the Athabasca (Thermal Oil) segments cost of diluent blending, royalties, operating expenses and cash transportation & marketing expenses from heavy oil (blended bitumen) and midstream sales which is the most directly comparable GAAP measure. The Athabasca (Thermal Oil) Operating Netback per bbl is a non-GAAP financial ratio calculated by dividing the respective projects Operating Income by its respective bitumen sales volumes. The Athabasca (Thermal Oil) Operating Income and the Athabasca (Thermal Oil) Operating Netback measures allow management and others to evaluate the production results from the Athabasca (Thermal Oil) assets.

    The Athabasca (Thermal Oil) Operating Income is calculated using the Athabasca (Thermal Oil) Segments GAAP results, as follows:

      Three months ended
    March 31,    		  
    ($ Thousands, unless otherwise noted) 2025   2024  
    Heavy oil (blended bitumen) and midstream sales $ 362,375   $ 305,041  
    Cost of diluent   (152,132 )   (133,860 )
    Total bitumen and midstream sales   210,243     171,181  
    Royalties   (15,964 )   (11,537 )
    Operating expenses – non-energy   (24,887 )   (23,125 )
    Operating expenses – energy   (13,507 )   (16,558 )
    Transportation and marketing(1)   (20,569 )   (19,512 )
    ATHABASCA (THERMAL OIL) OPERATING INCOME(2) $ 135,316   $ 100,449  

    (1) Transportation and marketing excludes non-cash costs of $0.6 million for the three months ended March 31, 2025 (three months ended March 31, 2024 – $0.6 million).

    Corporate Consolidated Operating Income and Corporate Consolidated Operating Income Net of Realized Hedging and Operating Netbacks

    The non-GAAP measures of Corporate Consolidated Operating Income including or excluding realized hedging in this News Release are calculated by adding or subtracting realized gains (losses) on commodity risk management contracts (as applicable), royalties, the cost of diluent blending, operating expenses and cash transportation & marketing expenses from petroleum, natural gas and midstream sales which is the most directly comparable GAAP measure. The Corporate Consolidated Operating Netbacks including or excluding realized hedging per boe are non-GAAP ratios calculated by dividing Corporate Consolidated Operating Income including or excluding hedging by the total sales volumes and are presented on a per boe basis. The Corporate Consolidated Operating Income and Corporate Consolidated Operating Netbacks including or excluding realized hedging measures allow management and others to evaluate the production results from the Company’s Duvernay Energy and Athabasca (Thermal Oil) assets combined together including the impact of realized commodity risk management gains or losses (as applicable).

      Three months ended
    March 31,    		  
    ($ Thousands, unless otherwise noted) 2025   2024  
    Petroleum, natural gas and midstream sales(1) $ 379,994   $ 316,579  
    Royalties   (18,725 )   (13,851 )
    Cost of diluent(1)   (152,132 )   (133,860 )
    Operating expenses   (42,180 )   (43,323 )
    Transportation and marketing(2)   (21,367 )   (20,410 )
    Operating Income(3)   145,590     105,135  
    Realized gain (loss) on commodity risk mgmt. contracts   (1,643 )   1,445  
    OPERATING INCOME NET OF REALIZED HEDGING(3) $ 143,947   $ 106,580  

    (1) Non-GAAP measure includes intercompany NGLs (i.e. condensate) sold by the Duvernay Energy segment to the Athabasca (Thermal Oil) segment for use as diluent that is eliminated on consolidation.
    (2) Transportation and marketing excludes non-cash costs of $0.6 million for the three months ended March 31, 2025 (three months ended March 31, 2024 – $0.6 million).

    Cash Transportation and Marketing Expense

    The Cash Transportation and Marketing Expense financial measures contained in this News Release are calculated by subtracting the non-cash transportation and marketing expense as reported in the Consolidated Statement of Cash Flows from the transportation and marketing expense as reported in the Consolidated Statement of Income (Loss) and are considered to be non-GAAP financial measures.

    Net Cash

    Net Cash is defined as the face value of term debt, plus accounts payable and accrued liabilities, plus current portion of provisions and other liabilities plus income tax payable less current assets, excluding risk management contracts.

    Liquidity

    Liquidity is defined as cash and cash equivalents plus available credit capacity.

    Production volumes details

        Three months ended
    March 31,    		  
    Production   2025   2024  
    Duvernay Energy:          
    Oil and condensate NGLs(1) bbl/d   1,839     1,205  
    Other NGLs bbl/d   326     180  
    Natural gas(2) mcf/d   4,844     3,291  
    Total Duvernay Energy boe/d   2,972     1,934  
    Total Thermal Oil bitumen bbl/d   34,742     31,536  
    Total Company production boe/d   37,714     33,470  

    (1) Comprised of 99% or greater of tight oil, with the remaining being light and medium crude oil.
    (2) Comprised of 99% or greater of shale gas, with the remaining being conventional natural gas.

    This News Release also makes reference to Athabasca’s forecasted average daily Thermal Oil production of 33,500 ‐ 35,500 bbl/d for 2025. Athabasca expects that 100% of that production will be comprised of bitumen. Duvernay Energy’s forecasted total average daily production of ~4,000 boe/d for 2025 is expected to be comprised of approximately 68% tight oil, 23% shale gas and 9% NGLs.

    Liquids is defined as bitumen, light crude oil, medium crude oil and natural gas liquids.

    Break Even is an operating metric that calculates the US$WTI oil price required to fund operating costs (Operating Break-even), sustaining capital (Sustaining Break-even), or growth capital (Total Capital) within Adjusted Funds Flow.

    Footnote: Refer to the “Reader Advisory” section within this news release for additional information on Non‐GAAP Financial Measures (e.g. Adjusted Funds Flow, Free Cash Flow, Net Cash, Liquidity) and production disclosure.

    1 2025 pricing assumptions: US$70 WTI, US$12.50 WCS heavy differential, C$2 AECO, and 0.725 C$/US$ FX.

    The MIL Network –

  • MIL-OSI New Zealand: Action gets underway at Waitarakao

    Source: PISA results continue to show more to be done for equity in education

    Date:

    Waitarakao community beach clean-ups

    Volunteers recently completed the project’s fourth beach clean-up.

    Twenty volunteers took part in the beach clean-up.

    • Six tyres and a road cone were removed.
    • Fifteen bags of rubbish were collected.

    The effort helped prevent pollution from entering the ocean or lagoon and harming wildlife.

    Izzy Macfarlane (Craighead) and Jack Bennett, Luke Campbell (Roncalli), Timaru, are working toward their Duke of Edinburgh Awards

    Rural restoration work

    Further inland, farmers in the catchment are working closely with our biodiversity advisors on restoration work on their land.

    • streams are being fenced off and planted, aiming over time to improve water quality and habitat for native species like mudfish
    • water quality is being improved
    • and mudfish habitats are being nurtured back to health.

    This work is being done with both the environment and future generations in mind.

    A recent field day organised by local landowners and Living Landscapes, and supported by Our Waitarakao was a great day out and a fantastic opportunity for the 50 or so participants to share ideas and build relationships.

    We thank Living Landscapes and landowners for inviting us along to share in such a positive event.

    Biodiversity advisors Jenna Games-Hughes, Abi Hill, and farmer Jeremy Gaskin improving mudfish habitat in Papaka Stream

    Community pest trapping

    At the same time, community predator trapping initiatives are gaining momentum.

    We’ve had a great response from businesses and residents in a target area around the lagoon who have volunteered to host traps and monitoring equipment, which will be distributed in the next few weeks.

    This is to support the trapping work we’re doing in the lagoon, and to help prevent reinfestation of that wildlife refuge.

    Chris Fauth signing up community pest trapping partners at a drop-in event with Tim Exton from Department of Conservation

    Our Waitarakao strategy –  actions and projects

    There’s lots more happening, including Timaru schools incorporating the lagoon and Our Waitarakao into their learning, and we’re progressing a crucial investigation that will support a blueprint for the future lagoon, as per the first objective of the strategy.

    Our staff and project partners are working alongside the community, supporting practical action with a shared vision for a healthier, more resilient catchment.

    What’s happening in Waitarakao is more than just environmental work—it’s a partnership between people and place.

    Learn more about the

    Our Waitarakao –  actions and projects underway and how you can get involved.

    Environment Canterbury © 2025
    Retrieved: 10:52am, Thu 08 May 2025
    ecan.govt.nz/get-involved/news-and-events/2025/action-gets-underway-at-waitarakao/

    MIL OSI New Zealand News –

  • MIL-OSI: Pieridae Releases Q1 2025 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN UNITED STATES

    CALGARY, Alberta, May 07, 2025 (GLOBE NEWSWIRE) — Pieridae Energy Limited (“Pieridae” or the “Company”) (TSX: PEA) announces the release of its first quarter 2025 financial and operating results. The Company produced 22,584 boe/d and generated Net Operating Income1 (“NOI”) of $32.6 million during the first quarter of 2025. Management’s discussion and analysis (“MD&A”) and unaudited interim condensed consolidated financial statements and notes for the quarter ended March 31, 2025 are available at www.pieridaeenergy.com and on SEDAR+ at www.sedarplus.ca.

    “Pieridae continues building momentum this quarter with strong financial results driven, in part, by proactive decision making from our management team,” said Darcy Reding, President and CEO. “During the first quarter, we restarted 1,800 boe/d of previously shut-in dry gas volumes in response to improvements in AECO natural gas prices. We also monetized a portion of our in-the-money 2026 and 2027 natural gas financial hedge position, generating proceeds of $10.2 million which we used to reduce debt, while increasing exposure of our 2026 and 2027 natural gas production to future market prices. Our team remains focused on key milestones and catalysts in 2025, highlighted by continued debt reduction, growth in our third-party gathering and processing business, and the December 31, 2025 expiration of a long-term fixed price sulphur marketing agreement.”

    Q1 2025 HIGHLIGHTS

    • Generated NOI of $32.6 million ($0.11 per basic and fully diluted share).
    • Generated Funds Flow from Operations1 of $21.7 million ($0.07 per basic and fully diluted share).
    • Incurred operating expenses of $44.0 million, down 15% from Q1 2024, reflecting both production shut-ins and the continued reduction of field and facility operating cost structure.
    • Produced 22,584 boe/d (78% natural gas), down 35% from Q1 2024 due to the voluntary shut-in of approximately 9,400 boe/d of uneconomic dry gas production from Q3 2024 through February 2025 and an unplanned outage at the Jumping Pound gas plant from late February to early April.
    • Completed additional routine maintenance during the Q1 Jumping Pound gas plant outage that permitted deferral of the plant’s scheduled 2026 maintenance turnaround by one year to 2027.
    • Restarted approximately 1,800 boe/d shut-in Northeast BC and Northern Alberta production, benefitting from stronger gas prices during Q1.
    • Increased third-party raw gas processing volumes to 81.8 MMcf/d, up 40% from Q1 2024 and highlighted by the Caroline gas plant’s 58.9 MMcf/d contribution, up 122% from Q1 2024.   
    • Executed capital expenditure activity of $6.5 million, primarily on the Super Claus sulphur condenser repair at the Jumping Pound gas plant, along with well and facility optimization projects.
    • Completed a hedge monetization transaction in March 2025 for a portion of 2026 and 2027 natural gas contracts for net proceeds of $10.2 million and repaid a portion of the senior term loan.
    • Reduced Net Debt1 to $185.4 million, a $12.1 million decrease from Q4 2024.
    • Proposed a name change to Cavvy Energy Ltd. in support of our corporate strategy, subject to shareholder approval at the Company’s Annual and Special Meeting of Shareholders on May 8, 2025.

    ________________

    1Refer to the “non-GAAP measures” section of the Company’s MD&A.

           
      2025 2024 2023
    ($ 000s unless otherwise noted) Q1   Q4   Q3   Q2   Q1   Q4   Q3   Q2  
    Production                                
    Natural gas (Mcf/d) 105,338   111,787   115,196   157,077   175,356   174,211   155,763   159,427  
    Condensate (bbl/d) 2,454   2,149   2,191   2,472   2,781   2,384   2,020   2,300  
    NGLs (bbl/d) 2,574   1,788   1,726   2,210   2,613   1,921   2,273   2,216  
    Sulphur (tonne/d) 1,076   968   1,444   1,376   1,491   1,284   1,124   1,362  
    Total production (boe/d) (1) 22,584   22,568   23,116   30,861   34,620   33,340   30,253   31,087  
    Third-party volumes processed (Mcf/d raw) (2) 81,777   71,497   66,518   52,410   58,423   67,350   57,363   51,973  
    Financial                                
    Natural gas price ($/Mcf)                                
    Realized before Risk Management Contracts (3) 2.24   1.55   0.77   1.14   2.53   2.32   2.65   2.39  
    Realized after Risk Management Contracts (3) 3.58   3.36   3.43   2.71   3.21   3.12   3.25   3.03  
    Benchmark natural gas price 2.14   1.46   0.68   1.17   2.48   2.29   2.59   2.40  
    Condensate price ($/bbl)                                
    Realized before Risk Management Contracts (3) 95.15   94.87   92.13   99.96   91.18   97.15   97.47   84.81  
    Realized after Risk Management Contracts (3) 88.29   90.61   84.61   87.75   84.49   86.34   80.49   105.84  
    Benchmark condensate price ($/bbl) 100.24   98.85   97.10   105.62   98.43   104.30   106.30   93.25  
    Sulphur price ($/tonne)                                
    Realized sulphur price (4) 17.00   12.09   8.86   18.43   14.49   22.54   13.34   22.78  
    Benchmark sulphur price 246.36   180.54   128.47   103.19   94.84   118.29   107.09   114.92  
    Net income (loss) 2,666   (20,921 ) 7,496   (19,196 ) (6,284 ) 7,414   (16,254 ) 4,182  
    Net income (loss) $ per share, basic 0.01   (0.08 ) 0.04   (0.12 ) (0.04 ) 0.05   (0.11 ) 0.03  
    Net income (loss) $ per share, diluted 0.01   (0.08 ) 0.04   (0.12 ) (0.04 ) 0.03   (0.11 ) 0.03  
    Net operating income (5) 32,550   13,720   19,818   7,652   23,418   25,441   11,650   43,843  
    Cashflow provided by (used in) operating activities 22,612   (592 ) 2,260   (1,555 ) 7,049   31,983   7,577   27,533  
    Funds flow from operations (5) 21,707   2,824   8,234   (4,874 ) 12,044   14,269   (1,422 ) 35,432  
    Total assets 571,470   612,423   615,040   585,940   590,531   638,541   564,921   575,849  
    Adjusted working capital deficit (5) (30,540 ) (29,777 ) (42,658 ) (37,986 ) (31,671 ) (31,830 ) (21,454 ) (6,258 )
    Net debt (5) (185,438 ) (197,564 ) (206,779 ) (219,204 ) (209,964 ) (204,046 ) (205,536 ) (181,670 )
    Capital expenditures (6) 6,538   5,800   10,002   5,003   4,897   9,306   16,363   9,384  
    (1)  Total production excludes sulphur.
    (2)  Third-party volumes processed are raw natural gas volumes reported by activity month, which do not include accounting accruals.
    (3)  Includes physical commodity and financial risk management contracts inclusive of cash flow hedges, (together “Risk Management Contracts”). The realized natural gas price after Risk Management Contracts shown above is normalized to exclude the impact of the hedge monetization.
    (4)  Realized sulphur price is net of customary deductions such as transportation, market and storage fees.
    (5)  Refer to the “Net Operating Income”, “Capital Resources”, “Funds Flow from Operations” and “Working Capital and Capital Strategy” sections of the Company’s MD&A for reference to non-GAAP measures.
    (6)  Excludes reclamation and abandonment activities.
     

    OUTLOOK

    Pieridae’s priority remains strengthening our balance sheet while safely sustaining production, increasing the utilization of the Company’s gas processing facilities by attracting incremental third-party volumes, implementing cost reduction initiatives, optimizing infrastructure, and executing non-core asset dispositions to maintain profitability during all periods of the commodity cycle.

    The Company’s 2025 guidance remains unchanged as follows:

        2025 Guidance
    ($ 000s unless otherwise noted)   Low   High
    Total production (boe/d) (1)   23,000   25,000
    Net operating income (2)(4)(5)   75,000   95,000
    Operating netback ($/boe) (3)(4)(5)   9.00   11.00
    Capital expenditures   25,000   30,000
    (1)  2025 production guidance assumes persistence of previously announced shut-ins in Central AB through 2025
    (2)  Refer to the “Net Operating Income” section of the Company’s MD&A for reference to non-GAAP measures.
    (3)  Refer to “Operating Netback” section of the Company’s MD&A for reference to non-GAAP measures.
    (4)  Assumes unhedged average 2025 AECO price of $2.45/GJ and average 2025 WTI price of US$ 63.97/bbl.
    (5)  Accounts for impact of hedge contracts in place at May 7, 2025.
     

    Specific priorities for 2025 remain:

    • Sustain a safe and regulatory compliant business
    • Minimize facility outages to maximize sales and processing revenue
    • Further grow the third-party gathering and processing business at our operated facilities
    • Meaningfully reduce operating expenses to improve corporate netback
    • Deliver attractive ROI on value adding optimization projects included in the 2025 capital program
    • Reduce long term debt to improve financial flexibility

    During the second and third quarters of 2024, several low margin, dry gas properties in Northern AB, Northeast BC, and Central AB, all producing to non-operated facilities, were shut-in due to low AECO natural gas prices and high variable operating costs. Since these decisions were made, AECO pricing has improved. As a result, approximately 1,000 boe/d of production in Northern AB and 800 boe/d of production in Northeast BC was re-started in February and March 2025, respectively, but may be shut-in once again if sustained AECO pricing does not justify ongoing production. Currently, shut-in production in Central AB representing approximately 8,000 boe/d, or 24% of the Company’s production capability, is expected to remain shut-in throughout 2025, which is reflected in the 2025 production guidance of 23,000 to 25,000 boe/d.

    An ongoing strategic priority is to continue to grow third-party gathering and processing revenues at our operated facilities. Management believes there is strong upside potential for cash flow growth from the third-party gathering and processing business, particularly in the Caroline region where the Company has increased raw third-party volumes by 122% over the last four quarters as area producers continue to bring on new production.

    The Company has 110,000 GJ/d of its 2025 natural gas production hedged at a weighted average fixed price of $3.32/GJ, and 1,679 bbl/d of its 2025 condensate production hedged with a weighted average floor price of CAD$84.42/bbl and a weighted average ceiling price of CAD$92.32/bbl. The Company’s aggregate hedge position for 2025 totals 19,055 boe/d, or approximately 80% of the above production guidance range.

    Pieridae’s legacy fixed price sulphur contract, which was entered into in 2019, expires on December 31, 2025. Under this contract, the Company receives a net fixed price of approximately $6/tonne for the majority of its sulphur production capability of approximately 1,400 tonnes per day. Beginning January 1, 2026, the Company will receive market price for all sulphur production, less normal deductions for transportation, handling, and marketing, representing a significant potential revenue opportunity. As of May 7, 2025, the spot west coast sulphur price was approximately US$270/tonne, prior to royalties, transportation and marketing costs.

    The $25.0 to $30.0 million 2025 capital guidance includes approximately $10.0 million of high-impact well and facility optimization expenditures funded with the equity raised during Q4 2024. These high return, short payout capital projects are expected to increase sales revenue, improve facility efficiency, reduce operating cost and fuel gas consumption, and lower GHG compliance costs. Spending on this program commenced in Q4 2024 and will continue throughout 2025. The remainder of the 2025 capital program is focused on routine capital maintenance, field operating technology upgrades, and site closure / decommissioning expenditures in Alberta and BC. Notably, Pieridae has not scheduled major maintenance turnaround activity at any of the Company’s deep-cut, sour gas processing facilities during 2025 given the successful completion of gas plant turnarounds and other maintenance projects in 2023, 2024 and Q1 2025.  The next major maintenance turnaround is scheduled for 2026.

    Due to the current outlook for North American natural gas prices, Pieridae is not planning to resume drilling operations in 2025. The Company will only exploit its portfolio of high impact conventional Foothills drilling opportunities once natural gas prices sustainably recover and the Company has achieved its deleveraging target.

    HEDGE POSITION

    Pieridae hedges to mitigate commodity price, interest rate and foreign exchange volatility to protect the cash flow required to fund the Company’s operations, capital requirements and debt service obligations, while allowing the Company to participate in future commodity price upside. Pieridae continues to execute its risk management program governed by its hedge policy and in compliance with the thresholds required by senior secured lenders. As of March 31, 2025, the Company is hedged in accordance with the requirements of the senior loan agreement. The discounted unrealized gain on the Company’s hedge portfolio at May 7, 2025 was approximately $39.8 million using the forward strip on May 7, 2025.

    The tables below summarize Pieridae’s hedge portfolio for natural gas, condensate (“C5+”) and power as of May 7, 2025:

    2025-2026 Hedge Portfolio(1) Q125 Q225 Q325 Q425 2025 Q126 Q226 Q326 Q426 2026
    AECO Natural Gas Sales                    
    Total Hedged (GJ/d) 110,000 110,000 110,000 110,000 110,000 78,502 71,855 58,340 55,025 65,845
    Avg Hedge Price (C$/GJ) $3.32 $3.32 $3.32 $3.32 $3.32 $3.32 $3.34 $3.39 $3.40 $3.36
    WTI / C5+ Sales                    
    Total Hedged (bbl/d) 1,721 1,692 1,663 1,641 1,679 1,622 1,529 1,364 1,350 1,465
    Avg Collar Cap Price (C$/bbl) $92.73 $92.45 $92.03 $92.05 $92.32 $91.69 $90.94 $91.67 $91.68 $91.48
    Avg Collar Floor Price (C$/bbl) $84.14 $84.25 $84.61 $84.67 $84.42 $84.09 $83.83 $85.64 $85.70 $84.82
    Power Purchases                    
    Total Hedged (MW) 55 55 55 55 55 45 45 45 45 45
    Avg Hedge Price (C$/MWh) $79.22 $79.10 $79.07 $79.08 $79.12 $75.87 $75.88 $75.88 $75.88 $75.88
    2027-2028 Hedge Portfolio(1) Q127 Q227 Q327 Q427 2027 Q128 Q228 Q328 Q428 2028
    AECO Natural Gas Sales                    
    Total Hedged (GJ/d) 53,340 28,154 – – 20,172 – – – – –
    Avg Hedge Price (C$/GJ) $3.40 $3.40     $3.40         –
    WTI / C5+ Sales                    
    Total Hedged (bbl/d) 1,171 1,151 1,125 1,125 1,143 785 750 – – 382
    Avg Collar Cap Price (C$/bbl) $91.40 $88.80 $90.05 $90.05 $90.08 $90.40 $86.50 – – $88.50
    Avg Collar Floor Price (C$/bbl) $84.37 $84.08 $90.05 $90.05 $87.14 $90.40 $86.50 – – $88.49
    Power Purchases                    
    Total Hedged (MW) 25 25 25 25 25         –
    Avg Hedge Price (C$/MWh) $70.19 $70.19 $70.19 $70.19 $70.19         –
    (1) Includes forward physical sales contracts and financial derivative contracts as of May 7, 2025
     

    CONFERENCE CALL DETAILS

    A conference call and webcast to discuss the results will be held on Thursday, May 8, 2025, at 1:30 p.m. MDT / 3:30 p.m. EDT, following the formal business conducted at the Annual General and Special Meeting of Shareholders. To participate in the webcast or conference call, you are asked to register using one of the links provided below.

    To register to participate via webcast please follow this link:     

    https://edge.media-server.com/mmc/p/xk53vcfn

    Alternatively, to register to participate by telephone please follow this link:

    https://register-conf.media-server.com/register/BIf4a11631ac334142b7d1671fbf810fbb

    A replay of the webcast will be available two hours after the conclusion of the event and may be accessed using the webcast link above.

    ABOUT PIERIDAE

    Pieridae is a Canadian energy company headquartered in Calgary, Alberta. The Company is a significant upstream producer and midstream custom processor of natural gas, NGLs, condensate, and sulphur from western Canada. Pieridae’s vision is to provide responsible, affordable natural gas and derived products to meet society’s energy security needs. Pieridae’s common shares trade on the TSX under the symbol “PEA”.

    For further information, visit www.pieridaeenergy.com, or please contact:

    Darcy Reding, President & Chief Executive Officer Adam Gray, Chief Financial Officer
    Telephone: (403) 261-5900 Telephone: (403) 261-5900
       
    Investor Relations  
    investors@pieridaeenergy.com   
       

    Forward-Looking Statements
    Certain of the statements contained herein including, without limitation, management plans and assessments of future plans and operations, Pieridae’s outlook, strategy and vision, intentions with respect to future acquisitions, dispositions and other opportunities, including exploration and development activities, Pieridae’s ability to market its assets, plans and timing for development of undeveloped and probable resources, Pieridae’s goals with respect to the environment, relations with Indigenous people and promoting equity, diversity and inclusion, estimated abandonment and reclamation costs, plans regarding hedging, plans regarding the payment of dividends, wells to be drilled, the weighting of commodity expenses, expected production and performance of oil and natural gas properties, results and timing of projects, access to adequate pipeline capacity and third-party infrastructure, growth expectations, supply and demand for oil, natural gas liquids and natural gas, industry conditions, government regulations and regimes, capital expenditures and the nature of capital expenditures and the timing and method of financing thereof, may constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws (collectively “forward-looking statements”). Words such as “may”, “will”, “should”, “could”, “anticipate”, “believe”, “expect”, “intend”, “plan”, “continue”, “focus”, “endeavor”, “commit”, “shall”, “propose”, “might”, “project”, “predict”, “vision”, “opportunity”, “strategy”, “objective”, “potential”, “forecast”, “estimate”, “goal”, “target”, “growth”, “future”, and similar expressions may be used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management.

    Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, the risks associated with oil and gas exploration, development, exploitation, production, processing, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of resources estimates, environmental risks, competition from other producers, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals, ability to access sufficient capital from internal and external sources and the risk factors outlined under “Risk Factors” and elsewhere herein. The recovery and resources estimate of Pieridae’s reserves provided herein are estimates only and there is no guarantee that the estimated resources will be recovered. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

    Forward-looking statements are based on a number of factors and assumptions which have been used to develop such forward-looking statements, but which may prove to be incorrect. Although Pieridae believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because Pieridae can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Pieridae operates; the timely receipt of any required regulatory approvals; the ability of Pieridae to obtain and retain qualified staff, equipment and services in a timely and cost efficient manner; the ability of the operator of the projects which Pieridae has an interest in to operate the field in a safe, efficient and effective manner; the ability of Pieridae to obtain financing on acceptable terms; the ability to replace and expand oil and natural gas resources through acquisition, development and exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of Pieridae to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Pieridae operates; timing and amount of capital expenditures; future sources of funding; production levels; weather conditions; success of exploration and development activities; access to gathering, processing and pipeline systems; advancing technologies; and the ability of Pieridae to successfully market its oil and natural gas products.

    Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Pieridae’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca), and at Pieridae’s website (www.pieridaeenergy.com).

    Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and Pieridae assumes no obligation to update or review them to reflect new events or circumstances except as required by applicable securities laws.

    Forward-looking statements contained herein concerning the oil and gas industry and Pieridae’s general expectations concerning this industry are based on estimates prepared by management using data from publicly available industry sources as well as from reserve reports, market research and industry analysis and on assumptions based on data and knowledge of this industry which Pieridae believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While Pieridae is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors.

    Additional Reader Advisories
    Barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

    Abbreviations

    Natural Gas Liquids
    Mcf thousand cubic feet bbl/d barrels per day
    Mcf/d thousand cubic feet per day boe/d barrels of oil equivalent per day
    MMcf/d million cubic feet per day WTI West Texas Intermediate
    AECO Alberta benchmark price for natural gas Mbbl Thousand barrels
    GJ Gigajoule MMbbl Million barrels
    Power   MMboe Million barrels of oil equivalent
    MW Megawatt C2 Ethane
    MWh Megawatt hour C3 Propane
        C4 Butane
        C5/C5+ Condensate / Pentane

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

    The MIL Network –

  • MIL-OSI: Petrus Resources Announces First Quarter 2025 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, May 07, 2025 (GLOBE NEWSWIRE) — Petrus Resources Ltd. (“Petrus” or the “Company”) (TSX: PRQ) is pleased to report financial and operating results as at and for the three months ended March 31, 2025.

    Q1 2025 HIGHLIGHTS:

    • Capital Activity – Invested $17.3 million in capital during the quarter. Approximately 60% was directed toward the drilling, completing and tie-in of 7 gross (4.1 net) wells. Most of the remaining capital expenditures went to the construction of a 12-kilometer expansion of the North Ferrier pipeline, an infrastructure investment designed to enhance access to high quality undeveloped lands and enable cost-effective transportation of natural gas to Petrus’ operated Ferrier gas plant. Of the wells drilled in the quarter, 5 will flow through the North Ferrier pipeline.
    • Production – Average production was 8,929 boe/d(1) in the first quarter of 2025, relatively flat compared to 9,066 boe/d in the fourth quarter of 2024.
    • Commodity Prices – Total realized price was $29.35/boe, up 11% from $26.45/boe in the fourth quarter of 2024, primarily due to improved natural gas pricing.
    • Funds Flow(2)– Generated funds flow of $12.5 million ($0.10 per share(3)) in the first quarter of 2025, solidifying the gains realized in the fourth quarter of 2024.
    • Dividends – Paid regular monthly dividend of $0.01 per share, for a total of $3.8 million, during the first quarter of 2025. Shareholders chose to reinvest $2.6 million under the Company’s dividend reinvestment plan resulting in the issue of 2,005,522 common shares.
    • Net Debt(2)– Net debt increased to $66.0 million as at March 31, 2025, and net debt to annualized funds flow ratio(3) increased to 1.3x. This increase was due to high capital spending in Q1, which was required to take advantage of time-sensitive strategic opportunities. Net debt is expected to decline in the second half of the year and is forecast to return to our 2025 guidance target of $60 million by year-end.

    OUTLOOK(4)

    The 2025 capital program began early in the year and remains on schedule. Drilling operations are continuing through spring breakup. Completion activities on the remaining uncompleted first quarter wells are under way and production is expected to come online later in May. The 12 kilometer North Ferrier pipeline extension is expected to be operational in May with both Petrus and third-party volumes flowing to the Ferrier gas plant.

    For the remainder of 2025, Petrus has hedged approximately 56% of its forecasted production at an average price of $2.67/GJ for natural gas and CAD$94.75/bbl for oil. This strategic approach positions the Company to achieve its guidance targets and maintain financial stability. As always, Petrus is prepared to adapt its capital program in response to market dynamics, remaining focused on delivering sustainable returns to shareholders.

    FIRST QUARTER 2025 CONFERENCE CALL

    Date and Time: May 8, 2025, 11:00 a.m. (Mountain Time)
    Please refer to the events page on Petrus’ website for conference call details and links: www.petrusresources.com/events

    ANNUAL GENERAL MEETING
    The Company’s Annual General Meeting will be held at Suite #1110, 240 4th Ave SW Calgary, Alberta, on Wednesday May 21, 2025 at 1:30 p.m. (Mountain Time).
    Please refer to the events page on Petrus’ website for AGM details and links: www.petrusresources.com/events

    An updated corporate presentation can be found on the Company’s website at www.petrusresources.com

    For further information, please contact:
    Ken Gray, P.Eng.
    President and Chief Executive Officer
    T: (403) 930-0889
    E: kgray@petrusresources.com

    (1)Disclosure of production on a per boe basis consists of the constituent product types and their respective quantities. Refer to “BOE Presentation” and “Production and Product Type Information” for further details.
    (2)Non-GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures”.
    (3)Non-GAAP ratio. Refer to “Non-GAAP and Other Financial Measures”.
    (4)Refer to “Advisories – Forward-Looking Statements”.

    SELECTED FINANCIAL INFORMATION

    OPERATIONS Three months ended

    Mar. 31, 2025

    		 Three months ended

    Mar. 31, 2024

    		 Three months ended

    Dec. 31, 2024

    		 Three months ended

    Sept. 30, 2024

    		 Three months ended

    Jun. 30, 2024
    Average Production          
    Natural gas (mcf/d) 35,689   40,174   36,178   37,368   38,908  
    Oil and condensate(1) (bbl/d) 1,202   1,529   1,226   1,522   1,322  
    NGLs (bbl/d) 1,777   1,557   1,810   1,464   1,664  
    Total (boe/d) 8,929   9,783   9,066   9,215   9,471  
    Total (boe)(1) 803,498   890,267   834,111   847,760   861,838  
    Liquids weighting 33 % 32 % 33 % 32 % 32 %
    Realized Prices          
    Natural gas ($/mcf) 2.25   2.54   1.61   0.80   1.41  
    Oil and condensate(1)($/bbl) 92.73   90.38   93.60   90.80   103.77  
    NGLs ($/bbl) 39.54   43.09   36.90   36.81   37.25  
    Total realized price ($/boe) 29.35   31.42   26.45   24.07   26.81  
    Royalty income 0.06   0.07   0.03   0.05   0.05  
    Royalty expense (3.36 ) (3.89 ) (3.85 ) (3.06 ) (3.83 )
    Net oil and natural gas revenue ($/boe) 26.05   27.60   22.63   21.06   23.03  
    Operating expense (6.76 ) (6.76 ) (5.89 ) (6.10 ) (4.96 )
    Transportation expense (1.65 ) (1.81 ) (1.44 ) (1.46 ) (1.46 )
    Operating netback(2)($/boe) 17.64   19.03   15.30   13.50   16.61  
    Realized gain (loss) on financial derivatives 1.14   2.90   3.04   2.49   (0.36 )
    Other income (cash) 0.02   0.05   1.19   0.09   0.05  
    General & administrative expense (1.41 ) (1.32 ) (2.10 ) (1.43 ) (1.34 )
    Cash finance expense (1.68 ) (1.78 ) (1.83 ) (1.95 ) (1.91 )
    Decommissioning expenditures (0.19 ) (0.61 ) (0.61 ) (0.12 ) (0.72 )
    Funds flow & corporate netback ($/boe)(2) 15.52   18.27   14.99   12.58   12.33  
               
    FINANCIAL (000s except $ per share) Three months ended

    Mar. 31, 2025

    		 Three months ended

    Mar. 31, 2024

    		 Three months ended

    Dec. 31, 2024

    		 Three months ended

    Sept. 30, 2024

    		 Three months ended

    Jun. 30, 2024
    Oil and natural gas sales 23,630   28,039   22,085   20,446   23,150  
    Net income (loss) (3,088 ) (5,333 ) (4,004 ) 5,302   2,789  
    Net income (loss) per share          
    Basic (0.02 ) (0.04 ) (0.03 ) 0.04   0.02  
    Fully diluted (0.02 ) (0.04 ) (0.03 ) 0.04   0.02  
    Funds flow(2) 12,467   16,272   12,493   10,665   10,628  
    Funds flow per share(2)          
    Basic 0.10   0.13   0.10   0.09   0.09  
    Fully diluted 0.10   0.13   0.10   0.08   0.08  
    Capital expenditures 17,279   12,343   7,705   4,859   6,907  
    Weighted average shares outstanding          
    Basic 126,043   124,299   124,497   124,372   124,290  
    Fully diluted 126,043   124,299   124,497   126,686   126,559  
    As at period end          
    Common shares outstanding          
    Basic 127,469   124,259   125,113   124,372   124,372  
    Fully diluted 138,501   134,484   134,919   134,952   134,919  
    Total assets 427,955   427,574   420,124   421,196   419,584  
    Non-current liabilities 68,176   59,995   65,475   62,869   59,511  
    Net debt(2) 66,009   63,114   60,080   60,423   61,848  

    (1)Disclosure of production on a per boe basis consists of the constituent product types and their respective quantities. Refer to “BOE Presentation” and “Production and Product Type Information” for further details.
    (2)Non-GAAP ratio or non-GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures”.

    NON-GAAP AND OTHER FINANCIAL MEASURES

    This press release makes reference to the terms “operating netback” (on an absolute and $/boe basis), “corporate netback” (on an absolute and $/boe basis), “funds flow” (on an absolute, per share (basic and fully diluted) and $/boe basis), “net debt” and “net debt to annualized funds flow ratio”. These non-GAAP and other financial measures are not recognized measures under GAAP (IFRS) and do not have a standardized meaning prescribed by GAAP (IFRS). Accordingly, the Company’s use of these terms may not be comparable to similarly defined measures presented by other companies. These non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS as indicators of our performance. Management uses these non-GAAP and other financial measures for the reasons set forth below.

    Operating Netback
    Operating netback is a common non-GAAP financial measure used in the oil and natural gas industry which is a useful supplemental measure to evaluate the specific operating performance by product type at the oil and natural gas lease level. The most directly comparable GAAP measure to operating netback is oil and natural gas sales. Operating netback is calculated as oil and natural gas sales less royalty expenses, operating expenses and transportation expenses, plus or minus the gain (loss) on risk management activities. See below for a reconciliation of operating netback to oil and natural gas sales.

    Operating netback ($/boe) is a non-GAAP ratio used in the oil and natural gas industry which is a useful supplemental measure to evaluate the specific operating performance by product type at the oil and natural gas lease level. It is calculated as operating netbacks divided by weighted average daily production on a per boe basis. See below.

    Corporate Netback and Funds Flow
    Corporate netback or funds flow is a common non-GAAP financial measure used in the oil and natural gas industry which evaluates the Company’s profitability at the corporate level. Corporate netback and funds flow are used interchangeably. Petrus analyzes these measures on an absolute value and on a per unit (boe) and per share (basic and fully diluted) basis as non-GAAP ratios. Management believes that funds flow and corporate netback provide information to assist a reader in understanding the Company’s profitability relative to current commodity prices. They are calculated as the operating netback less general and administrative expense, less cash finance expense, less decommissioning expenditures, plus or minus other income (cash) and plus or minus the net realized gain (loss) on financial derivatives . See below for a reconciliation of funds flow and corporate netback to oil and natural gas sales.

    Corporate netback ($/boe) or funds flow ($/boe) is a non-GAAP ratio used in the oil and natural gas industry which evaluates the Company’s profitability at the corporate level. Management believes that funds flow ($/boe) or corporate netback ($/boe) provide information to assist a reader in understanding the Company’s profitability relative to current commodity prices. It is calculated as corporate netbacks or funds flow divided by weighted average daily production on a per boe basis. See below.

    Funds flow per share (basic and fully diluted) is comprised of funds flow divided by basic or fully diluted weighted average common shares outstanding.

      Three months ended

     March 31, 2025

    		 Three months ended

    Dec. 31, 2024

    		 Three months ended

    Sept. 30, 2024

    		 Three months ended

    Jun. 30, 2024

    		 Three months ended

    March 31, 2024
      $000s $/boe $000s $/boe $000s $/boe $000s $/boe $000s $/boe
    Oil and natural gas sales 23,630   29.41   22,085   26.48   20,446   24.12   23,150   26.86   28,039   31.50  
    Royalty expense (2,703 ) (3.36 ) (3,212 ) (3.85 ) (2,593 ) (3.06 ) (3,305 ) (3.83 ) (3,461 ) (3.89 )
    Net oil and natural gas revenue 20,927   26.05   18,873   22.63   17,853   21.06   19,845   23.03   24,578   27.61  
    Transportation expense (1,324 ) (1.65 ) (1,203 ) (1.44 ) (1,239 ) (1.46 ) (1,259 ) (1.46 ) (1,615 ) (1.81 )
    Operating expense (5,429 ) (6.76 ) (4,915 ) (5.89 ) (5,172 ) (6.10 ) (4,271 ) (4.96 ) (6,018 ) (6.76 )
    Operating netback 14,174   17.64   12,755   15.30   11,442   13.50   14,315   16.61   16,945   19.03  
    Realized gain (loss) on financial derivatives 912   1.14   2,539   3.04   2,115   2.49   (307 ) (0.36 ) 2,583   2.90  
    Other income(1) 17   0.02   991   1.19   77   0.09   40   0.05   48   0.05  
    General & administrative expense (1,133 ) (1.41 ) (1,752 ) (2.10 ) (1,209 ) (1.43 ) (1,152 ) (1.34 ) (1,178 ) (1.32 )
    Cash finance expense (1,351 ) (1.68 ) (1,530 ) (1.83 ) (1,657 ) (1.95 ) (1,650 ) (1.91 ) (1,581 ) (1.78 )
    Decommissioning expenditures (152 ) (0.19 ) (510 ) (0.61 ) (103 ) (0.12 ) (618 ) (0.72 ) (545 ) (0.61 )
    Funds flow and corporate netback 12,467   15.52   12,493   14.99   10,665   12.58   10,628   12.33   16,272   18.27  

    (1)Excludes non-cash government grant related to decommissioning expenditures.

    Net Debt

    Net debt is a non-GAAP financial measure and is calculated as the sum of long term debt and working capital (current assets and current liabilities), excluding the current financial derivative contracts and current portion of the lease obligation and decommissioning obligation. Petrus uses net debt as a key indicator of its leverage and strength of its balance sheet. Net debt is reconciled, in the table below, to long-term debt which is the most directly comparable GAAP measure.

    ($000s) As at March 31, 2025 As at Dec. 31, 2024 As at Sept. 30, 2024 As at Jun. 30, 2024 As at Mar. 31, 2024
    Long-term debt 25,000   25,000   25,000   25,000   25,000  
    Current assets (15,763 ) (17,583 ) (20,258 ) (16,333 ) (21,081 )
    Current liabilities 59,788   51,268   48,458   52,379   61,099  
    Current financial derivatives (1,779 ) 2,632   7,690   1,276   (716 )
    Current portion of lease obligation (164 ) (164 ) (230 ) (237 ) (263 )
    Current portion of decommissioning liabilities (1,073 ) (1,073 ) (237 ) (237 ) (925 )
    Net debt 66,009   60,080   60,423   61,848   63,114  


    Net Debt to annualized funds flow ratio

    Net debt to annualized funds flow ratio is a non-GAAP ratio because each of its components is a non-GAAP financial measure. This non-GAAP ratio is used by management as a key indicator of our leverage and the strength of our balance sheet. It is calculated by dividing our net debt at the end of the quarter by the funds flow for the quarter after it is annualized by multiplying it by four. Net debt to annualized fund flow ratio is not a standardized measure and, therefore, may not be comparable with the calculation of similar measures by other entities.

    ADVISORIES

    Basis of Presentation
    Financial data presented above has largely been derived from the Company’s financial statements, prepared in accordance with GAAP which require publicly accountable enterprises to prepare their financial statements using IFRS. Accounting policies adopted by the Company are set out in the notes to the audited consolidated financial statements as at and for the year ended December 31, 2024. The reporting and the measurement currency is the Canadian dollar. All financial information is expressed in Canadian dollars, unless otherwise stated.

    Forward-Looking Statements
    Certain information regarding Petrus set forth in this press release contains forward-looking statements within the meaning of applicable securities law, that involve substantial known and unknown risks and uncertainties. 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. Such statements represent Petrus’ internal projections, estimates, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions and actual events or results may differ materially. Although Petrus believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Petrus’ actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Petrus.

    In particular, forward-looking statements included in this press release include, but are not limited to, statements with respect to: that the investment in the 12-kilometer expansion of the North Ferrier pipeline will enhance access to high quality undeveloped lands and enable cost-effective transportation of natural gas to Petrus’ operated Ferrier gas plant; that 5 of the wells drilled in the quarter will flow through the North Ferrier pipeline; that the completion activities on the uncompleted first quarter wells will begin in May and the anticipated timing of production coming on line; that the 12 kilometer North Ferrier pipeline extension will be operational in May and the anticipated timing and benefits therefrom; that our net debt is expected to decline in the second half of the year and is forecasted to return to our 2025 guidance target of $60 million by year-end; that with our current hedges for 2025, we are positioned to achieve guidance targets and maintain financial stability; that we are able to adjust our capital program in response to market dynamics; and that we are able to remain focused on delivering sustainable returns to shareholders.

    These forward-looking statements are subject to numerous risks and uncertainties, most of which are beyond the Company’s control, including: the risk that (i) the tariffs that are currently in effect on goods exported from or imported into Canada continue in effect for an extended period of time, the tariffs that have been threatened are implemented, that tariffs that are currently suspended are reactivated, the rate or scope of tariffs are increased, or new tariffs are imposed, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed or threatened to be imposed by the U.S. on other countries and retaliatory tariffs imposed or threatened to be imposed by other countries on the U.S., will trigger a broader global trade war which could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company, including by decreasing demand for (and the price of) oil and natural gas, disrupting supply chains, increasing costs, causing volatility in global financial markets, and limiting access to financing; the impact of general economic conditions; volatility in market prices for crude oil, NGL and natural gas; industry conditions; currency fluctuation; changes in interest rates and inflation rates; imprecision of reserve estimates; liabilities inherent in crude oil and natural gas operations; environmental risks; incorrect assessments of the value of acquisitions and exploration and development programs; competition; the lack of availability of qualified personnel or management; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; hazards such as fire, explosion, blowouts, cratering, and spills, each of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury and/or increase our costs, decrease our production, or otherwise impede our ability to operate our business; extreme weather events, such as wild fires, floods, drought and extreme cold or warm temperatures, each of which could result in substantial damage to our assets and/or increase our costs, decrease our production, or otherwise impede our ability to operate our business; stock market volatility; ability to access sufficient capital from internal and external sources; that the amount of dividends that we pay may be reduced or suspended entirely; that we reduce or suspend the repurchase of shares under our NCIB; and the other risks and uncertainties described in our most recently filed annual information form. With respect to forward-looking statements contained in this press release, Petrus has made assumptions regarding: the duration and impact of tariffs that are currently in effect on goods exported from or imported into Canada, and that other than the tariffs that are currently in effect, neither the U.S. nor Canada (i) increases the rate or scope of such tariffs, reenacts tariffs that are currently suspended, or imposes new tariffs, on the import of goods from one country to the other, including on oil and natural gas, and/or (ii) imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas; the amount of dividends that we will pay; the number of shares that we will repurchase under our NCIB; future commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment and services; effects of regulation by governmental agencies; the effects of inflation on our costs and profitability; future interest rates; and future operating costs. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide investors with a more complete perspective on Petrus’ future operations and such information may not be appropriate for other purposes. Petrus’ actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. Readers are cautioned that the foregoing lists of factors are not exhaustive.

    This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about Petrus’ prospective results of operations including, without limitation, that our net debt is expected to decline in the second half of the year and is forecasted to return to our 2025 guidance target of $60 million by year-end, and the percentage of our forecast production for 2025 that is hedged, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. Petrus’ actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits Petrus will derive therefrom. Petrus has included the FOFI in order to provide readers with a more complete perspective on Petrus’ future operations and such information may not be appropriate for other purposes.

    These forward-looking statements and FOFI are made as of the date of this press release and the Company disclaims any intent or obligation to update any forward-looking statements and FOFI, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

    BOE Presentation
    The oil and natural gas industry commonly expresses production volumes and reserves on a barrel of oil equivalent (“boe”) basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet to one barrel of oil. The intention is to sum oil and natural gas measurement units into one basis for improved measurement of results and comparisons with other industry participants. Petrus uses the 6:1 boe measure which is the approximate energy equivalence of the two commodities at the burner tip. Boe’s do not represent an economic value equivalence at the wellhead and therefore may be a misleading measure if used in isolation.

    Production and Product Type Information

    References to crude oil (or oil), natural gas liquids (“NGLs”), natural gas and average daily production in this document refer to the light and medium crude oil, conventional natural gas, and NGLs product types, as applicable, as defined in National Instrument 51-101 (“NI 51-101”), except as noted below.

    NI 51-101 includes condensate within the NGLs product type. The Company has disclosed condensate as combined with crude oil and separately from other NGLs since the price of condensate as compared to other NGLs is currently significantly higher and the Company believes that this crude oil and condensate presentation provides a more accurate description of its operations and results therefrom. Crude oil therefore refers to light oil, medium oil, and condensate. NGLs refers to ethane, propane, butane and pentane combined. Natural gas refers to conventional natural gas.

    Dividend Advisory

    The Company’s future dividends, if any, and the level thereof is uncertain. Any decision to pay dividends on the common shares (including the actual amount, the declaration date, the record date and the payment date in connection therewith) will be subject to the discretion of the Board of Directors and may depend on a variety of factors, including, without limitation the Company’s business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and satisfaction of the solvency tests imposed on the Company under applicable corporate law. There can be no assurance that the Company will pay dividends in the future.

    Abbreviations

    $000’s thousand dollars
    $/bbl dollars per barrel
    $/boe dollars per barrel of oil equivalent
    $/GJ dollars per gigajoule
    $/mcf dollars per thousand cubic feet
    bbl barrel
    mbbl thousand barrels
    bbl/d barrels per day
    boe barrel of oil equivalent
    mboe thousand barrel of oil equivalent
    mmboe million barrel of oil equivalent
    boe/d barrel of oil equivalent per day
    GJ gigajoule
    GJ/d gigajoules per day
    mcf thousand cubic feet
    mcf/d thousand cubic feet per day
    mmcf/d million cubic feet per day
    bcf billion cubic feet
    NGLs natural gas liquids
    WTI West Texas Intermediate

    The MIL Network –

  • MIL-OSI: Solar Alliance Announces Late Filing of Annual Financial Disclosure

    Source: GlobeNewswire (MIL-OSI)

    TORONTO and KNOXVILLE, Tenn., May 07, 2025 (GLOBE NEWSWIRE) — Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR), a leading solar energy solutions provider focused on the commercial and utility solar sectors, announces that the filing of its audited annual financial statements, management’s discussion and analysis, and related CEO and CFO certifications for the year ended December 31, 2024 (the “Required Filings”) as required under National Instrument 51-102 – Continuous Disclosure Obligations has been delayed beyond the filing deadline of April 30, 2025. As a result, Solar Alliance expects to be noted in default in due course and anticipates that trading of its common shares will be halted on the TSX Venture Exchange and a cease trade order will be issued by the applicable Canadian Securities Administrators.

    The Company is working expeditiously with its auditor, Kreston GTA LLP, to complete the audit as soon as possible. Solar Alliance plans to remedy the default and file the Required Filings imminently and expects such filing to occur in any event, no later than May 15, 2025.

    The Company confirms that there is no other material information concerning the affairs of the Company that has not been generally disclosed as of the date of this press release.  

    About Solar Alliance Energy Inc. (www.solaralliance.com)

    Solar Alliance is an energy solutions provider focused on the commercial, utility and community solar sectors. Our experienced team of solar professionals reduces or eliminates customers’ vulnerability to rising energy costs, offers an environmentally friendly source of electricity generation, and provides affordable, turnkey clean energy solutions. Solar Alliance’s strategy is to ultimately build, own and operate our own solar assets while also generating stable revenue through the sale and installation of solar projects to commercial and utility community customers.

    Forward-Looking Statements

    Certain statements in this news release are “forward-looking statements”, which reflect management’s expectations regarding the timing of completion of the Required Filings and the Company’s future business operations. All statements other than statements of historical fact contained in this news release are forward-looking statements. Such forward-looking statements involve risks and uncertainties, as they reflect management’s current beliefs and are based on information currently available to management. Actual results may differ materially from those anticipated in the statements made. Such risks include, without limitation: the Company’s inability to complete its Required Filings; the imposition of trading halts, cease trade orders and other regulatory penalties; and general risks affecting the industry and broader economic conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this news release and the Company assumes no obligation to update or revise them to reflect new events or circumstances except as expressly required by applicable securities law. Further information regarding the uncertainties and risks can be found in the disclosure documents filed by the Company with the securities regulatory authorities, available at www.sedarplus.ca.

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

    The MIL Network –

  • MIL-OSI Russia: IMF Executive Board Concludes 2025 Article IV Consultation with Guyana

    Source: IMF – News in Russian

    May 7, 2025

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV Consultation with Guyana.[1]

    Guyana’s economic transformation is advancing strongly and broadening in scale. Rapidly expanding oil production, strong non-oil output, and large-scale public infrastructure investment supported the highest real GDP growth rate in the world, averaging 47 percent per year since 2022. Real oil GDP increased by nearly 58 percent in 2024, while real non-oil GDP expanded over 13 percent, reflecting a solid broad-based performance across sectors. Inflation reached 2.9 percent by end-2024, from 2 percent at end-2023, driven largely by higher food prices (affected by international food prices and earlier floods). The overall fiscal deficit widened from 5.1 percent of GDP (11.7 percent of non-oil GDP) in 2022 to 7.3 percent of GDP (21 percent of non-oil GDP) in 2024 reflecting a large increase in capital expenditure. Driven by higher oil exports, Guyana’s current account surplus more than doubled in 2024, reaching about 24½ percent of GDP. By end-2024, gross international reserves surpassed US$1 billion, while the Natural Resource Fund (NRF) accumulated over US$1.1 billion in 2024, reaching US$3.1 billion (over 12½ percent of GDP). 

    The economic outlook remains highly favorable. The economy is expected to grow on average 14 percent per year over the next five years, driven by robust oil production and strong non-oil GDP growth. Positive spillovers from the oil sector and improvements in infrastructure, productivity, and resilience are expected to boost the real non-oil GDP growth to an average of 6¾ percent over the medium term, about 3 percentage points higher than the pre-oil decade average. While inflation is projected to edge up to around 4 percent in 2025, the overall fiscal deficit and the current account surplus are expected to narrow in 2025. Over the medium term, the continued expansion of oil production will further strengthen the external position, with substantial savings accumulation in the NRF.

    Risks to the outlook are broadly balanced. On the upside, additional oil discoveries and productivity-enhancing investments, including to strengthen energy resilience would further bolster Guyana’s long-term economic prospects, while expanding construction activity would support higher short-term non-oil GDP growth. Downside risks stem from overheating pressures which, if not contained, would lead to higher inflation and a real exchange rate appreciation beyond the level consistent with a balanced expansion of the economy. Commodity price volatility in a highly uncertain global environment, including from trade policy and climate shocks could also adversely affect inflation and alter the macroeconomic outlook.

    Executive Board Assessment[2]

    Executive Directors agreed with the thrust of the staff appraisal. They welcomed Guyana’s remarkable economic progress to attain high-income status, supported by rapidly expanding oil production and robust non-oil growth. They noted that Guyana’s economic outlook remains highly favorable with balanced risks, strong fundamentals, and a strong external position supported by substantial accumulation of oil revenue in the Natural Resource Fund. They commended the authorities’ commitment to balancing development needs with prudent policies to entrench macroeconomic and fiscal stability.

    Directors concurred that the current fiscal stance is appropriate given development needs. They welcomed the authorities’ commitment to eliminate the overall fiscal deficit over the medium term and further narrow the non-oil primary deficit to levels consistent with ensuring intergenerational equity and preserving fiscal and macroeconomic sustainability. They highlighted the need for a comprehensive medium-term fiscal framework with an explicit anchor and an operational target, along with regular assessments of expenditure related to reaching development objectives. They positively noted the authorities’ continued efforts to strengthen public financial management as well as the low risk of debt distress given low public debt.

    Directors considered the monetary policy stance as appropriately tight to help contain inflation, while noting the need for further tightening if inflation risks escalate. They saw merit in enhancing the monetary policy toolkit and deepening financial markets to help strengthen the effectiveness of monetary policy transmission. They emphasized the need for maintaining consistent policies to support the stabilized exchange rate arrangement, which remains appropriate, and saw merit in assessing whether transitioning to a more flexible exchange rate regime over the medium term could be beneficial as Guyana’s economy continues to transform.

    Directors welcomed the authorities’ commitment to maintain financial stability and continue enhancing financial supervision, including monitoring sectoral lending exposures and related-party lending. They supported the authorities’ efforts to further strengthen risk monitoring, strengthen the macroprudential framework, broaden regulatory coverage, and enhance statistics on balance sheets and real estate prices.

    Directors welcomed the authorities’ efforts to foster inclusive growth and economic diversification, improve the business environment, strengthen climate and energy resilience, and enhance labor market skills. They commended progress in strengthening governance, anti-corruption, official statistics, AML/CFT frameworks, fiscal transparency, and transparency in extractive industries, and supported the continued efforts to strengthen them in line with international standards.

    It is expected that the next Article IV consultation with Guyana will be held on the standard 12-month cycle.

    Table 1. Guyana: Selected Social and Economic Indicators

     

    I.  Social Indicators

     

    Population, 2023 (thousands)

       814

    Life expectancy at birth (years), 2022

    66

    		  

    Under-five mortality rate (per 1,000 live births), 2023

    14

    Human Development Index rank, 2022

    95

    II.  Economic Indicators

     

    Prel.

    Proj.

    2023

    2024

    2025

    (Year-over-year percent change)

    Production and Prices

    Real GDP

    33.8

    43.6

    10.3

    Real non-oil GDP

    12.3

    13.1

    12.9

    Real oil GDP

    46.8

    57.7

    9.5

    Consumer prices (end of period)

    2.0

    2.9

    4.2

    (Percent of non-oil GDP)

    Central Government

    Revenue

    39.3

    43.7

    49.9

    Grants

    0.2

    0.2

    0.4

    Expenditure

    52.7

    64.9

    63.4

    Current

    25.1

    28.9

    30.5

    Capital

    27.7

    36.0

    32.9

    Overall balance (after grants)

    -13.3

    -21.0

    -13.2

    Non-oil primary balance (after grants)

    -26.2

    		  

    -38.4

    		  

    -37.5

    (Percent of GDP)

    Revenue

    17.0

    15.3

    18.6

    Grants

    0.1

    0.1

    0.1

    Expenditure

    22.8

    22.6

    23.7

    Current

    10.8

    10.1

    11.4

    Capital

    12.0

    12.6

    12.3

    Overall balance (after grants)

    -5.7

    -7.3

    -4.9

    Total public sector gross debt

    26.7

    24.3

    28.0

    External

    10.5

    9.0

    13.6

    Domestic

    16.2

    15.2

    14.4

     

    Table 1. Guyana: Selected Social and Economic Indicators (Concluded)

    Prel.

    Proj.

    2023

    2024

    2025

    (Year-over-year percent change)

    Money and Credit

    Broad money

    27.6

    25.3

    17.7

    Domestic credit of the banking system

    24.1

    39.7

    4.9

    External Sector

    Current account balance (US$ million)

    1,679.9

    6,067.9

    2,306.2

       (Percent of GDP)

    9.9

    24.6

    8.9

    Gross official reserves (US$ million)

    896.4

    1,010.1

    1,571.4

    (Percent of GDP)

    5.3

    4.1

    6.1

    Crude oil production (million barrels)

    142.3

    225.4

    246.0

    Memorandum Items:

    Nominal GDP (GY$ billion)

    3,527.5

    5,141.3

    5,383.9

    Nominal non-oil GDP (GY$ billion)

    1,524.6

    1,793.7

    2,010.7

    GDP per capita (US$)

    21,307.2

    30,962.3

    32,326.3

    Guyana dollar/U.S. dollar (period average)

    208.5

    208.5 

    … 

    Sources: Guyana’s authorities; UNDP Human Development Report; World Bank; and IMF staff calculations and projections.

    [1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

    [2] At the conclusion of the discussion, the Managing Director, as Chair of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Rosa Hernandez

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/05/07/pr-25132-guyana-imf-executive-board-concludes-2025-article-iv-consultation

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI: Ring Energy Announces First Quarter 2025 Results and Provides Updated 2025 Outlook

    Source: GlobeNewswire (MIL-OSI)

    THE WOODLANDS, Texas, May 07, 2025 (GLOBE NEWSWIRE) — Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today reported operational and financial results for first quarter 2025 and provided updated guidance for the second half of the year.

    First Quarter 2025 Highlights

    • Sold 12,074 barrels of oil per day (“Bo/d”) (> high end of guidance) and 18,392 barrels of oil equivalent per day (“Boe/d”) (> mid point of guidance);
    • Reported net income of $9.1 million, or $0.05 per diluted share, and Adjusted Net Income1 of $10.7 million, or $0.05 per diluted share;
    • Recorded Adjusted EBITDA1 of $46.4 million and Lease Operating Expense (“LOE”) of $11.89 per Boe (< mid point of guidance);
    • Invested $32.5 million in capital expenditures (within guidance, excluding acquisitions) that was 14% lower than 4Q 2024
    • Generated Adjusted Cash Flow from Operations1 of $38.2 million and Adjusted Free Cash Flow (“AFCF”)1 of $5.8 million;
    • Remained cash flow positive for the 22nd consecutive quarter and had liquidity of $141.1 million at the end of the period;
    • Completed highly-accretive acquisition of Central Basin Platform (“CBP”) assets from Lime Rock Resources IV, LP (“Lime Rock’) on March 31, 2025 with operations to date exceeding expectations; and
    • Provided updated guidance for the remainder of 2025, which reflects more than a 47% decrease in capital spending from original guidance for time period 2Q to 4Q 2025.

    Management Commentary

    Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “We’re excited to kick off 2025 with a strong first quarter, showcasing the flexibility, resilience, and strength of our proven, value-focused strategy amid fluctuating oil prices. Our performance met or surpassed all guidance targets, driven by exceptional oil sales volumes. As shared earlier, this success stemmed from the outperformance of our newly drilled wells and the tireless dedication of our operations team, who kept our PDP assets running at peak efficiency. On the final day of the quarter, we closed the highly accretive acquisition of Lime Rock’s CBP assets, which are outperforming the forecasts originally used to value them, adding more value to our portfolio. To set the stage for this synergistic transaction, we strategically adjusted the timing of our drilling program and capital spending initiatives, optimizing our financial position and reinforcing our balance sheet. With this strong foundation, we’re poised to continue delivering value to our stockholders despite the uncertainties currently facing our industry.”

    Mr. McKinney concluded, “We have been looking forward to sharing more about our proactive approach to navigating the recent dip in oil prices, showcasing the strength of our value-focused strategy. As previously announced, we’ve strategically reduced our second quarter capital spending by over 50%, while maintaining our sales volume guidance. Looking ahead, our updated full-year guidance reflects a 36% reduction in capital spending with only a 5% reduction to sales volumes, made possible by the exceptional performance of both our existing and newly acquired assets so far this year. This represents a 2% increase of year-over-year total sales. Should oil prices rise later in the year, we’re positioned to accelerate our debt reduction efforts, channeling the benefits of higher prices into strengthening our balance sheet. This disciplined approach highlights our proven strategy. We’re committed to delivering value for our stockholders and are deeply grateful for your trust and investment in Ring Energy as we build a brighter, more resilient future together.”

    Summary Results and Additional Key Items

      Q1 2025 Q4 2024 Q1 2025
    to Q    4 2024
    % Change    		 Q1 2024 Q1 2025
    to Q    1 2024
    % Change
    Average Daily Sales Volumes (Boe/d) 18,392 19,658 (6)% 19,034 (3)%
    Crude Oil (Bo/d) 12,074 12,916 (7)% 13,394 (10)%
    Net Sales (MBoe) 1,655.3 1,808.5 (8)% 1,732.1 (4)%
    Realized Price – All Products ($/Boe) $47.78 $46.14 4% $54.56 (12)%
    Realized Price – Crude Oil ($/Bo) $70.40 $68.98 2% $75.72 (7)%
    Revenues ($MM) $79.1 $83.4 (5)% $94.5 (16)%
    Net Income ($MM) $9.1 $5.7 60% $5.5 65%
    Adjusted Net Income1 ($MM) $10.7 $12.3 (13)% $20.3 (47)%
    Adjusted EBITDA1 ($MM) $46.4 $50.9 (9)% $62.0 (25)%
    Capital Expenditures ($MM) $32.5 $37.6 (14)% $36.3 (10)%
    Adjusted Free Cash Flow1 ($MM) $5.8 $4.7 23% $15.6 (63)%


    Adjusted Net Income, Adjusted EBITDA, and Adjusted Free Cash Flow     are non-GAAP financial measures, which are described in more detail and reconciled to the most comparable GAAP measures, in the tables shown later in this release under “Non-GAAP Financial Information.” In addition, see section titled “Condensed Operating Data” for additional details concerning costs and expenses discussed below.

    Sales volumes for 1Q 2025 were 18,392 Boe/d (66% oil, 18% natural gas liquids (“NGLs”) and 16% natural gas) versus 4Q 2024 sales volumes of 19,658 Boe/d (66% oil, 19% NGLs and 15% natural gas) and 1Q 2024 sales volumes of 19,034 Boe/d (70% oil, 15% NGLs and 15% natural gas).

    Average realized sales prices for 1Q 2025 were $70.40 per barrel of crude oil, $(0.19) per Mcf of natural gas, and $9.65 per barrel of NGLs. The realized natural gas and NGL prices were impacted by increased fees resulting in lower realized prices. The weighted average natural gas price per Mcf was $1.86 and the weighted average fee per Mcf was $(2.05); the weighted average NGL price per barrel was $22.64 offset by a weighted average fee per barrel of $(12.99). The weighted average natural gas price for 1Q 2025 reflects continued natural gas product takeaway constraints, which are being alleviated through additional third-party pipeline capacity. The average oil price differential the Company experienced from NYMEX WTI (“West Texas Intermediate”) futures pricing in 1Q 2025 was a negative $0.89 per barrel of crude oil, while the average natural gas price differential from NYMEX futures pricing was a negative $3.81 per Mcf.

    Revenues were $79.1 million for 1Q 2025 compared to $83.4 million for 4Q 2024 and $94.5 million for 1Q 2024. The 5% decrease in 1Q 2025 revenues from 4Q 2024 was driven by a negative $7.3 million volume variance offset by a positive $3.0 million price variance.

    Select Expenses and Other Items

      Q1 2025 Q4 2024 Q1 2025
    to Q    4 2024
    % Change    		 Q1 2024 Q1 2025
    to Q    1 2024
    % Change
    Lease operating expenses (“LOE”) ($MM) $19.7 $20.3 (3)% $18.4 7%
    Lease operating expenses ($/BOE) (1) $11.89 $11.24 6% $10.60 12%
    Depreciation, depletion and amortization ($MM) $22.6 $24.5 (8)% $23.8 (5)%
    Depreciation, depletion and amortization ($/BOE) $13.66 $13.57 1% $13.74 (1)%
    General and administrative expenses (“G&A”) ($MM) $8.6 $8.0 8% $7.5 15%
    General and administrative expenses ($/BOE) $5.21 $4.44 17% $4.31 21%
    G&A excluding share-based compensation ($MM) $6.9 $6.4 8% $5.7 (21)%
    G&A excluding share-based compensation ($/BOE) $4.19 $3.52 19% $3.32 26%
    G&A excluding share-based compensation & transaction costs ($MM) $6.9 $6.3 10% $5.7 21%
    G&A excluding share-based compensation & transaction costs ($/BOE) $4.18 $3.51 19% $3.32 26%
    Interest expense ($MM) (2) $9.5 $10.1 (6)% $11.5 (17)%
    Interest expense ($/BOE) $5.74 $5.59 3% $6.64 (14)%
    Gain (loss) on derivative contracts ($MM) (3) $(0.9) $(6.3) 85% $(19.0) 95%
    Realized gain (loss) on derivative contracts ($MM) $(0.5) $0.7 (171)% $(1.4) 64%
    Unrealized gain (loss) on derivative contracts ($MM) $(0.4) $(7.0) 94% $(17.6) 98%

    (1) LOE was within the Company’s guidance of $11.75 to $12.25 per Boe for 1Q 2025.

    (2) The decline in interest expense from prior quarters was due to lower interest rates and reduced borrowings on the credit facility.

    (3) A summary listing of the Company’s outstanding derivative positions at March 31, 2025 is included in the tables shown later in this release. For the remainder (April through December) of 2025, the Company has approximately 1.7 million barrels of oil (approximately 47% of oil sales guidance midpoint) hedged at an average downside protection price of $64.44 and approximately 2.0 billion cubic feet of natural gas (approximately 37% of natural gas sales guidance midpoint) hedged at an average downside protection of $3.43.

    Capital Investment

    During 1Q 2025, capital expenditures for the Company’s drilling and development activities were $32.5 million, which was within the Company’s guidance of $26 million to $34 million. Ring also invested approximately $70.9 million for the Lime Rock Acquisition that closed on March 31, 2025 (including the $63.6 million cash payment at closing, the $5.0 million deposit payment made in February, and $2.3 million in direct transaction costs).

    Drilling and Development

    Ring drilled, completed, and placed on production seven wells. In the Northwest Shelf in Yoakum County, Ring drilled and completed three 1-mile horizontal wells and one 1.25-mile horizontal well, all with a working interest of 75%. In the CBP in Ector County, the Company drilled and completed three vertical wells, all with a working interest of 100%.

    Quarter   Area   Wells Drilled   Wells Completed
                 
    1Q 2025   Northwest Shelf (Horizontal)   4   4
        Central Basin Platform (Horizontal)   —   —
        Central Basin Platform (Vertical)   3   3
        Total   7   7


    Acquisition – CBP Assets of Lime Rock

    During 1Q 2025, Ring completed the acquisition of CBP assets from Lime Rock. Those properties are located in the Permian Basin in Andrews County, Texas, and are focused on the development of approximately 17,700 net acres where the majority are similar to Ring’s existing CBP assets in the Shafter Lake area, and the remaining acreage exposes the Company to new active plays.

    The key transaction highlights include:

    • Highly Accretive: ~2,300 Boe/d (>75% oil) of low-decline net production from ~101 gross wells;
    • Increased Scale and Operational Synergies: ~17,700 net acres (100% HBP) mostly contiguous to Ring’s existing footprint;
    • Meaningful AFCF Generation: Supported by $121 million of oil-weighted reserves (based on NYMEX strip pricing as of February 19, 2025; and
    • Strengthens High-Return Inventory Portfolio: >40 gross locations that immediately compete for capital.

    After taking into account preliminary purchase price adjustments, consideration for the acquisition consisted of:

    • A cash payment of approximately $63.6 million net of the $5.0 million deposit payment made in February;
    • $10.0 million deferred cash payment due on or about December 31, 2025; and
    • The issuance of approximately 6.5 million shares of common stock.

    The cash payment at closing on March 31, 2025 was funded with cash on hand and borrowings under Ring’s senior revolving credit facility.

    Balance Sheet and Liquidity

    Total liquidity (defined as cash and cash equivalents plus borrowing base availability under the Company’s credit facility) at March 31, 2025 was approximately $141.1 million, consisting of $140.0 million of availability under Ring’s revolving credit facility, which included a reduction of $35 thousand for letters of credit, and $1.1 million in cash and cash equivalents. On March 31, 2025, the Company had $460 million in borrowings outstanding on its credit facility that has a current borrowing base of $600 million and reflects the draw on the revolving credit facility to fund the Lime Rock Acquisition. The Company is targeting continued debt reduction, dependent on market conditions, the timing and level of capital spending, and other considerations.

    Second Half of 2025 Sales Volumes, Capital Investment and Operating Expense Guidance

    Ring’s 2025 development program has been updated to reflect a reduction in capital spending in response to the weakened price environment. For full year 2025, Ring now expects total capital spending of $85 million to $113 million (versus $138 million to $170 million previously disclosed). In addition to wells that the Company plans to drill and complete, the full year capital spending program includes funds for targeted well recompletions, capital workovers, infrastructure upgrades, reactivations, and leasing costs, as well as non-operated drilling, completion, capital workovers, and facility improvements.

    All projects and estimates are based on assumed WTI oil prices of $50 to $70 per barrel and Henry Hub prices of $3.00 to $4.00 per Mcf. As in the past, Ring has designed its spending program with flexibility to respond to changes in commodity prices and other market conditions as appropriate.

    Based on the $99 million midpoint of spending guidance, the Company continues to expect the following estimated allocation of capital, including:

    • 61% for drilling, completion, and related infrastructure;
    • 33% for recompletions and capital workovers;
    • 4% for facility improvements (environmental and emission reducing upgrades); and
    • 2% for land, non-operated capital, and other.

    The guidance in the table below represents the Company’s current good faith estimate of the range of likely future results. Guidance could be affected by the factors discussed below in the “Safe Harbor Statement” section.

        Q2 2H
        2025 2025
    Sales Volumes:      
    Total Oil (Bo/d)   13,700 – 14,700 12,500 – 14,000
    Midpoint (Bo/d)   14,200 13,250
    Total (Boe/d)   20,500 – 22,500 19,000 – 21,000
    Midpoint (Boe/d)   21,500 20,000
    Oil (%)   66% 66%
    NGLs (%)   18% 18%
    Gas (%)   16% 16%
           
    Capital Program:      
    Capital spending(1) (millions)   $14 – $22 $38 – $58
    Midpoint (millions)   $18 $48
    New Hz and vertical wells (2)   2 – 3 11 – 13
    Recompletions and CTRs   6 – 8 17 – 22
           
    Operating Expenses:      
    LOE (per Boe)   $11.50 – $12.50 $11.50 – $12.50
    Midpoint (per Boe)   $12.00 $12.00


    (1)     In addition to Company-directed drilling and completion activities, the capital spending outlook includes funds for targeted well recompletions, capital workovers, infrastructure upgrades, and well reactivations. Also included is anticipated spending for leasing acreage; and non-operated drilling, completion, capital workovers, and facility improvements.
    (2) Includes wells drilled, completed, and placed online.

    Conference Call Information

    Ring will hold a conference call on Thursday, May 8, 2025 at 12:00 p.m. ET (11 a.m. CT) to discuss its 1Q 2025 operational and financial results. An updated investor presentation will be posted to the Company’s website prior to the conference call.

    To participate in the conference call, interested parties should dial 833-953-2433 at least five minutes before the call is to begin. Please reference the “Ring Energy 1Q 2025 Earnings Conference Call”. International callers may participate by dialing 412-317-5762. The call will also be webcast and available on Ring’s website at www.ringenergy.com under “Investors” on the “News & Events” page. An audio replay will also be available on the Company’s website following the call.

    About Ring Energy, Inc.

    Ring Energy, Inc. is an oil and gas exploration, development, and production company with current operations focused on the development of its Permian Basin assets. For additional information, please visit www.ringenergy.com. 

    Safe Harbor Statement

    This release contains 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 involve a wide variety of risks and uncertainties, and include, without limitation, statements with respect to the Company’s strategy and prospects. The forward-looking statements include statements about the expected future reserves, production, financial position, business strategy, revenues, earnings, costs, capital expenditures and debt levels of the Company, expected benefits to the Company and its stockholders from the Lime Rock Acquisition, and plans and objectives of management for future operations. Forward-looking statements also include assumptions and projections for second quarter and full year 2025 guidance for sales volumes, oil mix as a percentage of total sales, capital expenditures, operating expenses and the projected impacts thereon, and the number of wells expected to be drilled and completed. Forward-looking statements are based on current expectations and assumptions and analyses made by Ring and its management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to: declines in oil, natural gas liquids or natural gas prices; the level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities particularly in the winter; the timing of exploration and development expenditures; inaccuracies of reserve estimates or assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; impacts to financial statements as a result of impairment write-downs; risks related to level of indebtedness and periodic redeterminations of the borrowing base and interest rates under the Company’s credit facility; Ring’s ability to generate sufficient cash flows from operations to meet the internally funded portion of its capital expenditures budget; the impacts of hedging on results of operations; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers, and any resulting trade tensions; cost and availability of transportation and storage capacity as a result of oversupply, government regulation or other factors; and Ring’s ability to replace oil and natural gas reserves. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the Securities and Exchange Commission (“SEC”), including its Form 10-K for the fiscal year ended December 31, 2024, and its other SEC filings. Ring undertakes no obligation to revise or update publicly any forward-looking statements, except as required by law.

    Contact Information

    Al Petrie Advisors
    Al Petrie, Senior Partner
    Phone: 281-975-2146
    Email: apetrie@ringenergy.com

     
    RING ENERGY, INC. 
    Condensed Statements of Operations 
    (Unaudited)
     
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
                 
    Oil, Natural Gas, and Natural Gas Liquids Revenues   $ 79,091,207     $ 83,440,546     $ 94,503,136  
                 
    Costs and Operating Expenses            
    Lease operating expenses     19,677,552       20,326,216       18,360,434  
    Gathering, transportation and processing costs     203,612       130,230       166,054  
    Ad valorem taxes     1,532,108       2,421,595       2,145,631  
    Oil and natural gas production taxes     3,584,455       3,857,147       4,428,303  
    Depreciation, depletion and amortization     22,615,983       24,548,849       23,792,450  
    Asset retirement obligation accretion     326,549       323,085       350,834  
    Operating lease expense     175,091       175,090       175,091  
    General and administrative expense     8,619,976       8,035,977       7,469,222  
                 
    Total Costs and Operating Expenses     56,735,326       59,818,189       56,888,019  
                 
    Income from Operations     22,355,881       23,622,357       37,615,117  
                 
    Other Income (Expense)            
    Interest income     90,058       124,765       78,544  
    Interest (expense)     (9,498,786 )     (10,112,496 )     (11,498,944 )
    Gain (loss) on derivative contracts     (928,790 )     (6,254,448 )     (19,014,495 )
    Gain (loss) on disposal of assets     124,610       —       38,355  
    Other income     8,942       80,970       25,686  
    Net Other Income (Expense)     (10,203,966 )     (16,161,209 )     (30,370,854 )
                 
    Income Before Benefit from (Provision for) Income Taxes     12,151,915       7,461,148       7,244,263  
                 
    Benefit from (Provision for) Income Taxes     (3,041,177 )     (1,803,629 )     (1,728,886 )
                 
    Net Income (Loss)   $ 9,110,738     $ 5,657,519     $ 5,515,377  
                 
    Basic Earnings (Loss) per Share   $ 0.05     $ 0.03     $ 0.03  
    Diluted Earnings (Loss) per Share   $ 0.05     $ 0.03     $ 0.03  
                 
    Basic Weighted-Average Shares Outstanding     199,314,182       198,166,543       197,389,782  
    Diluted Weighted-Average Shares Outstanding     201,072,594       200,886,010       199,305,150  
                             
    RING ENERGY, INC.
    Condensed Operating Data
    (Unaudited)
     
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
                 
    Net sales volumes:            
    Oil (Bbls)     1,086,694       1,188,272       1,218,837  
    Natural gas (Mcf)     1,615,196       1,683,793       1,496,507  
    Natural gas liquids (Bbls)     299,366       339,589       263,802  
    Total oil, natural gas and natural gas liquids (Boe)(1)     1,655,259       1,808,493       1,732,057  
                 
    % Oil     66 %     66 %     70 %
    % Natural Gas     16 %     15 %     15 %
    % Natural Gas Liquids     18 %     19 %     15 %
                 
    Average daily sales volumes:            
    Oil (Bbls/d)     12,074       12,916       13,394  
    Natural gas (Mcf/d)     17,947       18,302       16,445  
    Natural gas liquids (Bbls/d)     3,326       3,691       2,899  
    Average daily equivalent sales (Boe/d)     18,392       19,658       19,034  
                 
    Average realized sales prices:            
    Oil ($/Bbl)   $ 70.40     $ 68.98     $ 75.72  
    Natural gas ($/Mcf)     (0.19 )     (0.96 )     (0.55 )
    Natural gas liquids ($/Bbls)     9.65       9.08       11.47  
    Barrel of oil equivalent ($/Boe)   $ 47.78     $ 46.14     $ 54.56  
                 
    Average costs and expenses per Boe ($/Boe):            
    Lease operating expenses   $ 11.89     $ 11.24     $ 10.60  
    Gathering, transportation and processing costs     0.12       0.07       0.10  
    Ad valorem taxes     0.93       1.34       1.24  
    Oil and natural gas production taxes     2.17       2.13       2.56  
    Depreciation, depletion and amortization     13.66       13.57       13.74  
    Asset retirement obligation accretion     0.20       0.18       0.20  
    Operating lease expense     0.11       0.10       0.10  
    G&A (including share-based compensation)     5.21       4.44       4.31  
    G&A (excluding share-based compensation)     4.19       3.52       3.32  
    G&A (excluding share-based compensation and transaction costs)     4.18       3.51       3.32  
                             

    (1) Boe is determined using the ratio of six Mcf of natural gas to one Bbl of oil (totals may not compute due to rounding.) The conversion ratio does not assume price equivalency and the price on an equivalent basis for oil, natural gas, and natural gas liquids may differ significantly.

     
    RING ENERGY, INC.
    Condensed Balance Sheet 
    (Unaudited)
        As of
        March 31, 2025   December 31, 2024
    ASSETS        
    Current Assets        
    Cash and cash equivalents   $ 1,100,851     $ 1,866,395  
    Accounts receivable     35,680,686       36,172,316  
    Joint interest billing receivables, net     2,121,035       1,083,164  
    Derivative assets     5,309,892       5,497,057  
    Inventory     3,300,755       4,047,819  
    Prepaid expenses and other assets     1,156,529       1,781,341  
    Total Current Assets     48,669,748       50,448,092  
    Properties and Equipment        
    Oil and natural gas properties, full cost method     1,932,616,777       1,809,309,848  
    Financing lease asset subject to depreciation     4,272,259       4,634,556  
    Fixed assets subject to depreciation     3,359,292       3,389,907  
    Total Properties and Equipment     1,940,248,328       1,817,334,311  
    Accumulated depreciation, depletion and amortization     (496,993,139 )     (475,212,325 )
    Net Properties and Equipment     1,443,255,189       1,342,121,986  
    Operating lease asset     1,753,693       1,906,264  
    Derivative assets     5,020,380       5,473,375  
    Deferred financing costs     6,911,264       8,149,757  
    Total Assets   $ 1,505,610,274     $ 1,408,099,474  
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current Liabilities        
    Accounts payable   $ 86,417,436     $ 95,729,261  
    Income tax liability     537,591       328,985  
    Financing lease liability     846,380       906,119  
    Operating lease liability     661,487       648,204  
    Derivative liabilities     5,426,195       6,410,547  
    Notes payable     —       496,397  
    Deferred cash payment     9,415,066       —  
    Asset retirement obligations     441,611       517,674  
    Total Current Liabilities     103,745,766       105,037,187  
             
    Non-current Liabilities        
    Deferred income taxes     31,496,585       28,591,802  
    Revolving line of credit     460,000,000       385,000,000  
    Financing lease liability, less current portion     708,304       647,078  
    Operating lease liability, less current portion     1,234,690       1,405,837  
    Derivative liabilities     3,632,133       2,912,745  
    Asset retirement obligations     28,826,738       25,864,843  
    Total Liabilities     629,644,216       549,459,492  
    Commitments and contingencies        
    Stockholders’ Equity        
    Preferred stock – $0.001 par value; 50,000,000 shares authorized; no shares issued or outstanding     —       —  
    Common stock – $0.001 par value; 450,000,000 shares authorized; 206,509,126 shares and 198,561,378 shares issued and outstanding, respectively     206,509       198,561  
    Additional paid-in capital     808,627,109       800,419,719  
    Retained earnings (Accumulated deficit)     67,132,440       58,021,702  
    Total Stockholders’ Equity     875,966,058       858,639,982  
    Total Liabilities and Stockholders’ Equity   $ 1,505,610,274     $ 1,408,099,474  
     
    RING ENERGY, INC.
    Condensed Statements of Cash Flows 
    (Unaudited)
     
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
    Cash Flows From Operating Activities            
    Net income   $ 9,110,738     $ 5,657,519     $ 5,515,377  
    Adjustments to reconcile net income to net cash provided by operating activities:            
    Depreciation, depletion and amortization     22,615,983       24,548,849       23,792,450  
    Asset retirement obligation accretion     326,549       323,085       350,834  
    Amortization of deferred financing costs     1,238,493       1,299,078       1,221,607  
    Share-based compensation     1,690,958       1,672,320       1,723,832  
    Credit loss expense     17,917       (26,747 )     163,840  
    (Gain) loss on disposal of assets     (124,610 )     —       —  
    Deferred income tax expense (benefit)     2,805,346       1,723,338       1,585,445  
    Excess tax expense (benefit) related to share-based compensation     99,437       9,011       40,808  
    (Gain) loss on derivative contracts     928,790       6,254,448       19,014,495  
    Cash received (paid) for derivative settlements, net     (553,594 )     745,104       (1,461,515 )
    Changes in operating assets and liabilities:            
    Accounts receivable     (564,158 )     349,474       (5,240,487 )
    Inventory     747,064       580,161       171,416  
    Prepaid expenses and other assets     624,812       295,555       503,704  
    Accounts payable     (10,385,137 )     4,462,089       (1,601,276 )
    Settlement of asset retirement obligation     (207,580 )     (613,603 )     (591,361 )
    Net Cash Provided by Operating Activities     28,371,008       47,279,681       45,189,169  
                 
    Cash Flows From Investing Activities            
    Payments for the Lime Rock Acquisition     (70,859,769 )     —       —  
    Payments to purchase oil and natural gas properties     (647,106 )     (1,423,483 )     (475,858 )
    Payments to develop oil and natural gas properties     (31,083,507 )     (36,386,055 )     (38,904,808 )
    Payments to acquire or improve fixed assets subject to depreciation     (34,275 )     —       (124,937 )
    Proceeds from sale of fixed assets subject to depreciation     17,360       —       —  
    Proceeds from divestiture of equipment for oil and natural gas properties     —       121,232       —  
    Net Cash Used in Investing Activities     (102,607,297 )     (37,688,306 )     (39,505,603 )
                 
    Cash Flows From Financing Activities            
    Proceeds from revolving line of credit     114,000,000       22,000,000       51,500,000  
    Payments on revolving line of credit     (39,000,000 )     (29,000,000 )     (54,500,000 )
    Payments for taxes withheld on vested restricted shares, net     (896,431 )     —       (814,985 )
    Proceeds from notes payable     —       58,774       —  
    Payments on notes payable     (496,397 )     (475,196 )     (533,734 )
    Payment of deferred financing costs     —       (42,746 )     —  
    Reduction of financing lease liabilities     (136,427 )     (265,812 )     (255,156 )
    Net Cash Provided by (Used in) Financing Activities     73,470,745       (7,724,980 )     (4,603,875 )
                 
    Net Increase (Decrease) in Cash     (765,544 )     1,866,395       1,079,691  
    Cash at Beginning of Period     1,866,395       —       296,384  
    Cash at End of Period   $ 1,100,851     $ 1,866,395     $ 1,376,075  
     
    RING ENERGY, INC.
    Financial Commodity Derivative Positions 
    As of March 31, 2025
     
    The following tables reflect the details of current derivative contracts as of March 31, 2025 (quantities are in barrels (Bbl) for the oil derivative contracts and in million British thermal units (MMBtu) for the natural gas derivative contracts):
     
        Oil Hedges (WTI)
        Q2 2025   Q3 2025   Q4 2025   Q1 2026   Q2 2026   Q3 2026   Q4 2026   Q1 2027
                                     
    Swaps:                                
    Hedged volume (Bbl)     151,763     351,917     141,755     477,350     457,101     59,400     423,000     381,500
    Weighted average swap price   $ 68.53   $ 71.41   $ 69.13   $ 70.16   $ 69.38   $ 66.70   $ 66.70   $ 63.80
                                     
    Two-way collars:                                
    Hedged volume (Bbl)     464,100     225,400     404,800     —     —     379,685     —     —
    Weighted average put price   $ 60.00   $ 65.00   $ 60.00   $ —   $ —   $ 60.00   $ —   $ —
    Weighted average call price   $ 69.85   $ 78.91   $ 75.68   $ —   $ —   $ 72.50   $ —   $ —
        Gas Hedges (Henry Hub)
        Q2 2025   Q3 2025   Q4 2025   Q1 2026   Q2 2026   Q3 2026   Q4 2026   Q1 2027
                                     
    NYMEX Swaps:                                
    Hedged volume (MMBtu)     513,900     455,250     128,400     140,600     662,300     121,400     613,300     —
    Weighted average swap price   $ 3.60   $ 3.88   $ 4.25   $ 4.20   $ 3.54   $ 4.22   $ 3.83   $ —
                                     
    Two-way collars:                                
    Hedged volume (MMBtu)     18,300     308,200     598,000     553,500     —     515,728     —     700,000
    Weighted average put price   $ 3.00   $ 3.00   $ 3.00   $ 3.50   $ —   $ 3.00   $ —   $ 4.00
    Weighted average call price   $ 4.15   $ 4.75   $ 4.15   $ 5.03   $ —   $ 3.93   $ —   $ 5.20
        Oil Hedges (basis differential)
        Q2 2025   Q3 2025   Q4 2025   Q1 2026   Q2 2026   Q3 2026   Q4 2026   Q1 2027
                                     
    Argus basis swaps:                                
    Hedged volume (Bbl)     183,000     276,000     276,000     —     —     —     —     —
    Weighted average spread price (1)   $ 1.00   $ 1.00   $ 1.00   $ —   $ —   $ —   $ —   $ —
                                     
        Gas Hedges (basis differential)
        Q2 2025   Q3 2025   Q4 2025   Q1 2026   Q2 2026   Q3 2026   Q4 2026   Q1 2027
                                     
    El Paso Permian Basin basis swaps:                                
    Hedged volume (MMBtu)     —     —     —     —     —     —     —     700,000
    Weighted average spread price (2)   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ 0.74
                                                     

    (1) The oil basis swap hedges are calculated as the fixed price (weighted average spread price above) less the difference between WTI Midland and WTI Cushing, in the issue of Argus Americas Crude.

    (2) The gas basis swap hedges are calculated as the Henry Hub natural gas price less the fixed amount specified as the weighted average spread price above.

    RING ENERGY, INC.
    Non-GAAP Financial Information

    Certain financial information included in this release are not measures of financial performance recognized by accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures are “Adjusted Net Income,” “Adjusted EBITDA,” “Adjusted Free Cash Flow” or “AFCF,” “Adjusted Cash Flow from Operations” or “ACFFO,” “G&A Excluding Share-Based Compensation,” “G&A Excluding Share-Based Compensation and Transaction Costs,” “Leverage Ratio,” “All-In Cash Operating Costs,” and “Cash Operating Margin.” Management uses these non-GAAP financial measures in its analysis of performance. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies.

    Reconciliation of Net income to Adjusted Net Income

    “Adjusted Net Income” is calculated as net income minus the estimated after-tax impact of share-based compensation, ceiling test impairment, unrealized gains and losses on changes in the fair value of derivatives, and transaction costs for executed acquisitions and divestitures (“A&D”). Adjusted Net Income is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current period to prior periods. The Company believes that the presentation of Adjusted Net Income provides useful information to investors as it is one of the metrics management uses to assess the Company’s ongoing operating and financial performance, and also is a useful metric for investors to compare Ring’s results with its peers.

         
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
        Total   Per
    share –
    diluted    		   Total   Per
    share –
    diluted    		   Total   Per
    share –
    diluted
    Net income   $ 9,110,738     $ 0.05     $ 5,657,519     $ 0.03     $ 5,515,377     $ 0.03  
                             
    Share-based compensation     1,690,958       0.01       1,672,320       0.01       1,723,832       0.01  
    Unrealized loss (gain) on change in fair value of derivatives     375,196       —       6,999,552       0.03       17,552,980       0.08  
    Transaction costs – executed A&D     1,776       —       21,017       —       3,539       —  
    Tax impact on adjusted items     (500,646 )     (0.01 )     (2,008,740 )     (0.01 )     (4,447,977 )     (0.02 )
                             
    Adjusted Net Income   $ 10,678,022     $ 0.05     $ 12,341,668     $ 0.06     $ 20,347,751     $ 0.10  
                             
    Diluted Weighted-Average Shares Outstanding     201,072,594           200,886,010           199,305,150      
                             
    Adjusted Net Income per Diluted Share   $ 0.05         $ 0.06         $ 0.10      


    Reconciliation of     Net income to Adjusted EBITDA

    The Company defines “Adjusted EBITDA” as net income plus net interest expense (including interest income and expense), unrealized loss (gain) on change in fair value of derivatives, ceiling test impairment, income tax (benefit) expense, depreciation, depletion and amortization, asset retirement obligation accretion, transaction costs for executed acquisitions and divestitures (A&D), share-based compensation, loss (gain) on disposal of assets, and backing out the effect of other income. Company management believes Adjusted EBITDA is relevant and useful because it helps investors understand Ring’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. Adjusted EBITDA, as Ring calculates it, may not be comparable to Adjusted EBITDA measures reported by other companies. In addition, Adjusted EBITDA does not represent funds available for discretionary use.

        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
    Net income   $ 9,110,738     $ 5,657,519     $ 5,515,377  
                 
    Interest expense, net     9,408,728       9,987,731       11,420,400  
    Unrealized loss (gain) on change in fair value of derivatives     375,196       6,999,552       17,552,980  
    Income tax (benefit) expense     3,041,177       1,803,629       1,728,886  
    Depreciation, depletion and amortization     22,615,983       24,548,849       23,792,450  
    Asset retirement obligation accretion     326,549       323,085       350,834  
    Transaction costs – executed A&D     1,776       21,017       3,539  
    Share-based compensation     1,690,958       1,672,320       1,723,832  
    Loss (gain) on disposal of assets     (124,610 )     —       (38,355 )
    Other income     (8,942 )     (80,970 )     (25,686 )
                 
    Adjusted EBITDA   $ 46,437,553     $ 50,932,732     $ 62,024,257  
                 
    Adjusted EBITDA Margin     59 %     61 %     66 %
                             

    Reconciliations of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow and Adjusted EBITDA to Adjusted Free Cash Flow

    The Company defines “Adjusted Free Cash Flow” or “AFCF” as Net Cash Provided by Operating Activities less changes in operating assets and liabilities (as reflected on Ring’s Condensed Statements of Cash Flows), plus transaction costs for executed acquisitions and divestitures (A&D), current income tax expense (benefit), proceeds from divestitures of equipment for oil and natural gas properties, loss (gain) on disposal of assets, and less capital expenditures, credit loss expense, and other income. For this purpose, the Company’s definition of capital expenditures includes costs incurred related to oil and natural gas properties (such as drilling and infrastructure costs and lease maintenance costs) but excludes acquisition costs of oil and gas properties from third parties that are not included in Ring’s capital expenditures guidance provided to investors. Management believes that Adjusted Free Cash Flow is an important financial performance measure for use in evaluating the performance and efficiency of the Company’s current operating activities after the impact of capital expenditures and net interest expense (including interest income and expense, excluding amortization of deferred financing costs) and without being impacted by items such as changes associated with working capital, which can vary substantially from one period to another. Other companies may use different definitions of Adjusted Free Cash Flow.

         
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
                 
    Net Cash Provided by Operating Activities   $ 28,371,008     $ 47,279,681     $ 45,189,169  
    Adjustments – Condensed Statements of Cash Flows            
    Changes in operating assets and liabilities     9,784,999       (5,073,676 )     6,758,004  
    Transaction costs – executed A&D     1,776       21,017       3,539  
    Income tax expense (benefit) – current     136,393       71,280       102,633  
    Capital expenditures     (32,451,531 )     (37,633,168 )     (36,261,008 )
    Proceeds from divestiture of equipment for oil and natural gas properties     —       121,232       —  
    Credit loss expense     (17,917 )     26,747       (163,840 )
    Loss (gain) on disposal of assets     —       —       (38,355 )
    Other income     (8,942 )     (80,970 )     (25,686 )
                 
    Adjusted Free Cash Flow   $ 5,815,786     $ 4,732,143     $ 15,564,456  
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
                 
    Adjusted EBITDA   $ 46,437,553     $ 50,932,732     $ 62,024,257  
                 
    Net interest expense (excluding amortization of deferred financing costs)     (8,170,235 )     (8,688,653 )     (10,198,793 )
    Capital expenditures     (32,451,531 )     (37,633,168 )     (36,261,008 )
    Proceeds from divestiture of equipment for oil and natural gas properties     —       121,232       —  
                 
    Adjusted Free Cash Flow   $ 5,815,787     $ 4,732,143     $ 15,564,456  


    Reconciliation of Net Cash Provided by Operating Activities to Adjusted Cash Flow from Operations

    The Company defines “Adjusted Cash Flow from Operations” or “ACFFO” as Net Cash Provided by Operating Activities, as reflected in Ring’s Condensed Statements of Cash Flows, less the changes in operating assets and liabilities, which includes accounts receivable, inventory, prepaid expenses and other assets, accounts payable, and settlement of asset retirement obligations, which are subject to variation due to the nature of the Company’s operations. Accordingly, the Company believes this non-GAAP measure is useful to investors because it is used often in its industry and allows investors to compare this metric to other companies in its peer group as well as the E&P sector.

         
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025     2024       2024
                 
    Net Cash Provided by Operating Activities   $ 28,371,008   $ 47,279,681     $ 45,189,169
                 
    Changes in operating assets and liabilities     9,784,999     (5,073,676 )     6,758,004
                 
    Adjusted Cash Flow from Operations   $ 38,156,007   $ 42,206,005     $ 51,947,173


    Reconciliation of General and Administrative Expense (G&A) to G&A Excluding Share-Based Compensation and Transaction Costs

    The following table presents a reconciliation of General and Administrative Expense (“G&A”), a GAAP measure, to G&A excluding share-based compensation, and G&A excluding share-based compensation and transaction costs for executed acquisitions and divestitures (A&D).

         
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025     2024     2024
                 
    General and administrative expense (G&A)   $ 8,619,976   $ 8,035,977   $ 7,469,222
    Shared-based compensation     1,690,958     1,672,320     1,723,832
    G&A excluding share-based compensation     6,929,018     6,363,657     5,745,390
    Transaction costs – executed A&D     1,776     21,017     3,539
    G&A excluding share-based compensation and transaction costs   $ 6,927,242   $ 6,342,640   $ 5,741,851


    Calculation of Leverage Ratio

    “Leverage” or the “Leverage Ratio” is calculated under the Company’s existing senior revolving credit facility and means as of any date, the ratio of (i) Consolidated total debt as of such date to (ii) Consolidated EBITDAX for the four consecutive fiscal quarters ending on or immediately prior to such date for which financial statements are required to have been delivered under the Company’s existing senior revolving credit facility.

    The Company defines “Consolidated EBITDAX” in accordance with its existing senior revolving credit facility that means for any period an amount equal to the sum of (i) consolidated net income (loss) for such period plus (ii) to the extent deducted in determining consolidated net income for such period, and without duplication, (A) consolidated interest expense, (B) income tax expense determined on a consolidated basis in accordance with GAAP, (C) depreciation, depletion and amortization determined on a consolidated basis in accordance with GAAP, (D) exploration expenses determined on a consolidated basis in accordance with GAAP, and (E) all other non-cash charges acceptable to Ring’s senior revolving credit facility administrative agent determined on a consolidated basis in accordance with GAAP, in each case for such period minus (iii) all noncash income added to consolidated net income (loss) for such period; provided that, for purposes of calculating compliance with the financial covenants, to the extent that during such period the Company shall have consummated an acquisition permitted by the credit facility or any sale, transfer or other disposition of any property or assets permitted by the senior revolving credit facility, Consolidated EBITDAX will be calculated on a pro forma basis with respect to the property or assets so acquired or disposed of.

    Also set forth in Ring’s existing senior revolving credit facility is the maximum permitted Leverage Ratio of 3.00. The following tables show the leverage ratio calculations for the quarters ended March 31, 2025 and March 31, 2024.

     
        (Unaudited)
        Three Months Ended    
        June 30,   September 30,   December 31,   March 31,   Last Four
    Quarters
          2024       2024       2024     2025  
    Consolidated EBITDAX Calculation:                    
    Net Income (Loss)   $ 22,418,994     $ 33,878,424     $ 5,657,519   $ 9,110,738   $ 71,065,675  
    Plus: Consolidated interest expense     10,801,194       10,610,539       9,987,731     9,408,728     40,808,192  
    Plus: Income tax provision (benefit)     6,820,485       10,087,954       1,803,629     3,041,177     21,753,245  
    Plus: Depreciation, depletion and amortization     24,699,421       25,662,123       24,548,849     22,615,983     97,526,376  
    Plus: non-cash charges acceptable to Administrative Agent     1,664,064       (26,228,108 )     8,994,957     2,392,703     (13,176,384 )
    Consolidated EBITDAX   $ 66,404,158     $ 54,010,932     $ 50,992,685   $ 46,569,329   $ 217,977,104  
    Plus: Pro Forma Acquired Consolidated EBITDAX     10,329,116       7,838,163       5,244,078     7,392,359     30,803,716  
    Less: Pro Forma Divested Consolidated EBITDAX     (469,376 )     (600,460 )     77,819     8,855     (983,162 )
    Pro Forma Consolidated EBITDAX   $ 76,263,898     $ 61,248,635     $ 56,314,582   $ 53,970,543   $ 247,797,658  
                         
    Non-cash charges acceptable to Administrative Agent:                    
    Asset retirement obligation accretion   $ 352,184     $ 354,195     $ 323,085   $ 326,549    
    Unrealized loss (gain) on derivative assets     (765,898 )     (26,614,390 )     6,999,552     375,196    
    Share-based compensation     2,077,778       32,087       1,672,320     1,690,958    
    Total non-cash charges acceptable to Administrative Agent   $ 1,664,064     $ (26,228,108 )   $ 8,994,957   $ 2,392,703    
                         
        As of                
        March 31,   Corresponding            
          2025     Leverage Ratio            
    Leverage Ratio Covenant:                    
    Revolving line of credit   $ 460,000,000       1.86              
    Lime Rock deferred payment     10,000,000       0.04              
    Consolidated Total Debt   $ 470,000,000       1.90              
    Pro Forma Consolidated EBITDAX     247,797,658                  
    Leverage Ratio     1.90                  
    Maximum Allowed     ≤ 3.00x                  
                             
        (Unaudited)
        Three Months Ended    
        June 30,   September 30,   December 31,   March 31,   Last Four
    Quarters
          2023       2023       2023       2024  
    Consolidated EBITDAX Calculation:                    
    Net Income (Loss)   $ 28,791,605     $ (7,539,222 )   $ 50,896,479     $ 5,515,377   $ 77,664,239  
    Plus: Consolidated interest expense     10,471,062       11,301,328       11,506,908       11,420,400     44,699,698  
    Plus: Income tax provision (benefit)     (6,356,295 )     (3,411,336 )     7,862,930       1,728,886     (175,815 )
    Plus: Depreciation, depletion and amortization     20,792,932       21,989,034       24,556,654       23,792,450     91,131,070  
    Plus: non-cash charges acceptable to Administrative Agent     (470,875 )     36,396,867       (29,695,076 )     19,627,646     25,858,562  
    Consolidated EBITDAX   $ 53,228,429     $ 58,736,671     $ 65,127,895     $ 62,084,759   $ 239,177,754  
    Plus: Pro Forma Acquired Consolidated EBITDAX     9,542,529       4,810,123       —       —     14,352,652  
    Less: Pro Forma Divested Consolidated EBITDAX     (357,122 )     (672,113 )     (66,463 )     40,474     (1,055,224 )
    Pro Forma Consolidated EBITDAX   $ 62,413,836     $ 62,874,681     $ 65,061,432     $ 62,125,233   $ 252,475,182  
                         
    Non-cash charges acceptable to Administrative Agent:                    
    Asset retirement obligation accretion   $ 353,878     $ 354,175     $ 351,786     $ 350,834    
    Unrealized loss (gain) on derivative assets     (3,085,065 )     33,871,957       (32,505,544 )     17,552,980    
    Share-based compensation     2,260,312       2,170,735       2,458,682       1,723,832    
    Total non-cash charges acceptable to Administrative Agent   $ (470,875 )   $ 36,396,867     $ (29,695,076 )   $ 19,627,646    
                         
        As of                
        March 31,                
          2024                  
    Leverage Ratio Covenant:                    
    Revolving line of credit   $ 422,000,000                  
    Pro Forma Consolidated EBITDAX     252,475,182                  
    Leverage Ratio     1.67                  
    Maximum Allowed     ≤ 3.00x                  
                             

    All-In Cash Operating Costs

    The Company defines All-In Cash Operating Costs, a non-GAAP financial measure, as “all in cash” costs which includes lease operating expenses, G&A costs excluding share-based compensation, net interest expense (including interest income and expense, excluding amortization of deferred financing costs), workovers and other operating expenses, production taxes, ad valorem taxes, and gathering/transportation costs. Management believes that this metric provides useful additional information to investors to assess the Company’s operating costs in comparison to its peers, which may vary from company to company.

         
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025     2024     2024
    All-In Cash Operating Costs:            
    Lease operating expenses (including workovers)   $ 19,677,552   $ 20,326,216   $ 18,360,434
    G&A excluding share-based compensation     6,929,018     6,363,657     5,745,390
    Net interest expense (excluding amortization of deferred financing costs)     8,170,235     8,688,653     10,198,793
    Operating lease expense     175,091     175,090     175,091
    Oil and natural gas production taxes     3,584,455     3,857,147     4,428,303
    Ad valorem taxes     1,532,108     2,421,595     2,145,631
    Gathering, transportation and processing costs     203,612     130,230     166,054
    All-in cash operating costs   $ 40,272,071   $ 41,962,588   $ 41,219,696
                 
    Boe     1,655,259     1,808,493     1,732,057
                 
    All-in cash operating costs per Boe   $ 24.33   $ 23.20   $ 23.80


    Cash Operating Margin

    The Company defines Cash Operating Margin, a non-GAAP financial measure, as realized revenues per Boe less all-in cash operating costs per Boe. Management believes that this metric provides useful additional information to investors to assess the Company’s operating margins in comparison to its peers, which may vary from company to company.

         
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
         2025    2024    2024
    Cash Operating Margin            
    Realized revenues per Boe   $ 47.78   $ 46.14   $ 54.56
    All-in cash operating costs per Boe     24.33     23.20     23.80
    Cash Operating Margin per Boe   $ 23.45   $ 22.94   $ 30.76
     

    ______________________________________
    1     A non-GAAP financial measure; see the “Non-GAAP Financial Information” section in this release for more information including reconciliations to the most comparable GAAP measures.

    The MIL Network –

  • MIL-Evening Report: Australia is set to be a renewables nation. After Labor’s win, there’s no turning back

    Source: The Conversation (Au and NZ) – By Wesley Morgan, Research Associate, Institute for Climate Risk and Response, UNSW Sydney

    bmphotographer/Shutterstock

    An emphatic election victory for the incumbent Labor government means Australia’s rapid shift to renewable energy will continue. As Climate Change and Energy Minister Chris Bowen said on Saturday:

    In 2022, the Australian people voted to finally act on climate change. After three years of progress […] in 2025 they said keep going.

    The election result also means the debate about energy policy is now, in broad terms, over. Australia’s energy future is wind and solar, backed by storage.

    Coal and gas will have a fast-declining role to play and nuclear energy will have none at all. Australia is set to be a renewables nation. There is no turning back now.

    Cementing renewables investment

    By continuing to build renewables capacity, the returned Labor government can position Australia on the world stage as a genuine leader on clean energy.

    The Albanese government has set a national target of more than 80% of the main national electricity grid running on renewables by 2030. With such a large majority in parliament, Labor may well be in government at that time.

    Australia already has the world’s highest per-capita solar uptake, with about 300,000 solar systems installed each year. One in three Australian homes now has rooftop solar.

    Labor is complementing this boom with a new home battery discount scheme, which aims to have more than one million batteries installed by 2030. This will help stabilise the grid by reducing demand at peak times.

    But more investment in renewables is needed. The policy certainty of a returned Labor government should help to attract international capital. This is important, because more than 70% of investment in renewables in Australia comes from offshore.

    Securing climate consensus

    Labor’s win also means it can finally bed down a national consensus on climate policy.

    A recent survey on Australian attitudes to climate action suggested community views can shift if people see action is taken by governments and big business.

    This does not mean community opposition to renewable energy will evaporate – especially in regional Australia. The federal government must work with industry players and other levels of government to ensure proper public consultation. The new Net Zero Economy Authority will play an important role in ensuring the regions and their workers benefit from the energy transition.

    For its part, the Coalition needs to do some soul-searching. Australian voters returned a number of climate-friendly independents in key seats. The Coalition also failed to win support from younger Australians, who typically view renewables favourably.

    All this suggests continued opposition to renewables is unlikely to help the Coalition form government anytime soon. What’s more, continuing to promote nuclear power – which some in the Coalition are pushing for – makes little sense in an increasingly renewables-dominated grid.

    Doubling down on international climate cooperation

    Labor’s plans to rapidly expand renewable energy strengthen Australia’s credentials to host the COP31 UN climate talks with Pacific island countries next year.

    Australia’s bid has strong support from other nations. Turkey – the only other nation with its hand up to host – has so far resisted pressure from Australia to withdraw its bid. In support of their own bid, Turkish representatives pointed to uncertainty in Australia ahead of the May election – however that uncertainty has now passed.

    Adelaide will host the talks if Australia’s bid succeeds. This will be a chance to share our world-beating renewables story – including in South Australia, which is set to achieve 100% clean electricity by 2027.

    Australia could also use the talks in South Australia to promote new export industries that use renewable energy, especially plans to produce green iron and green steel at Whyalla.

    Hosting rights could attract investment in Australia’s renewables rollout and help promote exports of critical minerals and green metals. And it would enable Australia to cement its place in the Pacific during a time of increased geo-strategic competition, by promoting a renewables partnership for the whole region.

    Australia must move fast and secure the COP31 bid at climate talks in Germany next month. Any delay risks a less ambitious summit next year, because building consensus for new initiatives takes time.

    South Australia has made a bold bid to host COP31 (SA Government)

    Seizing our economic opportunities

    As Prime Minister Anthony Albanese said during his victory speech on Saturday, renewable energy is “an opportunity we must work together to seize for the future of our economy”.

    Australia is the world’s largest exporter of raw iron ore and metallurgical coal, both used extensively in offshore steelmaking.

    But Australia can create jobs and reduce emissions by refining iron ore in Australia using renewables and green hydrogen.

    The potential export value of green iron is estimated at A$295 billion a year, or three times the current value of iron ore exports. More broadly, our clean energy exports – including green metals, fertilisers and fuels – could be worth six to eight times more than our fossil fuel exports, analysis suggests.

    A key challenge for the returned government is assuring markets such as Japan that Australia is a long-term strategic partner, even while redirecting trade and investment away from coal and gas exports and toward long-term clean energy industries.

    Embracing Australia’s future

    Australians have delivered a strong mandate for climate action. The returned Labor government must ensure this support is not squandered, and voter trust is not lost.

    This means seizing the opportunity, once and for all, to shift Australia from our past as a fossil fuel heavyweight to our future as a renewables superpower.

    Wesley Morgan is a fellow with the Climate Council of Australia

    Ben Newell receives funding from the Australian Research Council

    – ref. Australia is set to be a renewables nation. After Labor’s win, there’s no turning back – https://theconversation.com/australia-is-set-to-be-a-renewables-nation-after-labors-win-theres-no-turning-back-256081

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Gov. Pillen Hosts Ceremonial Bill Signing Celebrating Creation of New State Agency

    Source: US State of Nebraska

    . Pillen Hosts Ceremonial Bill Signing Celebrating Creation of New State Agency

    LINCOLN, NE – Today, Governor Jim Pillen ceremoniously signed LB317, creating the Nebraska Department of Water, Energy and Environment (DWEE). He was joined in remarks by Senator Tom Brandt, who brought the legislation on the Governor’s behalf, as well as Jesse Bradley, who will serve as director of the new agency and Matt Manning, the newly appointed chief water officer for the state.

    LB317 combines the Department of Environment and Energy (DEE) and the Department of Natural Resources (DNR). One of the significant focuses of the DWEE will be preserving and enhancing  the state’s water resources.

    “Water is our life blood, and our pot of gold is the Ogallala Aquifer,” said Gov. Pillen. “In Nebraska, we irrigate millions of acres – more than any other state in the nation. When you couple that with the advancements in cattle production and the other industries that are becoming part of our bioeconomy, that’s what makes this merger a timely development — one that is important for future generations.”

    Sen. Brandt complimented Nebraska farmers and ranchers for being good stewards of their land and raising their crops and animals in the most sustainable way possible. He said the new agency will provide them with additional resources and outreach as well as enhance collaboration when it comes to water planning, state investment in future water-related projects and permitting processes.

    “We’re cutting red tape, streamlining government and making sure our state works as hard as our farmers do,” Brandt added.

    At the bill signing, Gov. Pillen introduced Dir. Bradley, who has been serving as interim director of both DEE and DNR. Bradley started at DNR in 2006 as an integrated water management analyst. In 2012, he became head of the Water Planning Division, and two years later, was promoted to deputy director of DNR. He has degrees in environmental geology and hydrogeology and is a licensed professional geologist in Nebraska.

    Bradley said he was honored by Gov. Pillen’s appointment and looked forward to being the first director of the Nebraska Department of Water, Energy, and Environment.  The merger, he continued, will join the best of both agencies in supporting the management of Nebraska’s natural resources.

    “In accomplishing that objective, we will ensure that Nebraska remains a leader in sustainable natural resources management and that those resources will continue to support our agricultural producers, energy providers, communities, and all Nebraskans for generations to come.”

    Matt Manning, an engineer with DNR since 2023, will be the DWEE’s chief water officer. He currently oversees the planning and development of the Perkins County Canal. Prior to joining DNR, he worked for several engineering firms and founded his own heavy civil construction firm.

    “I am excited to work with Governor Pillen, Director Bradley, and our various stakeholders to enhance and protect the state’s most important natural resource for all Nebraskans, now and into the future,” Manning said.

    In addition to the logistics of combining both agencies over the coming months, Dir. Bradley said top priorities would include continued work on the Perkins County Canal as well as engagement with the newly formed Water Quantity and Quality Task Force, slated to gather in June.  

    “Like the Governor said, we want to take a more proactive approach to these issues,” said Dir. Bradley. “We’re asking: How can we use the technology that is out there to help producers innovate? How do we educate them about possible options and opportunities and help leverage that into improving our water quality and enhancing our water quantity?”

    As gubernatorial appointees, Bradley and Manning will be presented to the Legislature for confirmation. The bill has an emergency clause, with an operational date of July 1, which will align with the beginning of the new fiscal biennium.  

    MIL OSI USA News –

  • MIL-OSI: Ormat Technologies Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    REVENUE GROWTH AND RECORD QUARTERLY ADJUSTED EBITDA SUPPORT ONGOING STRATEGIC PORTFOLIO EXPANSION

    HIGHLIGHTS

    • TOTAL REVENUES AND NET INCOME1 IMPROVED 2.5% AND 4.6%, RESPECTIVELY
    • RECORD ADJUSTED EBITDA OF $150.3 MILLION, AN INCREASE OF 6.4% VS LAST YEAR
    • ENERGY STORAGE SEGMENT REVENUES INCREASED BY 120% DRIVING MEANINGFUL MARGIN INCREASE
    • SIGNED AN AGREEMENT TO ACQUIRE THE 20MW BLUE MOUNTAIN GEOTHERMAL POWER PLANT FROM CYRQ ENERGY
    • COMPANY REITERATES ITS 2025 FULL-YEAR GUIDANCE, REFLECTING STRONG EXECUTION AND CONFIDENCE IN THE BUSINESS OUTLOOK

    RENO, Nev., May 07, 2025 (GLOBE NEWSWIRE) — Ormat Technologies, Inc. (NYSE: ORA) (the “Company” or “Ormat”), a leading renewable energy company, today announced financial results for the first quarter ended March 31, 2025.

    KEY FINANCIAL RESULTS

      Q1 2025 Q1 2024 Change (%)
    GAAP Measures      
    Revenues ($ millions)      
                 Electricity 180.2   191.3   (5.8 %)
                 Product 31.8   24.8   27.9 %
                 Energy Storage 17.8   8.1   119.7 %
    Total Revenues 229.8   224.2   2.5 %
           
    Gross Profit 72.9   78.8   (7.5 %)
    Gross margin (%)      
    Electricity 33.5 % 39.0 %  
    Product 22.3 % 14.8 %  
    Energy Storage 30.6 % 7.5 %  
    Gross margin (%) 31.7 % 35.2 %  
    Operating income ($ millions) 50.9   52.6   (3.2 %)
    Net income attributable to the Company’s stockholders 40.4   38.6   4.6 %
    Diluted EPS ($) 0.66   0.64   3.1 %
    Non-GAAP Measures      
    Adjusted Net income attributable to the Company’s stockholders 41.5   39.6   4.8 %
    Adjusted Diluted EPS ($) 0.68   0.65   4.6 %
    Adjusted EBITDA2($ millions) 150.3   141.2   6.4 %

    1 Net Income attributable to the Company’s stockholder
    2 See reconciliation table below

    “Ormat had a strong start to 2025, achieving a 2.5% increase in revenue, a 4.6% rise in net income attributable to the Company’s stockholders, and a 6.4% increase in adjusted EBITDA. This growth was driven by improved performance in both our Product and Storage segments,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “Our Storage segment benefited from new capacity added over the last 12 months and from higher merchant prices in the PJM market. We expect continued good performance throughout 2025 as we transition our Storage segment to a more predictable portfolio designed to maximize profitability.”

    “While our Electricity segment experienced a slight year-over-year decline in the quarter due to previously disclosed curtailments in California and Nevada, the balance of our geothermal operations delivered a consistent, solid performance. We have several projects under development that we anticipate will reach commercial operation by the end of 2025, which we expect will deliver solid generation growth and further strengthen our earnings trajectory. Additionally, we believe that the potential easing of project permitting timelines combined with increased focus on geothermal exploration will further support our growth in the segment, expand our revenues, and help us achieve our long-term targets.”

    “I am pleased to announce that Ormat signed an agreement to acquire the Blue Mountain geothermal power plant from Cyrq Energy for $88 million, subject to standard working capital adjustments. The 20 MW facility, located in Humboldt County, was built using Ormat technology, features an existing 51 MW interconnection capacity and a Power Purchase Agreement (PPA) with NV Energy (NVE) that expires at the end of 2029. Following the acquisition, Ormat plans to upgrade the power plant, increasing its capacity by 3.5 MW. Additionally, subject to permit and PPA approval, Ormat intends to add a 13 MW solar facility to support the plant’s auxiliaries. The acquisition is anticipated to close towards the end of the second quarter. This acquisition underscores Ormat’s capability to strategically expand and enhance assets in the U.S., leveraging our advanced technology and expertise to optimize performance and efficiency. The planned upgrades and solar addition demonstrate our commitment to innovation and maximizing renewable energy output, contributing to a sustainable future.”

    Blachar continued, “The demand for electricity, particularly from baseload renewable sources, remains strong, and we continue to observe high PPA pricing in the Electricity Segment, and increased Resource Adequacy (RA) pricing in the Storage Segment. Regarding the recent reciprocal tariffs, we anticipate a limited short-term impact on our Storage Segment as we have already procured batteries for all projects currently under construction. Additionally, our Electricity Segment operations and project development have limited exposure to China, mitigating potential adverse effects from the tariffs. Ormat remains committed to delivering reliable and sustainable energy solutions and enhancing shareholder value. We will continue navigating this fluid regulatory environment with a focus on maintaining our growth trajectory and supporting the transition to a cleaner energy future.”

    FINANCIAL HIGHLIGHTS

    • Net income attributable to the Company’s stockholders for the first quarter was $40.4 million, an increase of 4.6% compared to last year. Diluted EPS for the first quarter was $0.66, an increase of 3.1%, compared to the prior year period. This increase is mainly driven by income tax benefits related to the storage facilities expected to commence commercial operation during 2025.
    • Adjusted net income attributable to the Company’s stockholders and Adjusted diluted EPS for the first quarter increased 4.8% and 4.6%, respectively.
    • Adjusted EBITDA for the first quarter was $150.3 million, an increase of 6.4% compared to 2024. The year-over-year increase in Adjusted EBITDA was driven by the Energy Storage segment, due to the contribution of new assets, higher merchant pricing in the East Coast markets, and a legal settlement with a battery supplier. In the Product segment, the increase was derived from a higher backlog and improved contract’ margins. The increase in the Storage and Product segments was partly offset by the reduction in Electricity segment EBITDA mainly due to curtailments in the U.S.
    • Electricity segment revenues decreased by 5.8% during the first quarter, compared to last year. The year-over-year decrease in the first quarter revenue was driven by the previously disclosed energy curtailments, mainly at our McGinness complex, maintenance on the transmission line by the local grid operator, and wildfires in California, which forced grid operators to curtail part of the supplied power.
    • Product segment revenues increased by 27.9% in the first quarter, driven largely by the timing of revenue recognition and our higher backlog. Gross margin increased from 14.8% in the first quarter 2024 to 22.3% in 2025, reflecting marked growth in revenue.
    • Product segment backlog stands at approximately $314 million as of May 7th, 2025, and includes the recently signed Engineering, Procurement, and Construction (EPC) contract for the development of the Te Mihi Stage 2 geothermal plant in New Zealand and the BOT project in Dominica.
    • Energy Storage segment revenues increased 119.7% for the first quarter compared to 2024. The improvement was driven by strong performance in the PJM merchant market, where a spike in cold weather along the East Coast contributed to elevated merchant pricing.

    BUSINESS HIGHLIGHTS:

    • In early May, the company signed an agreement to acquire the 20MW Blue Mountain geothermal power plant from Cyrq Energy for $88 million. Closing is expected by the end of the second quarter.
    • In February 2025, Ormat won a tender issued by the Israeli Electricity Authority and was awarded two 15-year tolling agreements for two energy storage facilities with a combined capacity of approximately 300MW/1200MWh. Ormat will retain a 50% equity interest.
    • Ormat commenced commercial operations of the 35MW Ijen geothermal power plant in Indonesia in February 2025, holding a 49% equity interest.
    • In January 2025, Ormat signed a 10-year Power Purchase Agreement (PPA) with Calpine Energy Solutions for up to 15MW of carbon-free geothermal capacity at favorable terms. This PPA will replace the current lower-priced PPA with Southern California Edison for Mammoth 2 in the first quarter of 2027.
    • We currently do not expect material impact from the new import tariffs on our 2025 and 2026 financial results. All batteries required for our projects arrived or were in transit to the U.S. before significant increased tariffs were imposed.

    2025 GUIDANCE

    • Total revenues of between $935 million and $975 million.
    • Electricity segment revenues of between $710 million and $725 million.
    • Product segment revenues of between $172 million and $187 million.
    • Energy Storage revenues of between $53 million and $63 million.
    • Adjusted EBITDA to be between $563 million and $593 million.
      • Adjusted EBITDA attributable to minority interest of approximately $21 million.

    The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three months ended March 31, 2025. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to high variability and complexity with respect to estimating certain forward-looking amounts. These include impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.

    DIVIDEND

    On May 7, 2025, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on June 4, 2025, to stockholders of record as of the close of business on May 21, 2025. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in each of the next three quarters.

    CONFERENCE CALL DETAILS

    Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, May 8, 2025, at 9:00 a.m. ET.

    Participants within the United States and Canada, please dial +1-800-715-9871, approximately 15 minutes prior to the scheduled start of the call. If you are calling outside of the United States and Canada, please dial +1-646-960-0440. The access code for the call is 3818407. Please request the “Ormat Technologies, Inc. call” when prompted by the conference call operator. The conference call will also be accompanied by a live webcast which will be hosted on the Investor Relations section of the Company’s website.

    A replay will be available one hour after the end of the conference call. To access the replay within the United States and Canada, please dial 1-800-770-2030. From outside of the United States and Canada, please dial +1-647-362-9199. Please use the replay access code 3818407. The webcast will also be archived on the Investor Relations section of the Company’s website.

    ABOUT ORMAT TECHNOLOGIES

    With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company, and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,400 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,538MW with a 1,248MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 290MW energy storage portfolio that is located in the U.S.

    ORMAT’S SAFE HARBOR STATEMENT

    Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues and Adjusted EBITDA, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, legal, market, industry and geopolitical developments and incentives, demand for renewable energy, and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat’s plans, objectives and expectations for future operations and are based upon its management’s current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under “Risk Factors” as described in Ormat’s most recent annual report, and in subsequent filings.

    These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Condensed Consolidated Statement of Operations
    For the Three Months Ended March 31, 2025, and 2024
     
      Three Months Ended March 31,
      2025   2024  
    Revenues: (Thousands, except per share data)
    Electricity         180,241   191,253  
    Product         31,769   24,832  
    Energy storage          17,752   8,081  
    Total revenues         229,762   224,166  
    Cost of revenues:    
    Electricity         119,833   116,730  
    Product         24,684   21,154  
    Energy storage          12,318   7,472  
    Total cost of revenues         156,835   145,356  
    Gross profit         72,927   78,810  
    Operating expenses:    
    Research and development expenses         2,542   1,564  
    Selling and marketing expenses         4,172   5,126  
    General and administrative expenses         17,909   19,537  
    Other operating income         (3,125 ) —  
    Write-off of unsuccessful exploration and storage activities         516   —  
    Operating income         50,913   52,583  
    Other income (expense):    
    Interest income         1,313   1,839  
    Interest expense, net         (34,473 ) (30,968 )
    Derivatives and foreign currency transaction gains (losses)         2,060   (1,582 )
    Income attributable to sale of tax benefits         17,571   17,476  
    Other non-operating income, net         222   26  
    Income from operations before income tax and equity in earnings of investees         37,606   39,374  
    Income tax (provision) benefit         3,795   147  
    Equity in earnings (losses) of investees         (367 ) 829  
    Net income         41,034   40,350  
    Net income attributable to noncontrolling interest         (672 ) (1,763 )
    Net income attributable to the Company’s stockholders         40,362   38,587  
    Earnings per share attributable to the Company’s stockholders:    
    Basic: 0.67   0.64  
    Diluted: 0.66   0.64  
    Weighted average number of shares used in computation of earnings per share attributable to the Company’s stockholders:    
    Basic         60,559   60,386  
    Diluted         60,840   60,536  
         
    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Condensed Consolidated Balance Sheet
    For the Period Ended March 31, 2025, and the Period Ended December 31, 2024
     
      March 31,
    2025    		   December 31,
    2024
    ASSETS                                       (In thousands)
    Current assets:      
    Cash and cash equivalents          112,704     94,395  
    Restricted cash and cash equivalents (primarily related to VIEs)         112,001     111,377  
    Receivables:      
         Trade less allowance for credit losses of $249 and $163 respectively (primarily related to VIEs)         173,590     164,050  
         Other         45,489     50,792  
    Inventories         42,107     38,092  
    Costs and estimated earnings in excess of billings on uncompleted contracts 20,940     29,243  
    Prepaid expenses and other         94,023     59,173  
              Total current assets         600,854     547,122  
    Investment in unconsolidated companies          158,618     144,585  
    Deposits and other         89,021     75,383  
    Deferred income taxes         165,983     153,936  
    Property, plant and equipment, net ($3,261,700 and $3,271,248 related to VIEs, respectively) 3,497,915     3,501,886  
    Construction-in-process ($370,762 and $251,442 related to VIEs, respectively) 844,873     755,589  
    Operating leases right of use ($13,725 and $13,989 related to VIEs, respectively)         32,232     32,114  
    Finance leases right of use (none related to VIEs)         2,935     2,841  
    Intangible assets, net         295,225     301,745  
    Goodwill         151,291     151,023  
              Total assets         5,838,947     5,666,224  
           
    LIABILITIES AND EQUITY          
    Current liabilities:      
    Accounts payable and accrued expenses         201,354     234,334  
    Commercial paper (less deferred financing costs of $22 and $23, respectively)         99,978     99,977  
    Billings in excess of costs and estimated earnings on uncompleted contracts 52,198     23,091  
    Current portion of long-term debt:      
         Limited and non-recourse (primarily related to VIEs) 70,453     70,262  
         Full recourse         184,227     161,313  
         Financing Liability         5,905     4,093  
         Operating lease liabilities         3,657     3,633  
         Finance lease liabilities         1,451     1,375  
              Total current liabilities         619,223     598,078  
    Long-term debt, net of current portion:      
    Limited and non-recourse: (primarily related to VIEs and less deferred financing costs of $8,216 and $8,849, respectively) 560,824     578,204  
    Full recourse: (less deferred financing costs of $4,782 and $4,671, respectively) 957,027     822,828  
    Convertible senior notes (less deferred financing costs of $6,138 and $6,820, respectively) 470,299     469,617  
    Financing Liability         213,810     216,476  
    Operating lease liabilities         22,722     22,523  
    Finance lease liabilities         1,544     1,529  
    Liability associated with sale of tax benefits         144,081     152,292  
    Deferred income taxes         71,479     68,616  
    Liability for unrecognized tax benefits         6,481     6,272  
    Liabilities for severance pay         11,147     10,488  
    Asset retirement obligation         131,431     129,651  
    Other long-term liabilities         33,533     29,270  
         Total liabilities         3,243,601     3,105,844  
           
    Redeemable noncontrolling interest         9,573     9,448  
           
    Equity:      
    The Company’s stockholders’ equity:      
    Common stock, par value $0.001 per share; 200,000,000 shares authorized; 60,662,626 and 60,500,580 issued and outstanding as of March 31, 2025, and December 31, 2024, respectively         61     61  
    Additional paid-in capital         1,640,910     1,635,245  
    Treasury stock, at cost (258,667 shares held as of March 31, 2025, and December 31, 2024, respectively)         (17,964 )   (17,964 )
    Retained earnings         847,607     814,518  
    Accumulated other comprehensive income (loss)         (9,410 )   (6,731 )
    Total stockholders’ equity attributable to Company’s stockholders         2,461,204     2,425,129  
    Noncontrolling interest         124,569     125,803  
    Total equity         2,585,773     2,550,932  
    Total liabilities, redeemable noncontrolling interest and equity         5,838,947     5,666,224  


    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Reconciliation of EBITDA and Adjusted EBITDA
    For the Three Months Ended March 31, 2025, and 2024

    We calculate EBITDA as net income before interest, taxes, depreciation, amortization and accretion. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and accretion, adjusted for (i) mark-to-market gains or losses from accounting for derivatives not designated as hedging instruments; (ii) stock-based compensation, (iii) merger and acquisition transaction costs; (iv) gain or loss from extinguishment of liabilities; (v) cost related to a settlement agreement; (vi) non-cash impairment charges; (vii) write-off of unsuccessful exploration and storage activities; and (viii) other unusual or non-recurring items. We adjust for these factors as they may be non-cash, unusual in nature and/or are not factors used by management for evaluating operating performance. We believe that presentation of these measures will enhance an investor’s ability to evaluate our financial and operating performance. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. Our Board of Directors and senior management use EBITDA and Adjusted EBITDA to evaluate our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

    The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2025, and 2024:

      Three Months Ended March 31,  
      2025    2024   
      (Dollars in thousands)  
    Net income 41,034     40,350    
    Adjusted for:        
    Interest expense, net (including amortization of deferred financing costs) 33,160     29,129    
    Income tax provision (benefit) (3,795 )   (147 )  
    Adjustment to investment in unconsolidated companies: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla and Ijen 3,421     3,352    
    Depreciation, amortization and accretion 69,157     61,676    
    EBITDA 142,977     134,360    
    Mark-to-market (gains) or losses of derivative instruments 939     813    
    Stock-based compensation 4,911     4,769    
    Allowance for bad debts 26     —    
    Merger and acquisition transaction costs —     1,299    
    Settlement agreement 900     —    
    Write-off of unsuccessful exploration and storage activities 516     —    
    Adjusted EBITDA 150,269     141,241    


    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Reconciliation of Adjusted Net Income attributable to the Company’s stockholders and Adjusted EPS
    For the Three Months Ended March 31, 2025, and 2024

    Adjusted Net Income attributable to the Company’s stockholders and Adjusted diluted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributable to the Company’s stockholders and Adjusted diluted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

    The following tables reconciles Net income attributable to the Company’s stockholders and Adjusted diluted EPS for the three months ended March 31, 2025, and 2024.

      Three Months Ended March 31,  
      2025   2024  
      (Dollars in millions, except per share data)  
    GAAP Net income attributable to the Company’s stockholders 40.4   38.6  
    Write-off of unsuccessful exploration and storage activities 0.41   –  
    Merger and acquisition transaction costs –   1.0  
    Allowance for bad debts 0.02   –  
    Settlement agreement 0.71   –  
    Adjusted Net income attributable to the Company’s stockholders 41.5   39.6  
    GAAP diluted EPS 0.66   0.64  
    Write-off of unsuccessful exploration and storage activities 0.01   –  
    Merger and acquisition transaction costs –   0.02  
    Allowance for bad debts 0.00   –  
    Settlement agreement 0.01   –  
    Adjusted Diluted EPS ($) 0.68   0.65  
    Ormat Technologies Contact:
    Smadar Lavi
    VP Head of IR and ESG Planning & Reporting
    775-356-9029 (ext. 65726)
    slavi@ormat.com     		 Investor Relations Agency Contact:
    Joseph Caminiti or Josh Carroll
    Alpha IR Group
    312-445-2870
    ORA@alpha-ir.com 

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