Category: Energy

MIL-OSI: TransAlta Reports Strong 2024 Results, Announces Dividend Increase and 2025 Annual Guidance

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Feb. 20, 2025 (GLOBE NEWSWIRE) — TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its financial results for the fourth quarter and year ended Dec. 31, 2024.

“Our business delivered solid results within the upper range of our guidance, driven by high availability across our generation portfolio, along with the enduring performance of our optimization and hedging strategies. During the year, we added 2.2 GW of generation to our fleet, with three contracted wind facilities achieving commercial operation in addition to the acquisition of Heartland Generation. We also returned $214 million, or $0.71 per share, of value to shareholders through dividends and share repurchases at an average price of $10.59 per share,” said John Kousinioris, President and Chief Executive Officer of TransAlta.

“Given our confidence in the future, we are pleased to announce that our Board of Directors has approved an eight per cent increase to our common share dividend, now equivalent to $0.26 per share on an annualized basis. This represents our sixth consecutive annual dividend increase, affirming our Company’s commitment to returning value to shareholders,” added Mr. Kousinioris.

“Our portfolio of generating facilities continues to perform well. In 2025, we expect to generate between $450 and $550 million of free cash flow. We maintain a balanced, prudent and disciplined approach to capital allocation and balance sheet strength. We remain focused on advancing development opportunities at our legacy thermal energy campuses, along with pursuing longer term growth options with a commitment to maximizing shareholder value. Looking to 2025 and beyond, I am optimistic about our Company’s momentum and opportunities.”

Fourth Quarter 2024 Financial Highlights

Adjusted EBITDA⁽¹⁾ of $285 million, compared to $289 million for the same period in 2023
Free Cash Flow (FCF)⁽¹⁾ of $48 million, or $0.16 per share, compared to $121 million, or $0.39 per share, for the same period in 2023
Cash flow from operating activities of $215 million, compared to $310 million from the same period in 2023
Net loss attributable to common shareholders of $65 million, or $0.22 per share, compared to $84 million, or $0.27 per share, for the same period in 2023

Full Year 2024 Financial Highlights

Achieved the upper range of both 2024 adjusted EBITDA and FCF guidance
Returned $143 million of capital to common shareholders through the buyback of 13.5 million common shares at an average price of $10.59 per share
Adjusted EBITDA of $1,253 million, compared to $1,632 million from the same period in 2023
FCF of $569 million, or $1.88 per share, compared to $890 million, or $3.22 per share, from the same period in 2023
Net earnings attributable to common shareholders of $177 million, or $0.59 per share, compared to $644 million, or $2.33 per share, from the same period in 2023
Exited 2024 with a strong financial position, with adjusted net debt to adjusted EBITDA of 3.6 times and available liquidity of $1.6 billion

Other Business Highlights and Updates

Announced an annual dividend increase of eight per cent, now equivalent to $0.26 per share on an annualized basis, which represents the sixth year of consecutive dividend growth
Provided 2025 guidance including adjusted EBITDA of $1.15 to $1.25 billion and FCF of $450 to $550 million, or $1.51 to $1.85 per share
Completed the acquisition of Heartland Generation at a purchase price of $542 million in December 2024, which added 1.7 GW to gross installed capacity
Achieved strong operational availability of 91.2 per cent in 2024, compared to 88.8 per cent in 2023
2024 Total Recordable Injury Frequency of 0.56 compared to 0.30 in 2023
Reduced scope 1 and 2 GHG emissions intensity in 2024 to 0.35 tCO₂e/MWh from 2023 levels of 0.41 tCO₂e/MWh
Achieved commercial operation at the White Rock West and East wind facilities in January and April 2024, respectively
Achieved commercial operation at the Horizon Hill facility in May 2024
Completed the Mount Keith 132kV expansion project during the first quarter of 2024

Key Business Developments

Declared Increase in Common Share Dividend
The Company’s Board of Directors has approved a $0.02 annualized increase to the common share dividend, or 8 per cent increase, and declared a dividend of $0.065 per common share to be payable on July 1, 2025 to shareholders of record at the close of business on June 1, 2025. The quarterly dividend of $0.065 per common share represents an annualized dividend of $0.26 per common share.

TransAlta Acquired Heartland Generation from Energy Capital Partners

On Dec. 4, 2024, the Company closed the acquisition of Heartland Generation Ltd. and certain affiliates (collectively, Heartland) for a purchase price of $542 million from an affiliate of Energy Capital Partners (ECP), the parent of Heartland (the Transaction). To meet the requirements of the federal Competition Bureau, the Company entered into a consent agreement with the Commissioner of Competition pursuant to which TransAlta agreed to divest Heartland’s Poplar Hill and Rainbow Lake assets (the Planned Divestitures) following closing of the Transaction. In consideration of the Planned Divestitures, TransAlta and ECP agreed to a reduction of $80 million from the original purchase price for the Transaction. ECP will be entitled to receive the proceeds from the sale of Poplar Hill and Rainbow Lake, net of certain adjustments following completion of the Planned Divestitures. TransAlta also received a further $95 million at closing of the Transaction to reflect the economic benefit of the Heartland business arising from Oct. 31, 2023 to the closing date of the Transaction, pursuant to the terms of the share purchase agreement. The net cash payment for the Transaction, before working capital adjustments, totalled $215 million, and was funded through a combination of cash on hand and draws on TransAlta’s credit facilities.

Excluding the Planned Divestitures, the Transaction adds 1.7 GW (net interest) of complementary capacity from nine facilities, including contracted cogeneration and peaking generation, legacy gas-fired thermal generation, and transmission capacity, all of which will be critical to support reliability in the Alberta electricity market.

Mothballing of Sundance Unit 6

On Nov. 4, 2024, the Company provided notice to the Alberta Electric System Operator (AESO) that Sundance Unit 6 will be mothballed on April 1, 2025, for a period of up to two years depending on market conditions. TransAlta maintains the flexibility to return the mothballed unit to service when market fundamentals improve or opportunities to contract are secured. The unit remains available and fully operational for the first quarter of 2025.

Production Tax Credit (PTC) Sale Agreements

On Feb. 22, 2024, the Company entered into 10-year transfer agreements with an AA- rated customer for the sale of approximately 80 per cent of the expected PTCs to be generated from the White Rock and the Horizon Hill wind facilities.

On June 21, 2024, the Company entered into an additional 10-year transfer agreement with an A+ rated customer for the sale of the remaining 20 per cent of the expected PTCs.

The expected average annual EBITDA⁽¹⁾ from the two agreements is approximately $78 million (US$57 million).

Normal Course Issuer Bid (NCIB)

TransAlta remains committed to enhancing shareholder returns through appropriate capital allocation such as share buybacks and its quarterly dividend. In the first quarter of 2024, the Company announced an enhanced common share repurchase program for 2024, allocating up to $150 million, and targeting up to 42 per cent of 2024 FCF guidance, to be returned to shareholders in the form of share repurchases and dividends.

On May 27, 2024, the Company announced that it had received approval from the Toronto Stock Exchange to purchase up to 14 million common shares pursuant to an NCIB during the 12-month period that commenced May 31, 2024, and terminates May 31, 2025. Any common shares purchased under the NCIB will be cancelled.

For the year ended Dec. 31, 2024, the Company purchased and cancelled a total of 13,467,400 common shares at an average price of $10.59 per common share, for a total cost of $143 million, including taxes.

Horizon Hill Wind Facility Achieves Commercial Operation

On May 21, 2024, the 202 MW Horizon Hill wind facility achieved commercial operation. The facility is located in Logan County, Oklahoma and is fully contracted to Meta Platforms Inc. for the offtake of 100 per cent of the generation.

White Rock Wind Facilities Achieve Commercial Operation

On Jan. 1, 2024, the 100 MW White Rock West wind facility achieved commercial operation. On April 22, 2024, the 202 MW White Rock East wind facility also completed commissioning. The facilities are located in Caddo County, Oklahoma and are contracted under two long-term power purchase agreements (PPAs) with Amazon Energy LLC for the offtake of 100 per cent of the generation.

Mount Keith 132kV Expansion Complete

The Mount Keith 132kV expansion project, located in Western Australia, was completed during the first quarter of 2024. The expansion was developed under the existing PPA with BHP Nickel West (BHP), which extends until Dec. 31, 2038. The expansion will facilitate the connection of additional generating capacity to the transmission network which supports BHP’s operations.

Year Ended and Fourth Quarter 2024 Highlights

$ millions, unless otherwise stated	Year Ended		Three Months Ended
$ millions, unless otherwise stated	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024		Dec. 31, 2023
Operational information
Availability (%)	91.2	88.8	87.8		86.9
Production (GWh)	22,811	22,029	6,199		5,783
Select financial information
Revenues	2,845	3,355	678		624
Adjusted EBITDA⁽¹⁾	1,253	1,632	285		289
Earnings (loss) before income taxes	319	880	(51	)	(35	)
Net earnings (loss) attributable to common shareholders	177	644	(65	)	(84	)
Cash flows
Cash flow from operating activities	796	1,464	215		310
Funds from operations⁽¹⁾	810	1,351	137		229
Free cash flow⁽¹⁾	569	890	48		121
Per share
Net earnings (loss) per share attributable to common shareholders, basic and diluted	0.59	2.33	(0.22	)	(0.27	)
Funds from operations per share^(1),(2)	2.68	4.89	0.46		0.74
FCF per share^(1),(2)	1.88	3.22	0.16		0.39
Dividends declared per common share	0.24	0.22	0.12		0.12
Weighted average number of common shares outstanding	302	276	298		308

Segmented Financial Performance

$ millions	Year Ended				Three Months Ended
$ millions	Dec. 31, 2024		Dec. 31, 2023		Dec. 31, 2024		Dec. 31, 2023
Hydro	316		459		57		56
Wind and Solar	316		257		95		82
Gas	535		801		116		141
Energy Transition	91		122		28		26
Energy Marketing	131		109		27		14
Corporate	(136	)	(116	)	(38	)	(30	)
Adjusted EBITDA	1,253		1,632		285		289
Earnings (loss) before income taxes	319		880		(51	)	(35	)

Full Year 2024 Financial Results Summary

For the year ended Dec. 31, 2024, the Company demonstrated strong financial and operational performance. The results were within the upper range of management’s expectations due to active management of the Company’s merchant portfolio and hedging strategies. During 2024, the Company settled a higher volume of hedges at prices that were significantly above the spot market in Alberta and achieved commercial operation at the White Rock and Horizon Hill wind facilities. On Dec. 4, 2024, the Company completed the acquisition of Heartland Generation, which added 1.7 GW to gross installed capacity. Refer to the Significant and Subsequent Events section of our MD&A dated Dec. 31, 2024, for details on the Heartland acquisition and the Planned Divestitures.

Availability for the year ended Dec. 31, 2024, was 91.2 per cent, compared to 88.8 per cent in 2023, an increase of 2.4 percentage points, primarily due to:

The addition of the White Rock and Horizon Hill wind facilities; and
The return to service of the Kent Hills wind facilities.

Total production for the year ended Dec. 31, 2024, was 22,811 GWh, compared to 22,029 GWh for the same period in 2023, an increase of 782 GWh, or four per cent, primarily due to:

Production from new facilities, including the White Rock West and East wind facilities commissioned in January and April 2024, respectively, the Horizon Hill wind facility commissioned in May 2024, and the Northern Goldfields solar facilities commissioned in November 2023;
Production from the facilities acquired with Heartland;
Favourable market conditions in the Ontario wholesale power market that enabled higher dispatch at the Sarnia facility in the Gas segment that resulted in higher merchant production to the Ontario grid;
The return to service of the Kent Hills wind facilities in the first quarter of 2024; and
Full-year production from the Garden Plain wind facility; partially offset by
Increased economic dispatch at the Centralia facility due to lower market prices compared to the prior year in the Energy Transition segment; and
Higher dispatch optimization in Alberta.

Adjusted EBITDA for the year ended Dec. 31, 2024, was $1,253 million, compared to $1,632 million in 2023, a decrease of $379 million, or 23.2 per cent. The major factors impacting adjusted EBITDA include:

Gas adjusted EBITDA decreased by $266 million, or 33 per cent, compared to 2023, primarily due to lower power prices in the Alberta market and resulting increase in economic dispatch, an increase in the price of carbon, higher carbon costs and fuel usage related to production and lower capacity payments, partially offset by a higher volume of favourable hedging positions settled, the utilization of emission credits to settle a portion of our 2023 GHG obligation and lower natural gas prices;
Hydro adjusted EBITDA decreased by $143 million, or 31 per cent, compared to 2023, primarily due to lower spot power prices and ancillary services prices in the Alberta market, partially offset by realized premiums above the spot power prices, higher environmental and tax attributes revenues due to higher sales of emission credits to third parties and intercompany sales to the Gas segment and higher ancillary service volumes due to increased demand by the AESO;
Energy Transition adjusted EBITDA decreased by $31 million, or 25 per cent, compared to 2023, primarily due to increased economic dispatch driven by lower market prices which negatively impacted merchant production, partially offset by lower fuel and purchased power costs; and
Corporate adjusted EBITDA decreased by $20 million, or 17 per cent, compared to 2023, primarily due to higher spending to support strategic and growth initiatives; partially offset by
Wind and Solar adjusted EBITDA increasing by $59 million, or 23 per cent, compared to 2023, primarily due to new sales of production tax credits, the return to service of the Kent Hills wind facilities, the commercial operation of the White Rock and Horizon Hill wind facilities, partially offset by lower realized power pricing in the Alberta market and higher OM&A due to the addition of new wind facilities; and
Energy Marketing adjusted EBITDA increasing by $22 million, or 20 per cent, compared to 2023, primarily due to favourable market volatility and timing of realized settled trades during the current year in comparison to the prior year and lower OM&A.

Cash flow from operating activities totalled $796 million for the year ended Dec. 31, 2024, compared to $1,464 million in the same period in 2023, a decrease of $668 million, or 46 per cent, primarily due to:

Lower gross margin due to lower revenues, excluding the effect of unrealized losses from risk management activities, partially offset by lower fuel and purchased power;
Higher OM&A due to increased spending on planning and design of an ERP system upgrade, higher spending on strategic and growth initiatives, penalties assessed by the Alberta Market Surveillance Administrator for self-reported contraventions and Heartland acquisition-related transaction and restructuring costs;
Higher current income tax expense due to the full utilization of Canadian non-capital loss carryforwards in 2023, which was partially offset by lower earnings before income tax in 2024;
Unfavourable change in non-cash operating working capital balances due to lower accounts payables and accrued liabilities, partially offset by lower collateral provided as a result of market price volatility;
Higher interest expense on debt primarily due to lower capitalized interest resulting from lower construction activity in 2024 compared to 2023; and
Lower interest income due to lower cash balances and lower interest rates.

FCF totalled $569 million for the year ended Dec. 31, 2024, compared to $890 million for the same period in 2023, a decrease of $321 million, or 36 per cent, primarily driven by:

The adjusted EBITDA items noted above;
Higher current income tax expense due to the full utilization of Canadian non-capital loss carryforwards in 2023, partially offset by lower earnings before income taxes in 2024; and
Higher net interest expense due to lower capitalized interest resulting from lower construction activity in 2024 compared to 2023, and lower interest income due to lower cash balances and interest rates in 2024 compared to prior year; partially offset by
Lower distributions paid to subsidiaries’ non-controlling interests relating to lower TA Cogen net earnings resulting from lower merchant pricing in the Alberta market and the cessation of distributions to TransAlta Renewables non-controlling interest;
Lower sustaining capital expenditures due to the receipt of a lease incentive related to the Company’s head office and lower planned major maintenance at our Alberta and Western Australian gas facilities, partially offset by higher major maintenance at our Alberta Hydro assets; and
Higher provisions accrued in the current year compared to the prior year resulting in higher FCF.

Earnings before income taxes totalled $319 million for the year ended Dec. 31, 2024, compared to $880 million in the same period in 2023, a decrease of $561 million, or 64 per cent.

Net earnings attributable to common shareholders totalled $177 million for the year ended Dec. 31, 2024, compared to $644 million in the same period in 2023, a decrease of $467 million, or 73 per cent, primarily due to:

The adjusted EBITDA items discussed above;
Higher asset impairment charges due to an increase in decommissioning and restoration provisions on retired assets, driven by a decrease in discount rates and revisions in estimated decommissioning costs and higher impairment charges related to development projects that are no longer proceeding;
Lower unrealized mark-to-market gains and lower realized gains on closed exchange positions in the Energy Marketing segment mainly driven by market volatility across North American power and natural gas markets;
Higher unrealized mark-to-market losses recorded in the Wind and Solar segment primarily related to the long-term wind energy sales at the Oklahoma facilities;
Higher interest expense due to lower capitalized interest during 2024 resulting from lower construction activity in 2024 compared to 2023;
Lower capacity payments in 2024 for Southern Cross Energy in Western Australia due to the scheduled conclusion on Dec. 31, 2023 of the demand capacity charge under the customer contract, partially offset by the commencement in March 2024 of capacity payments for the Mount Keith 132kV expansion;
Heartland acquisition-related transaction and restructuring costs;
Lower interest income due to lower cash balances and lower interest rates during 2024;
Higher spending in connection with planning and design work on a planned upgrade to the ERP system;
Lower income tax expense due to lower earnings; and
Penalties assessed by the Alberta Market Surveillance Administrator for self-reported contraventions pertaining to Hydro ancillary services provided during 2021 and 2022; partially offset by
Lower depreciation and amortization compared to 2023 related to revisions of useful lives of certain facilities in prior and current periods, partially offset by the commercial operation of new facilities during the year and the return to service of the Kent Hills wind facilities;
Higher unrealized mark-to-market gains recorded in the Energy Transition segment primarily related to favourable changes in forward prices;
A recovery related to the reversal of previously derecognized Canadian deferred tax assets; and
Higher net other operating income mainly due to Sundance A decommissioning cost reimbursement.

Fourth Quarter Financial Results Summary

Fourth quarter 2024 results were in-line with management’s expectations due to active management of the Company’s merchant portfolio and hedging strategies, despite lower power prices in the Alberta and mid-Columbia markets. The Company settled a higher volume of hedges that were significantly above average spot prices during the period. The acquisition of Heartland on Dec. 4, 2024 positively contributed to production in the Gas segment and further diversifies TransAlta’s competitive portfolio in the highly dynamic and shifting electricity landscape in Alberta by adding 1.7 GW to gross installed capacity.

Availability for the three months ended Dec. 31, 2024, was 87.8 per cent, compared to 86.9 per cent for the same period in 2023, an increase of 0.9 percentage points, primarily due to:

The addition of the White Rock and Horizon Hill wind facilities which operated with high availability;
The return to service of the Kent Hills wind facilities;
Higher availability in the Hydro segment due to lower planned outages;
Higher availability in the Energy Transition segment due to lower unplanned outages; and
Positive contribution from the addition of the gas facilities acquired with Heartland; partially offset by
Lower availability for the Gas segment due to planned outages at Sarnia, Sheerness and Keephills.

Production for the three months ended Dec. 31, 2024, was 6,199 GWh, compared to 5,783 GWh for the same period in 2023. The increase of 416 GWh, or seven per cent, was primarily due to:

Higher production in the Wind and Solar segment due to the addition of the Horizon Hill and White Rock West and East wind facilities during 2024;
Higher production in the Hydro segment compared to the same period in 2023 due to water conservation in the fourth quarter of 2023 that resulted in lower production volumes compared to the current period; partially offset by
Lower production in the Energy Transition segment due to higher dispatch optimization, which negatively affected merchant production; and
Lower production in the Gas segment driven by lower availability at the Sarnia facility due to planned outages, higher economic dispatch in Alberta and lower production from Western Australia due to lower demand, partially offset by positive contribution from the Heartland gas facilities.

Adjusted EBITDA for the three months ended Dec. 31, 2024, was $285 million, compared to $289 million in the same period of 2023, a decrease of $4 million, or one per cent. The major factors impacting adjusted EBITDA are summarized below:

Gas adjusted EBITDA decreased by $25 million, or 18 per cent, due to lower realized power prices in Alberta, an increase in the carbon price in Canada and higher OM&A driven by higher maintenance costs at the South Hedland facility, partially offset by a higher volume of favourable hedging positions settled, positive contribution from the Heartland gas facilities and lower capacity payments;
Corporate adjusted EBITDA decreased by $8 million, or 27 per cent, due to higher spending to support strategic and growth initiatives; partially offset by
Wind and Solar adjusted EBITDA increasing by $13 million, or 16 per cent, due to environmental and tax attributes revenues from the sale of PTCs from the White Rock and Horizon Hill wind facilities to taxable US counterparties, higher revenues driven by increased production from the addition of the White Rock and Horizon Hill wind facilities and the return to service of the Kent Hills wind facilities, partially offset by unfavourable merchant power prices in Alberta;
Energy Marketing adjusted EBITDA increasing by $13 million, or 93 per cent, due to favourable market volatility and the timing of realized settled trades during 2024 in comparison to the same period in 2023;
Energy Transition adjusted EBITDA increasing by $2 million, or eight per cent, compared to 2023, primarily due to lower fuel and purchased power costs, partially offset by increased economic dispatch due to lower market prices; and
Hydro adjusted EBITDA increasing by $1 million, or two per cent, due to higher merchant revenues driven by higher volumes, partially offset by lower spot power prices and lower environmental and tax attributes revenues.

FCF totalled $48 million for the three months ended Dec. 31, 2024, compared to $121 million in the same period in 2023, a decrease of $73 million, or 60 per cent, primarily due to:

The adjusted EBITDA items noted above;
Higher realized foreign exchange losses compared to realized foreign exchange gains in the comparative period;
Higher current income tax expense due to the full utilization of Canadian non-capital loss carryforwards in 2023, partially offset by a higher loss before income taxes in the current period compared to the same period in 2023;
Higher net interest expense due to lower capitalized interest as a result of capital projects being completed in the first half of 2024 and lower interest income due to lower cash balances in 2024; and
Higher dividends paid on preferred shares; partially offset by
Lower distributions paid to subsidiaries’ non-controlling interests due to lower TA Cogen net earnings;
Lower sustaining capital due to lower planned maintenance at the Alberta gas facilities, partially offset by higher planned maintenance at the Sarnia cogeneration facility and Alberta hydro facilities; and
Higher provisions accrued in the current year compared to the prior year resulting in higher FCF.

Net loss attributable to common shareholders for the three months ended Dec. 31, 2024, was $65 million, compared to a net loss of $84 million in the same period of 2023, an improvement of $19 million, or 23 per cent, primarily due to:

The adjusted EBITDA items discussed above;
Higher interest expense due to lower capitalized interest in the fourth quarter of 2024 resulting from lower capital activity compared to the same period in 2023;
Heartland acquisition-related transaction and restructuring costs in the fourth quarter of 2024;
Higher ERP upgrade costs related to planning and design work;
Penalties assessed by the Alberta Market Surveillance Administrator for self-reported contraventions pertaining to Hydro ancillary services provided during 2021 and 2022;
Higher depreciation and amortization due to the commercial operation of the White Rock and Horizon Hill wind facilities during 2024; and
Higher taxes other than income taxes, mainly consisting of property taxes due to the addition of new wind facilities during 2024; partially offset by
Higher realized and unrealized foreign exchange gains;
Lower realized gains on closed exchange positions in 2024 compared to the same period in 2023;
An income tax recovery relative to the prior period expense as a result of a higher loss before income taxes due to the above noted items; in addition to lower non-deductible expenses;
Lower net earnings attributable to non-controlling interest compared to the same period in 2023 due to lower merchant pricing in the Alberta market;
Higher net other operating income mainly due to Sundance A decommissioning cost reimbursement; and
Lower asset impairment charges related to the decommissioning and restoration provisions on retired assets driven by lower discount rates in the current period compared to the same period in 2023, partially offset by impairment charges related to development projects that are no longer proceeding.

Alberta Electricity Portfolio

For the three months and year ended Dec. 31, 2024, the Alberta electricity portfolio generated 3,150 GWh and 11,809 GWh, respectively, compared to 2,989 GWh and 11,759 GWh, respectively, in the same periods in 2023. The annual production increase of 50 GWh, or 0.4 per cent, was primarily due to:

Higher production in the Gas segment due to the addition of gas facilities from the acquisition of Heartland; and
A full-year of production from the addition of the Garden Plain wind facility, which was commissioned in August 2023; partially offset by
Higher dispatch optimization in the Gas segment; and
Lower production from the Alberta hydro facilities due to lower water resources compared to the prior year.

The fourth quarter production increase of 161 GWh, or five per cent, benefited from:

Higher production from the Gas segment due to the Heartland acquisition; and
Higher production from the Alberta hydro facilities due to significant water conservation during the fourth quarter of 2023; partially offset by
Higher economic dispatch for the Alberta gas facilities; and
Lower production in the Wind and Solar segment due to lower wind resource.

Gross margin for the Alberta portfolio for the three months and year ended Dec. 31, 2024, was $191 million and $856 million, respectively, a decrease of $24 million and $392 million, respectively, compared to the same periods in 2023. The annual decrease was primarily due to:

The impact of lower Alberta spot power prices and lower hydro ancillary services prices;
Increased dispatch optimization in the Gas segment driven by lower power prices; and
An increase in the carbon price per tonne from $65 in 2023 to $80 in 2024; partially offset by
Higher gains realized on financial hedges settled in the period;
Higher environmental and tax attributes revenues due to the increased sales of emission credits to third parties and intercompany sales from the Hydro segment to the Gas segment;
The utilization of emission credits in the Gas segment in 2024 to settle a portion of our 2023 GHG obligation;
Higher hydro ancillary services volumes due to increased demand by the AESO; and
Lower natural gas prices.

Gross margin for the three months ended Dec. 31, 2024 was impacted by:

Lower Alberta spot power prices;
Higher carbon compliance costs due to increase in the carbon price from $65 per tonne in 2023 to $80 per tonne in 2024; and
Higher purchased power due to the contractual requirement to fulfill physical power trades; partially offset by
Higher gains realized on financial hedges settled in the period.

Alberta power prices for 2024 were lower compared to 2023. The average spot power price per MWh for the three months and year ended Dec. 31, 2024, was $52 and $63, respectively, compared to $82 and $134, respectively, in the same periods in 2023. This was primarily due to:

Higher generation from the addition of increased supply of new renewables and combined-cycle gas facilities into the market compared to the prior period; and
Lower natural gas prices.

Hedged volumes for the three months and year ended Dec. 31, 2024, were 2,637 GWh and 9,080 GWh at an average price of $80 per MWh and $84 per MWh, respectively, compared to 1,824 GWh and 7,550 GWh at an average price of $90 per MWh and $110 per MWh, respectively, in 2023.

Liquidity and Financial Position

We maintain adequate available liquidity under our committed credit facilities. As at Dec. 31, 2024, we had access to $1.6 billion in liquidity, including $336 million in cash, which exceeds the funds required for committed growth, sustaining capital and productivity projects.

2025 Outlook and Financial Guidance

For 2025, management expects adjusted EBITDA to be in the range of $1.15 to $1.25 billion and FCF to be in the range of $450 to $550 million, based on the following, relative to 2024:

Higher contribution from the wind and solar portfolio due to a full-year impact of new asset additions of the White Rock and Horizon Hill wind facilities;
Contribution from assets acquired with Heartland;
Lower contributions from the legacy merchant hydro, wind and gas assets in Alberta which are expected to step down due to lower expected average power prices in Alberta given baseload gas and renewables supply additions in late 2024 and 2025;
Lower current income tax expense in 2025 compared to 2024 actual; and
Increased net interest expense in 2025 as a result of the Heartland acquisition and lower interest income earned on lower cash deposits and lower capitalized interest on growth projects.

The following table outlines our expectations regarding key financial targets and related assumptions for 2025 and should be read in conjunction with the narrative discussion that follows and the Governance and Risk Management section of the MD&A for additional information:

Measure	2025 Target	2024 Target	2024 Actual
Adjusted EBITDA	$1,150 to $1,250 million	$1,150 to $1,300 million	$1,253 million
FCF	$450 to $550 million	$450 to $600 million	$569 million
FCF per share	$1.51 to $1.85	$1.47 to $1.96	$1.88
Annual dividend per share	$0.26 annualized	$0.24 annualized	$0.24 annualized

The Company’s outlook for 2025 may be impacted by a number of factors as detailed further below.

Market	2025 Assumptions	2024 Assumptions	2024 Actual
Alberta spot ($/MWh)	$40 to $60	$75 to $95	$63
Mid-Columbia spot (US$/MWh)	US$50 to US$70	US$85 to US$95	US$76
AECO gas price ($/GJ)	$1.60 to $2.10	$2.50 to $3.00	$1.29

Alberta spot price sensitivity: a +/- $1 per MWh change in spot price is expected to have a +/-$3 million impact on adjusted EBITDA for 2025.

Other assumptions relevant to the 2025 outlook

	2025 Assumptions	2024 Assumptions	2024 Actual
Energy Marketing gross margin	$110 to $130 million	$110 to $130 million	$167 million
Sustaining capital	$145 to $165 million	$130 to $150 million	$142 million
Current income tax expense	$95 to $130 million	$95 to $130 million	$143 million
Net interest expense	$255 to $275 million	$240 to $260 million	$231 million

Hedging assumptions	Q1 2025	Q2 2025	Q3 2025	Q4 2025	2026
Hedged production (GWh)	2,117	1,758	1,942	1,845	4,713
Hedge price ($/MWh)	$72	$70	$70	$70	$75
Hedged gas volumes (GJ)	14 million	6 million	6 million	6 million	18 million
Hedge gas prices ($/GJ)	$2.98	$3.63	$3.77	$3.65	$3.67

Conference call

TransAlta will host a conference call and webcast at 9:00 a.m. MST (11:00 a.m. EST) today, Feb. 20, 2025, to discuss our fourth quarter and year end 2024 results. The call will begin with comments from John Kousinioris, President and Chief Executive Officer, and Joel Hunter, EVP Finance and Chief Financial Officer, followed by a question-and-answer period.

Fourth Quarter and Full Year 2024 Conference Call

Webcast link: https://edge.media-server.com/mmc/p/zd49obg6

To access the conference call via telephone, please register ahead of time using the call link here: https://register.vevent.com/register/BI5c12d9a2da0e4e06892f413e217f0350. Once registered, participants will have the option of 1) dialing into the call from their phone (via a personalized PIN); or 2) clicking the “Call Me” option to receive an automated call directly to their phone.

Related materials will be available on the Investor Centre section of TransAlta’s website at https://transalta.com/investors/presentations-and-events/. If you are unable to participate in the call, the replay will be accessible at https://edge.media-server.com/mmc/p/zd49obg6. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

Notes

(1)These items (adjusted EBITDA, FCF and annual average EBITDA) are not defined and have no standardized meaning under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings (loss) trends more readily in comparison with prior periods’ results. Please refer to the Non-IFRS Measures section of this earnings release for further discussion of these items, including, where applicable, reconciliations to measures calculated in accordance with IFRS.
(2)Funds from operations (FFO) per share and free cash flow (FCF) per share are calculated using the weighted average number of common shares outstanding during the period. Refer to the Additional IFRS Measures and Non-IFRS Measures section of the MD&A for the purpose of these non-‍IFRS ratios.

Non-IFRS financial measures and other specified financial measures

We use a number of financial measures to evaluate our performance and the performance of our business segments, including measures and ratios that are presented on a non-IFRS basis, as described below. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from our consolidated financial statements prepared in accordance with IFRS. We believe that these non-IFRS amounts, measures and ratios, read together with our IFRS amounts, provide readers with a better understanding of how management assesses results.

Non-IFRS amounts, measures and ratios do not have standardized meanings under IFRS. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, as an alternative to, or more meaningful than, our IFRS results.

Adjusted EBITDA

Each business segment assumes responsibility for its operating results measured by adjusted EBITDA. Adjusted EBITDA is an important metric for management that represents our core operational results. Interest, taxes, depreciation and amortization are not included, as differences in accounting treatments may distort our core business results. In addition, certain reclassifications and adjustments are made to better assess results, excluding those items that may not be reflective of ongoing business performance. This presentation may facilitate the readers’ analysis of trends.

Average Annual EBITDA

Average annual EBITDA is a forward-looking non-IFRS financial measure that is used to show the average annual EBITDA that the project is expected to generate.

Funds From Operations (FFO)

FFO is an important metric as it provides a proxy for cash generated from operating activities before changes in working capital and provides the ability to evaluate cash flow trends in comparison with results from prior periods. FFO is a non-IFRS measure. The most directly comparable IFRS measure is Cash Flow from Operations.

Free Cash Flow (FCF)

FCF is an important metric as it represents the amount of cash that is available to invest in growth initiatives, make scheduled principal repayments on debt, repay maturing debt, pay common share dividends or repurchase common shares. Changes in working capital are excluded so FFO and FCF are not distorted by changes that we consider temporary in nature, reflecting, among other things, the impact of seasonal factors and timing of receipts and payments. FCF is a non-IFRS measure. The most directly comparable IFRS measure is Cash Flow from Operations.

Non-IFRS Ratios

FFO per share, FCF per share and adjusted net debt to adjusted EBITDA are non-IFRS ratios that are presented in the MD&A. Refer to the Reconciliation of Cash Flow from Operations to FFO and FCF and Key Non-IFRS Financial Ratios sections of the MD&A for additional information.

FFO per share and FCF per share

FFO per share and FCF per share are calculated using the weighted average number of common shares outstanding during the period. FFO per share and FCF per share are non-IFRS ratios.

Reconciliation of these non-IFRS financial measures to the most comparable IFRS measure are provided below.

Reconciliation of Non-IFRS Measures on a Consolidated Basis

The following table reflects adjusted EBITDA by segment and provides reconciliation to earnings before income taxes for the three months ended Dec. 31, 2024:

Three months ended Dec. 31, 2024 $ millions	Hydro		Wind & Solar⁽¹⁾		Gas		Energy Transition		Energy Marketing	Corporate		Total		Equity accounted investments⁽¹⁾		Reclass adjustments		IFRS financials
Revenues	93		104		319		155		14	—		685		(7	)	—		678
Reclassifications and adjustments:
Unrealized mark-to-market (gain) loss	4		23		26		(8	)	19	—		64		—		(64	)	—
Realized gains (losses) on closed exchange positions	—		—		(1	)	2		1	—		2		—		(2	)	—
Decrease in finance lease receivable	—		1		5		—		—	—		6		—		(6	)	—
Finance lease income	—		2		3		—		—	—		5		—		(5	)	—
Revenues from Planned Divestitures	—		—		(1	)	—		—	—		(1	)	—		1		—
Brazeau penalties	(20	)	—		—		—		—	—		(20	)	—		20		—
Unrealized foreign exchange gain on commodity	—		—		(1	)	—		—	—		(1	)	—		1		—
Adjusted revenues	77		130		350		149		34	—		740		(7	)	(55	)	678
Fuel and purchased power	3		8		136		102		—	—		249		—		—		249
Reclassifications and adjustments:
Fuel and purchased power related to Planned Divestitures	—		—		(1	)	—		—	—		(1	)	—		1		—
Australian interest income	—		—		(1	)	—		—	—		(1	)	—		1		—
Adjusted fuel and purchased power	3		8		134		102		—	—		247		—		2		249
Carbon compliance	—		—		39		—		—	—		39		—		—		39
Gross margin	74		122		177		47		34	—		454		(7	)	(57	)	390
OM&A	47		27		67		19		7	68		235		(1	)	—		234
Reclassifications and adjustments:
Brazeau penalties	(31	)	—		—		—		—	—		(31	)	—		31		—
ERP integration costs	—		—		—		—		—	(14	)	(14	)	—		14		—
Acquisition-related transaction and restructuring costs	—		—		—		—		—	(16	)	(16	)	—		16		—
Adjusted OM&A	16		27		67		19		7	38		174		(1	)	61		234
Taxes, other than income taxes	1		3		4		—		—	—		8		1		—		9
Net other operating income	—		(3	)	(10	)	(9	)	—	—		(22	)	—		—		(22	)
Reclassifications and adjustments:
Sundance A decommissioning cost reimbursement	—		—		—		9		—	—		9		—		(9	)	—
Adjusted net other operating income	—		(3	)	(10	)	—		—	—		(13	)	—		(9	)	(22	)
Adjusted EBITDA⁽²⁾	57		95		116		28		27	(38	)	285
Equity income																		2
Finance lease income																		5
Depreciation and amortization																		(143	)
Asset impairment charges																		(20	)
Interest income																		11
Interest expense																		(92	)
Foreign exchange gain																		17
Loss before income taxes																		(51	)

(1) The Skookumchuck wind facility has been included on a proportionate basis in the Wind and Solar segment.
(2) Adjusted EBITDA is not defined and has no standardized meaning under IFRS. Refer to the Non-IFRS financial measures and other specified financial measures section in this earnings release and may not be comparable to similar measures presented by other issuers.

The following table reflects adjusted EBITDA by segment and provides reconciliation to loss before income taxes for the three months ended Dec. 31, 2023:

Three months ended Dec. 31, 2023 $ millions	Hydro		Wind & Solar⁽¹⁾		Gas		Energy Transition	Energy Marketing		Corporate		Total		Equity accounted investments⁽¹⁾		Reclass adjustments		IFRS financials
Revenues	77		94		246		175	39		—		631		(7	)	—		624
Reclassifications and adjustments:
Unrealized mark-to-market (gain) loss	(2	)	20		53		7	(19	)	—		59		—		(59	)	—
Realized gain on closed exchange positions	—		—		23		—	4		—		27		—		(27	)	—
Decrease in finance lease receivable	—		—		15		—	—		—		15		—		(15	)	—
Finance lease income	—		—		2		—	—		—		2		—		(2	)	—
Unrealized foreign exchange gain on commodity	—		—		1		—	—		—		1		—		(1	)	—
Adjusted revenues	75		114		340		182	24		—		735		(7	)	(104	)	624
Fuel and purchased power	5		8		127		138	—		—		278		—		—		278
Reclassifications and adjustments:
Australian interest income	—		—		(1	)	—	—		—		(1	)	—		1		—
Adjusted fuel and purchased power	5		8		126		138	—		—		277		—		1		278
Carbon compliance	—		—		27		—	—		—		27		—		—		27
Gross margin	70		106		187		44	24		—		431		(7	)	(105	)	319
OM&A	13		25		56		18	10		29		151		(1	)	—		150
Taxes, other than income taxes	1		1		—		—	—		1		3		—		—		3
Net other operating income	—		(3	)	(10	)	—	—		—		(13	)	—		—		(13	)
Adjusted net other operating income	—		(2	)	(10	)	—	—		—		(12	)	—		(1	)	(13	)
Adjusted EBITDA⁽²⁾	56		82		141		26	14		(30	)	289
Equity income																		3
Finance lease income																		2
Depreciation and amortization																		(132	)
Asset impairment charges																		(26	)
Interest income																		12
Interest expense																		(66	)
Foreign exchange loss																		(7	)
Loss before income taxes																		(35	)

The following table reflects adjusted EBITDA by segment and provides reconciliation to earnings before income taxes for the year ended Dec. 31, 2024:

Year ended Dec. 31, 2024 $ millions	Hydro		Wind & Solar⁽¹⁾		Gas		Energy Transition		Energy Marketing		Corporate		Total		Equity accounted investments⁽¹⁾		Reclass adjustments		IFRS financials
Revenues	409		357		1,350		616		168		(34	)	2,866		(21	)	—		2,845
Reclassifications and adjustments:
Unrealized mark-to-market (gain) loss	1		84		(60	)	(36	)	14		—		3		—		(3	)	—
Realized gain (loss) on closed exchange positions	—		—		7		2		(15	)	—		(6	)	—		6		—
Decrease in finance lease receivable	—		2		19		—		—		—		21		—		(21	)	—
Finance lease income	—		6		8		—		—		—		14		—		(14	)	—
Revenues from Planned Divestitures	—		—		(1	)	—		—		—		(1	)	—		1		—
Brazeau penalty	(20	)	—		—		—		—		—		(20	)	—		20		—
Unrealized foreign exchange loss on commodity	—		—		(2	)	—		—		—		(2	)	—		2		—
Adjusted revenues	390		449		1,321		582		167		(34	)	2,875		(21	)	(9	)	2,845
Fuel and purchased power	16		30		475		418		—		—		939		—		—		939
Reclassifications and adjustments:
Fuel and purchased power related to Planned Divestitures	—		—		(1	)	—		—		—		(1	)	—		1		—
Australian interest income	—		—		(4	)	—		—		—		(4	)	—		4		—
Adjusted fuel and purchased power	16		30		470		418		—		—		934		—		5		939
Carbon compliance	—		—		145		1		—		(34	)	112		—		—		112
Gross margin	374		419		706		163		167		—		1,829		(21	)	(14	)	1,794
OM&A	86		97		198		69		36		173		659		(4	)	—		655
Reclassifications and adjustments:
Brazeau penalty	(31	)	—		—		—		—		—		(31	)	—		31		—
ERP implementation costs	—		—		—		—		—		(14	)	(14	)	—		14		—
Acquisition-related transaction and restructuring costs	—		—		—		—		—		(24	)	(24	)			24		—
Adjusted OM&A	55		97		198		69		36		135		590		(4	)	69		655
Taxes, other than income taxes	3		16		13		3		—		1		36		—		—		36
Net other operating income	—		(10	)	(40	)	(9	)	—		—		(59	)	—		—		(59	)
Reclassifications and adjustments:
Sundance A decommissioning cost reimbursement	—		—		—		9		—		—		9		—		(9	)	—
Adjusted net other operating income	—		(10	)	(40	)	—		—		—		(50	)	—		(9	)	(59	)
Adjusted EBITDA⁽²⁾	316		316		535		91		131		(136	)	1,253
Equity income																			5
Finance lease income																			14
Depreciation and amortization																			(531	)
Asset impairment charges																			(46	)
Interest income																			30
Interest expense																			(324	)
Foreign exchange gain																			5
Gain on sale of assets and other																			4
Earnings before income taxes																			319

The following table reflects adjusted EBITDA by segment and provides reconciliation to earnings before income taxes for the year ended Dec. 31, 2023:

Year ended Dec. 31, 2023 $ millions	Hydro		Wind & Solar⁽¹⁾		Gas		Energy Transition		Energy Marketing		Corporate		Total		Equity accounted investments⁽¹⁾		Reclass adjustments		IFRS financials
Revenues	533		357		1,514		751		220		1		3,376		(21	)	—		3,355
Reclassifications and adjustments:
Unrealized mark-to-market loss	(4	)	16		(67	)	(5	)	23		—		(37	)	—		37		—
Realized gain (loss) on closed exchange positions	—		—		10		—		(91	)	—		(81	)	—		81		—
Decrease in finance lease receivable	—		—		55		—		—		—		55		—		(55	)	—
Finance lease income	—		—		12		—		—		—		12		—		(12	)	—
Unrealized foreign exchange gain on commodity	—		—		1		—		—		—		1		—		(1	)	—
Adjusted revenues	529		373		1,525		746		152		1		3,326		(21	)	50		3,355
Fuel and purchased power	19		30		453		557		—		1		1,060		—		—		1,060
Reclassifications and adjustments:
Australian interest income	—		—		(4	)	—		—		—		(4	)	—		4		—
Adjusted fuel and purchased power	19		30		449		557		—		1		1,056		—		4		1,060
Carbon compliance	—		—		112		—		—		—		112		—		—		112
Gross margin	510		343		964		189		152		—		2,158		(21	)	46		2,183
OM&A	48		80		192		64		43		115		542		(3	)	—		539
Taxes, other than income taxes	3		12		11		3		—		1		30		(1	)	—		29
Net other operating income	—		(7	)	(40	)	—		—		—		(47	)			—		(47	)
Reclassifications and adjustments:
Insurance recovery	—		1		—		—		—		—		1		—		(1	)	—
Adjusted net other operating income	—		(6	)	(40	)	—		—		—		(46	)	—		(1	)	(47	)
Adjusted EBITDA⁽²⁾	459		257		801		122		109		(116	)	1,632
Equity income																			4
Finance lease income																			12
Depreciation and amortization																			(621	)
Asset impairment reversals																			48
Interest income																			59
Interest expense																			(281	)
Foreign exchange gain																			(7	)
Gain on sale of assets and other																			4
Earnings before income taxes																			880

Reconciliation of cash flow from operations to FFO and FCF

The table below reconciles our cash flow from operating activities to our FFO and FCF:

	Three Months Ended				Year Ended
$ millions, unless otherwise stated	Dec. 31, 2024		Dec. 31, 2023		Dec. 31, 2024		Dec. 31, 2023
Cash flow from operating activities⁽¹⁾	215		310		796		1,464
Change in non-cash operating working capital balances	(97	)	(135	)	(38	)	(124	)
Cash flow from operations before changes in working capital	118		175		758		1,340
Adjustments
Share of adjusted FFO from joint venture⁽¹⁾	4		3		8		8
Decrease in finance lease receivable	6		15		21		55
Clean energy transition provisions and adjustments⁽²⁾	—		4		—		11
Sundance A decommissioning cost reimbursement	(9	)	—		(9	)	—
Realized gain (loss) on closed exchanged positions	2		27		(6	)	(81	)
Acquisition-related transaction and restructuring costs	11		—		19		—
Other⁽³⁾	5		5		19		18
FFO⁽⁴⁾	137		229		810		1,351
Deduct:
Sustaining capital⁽¹⁾	(67	)	(74	)	(142	)	(174	)
Productivity capital	(1	)	(1	)	(1	)	(3	)
Dividends paid on preferred shares	(13	)	(12	)	(52	)	(51	)
Distributions paid to subsidiaries’ non-controlling interests	(6	)	(19	)	(40	)	(223	)
Principal payments on lease liabilities	(3	)	(2	)	(6	)	(10	)
Other	1		—		—		—
FCF⁽⁴⁾	48		121		569		890
Weighted average number of common shares outstanding in the period	298		308		302		276
FFO per share⁽⁴⁾	0.46		0.74		2.68		4.89
FCF per share⁽⁴⁾	0.16		0.39		1.88		3.22

(1)  Includes our share of amounts for the Skookumchuck wind facility, an equity-accounted joint venture.
(2)  2023 includes amounts related to onerous contracts recognized in 2021 and a voluntary contribution to the US Defined Benefit Pension Plan for the Centralia thermal facility.
(3)  Other consists of production tax credits, which is a reduction to tax equity debt, less distributions from an equity-accounted joint venture.
(4)  These items are not defined and have no standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. Refer to the Non-IFRS Measures section in this earnings release .

The table below provides a reconciliation of our adjusted EBITDA to our FFO and FCF:

	Three Months Ended				Year Ended
$ millions, unless otherwise stated	Dec. 31, 2024		Dec. 31, 2023		Dec. 31, 2024		Dec. 31, 2023
Adjusted EBITDA⁽¹⁾⁽⁴⁾	285		289		1,253		1,632
Provisions	2		(1	)	10		(1	)
Net interest expense⁽²⁾	(64	)	(41	)	(231	)	(164	)
Current income tax recovery (expense)	(20	)	5		(143	)	(50	)
Realized foreign exchange gain (loss)	(20	)	9		(27	)	(4	)
Decommissioning and restoration costs settled	(12	)	(15	)	(41	)	(37	)
Other non-cash items	(34	)	(17	)	(11	)	(25	)
FFO⁽³⁾⁽⁴⁾	137		229		810		1,351
Deduct:
Sustaining capital⁽⁴⁾	(67	)	(74	)	(142	)	(174	)
Productivity capital	(1	)	(1	)	(1	)	(3	)
Dividends paid on preferred shares	(13	)	(12	)	(52	)	(51	)
Distributions paid to subsidiaries’ non-controlling interests	(6	)	(19	)	(40	)	(223	)
Principal payments on lease liabilities	(3	)	(2	)	(6	)	(10	)
Other	1		—		—		—
FCF⁽⁴⁾	48		121		569		890

(1)  Adjusted EBITDA is defined in the Additional IFRS Measures and Non-IFRS Measures of this earnings release and reconciled to earnings (loss) before income taxes above.
(2) Net interest expense includes interest expense less interest income and excludes non-cash items like financing amortization and accretion.
(3)  These items are not defined and have no standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. FFO and FCF are defined in the Non-IFRS financial measures and other specified financial measures section of in this earnings release and reconciled to cash flow from operating activities above.
(4)  Includes our share of amounts for Skookumchuck wind facility, an equity-accounted joint venture.

TransAlta is in the process of filing its Annual Information Form, Audited Consolidated Financial Statements and accompanying notes, as well as the associated Management’s Discussion & Analysis (MD&A). These documents will be available today on the Investors section of TransAlta’s website at www.transalta.com or through SEDAR at www.sedarplus.ca.

TransAlta will also be filing its Form 40-F with the US Securities and Exchange Commission. The form will be available through their website at www.sec.gov. Paper copies of all documents are available to shareholders free of charge upon request.

About TransAlta Corporation:

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Western Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 70 per cent reduction in GHG emissions or 22.7 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.

For more information about TransAlta, visit our web site at transalta.com.

Cautionary Statement Regarding Forward-Looking Information

This news release includes “forward-looking information,” within the meaning of applicable Canadian securities laws, and “forward-looking statements,” within the meaning of applicable United States securities laws, including the Private Securities Litigation Reform Act of 1995 (collectively referred to herein as “forward-looking statements”). Forward-looking statements are not facts, but only predictions and generally can be identified by the use of statements that include phrases such as “may”, “will”, “can”, “could”, “would”, “shall”, “believe”, “expect”, “estimate”, “anticipate”, “intend”, “plan”, “forecast”, “foresee”, “potential”, “enable”, “continue” or other comparable terminology. These statements are not guarantees of our future performance, events or results and are subject to risks, uncertainties and other important factors that could cause our actual performance, events or results to be materially different from those set out in or implied by the forward-looking statements. In particular, this news release contains forward-looking statements about the following, among other things: the strategic objectives of the Company and that the execution of the Company’s strategy will realize value for shareholders; our capital allocation and financing strategy; our sustainability goals and targets, including those in our 2024 Sustainability Report; our 2025 Outlook; our financial and operational performance, including our hedge position; optimizing and diversifying our existing assets; the increasingly contracted nature of our fleet; expectations about strategies for growth and expansion, including opportunities for Centralia redevelopment, and data centre opportunities; expected costs and schedules for planned projects; expected regulatory processes and outcomes, including in relation to the Alberta restructured energy market; the power generation industry and the supply and demand of electricity; the cyclicality of our business; expected outcomes with respect to legal proceedings; the expected impact of future tax and accounting changes; and expected industry, market and economic conditions.

The forward-looking statements contained in this news release are based on many assumptions including, but not limited to, the following: no significant changes to applicable laws and regulations; no unexpected delays in obtaining required regulatory approvals; no material adverse impacts to investment and credit markets; no significant changes to power price and hedging assumptions; no significant changes to gas commodity price assumptions and transport costs; no significant changes to interest rates; no significant changes to the demand and growth of renewables generation; no significant changes to the integrity and reliability of our facilities; no significant changes to the Company’s debt and credit ratings; no unforeseen changes to economic and market conditions; and no significant event occurring outside the ordinary course of business.

These assumptions are based on information currently available to TransAlta, including information obtained from third-party sources. Actual results may differ materially from those predicted. Factors that may adversely impact what is expressed or implied by forward-looking statements contained in this news release include, but are not limited to: fluctuations in power prices; changes in supply and demand for electricity; our ability to contract our electricity generation for prices that will provide expected returns; our ability to replace contracts as they expire; risks associated with development projects and acquisitions; any difficulty raising needed capital in the future on reasonable terms or at all; our ability to achieve our targets relating to ESG; long-term commitments on gas transportation capacity that may not be fully utilized over time; changes to the legislative, regulatory and political environments; environmental requirements and changes in, or liabilities under, these requirements; operational risks involving our facilities, including unplanned outages and equipment failure; disruptions in the transmission and distribution of electricity; reductions in production; impairments and/or writedowns of assets; adverse impacts on our information technology systems and our internal control systems, including increased cybersecurity threats; commodity risk management and energy trading risks; reduced labour availability and ability to continue to staff our operations and facilities; disruptions to our supply chains; climate-change related risks; reductions to our generating units’ relative efficiency or capacity factors; general economic risks, including deterioration of equity and debt markets, increasing interest rates or rising inflation; general domestic and international economic and political developments, including potential trade tariffs; industry risk and competition; counterparty credit risk; inadequacy or unavailability of insurance coverage; increases in the Company’s income taxes and any risk of reassessments; legal, regulatory and contractual disputes and proceedings involving the Company; reliance on key personnel; and labour relations matters.

The foregoing risk factors, among others, are described in further detail under the heading “Governance and Risk Management” in the MD&A, which section is incorporated by reference herein.

Readers are urged to consider these factors carefully when evaluating the forward-looking statements and are cautioned not to place undue reliance on them. The forward-looking statements included in this news release are made only as of the date hereof and we do not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise, except as required by applicable laws. The purpose of the financial outlooks contained herein is to give the reader information about management’s current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes.

Note: All financial figures are in Canadian dollars unless otherwise indicated.

For more information:

*Investor Inquiries:*	*Media Inquiries:*
Phone: 1-800-387-3598 in Canada and US	Phone: 1-855-255-9184
Email: investor_relations@transalta.com	Email: ta_media_relations@transalta.com

The MIL Network –

February 21, 2025

MIL-OSI Europe: Statement by President von der Leyen at the joint press conference with Barbadian Prime Minister Mottley

Source: European Commission

European Commission Statement Bridgetown, 19 Feb 2025 Prime Minister, dear Mia,
Thank you for hosting me here in Barbados. It is indeed the first time that I am here, it is fantastic. It is a big pleasure to join you and our partners at this CARICOM Summit. I have crossed the Atlantic to share with you how much Europe values its partnership with the Caribbean. We live in an unpredictable world. In these times, it is more important than ever to stick together; to stand up for our values; and to deepen ties with friends.

Despite being an ocean apart, Europe and the Caribbean are very close at heart. We are strong and vibrant democracies; we are convinced that it is of big importance to defend multilateralism and the rule of law; we believe in freedom and the right of people to choose their own future. This is why you have been standing with Ukraine since the very beginning of the war. Ukraine is a future member of the European family. So supporting them means also supporting us. And it is important to also call for a just peace not only in Ukraine but also in the Middle East, in Sudan and Haiti, which is what you have always done.

While sharing our values, we also face some of the same challenges. When devastating hurricanes sweep through your islands, like hurricane Beryl last July, Europe wants to be by your side: We provide emergency support to those who have lost everything, we are rebuilding together. Actually, we are currently supporting Grenada to rebuild Carriacou and Petite Martinique with the goal of making the islands 100% powered by renewable energy. And we have just discussed how to strengthen our cooperation in resilience and preparedness, so to work closer together to have a foresight when these natural disasters and extreme weather events, which are often related to climate change, hit.

We know that the fight against climate change is truly existential. In the face of hardship, the Caribbean are showing incredible leadership. Especially you, my dear Mia. You have amplified the voice of small island nations on the global stage, for the benefit of all humanity. This was key, for example, to the launch of the Loss and Damage Fund together at COP29. It amounts to almost USD 750 million in pledge, half of it covered by Europe and its Member States. Because climate financing is another very important challenge. Europe is the leading provider. We contribute well beyond our fair share of the USD 100 billion annual target.

But we know that given the scale of the transition and its urgency, we need new and innovative financing tools – in addition – like green bonds and carbon and nature credits, for example, which is what we are working on. And we need to bring the private sector fully on board, with a smarter use of private and public funds. With your Bridgetown Initiative, dear Mia, you are leading the way to making green and development financing fairer, more accessible and more affordable so that the climate targets can be met.

Another initiative you mentioned is renewable energy. At COP28 we agreed on global targets for renewables and energy efficiency. We want to triple renewable energy and double energy efficiency by 2030. To implement these goals, we created the Global Energy Transition Forum, because only what gets measured gets done, and we really need that the goals on paper are achieved on the ground. And this year, Barbados joined the Global Energy Transition Forum, I am very glad about that, that is great. It will allow us to deliver concrete projects on the ground and unlock more investment for the transition. And I hope that many Caribbean nations will follow your example.

This brings me to our bilateral work. The starting point for us is our investment programme Global Gateway. That is the investment programme abroad for partners. It is already at work – here in Barbados and across the Caribbean. Together with Hydrogen de France we have just signed the first green hydrogen storage project in Barbados. What is important is that renewable energy is homegrown, and therefore it is cheaper: It gives you energy independence and it gives you energy security, and it is the energy of the future, because it is clean energy.

We are, as you said, also working on the health sector. I think both of us have learnt our bitter lessons during COVID-19 and how vulnerable we are. And therefore, we support your pharmaceutical sovereignty. It means vaccines and medication produced in the Caribbean, for the Caribbean, but also to be a hub for the rest of the world. We have just signed a biomedical partnership between BioMedX, a European biotech company, and Barbados. And tomorrow, we will launch ‘PharmaNext’, a project that really boosts innovation and investments across the Atlantic. Because it also aligns the regulatory environment that is so important to move forward.

We have other great projects in the Caribbean. One has really caught my attention: In Barbados and Grenada, we are turning the sargassum threat into an opportunity, and I think it is really smart. We are working to transform this harmful alga into fertiliser, biomass and even cosmetics.This project has, and this is phenomenal, the potential to leverage almost EUR 400 million in investments. And actually, we are bringing thus a harmful alga, fighting a harmful alga but turning it into an opportunity that brings revenue. So it could not be better. Finally, we are bringing the Caribbean closer together and closer to us – with digital connectivity. Tomorrow, we will commit with Spain to deliver high-speed internet via satellite to even the most remote communities here. So the last kilometre that is always so difficult, we are going to manage that now via satellite.

To me, the spirit of Global Gateway is needed more than ever. We are investing in value chains, skills and jobs. We are sharing knowledge and technology for the benefit of both sides. We are looking into a long-term and trusted partnership. And we are convinced that a win-win situation is the most beneficial for our people and our economy.

Thank you very much again for having me here.

MIL OSI Europe News –

February 21, 2025
MIL-OSI: Gofaizen & Sherle Launches Full-Cycle CASP Licensing Service in Lithuania, Poland and Spain
Source: GlobeNewswire (MIL-OSI)

TALLINN, Estonia, Feb. 20, 2025 (GLOBE NEWSWIRE) — Gofaizen & Sherle, a leading fintech and crypto consultancy, has introduced a full-cycle service for obtaining a CASP license under MICA regulation in Lithuania, Poland and Spain. This new service is designed to simplify the licensing process, ensuring companies achieve compliance efficiently and on time.

Comprehensive Support for a Seamless Licensing Process

Gofaizen & Sherle provides a full range of services to ensure a smooth licensing process:
- Business analysis and strategy – Assessment of regulatory requirements in line with the company’s business model.
- Documentation management – Compilation, preparation, and verification of all required documents.
- Staffing support – Evaluation of personnel qualifications and assistance in recruiting necessary specialists.
- Regulatory communication – Coordination with the Bank of Lithuania to facilitate the application process.
“The process of obtaining a CASP license might take around 6 months in average, covering key stages such as document preparation, submission, potential hiring of required staff, and regulatory review. For example, in Lithuania, VASPs already operating in the country need to start the CASP license application as soon as possible. If they do not obtain the license by May 31, they may be required to suspend their activities from July 1st and until it is approved. However, if you are launching a new crypto project, you simply need to apply for a CASP license. Once it is approved, you can start operating in Lithuania’s crypto sector,” explained Maxim Gasanbekov, Head of Sales and Associated Partner at Gofaizen & Sherle.

About Gofaizen & Sherle
Gofaizen & Sherle is a leading fintech and crypto consultancy firm based in Tallinn, Estonia. The company specializes in regulatory compliance, licensing, and business structuring, supporting crypto-asset service providers (CASPs) in navigating the evolving European regulatory landscape.
For further information on CASP license in Lithuania, Poland and Spain, and expert consultation, please contact:
info@gofaizen-sherle.com

Media Contact:
Gofaizen & Sherle
pr@gofaizen-sherle.com
https://gofaizen-sherle.com/

Disclaimer: This content is provided by Gofaizen & Sherle. The statements, views, and opinions expressed in this content are solely those of the sponsor and do not necessarily reflect the views of this media platform. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. This content is for informational purposes only and should not be considered as financial, investment, or trading advice. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ce443d23-08f2-4b5e-b791-1193ebd18db7

The MIL Network –
February 21, 2025
MIL-OSI: Black Gold Announces Commencement of Drilling in the Illinois Basin

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, B.C., Feb. 20, 2025 (GLOBE NEWSWIRE) — BGX – Black Gold Exploration Corp. (the “Company” or “BGX) (CSE: BGX) (FRE: P30) is pleased to announce that drilling has commenced on the Fritz 2-30 oil and gas well (the “Well”) in Clay County, Indiana. Earlier this month, BGX acquired a 10% working interest in the Well and an option to participate in any offset developmental wells in a 210-acre area of mutual interest from the operator, Adler Energy, LLC (the “Operator”).

This prospect offsets the Fritz 1 well, which was drilled approximately 17 years ago and discovered both oil and gas pay horizons, but never produced due to a variety of factors, including a drop in oil prices at the time. The Well is in a known productive oil zone known as the Terra Haute Reef Bank, in Southwestern Indiana.

“We believe that the drilling in this region is the Company’s most significant short-term milestone to date and we are delighted to have the opportunity to participate in the Well, which not only gives us the potential for early cash flow but is also aligned with our longer-term plan to expand our footprint in the Illinois Basin,” commented Francisco Gulisano, Chief Executive Officer of BGX.

The Illinois Basin has a history of producing 10 to 12 million barrels of oil annually.¹ The Operator has completed an 8 square mile 3D seismic evaluation of the area, including the Fritz 2-30, showing both shallow and deeper stacked pay horizons. The Well plans to test a minimum of ten potential oil pay zones. Deep seated fractures clearly visible on 3D seismic are demonstrating migratory pathways for oil into multiple zones with high porosity, including the Devonian, Trenton, St. Peter Sand, Black River and the Knox. These zones all show over 100 feet of closure, giving room for large reservoirs of oil.

“Based on the 3D seismic and other data we have complied, our experienced technical team could not be more excited about the Fritz 2-30 well and we are very happy to be working with BGX in discovering what we believe is tremendous untapped value,” commented John Miller, President of Adler Energy.

“Given the history of the Fritz wells, we are looking to take advantage of overlooked opportunities to hopefully not only jump start our cash flows but also unlock value in one of the oldest and most productive oil basins in North American history,” concluded Mr. Gulisano.

On behalf of the Company,
Francisco Gulisano
236-266-5174
Chief Executive Officer

About BGX

BGX – Black Gold Exploration Corp. (CSE: BGX) (FRE: P30) is an oil and gas exploration company dedicated to creating shareholder value through the acquisition, exploration and development of oil and gas projects. BGX currently has assets in Argentina and the United States of America. For more information visit https://www.bgxcorp.com.

Forward-Looking Statements

The information in this news release includes certain information and statements about management’s view of future events, expectations, plans, and prospects that constitute forward-looking statements. These statements are based upon assumptions that are subject to risks and uncertainties. Forward- looking statements in this news release include, but are not limited to statements respecting: (i) drilling of the Well and the purpose thereof; (ii) the potential for early cash flow; (iii) the Company’s plan to expand its footprint in the Illinois Basin and (iv) the Company’s hope to unlock value in one of the oldest and most productive oil basins in North American history. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements, or otherwise. For a comprehensive overview of all risks that may impact the Company, please see the Company’s continuous disclosure documents filed on SEDAR+.

¹ https://www.usgs.gov/publications/new-albany-shale-illinois-emerging-play-or-prolific-source

Neither the CSE nor the CSE’s Regulation Services Provider (as that term is defined in the policies of the CSE) accept responsibility for the accuracy of this release.

The MIL Network –

February 21, 2025

MIL-OSI: Targa Resources Corp. Reports Record Fourth Quarter and Full Year 2024 Financial Results, Provides Growth Outlook for 2025 and Announces Refinancing of Badlands Preferred Equity

Source: GlobeNewswire (MIL-OSI)

HOUSTON, Feb. 20, 2025 (GLOBE NEWSWIRE) — Targa Resources Corp. (NYSE: TRGP) (“TRGP,” the “Company” or “Targa”) today reported fourth quarter and full year 2024 results.

Fourth quarter 2024 net income attributable to Targa Resources Corp. was $351.0 million compared to $299.6 million for the fourth quarter of 2023. For the full year 2024, net income attributable to Targa Resources Corp. was $1,312.0 million compared to $1,345.9 million for 2023. The Company reported adjusted earnings before interest, income taxes, depreciation and amortization, and other non-cash items (“adjusted EBITDA”)⁽¹⁾ of $1,122.2 million for the fourth quarter of 2024 compared to $959.9 million for the fourth quarter of 2023. For the full year 2024, the Company reported adjusted EBITDA of $4,142.3 million compared to $3,530.0 million for 2023.

Highlights

Record full year 2024 adjusted EBITDA of $4.1 billion, a 17% increase over 2023
Record full year 2024 Permian, NGL transportation, fractionation, and LPG export volumes
Record full year 2024 common share repurchases of $755 million
Record fourth quarter 2024 adjusted EBITDA of $1.1 billion
Record fourth quarter 2024 Permian, NGL transportation, fractionation, and LPG export volumes
Completed its new 275 million cubic feet per day (“MMcf/d”) Greenwood II plant in Permian Midland and its new 120 thousand barrels per day (“MBbl/d”) Train 10 fractionator in Mont Belvieu
Recently commenced operations of its new 275 MMcf/d Bull Moose plant and 800 MMcf/d front-end treater in Permian Delaware
Announced a new intra-Delaware Basin expansion of Targa’s Grand Prix NGL Pipeline (“Delaware Express”)
Announced a new 150 MBbl/d fractionator in Mont Belvieu (“Train 12”)
Announced a new expansion of LPG export capabilities at Targa’s Galena Park Marine Terminal (“GPMT LPG Export Expansion”) which will increase capacity to approximately 19 million barrels per month (“MMBbl/month”)
Estimates 2025 net growth capital expenditures of $2.6 billion to $2.8 billion
Announced the refinancing of preferred equity in Targa Badlands LLC for $1.8 billion
Estimates record full year 2025 adjusted EBITDA between $4.65 billion and $4.85 billion, a 15% increase over 2024⁽²⁾

On January 16, 2025, the Company declared a quarterly cash dividend of $0.75 per common share, or $3.00 per common share on an annualized basis, for the fourth quarter of 2024. Total cash dividends of approximately $164 million were paid on February 14, 2025 on all outstanding shares of common stock to holders of record as of the close of business on January 31, 2025. Targa intends to recommend an annual common dividend of $4.00 per share for 2025 beginning with the first quarter payment in May of 2025.

Targa repurchased 610,683 shares of its common stock during the fourth quarter of 2024 at a weighted average per share price of $176.86 for a total net cost of $108.0 million. For the year ended December 31, 2024, Targa repurchased 5,933,050 shares of its common stock at a weighted average price of $127.20 for a total net cost of $754.7 million. As of December 31, 2024, there was $1,015.4 million remaining under the Company’s Share Repurchase Programs.

Fourth Quarter 2024 – Sequential Quarter over Quarter Commentary

Targa reported fourth quarter adjusted EBITDA of $1,122.2 million, representing a 5 percent increase compared to the third quarter of 2024. The sequential increase in adjusted EBITDA was attributable to higher volumes across Targa’s Gathering and Processing (“G&P”) and Logistics and Transportation (“L&T”) systems. In the G&P segment, higher sequential adjusted operating margin was attributable to record Permian natural gas inlet volumes and higher fees, partially offset by the expiration of a lower margin high pressure gathering and processing agreement in the Delaware Basin. In the L&T segment, record NGL pipeline transportation, fractionation, and LPG export volumes drove the sequential increase in segment adjusted operating margin, partially offset by lower sequential marketing margin. Targa’s completion of its Daytona NGL Pipeline late in the third quarter and its 120 MBbl/d Train 10 fractionator in the fourth quarter supported higher sequential NGL pipeline transportation and fractionation volumes from increasing supply volumes from Targa’s Permian G&P systems. LPG export volumes benefited from improved market conditions. Lower sequential marketing margin was attributable to decreased optimization opportunities.

Capitalization and Liquidity

The Company’s total consolidated debt as of December 31, 2024 was $14,174.6 million, net of $89.0 million of debt issuance costs and $29.4 million of unamortized discount, with $12,534.4 million of outstanding senior unsecured notes, $1,130.5 million outstanding under the Commercial Paper Program, $330.0 million outstanding under the Securitization Facility, and $298.1 million of finance lease liabilities.

Total consolidated liquidity as of December 31, 2024 was approximately $2.0 billion, including $1.6 billion available under the Existing TRGP Revolver (as defined below), $270.0 million under the Securitization Facility and $157.3 million of cash.

Financing Update

In February 2025, Targa entered into a new five-year revolving facility (the “New TRGP Revolver”) with aggregate capacity of $3.5 billion. The New TRGP Revolver replaces Targa’s $2.75 billion credit facility (“Existing TRGP Revolver”), scheduled to mature in February 2027. The additional capacity aligns with the Company’s increased scale and continued growth opportunities. Pro forma for the New TRGP Revolver, Targa’s liquidity as of December 31, 2024, was approximately $2.8 billion.

Refinancing of Badlands Preferred Equity

Targa announced today a definitive agreement to repurchase all of the outstanding preferred equity in Targa Badlands LLC (“Targa Badlands”) from funds managed by Blackstone for approximately $1.8 billion in cash (the “Repurchase”). The Repurchase represents a refinancing of higher cost preferred equity with Targa’s lower cost of debt capital, resulting in meaningful cash savings. Targa expects to close in the first quarter of 2025 with an effective date of January 1, 2025, and estimates its year-end 2025 debt to adjusted EBITDA leverage ratio will remain near the mid-point of the Company’s long-term target range.

Growth Projects Update

In Targa’s G&P segment, construction continues on its 275 MMcf/d Pembrook II, East Pembrook, and East Driver plants in Permian Midland and its 275 MMcf/d Bull Moose II and Falcon II plants in Permian Delaware. In Targa’s L&T segment, construction continues on its 150 MBbl/d Train 11 fractionator in Mont Belvieu. The Company remains on-track to complete these expansions as previously disclosed.

In February 2025, in response to increasing production and to meet the infrastructure needs of its customers, Targa announced:

Delaware Express, a 100-mile, 30-inch diameter pipeline expansion of its Grand Prix NGL Pipeline in the Permian Delaware;
Train 12, a new 150 MBbl/d fractionator in Mont Belvieu, TX; and
GPMT LPG Export Expansion, an expansion of Targa’s LPG export capabilities at its Galena Park Marine Terminal to approximately 19 MMBbl per month.

Delaware Express is expected to commence operations in the third quarter of 2026, Train 12 is expected to commence operations in the first quarter of 2027, and Targa’s GPMT LPG Export Expansion is expected to commence operations in the third quarter of 2027.

2025 Outlook and Capital Return Expectations

For 2025, Targa estimates full year adjusted EBITDA to be between $4.65 billion and $4.85 billion, with the midpoint of the range representing a 15 percent increase over full year 2024 adjusted EBITDA. Targa expects to continue to benefit from meaningful growth across its Permian G&P footprint, which is expected to drive record Permian, NGL pipeline transportation, fractionation, and LPG export volumes in 2025 relative to the records set in 2024.

Targa’s 2025 operational and financial expectations assume Waha natural gas prices average $1.55 per million British Thermal Units (“MMbtu”), natural gas liquids (“NGL”) composite barrel prices average $0.65 per gallon, and crude oil prices average $70 per barrel.

Targa’s estimate for 2025 net growth capital expenditures is between $2.6 billion to $2.8 billion and includes capital spending for the recently announced Delaware Express, Train 12, and GPMT LPG Export Expansion. Net maintenance capital expenditures for 2025 are estimated to be approximately $250 million.

For the first quarter of 2025, Targa intends to recommend to its Board of Directors an increase to its quarterly common dividend to $1.00 per common share or $4.00 per common share annualized. The recommended 33 percent common dividend per share increase, if approved, would be effective for the first quarter of 2025 and payable in May 2025. Going forward, Targa expects to be in position to continue to meaningfully increase the capital returned to shareholders through increasing common dividends per share and opportunistic repurchases of its common stock.

An earnings supplement presentation and updated investor presentation are available under Events and Presentations in the Investors section of the Company’s website at www.targaresources.com/investors/events.

Conference Call

The Company will host a conference call for the investment community at 11:00 a.m. Eastern time (10:00 a.m. Central time) on February 20, 2025 to discuss its fourth quarter results. The conference call can be accessed via webcast under Events and Presentations in the Investors section of the Company’s website at www.targaresources.com/investors/events, or by going directly to https://edge.media-server.com/mmc/p/qgzvcwi7. A webcast replay will be available at the link above approximately two hours after the conclusion of the event.

^{(1) Adjusted EBITDA is a non-GAAP financial measure and is discussed under “Non-GAAP Financial Measures.”
(2) Year over year increase based on midpoint of estimated 2025 adjusted EBITDA range of $4.65 billion to $4.85 billion.}

Targa Resources Corp. – Consolidated Financial Results of Operations

	Three Months Ended December 31,												Year Ended December 31,
	2024			2023			2024 vs. 2023						2024			2023			2024 vs. 2023
	(In millions)
Revenues:
Sales of commodities	$	3,765.5		$	3,647.9		$	117.6			3	%	$	13,891.8		$	13,962.1		$	(70.3	)		(1	%)
Fees from midstream services		639.7			591.6			48.1			8	%		2,489.7			2,098.2			391.5			19	%
Total revenues		4,405.2			4,239.5			165.7			4	%		16,381.5			16,060.3			321.2			2	%
Product purchases and fuel		2,922.6			2,898.5			24.1			1	%		10,703.0			10,676.4			26.6			—
Operating expenses		305.8			269.5			36.3			13	%		1,175.6			1,077.9			97.7			9	%
Depreciation and amortization expense		378.5			341.4			37.1			11	%		1,423.0			1,329.6			93.4			7	%
General and administrative expense		97.5			95.3			2.2			2	%		384.9			348.7			36.2			10	%
Other operating (income) expense		0.2			(0.5	)		0.7		NM				(0.4	)		1.5			(1.9	)	NM
Income (loss) from operations		700.6			635.3			65.3			10	%		2,695.4			2,626.2			69.2			3	%
Interest expense, net		(177.7	)		(178.0	)		0.3			—			(767.2	)		(687.8	)		(79.4	)		12	%
Equity earnings (loss)		1.5			2.8			(1.3	)		(46	%)		9.4			9.0			0.4			4	%
Gain (loss) from financing activities		—			(2.1	)		2.1			100	%		(0.8	)		(2.1	)		1.3			62	%
Other, net		0.1			2.1			(2.0	)	NM				1.2			(2.8	)		4.0		NM
Income tax (expense) benefit		(110.5	)		(102.5	)		(8.0	)		8	%		(384.5	)		(363.2	)		(21.3	)		6	%
Net income (loss)		414.0			357.6			56.4			16	%		1,553.5			1,579.3			(25.8	)		(2	%)
Less: Net income (loss) attributable to noncontrolling interests		63.0			58.0			5.0			9	%		241.5			233.4			8.1			3	%
Net income (loss) attributable to Targa Resources Corp.		351.0			299.6			51.4			17	%		1,312.0			1,345.9			(33.9	)		(3	%)
Premium on repurchase of noncontrolling interests, net of tax		32.9			19.4			13.5			70	%		32.9			510.1			(477.2	)		(94	%)
Net income (loss) attributable to common shareholders	$	318.1		$	280.2		$	37.9			14	%	$	1,279.1		$	835.8		$	443.3			53	%
Financial data:
Adjusted EBITDA (1)	$	1,122.2		$	959.9		$	162.3			17	%	$	4,142.3		$	3,530.0		$	612.3			17	%
Adjusted cash flow from operations (1)		940.9			780.1			160.8			21	%		3,372.4			2,840.6			531.8			19	%
Adjusted free cash flow (1)		56.2			73.7			(17.5	)		(24	%)		140.1			392.7			(252.6	)		(64	%)

⁽¹⁾	^{Adjusted EBITDA, adjusted cash flow from operations and adjusted free cash flow are non-GAAP financial measures and are discussed under “Non-GAAP Financial Measures.”}
^NM	^{Due to a low denominator, the noted percentage change is disproportionately high and as a result, considered not meaningful.}

Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023

The increase in commodity sales reflects higher NGL, natural gas and condensate volumes ($242.4) and higher NGL prices ($199.5 million), partially offset by lower natural gas and condensate prices ($197.0 million) and the unfavorable impact of hedges ($127.3 million).

The increase in fees from midstream services is primarily due to higher gas gathering and processing fees, higher transportation and fractionation fees, and higher export volumes.

Product purchases and fuel are relatively flat reflecting higher NGL and natural gas volumes, offset by lower natural gas prices.

The increase in operating expenses is primarily due to higher maintenance and labor costs as a result of increased activity and system expansions, partially offset by lower taxes.

See “—Review of Segment Performance” for additional information on a segment basis.

The increase in depreciation and amortization expense is primarily due to the impact of system expansions on the Company’s asset base that have been placed in service during 2024.

The increase in income tax expense is primarily due to an increase in pre-tax book income and the release of state valuation allowance in 2023 partially offset by the impact of statutory rate changes.

The premium on repurchase of noncontrolling interests, net of tax is primarily due to the CBF Acquisition in 2024.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

Commodity sales are relatively flat reflecting lower natural gas and condensate prices ($1,242.8 million) and the unfavorable impact of hedges ($686.5 million), offset by higher NGL, natural gas and condensate volumes ($1,607.2 million), and higher NGL prices ($251.6 million).

The increase in fees from midstream services is primarily due to higher gas gathering and processing fees, higher transportation and fractionation fees, and higher export volumes.

Product purchases and fuel are relatively flat reflecting higher NGL and natural gas volumes, offset by lower natural gas prices.

The increase in operating expenses is primarily due to higher labor, maintenance, rental and chemical costs as a result of increased activity and system expansions, partially offset by lower taxes.

See “—Review of Segment Performance” for additional information on a segment basis.

The increase in depreciation and amortization expense is primarily due to the impact of system expansions on the Company’s asset base, partially offset by the shortening of depreciable lives of certain assets that were idled in 2023.

The increase in general and administrative expense is primarily due to higher compensation and benefits and professional fees.

The increase in interest expense, net, is due to recognition of cumulative interest on a 2024 legal ruling associated with the Splitter Agreement and higher borrowings, partially offset by higher capitalized interest. Higher capitalized interest is due to system expansions and higher interest rates.

The increase in income tax expense is primarily due to the release of state valuation allowance in 2023.

The premium on repurchase of noncontrolling interests, net of tax is primarily due to the CBF Acquisition in 2024 and the Grand Prix Transaction in 2023.

Review of Segment Performance

The following discussion of segment performance includes inter-segment activities. The Company views segment operating margin and adjusted operating margin as important performance measures of the core profitability of its operations. These measures are key components of internal financial reporting and are reviewed for consistency and trend analysis. For a discussion of adjusted operating margin, see “Non-GAAP Financial Measures ― Adjusted Operating Margin.” Segment operating financial results and operating statistics include the effects of intersegment transactions. These intersegment transactions have been eliminated from the consolidated presentation.

The Company operates in two primary segments: (i) Gathering and Processing; and (ii) Logistics and Transportation.

Gathering and Processing Segment

The Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast.

The following table provides summary data regarding results of operations of this segment for the periods indicated:

	Three Months Ended December 31,									Year Ended December 31,
	2024		2023		2024 vs. 2023					2024		2023		2024 vs. 2023
		(In millions, except operating statistics and price amounts)
Operating margin	$	598.9	$	536.3	$	62.6		12	%	$	2,312.4	$	2,082.2	$	230.2		11	%
Operating expenses		217.5		185.7		31.8		17	%		814.6		746.6		68.0		9	%
Adjusted operating margin	$	816.4	$	722.0	$	94.4		13	%	$	3,127.0	$	2,828.8	$	298.2		11	%
Operating statistics (1):
Plant natural gas inlet, MMcf/d (2) (3)
Permian Midland (4)		3,072.8		2,716.5		356.3		13	%		2,933.1		2,535.2		397.9		16	%
Permian Delaware		2,992.4		2,564.3		428.1		17	%		2,837.3		2,526.5		310.8		12	%
Total Permian		6,065.2		5,280.8		784.4		15	%		5,770.4		5,061.7		708.7		14	%

SouthTX		329.4		347.9		(18.5	)	(5	%)		325.9		367.4		(41.5	)	(11	%)
North Texas		187.4		207.7		(20.3	)	(10	%)		186.9		205.9		(19.0	)	(9	%)
SouthOK (5)		339.7		366.5		(26.8	)	(7	%)		351.7		385.0		(33.3	)	(9	%)
WestOK		210.5		207.1		3.4		2	%		212.8		207.1		5.7		3	%
Total Central		1,067.0		1,129.2		(62.2	)	(6	%)		1,077.3		1,165.4		(88.1	)	(8	%)

Badlands (5) (6)		128.8		131.2		(2.4	)	(2	%)		136.3		130.0		6.3		5	%
Total Field		7,261.0		6,541.2		719.8		11	%		6,984.0		6,357.1		626.9		10	%

Coastal		405.7		567.0		(161.3	)	(28	%)		449.6		541.1		(91.5	)	(17	%)

Total		7,666.7		7,108.2		558.5		8	%		7,433.6		6,898.2		535.4		8	%
NGL production, MBbl/d (3)
Permian Midland (4)		445.7		398.3		47.4		12	%		428.4		367.7		60.7		17	%
Permian Delaware		390.2		310.6		79.6		26	%		359.9		321.6		38.3		12	%
Total Permian		835.9		708.9		127.0		18	%		788.3		689.3		99.0		14	%

SouthTX (5)		29.3		37.3		(8.0	)	(21	%)		32.8		40.9		(8.1	)	(20	%)
North Texas		22.9		24.5		(1.6	)	(7	%)		22.6		24.0		(1.4	)	(6	%)
SouthOK (5)		40.1		40.0		0.1		—			35.0		43.1		(8.1	)	(19	%)
WestOK		16.3		12.1		4.2		35	%		15.1		12.5		2.6		21	%
Total Central		108.6		113.9		(5.3	)	(5	%)		105.5		120.5		(15.0	)	(12	%)

Badlands (5)		15.3		15.7		(0.4	)	(3	%)		16.6		15.5		1.1		7	%
Total Field		959.8		838.5		121.3		14	%		910.4		825.3		85.1		10	%

Coastal		36.0		43.2		(7.2	)	(17	%)		35.8		39.2		(3.4	)	(9	%)

Total		995.8		881.7		114.1		13	%		946.2		864.5		81.7		9	%
Crude oil, Badlands, MBbl/d		110.1		105.2		4.9		5	%		106.6		105.5		1.1		1	%
Crude oil, Permian, MBbl/d		29.5		27.5		2.0		7	%		27.9		27.4		0.5		2	%
Natural gas sales, BBtu/d (3)		2,784.3		2,737.3		47.0		2	%		2,780.5		2,685.8		94.7		4	%
NGL sales, MBbl/d (3)		582.0		520.6		61.4		12	%		558.2		495.8		62.4		13	%
Condensate sales, MBbl/d		19.8		17.8		2.0		11	%		19.3		18.5		0.8		4	%
Average realized prices (7):
Natural gas, $/MMBtu		1.04		1.83		(0.79	)	(43	%)		0.67		1.94		(1.27	)	(65	%)
NGL, $/gal		0.49		0.43		0.06		14	%		0.46		0.46		—		—
Condensate, $/Bbl		66.83		74.79		(7.96	)	(11	%)		73.35		74.35		(1.00	)	(1	%)

⁽¹⁾	^{Segment operating statistics include the effect of intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.}
⁽²⁾	^{Plant natural gas inlet represents the Company’s undivided interest in the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant, other than Badlands.}
⁽³⁾	^{Plant natural gas inlet volumes and gross NGL production volumes include producer take-in-kind volumes, while natural gas sales and NGL sales exclude producer take-in-kind volumes.}
⁽⁴⁾	^{Permian Midland includes operations in WestTX, of which the Company owns a 72.8% undivided interest, and other plants that are owned 100% by the Company. Operating results for the WestTX undivided interest assets are presented on a pro-rata net basis in the Company’s reported financials.}
⁽⁵⁾	^{Operations include facilities that are not wholly owned by the Company.}
⁽⁶⁾	^{Badlands natural gas inlet represents the total wellhead volume and includes the Targa volumes processed at the Little Missouri 4 plant.}
⁽⁷⁾	^{Average realized prices, net of fees, include the effect of realized commodity hedge gain/loss attributable to the Company’s equity volumes. The price is calculated using total commodity sales plus the hedge gain/loss as the numerator and total sales volume as the denominator, net of fees.}

The following table presents the realized commodity hedge gain (loss) attributable to the Company’s equity volumes that are included in the adjusted operating margin of the Gathering and Processing segment:

	Three Months Ended December 31, 2024						Three Months Ended December 31, 2023
	(In millions, except volumetric data and price amounts)
	Volume Settled		Price Spread (1)		Gain (Loss)		Volume Settled		Price Spread (1)			Gain (Loss)
Natural gas (BBtu)		8.1	$	1.84	$	14.9		13.2	$	1.15		$	15.2
NGL (MMgal)		101.0		0.01		0.9		165.3		0.09			15.5
Crude oil (MBbl)		0.7		5.00		3.5		0.6		(6.17	)		(3.7	)
					$	19.3						$	27.0

	Year Ended December 31, 2024								Year Ended December 31, 2023
	(In millions, except volumetric data and price amounts)
	Volume Settled		Price Spread (1)			Gain (Loss)			Volume Settled		Price Spread (1)			Gain (Loss)
Natural gas (BBtu)		43.7	$	1.92		$	84.1			63.2	$	1.22		$	77.4
NGL (MMgal)		449.8		0.04			15.8			680.3		0.07			49.9
Crude oil (MBbl)		2.1		(2.05	)		(4.3	)		2.4		(6.92	)		(16.6	)
						$	95.6							$	110.7

⁽¹⁾	^{The price spread is the differential between the contracted derivative instrument pricing and the price of the corresponding settled commodity transaction.}

Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023

The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes which drove higher fee-based income in the Permian, and higher NGL Prices, partially offset by lower natural gas and condensate prices. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Wildcat II plant during the fourth quarter of 2023, the Roadrunner II plant during the second quarter of 2024, the Greenwood II plant during the fourth quarter of 2024, and continued strong producer activity.

The increase in operating expenses was primarily due to higher volumes in the Permian and multiple plant additions in the Permian, partially offset by lower taxes in the Central region.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes which drove higher fee-based income in the Permian, partially offset by lower natural gas and condensate prices. The increase in natural gas inlet volumes was attributable to the addition of the Legacy II plant during the first quarter of 2023, the Midway plant during the second quarter of 2023, the Greenwood I and Wildcat II plants during the fourth quarter of 2023, the Roadrunner II plant during the second quarter of 2024, the Greenwood II plant during the fourth quarter of 2024, and continued strong producer activity.

The increase in operating expenses was primarily due to higher volumes and multiple plant additions in the Permian.

Logistics and Transportation Segment

The Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling, and marketing of NGLs and NGL products, including services to LPG exporters and certain natural gas supply and marketing activities in support of the Company’s other businesses. The Logistics and Transportation segment also includes Grand Prix NGL Pipeline, which connects the Company’s gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with the Company’s Downstream facilities in Mont Belvieu, Texas. The Company’s Downstream facilities are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana.

The following table provides summary data regarding results of operations of this segment for the periods indicated:

	Three Months Ended December 31,								Year Ended December 31,
	2024		2023		2024 vs. 2023				2024		2023		2024 vs. 2023
	(In millions, except operating statistics)
Operating margin	$	656.2	$	554.2	$	102.0	18	%	$	2,355.1	$	1,948.7	$	406.4	21	%
Operating expenses		88.7		84.4		4.3	5	%		362.3		332.0		30.3	9	%
Adjusted operating margin	$	744.9	$	638.6	$	106.3	17	%	$	2,717.4	$	2,280.7	$	436.7	19	%
Operating statistics MBbl/d (1):
NGL pipeline transportation volumes (2)		871.5		722.0		149.5	21	%		800.8		635.5		165.3	26	%
Fractionation volumes		1,089.5		844.8		244.7	29	%		936.1		798.1		138.0	17	%
Export volumes (3)		457.1		434.5		22.6	5	%		423.6		365.2		58.4	16	%
NGL sales		1,227.5		1,125.8		101.7	9	%		1,159.1		1,019.8		139.3	14	%

⁽¹⁾	^{Segment operating statistics include intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.}
⁽²⁾	^{Represents the total quantity of mixed NGLs that earn a transportation margin.}
⁽³⁾	^{Export volumes represent the quantity of NGL products delivered to third-party customers at the Company’s Galena Park Marine Terminal that are destined for international markets.}

Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023

The increase in adjusted operating margin was due to higher pipeline transportation and fractionation margin and higher marketing margin. LPG export margin was relatively flat. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from the Company’s Permian Gathering and Processing systems, the in-service of the Daytona NGL Pipeline during the third quarter of 2024, the addition of Train 9 during the second quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024. Marketing margin increased due to greater optimization opportunities.

The increase in operating expenses was due to higher system volumes, higher taxes, higher compensation and benefits the in-service of the Daytona NGL Pipeline expansion during the third quarter of 2024, the addition of Train 9 during the second quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024, partially offset by lower repairs and maintenance.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

The increase in adjusted operating margin was due to higher pipeline transportation and fractionation margin, higher marketing margin, and higher LPG export margin. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from the Company’s Permian Gathering and Processing systems, the addition of Train 9 during the second quarter of 2024, the in-service of the Daytona NGL Pipeline during the third quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024. Marketing margin increased due to greater optimization opportunities. LPG export margin increased due to higher volumes as Targa benefited from the completion of the export expansion project during the third quarter of 2023 and the Houston Ship Channel allowing night-time vessel transits, partially offset by maintenance and required inspections.

The increase in operating expenses was due to higher system volumes, higher compensation and benefits, higher taxes, higher repairs and maintenance and the addition of two trains during 2024.

Other

	Three Months Ended December 31,									Year Ended December 31,
	2024			2023			2024 vs. 2023			2024			2023		2024 vs. 2023
	(In millions)
Operating margin	$	(78.3	)	$	(18.8	)	$	(59.5	)	$	(164.6	)	$	275.5	$	(440.1	)
Adjusted operating margin	$	(78.3	)	$	(18.8	)	$	(59.5	)	$	(164.6	)	$	275.5	$	(440.1	)

Other contains the results of commodity derivative activity mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. The Company has entered into derivative instruments to hedge the commodity price associated with a portion of the Company’s future commodity purchases and sales and natural gas transportation basis risk within the Company’s Logistics and Transportation segment.

About Targa Resources Corp.

Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company’s assets connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuels and feedstocks. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including services to LPG exporters; and gathering, storing, terminaling, and purchasing and selling crude oil.

Targa is a FORTUNE 500 company and is included in the S&P 500.

For more information, please visit the Company’s website at www.targaresources.com.

Non-GAAP Financial Measures

This press release includes the Company’s non-GAAP financial measures: adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment). The following tables provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures.

The Company utilizes non-GAAP measures to analyze the Company’s performance. Adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment) are non-GAAP measures. The GAAP measures most directly comparable to these non-GAAP measures are income (loss) from operations, Net income (loss) attributable to Targa Resources Corp. and segment operating margin. These non-GAAP measures should not be considered as an alternative to GAAP measures and have important limitations as analytical tools. Investors should not consider these measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Additionally, because the Company’s non-GAAP measures exclude some, but not all, items that affect income and segment operating margin, and are defined differently by different companies within the Company’s industry, the Company’s definitions may not be comparable with similarly titled measures of other companies, thereby diminishing their utility. Management compensates for the limitations of the Company’s non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating these insights into the Company’s decision-making processes.

Adjusted Operating Margin

The Company defines adjusted operating margin for the Company’s segments as revenues less product purchases and fuel. It is impacted by volumes and commodity prices as well as by the Company’s contract mix and commodity hedging program.

Gathering and Processing adjusted operating margin consists primarily of:

service fees related to natural gas and crude oil gathering, treating and processing; and
revenues from the sale of natural gas, condensate, crude oil and NGLs less producer settlements, fuel and transport and the Company’s equity volume hedge settlements.

Logistics and Transportation adjusted operating margin consists primarily of:

service fees (including the pass-through of energy costs included in certain fee rates);
system product gains and losses; and
NGL and natural gas sales, less NGL and natural gas purchases, fuel, third-party transportation costs and the net inventory change.

The adjusted operating margin impacts of mark-to-market hedge unrealized changes in fair value are reported in Other.

Adjusted operating margin for the Company’s segments provides useful information to investors because it is used as a supplemental financial measure by management and by external users of the Company’s financial statements, including investors and commercial banks, to assess:

the financial performance of the Company’s assets without regard to financing methods, capital structure or historical cost basis;
the Company’s operating performance and return on capital as compared to other companies in the midstream energy sector, without regard to financing or capital structure; and
the viability of capital expenditure projects and acquisitions and the overall rates of return on alternative investment opportunities.

Management reviews adjusted operating margin and operating margin for the Company’s segments monthly as a core internal management process. The Company believes that investors benefit from having access to the same financial measures that management uses in evaluating the Company’s operating results. The reconciliation of the Company’s adjusted operating margin to the most directly comparable GAAP measure is presented under “Review of Segment Performance.”

Adjusted EBITDA

The Company defines adjusted EBITDA as Net income (loss) attributable to Targa Resources Corp. before interest, income taxes, depreciation and amortization, and other items that the Company believes should be adjusted consistent with the Company’s core operating performance. The adjusting items are detailed in the adjusted EBITDA reconciliation table and its footnotes. Adjusted EBITDA is used as a supplemental financial measure by the Company and by external users of the Company’s financial statements such as investors, commercial banks and others to measure the ability of the Company’s assets to generate cash sufficient to pay interest costs, support the Company’s indebtedness and pay dividends to the Company’s investors.

Adjusted Cash Flow from Operations and Adjusted Free Cash Flow

The Company defines adjusted cash flow from operations as adjusted EBITDA less cash interest expense on debt obligations and cash taxes. The Company defines adjusted free cash flow as adjusted cash flow from operations less maintenance capital expenditures (net of any reimbursements of project costs) and growth capital expenditures, net of contributions from noncontrolling interest and contributions to investments in unconsolidated affiliates. Adjusted cash flow from operations and adjusted free cash flow are performance measures used by the Company and by external users of the Company’s financial statements, such as investors, commercial banks and research analysts, to assess the Company’s ability to generate cash earnings (after servicing the Company’s debt and funding capital expenditures) to be used for corporate purposes, such as payment of dividends, retirement of debt or redemption of other financing arrangements.

The following table reconciles the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the periods indicated:

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
	(In millions)
Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA, Adjusted Cash Flow from Operations and Adjusted Free Cash Flow
Net income (loss) attributable to Targa Resources Corp.	$	351.0		$	299.6		$	1,312.0		$	1,345.9
Interest (income) expense, net		177.7			178.0			767.2			687.8
Income tax expense (benefit)		110.5			102.5			384.5			363.2
Depreciation and amortization expense		378.5			341.4			1,423.0			1,329.6
(Gain) loss on sale or disposition of assets		(0.4	)		(1.3	)		(3.1	)		(5.3	)
Write-down of assets		2.2			0.8			6.2			6.9
(Gain) loss from financing activities		—			2.1			0.8			2.1
Equity (earnings) loss		(1.5	)		(2.8	)		(9.4	)		(9.0	)
Distributions from unconsolidated affiliates		8.7			4.5			25.3			18.6
Compensation on equity grants		15.8			16.7			63.2			62.4
Risk management activities		78.2			18.8			164.6			(275.4	)
Noncontrolling interests adjustments (1)		1.5			(0.4	)		3.9			(3.7	)
Litigation expense (2)		—			—			4.1			6.9
Adjusted EBITDA	$	1,122.2		$	959.9		$	4,142.3		$	3,530.0
Interest expense on debt obligations (3)		(173.8	)		(174.9	)		(752.4	)		(675.8	)
Cash taxes		(7.5	)		(4.9	)		(17.5	)		(13.6	)
Adjusted Cash Flow from Operations	$	940.9		$	780.1		$	3,372.4		$	2,840.6
Maintenance capital expenditures, net (4)		(65.0	)		(70.4	)		(231.9	)		(223.4	)
Growth capital expenditures, net (4)		(819.7	)		(636.0	)		(3,000.4	)		(2,224.5	)
Adjusted Free Cash Flow	$	56.2		$	73.7		$	140.1		$	392.7

⁽¹⁾	^{Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest.}
⁽²⁾	^{Litigation expense includes charges related to litigation resulting from the major winter storm in February 2021 that the Company considers outside the ordinary course of its business and/or not reflective of its ongoing core operations. The Company may incur such charges from time to time, and the Company believes it is useful to exclude such charges because it does not consider them reflective of its ongoing core operations and because of the generally singular nature of the claims underlying such litigation.}
⁽³⁾	^{Excludes amortization of interest expense. The year ended December 31, 2024 includes $55.8 million of interest expense associated with the Splitter Agreement ruling.}
⁽⁴⁾	^{Represents capital expenditures, net of contributions from noncontrolling interests and includes contributions to investments in unconsolidated affiliates.}

The following table presents a reconciliation of estimated net income of the Company to estimated adjusted EBITDA for 2025:

	2025E
	(In millions)
Reconciliation of Estimated Net Income Attributable to Targa Resources Corp. to
Estimated Adjusted EBITDA
Net income attributable to Targa Resources Corp.	$	1,765.0
Interest expense, net		875.0
Income tax expense		510.0
Depreciation and amortization expense		1,535.0
Equity earnings		(20.0	)
Distributions from unconsolidated affiliates		25.0
Compensation on equity grants		65.0
Noncontrolling interests adjustments (1)		(5.0	)
Estimated Adjusted EBITDA	$	4,750.0

⁽¹⁾	^{Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest.}

Regulation FD Disclosures

The Company uses any of the following to comply with its disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. The Company routinely posts important information on its website at www.targaresources.com, including information that may be deemed to be material. The Company encourages investors and others interested in the company to monitor these distribution channels for material disclosures.

Forward-Looking Statements

Certain statements in this release are “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. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding our projected financial performance, capital spending and payment of future dividends. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, actions by the Organization of the Petroleum Exporting Countries (“OPEC”) and non-OPEC oil producing countries, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of our completion of capital projects and business development efforts, the expected growth of volumes on our systems, the impact of significant public health crises, commodity price volatility due to ongoing or new global conflicts, the impact of disruptions in the bank and capital markets, including those resulting from lack of access to liquidity for banking and financial services firms, and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Targa Investor Relations
InvestorRelations@targaresources.com
(713) 584-1133

The MIL Network –

February 21, 2025

MIL-OSI: Cenovus Announces Fourth-Quarter and Full-Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Feb. 20, 2025 (GLOBE NEWSWIRE) — Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced its fourth-quarter and full-year 2024 financial and operating results. In the quarter, the company generated over $2.0 billion in cash from operating activities, $1.6 billion of adjusted funds flow and $123 million of free funds flow. The Upstream business continued to deliver strong performance, with production of 816,000 barrels of oil equivalent per day (BOE/d)¹ in the quarter, including a new quarterly Oil Sands production record of 628,500 BOE/d. In the Downstream, total crude throughput increased by almost 24,000 barrels per day (bbls/d) from the previous quarter to 666,700 bbls/d, representing an aggregate utilization rate of 93%.

Highlights

Delivered quarterly Upstream production of 816,000 BOE/d, an increase of 6% relative to the previous quarter and 1% relative to the fourth quarter of 2023.
Highest-ever quarterly and annual Oil Sands production rates at 628,500 BOE/d and 610,700 BOE/d respectively, including record annual rates at both Foster Creek and the Lloydminster thermal assets.
Improving quarterly Downstream operating performance, with utilization of 97% in Canadian Refining and 92% in U.S. Refining. U.S. Refining operating expenses, excluding turnaround costs, of $10.89 per barrel were down 18% relative to the fourth quarter of 2023.
Achieved significant milestones on Cenovus’s major Upstream growth projects, including mechanical completion of the Narrows Lake pipeline, executing the SeaRose floating production, storage and offloading (FPSO) vessel life extension dry dock and reaching mechanical completion of both the concrete gravity structure (CGS) and topsides for the West White Rose project.
Returned $706 million to shareholders in the fourth quarter, including $108 million through share purchases, $348 million through common and preferred share dividends and $250 million through the redemption of Cenovus Series 3 preferred shares on December 31, 2024.

“We delivered strong operating performance this quarter. Our industry leading Oil Sands assets set production records and our Downstream business continued to demonstrate improvements in reliability and unit costs,” said Jon McKenzie, Cenovus President & Chief Executive Officer. “In 2025, we will build on this momentum, focusing on operational execution while advancing our key growth projects to deliver long-term value for shareholders.”

Financial summary

($ millions, except per share amounts)	2024 Q4	2024 Q3	2023 Q4	2024 FY	2023 FY
Cash from (used in) operating activities	2,029	2,474	2,946	9,235	7,388
Adjusted funds flow²	1,601	1,960	2,062	8,164	8,803
Per share (diluted)²	0.87	1.05	1.08	4.38	4.54
Capital investment	1,478	1,346	1,170	5,015	4,298
Free funds flow²	123	614	892	3,149	4,505
Excess free funds flow²	(416)	146	471	1,297	2,466
Net earnings (loss)	146	820	743	3,142	4,109
Per share (diluted)	0.07	0.42	0.32	1.67	2.09
Long-term debt, including current portion	7,534	7,199	7,108	7,534	7,108
Net debt	4,614	4,196	5,060	4,614	5,060

Production and throughput

(before royalties, net to Cenovus)	2024 Q4	2024 Q3	2023 Q4	2024 FY	2023 FY
Oil and NGLs (bbls/d)¹	670,600	630,500	662,600	653,800	640,000
Conventional natural gas (MMcf/d)	873.3	844.6	876.3	860.2	832.6
Total upstream production (BOE/d)¹	816,000	771,300	808,600	797,200	778,700
Total downstream throughput (bbls/d)	666,700	642,900	579,100	646,900	560,400

¹ See Advisory for production by product type.
² Non-GAAP financial measure or contains a non-GAAP financial measure. See Advisory.

Fourth-quarter results

Operating¹

Cenovus’s total revenues were $12.8 billion in the fourth quarter, down from $13.8 billion in the previous quarter, primarily due to lower commodity prices. Upstream revenues were $7.3 billion, flat from the third quarter, while Downstream revenues were $7.8 billion, down from $8.8 billion in the prior quarter.

Total operating margin³ was $2.3 billion, compared with $2.4 billion in the previous quarter. Upstream operating margin⁴ was $2.7 billion, consistent with the third quarter and benefiting from higher production volumes relative to the prior quarter, offset by lower benchmark oil prices and timing differences between production and sales. The company had a Downstream operating margin⁴ shortfall of $396 million in the fourth quarter due to weak refining crack spreads and a narrow heavy oil price differential, compared with a shortfall of $323 million in the previous quarter. Operating margin in the U.S. Refining segment included $45 million of first in, first out (FIFO) losses and $128 million of turnaround expenses incurred during the Lima Refinery turnaround.

Total Upstream production was 816,000 BOE/d in the fourth quarter, an increase of 44,700 BOE/d from the prior quarter, reflecting record quarterly production from the company’s Oil Sands segment of 628,500 BOE/d. Christina Lake production was 251,400 bbls/d, compared with 211,800 bbls/d in the third quarter, as a result of completing planned turnaround activity in September. Foster Creek production was 195,200 bbls/d compared with 198,000 bbls/d in the third quarter, while Sunrise production increased to 53,100 bbls/d from 50,400 bbls/d in the third quarter as production from new well pads continued to ramp up. Production from the Lloydminster thermal assets declined slightly to 108,900 bbls/d, while Lloydminster conventional heavy oil output increased to 18,000 bbls/d from 16,300 bbls/d in the prior quarter. Production in the Conventional segment was 117,800 BOE/d, a slight decrease from 118,100 BOE/d in the third quarter.

In the Offshore segment, production was 69,700 BOE/d compared with 65,500 BOE/d in the third quarter. In Asia Pacific, production volumes were 62,200 BOE/d, higher than the previous quarter partially due to increased production at the MAC field in Indonesia and planned maintenance at Liwan in the third quarter. In the Atlantic, production was 7,500 bbls/d, a decrease from 9,000 bbls/d in the prior quarter due to unplanned downtime at the non-operated Terra Nova field. The SeaRose FPSO is on station and reconnected to the White Rose field, with production expected to resume by the end of February.

Total refining throughput in the fourth quarter was 666,700 bbls/d, up from 642,900 bbls/d in the third quarter. Throughput in Canadian Refining was 104,400 bbls/d, representing a utilization rate of 97%, compared with 99,400 bbls/d in the previous quarter. The increase was primarily due to returning to full rates following completion of turnaround activity at the Lloydminster Upgrader early in the third quarter.

In U.S. Refining, crude throughput was 562,300 bbls/d, representing a utilization rate of 92%, compared with 543,500 bbls/d in the third quarter. Throughput increased primarily due to improved reliability, partially offset by economic run cuts as market crack spreads weakened through the quarter. U.S. Refining revenues were $6.6 billion relative to $7.2 billion in the prior quarter due to lower refined product pricing. Market capture⁵ in the U.S. improved to 45% relative to 35% in the previous quarter primarily due to reduced inventory timing impacts (FIFO). Market capture in the fourth quarter was negatively impacted by the Lima Refinery turnaround, narrower heavy crude oil differentials, and a quarterly FIFO loss of $45 million.

³ Non-GAAP financial measure. Total operating margin is the total of Upstream operating margin plus Downstream operating margin. See Advisory.
⁴ Specified financial measure. See Advisory.
⁵ Contains a non-GAAP financial measure. See Advisory.

Financial

Cash from operating activities in the fourth quarter, which includes changes in non-cash working capital, was $2.0 billion, compared with $2.5 billion in the third quarter. Adjusted funds flow was $1.6 billion, compared with $2.0 billion in the prior quarter and there was a shortfall of excess free funds flow (EFFF) of $416 million, compared with $146 million in the prior quarter. Net earnings in the fourth quarter were $146 million, compared with $820 million in the previous quarter. Fourth-quarter financial results were impacted by lower benchmark prices relative to the third quarter including seasonally weak refining market crack spreads in the Chicago market.

Long-term debt, including the current portion, was $7.5 billion at December 31, 2024. Net debt increased from the prior quarter to $4.6 billion at December 31, 2024, primarily due to the shortfall in EFFF of $416 million and the redemption of $250 million of Cenovus Series 3 preferred shares on December 31, 2024, partially offset by a release of non-cash working capital. The company continues to steward toward net debt of $4.0 billion and returning 100% of EFFF to shareholders over time in accordance with its financial framework.

Growth projects and capital investments

In the Oil Sands segment, the Narrows Lake pipeline, which will connect the field to the Christina Lake processing facility, was mechanically completed in the fourth quarter. We plan to commence steam injection in the spring and the project remains on track for first oil mid-2025. At Sunrise, production continued to ramp up in the fourth quarter after the company brought two new well pads online in the third quarter. One additional well pad will be added in early 2025. The optimization project at Foster Creek is now 64% complete and remains on schedule for startup in 2026, with most modules and major pieces of equipment in place and pipe installation underway.

In the fourth quarter, the West White Rose project achieved mechanical completion of both the CGS and topsides, and work to prepare the seabed for installation of the CGS at the field location was also completed. The focus of the project in 2025 will be on the installation and commissioning of the platform. The West White Rose project is now approximately 88% complete and progressing on-schedule towards first oil in 2026.

Full-year results

In 2024, Cenovus’s total Upstream production averaged 797,200 BOE/d, compared with 778,700 BOE/d in 2023, including record annual volumes from the Oil Sands assets and a 5% increase in Offshore volumes. Oil Sands production was 610,700 BOE/d, including approximately 196,000 bbls/d at Foster Creek, a new annual high for the asset, and 234,200 bbls/d at Christina Lake, which successfully completed a turnaround in the third quarter. Full-year production from the Lloydminster thermal assets was also an annual record at 111,500 bbls/d, compared with 104,100 bbls/d in 2023, reflecting a successful redevelopment program and well optimization. Sunrise production was 49,600 bbls/d compared with 48,900 bbls/d in 2023 and Lloydminster conventional heavy oil production increased to 17,600 bbls/d from 16,700 bbls/d in the previous year. Conventional production was 119,900 BOE/d, in line with 2023. Offshore total production was approximately 66,600 BOE/d, compared with 63,400 BOE/d in the prior year, with 2023 impacted by a temporary disconnection of a subsea umbilical in Liwan by a third-party vessel.

Total Downstream throughput averaged 646,900 bbls/d in 2024, a 15% increase from 560,400 bbls/d in 2023. Canadian Refining crude oil throughput was 90,500 bbls/d, compared to 100,700 bbls/d in 2023, as the Lloydminster Upgrader completed the largest turnaround in the asset’s history early in the third quarter of 2024. U.S. Refining crude oil throughput increased to 556,400 bbls/d in 2024 compared with 459,700 bbls/d in 2023, reflecting the first full year of production from Superior and Toledo within the Cenovus portfolio.

Total revenues were $54.3 billion in 2024 and total operating margin was $10.8 billion compared with revenues of $52.2 billion and total operating margin of $11.0 billion in 2023. The year-over-year increase in total revenues was largely due to higher production and narrowing heavy Canadian crude differentials following the startup of the Trans Mountain pipeline expansion project. Operating margin was slightly reduced due to narrower downstream crack spreads, higher turnaround costs and increased transportation and blending costs.

Cash from operating activities was $9.2 billion for 2024 compared with $7.4 billion in 2023. Adjusted funds flow was $8.2 billion and free funds flow was $3.1 billion. Total capital investment for 2024 was $5.0 billion, primarily directed to sustaining production at the company’s Upstream assets, the construction of the major Upstream growth projects including West White Rose and refining reliability initiatives. Full-year net earnings for 2024 were $3.1 billion compared with $4.1 billion in 2023, primarily due to lower commodity prices, foreign exchange losses and higher depreciation, depletion, amortization and exploration expense.

Organizational updates

As part of Cenovus’s ongoing management succession plans, the company is announcing the following leadership changes effective March 1.

Andrew Dahlin, currently Executive Vice-President (EVP), Natural Gas & Technical Services, will assume the role of EVP & Chief Operating Officer. Andrew has more than 30 years of industry experience, including 13 years with Cenovus and its predecessor companies.

Eric Zimpfer, currently Senior Vice-President (SVP), U.S. Refining, will become Cenovus’s Head of Downstream, based in Dublin, Ohio and reporting directly to Jon McKenzie. Eric has more than 20 years of U.S. refining experience. He will play an integral role in continuing to improve the reliability and competitiveness of the Downstream business.

John Soini, currently SVP, Major & Capital Projects, will become EVP, Upstream – Thermal & Atlantic Offshore. John has more than 25 years of experience in the energy and power industries.

Susan Anderson, currently SVP, People Services, will become SVP, Legal, General Counsel & Corporate Secretary. Susan has more than 30 years of oil and gas industry experience, with 20 years at Husky Energy in various roles that included Vice-President, Legal.

Reserves

Cenovus’s proved and probable reserves are evaluated each year by independent qualified reserves evaluators. At the end of 2024, Cenovus’s total proved and total proved plus probable reserves were approximately 5.7 billion BOE and 8.5 billion BOE respectively, and total proved and total proved plus probable bitumen reserves were approximately 5.2 billion barrels and 7.7 billion barrels respectively. At year-end 2024, Cenovus had a proved reserves life index of approximately 19 years and a proved plus probable reserves life index of approximately 29 years.

More details about Cenovus’s reserves and other oil and gas information are available in the Advisory and the Management’s Discussion and Analysis (MD&A), Annual Information Form (AIF) and Annual Report on Form 40-F for the year ended December 31, 2024, available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov and Cenovus’s website at cenovus.com under Investors.

Cenovus year-end disclosure documents

Today, Cenovus is filing its interim and audited Consolidated Financial Statements, MD&A and AIF with Canadian securities regulatory authorities. The company is also filing its Annual Report on Form 40-F for the year ended December 31, 2024 with the U.S. Securities and Exchange Commission. Copies of these documents will be available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov and the company’s website at cenovus.com under Investors. They can also be requested free of charge by emailing investor.relations@cenovus.com.

Dividend declarations and share purchases

The Board of Directors has declared a quarterly base dividend of $0.180 per common share, payable on March 31, 2025 to shareholders of record as of March 14, 2025.

In addition, the Board has declared a quarterly dividend on each of the Cumulative Redeemable First Preferred Shares – Series 1, Series 2, Series 5 and Series 7 – payable on March 31, 2025 to shareholders of record as of March 14, 2025 as follows:

Preferred shares dividend summary

Share series	Rate (%)	Amount ($/share)
Series 1	2.577	0.16106
Series 2	5.211	0.32123
Series 5	4.591	0.28694
Series 7	3.935	0.24594

All dividends paid on Cenovus’s common and preferred shares will be designated as “eligible dividends” for Canadian federal income tax purposes. Declaration of dividends is at the sole discretion of the Board and will continue to be evaluated on a quarterly basis.

In the fourth quarter, the company returned $706 million to shareholders, composed of $108 million from its purchase of 4.6 million shares through its normal course issuer bid (NCIB), $348 million through common and preferred share dividends and $250 million through the redemption of Cenovus Series 3 preferred shares. In 2024, Cenovus returned $3.2 billion to shareholders, including $1.4 billion of share purchases through its NCIB, $1.6 billion in common and preferred share dividends, and $250 million through the redemption of the Series 3 preferred shares.

2025 planned maintenance

The following table provides details on planned maintenance activities at Cenovus assets in 2025 and anticipated production or throughput impacts.

Potential quarterly production/throughput impact (Mbbls/d or MBOE/d)

(MBOE/d or Mbbls/d)	Q1	Q2	Q3	Q4	Annualized impact
Upstream
Oil Sands	–	30 – 40	5 – 7	–	10 – 12
Offshore	–	–	4 – 6	–	1 – 2
Conventional	–	–	–	–	–
Downstream
Canadian Refining	–	–	–	–	–
U.S. Refining	7 – 10	35 – 45	2 – 4	6 – 10	13 – 17

Potential turnaround expenses

($ millions)	Q1	Q2	Q3	Q4	Annualized impact
Downstream
Canadian Refining	–	–	–	–	–
U.S. Refining	110 – 135	210 – 240	80 – 95	40 – 50	440 – 520

Conference call today

9 a.m. Mountain Time (11 a.m. Eastern Time)

Cenovus will host a conference call today, February 20, 2025, starting at 9 a.m. MT (11 a.m. ET).

To join the conference call, please dial 1-800-206-4400 (toll-free in North America) or 1-289-514-5005 to reach a live operator who will join you into the call. A live audio webcast will also be available and archived for approximately 30 days.

Advisory

Basis of Presentation

Cenovus reports financial results in Canadian dollars and presents production volumes on a net to Cenovus before royalties basis, unless otherwise stated. Cenovus prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) Accounting Standards.

Barrels of Oil Equivalent

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

Reserves Life Index

Reserves life index is calculated based on reserves for the applicable reserves category divided by annual production.

Product types

Product type by operating segment	Three months ended December 31, 2024	Full year ended December 31, 2024
Oil Sands
Bitumen (Mbbls/d)	608.6	591.3
Heavy crude oil (Mbbls/d)	18.0	17.6
Conventional natural gas (MMcf/d)	11.8	11.1
Total Oil Sands segment production (MBOE/d)	628.5	610.7
Conventional
Light crude oil (Mbbls/d)	4.8	4.9
Natural gas liquids (Mbbls/d)	19.7	21.0
Conventional natural gas (MMcf/d)	560.5	563.8
Total Conventional segment production (MBOE/d)	117.8	119.9
Offshore
Light crude oil (Mbbls/d)	7.5	8.0
Natural gas liquids (Mbbls/d)	12.0	11.0
Conventional natural gas (MMcf/d)	301.0	285.3
Total Offshore segment production (MBOE/d)	69.7	66.6
Total Upstream production (MBOE/d)	816.0	797.2

Forward‐looking Information

This news release contains certain forward‐looking statements and forward‐looking information (collectively referred to as “forward‐looking information”) within the meaning of applicable securities legislation about Cenovus’s current expectations, estimates and projections about the future of the company, based on certain assumptions made in light of the company’s experiences and perceptions of historical trends. Although Cenovus believes that the expectations represented by such forward‐looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Forward‐looking information in this document is identified by words such as “anticipate”, “continue”, “deliver”, “focus”, “plan”, “progress”, “steward”, “target” and “will” or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: Net Debt; returning Excess Free Funds Flow to shareholders; growth plans and projects; delivering long-term shareholder value; production guidance; the optimization project at Foster Creek; steam injection and timing of production at Narrows Lake; production and timing of well pads at Sunrise; installation and commissioning of the Sea Rose FPSO and return of production at White Rose; the installation and commissioning of, and timing of first oil from, the West White Rose project; 2025 planned maintenance; and dividend payments.

Developing forward‐looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally. The factors or assumptions on which the forward‐looking information in this news release are based include, but are not limited to: the allocation of free funds flow; commodity prices, inflation and supply chain constraints; Cenovus’s ability to produce on an unconstrained basis; Cenovus’s ability to access sufficient insurance coverage to pursue development plans; Cenovus’s ability to deliver safe and reliable operations and demonstrate strong governance; and the assumptions inherent in Cenovus’s 2025 corporate guidance available on c enovus.com.

The risk factors and uncertainties that could cause actual results to differ materially from the forward‐looking information in this news release include, but are not limited to: the accuracy of estimates regarding commodity production and operating expenses, inflation, taxes, royalties, capital costs and currency and interest rates; risks inherent in the operation of Cenovus’s business; and risks associated with climate change and Cenovus’s assumptions relating thereto and other risks identified under “Risk Management and Risk Factors” and “Advisory” in Cenovus’s Management’s Discussion and Analysis (MD&A) for the year ended December 31, 202 4.

Except as required by applicable securities laws, Cenovus disclaims any intention or obligation to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. Events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward‐looking information. For additional information regarding Cenovus’s material risk factors, the assumptions made, and risks and uncertainties which could cause actual results to differ from the anticipated results, refer to “Risk Management and Risk Factors” and “Advisory” in Cenovus’s MD&A for the periods ended December 31, 202 4 , and to the risk factors, assumptions and uncertainties described in other documents Cenovus files from time to time with securities regulatory authorities in Canada (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and Cenovus’s website at cenovus.com).

Specified Financial Measures

This news release contains references to certain specified financial measures that do not have standardized meanings prescribed by IFRS Accounting Standards. Readers should not consider these measures in isolation or as a substitute for analysis of the company’s results as reported under IFRS Accounting Standards. These measures are defined differently by different companies and, therefore, might not be comparable to similar measures presented by other issuers. For information on the composition of these measures, as well as an explanation of how the company uses these measures, refer to the Specified Financial Measures Advisory located in Cenovus’s MD&A for the period ended December 31, 2024 (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and on Cenovus’s website at cenovus.com ) which is incorporated by reference into this news release.

Upstream Operating Margin and Downstream Operating Margin

Upstream Operating Margin and Downstream Operating Margin, and the individual components thereof, are included in Note 1 to the interim Consolidated Financial Statements.

Total Operating Margin

Total Operating Margin is the total of Upstream Operating Margin plus Downstream Operating Margin.

	Upstream ⁽⁶⁾			Downstream ⁽⁶⁾			Total
($ millions)	Q4 2024	Q3 2024	Q4 2023	Q4 2024	Q3 2024	Q4 2023	Q4 2024	Q3 2024	Q4 2023
Revenues
Gross Sales	8,240	8,259	7,797	7,837	8,798	8,404	16,077	17,057	16,201
Less: Royalties	(914)	(929)	(902)	—	—	—	(914)	(929)	(902)
	7,326	7,330	6,895	7,837	8,798	8,404	15,163	16,128	15,299
Expenses
Purchased Product	1,000	1,088	663	7,364	8,207	7,888	8,364	9,295	8,551
Transportation and Blending	2,816	2,661	2,894	—	—	—	2,816	2,661	2,894
Operating	842	860	864	866	918	826	1,708	1,778	1,690
Realized (Gain) Loss on Risk Management	(2)	(10)	19	3	(4)	(6)	1	(14)	13
Operating Margin	2,670	2,731	2,455	(396)	(323)	(304)	2,274	2,408	2,151

⁶Found in the December 31, 2024, or the September 30, 2024, interim Consolidated Financial Statements. Revenues and purchased product for Q3 2024 Downstream operations were revised. See note 25 of our December 31, 2024, interim consolidated financial statements.

($ millions)	Upstream ⁽⁶⁾				Downstream ⁽⁶⁾			Total
Year ended December 31,	2024		2023		2024		2023	2024		2023
Revenues
Gross Sales	33,078		31,082		33,618		32,626	66,696		63,708
Less: Royalties	(3,449	)	(3,270	)	—		—	(3,449	)	(3,270	)
	29,629		27,812		33,618		32,626	63,247		60,438
Expenses
Purchased Product	3,674		3,152		30,252		28,273	33,926		31,425
Transportation and Blending	11,331		11,088		—		—	11,331		11,088
Operating	3,489		3,690		3,670		3,201	7,159		6,891
Realized (Gain) Loss on Risk Management	14		12		8		—	22		12
Operating Margin	11,121		9,870		(312	)	1,152	10,809		11,022

Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow

The following table provides a reconciliation of cash from (used in) operating activities found in Cenovus’s Consolidated Financial Statements to Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow. Adjusted Funds Flow per Share – Basic and Adjusted Funds Flow per Share – Diluted are calculated by dividing Adjusted Funds Flow by the respective basic or diluted weighted average number of common shares outstanding during the period and may be useful to evaluate a company’s ability to generate cash.

	Three Months Ended			Twelve Months Ended
($ millions)	December 31, 2024	September 30, 2024	December 31, 2023	December 31, 2024	December 31, 2023
Cash From (Used in) Operating Activities ⁽⁷⁾	2,029	2,474	2,946	9,235	7,388
(Add) Deduct:
Settlement of Decommissioning Liabilities	(64)	(74)	(65)	(234)	(222)
Net Change in Non-Cash Working Capital	492	588	949	1,305	(1,193)
Adjusted Funds Flow	1,601	1,960	2,062	8,164	8,803
Capital Investment	1,478	1,346	1,170	5,015	4,298
Free Funds Flow	123	614	892	3,149	4,505
Add (Deduct):
Base Dividends Paid on Common Shares	(330)	(329)	(261)	(1,255)	(990)
Purchase of Common Shares under Employee Benefit Plan	(43)	—	—	(43)	—
Dividends Paid on Preferred Shares	(18)	(9)	(9)	(45)	(36)
Settlement of Decommissioning Liabilities	(64)	(74)	(65)	(234)	(222)
Principal Repayment of Leases	(80)	(74)	(72)	(299)	(288)
Acquisitions, Net of Cash Acquired	(3)	(4)	(14)	(22)	(515)
Proceeds From Divestitures	(1)	22	—	46	12
Excess Free Funds Flow	(416)	146	471	1,297	2,466

⁷ Found in the December 31, 2024, or the September 30, 2024, interim Consolidated Financial Statements.

Market Capture

Market Capture contains a non-GAAP financial measure and is used in the company’s U.S. Refining segment to provide an indication of margin captured relative to what was available in the market based on widely-used benchmarks. We define Market Capture as Refining Margin divided by the weighted average 3-2-1 market benchmark crack, net of RINs, expressed as a percentage. The weighted average crack spread, net of RINs, is calculated on Cenovus’s operable capacity-weighted average of the Chicago and Group 3 3-2-1 benchmark market crack spreads, net of RINs.

($ millions)	Three months ended December 31, 2024	Three months ended September 30, 2024
Revenues⁽⁸⁾	6,574	7,218
Purchased Product⁽⁸⁾	6,296	6,854
Gross Margin	278	364
Total Processed Inputs (Mbbls/d)	588.4	568.0
Refining Margin ($/bbl)	5.14	6.97
Operable Capacity (Mbbls/d)	612.3	612.3
Operable Capacity by Regional Benchmark (percent)
Chicago 3-2-1 Crack Spread Weighting	81	81
Group 3 3-2-1 Crack Spread Weighting	19	19
Benchmark Prices and Exchange Rate
Chicago 3-2-1 Crack Spread (US$/bbl)	12.12	18.62
Group 3 3-2-1 Crack Spread (US$/bbl)	12.66	18.95
RINs (US$/bbl)	4.02	3.89
US$ per C$1 – Average	0.715	0.733
Weighted Average Crack Spread, Net of RINs ($/bbl)	11.47	20.18
Market Capture (percent)	45	35

⁸ Found in Note 1 of the December 31, 2024, or the September 30, 2024, interim Consolidated Financial Statements. For the three months ended September 30, 2024, amounts reflect certain revisions. See Note 25 of our December 31, 2024, interim consolidated financial statements.

Cenovus Energy Inc.

Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The company is focused on managing its assets in a safe, innovative and cost-efficient manner, integrating environmental, social and governance considerations into its business plans. Cenovus common shares and warrants are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com.

Find Cenovus on Facebook, LinkedIn, YouTube and Instagram.

Cenovus contacts

Investors
Investor Relations general line
403-766-7711

Media
Media Relations general line
403-766-7751

The MIL Network –

February 21, 2025

MIL-OSI USA: Pallone Warns of Devastating Health Care Cuts in Republicans’ Scheme to Fund Billionaire Tax Breaks

Source: United States House of Representatives – Congressman Frank Pallone (6th District of New Jersey)

Energy & Commerce Committee’s Top Democrat Visits Central Jersey Medical Center, Highlights Risks to Medicaid Patients and Community Health Centers

PERTH AMBOY, NJ – Congressman Frank Pallone, Jr. (NJ-06), the Ranking Member of the House Energy and Commerce Committee, visited Central Jersey Medical Center today to sound the alarm on President Trump’s and House Republicans’ plan to slash Medicaid funding—jeopardizing the health care of 1.7 million New Jerseyans and Community Health Centers (CHCs), hospitals, and nursing homes across New Jersey in order to bankroll massive tax cuts for billionaires and big corporations.

“I saw up close today how Central Jersey Medical Center provides essential care—whether it’s preventive services, dental care, or managing chronic conditions—and I know what’s at stake if these cuts go through,” Pallone said. “House Republicans want to gut Medicaid to hand billionaires and corporations another tax break, and the consequences will be devastating. This isn’t about ‘fiscal responsibility’—it’s about ripping health care away from seniors in nursing homes, children, and people with disabilities. Slashing Medicaid would shut down health centers like this one, gut hospitals, and overwhelm emergency rooms. It’s immoral, and I’ll fight it every step of the way. New Jerseyans deserve better—I won’t let them rip away your health care just so Elon Musk can buy another rocket.”

Last week, the House Budget Committee approved a budget resolution including at least $880 billion in Medicaid cuts over the next ten years. These cuts would gut health care coverage for millions while handing giveaways to the ultra-rich. They would also cripple facilities like Central Jersey Medical Center, which provides essential primary, dental, and preventive care to thousands of working-class and low-income people in Perth Amboy and surrounding communities.

House Republicans are hoping to bring the budget resolution up for a vote of the full House as early as next week.

What’s at Stake for New Jersey?

New Jersey’s 24 Community Health Centers provide care at 136 locations statewide, ensuring that nearly two million residents—including Medicaid patients, the uninsured, and underserved communities—have access to doctors, nurses, and preventive care. Medicaid currently covers 1.7 million New Jerseyans, including children, pregnant women, seniors in long-term care, and individuals with disabilities.

Republicans’ proposed Medicaid cuts would destabilize New Jersey’s health care system, pushing more patients into already-strained emergency rooms, increasing uncompensated care costs, and driving up insurance premiums for everyone. Republican proposals, such as so-called “per capita caps” would shift costs onto states – forcing New Jersey to slash services, limit eligibility, and cut provider payments.

The drastic cuts to CHC funding would threaten the viability of health centers like Central Jersey Medical Center, which could be forced to close or severely limit services.

Pallone’s visit to Central Jersey Medical Center was attended by doctors, patients, and local leaders, all of whom echoed Pallone’s concerns about the devastating impact of the new Republicans’ tax scheme.

“The Arc of New Jersey is grateful for Congressman Pallone’s unwavering commitment to protecting the Medicaid program. And that is exactly what we need from all members of Congress. Medicaid is the lifeline program for thousands of individuals with intellectual and developmental disabilities (IDD) living in New Jersey. Any cuts to funding or changes to benefits will absolutely mean a reduction in services, longer wait times for support and a diminished quality of life for those with IDD. We cannot allow a dismantling of Medicaid as it will have a devastating and crushing impact on the state’s most vulnerable,” Sharon Levine, Senior Director, The Arc of NJ

“Advocates for Children of New Jersey has been a longtime advocate for NJ FamilyCare, which now covers nearly 20% of all residents living in the Garden State. This includes more than 820,000 children, ages from birth to 18-years-old and covers about a third of all births annually. Children from poor and low-income families, youth aging out of foster care, and individuals with complex and long-term medical needs rely on this critical health insurance. Any cuts or changes to federal Medicaid funding will have a substantial impact on their health and well-being,” Mary Coogan, President and CEO, Advocates for Children of NJ

“CJMC delivers evidence-based, high-quality care to all New Jersey residents, regardless of their insurance status or their ability to pay. By providing high quality primary care and behavioral health services, CJMC will improve health outcomes and reduced healthcare costs,” Dr. Cynthia Vuittonet.

“Too many New Jerseyans are already struggling to pay for groceries, housing, and medical bills,” said Maura Collinsgru, Director of Policy and Advocacy for New Jersey Citizen Action. “Gutting Medicaid funding will cut essential health services for millions, including pregnant women, people with disabilities, low-income families with children, and seniors in nursing homes. It’s inhumane to consider making these cuts so that billionaires and huge corporations can get another tax break. We urge all our Representatives to stand with Congressman Pallone against any efforts to defund Medicaid.”

Pallone’s Role in Defending Health Care

As Ranking Member of the House Energy and Commerce Committee, which oversees Medicaid and CHC funding, Pallone is a critical last line of defense against Republican attacks on health care access. He has led efforts to protect Medicaid funding, defend Americans’ health care coverage, and expand support for Community Health Centers.

The House Energy and Commerce Committee is expected to soon take up elements of the Republican reconciliation plan, including deep Medicaid cuts. Pallone has vowed to lead the fight against these attacks. He is committed to protecting the 70 million Americans on Medicaid and ensuring that Community Health Centers and hospitals are not sacrificed for tax breaks for Trump’s billionaire friends.

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: Reps. Lee, Amodei Introduce Bipartisan Legislation to Expand Health Care for NV Veterans’ Exposed to Radiation and Toxins

Source: United States House of Representatives – Congresswoman Susie Lee (NV-03)

WASHINGTON – Congresswoman Susie Lee (NV-03) and Republican Congressman Mark Amodei (NV-04) introduced bipartisan legislation expanding access to health care for Nevada veterans who have suffered from exposure to radiation and toxic materials as a result of nuclear testing in Nevada. The Presumption for Radiation or Toxin Exposure Coverage for Troops (PROTECT) Act would establish a presumption that certain veterans were exposed to radiation and other toxins at the Nevada Test and Training Range (NTTR).

In 2000, Congress passed the Energy Employee Occupational Illness Compensation Act (EEOICPA) which entitled nuclear weapons workers as well as some Department of Energy personnel to receive free medical treatment and fair financial compensation for specific illnesses they contracted as a result of nuclear weapons production and testing. However, it did not cover veterans not involved in DOE operations or that were otherwise omitted for national security reasons. This bipartisan legislation would expand similar VA benefits to veterans that were assigned to impacted areas of NTTR, offering them the potentially life-saving medical treatment and financial compensation they need and deserve.

“Our men and women in uniform make countless sacrifices to keep our nation safe, so it’s our duty to protect them from invisible enemies like toxic radiation exposure,” said Congresswoman Susie Lee. “I helped pass the bipartisan PACT Act to do just that, and I’m continuing that work to get these veterans the long overdue care they deserve. This legislation will help save lives and bring justice to thousands of veterans who proudly served our country.”

“Veterans, who made such selfless sacrifices for our nation, should not have to move mountains to prove they are suffering as a result of their service,” said Rep. Mark Amodei. “Yet, hundreds of veterans who were stationed at the NTTR during that time frame have been denied the benefits they rightfully earned because exposure to toxic chemicals is microscopic, often referred to as the invisible enemy. I will continue to amplify the indisputable access to care our veterans deserve throughout their post-service lives.”

The legislation is endorsed by The Invisible Enemy, a veterans-rights organization composed of veterans and downwinders fighting for the thousands of military personnel who suffered or died from exposure to toxic radiation and materials from decades of nuclear weapons testing at NTTR. You can read more about their work here.

###

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: Chairmen Guthrie and Palmer Announce Oversight & Investigations Subcommittee Hearing Probing the Biden Administration’s Energy and Environment Spending

Source: United States House of Representatives – Congressman Gary Palmer (R-AL)

WASHINGTON, D.C. – Today, Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, and Congressman Gary Palmer (AL-06), Chairman of the Subcommittee on Oversight & Investigations, announced the first hearing of the 119th Congress for the Subcommittee on Oversight & Investigations titled Examining the Biden Administration’s Energy and Environment Spending Push.

“In its final months, the Biden-Harris Administration handed out billions of dollars in energy and environment grants and loans at an unprecedented pace, exacerbating concerns that appropriate vetting and due diligence reviews may not have occurred for some of these awards,” said Chairmen Guthrie and Palmer. “This hearing will provide an opportunity for the Committee to examine this surge in spending and help identify potential misuse of federal funds.”

Subcommittee on Oversight and Investigations hearing titled Examining the Biden Administration’s Energy and Environment Spending Push.

WHAT: Subcommittee on Oversight and Investigations hearing examining Biden-Harris Administration energy and environment spending.

DATE: Wednesday, February 26, 2025

TIME: 10:30 AM ET

LOCATION: 2322 Rayburn House Office Building

This notice is at the direction of the Chairman. The hearing will be open to the public and press and will be livestreamed online at energycommerce.house.gov. If you have any questions concerning this hearing, please contact Calvin Huggins at Calvin.Huggins1@mail.house.gov. If you have any press-related questions, please contact Zach Bannon at Zach.Bannon@mail.house.gov.

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: Casten Statement on Trump’s Power Grab Over FERC, SEC, Independent Agencies

Source: United States House of Representatives – Representative Sean Casten (IL-06)

February 19, 2025

Washington, D.C. — U.S. Congressman Sean Casten (IL-06) released the following statement regarding President Donald Trump’s executive order to strip federal agencies, such as the Federal Energy Regulatory Commission (FERC) and the Securities and Exchange Commission (SEC), of their independence:

“The president’s latest unlawful and unconstitutional executive order is a move straight out of the Project 2025 playbook that serves no other purpose than to bend independent agencies to his personal will, setting aside over a century of precedent that these agencies rise above politics and put the needs of the American people first.

“Stripping an agency like FERC of its independence is a gift to fossil fuel companies that know they cannot financially compete with clean energy on their merits. The president has made exceedingly clear that he prioritizes the wants of energy producers over the needs of energy consumers. His actions will directly lead to higher energy costs for the American people while simultaneously driving up profits for his puppeteers in the oil and gas industry.

“The SEC and other financial institutions have operated independently for decades, ensuring they are focused on safeguarding American investors, consumers, and our financial system. Forcing these agencies to gain approval from the White House before issuing rulemakings does nothing but protect the president’s personal interests while putting American’s hard-earned dollars at risk.”

###

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: Congressman Harris Sends Letter To Constituents On The High Costs Of Energy In Maryland

Source: United States House of Representatives – Congressman Andy Harris (MD-01)

Washington, D.C. – Congressman Harris, M.D. sent the following letter to his constituents in response to numerous concerns about the rising costs of energy in Maryland.

The letter can be read below:

Dear Friend,

For the last four years, the Biden-Harris administration implemented anti-domestic energy policies, suspended oil and gas leasing on federal land, and enforced costly energy regulations.

In Maryland, the General Assembly followed suit by passing their own version of the “Green New Deal Scam” and mandating utilities to add new taxes and fees to your power bills.

The result? Marylanders are struggling more than ever to afford these unnecessary, sky-high energy bills. Nearly every day, my constituents call to inform me that their recent energy bills have increased resulting in staggering charges compared to previous winter seasons. This cannot continue.

In Congress, I’m fighting to LOWER your energy bills. Last week, the House of Representatives passed the Protecting American Energy Production Act, which promotes domestic energy production and allows for fewer regulations on natural gas production.

Since taking office, the Trump administration has made energy a focus; declaring a national energy emergency, promoting domestic fossil energy production, and rolling back red-tape regulations that increase energy prices.

These actions will help energy production nationally but leaders in the Maryland General Assembly must ACT. They should no longer put “green new deal” policies above common sense.

The Maryland General Assembly should also work expeditiously to halt the expected June 1, 2025, closures of the Brandon Shores and Wagner power plants, two of our last remaining in-state energy sources. Instead, the General Assembly is focusing their “Green New Scam” wish list on attempts to expand solar on rural and agricultural land.

Leaders in Maryland should listen to their constituents; they should understand the frustration with high energy bills and the fact that this was brought upon them by the actions of the Maryland General Assembly, which has mandated expensive, undependable sources of energy — including offshore wind.

Recently, I sat down with Spotlight on Maryland to reiterate my concerns about the high costs of energy in Maryland.

The letter concludes by listing several resources constituents can utilize if they are experiencing high energy costs in their homes or businesses.

For media inquiries, please contact Anna Adamian at Anna.A@mail.house.gov

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: Pallone Slams Trump’s Layoffs to 9/11 First Responder Health Care Program Workers, Calls It a Betrayal of Heroes

Source: United States House of Representatives – Congressman Frank Pallone (6th District of New Jersey)

PISCATAWAY, NJ – Congressman Frank Pallone, Jr., Ranking Member of the House Energy and Commerce Committee, is calling out the Trump Administration’s reckless decision to gut the World Trade Center Health Program (WTCHP), a move that puts the health of 9/11 first responders and survivors at risk. The Administration has already laid off up to 20% of program staff—jeopardizing the program’s ability to provide life-saving care, including at Rutgers’ Environmental & Occupational Health Sciences Institute (EOHSI) in Piscataway, which has treated thousands of responders and survivors over the years.

Pallone has already heard from constituents who are alarmed by the cuts, including Frank Granger from Piscataway, a 9/11 responder who developed terminal cancer due to his exposure at Ground Zero. In a message submitted through Pallone’s website, Granger wrote:

“Hello sir. Thank God we are fighting back. I am a 9/11 responder who developed terminal cancer as a result of my time spent at Ground Zero and I’m concerned among other things that my 9/11 health care will be taken away. Please fight this tyrant, sir. Americans like myself are behind you 100%.”

“These latest DOGE purges are an absolute disgrace,” said Pallone. “Thousands of responders and survivors depend on the care they receive through the World Trade Center Health Program, including many treated right here in New Jersey at Rutgers’ EOHSI clinic. Trump’s decision to allow his lackey Elon Musk to eliminate these critical jobs isn’t just cruel, it’s a betrayal of the heroes who risked everything to protect our country after 9/11. First responders shouldn’t have to beg for the care they earned. I fought to create this program, and I will fight like hell to protect it.”

Pallone has been a longtime champion for 9/11 first responders. He helped negotiate the House passage of the bipartisan James Zadroga 9/11 Health and Compensation Act of 2010, which established the WTCHP and the Nationwide Provider Network. The law also created the Rutgers clinic, which continues to provide critical medical care to responders across the region.

MIL OSI USA News –

February 21, 2025
MIL-OSI Australia: Solar farm in Raywood incident

Source: Victoria Country Fire Authority

CFA responded to a fire on a solar farm in Raywood, outside Bendigo at about 5.50pm on Thursday 20 February.

Ten CFA units from Bridgewater, Campbells Forest, Eaglehawk, Golden Square, Raywood and Woodvale attended the scene.

FRV, VicPol and Powercor were also on scene.

A transformer caught fire on a moderately sized commercial solar farm and crews used foam to extinguish it.

A warning was put out to the Raywood community because of the black toxic smoke drifting over the township.

Access was difficult for crews because of the density of the smoke.

The scene was under control at about 8.30pm. Energy Safe Victoria is investigating the cause.

Submitted by CFA media

MIL OSI News –

February 20, 2025
MIL-OSI USA: Higgins Legislation Forces Federal Support for Oil and Gas Leasing
Source: United States House of Representatives – Congressman Clay Higgins (R-LA)

WASHINGTON, D.C. – Congressman Clay Higgins (R-LA) reintroduced the Federal Lands and Waters Leasing Transparency Act, which would hold energy regulators accountable and streamline the federal leasing process for lands and waters.

In the past few years, the oil and gas industry has experienced significant challenges during the leasing process managed by the Bureau of Ocean Energy Management (BOEM) and the Bureau of Land Management (BLM). The current evaluation methods by BOEM do not accurately reflect the true market value of resources, leading to frequent rejections of industry bids with little explanation. This causes uncertainty and discourages investments in new energy exploration and production.

The legislation would:
- Require the Secretary of Interior to provide detailed reports to bidders if their bids are rejected, ensuring transparency by explaining how the bid compares to various valuation metrics;
- Amends the Mineral Leasing Act to prevent court orders from delaying the issuance of onshore oil and gas leases unless said lease violates federal law, thereby streamlining the leasing process;
- Ensures that civil actions that challenge offshore lease sales do not invalidate the leases or delay related approvals and applications.
“Every FedGov bureaucracy will serve the interests of the American people or MAGA Republicans will aggressively restructure that bureaucracy. Through Executive Branch action and Congressional legislation, every alphabet agency is being forced to comply with the America First agenda. The American energy industry produces clean, affordable, abundant, transportable energy for the entire world, and I will continue to fight for American energy dominance,” said Congressman Higgins.

Read the legislation here.
MIL OSI USA News –
February 20, 2025
MIL-OSI Submissions: Energy Sector – Announcement of cash dividend per share in NOK for third quarter 2024 – Equinor

Source: Equinor

20 FEBRUARY 2025 – Equinor ASA announced on 24 October 2024 an ordinary cash dividend per share of USD 0.35 and an extraordinary cash dividend per share of USD 0.35 for third quarter 2024.

The NOK cash dividend per share is based on average USDNOK fixing rate from Norges Bank in the period plus/minus three business days from record date 14 February 2025, in total seven business days.

Average Norges Bank fixing rate for this period was 11.1820. Total cash dividend for third quarter 2024 of USD 0.70 per share is consequently NOK 7.8274 per share.

On 28 February 2025, the cash dividend will be paid to relevant shareholders on Oslo Børs (Oslo Stock Exchange) and to holders of American Depositary Receipts (“ADRs”) on New York Stock Exchange.

This information is published in accordance with the requirements of the Continuing Obligations and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

MIL OSI – Submitted News –

February 20, 2025
MIL-OSI: Equinor ASA: Announcement of cash dividend per share in NOK for third quarter 2024

Source: GlobeNewswire (MIL-OSI)

Equinor ASA (OSE: EQNR, NYSE: EQNR) announced on 24 October 2024 an ordinary cash dividend per share of USD 0.35 and an extraordinary cash dividend per share of USD 0.35 for third quarter 2024.

The NOK cash dividend per share is based on average USDNOK fixing rate from Norges Bank in the period plus/minus three business days from record date 14 February 2025, in total seven business days.

Average Norges Bank fixing rate for this period was 11.1820. Total cash dividend for third quarter 2024 of USD 0.70 per share is consequently NOK 7.8274 per share.

On 28 February 2025, the cash dividend will be paid to relevant shareholders on Oslo Børs (Oslo Stock Exchange) and to holders of American Depositary Receipts (“ADRs”) on New York Stock Exchange.

This information is published in accordance with the requirements of the Continuing Obligations and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

The MIL Network –

February 20, 2025

Submitted by	CFA media

MIL-OSI: SBM Offshore Full Year 2024 Earnings

Source: GlobeNewswire (MIL-OSI)

Amsterdam, February 20, 2025

Record-level results, increasing total shareholder returns

Highlights

Record Directional¹ Revenue of US$6.1 billion (+35%), in line with guidance
Record Directional EBITDA of US$1.9 billion (+44%), in line with guidance
Record US$35.1 billion Directional backlog; US$9.5 billion or EUR51.6/share² Directional net cash backlog³
30% increase in cash return to US$1.59 per share⁴: US$155 million dividend⁵; US$150 million share repurchase⁶
US$1.7 billion cash return to shareholders over the coming 6 years
2025 Directional Revenue guidance of above US$4.9 billion
2025 Directional EBITDA guidance of around US$1.55 billion
Completion of FPSO Prosperity and Liza Destiny sales in Q4 2024
FPSO Almirante Tamandaré achieved first oil on February 15, 2025

SBM Offshore’s 2024 Annual Report can be found on its website under: Annual Reports – SBM Offshore

Øivind Tangen, CEO of SBM Offshore, commented:

“SBM Offshore has delivered excellent results in 2024 with a record-level directional revenue of US$6.1 billion and record-level directional EBITDA of US$1.9 billion, reflecting three new awards and the purchases of FPSOs Prosperity and Liza Destiny by ExxonMobil Guyana. Thanks to the addition of three new awards, we ended the year with a record US$35.1 billion backlog. From this we expect to generate US$9.5 billion net cash, equivalent to almost 52 euro per share². Based on this strong performance, we are increasing our fixed cash return by 30% to US$1.59 per share⁴ through a proposed US$155 million dividend⁵ and US$150 million share repurchase⁶ program. At this level we will deliver a minimum US$1.7 billion cash return to shareholders over the next 6 years.

Our Fast4Ward^® program is setting the pace for deepwater developments. FPSO Almirante Tamandaré achieved first oil on February 15, 2025. This vessel, which benefits from emission reduction technologies, is the largest operating unit in Brazil. Two additional units are on track to achieve first oil in 2025. First, FPSO Alexandre de Gusmão which sailed-away at the end of 2024, followed by FPSO ONE GUYANA. These three units have a combined capacity of 655,000 barrels of oil per day. With these achievements, we are further de-risking our construction portfolio.

We strive for excellence both in terms of project execution and asset management. Our lifecycle approach in the FPSO market is unique and the focus on continuous improvement is setting a strong foundation for success. The outlook for new deepwater projects is strong given their low break-even prices and low emission intensity. In the next three years, we see 16 projects in the
Company’s core market of large and complex FPSOs, driven by the promising prospects in Brazil, Guyana, Suriname and Namibia. We have ordered our 10^th MPF hull giving us two hulls to support tendering activities. We will remain disciplined in selecting the highest quality projects.

As the world’s ocean-infrastructure expert we are using our experience to further diversify and decarbonize the solutions we offer. In 2024, we created a joint venture, Ekwil, with Technip Energies to enhance our floating offshore wind product offering, and in early 2025 we completed a minority equity investment in Ocean-Power to offer lower-emission power solutions. We are now able to offer a market ready near-zero emission FPSO and were recently awarded a contract by Petrobras to qualify SBM’s Carbon Capture Module technology for FPSOs.”

Financial Overview⁷

	Directional			IFRS

in US$ million	FY 2024	FY 2023	% Change	FY 2024	FY 2023	% Change
Revenue	6,111	4,532	35%	4,784	4,963	-4%
Lease and Operate	2,369	1,954	21%	2,074	1,563	33%
Turnkey	3,743	2,578	45%	2,710	3,400	-20%
EBITDA	1,896	1,319	44%	1,041	1,239	-16%
Lease and Operate	1,261	1,124	12%	842	695	21%
Turnkey	724	296	145%	287	646	-56%
Other	(89)	(101)	-12%	(88)	(101)	-13%
Profit attributable to Shareholders	907	524	73%	150	491	-69%
Earnings per share (US$ per share)	5.08	2.92	74%	0.84	2.74	-69%

in US$ billion	FY 2024	FY 2023	% Change	FY 2024	FY 2023	% Change
Pro-forma Backlog	35.1	30.3	16%	–	–	–
Net Debt	5.7	6.7	-15%	8.1	8.7	-7%

Directional revenue increased by 35% to US$6,111 million compared with US$4,532 million in 2023. This increase is driven by the Directional Turnkey revenue which rose to US$3,743 million in 2024 compared with US$2,578 million in 2023. This 45% increase stems from (i) the sale of FPSOs Prosperity and Liza Destiny completed respectively in November and December 2024, (ii) the progress on awarded contracts for the FPSOs Jaguar and GranMorgu, (iii) the 13.5% divestment to CMFL completed in October 2024, and (iv) the increased support to the fleet through brownfield projects. This increase was partly offset by a reduction in charter revenues following (i) the sale of FPSO Liza Unity in November 2023, (ii) the completion of FPSO Prosperity during the last quarter of 2023 as well as a delay in the start-up of FPSO Sepetiba early 2024, and (iii) a comparatively lower level of progress on both FPSOs Almirante Tamandaré and Alexandre de Gusmão as those projects approached completion in 2024.

Directional Lease and Operate revenue stood at US$2,369 million compared with US$1,954 million in the year-ago period. This 21% increase mainly reflects (i) FPSO Prosperity joining the fleet during the last quarter of 2023 and Sepetiba joining the fleet in January 2024, (ii) a higher contribution of FPSOs N’Goma, Saxi Batuque and Mondo following the acquisition of interests held by Sonangol mid-2024, and (iii) an increase in reimbursable scope. This was partly offset by FPSO Liza Unity only contributing in 2024 as an operating contract following the purchase of the unit by ExxonMobil Guyana at the end of 2023.

Directional EBITDA amounted to US$1,896 million, which is a 44% year-on-year increase compared with US$1,319 million in 2023. This was mostly attributable to the Turnkey segment which increased by over US$400 million to US$724 million in 2024. Directional Turnkey EBITDA was mainly impacted by (i) the same drivers as for Directional Turnkey revenue (except that being at relative early stages of completion, FPSO Jaguar only contributed marginally to Turnkey EBITDA and FPSO GranMorgu not at all), and (ii) a reduced investment on Floating Offshore Wind projects following the implementation of Ekwil Joint Venture in partnership with Technip Energies.

Directional Lease and Operate EBITDA stood at US$1,261 million for the year-ended 2024 compared with US$1,124 million in the previous year. The 12% increase reflects (i) the same key factors as for Directional Lease and Operate revenue, (ii) the net gain on the acquisition of interests held by Sonangol in 3 FPSOs and the divestment in the parent company of the Paenal shipyard in Angola, and (iii) the dividends related to FPSO N’Goma partially offset by (iv) additional non-recurring maintenance costs for the fleet under operation.

The other non-allocated costs charged to EBITDA amounted to US$(89) million in 2024, a US$(12) million improvement compared with the previous period mainly due to the one-off impact of US$11 million of restructuring costs in 2023.

During the last quarter of 2024, the Company performed a review of revised estimates of cash flow, maintenance and repair costs. Based on this analysis, actual values and future cash flows related to FPSO Cidade de Anchieta were re-estimated leading to an impairment charge of US$(39) million, accounted for in the 2024 results.

Directional net profit increased by over 70% standing at US$907 million in 2024, or US$5.08 per share, mainly reflecting the increase in Directional EBITDA.

Liquidity, Funding and Directional Net Debt

The Company’s financial position has remained strong as a result of the cash flow generated by the fleet, as well as the positive contribution of the Turnkey activities.

Directional Net debt decreased by US$(936) million to US$5,719 million at year-end 2024. This was driven by the repayment of the FPSOs Prosperity and Liza Destiny financings, the proceeds from the sale of the vessels and the Lease and Operate segment’s strong operating cash flow. This was partially offset by drawings on project financing facilities to fund the construction portfolio. The Company drew on the project finance facilities for FPSO ONE GUYANA, FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão; additionally, the US$1.5 billion construction financing for FPSO Jaguar was signed and partly drawn in November 2024.

More than a third of the Company’s Directional debt for the year-ended 2024 consisted of non-recourse project financing (US$2.2 billion) in special purpose investees. The remainder (US$4 billion) consisted mainly of borrowings to support the ongoing construction of 3 FPSOs which will become non-recourse following achievement of first oil. The project loan for FPSO Jaguar will be repaid following completion of construction. The Company’s RCF was drawn for US$500 million as at December 31, 2024 and the Revolving Credit Facility for MPF hull financing was drawn for US$89 million.

Directional cash and cash equivalents amounted to US$606 million and lease liabilities totaled US$93 million at December 31, 2024.

Cash and undrawn committed credit facilities amount to US$2,639 million at December 31, 2024.

Directional Pro-Forma Backlog

Change in ownership scenarios and lease contract duration have the potential to significantly impact the Company’s future cash flows, net debt balance as well as the profit and loss statement. The Company therefore provides a pro-forma Directional backlog based on the best available information regarding ownership scenarios and lease contract duration for the various projects.

The pro-forma Directional backlog at the end of December 2024 increased by US$4.8 billion to a total of US$35.1 billion. This was mainly the result of (i) the FPSO Jaguar contract awarded in April 2024, (ii) the FSO Trion contract awarded in August 2024, and (iii) the FPSO GranMorgu contract awarded in November 2024, partially offset by (iv) turnover for the period which consumed approximately US$6.1 billion of backlog (including the sale of FPSO Prosperity completed in November 2024 and the sale of FPSO Liza Destiny completed in December 2024, in advance of the initial lease terms which were respectively in November 2025 and in December 2029), and (v) the 13.5% divestment to CMFL completed in October 2024, which was not reflected in the pro-forma Directional backlog end of 2023. The Company’s backlog provides cash flow visibility up to 2050.

in US$ billion	Turnkey	Lease & Operate	Total
2025	2.6	2.3	4.9
2026	1.6	2.6	4.2
2027	3.3	2.1	5.4
Beyond 2028	0.2	20.3	20.5
Total pro-forma Directional backlog	7.7	27.3	35.1

The pro-forma Directional backlog at the end of 2024 reflects the following key assumptions:

The FPSO ONE GUYANA contract covers a maximum lease period of 2 years, within which the ownership of the FPSO will transfer to the client. The impact of the subsequent sale is reflected in the Turnkey backlog.
The FPSO Jaguar contract awarded to the Company in April 2024 covers the construction period within which the FPSO ownership will transfer to the client and is reported in the Turnkey backlog.
10 years of operations and maintenance are considered for FPSOs Liza Destiny, Liza Unity, Prosperity and ONE GUYANA following signature of the Operations & Maintenance Enabling Agreement in 2023. Regarding FPSO Jaguar, the pro-forma Directional backlog includes the operating and maintenance scope for 10 years as it has been agreed in principle, pending a final work order. This is consistent with prior years.
The FPSO GranMorgu contract awarded to the Company in November 2024 covers the construction period within which the FPSO ownership will transfer to the client and is reported in the Turnkey backlog.
The FSO Trion contract awarded to the Company in August 2024 is considered for 20 years in lease and operate contracts at the Company ownership share at year-end (100%).
The transaction with MISC Berhad related to the FPSO Espírito Santo and FPSO Kikeh announced on September 6, 2024, and completed on January 31, 2025, has been reflected in the pro-forma Directional backlog.

Project Review and Fleet Operational Update

Project	Client/Country	Contract	SBM Share	Capacity, Size	Percentage of Completion	Project delivery
FPSO *Alexandre de Gusmão*	Petrobras Brazil	22.5-year L&O	55%	180,000 bpd	>75%	2025
FPSO *ONE GUYANA*	ExxonMobil Guyana	2-year BOT	100%	250,000 bpd	>75%	2025
FPSO *Jaguar*	ExxonMobil Guyana	Sale & Operate	100%	250,000 bpd	>25% <50%	2027
FSO Trion	Woodside	20-year Lease	100%	n/a	<25%	n/a⁸
FPSO *GranMorgu*	TotalEnergies	Sale & Operate	52%	220,000 bpd	<25%	2028

Projects are on track with one major delivery achieved in early 2025. After successful completion of the offshore commissioning activities, FPSO Almirante Tamandaré achieved first oil on February 15, 2025. An update on the individual ongoing projects is provided below considering the latest known circumstances.

FPSO Alexandre de Gusmão – In December 2024, the vessel safely departed from the yard in China after successful completion of the onshore topsides’ integration and commissioning phase. The FPSO is on its way to Brazil. First oil is expected mid-2025.

FPSO ONE GUYANA – Integration activities are completed and project teams are finalizing commissioning activities. First oil is expected in the second half of 2025.

FPSO Jaguar – The Fast4Ward^® MPF hull has been safely delivered and arrived in Singapore in preparation for the remaining vessel activities. The topside modules fabrication in Singapore continues as planned. First oil is expected in 2027.

FSO Trion – Engineering and procurement are progressing in line with project schedule.

FPSO GranMorgu – The Fast4Ward^® MPF hull has been safely delivered. Engineering and procurement are progressing in line with project schedule.

Fast4Ward^®MPF hulls – Under the Company’s successful Fast4Ward^® program, the 10^th MPF hull has been ordered. 4 Fast4Ward^® MPF hulls are in operation, another 4 allocated to projects and 2 reserved as part of tendering activities driven by the strong FPSO market outlook.

Contract extension – The Company has agreed a contract extension related to the lease and operation of FPSO Saxi Batuque up to June 2026.

Fleet Uptime – The fleet’s uptime was 95.9% in 2024.

Safety and Sustainability

Safety – The Total Recordable Injury Frequency Rate (“TRIFR”) year-to-date was 0.10, 17% below the yearly target of below 0.12⁹, notwithstanding the high level of activity.

Fleet emissions – For 2024, the Company set a target to further optimize operational excellence on the FPSOs for which it provides operations and maintenance services amounting to a maximum absolute volume of gas flared below 1.57 mmscft/d as an overall FPSO fleet average during the year. As of December 31, 2024, SBM Offshore outperformed this target with the actual being 1.33 mmscft/d, a 15% improvement compared with 2024 target and mainly driven by a continued focus on reducing the number of unplanned events in its operated fleet.

Sustain-2 Notation – FPSO Liza Unity is the 1^st FPSO which has received a Sustain-2 Notation by American Bureau of Shipping. This sustainability certificate recognizes the Company’s efforts in minimizing environmental impacts over the lifecycle of the FPSO including the use of low carbon technologies as well as the focus on workers’ wellbeing.

ESG ratings – In recognition of the Company’s continued focus on sustainability, MSCI has improved SBM Offshore’s rating from AA in 2023 to AAA in 2024 and Sustainalytics included the Company in its 2024 ESG Industry Top Rated, with the Company ranking 2^nd out of 106 industry peers.

Sustainable recycling – The Deep Panuke Production Field Center recycling project reached completion in Nova Scotia, Canada, in early 2024 with 97% of the waste materials were sold, recycled or reused and the remainder 3% was safely disposed of. As for the FPSO Capixaba project, following the handover to M.A.R.S., the Company continues to monitor the safe execution of the decommissioning which is expected to reach completion in 2026.

Blue Economy

SBM Offshore is a blue economy company aiming to manage ocean resources for economic growth while preserving ecosystems. Using its deepwater expertise, the Company is advancing technologies focusing on decarbonizing and diversifying its ocean infrastructure solutions. Ranging from floating offshore wind to offshore hydrogen and ammonia, SBM Offshore remains selective and disciplined in developing innovative solutions and investing in new ocean infrastructure solutions.

Provence Grand Large – The three floating offshore wind turbines that were installed by SBM Offshore at the end of 2023 for the Provence Grand Large project, jointly owned by EDF Renewables and Maple Power, were fully commissioned and started production in 2024.

Floventis Energy Ltd – In December 2024, SBM Offshore reached an agreement with Cierco Energy to sell its shares in the joint venture company Floventis Energy Ltd, thus transferring the ownership of both Cademo and Llŷr Floating Wind projects to Cierco Energy. As planned, following the advancement of these pioneering projects and acquiring valuable knowledge in the offshore wind market, the Company will continue to concentrate its efforts on the remaining two larger scale projects in its portfolio.

emissionZERO^®program – SBM Offshore continues to address FPSO emissions reduction through its emissionZERO^® program and is offering a market-ready near zero emission FPSO for 2025, featuring advanced technologies such as carbon capture, combined cycle gas turbines and deepwater intake risers.

Carbon Capture Module – SBM Offshore has been awarded a contract by Petrobras to qualify SBM’s Carbon Capture Module technology for FPSOs. The Carbon Capture Module for post combustion removal of CO₂ from gas turbine exhaust gasses on FPSO’s has been developed in partnership with Mitsubishi Heavy Industries, Ltd.

Blue Power Hub – With the aim to decarbonize the offshore power generation sector, SBM Offshore signed in December 2024 an investment agreement with the Norwegian company Ocean-Power AS to develop and commercialize offshore power generation units with CO₂ capture and storage. This investment has been completed in early 2025.

Capital allocation and Shareholder Returns

The Company’s shareholder returns policy is to maintain a stable annual cash return to shareholders which grows over time, with flexibility for the Company to make such cash return in the form of a cash dividend and the repurchase of shares. Determination of the annual cash return is based on the Company’s assessment of its underlying cash flow position. The Company prioritizes a stable cash distribution to shareholders and funding of growth projects, with the option to apply surplus capital towards incremental cash returns to shareholders.

As a result, following review of its cash flow position and forecast, the Company intends to pay US$1.59 per share through a proposed US$155m dividend⁵ (EUR150 million equivalent or US$0.88 per share⁴) and US$150 million (EUR141 million equivalent) share repurchase program⁶. This represents an increase of 30% compared with 2024. The objective of the share buyback program would be to reduce share capital and provide shares for regular management and employee share programs (maximum US$25 million). Shares repurchased as part of the cash return will be cancelled.

The share repurchase program will be launched after the current share repurchase program has ended. The dividend will be proposed at the Annual General Meeting on April 9, 2025.

Guidance

The Company’s 2025 Directional revenue guidance is above US$4.9 billion of which above US$2.2 billion is expected from the Lease and Operate segment and around US$2.7 billion from the Turnkey segment.

2025 Directional EBITDA guidance is around US$1.55 billion for the Company.

Conference Call

SBM Offshore has scheduled a conference call together with a webcast, which will be followed by a Q&A session, to discuss the Full Year 2024 Earnings release.

The event is scheduled for Thursday February 20, 2025, at 10.00 AM (CET) and will be hosted by Øivind Tangen (CEO) and Douglas Wood (CFO).

Interested parties are invited to register prior the call using the link: Full Year 2024 Earnings Conference Call

Please note that the conference call can only be accessed with a personal identification code, which is sent to you by email after completion of the registration.

The live webcast will be available at: Full Year 2024 Earnings Webcast

A replay of the webcast, which is available shortly after the call, can be accessed using the same link.

Corporate Profile

SBM Offshore is the world’s deepwater ocean-infrastructure expert. Through the design, construction, installation, and operation of offshore floating facilities, we play a pivotal role in a just transition. By advancing our core, we deliver cleaner, more efficient energy production. By pioneering more, we unlock new markets within the blue economy.

More than 7,800 SBMers collaborate worldwide to deliver innovative solutions as a responsible partner towards a sustainable future, balancing ocean protection with progress.

For further information, please visit our website at www.sbmoffshore.com.

Financial Calendar	Date	Year
Annual General Meeting	April 9	2025
First Quarter 2025 Trading Update	May 15	2025
Half Year 2025 Earnings	August 7	2025
Third Quarter 2025 Trading Update	November 13	2025
Full Year 2025 Earnings	February 26	2026

For further information, please contact:

Investor Relations

Wouter Holties
Corporate Finance & Investor Relations Manager

Media Relations

Giampaolo Arghittu
Head of External Relations

Market Abuse Regulation

This press release may contain inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Disclaimer

Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those in such statements. These statements may be identified by words such as ‘expect’, ‘should’, ‘could’, ‘shall’ and / or similar expressions. Such forward-looking statements are subject to various risks and uncertainties. The principal risks which could affect the future operations of SBM Offshore N.V. are described in the ‘Impacts, Risks and Opportunities’ section of the 2024 Annual Report.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results and performance of the Company’s business may vary materially and adversely from the forward-looking statements described in this release. SBM Offshore does not intend and does not assume any obligation to update any industry information or forward-looking statements set forth in this release to reflect new information, subsequent events or otherwise.

This release contains certain alternative performance measures (APMs) as defined by the ESMA guidelines which are not defined under IFRS. Further information on these APMs is included in the 2024 Annual Report, available on our website Annual Reports – SBM Offshore.

Nothing in this release shall be deemed an offer to sell, or a solicitation of an offer to buy, any securities. The companies in which SBM Offshore N.V. directly and indirectly owns investments are separate legal entities. In this release “SBM Offshore” and “SBM” are sometimes used for convenience where references are made to SBM Offshore N.V. and its subsidiaries in general. These expressions are also used where no useful purpose is served by identifying the particular company or companies.

“SBM Offshore^®“, the SBM logomark, “Fast4Ward^®”, “emissionZERO^®” and “F4W^®” are proprietary marks owned by SBM Offshore.

¹ Directional reporting, presented in the Financial Statements under section 4.3.2 Operating Segments and Directional Reporting, represents a pro-forma accounting policy, which treats all lease contracts as operating leases and consolidates all co-owned investees related to lease contracts on a proportional basis based on percentage of ownership. This explanatory note relates to all Directional reporting in this document.
² Based on the number of shares outstanding and exchange rate EUR/US$ of 1.039 at December 31, 2024.

³ Reflects a pro-forma view of the Company’s Directional backlog and expected net cash from Turnkey, Lease and Operate and Build Operate Transfer sales after tax and debt service.
⁴ Based on the number of shares outstanding at December 31, 2024. Dividend amount per share depends on number of shares entitled to dividend.
⁵ Equivalent of EUR150 million based on the EUR/US$ exchange rate on February 11, 2025. Dividends will be paid in Euro provided that the minimum Euro dividend shall amount to EUR150 million.
⁶ Including maximum US$25 million for management and employee share plans.

⁷ Numbers may not add up due to rounding.
⁸ Project delivery not disclosed by the client.

⁹ Measured per 200,000 work hours.

Attachment

SBM Offshore Full Year 2024 Earnings

The MIL Network –

February 20, 2025

MIL-OSI Australia: Sky News Regional Breakfast

Source: Australian Ministers 1

ORTENZIA BORRE: The Regional Aviation Association of Australia is asking the government to consider regional airline operators during the sale process. Regional airlines, which are competitors to Rex, including Sharp Airlines, are concerned about the proposal where the government purchases Rex. Regional Aviation Association Chief Executive, Rob Walker says Rex has competition on 21 of its 46 routes, claiming the number of operators will reduce further if the government is subsidising the airline. And joining me live now on this and more is Regional Development Minister, Kristy McBain. Kristy, thank you for your time this morning. Now, do you share the same concern about the government stepping in to purchase the airline as the regional aviation Association does?

KRISTY MCBAIN: What is really important is you’ve got a government that backs regional aviation. What we’ve said from day one is that we want to see the administration process go through in its entirety. What we want to see is a private buyer come through. We’ve made sure that there are incentives in place for that to take place, including the fact that the use it or lose it process for Sydney airport slots doesn’t automatically go into recession. We’ve extended that out to 2026. Those are the things that are important to buyers. What we’ve said is we would be a buyer of last resort. We’re not stepping in now. We’re not substituting the administration process. It’s still got a way to run, and the administrator is keen to work with the private market on it.

BORRE: Now, ASIO boss Mike Burgess has revealed there have been multiple attempts by foreign countries to harm Australians, and that the rest of the decade could be even more dangerous. So what does the Albanese Government need to do now before the election to ensure our safety?

MCBAIN: What we say consistently is that we have confidence in our security and intelligence agencies. They do a fabulous job. As Mike Burgess has outlined, they’re doing this all whilst keeping Australians safe. Once a year he gives a speech about the things that are happening across our nation and across the world. Without that, Australians would be none the wiser that these things are taking place in the background. We continue to provide all the resources that our security and intelligence agencies need to do their job and keep Australians safe. What we want to make really clear is that we consider it a form of abuse for anyone to harass us, and we continually monitoring this. Harassment of Australians, individuals or businesses is not on. We have full faith that our security agencies will take the appropriate steps they need to.

BORRE: Now you’re in Goulburn today as part of the $100 million Community Energy Upgrades Fund. Today, $50 million will be delivered to about 58 local governments in grants for energy upgrades. Talk us through this initiative and how it’s going to benefit Australians.

MCBAIN: The Community Energy Upgrade Fund is something that councils have been calling for across the country. They want some help to lower the fixed costs that they have, which in turn helps lower rates for individuals across the country. We’ve supported councils from Geelong in Victoria to Aurukun in Queensland, to the Shire of Flinders Ranges in South Australia. Projects like making community pools fully electric, making sure that there are solar panels and batteries on community libraries, fast car charging stations across our communities to encourage more people to come and visit, or to be able to use electric cars within our community. A really important fund, delivering some cost savings for councils across the country. Round two will be open very soon and we encourage councils to continue to put forward their projects and apply to this fund.

BORRE: Kristy McBain, always a pleasure. Thank you for your time this morning.

MCBAIN: Good to be with you.

MIL OSI News –

February 20, 2025
MIL-Evening Report: Households are burning plastic waste as fuel for cooking and heating in slums the world over
Source: The Conversation (Au and NZ) – By Bishal Bharadwaj, Adjunct Research Fellow, Curtin Institute for Energy Transition, Curtin University

Poor people in vast city slums across the Global South are burning plastic to cook their food, warm their homes and boil water for hot showers.

Waste plastic is plentiful and highly flammable. So it’s not surprising people in developing countries, mainly in Africa, Asia and Latin America, are putting it to use – especially as wood is increasingly scarce.

But burning plastic is hazardous, as it releases toxins into the surrounding air – and possibly into the food on the stove.

We wanted to draw attention to this growing problem, which has received little attention to date despite the many potential harms.

In our new “perspective” paper, published in Nature Cities, we explain why so many communities are using plastic as an energy source.

We then explore further research needed and recommend ways for policymakers to tackle the issue.

Mountains of plastic waste

The world has produced more plastic in the past 20 years than the total previously produced since commercial production began in 1950. Roughly half a billion tonnes of plastic is now produced every year.

Plastic production is still accelerating. Global plastic use is predicted to almost triple by 2060 due to soaring demand from a growing population with rising incomes.

Unfortunately, most plastic is not recycled. Instead, it is discarded and ultimately ends up polluting marginal land such as flooded areas and open dumping grounds before making its way into the ocean.

Burning plastic waste for cooking and heating is becoming increasingly common in city slums. a–f, Photographs showing the use of plastic to start a fire in Koshi Province in Nepal (a), a household heating milk by burning plastic in Madhesh province of Nepal (b) and the burning of plastic in Guwahati, India (c), in Enugu, Nigeria (d,e) and in the slums of Lahore, Pakistan (f). Credits for photographs: a, Srijana Baniya; b, Pramesh Dhungana; c, Monjit Borthakur; d,e, Chizoba Obianuju Oranu; f, Sobia Rose.
Bharadwaj, B., Gates, T., Borthakur, M. et al. The use of plastic as a household fuel among the urban poor in the Global South. Nat Cities (2025).

A product of energy poverty in city slums

Increasing urbanisation is reducing access to traditional fuels such as wood and crop residue from farmland.

But plastic is readily available. Low-income households with little or no access to gas or electricity often find themselves living alongside mountains of rubbish.

This plastic, made from fossil fuels, represents a cheap and convenient fuel. It’s lightweight, easy to transport, and a nuisance material that people want to be rid of. Plastic is also relatively easy to dry and store, but can burn even when wet. It’s also flexible and pliable, so it can be used easily in traditional cooking arrangements such as basic stoves.

Burning plastic releases toxins such as dioxins, furans and heavy metals into the air. These chemicals are known to cause cancer, heart disease and lung diseases.

The more vulnerable people in the household – including women and children and those who spend more time indoors – tend to be most exposed to the fumes. But the problem also affects people in the neighbourhood and the wider community.

Burning plastic is likely to also contaminate food. For example, eggs from farms near plastic waste incinerators in Indonesia contained hazardous chemicals from burned plastic. However, more evidence is needed around food contamination.

Furthermore, when households burn plastic bottles and other containers, some of the original contents also burn. Given chemicals are poorly regulated, the consequences of burning plastic could be greater still.

Overcoming the problem

A first step to overcoming the problem is understanding the reality of those living in slums. Policy-makers need to recognise these people’s needs and the challenges they face.

Extensive research is needed to design the most effective and inclusive policy interventions. This needs to be addressed if we are to reduce the associated health and environmental impacts on such large populations across the world.

We have gathered a collaborative, multidisciplinary team of researchers from around 35 countries – mostly in the Global South – to better understand the problem. We recently completed a survey of people exposed to the issue such as local government employees, teachers and community workers in more than 100 cities in 26 countries.

We are also examining the emissions from waste plastic during food preparation to determine the extent of contamination in variety of stoves.

Nobody wants to burn plastic waste to cook food, so policies like ban on burning plastic with out contextual intervention will not work. There is a need to design inclusive policy interventions that provide equitable benefits to the wider community. For example, encouraging people to:
- wash any plastic before it is burned, to remove chemical residues
- use improved cookstoves that vent the fumes outside
- expand basic urban amenities like waste management to low income settlements
- provide support to help lift households out of poverty.
Each approach will depend on the specific requirements of the slum settlement. But by implementing multiple approaches in parallel, we can tackle the problem more effectively.

The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. Households are burning plastic waste as fuel for cooking and heating in slums the world over – https://theconversation.com/households-are-burning-plastic-waste-as-fuel-for-cooking-and-heating-in-slums-the-world-over-250265
MIL OSI Analysis – EveningReport.nz –
February 20, 2025
MIL-OSI Australia: Boosting First Nations trade and investment
Source: Minister for Trade

The Albanese Labor Government is backing First Nations people, businesses and communities to take up new trade and investment opportunities through a new First Nations Trade and Investment Advisory Group.

Growing trade and investment links for First Nations people delivers well paying, secure jobs in communities across Australia. We know that First Nations businesses who export generated over $670 million in revenue in 2022-23 and typically employed over seven times more workers than other First Nations businesses.

The group will help First Nations businesses tap into a wide array of trade and economic opportunities, including our recently signed free trade agreement with United Arab Emirates, so that First Nations businesses can reap more of the benefits from international trade.

By establishing this pilot Advisory Group we are delivering on our commitment to share the benefits of trade widely across our community.

The membership includes a range of First Nations business leaders, industry groups and experts in international trade including:
- Mr Bevan Mailman, Desert Springs Octopus
- Mr Joshua Gilbert, Gilbert Consulting
- Mr Cameron Costello, Costello Consultancy
- Mr Brian Bero, First Nations Clean Energy Network
- Ms Sharon Brindley, First Nations Bushfood and Botanical Alliance Australia
- Mr Michael Dickerson, Gambarra Kaha
- Ms Shannon McGuire, Kirrikin Foundation
- Ms Leah Armstrong, First Nations Representative on the Indigenous Peoples Economic Trade and Cooperation Agreement (IPETCA)
- Mr Leslie Delaforce, Dreamspark
- Ms Jenny Wardrop, Supply Nation Representative
- Ms Michelle Deshong, Deshong Consulting
More information, including terms of reference, will be available at Advisory Group webpage.

Quotes attributable to the Minister for Trade and Tourism Don Farrell:

“Our First Nations people were our first traders, exchanging goods with Makassan seafarers from Indonesia.

“These days First Nations businesses export a range of goods including native botanicals, art, design, cyber and clean energy solutions to the world markets.

“We know First Nations business involved in trade create more jobs and grow faster.

“That’s why our government is focussed on helping more First Nations businesses tap into the many opportunities provided by exporting to the world.”

Quotes attributable to the Minister for Indigenous Australians Malarndirri McCarthy:

“First Nations Australians are the holders of traditional knowledge and culture, and these perspectives can only benefit Australia’s international trade and investment agenda.

“Initiatives like the First Nations Trade and Investment Advisory Group ensure First Nations perspectives, experiences and interests are embedded in our international economic agenda.

“Working in partnership demonstrates the value of knowledge sharing and can deliver real, long-term economic empowerment and self-determination for First Nations Australians.”

MIL OSI News –
February 20, 2025

MIL-OSI: Diversified Energy Announces Pricing of Offering of Ordinary Shares

Source: GlobeNewswire (MIL-OSI)

BIRMINGHAM, Ala., Feb. 19, 2025 (GLOBE NEWSWIRE) — Diversified Energy Company PLC (LSE: DEC; NYSE: DEC) (“Diversified” or the “Company“), an independent energy company focused on natural gas and liquids production, transportation, marketing and well retirement, today announces the pricing of its previously announced underwritten public offering (the “Offering”) of 8,500,000 ordinary shares (the “Shares”) at a public offering price of $14.50 per Share for total gross proceeds of approximately $123.3 million. The Offering is expected to settle on February 21, 2025, subject to customary closing conditions. In addition, Diversified has granted the underwriters a 30-day option to purchase up to an additional 850,000 ordinary shares at the public offering price, less underwriting discount.

Citigroup and Mizuho are acting as joint book-running managers and underwriters for the Offering. KeyBanc Capital Markets, Truist Securities, Jefferies and Raymond James are also acting as joint book-running managers and underwriters for the Offering. Johnson Rice & Company, Pickering Energy Partners, Stephens Inc. and Stifel are acting as co-managers and underwriters for the Offering.

The Company intends to use the net proceeds from the Offering to repay a portion of the debt expected to be incurred by the Company in connection with the proposed acquisition of Maverick Natural Resources, LLC, as announced on January 27, 2025 (the “Acquisition”). In the event that the Acquisition does not close, the Company intends to use the net proceeds from the Offering to repay debt and for general corporate purposes. The consummation of the Offering is not conditioned upon the completion of the Acquisition, and the completion of the Acquisition is not conditioned upon the consummation of the Offering.

A shelf registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission (the “SEC“) on February 11, 2025 and became effective upon filing. Copies of the registration statement can be accessed through the SEC’s website free of charge at www.sec.gov. A preliminary prospectus supplement and an accompanying prospectus relating to and describing the terms of the Offering were filed with the SEC and are available free of charge by visiting EDGAR on the SEC’s website at www.sec.gov. When available, copies of the final prospectus supplement and the accompanying prospectus related to the Offering can be accessed through the SEC’s website free of charge at www.sec.gov or obtained free of charge from either of the joint book-running managers for the Offering: Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Tel: 800-831-9146); or Mizuho Securities USA LLC, Attention: Equity Capital Markets Desk, at 1271 Avenue of the Americas, New York, NY 10020, or by email at US-ECM@mizuhogroup.com.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy our ordinary shares nor shall there be any sale of securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

In connection with the admission of the Shares to listing on the equity shares (commercial companies) category of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange (“Admission”), the Company intends to publish a prospectus as required under the UK version of Regulation (EU) 2017/1129 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018. Applications will be made to the FCA and LSE for Admission, and Admission is expected to become effective at 8:00 am (London time) on February 24, 2025.

Post Transaction Report

In accordance with the Statement of Principles (November 2022) published by the Pre-Emption Group, Diversified announces the following post transaction report in connection with the Offering.

Name of Issuer	Diversified Energy Company PLC
Transaction Details	The Company issued 8,500,000 new Ordinary Shares (the “Shares”), representing 16.6% of the Company’s ordinary share capital as of 14 February 2025. Admission of the Shares representing 16.6% of the Company’s ordinary share capital as of 14 February 2024 is expected to occur at 8.00 am (London time) on 24 February 2024.
Use of Proceeds	The directors of the Company intend to use the net proceeds from the Offering to repay a portion of the debt expected to be incurred by the Company in connection with the proposed acquisition of Maverick Natural Resources, LLC, as announced on 27 January 2025 (the “Acquisition”). In the event that the Acquisition does not close, the Company intends to use the net proceeds from the Offering to repay debt and for general corporate purposes.
Quantum of Proceeds	Total gross proceeds from the Offering, amounted to US$123.3 million (approximately £97.9 million), approximately US$118.3 million net of expenses (approximately £93.9 million net of expenses).
Discount	The Offering was completed at a price of US$14.50 per Share, representing a 3.4% percent discount from the NYSE closing price of US$15.01 per Share on 19 February 2025 (being the last business day prior to the pricing of the Offering).
Allocations	Soft pre-emption has been adhered to in the allocations process, where possible. Management was involved in the allocations process, which has been carried out in compliance with the MIFID II Allocation requirements.
Consultation	The Underwriters undertook a pre-launch wall-crossing process, including consultation with major shareholders, to the extent reasonably practicable and permitted by law.
U.K. Retail Investors	Following discussions between the Underwriters and the Company, it was decided that a retail offer would not be included in the Offering. The Offering structure was chosen to minimize cost, time to completion and complexity.

CONTACTS

Diversified Energy Company PLC	+1 973 856 2757
Doug Kris	dkris@dgoc.com
Senior Vice President, Investor Relations & Corporate Communications

FTI Consulting	dec@fticonsulting.com
U.S. & UK Financial Media Relations

About Diversified

Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our unique differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value.

Forward-Looking Statements

This press release includes forward-looking statements. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as “believe”, “expects”, “targets”, “may”, “will”, “could”, “should”, “shall”, “risk”, “intends”, “estimates”, “aims”, “plans”, “predicts”, “continues”, “assumes”, “projects”, “positioned” or “anticipates” or the negative thereof, other variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of management or the Company concerning, among other things, expectations regarding the proposed Offering of securities and the Acquisition. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company’s control and all of which are based on management’s current beliefs and expectations about future events, including market conditions, failure of customary closing conditions and the risk factors and other matters set forth in the Company’s filings with the SEC and other important factors that could cause actual results to differ materially from those projected.

Important Notice to UK and EU Investors

This announcement contains inside information for the purposes of Regulation (EU) No. 596/2014 on market abuse and the UK Version of Regulation (EU) No. 596/2014 on market abuse, as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (together, “MAR”). In addition, market soundings (as defined in MAR) were taken in respect of the matters contained in this announcement, with the result that certain persons became aware of such inside information as permitted by MAR. Upon the publication of this announcement, the inside information is now considered to be in the public domain and such persons shall therefore cease to be in possession of inside information in relation to the Company and its securities.

Members of the public are not eligible to take part in the Offering. This announcement is directed at and is only being distributed to persons: (a) if in member states of the European Economic Area, “qualified investors” within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (the “Prospectus Regulation”) (“Qualified Investors“); or (b) if in the United Kingdom, “qualified investors” within the meaning of Article 2(e) of the UK version of Regulation (EU) 2017/1129 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018, who are (i) persons who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order“), or (ii) persons who fall within Article 49(2)(a) to (d) of the Order; or (c) persons to whom they may otherwise lawfully be communicated (each such person above, a “Relevant Person“). No other person should act or rely on this announcement and persons distributing this announcement must satisfy themselves that it is lawful to do so. This announcement must not be acted on or relied on by persons who are not Relevant Persons, if in the United Kingdom, or Qualified Investors, if in a member state of the EEA. Any investment or investment activity to which this announcement or the Offering relates is available only to Relevant Persons, if in the United Kingdom, and Qualified Investors, if in a member state of the EEA, and will be engaged in only with Relevant Persons, if in the United Kingdom, and Qualified Investors, if in a member state of the EEA.

No offering document or prospectus will be available in any jurisdiction in connection with the matters contained or referred to in this announcement in the United Kingdom and no such offering document or prospectus is required (in accordance with the Prospectus Regulation or UK Prospectus Regulation) to be published. The Company will publish a prospectus in connection with Admission as required under the UK Prospectus Regulation in due course.

Neither the content of the Company’s website (or any other website) nor the content of any website accessible from hyperlinks on the Company’s website (or any other website) is incorporated into, or forms part of, this announcement.

The Company has consulted with a number of existing shareholders and other investors ahead of the release of this announcement, including regarding the rationale for the offering. Consistent with each of its prior offerings, the Company will respect the principles of pre-emption, so far as is possible, through the allocation process, in the Offering.

In connection with the Offering, Citigroup or any of its agents, may (but will be under no obligation to), to the extent permitted by applicable law, over-allot Shares or effect other transactions with a view to supporting the market price of the Shares at a higher level than that which might otherwise prevail in the open market. Citigroup may, for stabilization purposes, over-allot Shares up to a maximum of 10 per cent. of the total number of Shares comprised in the Offering. Citigroup will not be required to enter into such transactions and such transactions may be effected on any stock market, over-the-counter market, stock exchange or otherwise and may be undertaken at any time during the period commencing on the date of adequate public disclosure of the final price of the securities and ending no later than 30 calendar days thereafter. However, there will be no obligation on Citigroup or any of its agents to effect stabilizing transactions and there is no assurance that stabilizing transactions will be undertaken. Such stabilizing measures, if commenced, may be discontinued at any time without prior notice. In no event will measures be taken to stabilize the market price of the Shares above the offer price. Save as required by law or regulation, neither Citigroup nor any of its agents intends to disclose the extent of any over-allotments made and/or stabilization transactions conducted in relation to the Offering.

Citigroup and Mizuho are acting exclusively for the Company and no one else in connection with the Offering and will not regard any other person as their respective clients in relation to the Offering and will not be responsible to anyone other than the Company for providing the protections afforded to their respective clients or for giving advice in relation to the Offering or the contents of this announcement or any transaction, arrangement or other matter referred to herein.

In connection with the Offering, Citigroup and Mizuho or any of their respective affiliates, acting as investors for their own accounts, may subscribe for or purchase Shares and in that capacity may retain, purchase, sell, offer to sell or otherwise deal for their own accounts in such Shares and other securities of the Company or related investments in connection with the Offering or otherwise. Accordingly, references in the US prospectus, once published, to the Shares being issued, offered, subscribed, acquired, placed or otherwise dealt in should be read as including any issue or offer to, or subscription, acquisition, placing or dealing by, Citigroup and Mizuho or any of their respective affiliates acting as investors for their own accounts. Citigroup and Mizuho or any of their respective affiliates do not intend to disclose the extent of any such investment or transactions otherwise than in accordance with any legal or regulatory obligations to do so.

Neither Citigroup nor Mizuho, nor any of their respective subsidiary undertakings, affiliates or any of their respective directors, officers, employees, advisers, agents or any other person accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to the truth, accuracy, completeness or fairness of the information or opinions in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith.

The MIL Network –

February 20, 2025

MIL-OSI Australia: Solar Pools and Libraries with First $50 million for bill busting upgrades

Source: Australian Ministers for Infrastructure and Transport

Batteries to soak up excess solar at a council childcare centre, solar panels to cut bills for the local library and the community pool going all-electric are just some of the projects the Albanese Government is backing with its $100 million Community Energy Upgrades Fund (CEUF).

Today 58 local government bodies around the nation will get on with bringing down their energy bills for good, with $50 million in grants for energy upgrades going out the door.

Whether it’s the neighbourhood sports club, the community hall, the local pool or library, local government brings us together and keeps us thriving. Each year 8 million people use community sporting infrastructure, including local councils. Now the Albanese Government is working with councils, so they can save on their bills and invest more into their communities.

One-off grants of between $25,000 to $2.5 million have been awarded through the merit-based program, with local government providing at least 50 per cent of project costs.

Successful funding applications include 31 upgrades to local aquatic centres and five grants for smart electric vehicle charging infrastructure for local government vehicles.

In Melbourne, Collingwood Leisure Centre will go electric, with its air, pool and hot water system using 100% renewable energy and storage.

In Western Sydney, council-owned early learning centres will free up funding to invest more into our next generation by cutting bills with batteries that soak up excess solar to be used across their own and other community buildings. While in Broken Hill they’ll unlock their sunny skies with the council installing solar panels over the car park and replacing gas heating with electric heat pumps.

Meanwhile in Darwin, the Casuarina Library will be cooler this summer with an energy upgrade, while further upgrades to Parap Pool and West Lane carpark will see the council save $83,500 a year.

In Tasmania, a local council will ensure people keep on moving, installing smart electric vehicle chargers and dynamic load management to support electrification and decarbonisation of its vehicle fleet.

The highly popular Albanese Labor Government initiative saw Round 1 oversubscribed, with 165 applications overall for the first $50 million package of funding. Round 2 is expected to open shortly, with unsuccessful applicants from round 1 warmly encouraged to reapply.

Quotes attributable to Minister for Climate Change and Energy Chris Bowen:

“Local councils run many of the sport and public facilities that keep our communities and clubs thriving. We want facilities that Australians know and love, like cricket grounds and local pools, to be able to save on their energy bills and spend more on the things they do best.

“The Albanese Government is not just providing short term relief on power bills, with our Community Energy Upgrades Fund and Energy Savings Package, we’re helping communities bring down bills for good.”

Quotes attributable to Minister for Local Government Kristy McBain:

“We’ve heard loud and clear from councils about the need to upgrade ageing facilities with more energy-efficient technology, to bring down their overheads and to lower their emissions – which is exactly why we launched the Community Energy Upgrades Fund.

“We now have transparent grant programs that every postcode can apply for, we’ve delivered record funding increases for local roads, and we’ve brought local councils back to the table as a trusted delivery partner after a decade of neglect – with this program a real testament to what we can achieve for our communities when we work together.”

Quotes attributable to Assistant Minister for Climate Change and Energy Josh Wilson:

“The Albanese government is investing in energy efficiency measures for community facilities because it has a triple-whammy effect of cutting emissions, cutting running costs, and allowing those savings to be used for other local services.

“These projects are helping to deliver a cheaper, cleaner energy future for Australians.”

BACKGROUND:

STATE	SUCCESSFUL COUNCILS	TOTAL GRANT FUNDING
NSW	17 Blue Mountains City Council, Campbelltown City Council, Coolamon Shire Council, Council of the City of Broken Hill, Cowra Shire Council, Dubbo Regional Council, Inner West Council, Junee Shire Council, Ku-Ring-Gai Council, Leeton Shire Council, Lockhart Shire Council, Mid-Western Regional Council, Northern Beaches Council, Parkes Shire Council, Port Macquarie Hastings Council, Wagga Wagga City Council, Wingecarribee Shire Council,	$15.3 million
VICTORIA	15 Ballarat City Council, Banyule City Council, Cardinia Shire Council, City of Maribyrnong, Colac Otway Shire, Corangamite Shire Council, Glen Eira City Council, Mansfield Shire Council, Melbourne City Council, Merri-Bek City Council, Mildura Rural City Council, Surf Coast Shire, Wyndham City Council, Yarra City Council, Yarra Ranges Shire Council	$23.9 million
QUEENSLAND	7 Aurukun Shire Council, Brisbane City Council, Cassowary Coast Regional Council, Mackay Regional Council, Maranoa Regional Council, Murweh Shire Council, Paroo Shire Council	$4.5 million
SOUTH AUSTRALIA	7 Barunga West Council, City of West Torrens, Corporation of the City of Unley, District Council of Loxton Waikerie, Rural City of Murray Bridge, The Barossa Council, The Flinders Rangers Council,	$2.3 million
WESTERN AUSTRALIA	5 City of Armadale, City of Melville, City of Swan, Town of East Fremantle, Town of Port Hedland	$2.8 million
TASMANIA	5 Brighton Council, Clarence City Council, Devonport City Council, Huon Valley Council, Launceston City Council,	$674,011
NORTHERN TERRITORY	2 Central Desert Regional Council, City Darwin	$580,528

Note: This media release was originally published by the Climate and Energy portfolio: Solar pools and libraries with first $50 million for bill busting upgrades (https://minister.dcceew.gov.au)

MIL OSI News –

February 20, 2025

MIL-OSI USA: On Senate Floor, Shaheen Blasts Trump Administration’s Reckless Firing of FAA Personnel Critical to Aviation Safety
US Senate News:
Source: United States Senator for New Hampshire Jeanne Shaheen

(Washington, DC) – On the Senate floor, U.S. Senator Jeanne Shaheen (D-NH) raised concerns for public safety after the Trump Administration recklessly decided to fire hundreds of Federal Aviation Administration (FAA) personnel critical to aviation safety. This week’s decision will further strain the system at a time when incidents and near-misses are at a high. Last week, Shaheen and U.S. Senator John Hoeven (R-ND) sent a bipartisan letter calling on Acting Administrator of the FAA, Chris Rochelau to urgently work with Congress to address air safety workforce staffing shortages. You can watch her remarks in full here.

Key Quotes:
- “Many towers and facilities are operating buildings and on equipment that’s five, ten, even fifteen years old and when something goes wrong, they need to know there’s someone on call to fix things because lives literally depend on it. Americans need to know that the skies are secure and that their safety is a top priority.”
- “I think we should do everything we can to make government run efficiently and effectively. But indiscriminately freezing hiring across the board [and] pushing out thousands of civil servants makes that problem worse, not better.”
- “I don’t think people elected Donald Trump to dismantle this country’s air traffic control system. I think they elected him because they wanted to see inflation go down, they wanted to see their grocery prices reduced, they wanted to see help with rental costs, mortgage rates, with energy costs, and what have we seen in the weeks since Donald Trump got inaugurated? No effort to address any of those things.”
Full Remarks as Delivered:

I come to the floor today to call attention to the Trump Administration’s unconscionable disregard for air safety.

Last month, here in Washington, we saw the deadliest commercial aviation event on U.S. soil in over 23 years.

And while this loss of life was horrifying, it was unfortunately not unimaginable.

In recent years, near misses at airports across the country have increased, and the incident at DCA illustrated just how quickly these dangerous situations can take a turn for the worst.

Several times last year, runway incidents were narrowly avoided, due in no small part to the heroic actions of certified professional air traffic controllers who staff our towers.

These controllers are hardworking Americans.

They often log six-day weeks and ten-hour days—and that’s on a good week.

So even before this week’s misguided and, frankly, stupid—I mean, I have to say, I think it’s a stupid decision to lay off hundreds of FAA workers and air traffic controllers who have been overworked and understaffed.

And this is not a new problem.

We’ve known about it for years.

For years in Congress, we’ve been sounding the alarm about the need to invest in our air traffic control workforce.

In last year’s FAA reauthorization bill, we worked in a bipartisan fashion to address this issue—to support our air traffic control workforce so they can do their vital, often lifesaving jobs effectively.

By partnering with the National Air Traffic Control Union and the FAA, we successfully adopted a new staffing method, model, staffing model, in the reauthorization bill, and they’ve been making good progress, but of course we have more work to do.

It’s important to acknowledge that any response to the tragedy at Reagan National Airport must include a commitment to reinforce all parts of our aviation safety workforce.

Controllers would be the first ones to tell you that they don’t work in a vacuum.

The equipment they use is maintained by hundreds of dedicated support personnel who go through years of highly specialized training.

Many towers and facilities operate in buildings and on equipment that’s five, ten, even fifteen years old, and when something goes wrong, they need to know that there’s someone on call to fix things because lives literally depend on it.

Americans need to know that the skies are secure and that their safety is a top priority.

Sadly, I can’t say that the actions we’re seeing from this administration does any of that.

Secretary Duffy said he wants to surge air traffic controller hiring.

I agree with him on that.

We can and we should hire more air traffic controllers, but not at the expense of the rest of FAA’s workforce.

We can hire any number of air traffic controllers tomorrow, but without the dedicated support staff that make their work possible, it wouldn’t matter.

So how is the Administration responding to the American people’s distress over increasingly frequent close calls and, indeed crashes, sadly, like the one we saw in Toronto this week?

Well, over the weekend this administration fired nearly 400 FAA employees, some of them in my state of New Hampshire.

We heard an outpouring of concern over the weekend from controllers, pilots, airlines and passengers who want to know that they’re going to be safe when they fly.

I’m sure the Administration must be hearing this too.

But when asked about the impact of the irresponsible and reckless effort, this is what Secretary Duffy had to say, he said and I quote, “zero critical safety personnel were let go.”

Well, so I’m not sure I understand this.

We’re telling the American people that if a communications system goes down while the plane is approaching the runway, the person who knows how to get it back up and running isn’t critical?

That if the power goes out at an en-route facility while 747s are flying overhead, the eighteen fired maintenance personnel who know how to turn the lights back on won’t be necessary?

That the staffers who develop innovative safety and flight procedures every time there is an incident, to make sure your plane takes off on time and arrives safely, are fair game to be fired?

Because we just lost 13 of them.

And to anyone who’s worried about our national security, good news: According to this administration, the FAA employees working on a classified radar system to detect cruise missiles, aren’t all that important either, and they also were fired.

So I’m going to say that again because this administration thinks that the civil servants at the FAA’s National Airspace System Defense Program are apparently not critical to our safety.

None of this makes me or my constituents sleep better at night, but I bet you it makes our enemies happy.

The Administration has tried to defend this by saying that everyone who [they] fired was probationary.

They’d like you to believe that these are all brand-new employees.

Sort of the philosophy that the last one in, is the first one out.

But that’s not how the system works, and it sure as heck isn’t how you keep Americans safe.

In fact, employees who were promoted based on stellar performance within the last year, many of them who have been with the FAA for ten or fifteen years, are also labeled as probationary employees when they start their new positions.

So in fact, the Administration just fired some of the people with the most experience, not the least.

And this speaks to what is a bigger problem.

Time and again, we’re seeing this happen with so-called “government efficiency,” in quotes, experts.

Listen, like most of us in this chamber, I think we should do everything we can to make government run efficiently and effectively, but indiscriminately freezing hiring across the board, pushing out thousands of civil servants, makes that problem worse, not better.

Last week, hundreds of employees at the National Nuclear Security Administration were fired without warning.

This week, the Administration is scrambling to try and hire most of them back because they didn’t realize they oversee our nuclear stockpile.

And the Department of Energy fired more than a thousand employees, including three-quarters of the State and Community Energy Program’s office.

Now, I don’t know if the people who are making these decisions in the Administration even know what that office does.

But I can tell you that in New Hampshire we depend on them because they help keep weatherization programs up and running, they support emergency operations in the wake of disasters.

And with folks in New Hampshire dealing with some of the highest home heating costs, who are worried about how they’re going to keep themselves warm this winter, and states around the country still recovering from floods and fires and winter storms, I can’t imagine why anybody would think that it’s a good idea to get rid of the people who are helping make sure those programs operate.

And then on Monday, we found out that dozens of USDA employees, so the Department of Agriculture, who have been working to prevent bird flu, were fired.

And then the White House realized what they had done, they panicked and they tried to bring them back.

Now that’s on top of all of the people around the globe who have been monitoring the bird flu potential epidemic—who have already been fired with the closure of the U.S. Agency for International Development.

And just this afternoon, we heard that nearly 500 employees at the National Institute of Standards and Technology would be fired, including almost 60 percent of the CHIPS office.

So the effort that we stood up, that this Congress stood up, to try and make sure we could compete with China, with Taiwan in the production of semiconductors, which are included in almost everything we use from our cell phones to our refrigerators to our cars, 60 percent of those people are now gone.

So who’s going to provide that effort that we need in order to compete with China?

These are the staff that make sure our high-tech semiconductor manufacturing industry stays competitive.

Example after example shows that the firings that Elon Musk has taken credit for have not been thought through.

Either he’s doing it deliberately in an effort to undermine the United States or he’s doing it because he’s so ignorant he has no idea what any of these people do or what their operations do.

Either way, it’s inexcusable.

I heard from a constituent this week who works, who worked, past tense, for the New Hampshire Fish and Game Department for 24 years, and she just took a job as a wildlife biologist with the U.S. Fish and Wildlife Service last year.

Her job focused on implementing the Pittman-Robinson Wildlife Restoration Act.

As my colleagues on both sides of the aisle know, this involves conserving bird and wildlife habitat, hunter education and shooting ranges.

Its funds come not from taxpayer dollars, but from excise taxes on firearms, ammunition and archery equipment.

And yet, her job was terminated under the guise of government efficiency.

She has a mortgage; she has kids in college who need health care coverage, but her main ask to me was to help put a stop to these firings and to simply help her get her job back because like most of our public servants, she cares about the mission of her work.

Over and over, we’re seeing this administration take out irresponsible, reckless initiatives with devastating consequences for critical positions without taking a second to think through or learn about what those positions do.

And when things inevitably break as a result, they don’t own up to their mistakes.

Instead, they try to convince you that keeping the lights on at control towers or inspecting airplane engines, making plans to manage some of the busiest airspace in the country really isn’t critical to your safety.

Well, I don’t believe that and I don’t think you should either.

For the sake of the American people, we can and we must do better.

I don’t think people elected Donald Trump to dismantle this country’s air traffic control system.

I think they elected him because they wanted to see inflation go down, they wanted to see their grocery prices reduced, they wanted to see help with rental costs, with mortgage rates, with energy costs and what have we seen in the weeks since Donald Trump got inaugurated?

No effort to address any of those things.

All we’ve seen is an effort at retribution against his perceived enemies, at firing and undermining of services and programs within the government to serve the American people.

For the sake of our citizens, we must do better.

I’m calling on this administration to right this wrong as quickly as possible, before it’s too late.

I yield the floor.
MIL OSI USA News –
February 20, 2025
MIL-OSI Australia: Helping charities and strengthening communities
Source: Australian Treasurer

The Albanese Government is helping Australia’s 62,000 charities by ensuring that states and territories collaborate effectively with the federal government – reducing unnecessary paperwork.

We’re taking the practical step of including representatives from all states and territories on the advisory board of the Australian Charities and Not‑for‑profits Commission (ACNC). This will include the greatest representation from state and territory governments since the Board’s inception in 2013.

This move builds on the substantial body of work that Labor has done to support charities, and aligns with recommendations in the Productivity Commission’s landmark Future Foundations for Giving report.

These strategic appointments aim to ensure the diverse interests of our communities are effectively represented, fostering a consistent national approach to regulatory and policy matters within the charity sector.

The ACNC Advisory Board supports the Commissioner by offering informed advice on matters affecting charities and strengthening the governance and effectiveness of the sector.

The new ex‑officio appointments will provide an additional layer of regulatory expertise, complementing the sector‑based members and enhancing the Board’s role as a forum supporting charity law, policy and regulatory reform.

The new appointments to the ACNC Advisory Board are:
- New South Wales – Ms Natasha Mann, Commissioner of Fair Trading and Deputy Secretary of Fair Trading and Regulatory Services, Department of Customer Service
- Northern Territory – Ms Amanda Nobbs‑Carcuro, Executive Director, Industry Capability, Licensing and Migration, Department of Trade, Business and Asian Relations
- Queensland – Ms Victoria Thompson, Deputy Director‑General, Harm Prevention and Regulation, Department of Justice
- South Australia – Mr Brett Humphrey, Commissioner for Consumer and Business Services
- Tasmania – Ms Robyn Pearce, Executive Director of Consumer, Building and Occupational Services, Department of Justice
- Victoria – Ms Nicole Rich, Director of Consumer Affairs Victoria, Executive Director of Regulatory Services, Department of Government Services
- Western Australia – Ms Patricia Blake, Commissioner for Consumer Protection, Department of Energy, Mines, Industry, Regulation and Safety
The ACT is already represented on the board, with David Crosbie, CEO of the Community Council for Australia, reappointed in July 2023.

This ensures that all states and territories will be represented in the national conversation about helping charities and reconnecting communities.

These appointments reinforce the Government’s commitment to fostering a robust, well‑regulated charity sector that serves communities across Australia. It builds on our achievements to date. Since coming into government, the Australian Government has:
- Improved the deductible gift recipient system by creating a new pathway for community foundations to access tax deductible status.
- Streamlined the deductible gift recipient application process for environmental organisations, harm prevention charities, cultural organisations, and overseas aid organisations.
- Introduced legislation to give the ACNC greater discretion to comment publicly on harmful breaches of compliance, to better support public trust and confidence in the regulatory framework.
- Appointed a widely respected charity sector expert, Sue Woodward, to head the ACNC.
- Refreshed the ACNC Advisory Board to be more representative of the charity sector, bringing First Nations, CALD and youth voices onto the Board.
- Sent a clear signal that charitable advocacy is supported and welcomed by this government.
- Worked with state and territory governments to streamline and harmonise fundraising rules across jurisdictions.
- Funded a new General Social Survey with new questions on participation in volunteering and involvement in cultural events and cultural activities, and providing insights reflecting the impact of giving, participation, and purpose driven activity.
Quotes attributable to Assistant Minister for Charities, Dr Andrew Leigh MP

“Labor wants to minimise the time that Australia’s great charities spend doing paperwork, so we can maximise the energy they devote to helping the vulnerable, cleaning up the environment, helping people stay active, and connecting neighbours.

“One of the best ways of achieving this is to ensure that all jurisdictions are working together on charitable regulation.

“Bringing sector experts and regulators from all states and territories onto the advisory board of the charities commission will help charities by reducing regulatory overlap, and ensuring jurisdictions are working together to help charities and non‑profits thrive.”

MIL OSI News –
February 20, 2025
MIL-OSI USA: National Energy Dominance Council Paves Way for Unleashing American Energy

US Senate News:

Source: The White House
Last week, President Donald J. Trump established the National Energy Dominance Council — a cornerstone in the Trump Administration’s pursuit of unleashing American energy. Led by Secretary of the Interior Doug Burgum and Secretary of Energy Chris Wright, the Council will play a key role in the Trump Administration’s work to lower energy prices, meet the rising demand for affordable energy, strengthen economic security, and ensure the American energy industry is best positioned as a global leader over the next century.
The move was hailed by lawmakers, workers, and industry:
House Committee on Energy and Commerce Chair Brett Guthrie (R-KY): “Energy security is national security. By utilizing our domestic energy resources to create baseload power, we can lower prices, secure our grid, and provide the energy needed to grow manufacturing, heat our homes, and fill our gas tanks. The creation of this council under the leadership of Secretary Wright and Secretary Burgum is a strong step toward securing our energy future, and ensuring we have the resources necessary to meet the demands that AI will place on our grid. President Trump is continuing to fulfill his promise to the American people to return our nation to energy dominance, and I look forward to working together to achieve that goal.”
American Exploration and Production Council: “Our nation is stronger, more secure, and more prosperous when America is the world leader in energy production, and AXPC applauds the Trump administration’s recognition that a whole of government approach is necessary to address the challenges related to American energy dominance. Sound energy policy across agencies will support our ability to meet rising national and global demand for affordable, reliable energy. We will continue to work with Congress and the Trump administration and the new National Energy Dominance Council on sensible, durable policies that allow American energy companies to continue to innovate and produce the energy America needs.”
North America’s Building Trades Unions: “North America’s Building Trades Unions look forward to engaging with the National Energy Dominance Council recently established by the White House. This effort, chaired by Secretary of the Interior Doug Burgum and vice-chaired by Secretary of Energy Chris Wright, comes at a critical moment for our nation. As our country’s energy demands continue to rise and we work to meet the needs of artificial intelligence, confront rising adversarial powers, and provide our citizenry with stable and affordable energy, we at NABTU are ready to meet the moment. The men and women of the Building Trades have built the existing energy infrastructure of this nation and are eager to partner with this Council to provide the highly skilled workforce necessary to advance America’s all-of-the-above energy strategy and bring about the next generation of expanded, domestic and affordable power supply.”
National Rural Electric Cooperative Association CEO Jim Matheson: “We are thrilled that President Trump has established the National Energy Dominance Council to tackle some of the biggest energy policy challenges facing our nation. Electricity demand is skyrocketing, yet due to bad policy decisions, always-available baseload power is being forced to retire before it can be reliably replaced. As a result, much of the country faces an increased risk of energy shortfalls over the next decade. Under the leadership of Chairman Doug Burgum and Vice Chairman Chris Wright, the Council is perfectly positioned to address the growing threats to reliable and affordable power. We believe the Executive Order’s focus on improving key processes, including those for permitting, producing and distributing American energy, is exactly the right place to start.”
United Association of Union Plumbers and Pipefitters General President Mark McManus: “The men and women of the United Association are the best trained and most highly skilled craftspeople in the energy industry, and for generations we have built the critical infrastructure that delivers affordable domestic energy to our homes and businesses across the nation. We are now poised to deliver the next generation of energy production at this critical point in our nation’s history, but all too often government red tape and environmental activist groups stand in the way of these good paying and family-sustaining jobs. We look forward to working with President Trump and the new National Energy Dominance Council to cut government red tape and modernize our permitting processes to boost domestic production of critical energy like oil, gas, hydrogen, carbon capture, and nuclear, and to reduce our dependence on foreign sources of energy.”
Power The Future Executive Director Daniel Turner: “The National Energy Dominance Council is a long-overdue course correction that prioritizes American energy workers, revitalizes domestic production, and ensures affordability for families. The NEDC has the opportunity to right the many wrongs of the Biden administration’s failures by working alongside the private sector to create policies that increase production, drive down costs, and protect the environment. By cutting through burdensome regulations and anti-energy mandates, the NEDC will unleash America’s full energy potential and pave the way for an era of prosperity, affordability, and innovation.”
National Association of Manufacturers President Jay Timmons: “President Trump is moving quickly to unleash America’s full energy potential by establishing the National Energy Dominance Council, setting America up to lead on energy and secure our energy independence. This action demonstrates President Trump and his administration’s commitment to ensuring manufacturers have the energy they need to drive economic growth. […] The National Energy Dominance Council, under the leadership of Interior Secretary Burgum and Energy Secretary Wright, will help power the future of manufacturing in America because when manufacturing wins, America wins.”
Competitive Enterprise Institute Senior Fellow Marlo Lewis: “This is welcome news. Unlike the previous administration, which increased US reliance on oil imports from OPEC and critical minerals from China by rigging domestic markets against reliable energy from fossil fuels, President Trump seeks to emancipate all sources of reliable American energy to compete in domestic and overseas markets. The president also seeks to accelerate the permitting of new energy infrastructure, including the power plants needed to support hundreds of new data centers and US leadership in artificial intelligence. President Trump is correct that clearing away impediments to America’s global leadership in energy production and exports will lower energy prices, enhance US economic security, create millions of new well-paying jobs, and strengthen US competitiveness in advanced technologies such as AI.”
Growth Energy: “#ICYMI last week @POTUS established the National Energy Dominance Council, noting that #biofuels ‘reduce our dependency on foreign imports, and grow our economy’ – #ethanol producers are ready to deliver for American consumers and the president’s priorities!”
Small Business and Entrepreneurship Council: “The National Energy Dominance Council is greatly needed to promptly reduce onerous barriers and rules that work against an abundant energy supply. Rather than federal government agencies finding ways to expand their regulatory turf and stymie the energy sector, the Council is tasked with reducing outdated red tape and moving with speed on recommendations and action, which will facilitate the significant investment needed for big projects. A modern regulatory system and commitment to U.S. energy supremacy will generate quality jobs, economic vibrancy and growth, and innovations that will yield efficiencies and cleaner energy. As both energy consumers and as significant players in the U.S. energy sector, small businesses will greatly benefit. SBE Council thanks President Trump for prioritizing this critical sector and for his commitment to more affordable, reliable and abundant energy for America.”
Americans for Prosperity: “Coupled with earlier Executive Orders signed by President Trump, with this Order, the current administration is well on its way in laying the groundwork for a future where energy abundance can become a reality. Americans for Prosperity applauds President Trump’s actions in this Executive Order and anticipates a bright future for energy production in this country.”

MIL OSI USA News –

February 20, 2025
MIL-OSI China: Abu Dhabi to enhance trade, investment with China

Source: China State Council Information Office

The Abu Dhabi Department of Economic Development (ADDED) is currently leading a high-level delegation of 140 government and business leaders on an official visit to China. The visit, which commenced on Feb. 17, aims to further strengthen partnership with a leading economy and cement Abu Dhabi’s stature as a global magnet for talent, businesses and investment.

The delegation is meeting with senior government officials, key businesses and investors in Beijing, Shanghai, Shenzhen and Hong Kong to explore business opportunities and foster strategic relations with their Chinese counterparts.

During the visit, the Abu Dhabi Investment Office and the Abu Dhabi Global Market hosted the Abu Dhabi Investment Forum (ADIF) in Beijing on Feb. 18 under the theme “Invest with Abu Dhabi.” Meanwhile, an additional session of the forum will be held in Shanghai on Feb. 20.

The ADIF features a comprehensive agenda, including keynote addresses, panel discussions and bilateral meetings with delegates representing various sectors of Abu Dhabi’s economy. Industry experts, including executives from institutions such as Abu Dhabi National Oil Company, Mubadala, HSBC and Gulf Capital, provided in-depth insights into the emirate’s investment landscape, showcasing opportunities in technology, financial services, health care and trade.

Additionally, the Abu Dhabi Chamber of Commerce and Industry, in collaboration with the Shanghai Federation of Industry and Commerce, held the Business Connect-Abu Dhabi-Shanghai in Shanghai on Feb. 19. The event focused on strengthening economic relations and partnerships between the business communities in Abu Dhabi and China.

Ahmed Jasim Al Zaabi, chairman of ADDED, said: “Our longstanding relations with China are going from strength to strength, as reflected by the growth of bilateral trade and mutual investments over the past few years, and we are doubling down our efforts to take it to the next level by deepening cooperation and exploring new opportunities in various sectors to create more partnerships.”

He added: “We are eager to enable investors and businesses to benefit from ample opportunities provided by our soaring ‘Falcon Economy,’ which is harmonizing between advanced technologies, sustainability, human development and economic diversification as we accelerate the transition towards the next phase of Abu Dhabi’s development.”

According to the data from ADDED, bilateral trade between China and the United Arab Emirates is projected to reach $200 billion by 2030. Abu Dhabi is already home to many of the over 6,000 Chinese companies operating in UAE’s key sectors including technology, financial services and energy. As such, the emirate continues to reinforce its position as the main gateway for Chinese investment in the Middle East and beyond.

MIL OSI China News –

February 20, 2025
MIL-OSI USA: Senators Markey, Van Hollen, Whitehouse, and Sanders Demand Answers from Justice Department on Forced Resignation of Assistant U.S. Attorney Over Illegal Pressure to Freeze National Green Bank Funding

US Senate News:

Source: United States Senator for Massachusetts Ed Markey

Letter Text (PDF)

Washington (February 19, 2025) – Senator Edward J. Markey (D-Mass.) and Senator Chris Van Hollen (D-Md.) today wrote to Department of Justice Inspector General Michael Horowitz about revelations that Assistant U.S. Attorney Denise Cheung was pressured to find evidence of a crime as a justification for freezing the release of billions of dollars in congressionally approved federal funds for the National Clean Investment Fund and the Clean Communities Investment Accelerator. These programs, which are part of the Greenhouse Gas Reduction Fund, leverage private capital to cut energy bills for families and small businesses, improve resiliency against climate change-fueled disasters, and create local economic opportunity while combatting climate change. Senator Sheldon Whitehouse (D-R.I.) and Senator Bernie Sanders (I-Vt.) also signed the letter.

In the letter, the lawmakers write, “The reports that Ms. Cheung was pressured to circumvent this standard suggest a deliberate attempt to weaponize the Justice Department for political purposes. Indeed, according to one report, ‘Cheung’s resignation came in connection with a Justice Department effort to assist President Donald Trump’s new head of the Environmental Protection Agency, who said last week that he would try to rescind $20 billion in grants awarded by the Biden administration for climate and clean energy projects.’”

The lawmakers continue, “Federal prosecutors have an obligation to comply with the legal ethics rules governing their conduct, including their duty to refuse illegal or unethical orders from superiors. Not even a month into the second Trump administration, several career prosecutors have already resigned rather than participate in legally and ethically questionable actions, igniting a crisis within the Justice Department. The Department must not become an instrument of political retribution or partisan maneuvering.”

The lawmakers urge the Office of the Inspector General, “to immediately open an investigation into the circumstances surrounding Ms. Cheung’s resignation, the directives she received, and the broader pattern of political interference in prosecutorial decisions. The integrity of our justice system depends on the independence of prosecutors and their ability to enforce the law free from political influence. If substantiated, these allegations represent an existential threat to the rule of law and demand swift corrective action.”

Senator Markey secured numerous provisions in the Inflation Reduction Act, including the creation of a $27-billion national climate financing network based on the National Climate Bank Act, which he introduced along with Senator Van Hollen. Following the passage of the Inflation Reduction Act in 2022, Senators Markey and Van Hollen and Congresswoman Debbie Dingell (MI-06) — the House lead on the climate financing legislation — welcomed the launch of the Greenhouse Gas Reduction Fund in April 2023.

MIL OSI USA News –

February 20, 2025
MIL-OSI Australia: $10 million Good Neighbours Program to tackle pest and weeds across NSW
Source: New South Wales Premiere

Published: 20 February 2025

Released by: Minister for Agriculture

The Minns Labor Government is delivering on its election commitment to tackle pest and weed infestations between neighbouring public and private lands across the state through its $10 million investment in new or expanded, on the ground, biosecurity projects.
The Good Neighbours Program, led by Local Land Services, will undertake 21 initial projects in priority areas across NSW.

The initiative is part of the Government’s $945 million commitment to addressing biosecurity threats to the state’s $20 billion primary industries sector.

The Good Neighbours projects will target pest animals and problem weeds, including feral deer, feral pigs, tropical soda apple and hudson pear.

Improved on-ground outcomes will be achieved through coordinated pest animal and weed control programs, as well as capacity-building workshops, training and education for landholders and land managers.

The 21 projects will be delivered in partnership with respective public land managers including Forestry Corporation, the National Parks and Wildlife Service and local councils.

The Good Neighbours Program highlights the importance of public and private land managers working together to prevent the spread of pests and weeds and protect the NSW economy, environment and community.

Pest animals and weeds impact more than 70 per cent of the state’s threatened species and endangered ecological communities, posing a significant agricultural threat.

The Good Neighbours Program brings together a range of stakeholders and agencies to combat the issue and educate landholders and land managers about their shared general biosecurity duty under the NSW Biosecurity Act 2015 to control pests and weeds on their properties.

The program will run until mid-2026, with additional projects to be funded. Visit nsw.gov.au/good-neighbours to learn more.

Minister for Agriculture, Tara Moriarty said:

“Effective pest and weed management are critical to supporting agricultural productivity and biodiversity in NSW, and it’s best achieved by working as a united front.”

“The Good Neighbours program demonstrates the NSW Government’s commitment to protecting our natural environment and agricultural industry by focusing our resources on areas where we can work together to achieve the best results.

“As the saying goes, everybody needs good neighbours. Biosecurity is a shared responsibility, and we all have a part to play.”

Local Land Services Project Manager Good Neighbours Program, Dale Kirby said:

“When it comes to coordinated pest animal and weed control programs, many hands make light work.”

“We can achieve far better outcomes when private and public landholders work together, with expert advice and support from Local Land Services, to reduce impacts and limit the spread of pests and weeds across the landscape.”

MEDIA: Michael Salmon | Minister Moriarty | 0417495018

Good Neighbours projects
- Cane Toad Program (North Coast) – Joint efforts between the Department of Primary Industries and Regional Development, Local Land Services, National Parks and Wildlife Service, Forestry Corporation of NSW, Landcare and private landholders to control cane toads on the North Coast.
- Chinese Violet Program (North Coast) – This program is based in the Tweed Shire, where Rous County Council is targeting Chinese violet on the fringes of the Heritage Wollumbin National Park and Jerusalem National Park.
- Job’s Tears Eradication Program (North Coast) – Led by Rous County Council, Landcare and landholders, this program aims to eradicate Job’s tears from creek lines in the Kyogle and Lismore shires.
- Tropical Soda Apple Eradication (TSA) Program (North Coast) – This program targets Tropical soda apple across the Lismore, Kyogle, Ballina, Byron, Richmond Valley and Tweed local government areas, led by Rous County Council, community groups and landholders.
- Far South Coast Coastal Weeds Program (South East) – Tackling weeds such as coastal bitou bush and sea spurge on the Far South Coast between Tuross and Wonboyn, led by Far South Coast Landcare, local councils, Local Land Services and the National Parks and Wildlife Service.
- Hudson Pear Control Program – Kinchega National Park (Western) – Combating Hudson Pear in the middle reaches of Stephens Creek to the west of Kinchega National Park, led by the managers of Kars and Eureka stations, National Parks and Wildlife Service, Castlereagh Macquarie County Council and Local Land Services.
- Jumping Cholla Control Program (Western) – Targeting Jumping cholla in the Living Desert State Park and nearby Limestone and Nine Mile stations in the Broken Hill area, with the help of the station owners, Broken Hill City Council, Castlereagh Macquarie County Council and Local Land Services.
- Parthenium Weed Eradication (North West) Management and control of Parthenium weed across two Travelling Stock Reserves (TSR) at Croppa Creek, led by North West Local Land Services and supported by local councils, the Department of Primary Industries and Regional Development, TSR users, landholders and Traditional Owners.
- Mt Stuart Boxing Glove Control Program (Western) – Tackling the spread of Boxing glove cactus in Tibooburra, south of the Sturt National Park, in partnership with the National Parks and Wildlife Service, Mt Stuart Station neighbours, Castlereagh Macquarie County Council, Crown Lands and Local Land Services.
- North Coast Branch Pig Control Program (North Coast and Northern Tablelands) – Feral pig control led by the North Coast branch of the National Parks and Wildlife Service across 12 reserves from western Richmond River to the coast, from Ballina in the north to Hat Head in the south.
- Orange Hawkweed Eradication Program (South East) – A collaboration between Snowy Monaro Council, Snowy Valleys Council, Local Land Services, the Department of Primary Industries and Regional Development and private landholders targeting Hawkweed in the Kosciuszko National Park and surrounding private land.
- Strategic Weed Management and Control – Blackberry and St John’s Wort (Central West) – Coordinated control of priority weeds within Goobang National Park, led by Parkes Shire Council, Macquarie and Lachlan Valley Weeds Committee, Central West and Central Tablelands regional weeds committees and neighbouring landholders.
- Wild Horse Cross Tenure Eradication Program (North Coast) – Wild horse control focused on the Barcoongere area, south of Grafton, in conjunction with the Department of Primary Industries and Regional Development, National Parks and Wildlife Service and landholders.
- Bathurst Joint Weed Program (Central Tablelands) – Working with the Forestry Corporation of NSW and private landholders to control weeds such as broom, gorse and Chilean needle grass between state forest and private land in Bathurst.
- Bathurst Pest Program – Feral Pig Management Program (Central Tablelands) – Support for a feral pig baiting program involving the Forestry Corporation of NSW, Crown Lands and neighbouring land managers.
- Feral deer control – Greater Blue Mountains World Heritage Area (Central Tablelands, Hunter, Greater Sydney and South East) – Coordinated efforts between the National Parks and Wildlife Service, Local Land Services, the Invasive Species Council, Crown Lands and public land managers to reduce the impacts of feral deer.
- Forestry Pest Management Neighbour’s Program (Western, Central West, Central Tablelands, North West, Riverina and Murray) – Targeting feral pig populations on properties with state forest boundaries in the Western NSW region, led by the Forestry Corporation of NSW and state forest neighbours.
- Koala Habitat Restoration (North Coast) – Protecting and restoring koala habitat in the Coffs Harbour and Port Macquarie areas in conjunction with private landholders, Local Aboriginal Land Councils, Landcare groups, National Parks and Wildlife Service, and the Australian Department of Climate Change, Energy, the Environment and Water.
- North Coast Feral Deer Management Program (North Coast) – An existing feral deer coordinated control program based in the Coffs Harbour and Port Macquarie areas involving local councils, Forestry Corporation of NSW, National Parks and Wildlife Service and private landholders.
- Red Cestrum Management and Control (North Coast) – This program is focused on controlling Red cestrum infestations on the Dorrigo Plateau, led by the National Parks and Wildlife Service, Forestry Corporation of NSW, Bellingen Shire Council and private landholders.
- Tamworth Peri Urban Pest Species Project (North West) – Targeting feral goats, pigs and deer within the Tamworth Local Government Area, supported by Tamworth Regional Council, Crown Lands and private landholders.
MIL OSI News –
February 20, 2025
MIL-OSI Australia: Faster water approvals to supercharge housing delivery
Source: New South Wales Premiere

Published: 20 February 2025

Released by: Minister for Housing, Minister for Water

The Minns Labor Government is slashing red tape to get more homes built faster across the state, unveiling a clear blueprint to speed up approvals and ensure new properties are connected and ready to turn on the tap sooner.
The Housing Approval Reform Action Plan is a joint initiative between the NSW Department of Climate Change, Energy, the Environment and Water (DCCEEW), Sydney Water, and WaterNSW to streamline approvals and accelerate the delivery of critical infrastructure.

After more than a decade of underinvestment and stalled approvals, the NSW Government is taking action, establishing a cross-government team to fast-track water and wastewater infrastructure, ensuring developments stay on track and homes are delivered sooner.

Every new home requires essential infrastructure. From providing drinking water and wastewater management to handling stormwater, a robust water cycle management plan is a key factor in assessing land use and development proposals in NSW.

Government agencies evaluate a wide range of potential impacts on water quality, including stormwater management, erosion and sediment control during construction and wastewater disposal.

Beyond accelerating housing construction, the plan will focus on protecting, enhancing, and restoring waterways and water sources to ensure long-term sustainability.

The Housing Approval Reform Action Plan streamlines housing delivery and eases system pressure through clear actions, including:
- Expanding risk-based triaging for all referrals to ensure homes that are ready can be connected without delay.
- Streamlining the removal of groundwater process on building sites to ensure construction can commence quickly and safety.
- Revising key performance indicators to mitigate inefficiencies.
- Support developers and Water Servicing Coordinators in getting their applications right from
  the start.
- Facilitating early engagement for smoother applications.
Following an industry forum in August 2024, these reforms were shaped with key stakeholders and construction industry leaders, who highlighted real-world obstacles slowing housing development, to break down barriers and get more homes built faster.

This action plan strengthens the Minns Labor Government’s commitment to building a better NSW, including:
- $2.2 billion infrastructure investment to fund more housing, critical infrastructure and better planning for housing.
- Over $250 million to continue the overhaul of the planning system and planning reforms.
- The development of the NSW Pattern Book and accelerated planning pathway for those who use the pre-approved patterns.
- $5.1 billion to build 8,400 new public homes, the largest investment in social and affordable housing.
- Creation of Housing Delivery Authority that recently announced plans to fast-track the delivery of 6,400 new homes.
To learn more, please visit: https://water.dpie.nsw.gov.au/our-work/plans-and-strategies/housing-approval-reform-action-plan/

Minister for Housing and Water Rose Jackson said:

“Drinking water, wastewater and stormwater might not be front of mind, but they’re make-or-break for getting homes built and ready to live in.

“We’re cutting red tape, speeding up approvals, and pulling every lever we’ve got to get more homes on the ground faster—because NSW can’t afford delays.

“This plan is about fixing the system. The entire NSW water sector has come together with developers to find solutions that actually work and get things moving.

“These are practical changes that will slash approval timeframes and address industry concerns—while still doing the right thing by our water sources and environment.”

NSW Executive Director of the Property Council of Australia Katie Stevenson said:

“When applications for apartment buildings get the stamp of approval from planning, there are often further strings attached where significant excavations need additional sign-off from water authorities and this adds costly further delays to the delivery of new housing.

“Today’s announcement effectively declares 2025 as a year of cultural change for the three water authorities involved in the pre-construction approval of new housing – it is the sort of leadership we need to align all aspects of the government’s activities toward the resolution of the housing crisis.

“We appreciate the priorities outlined in the action plan, along with the specific activities and timelines it includes, which have been created through extensive consultation with the industry.”
MIL OSI News –
February 20, 2025
MIL-OSI Security: Fredericksburg drug trafficker sentenced to 10 years in prison for distribution of fake oxycodone pills containing fentanyl

Source: Office of United States Attorneys

ALEXANDRIA, Va. – A Fredericksburg man was sentenced today to 10 years in prison for his role in a conspiracy to receive and distribute thousands of fentanyl pills.

According to court documents, Khalil Elijah Williams, 25, obtained counterfeit oxycodone pills that contained fentanyl from out-of-state suppliers and redistributed them in Virginia. The pills were imprinted “M30” to appear as legitimate oxycodone, but instead contained fentanyl. Williams then distributed those pills to his co-conspirators, including Alhagi Gassim Conteh, 30, of Alexandria, and others.

Williams obtained the fentanyl from co-conspirators who shipped packages containing thousands of counterfeit pills from Arizona and other states. For example, in August 2024, the U.S. Postal Inspection Service (USPIS) in Phoenix seized a parcel destined to Williams at an apartment in Woodbridge. USPIS inspectors in Arizona obtained and executed a search warrant and seized approximately a kilogram of counterfeit pills from the parcel. USPIS seized another shipment of counterfeit pills shipped from Phoenix that month that contained approximately 1,077.28 grams (gross weight) of fentanyl, or approximately 10,000 counterfeit pills. This shipment was also destined for Williams.

Between March and August 2024, Williams sold counterfeit pills totaling approximately 910.51 net grams to Conteh and others in transactions arranged by law enforcement. For example, on July 1, 2024, Williams sold 2,500 fentanyl pills at a location in Fredericksburg.

Conteh was arrested On April 12, 2024, and pled guilty on July 16, 2024, to conspiracy to distribute fentanyl and distribution of fentanyl. On Oct. 22, 2024, Conteh was sentenced to 10 years in prison.

On Aug. 14, 2024, law enforcement conducted enforcement operations that resulted in the arrest of Williams and the recovery of two handguns and miscellaneous ammunition from his residence.

Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Ibrar A. Mian, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.

Assistant U.S. Attorney Kristin S. Starr and Special Assistant U.S. Attorney Christopher M. Carter prosecuted the case.

Assistance was provided by the Washington/Baltimore High Intensity Drug Trafficking Area (HIDTA) Task Force.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-236.

MIL Security OSI –

February 20, 2025

Category: Energy

Energy & Commerce Committee’s Top Democrat Visits Central Jersey Medical Center, Highlights Risks to Medicaid Patients and Community Health Centers

CFA responded to a fire on a solar farm in Raywood, outside Bendigo at about 5.50pm on Thursday 20 February.

Mountains of plastic waste

A product of energy poverty in city slums

Overcoming the problem

Quotes attributable to Assistant Minister for Charities, Dr Andrew Leigh MP