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Category: Energy

  • MIL-OSI Asia-Pac: New milestone in indigenous development of gaseous detector important for mega science FAIR project in Germany

    Source: Government of India

    Posted On: 07 FEB 2025 5:33PM by PIB Delhi

    Researchers have developed an innovative technique using a radioactive source that can simplify the study of radiation effects on Gas Electron Multiplier (GEM) detectors, a crucial step in nuclear and particle physics experiments.

    Gas Electron Multiplier (GEM) detector are particle detectors used as tracking devices in high-energy physics experiments that utilizes a thin, perforated foil with a high electric field to amplify particles produced by ionizing radiation, allowing for precise detection of particles like muons by significantly multiplying the initial signal generated by the particle’s interaction with the gas within the detector.

    They are also strong candidates for diagnostic applications in medical technology because of their good position resolution. First introduced by Prof. Fabio Sauli in 1997, GEM detectors consist of a 50 μm thick Kapton foil, with 5 μm copper cladding on both sides.

    Despite their advantages, the inclusion of Kapton, a radiation-resistant polyimide film with excellent insulating properties, in the active volume makes these detectors sensitive to radiation-induced effects, particularly the charging-up of the dielectric medium. During operation, ionizing radiation deposits energy into the detector, initiating electron avalanche formation.

    This process results in charge accumulation on the Kapton foil, which in turn enhances the electric field within the GEM holes—the primary region for electron multiplication. This increase in the electric field boosts the detector’s gain and efficiency. Over time, a dynamic equilibrium is established, stabilizing the gain and ensuring consistent detector performance.

    India has the full responsibility of building all the GEM chambers that will be used in the future Compressed Baryonic Matter (CBM) experiment at FAIR and will be operated at very high radiation environment. For this, it is important to enhance the understanding of the charging-up effect in GEM detectors, a phenomenon that remains inadequately understood.

    Fig 1: Schematic of the charge accumulation on the Kapton foil inside GEM hole. The dynamical accumulation of the charges on the surface of the Kapton increases the electric field thence the gain of the chamber.

    To investigate this phenomenon, Dr. Saikat Biswas and his PhD student, Dr. Sayak Chatterjee along with the other collaborators from the Bose Institute, an autonomous institution under the Department of Science and Technology (DST), Government of India, conducted an in-depth investigation into the charging-up effect on the Kapton foil and its subsequent impact on detector performance.

    The team from Department of Physical Sciences at Bose Institute, developed a specialized experimental setup to study the charging-up effect in triple GEM detectors by studying its gain variation as a function of time.

    Analysis of the charging effect indicated that as either the detector gain (the ratio of the primary charges to the charges detected by the readout board) or irradiation rate increased, the charging-up time decreased significantly. This behavior was attributed to higher particle densities, which facilitated faster charge equilibrium within the GEM holes.

    Fig 2: (a) Variation of the normalized gain as a function of time fitted with a polynomial function to extract the charging-up time (p2) of a DM triple GEM chamber. (b) Variation of charging-up time of the DM triple GEM chambers as a function of the irradiation rates from a Fe-55 source at a fixed detector gain of ~ 5000.

    The findings from this study provide valuable insights for predicting behavioral changes in GEM detectors, critical components in high-rate experiments, when subjected to external radiation. These insights will inform design considerations and operational parameters for GEM chambers in radiation-intensive environments such as the CBM experiment at FAIR, Germany. These results are not only important for CBM experiment only but also for other high-rate experiments where GEM will be used.

    Fig 3: Variation of charging-up time of the DM & SM triple GEM chambers as a function of the gain of the chambers for different irradiation rates using the Fe-55 X-ray source.

     

    The researchers plan to extend their work to investigate the impact of GEM foil geometry on the charging-up effect and to explore behavioral changes under various types of irradiations, extending beyond the capabilities of laboratory setups. The studies published in the Journal of Instrumentation & Nuclear Instruments and Methods in Physics Research Section A, are crucial milestones for indigenous gaseous detector development.

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    MIL OSI Asia Pacific News –

  • MIL-OSI Video: This Week at Interior February 7, 2025

    Source: United States of America – Federal Government Departments (video statements)

    This Week: Former North Dakota Governor Doug Burgum is sworn in as the 55th Secretary of the Interior, and welcomed aboard at the Steward Lee Udall Building by an enthusiastic gathering of Interior employees; the new Secretary stressed the vital importance of Interior’s energy portfolio and the Department’s efforts to make America Energy Dominant; Secretary Burgum got right to work, signing several Secretary’s Orders to address the national energy emergency, unleash American energy, deliver emergency price relief for American families, and tap the State of Alaska’s abundant and largely untapped supply of natural resources. Make sure you follow us on Facebook, Instagram, YouTube and X.

    http:/www.facebook.com/usinterior
    http:/www.instagram.com/usinterior
    http:/www.x.com/Interior

    https://www.youtube.com/watch?v=_58UKmHg2rM

    MIL OSI Video –

  • MIL-OSI Security: Martinsville Man Sentenced to 18 Years for Distributing Double, Fatal Dose of Fentanyl

    Source: Office of United States Attorneys

    ROANOKE, Va. – A Martinsville, Virginia man, who distributed cocaine that was laced with fentanyl to a pair of individuals that later died from overdoses, was sentenced yesterday to 18 years in federal prison.

    Okoyte Devon Gaston, 31, pled guilty in September 2024 to one count of distributing fentanyl.

    According to court documents, in February 2023 Gaston, a known drug dealer in Southside Virginia, arranged to sell what was supposed to be one-fourth an ounce of cocaine powder to victim “C.U.”  Unbeknownst to C.U., the cocaine was laced with fentanyl.

    Gaston met C.U. and her boyfriend, victim “M.A.” and another individual, J.U. in the parking lot of a Sheetz gas station in Franklin County, Virginia. Gaston sold the group what they believed was cocaine for $350.

    Shortly after meeting with Gaston C.U., M.A., and J.U. all used some of the drugs they purchased from Gaston. The group then made a short drive back to C.U.’s Franklin County trailer home.

    Once there, J.U. said he did not feel well and went inside to go to sleep, leaving C.U. and M.A. alone in the car.

    The next morning, J.U. woke up disoriented, nauseous, and incoherent. He found C.U. and M.A. unresponsive. M.A. was still in the passenger seat of the vehicle and C.U. was on the ground outside of the driver’s door.

    J.U. called 911 and when police arrived, they pronounced C.U. and M.A. deceased. The medical examiner later determined that both C.U. and M.A. died of acute fentanyl and cocaine toxicity.

    Acting U.S. Attorney Zachary T. Lee and Ibrar A. Mian, Special Agent in Charge of the DEA’s Washington Division made the announcement.

    The Drug Enforcement Administration, and the Franklin County Sheriff’s Office investigated the case with the assistance of the Virginia State Police, the Roanoke City Police, and the Roanoke County Police.

    Assistant U.S. Attorneys Kelly McGann and Keith Parrella are prosecuting the case.

    MIL Security OSI –

  • MIL-OSI USA: ICE Homeland Security Investigations supports seizure of Venezuelan aircraft involved in violations of US export control and sanctions laws

    Source: US Immigration and Customs Enforcement

    WASHINGTON — U.S. Immigration and Customs Enforcement’s Homeland Security Investigations played a key role, alongside the Department of Commerce’s Bureau of Industry and Security and other partners, in an announcement Feb. 6 by the Justice Department that Dominican Republic authorities, working in coordination with U.S. federal law enforcement and based on violations of U.S. export control and sanctions laws, seized a Dassault Falcon 2000EX aircraft used by Petroleos de Venezuela, S.A., the sanctioned Venezuelan state-owned oil and natural gas company.

    “This seizure demonstrates HSI’s unwavering commitment to enforcing U.S. export control and sanctions laws around the globe,” said ICE Homeland Security Investigations Santo Domingo Country Attaché Edwin F. Lopez. “By working closely with our partners in the Dominican Republic and across the U.S. government, we successfully prevented the violation of U.S. laws designed to protect national security and foreign policy interests. HSI will continue to collaborate with domestic and international law enforcement partners to ensure accountability and uphold the rule of law.”

    The Bureau of Industry and Security Miami Field Office is investigating the case with assistance from ICE HSI Santo Domingo.

    The Justice Department previously announced in September 2024 the seizure of a Dassault Falcon 900EX aircraft in the Dominican Republic that was owned and operated for the benefit of Nicolás Maduro Moros and persons affiliated with him in Venezuela.

    “The seizure of the Dassault Falcon 2000EX aircraft provides yet another example of this office’s commitment to enforcing America’s export control laws against Venezuelan-owned PdVSA and other sanctioned entities,” said Southern District of Florida U.S. Attorney Hayden O’Byrne. “Asset forfeiture is a powerful law enforcement tool, which we will continue to use aggressively to deter, disrupt, and otherwise combat criminal activity.”

    “The use of American-made parts to service and maintain aircraft operated by sanctioned entities like PdVSA is intolerable,” said Devin DeBacker, head of the Department of Justice’s National Security Division. “The Justice Department, along with its federal law enforcement partners, will continue to safeguard our national security by identifying, disrupting, and dismantling schemes aimed at procuring American goods in violation of our sanctions and export control laws.”

    “Today’s announcement — the seizure of a sanctioned aircraft used by the Maduro regime — clearly shows that sanctions and export control laws have teeth,” said Acting Assistant Secretary for Export Enforcement Kevin J. Kurland of the Department of Commerce Bureau of Industry and Security. “BIS will continue to aggressively investigate and hold accountable those who violate our regulations.”

    According to the U.S. investigation, in July 2017, PdVSA purchased the Dassault Falcon 2000EX aircraft from the United States and exported it to Venezuela, where it was registered under tail number YV-3360. Following the imposition of sanctions on PdVSA and identification of the Dassault Falcon 2000EX aircraft as blocked property of PdVSA, the aircraft was serviced and maintained on multiple occasions using parts from the United States. The servicing

    included a brake assembly, electronic flight displays, and flight management computers — all in violation of U.S. export control and sanctions laws.

    President Trump issued Executive Order 13884 in August 2019, which, among other things, prohibits U.S. persons from engaging in transactions with persons who have acted or purported to act directly or indirectly for or on behalf of PdVSA. Pursuant to the EO, on Jan. 21, 2020, the Treasury Department’s Office of Foreign Assets Control identified 15 aircraft as blocked property under U.S. law, which generally prohibits transactions by U.S. persons within (or transiting) the United States that involve any property or interests in blocked property.

    According to a public statement issued by the Office of Foreign Assets Control, since at least January 2019, the Dassault Falcon 2000EX aircraft has transported Venezuelan Oil Minister Manuel Salvador Quevedo Fernandez, who is also sanctioned by the U.S. government, to an Organization of the Petroleum Exporting Countries meeting in the United Arab Emirates and has been used to transport senior members of the Maduro regime in a continuation of the regime’s misappropriation of PdVSA assets.

    The Justice Department’s Office of International Affairs and ICE HSI El Dorado Task Force Miami provided significant assistance.

    Assistant U.S. Attorneys Jorge Delgado and Joshua Paster for the Southern District of Florida and Trial Attorney Ahmed Almudallal of the National Security Division’s Counterintelligence and Export Control Section are handling the matter. Assistant U.S. Attorneys Jonathan D. Stratton and Ajay J. Alexander for the Southern District of Florida also assisted.

    The burden to prove forfeitability in a forfeiture proceeding is upon the government.

    MIL OSI USA News –

  • MIL-OSI USA: Cassidy, Daines, Colleagues Reintroduce Bill to Unleash American Energy, Hold Lease Sales in Gulf

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy

    WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Steve Daines (R-MT), and 10 Republican colleagues reintroduced the Supporting Made in America Energy Act to make sure the United States maintains and grows its energy independence. It requires the U.S. Department of the Interior (DOI) to hold four onshore oil and gas lease sales in the top oil and gas producing states, and also requires two annual offshore oil and gas lease sales in the Gulf of America and six sales over a ten-year period in Alaska’s Cook Inlet.
    “Louisiana fuels the world,” said Dr. Cassidy. “When we unleash American energy, we are supporting our allies, keeping Louisianans employed, and strengthening our economy. This bill will help us do that.”
    “Now that we have a President who supports our energy industry instead of pushing a radical environmental agenda, it’s time to get to work on real change to unleash American energy and ensure that we remain dominant on the world stage. These bills will have a huge impact on creating Montana jobs, boosting our economy and protecting our national security, and I’ll work with my colleagues every step of the way to get them over the finish line,” said Senator Daines.
    Cassidy and Daines were joined by U.S. Senators Roger Marshall (R-KS), Jim Risch (R-ID), Cindy Hyde-Smith (R-MS), Lisa Murkowski (R-AK), Tim Sheehy (R-MT), Cynthia Lummis (R-WY), Mike Crapo (R-ID), John Curtis (R-UT), John Barrasso (R-WY), and John Hoeven (R-ND) in introducing the legislation.
    Background
    In January, Cassidy led his colleagues in introducing the Offshore Energy Security Act of 2025. The legislation requires the DOI to hold two offshore oil and gas lease sales per year for 10 years.
    During the last administration, Cassidy released a landmark energy policy outline in response to President Biden’s assault on domestic energy. The outline details how we can successfully reset U.S. energy policy, including Cassidy’s plan for an Energy Operation Warp Speed to cut permitting red tape and unleash domestic energy and manufacturing. 
    He also pushed back on disastrous proposals from the Biden administration to limit development in the Outer Continental Shelf by introducing the WHALE Act.
    Under the Gulf of Mexico Energy Security Act (GOMESA) and the Louisiana State Constitution, revenues from offshore leasing are dedicated to coastal restoration. 2024 was the first year without an offshore oil and gas lease sale in the Gulf of Mexico since 1965.

    MIL OSI USA News –

  • MIL-OSI USA: Rep. Simpson Votes to Protect American Energy

    Source: US State of Idaho

    Rep. Simpson Votes to Protect American Energy

    Washington, February 7, 2025

    WASHINGTON—Today, Idaho Congressman Mike Simpson voted in favor of H.R.26, the Protecting American Energy Production Act. This legislation protects American oil and natural gas production by preventing any President from declaring a moratorium on hydraulic fracturing unless authorized to do so by law.
    “The American people gave Republicans a mandate to unleash American-made energy, reduce energy costs, and restore energy independence,” said Rep. Simpson. “During President Trump’s first term, the United States achieved energy independence for the first time in 70 years. With a new Republican trifecta, we are determined to reclaim this victory. Passing critical legislation to restore energy dominance and protect American energy production puts us back on track toward energy independence.”
    Rep. Simpson is the Chairman of the House Interior and Environment Subcommittee and serves as a senior member of the House Energy and Water Development Subcommittee, two critical subcommittees that influence energy policy in the United States.
    The Protecting American Energy Production Act passed with a vote of 226-188. The full text of the bill is available here.

    MIL OSI USA News –

  • MIL-OSI USA: Kugler, Entrepreneurship and Aggregate Productivity

    Source: US State of New York Federal Reserve

    Thank you, Jon, and thank you for the opportunity to speak to you today.1 It is such a pleasure to be back in Miami, a city I have seen grow and become ever more dynamic over the decades, as I have come many times to visit my large extended family here ever since the 1980s.
    As I discussed in my final speech of 2024, two positive supply shocks have significantly benefited the U.S. economy over the past two years and have also affected the conduct of monetary policy.2
    The first of these has been the surge in population over the past few years that has helped bring labor supply into balance with labor demand and, thus, also helped move inflation toward the Federal Open Market Committee’s (FOMC) 2 percent goal. The other positive supply shock, which I outlined in my remarks in December, has been a step-up in aggregate productivity growth since 2020, which is an increase in the amount of economic output, across the economy, per hour worked or some other unit of labor. Although productivity growth, measured quarterly, can be quite volatile, over the past five years this acceleration is quite evident. While productivity grew by about 1.5 percent a year from 2005 to 2019, starting in 2020 it has grown about 2 percent a year. This difference may not look dramatic, but because of compounding year-over-year, the consequences of an additional 1/2 percentage point in growth over the past five years are significant for workers and the U.S. economy. When workers are more productive, it effectively means that businesses can produce more without needing to add workers, and that they can pay workers more without needing to raise prices. When they are more productive, it can also serve as an incentive for businesses to expand. Across the economy, higher productivity growth means that real wages and living standards for workers can rise faster without putting upward pressure on inflation.
    And that is exactly what has been happening recently, a period when inflation has been falling while the economy is expanding. While fast growth in wages was one of the factors driving inflation in 2021 and 2022, most likely some of that increase was due to productivity growth and, hence, was not inflationary. If productivity continues to grow at an accelerated pace, it would support the FOMC’s efforts to keep unemployment low and return inflation to a sustained level of 2 percent. For that reason, I would like to spend the balance of my remarks exploring some of the possible reasons why productivity has accelerated, and the prospects that this fortunate development will continue.
    Numerous factors affect aggregate productivity, and several may have driven the increase in productivity growth in the U.S. since the pandemic, in contrast to the subdued productivity growth experienced by other advanced economies around the world.
    One such factor may have been a result of the enormous movement of workers caused by the pandemic. It began with the dramatic loss of 22 million jobs in the spring of 2020, the reemployment of many of those workers and the continued mobility as people quit jobs, switched occupations and careers, and relocated in response to the enormous changes in work and home life brought about by the pandemic. In finding new jobs, in what became a very tight labor market, workers had the opportunity to find better matches for their skills and, to some extent, work that they were motivated to carry out and which made them more productive. One indication that this was probably a significant factor in the U.S. is that other advanced economies where there was less worker movement have experienced lower rates of productivity growth.3 Economic data and research suggest that periods of strong job re-allocation are accompanied or followed by higher productivity growth.4
    The tightness of the labor market since 2021 has also likely led firms to invest to a greater extent in labor-saving as well as labor-enhancing technologies, which, of course, is traditionally one of the major sources of productivity gains. For example, many retail businesses seemed to have installed more self-checkout machines after the onset of the pandemic, allowing employers to substitute capital for workers when workers could not come to work in person and when there were severe shortages. More generally, digital technology allowed employees to continue working from home during the period of the pandemic and beyond, saving commuting time and making employees potentially more productive.5
    To the extent that these factors are boosting productivity growth, they are by their nature one-off developments that eventually will fade. A notable exception may turn out to be productivity improvements from investments in artificial intelligence (AI). AI investment by businesses has stepped up in the past two years, and it appears to be accelerating.6 The advent of the internet and related innovations boosted productivity growth for about 10 years starting in the mid-1990s, and the benefits of AI could potentially be that revolutionary and persistent.
    In addition to being temporary, the factors that I have outlined that could be boosting productivity, job re-allocation, and technological investments are themselves hard to measure across the economy. And so are their effects on productivity as well. But there is another important factor that is likely to be driving productivity higher whose effects may well persist, and that is the surge in new business formation experienced since 2019. As I will explain, new businesses are associated with higher rates of overall productivity growth, and that may be particularly true for some of the sectors in which these businesses were created.
    Applications for new business tax identification numbers jumped shortly after the pandemic began and have remained elevated since then.7 In 2024, the pace of applications that are likely to result in employer business formation was about 30 percent above its 2019 pace. This surge is largely unique to the U.S. In the euro zone, for example, business registrations have been relatively flat. This may help explain why labor productivity growth in Europe has been well below that of the U.S. in recent years.8
    The surge in applications in early 2020 was an early signal of an acceleration in the creation of job-creating new firms.9 The latest data available indicate that new firms created 1.9 million jobs in 2023, 14 percent higher than the total for 2019.10
    A couple of aspects of this surge in business entry in the U.S. are noteworthy. First, the surge was particularly noticeable in high-tech industries that, historically, are important for overall innovation and productivity growth.11 Second, while the pace of business applications has cooled somewhat over the past year, it still remains elevated and well above pre-pandemic norms. It is, in fact, proving somewhat more persistent than some expected.
    For these reasons, the surge in new business formation is highly relevant to our discussion about productivity. There is a large body of research that finds that new firms are key contributors to innovation and growth in aggregate productivity.12 This might seem surprising and counterintuitive, since it is well known that many new firms fail in their first year or two. But in the commotion of competition that these many new businesses face, there are always businesses that persist and keep their lights on, and those often do so because they are innovative and more productive. New businesses are the essence of the competition that drives market-based economies, and it is not surprising that they would be an important source of new products or processes for doing business—and a source of growth.13
    Of course, not every new firm has to innovate and grow to make important economic contributions. Every entrepreneur contributes even if they just create a job for themselves and their family members. But those new firms that do innovate and grow are critical for improvements in overall productivity over time.
    As I noted before, since the surge in entrepreneurship after the onset of the pandemic featured an increase in high-tech businesses as well, the productivity implications could be significant. Indeed, the last period of strong productivity growth in the U.S., which ran from the late 1990s into the early 2000s, was preceded by a surge of new business creation in high-tech industries, including those industries that more recently have been associated with AI-related developments.14 So this is one source of my optimism about continued robust productivity growth in the U.S.
    But it is not only the innovations produced directly by new businesses that are important, since by any measure these new firms are a small share of total businesses. New businesses also help drive innovation by existing firms. As they scramble for funding, customers, and human capital, new businesses will increase competition with existing ones, forcing them to innovate as well so they can succeed. This is surely also driving the recent acceleration in productivity growth.
    Many predicted that the surge in new business creation would disappear as effects of the pandemic have faded, but this has not really happened. It is possible that the surge in entry will recede and that its productivity effects will likewise be temporary. On the other hand, the productivity gains from a surge in entry could last for some time, since these highly productive young firms have been found to grow rapidly for several years, contributing to aggregate productivity growth along the way. Time will tell, but for now, it seems likely that this is a factor supporting productivity growth at a higher-than-historical rate.
    I will confess to you all that it is not a coincidence that I have come to Miami to highlight the role of entrepreneurship in innovation and productivity growth. Miami and the Miami metropolitan area is an extraordinarily entrepreneurial area, a place with high rates of new business creation, and it is likely an important source of the recent productivity surge.
    Out of more than 900 U.S. cities for which we have data, Miami’s post-pandemic new firm entry rate ranked 8th in the nation.15 And Miami is not alone in Florida; 5 of the top 20 cities for pandemic-era business formation are here in your state.16 Miami specifically, and Florida generally, has been a key part of the U.S. entrepreneurship story for some time. During the decade before the pandemic, Miami ranked 5th out of more than 900 U.S. cities for firm entry rates, and Florida featured 8 of the top 20 U.S. cities.17
    Miami is special in this regard. I wonder what is in the water here to produce such a dynamic, entrepreneurial culture. Perhaps it is the extent of sunshine, which has long been associated with optimism. Perhaps it is the friendly economic climate—in my own academic research, I have found that policies that facilitate business entry and support worker or job re-allocation are indeed helpful for dynamism and productivity.18 But an interesting question for me as the first Hispanic at the Board of Governors since its creation is whether the large Hispanic population in Florida is also a factor behind the impressive pace of business dynamism that I have just described.
    More than 25 percent of Florida’s population is Hispanic, compared with around 20 percent for the United States as a whole.19 Nationwide, recent data indicate that Latinos account for a dominant—and rapidly growing—share of new entrepreneurship in the U.S., with a particular increase since the pandemic.20 Of course, many of these Latino entrepreneurs are also immigrants, another group with a well-known proclivity for entrepreneurship.21 There are immigrants in Miami from the Caribbean and all over the world who contribute to the entrepreneurial culture of this city, and it is surely this culture, as much as the efforts of any nationality or group, that is the real engine of the dynamism here. I applaud you all for fostering that culture here in Florida, which is such an important contributor to the economic growth of our nation. More entrepreneurs means more productivity, which is crucial to U.S. prosperity.
    Let me conclude with an outline of my views on the outlook for the U.S. economy and the FOMC’s efforts to return inflation to our 2 percent goal while maintaining a strong labor market.
    The U.S. economy remains on a firm footing.
    Real gross domestic product (GDP) continues to grow at a solid pace. The Bureau for Economic Analysis estimates that real GDP grew 2.3 percent in the fourth quarter of 2024, and private domestic final purchases, which is the best indicator for GDP one quarter ahead, grew a solid 3.2 percent. Therefore, I anticipate solid GDP growth also in the first quarter of this year. In addition, earlier today the Labor Department reported that U.S. employers created 143,000 jobs in January and the unemployment rate edged down to 4 percent, consistent with a healthy labor market that is neither weakening nor showing signs of overheating.
    Inflation has fallen significantly since its peak in the middle of 2022, and in September the FOMC judged that it was time to begin reducing our policy interest rate from levels intended to strongly restrict aggregate demand and put downward pressure on inflation. We reduced our policy rate 100 basis points through December, but the recent progress on inflation has been slow and uneven, and inflation remains elevated. There is also considerable uncertainty about the economic effects of proposals of new policies. Going forward, in considering the appropriate federal funds rate, we will watch these developments closely and continue to carefully assess incoming data, the evolving outlook, and the balance of risks.
    Thank you again for the opportunity to speak to you today.

    1. The views expressed here are my own and are not necessarily those of my colleagues on the Federal Reserve Board or the Federal Open Market Committee. Return to text
    2. See Adriana D. Kugler (2024), “A Year in Review: A Tale of Two Supply Shocks,” speech delivered at the Detroit Economic Club, Detroit, Michigan, December 3. Return to text
    3. See Joaquin García-Cabo, Anna Lipińska, and Gaston Navarro (2023), “Sectoral Shocks, Reallocation, and Labor Market Policies,” European Economic Review, vol. 156 (July), 104494. Return to text
    4. See, for example, Lucia Foster, John Haltiwanger, and C.J. Krizan (2001), “Aggregate Productivity Growth: Lessons from Microeconomic Evidence,” in Charles R. Hulten, Edwin R. Dean, and Michael J. Harper, eds., New Developments in Productivity Analysis (Chicago: University of Chicago Press), pp. 303–63; and John Haltiwanger, Henry Hyatt, Erika McEntarfer, and Matthew Staiger (2025), “Cyclical Worker Flows: Cleansing vs. Sullying,” Review of Economic Dynamics, vol. 55 (January), 101252. Return to text
    5. See Myrto Oikonomou, Nicola Pierri, and Yannick Timmer (2023), “IT Shields: Technology Adoption and Economic Resilience during the COVID-19 Pandemic,” Labour Economics, vol. 81 (April), 102330. Return to text
    6. Estimates of current AI usage by firms vary widely, but uptake appears to be significant and rising. See Leland Crane, Michael Green, and Paul Soto (2025), “Measuring AI Uptake in the Workplace,” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, February 5). Return to text
    7. These data, which track applications to the Internal Revenue Service for new Employer Identification Numbers, are available from the Census Bureau’s Business Formation Statistics. I focus specifically on “high-propensity applications,” which are those applications deemed by the Census Bureau to be particularly likely to result in the creation of new firms with formal employees. Return to text
    8. See Francois de Soyres, Joaquin Garcia-Cabo Herrero, Nils Goernemann, Sharon Jeon, Grace Lofstrom, and Dylan Moore (2024), “Why Is the U.S. GDP Recovering Faster Than Other Advanced Economies?” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, May 17). Return to text
    9. For extensive documentation and analysis of the pandemic business entry patterns, see Ryan A. Decker and John Haltiwanger (2024), “Surging Business Formation in the Pandemic: Causes and Consequences?” Brookings Papers on Economic Activity, Fall, pp. 249–302; and Ryan Decker and John Haltiwanger (2024), “Surging Business Formation in the Pandemic: A Brief Update,” working paper. Return to text
    10. Data on employment among firms with age zero from the Bureau of Labor Statistics Business Employment Dynamics. These are annual data with a March reference period. Return to text
    11. For documentation of the pandemic high-tech entry surge, see Ryan Decker and John Haltiwanger (2024), “High Tech Business Entry in the Pandemic Era,” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, April 19). For the role of high-tech industries in aggregate productivity growth, see John G. Fernald (2015), “Productivity and Potential Output before, during, and after the Great Recession,” NBER Macroeconomics Annual, vol. 29, pp. 1–51. Return to text
    12. The relevant literature is vast. For example, see Marcela Eslava, John Haltiwanger, Adriana Kugler, and Maurice Kugler (2004), “The Effects of Structural Reforms on Productivity and Profitability Enhancing Reallocation: Evidence from Colombia,” Journal of Development Economics, vol. 75 (December), pp. 333–71; Titan Alon, David Berger, Robert Dent, and Benjamin Pugsley (2018), “Older and Slower: The Startup Deficit’s Lasting Effects on Productivity Growth,” Journal of Monetary Economics, vol. 93 (January), pp. 68–85; and Ryan Decker, John Haltiwanger, Ron Jarmin, and Javier Miranda (2014), “The Role of Entrepreneurship in US Job Creation and Economic Dynamism,” Journal of Economic Perspectives, vol. 28 (Summer), pp. 3–24. Return to text
    13. See Daron Acemoglu, Ufuk Akcigit, Harun Alp, Nicholas Bloom, and William Kerr (2018), “Innovation, Reallocation, and Growth,” American Economic Review, vol. 108 (November), pp. 3450–91; and Vincent Sterk, Petr Sedlacek, and Benjamin Pugsley (2021), “The Nature of Firm Growth,” American Economic Review, vol. 111 (February), pp. 547–79. Return to text
    14. See Lucia Foster, Cheryl Grim, John C. Haltiwanger, and Zoltan Wolf (2021), “Innovation, Productivity Dispersion, and Productivity Growth,” in Carol Corrado, Jonathan Haskel, Javier Miranda, and Daniel Sichel, eds., Measuring and Accounting for Innovation in the Twenty-First Century (Chicago: University of Chicago Press). Return to text
    15. Entry rates are measured as new firms as a share of all firms for 2021–22 (average) from the Census Bureau Business Dynamics Statistics; the Census Bureau data report entry rates for core-based statistical areas. Return to text
    16. The 5 Florida cities in the top 20 are Orlando-Kissimmee-Sanford, Miami-Fort Lauderdale-West Palm Beach, Cape Coral-Fort Myers, Tampa-St. Petersburg-Clearwater, and Crestview-Fort Walton Beach-Destin. Return to text
    17. I measure the pre-pandemic decade using average firm entry rates for 2010–19. The 8 Florida cities in the top 20 are Orlando-Kissimmee-Sanford, Miami-Fort Lauderdale-West Palm Beach, Cape Coral-Fort Myers, Wildwood-The Villages, Tampa-St. Petersburg-Clearwater, Naples-Marco Island, North Port-Bradenton-Sarasota, and Jacksonville. Return to text
    18. See, for example, David Autor, William Kerr, and Adriana Kugler (2007), “Do Employment Protections Reduce Productivity? Evidence from U.S. States,” Economic Journal, vol. 117 (June), pp. F189–F217; and Marcela Eslava, John Haltiwanger, Adriana Kugler, and Maurice Kugler (2004), “The Effects of Structural Reforms on Productivity and Profitability Enhancing Reallocation: Evidence from Colombia,” Journal of Development Economics, vol. 75 (December), pp. 333–71. Return to text
    19. Data from the 2023 American Community Survey. Return to text
    20. Analysis by Robert Fairlie using Bureau of Labor Statistics Current Population Survey data reported in Ruth Simon (2024), “Latinos Are Starting U.S. Businesses at a Torrid Pace,” Wall Street Journal, March 26. Return to text
    21. See Sari Pekkala Kerr and William Kerr (2020), “Immigrant Entrepreneurship in America: Evidence from the Survey of Business Owners 2007 & 2012,” Research Policy, vol. 49 (April), 103918. Return to text

    MIL OSI USA News –

  • MIL-OSI United Kingdom: expert reaction to Public Accounts Committee report on Carbon Capture, Usage, and Storage (CCUS) Technologies

    Source: United Kingdom – Executive Government & Departments

    Scientists comment on the Public Accounts Committee (PAC) report on Carbon Capture, Usage and Storage (CCUS) technologies. 

    Prof Hannah Chalmers, Personal Chair of Sustainable Energy Systems, Institute for Energy Systems, School of Engineering, University of Edinburgh, said:

    “CCUS technologies can play a unique role in tackling carbon dioxide emissions.  They can be used at large industrial sites to ensure that most of the carbon dioxide produced by activities like iron and steel production is not emitted to the atmosphere.  Instead, the carbon dioxide is permanently stored in geological formations (rocks).  In the UK, CCUS projects are developing plans to store carbon dioxide in layers of rock that are deep underneath the sea.

    “There is also ongoing work to develop and deploy cost-effective approaches to remove carbon dioxide directly from the air.  This provides an important option to respond to the widely reported increases in carbon dioxide levels in the atmosphere that are causing significant concern.

    “There is significant evidence that including CCUS in a mix of technologies to reduce carbon dioxide emissions will be the most cost-effective way to address climate change.  Several large-scale projects have been operating in other countries for many years.  Experience from these projects is being used to ensure that the CCUS projects that are being developed in the UK are designed to be reliable and cost-effective.”

     

    Dr Stuart Gilfillan, Reader in Geochemistry, University of Edinburgh, said:

    What is CCUS technology, how does it work, does it have limitations?

    “CCUS stands for Carbon Capture, Utilisation, and Storage, which is a developing technology which reduces the amount of carbon dioxide (CO2) released into the atmosphere. It works by capturing CO2 at the point source, transporting it and then burying it for safe storage in rocks over a kilometre below the ground surface. Like any technology, it has pros and cons, and costs more than simply releasing the CO2 directly to the atmosphere, which is currently free. CCUS is the only currently available technology that can directly reduce CO2 emissions from sources like power plants and industrial processes. Given that global temperature records are now being broken on an almost daily basis and yesterday’s announcement of the hottest January on record, it is essential tool in the urgent fight against runaway climate change.

    What is the existing evidence around the efficacy of CCUS?

    “CO2 capture technology has proven successful in capturing up to 90-95% of CO2 emissions from point of sources from power stations and industrial facilities. Successful examples include the Boundary Dam power station in Saskatchewan, Canada, where a large-scale CCUS unit has been operational since 2014, capturing about 1 million tonnes of CO2 per year.

    “The long-term storage of CO2 is proven by natural CO2 reservoirs around the world and engineered projects like Sleipner in the North Sea, which have been injecting CO2 beneath the seabed since 1996 without significant issues. Research over the past two decades has developed monitoring technologies that can detect and mitigate potential leakage and to ensure that CO2 remains securely buried in rocks deep underground.

    What more evidence may be needed to be confident in its applications?

    “No more evidence is required, as exemplified by the UK’s Climate Change Committee (CCC), which is an independent body established under the Climate Change Act who advise the government on emissions targets and report to Parliament on progress made in reducing greenhouse gas emissions. The CCC is clear that CCUS is a critical technology for the decarbonisation of the UK economy, particularly in sectors that are hard to decarbonize directly, such as heavy industry (steel, cement, chemicals) and power generation.

    “CCUS is not only as a standalone technology but is an essential part of a broader strategy to reach net-zero emissions by 2050. It compliments energy efficiency, renewable energy deployment, and electrification. CCUS is a clear driver for regional economic development, particularly in regions with suitable geological storage sites and industrial bases, such as the East Coast of Scotland, the Humber region, and North East England, areas that have been ‘left behind’ in recent times.”

     

    Dr Tim Dixon, IEA Greenhouse Gas, Director and General Manager, said:

    “Carbon Capture and Storage (CCS) is a necessary technology for the UK and other countries to achieve net-zero, and we need all low-carbon energy technologies. The science case for the role of CCS is provided by the UK’s Climate Change Committee, the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) and cannot be disputed if climate change is to be taken seriously. The key aspect of CCS is the secure long-term retention of CO2 in deep geological formations, and we have decades of experience in this from around the world. With over 40 large scale projects in operation injecting millions of tonnes every year and many pilot-scale projects, this has allowed us to test the science, the monitoring and the practicalities of geological storage of CO2. Hence CO2 geological storage is a proven technology and the regulations to enable and to ensure that it is safe and secure are based upon this sound science and experience. ”

     

    Professor Paul Fennell FIchemE, Professor of Clean Energy, Imperial College London, said:

    “The idea that Carbon Capture and Storage is an unproven technology is simply untrue.  There are projects ongoing around the world, and millions of tonnes of CO2 have been safely stored over the last couple of decades.  This has not happened in the U.K. because of our sclerotic inability to develop public infrastructure, not because the technology is unproven.”

     

    Dr Greg Mutch, Researcher in Carbon Capture and Storage, Newcastle University, said:

    “Carbon capture and storage is a technology that prevents carbon dioxide from entering the atmosphere, by capturing it and storing it underground in ‘empty’ oil & gas reservoirs or saline aquifers. According to the world’s foremost experts on the subject, gathered to contribute the International Panel on Climate Change, carbon capture and storage processes are necessary to achieve climate change mitigation goals at lowest cost. Without scalable CCS technologies by the end of the century, climate change mitigation will cost between 29 and 297% (mean value 138%) more.[1] Moreover, CCS is predicted to provide tens of thousands of jobs in the UK, add several billion pounds in terms of gross value added per year by 2050,[2] and enable other important technologies (hydrogen production etc) that will come with further jobs and economic value.”

    [1] IPCC, 2018: Global Warming of 1.5 °C. An IPCC Special Report on the impacts of global warming of 1.5 °C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty, ed. V. Masson-Delmotte, P. Zhai, H.-O. Portner, D. Roberts, J. Skea, P. R. Shukla, A. Pirani, W. Moufouma-Okia, C. Pean, R. Pidcock, S. Connors, J. B. R. Matthews, Y. Chen, X. Zhou, M. I. Gomis, E. Lonnoy, T. Maycock, M. Tignor and T. Waterfield, Cambridge University Press, 2018.

    [2] Energy Innovation Needs Assessment Sub-theme report: Carbon capture, utilisation, and storage, Vivid Economics, Carbon Trust, E4tech, Imperial College London, Frazer-Nash Consultancy, Energy Systems Catapult. Commissioned by the Department for Business, Energy & Industrial Strategy, 2019.

    Professor Peter Styring, Director of the UK Centre for Carbon Dioxide Utilization, Professor of Chemical Engineering & Chemistry, University of Sheffield, said:

    What is CCUS technology, how does it work, does it have limitations?

    “CCUS is carbon capture and storage. This has been primarily focused on CCS as the main driver. It aims to capture carbon dioxide from emitters such as power stations and industries. The current technology temperature swing absorption (TSA)  using a chemical reaction with an aqueous amine solvent to capture the CO2 from the mixed waste gas and then to release it in a purified form by increased temperature chemical desorption and then further drying and purification to get a gas that can be in theory transported to a site where the gas can be stored underground. It works but at a high energy cost and the production of amine decomposition products that need to be removed and more amine added. It costs a lot!

    “Limitations are the energy and financial costs, permitting regulations on solvent disclosure and the large physical footprint. Full system lifecycle analysis is required but this is not always reported.”

    What is the existing evidence around the efficacy of CCUS?

    “This is not proven using current technologies. The problem is that the current government funded projects use old technologies to achieve CCS and what is actually needed is a step change to new, lower cost more efficient processes such as solid based pressure swing adsorption (PSA). The whole system tends to be simpler and the energy costs and land use is significantly reduced.”

    What more evidence may be needed to be confident in its applications?

    “Full evaluation of new technologies and rapid acceleration from proof of concept to capture at scale. The Innovate UK funded Flue2Chem project is a good example of how this is being addressed using mid-TRL technologies. The UK also needs to move away from a single minded storage approach to adding value through the use of CO2 in the production of chemicals that would otherwise be sourced from virgin fossil carbon. SUSTAIN project is making synthetic fuels from captured CO2 and Flue2Chem is making FMCG components, including surfactants and precursors from the CO2.”

     

    Dr Stuart Jenkins, Net Zero Fossil Fuel Fellow, University of Oxford, said:

    “The Public Accounts Committee are wrong to have labelled CCUS as ‘unproven’, there are many commercial scale projects around the world, but they are right to question the current model for funding it. We need to make sure the CCUS industry becomes self-sustaining, without the need for major taxpayer funding. One option — asking fossil fuel suppliers to contribute to these costs via a carbon storage mandate — is a fair and responsible approach going forward.

    In a recent report we published working with researchers at the University of Oxford and Carbon Balance Initiative [1] we looked at the use of Carbon Storage Mandates, which place an obligation on fossil fuel producers to capture and store a rising fraction of the CO2 they produce, to support the UK’s CCUS industry. 

    Carbon storage mandates, in tandem with carbon pricing and other mechanisms, could deliver subsidy-free CCUS to the UK and provide investment certainty for companies.”

    [1]- https://www.carbon-balance.earth/briefs-reports/report-markets-and-mandates 

    https://committees.parliament.uk/committee/127/public-accounts-committee/news/205139/carbon-capture-high-degree-of-uncertainty-whether-risky-investment-by-govt-will-pay-off/#:~:text=In%20a%20report%20published%20today,and%20the%20cost%20of%20living

    Declared interests

    Dr Stuart Jenkins Our report was funded by the Carbon Capture and Storage Association, and consulted regulators, fossil fuel companies, capture and storage entities, UK Government, and academics on models for CCUS sector support packages. 

    Professor Paul Fennell: No conflicts other than being involved in CCs research.

    Dr Tim Dixon: “Tim is a Director of IEA Environmental Projects Ltd (UK), a Non-Executive Director on the Board for The International CCS Knowledge Centre (Canada). He is also proud to be an Honorary Senior Research Fellow at the Bureau of Economic Geology, University of Texas in Austin, and an Honorary Lecturer at the School of Geosciences at University of Edinburgh. He was an original Board Member of the UK CCS Research Centre. Previously he worked in CCS, emissions trading, clean energy technologies and related areas for AEA Technology (ETSU), for the UK Government‘s Department of Trade and Industry (DTI) and for the Global CCS Institute. He was the EU’s Lead Negotiator for getting CCS in the CDM in UNFCCC in 2011, and a UK negotiator for getting CCS in the London Convention 2004-7, in OSPAR 2006-7, in the EU Emission Trading Scheme 2004-8, and inputting to the EU CCS Directive 2007-8. He gives talks on climate and CCS to schools and public organisations and supported the start of Oxford Climate Society at the University of Oxford. He is a Fellow of the UK Energy Institute, and member of the UK Institute of Physics and the UK Environmental Law Association.”

    Dr Stuart Gilfillan “I have received funding from TotalEnergies in the past, for research related to CO2 origins in the subsurface and reservoir connectivity and Equinor on CO2 dissolution in natural CO2 reservoirs. I currently receive funding from the Natural Environment Research Council and Carbfix on CO2 mineralisation.”

    Prof Hannah Chalmers “I work collaboratively with industrial partners who are developing CCUS projects in the UK (e.g. as a member of the Advisory Board for the Industrial Decarbonisation Research and Innovation Centre).  I currently receive no funding from industry, but have received funding from industrial partners who are actively developing CCUS projects in the UK in the past (e.g. SSE plc).”

    Professor Peter Styring: Peter is Professor of Chemical Engineering and Chemistry at the University of Sheffield (an investigator on Flue2Chem and SUSTAIN) and a Co-founder and Director of CCU International.

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

    MIL OSI United Kingdom –

  • MIL-OSI USA News: Statement from the Press Secretary on January’s Jobs Reports

    Source: The White House

    class=”has-text-align-left”>“Today’s jobs report reveals the Biden economy was far worse than anyone thought, and underscores the necessity of President Trump’s pro-growth policies. During his first weeks in office, President Trump declared a national energy emergency to Make America Energy Dominant Again, pledged to cut 10 regulations for every new regulatory action, and outlined a plan to deliver the largest tax cut in history for hardworking Americans. President Trump is delivering on his promise to restore our broken economy, revive small business optimism, create jobs, and ignite a new Golden Age for America.”

      – Karoline Leavitt

    MIL OSI USA News –

  • MIL-OSI Russia: Dmitry Grigorenko: The first programs for digital transformation of departments for 2025 have been approved

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    Dmitry Grigorenko’s meeting with heads of digital transformation of federal executive bodies

    February 7, 2025

    Dmitry Grigorenko’s meeting with heads of digital transformation of federal executive bodies

    February 7, 2025

    Dmitry Grigorenko at a meeting with heads of digital transformation of federal executive bodies

    February 7, 2025

    Previous news Next news

    Dmitry Grigorenko’s meeting with heads of digital transformation of federal executive bodies

    Digital transformation programs for 2025 and the planning period 2026–2027 have been adopted for 11 federal ministries and departments. They were reviewed at a meeting of Deputy Prime Minister – Chief of the Government Staff Dmitry Grigorenko with heads of digital transformation of federal executive bodies.

    The meeting approved development programs for the Ministry of Emergency Situations, the Ministry of Industry and Trade, the Ministry of Digital Development, the Ministry of Energy, the Russian National Guard, the Federal Service for Supervision in Education and Science, the Federal Archives Agency, the Federal Reserve Agency, the Federal Fisheries Agency, the Federal Bailiff Service, and the Federal Mandatory Medical Insurance Fund. Their projects provide for all the main planning parameters with established target indicators: funding volumes; key results (e.g., harmonizing departmental information resources, increasing the speed of processing interdepartmental requests); infrastructure development (e.g., transferring systems to Russian software and Russian information security tools).

    “In total, we have to approve 60 departmental digital transformation programs. Their implementation is aimed at increasing the efficiency of the departments themselves and public administration as a whole. This includes the quality of decisions made based on data received online, and the transparent implementation of key functions, and the speed of providing public services,” commented Dmitry Grigorenko.

    For example, the Compulsory Medical Insurance Fund plans to introduce a system of personalized accounting of information on medical care provided in 2025. This will allow receiving information about insured citizens online, reducing errors in medical organizations’ bills, generating information about everyone who is subject to dispensary observation, creating individual medical examination routes for them, etc. Based on this information, personal risks of insured persons will be calculated, and forecasts of medical care consumption will be built.

    Taking into account the implementation of the tasks set within the framework of departmental digital transformation programs, a number of additional priorities were also identified at the meeting. Thus, among the tasks for 2025 is to introduce artificial intelligence technologies into the feedback platform. This will allow for the fastest possible classification of citizens’ requests by issue and assessment of the quality of responses to them. Also, special attention will be paid to ensuring information security in 2025.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI United Kingdom: A926 Emergency Gas Repair Works – Update, 7 February 2025

    Source: Scotland – City of Perth

    We are pleased to advise that the section of road on the A926 from Rattray to Alyth at Pictfield which was closed for emergency gas repairs has now reopened to traffic.

    Temporary traffic signals will be in operation while SGN repair works are ongoing, so some delays should be expected.

    Stagecoach East Scotland have confirmed that with the road reopening, they will resume normal operation of their bus services from 2pm today. School transport contracts will also revert to their normal arrangements.

    Thank you for your patience while the repairs continue.

    Last modified on 07 February 2025

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    MIL OSI United Kingdom –

  • MIL-OSI: Ninepoint’s Energy Fund Awarded FundGrade A+ Award

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Feb. 07, 2025 (GLOBE NEWSWIRE) — Ninepoint Partners LP (“Ninepoint”) is pleased to announce its Ninepoint Energy Fund (the “Fund”) has received a FundGrade A+ Award at Fundata’s 2024 Evening of Excellence event recently held in Toronto. The FundGrade A+ award has been accepted and embraced by the financial services industry as an objective, independent mark of distinction for those funds and fund managers who receive the award. This award acknowledges Canadian investment funds that have maintained an exceptional performance rating over the entire previous calendar year.

      CIFSC
    Category    		 Fund Count FundGrade
    Start Date    		 FundGrade
    Calculation Date
    Ninepoint Energy Fund Energy Equity 18 12/31/2014 12/31/2024


    Fund Objective

    The Ninepoint Energy Fund seeks to achieve long-term capital growth. The Fund invests primarily in equity and equity-related securities of companies that are involved directly or indirectly in the exploration, development, production and distribution of oil, gas, coal, or uranium and other related activities in the energy and resource sector.

    Compounded Returns (as of December 31, 2024) |   Inception date: April 15, 2004 (Series F)

      1 YR 3 YR 5 YR 10 YR 15 YR Since Inception
    Ninepoint Energy Fund,
    Series F    		 13.2% 17.8% 29.5% 7.8% 6.1% 7.2%

    All returns and fund details are a) based on Series F units; b) net of fees; c) annualized if period is greater than one year

    For more information about the Fund, please visit https://www.ninepoint.com/funds/ninepoint-energy-fund/

    About the Fundata FundGrade A+®Award

    FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

    About Ninepoint Partners LP

    Based in Toronto, Ninepoint Partners LP is one of Canada’s leading alternative investment management firms overseeing approximately $7 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies spanning Equities, Fixed Income, Alternative Income, Real Assets, F/X and Digital Assets.

    For more information on Ninepoint Partners LP, please visit www.ninepoint.com or for inquiries regarding the offering, please contact us at (416) 943-6707 or (866) 299-9906 or invest@ninepoint.com.

    For more information, please contact:

    Sales Inquiries:

    Neil Ross
    Ninepoint Partners
    416.945.6227
    nross@ninepoint.com

    Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”).

    The Fund is generally exposed to the following risks. See the prospectus of the Fund for a description of these risks: concentration risk; credit risk; currency risk; cybersecurity risk; derivatives risk; energy risk; exchange traded funds risk; foreign investment risk; inflation risk; interest rate risk; liquidity risk; market risk; performance fee risk; regulatory risk; Rule 144A and other exempted securities risk; securities lending, repurchase and reverse repurchase transactions risk; series risk; short selling risk; small capitalization natural resource company risk; specific issuer risk; tax risk; Absence of an active market for ETF Series risk; Halted trading of ETF Series risk; Trading price of ETF Series risk.

    Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The indicated rate of return for series F units of the Funds for the period ended December 31, 2024 is based on the historical annual compounded total return including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Funds.

    The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Funds may be lawfully sold in their jurisdiction.

    The MIL Network –

  • MIL-OSI: MREL and MDIV Earn FundGrade A+® Ratings For 2024

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Feb. 07, 2025 (GLOBE NEWSWIRE) — Middlefield is pleased to announce that two of its core ETFs—Middlefield Real Estate Dividend ETF (MREL) and Middlefield Sustainable Global Dividend ETF (MDIV)—have been awarded the Fundata FundGrade A+® rating for 2024. This prestigious distinction is given to Canadian investment funds that have consistently delivered the best risk-adjusted returns over an entire calendar year.

    “Receiving the FundGrade A+® award for both MREL and MDIV reflects our disciplined investment approach and commitment to delivering consistent, risk-adjusted returns for our investors,” said Dean Orrico, President and CEO of Middlefield. “Real estate and dividend-focused equities help create more resilient portfolios by providing reliable income streams, managing risk, and enhancing stability. In light of the current uncertain market backdrop, we believe these strategies are excellent diversifiers for investor portfolios, and we look forward to building on this success in 2025.”

    About the Award-Winning Funds

    Middlefield Real Estate Dividend ETF (MREL)
    MREL is designed to provide investors with stable monthly income and long-term capital appreciation by investing in a diversified portfolio of high-quality global real estate companies. Since its launch in 2011, the fund has taken an actively managed approach, leveraging the expertise of Middlefield’s investment team to identify leading real estate businesses with growing cash flows and increasing dividends. For the second consecutive year, MREL has earned the FundGrade A+® rating, reinforcing its consistent performance and ability to navigate various market cycles.

    Middlefield Sustainable Global Dividend ETF (MDIV)
    MDIV is a high-conviction portfolio of global companies diversified across geographies and industries, with a focus on businesses that pay and grow dividends. Since its inception in 2013, the fund has prioritized large capitalization, high quality companies with durable business models and a strong track record of earnings growth.

    Additionally, Middlefield’s flagship North American fund, Income Plus Class, finished 2024 with a Fundata FundGrade A® rating, which is awarded to funds that substantially outperform their peers, ranking in the top 10% of their category.

    Learn more about MREL
    Learn more about MDIV
    Learn more about Income Plus

    For any questions or media requests, please contact Cassandra Coleman at ccoleman@middlefield.com.

    Founded in 1979, Middlefield is a Toronto-based asset manager specializing in innovative investment solutions. Over the past 45 years, we have developed a disciplined investment process across six core equity income mandates: Real Estate, Healthcare, Innovation, Infrastructure, Energy, and Diversified Income. We focus on high-quality companies with strong cash flow and dividend growth potential.

    Our investment solutions include award-winning ETFs and Mutual Funds, designed to meet the needs of advisors, institutional investors, and individual investors. Backed by a dedicated team, we strive to deliver superior returns through expertise and disciplined portfolio management.

    Disclosure: FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

    Performance for Funds: Middlefield Real Estate Dividend ETF (MREL) won the 2024 FundGrade A+® in the Real Estate Equity Category, out of 29 funds. The FundGrade A+® performance start date was 12/31/2014 and the FundGrade A+® performance end date was 12/31/2024. Performance for the fund for the period ended December 31, 2024 is as follows: 7.0% (1 year), -3.4% (3 years), 3.4% (5 years), 6.3% (10 years) and since inception 7.2% (since inception – April 20, 2011). Middlefield Sustainable Global Dividend ETF (MDIV) won the 2024 FundGrade A+® in the Global Dividend & Income Equity Category, out of 39 funds. The FundGrade A+® performance start date was 12/31/2014 and the FundGrade A+® performance end date was 12/31/2024. Performance for the fund for the period ended December 31, 2024 is as follows: 43.7% (1 year), 13.1% (3 years), 14.0% (5 years), 11.8% (10 years) and since inception 12.6% (since inception – March 22, 2013). 

    Disclaimer: Please consult your advisor and read the prospectus document before investing. There may be commissions, trailing commissions, management fees and expenses associated with ETF investments. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

    The MIL Network –

  • MIL-OSI: Plains All American Reports Fourth-Quarter and Full-Year 2024 Results; Provides Update on Efficient Growth Initiatives and Announces 2025 Guidance

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Feb. 07, 2025 (GLOBE NEWSWIRE) — Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported fourth-quarter and full-year 2024 results, announced 2025 guidance and provided the following highlights:

    2024 Results

    • Fourth-quarter and full-year 2024 Net income attributable to PAA of $36 million and $772 million, respectively, and 2024 Net cash provided by operating activities of $726 million and $2.49 billion, respectively
    • Delivered strong fourth-quarter and full-year 2024 Adjusted EBITDA attributable to PAA above the top-end of guidance with $729 million and $2.78 billion, respectively
    • Generated full-year 2024 Adjusted Free Cash Flow (excluding changes in Assets & Liabilities; including impact from legal settlements) of $1.17 billion and exited the year with leverage at 3.0x
    • Net income for the quarter includes the impact of a $225 million charge resulting from the write-off of a receivable for Line 901 insurance proceeds and $140 million of non-cash charges related to the write-down of two U.S. NGL terminals

    Efficient Growth Initiatives

    • Closed all three previously announced bolt-on acquisitions for approximately $670 million net to PAA, including the acquisition of Ironwood Midstream Energy
    • Closed on previously announced purchase of approximately 12.7 million units, or 18%, of its Series A Preferred Units for a purchase price of approximately $330 million
    • Continue pursuing a long runway of synergistic and strong return bolt-on opportunities across the asset footprint

    2025 Outlook

    • Expect full-year 2025 Adjusted EBITDA attributable to PAA of $2.80 – $2.95 billion
    • Announced distribution increase of $0.25 per unit payable February 14, 2025, representing a 20% aggregate increase in the annualized distribution versus 2024 levels (new annual distribution of $1.52 per unit)
    • In January, successfully raised $1 billion in aggregate senior unsecured notes at 5.95% due 2035
    • Anticipate leverage ratio to be at or below the low-end of leverage target range of 3.25x to 3.75x, continuing to provide significant balance sheet optionality and flexibility
    • Expect to generate approximately $1.15 billion of Adjusted Free Cash Flow (excluding changes in Assets & Liabilities), which is reduced by approximately $580 million for previously announced bolt-on transactions closed in the first quarter
    • Remain focused on disciplined capital investments, anticipating full-year 2025 Growth Capital of +/- $400 million and Maintenance Capital of +/- $240 million net to PAA

    “We continue delivering strong financial and operating results and increasing return of capital to unitholders. As evidenced by our recently announced acquisitions, we have the ability to leverage our integrated asset base and financial strength to drive accretive transactions and deliver value to our customers and unitholders,” said Plains Chairman and CEO Willie Chiang. “We remain confident entering 2025, with strong operational momentum and focus on executing our efficient growth strategy. Our strong performance and positive outlook combined with the contribution from recent bolt-on acquisitions continues driving meaningful cash flow and underpins increasing returns to unitholders all while maintaining capital discipline and financial flexibility.”

    Plains All American Pipeline

    Summary Financial Information (unaudited)
    (in millions, except per unit data)

        Three Months Ended
    December 31,    		   %     Twelve Months Ended
    December 31,    		   %
    GAAP Results   2024   2023
    		   Change     2024
    		   2023
    		   Change
    Net income attributable to PAA   $ 36     $ 312       (88 )%     $ 772     $ 1,230       (37 )%
    Diluted net income/(loss) per common unit   $ (0.04 )   $ 0.35       (111 )%     $ 0.73     $ 1.40       (48 )%
    Diluted weighted average common units outstanding     704       701       — %       702       699       — %
    Net cash provided by operating activities   $ 726     $ 1,011       (28 )%     $ 2,490     $ 2,727       (9 )%
    Distribution per common unit declared for the period   $ 0.3800     $ 0.3175       20 %     $ 1.3325     $ 1.1200       19 %
                                                       
        Three Months Ended
    December 31,    		   %     Twelve Months Ended
    December 31,    		   %
    Non-GAAP Results (1)   2024   2023
    		   Change     2024
    		   2023
    		   Change
    Adjusted net income attributable to PAA   $ 357     $ 355       1 %     $ 1,318     $ 1,250       5 %
    Diluted adjusted net income per common unit   $ 0.42     $ 0.42       — %     $ 1.51     $ 1.42       6 %
    Adjusted EBITDA   $ 867     $ 875       (1 )%     $ 3,326     $ 3,167       5 %
    Adjusted EBITDA attributable to PAA (2)   $ 729     $ 737       (1 )%     $ 2,779     $ 2,711       3 %
    Implied DCF per common unit and common unit equivalent   $ 0.64     $ 0.68       (6 )%     $ 2.49     $ 2.46       1 %
    Adjusted Free Cash Flow   $ 365     $ 710     **     $ 1,247     $ 1,798       (31 )%
    Adjusted Free Cash Flow after Distributions   $ 79     $ 458     **     $ 102     $ 809       (87 )%
    Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) (3)   $ 134     $ 402       **     $ 1,173     $ 1,604       (27 )%
    Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) (3)   $ (152 )   $ 150     **     $ 28     $ 615       (95 )%
         
    ** Indicates that variance as a percentage is not meaningful.
    (1) See the section of this release entitled “Non-GAAP Financial Measures and Selected Items Impacting Comparability” and the tables attached hereto for information regarding our Non-GAAP financial measures, including their reconciliation to the most directly comparable measures as reported in accordance with GAAP, and certain selected items that PAA believes impact comparability of financial results between reporting periods.
    (2) Excludes amounts attributable to noncontrolling interests in the Plains Oryx Permian Basin LLC joint venture, Cactus II Pipeline LLC and Red River Pipeline LLC.
    (3) Fourth-quarter and full-year 2024 Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) includes the negative impact of a $225 million charge resulting from the write-off of a receivable for Line 901 insurance proceeds.
         

    Summary of Selected Financial Data by Segment (unaudited)
    (in millions)

      Segment Adjusted EBITDA
      Crude Oil   NGL
    Three Months Ended December 31, 2024 $ 569     $ 154  
    Three Months Ended December 31, 2023 $ 563     $ 169  
    Percentage change in Segment Adjusted EBITDA versus 2023 period 1 %   (9 )%
               
      Segment Adjusted EBITDA
      Crude Oil   NGL
    Twelve Months Ended December 31, 2024 $ 2,276     $ 480  
    Twelve Months Ended December 31, 2023 $ 2,163     $ 522  
    Percentage change in Segment Adjusted EBITDA versus 2023 period 5 %   (8 )%
               

    Fourth-quarter 2024 Crude Oil Segment Adjusted EBITDA increased 1% versus comparable 2023 results primarily due to higher tariff volumes on our pipelines, tariff escalations and contributions from acquisitions. These items were partially offset by fewer market-based opportunities, as well as an increase in estimated costs for long-term environmental remediation obligations.

    Fourth-quarter 2024 NGL Segment Adjusted EBITDA decreased 9% versus comparable 2023 results primarily due to lower weighted average frac spreads in the fourth quarter of 2024.

    Plains GP Holdings

    PAGP owns an indirect non-economic controlling interest in PAA’s general partner and an indirect limited partner interest in PAA. As the control entity of PAA, PAGP consolidates PAA’s results into its financial statements, which is reflected in the condensed consolidating balance sheet and income statement tables attached hereto.

    Conference Call and Webcast Instructions

    PAA and PAGP will hold a joint conference call at 9:00 a.m. CT on Friday, February 7, 2025 to discuss fourth-quarter performance and related items.

    To access the internet webcast, please go to https://edge.media-server.com/mmc/p/xp2zqt6q/.

    Alternatively, the webcast can be accessed on our website at https://ir.plains.com/news-events/events-presentations. Following the live webcast, an audio replay will be available on our website and will be accessible for a period of 365 days. Slides will be posted prior to the call at the above referenced website.

    Non-GAAP Financial Measures and Selected Items Impacting Comparability

    To supplement our financial information presented in accordance with GAAP, management uses additional measures known as “non-GAAP financial measures” in its evaluation of past performance and prospects for the future and to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. The primary additional measures used by management are Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied Distributable Cash Flow (“DCF”), Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions.

    Our definition and calculation of certain non-GAAP financial measures may not be comparable to similarly-titled measures of other companies. Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied DCF and certain other non-GAAP financial performance measures are reconciled to Net Income, and Adjusted Free Cash Flow, Adjusted Free Cash Flow after Distributions and certain other non-GAAP financial liquidity measures are reconciled to Net Cash Provided by Operating Activities (the most directly comparable measures as reported in accordance with GAAP) for the historical periods presented in the tables attached to this release, and should be viewed in addition to, and not in lieu of, our Consolidated Financial Statements and accompanying notes. In addition, we encourage you to visit our website at www.plains.com (in particular the section under “Financial Information” entitled “Non-GAAP Reconciliations” within the Investor Relations tab), which presents a reconciliation of our commonly used non-GAAP and supplemental financial measures. We do not reconcile non-GAAP financial measures on a forward-looking basis as it is impractical to do so without unreasonable effort.

    Non-GAAP Financial Performance Measures

    Adjusted EBITDA is defined as earnings before (i) interest expense, (ii) income tax (expense)/benefit, (iii) depreciation and amortization (including our proportionate share of depreciation and amortization, including write-downs related to cancelled projects and impairments, of unconsolidated entities), (iv) gains and losses on asset sales, asset impairments and other, net, (v) gains and losses on investments in unconsolidated entities and (vi) interest income on promissory notes by and among PAA and certain Plains entities, and (vii) adjusted for certain selected items impacting comparability. Adjusted EBITDA attributable to PAA excludes the portion of Adjusted EBITDA that is attributable to noncontrolling interests.

    Management believes that the presentation of Adjusted EBITDA, Adjusted EBITDA attributable to PAA and Implied DCF provides useful information to investors regarding our performance and results of operations because these measures, when used to supplement related GAAP financial measures, (i) provide additional information about our core operating performance and ability to fund distributions to our unitholders through cash generated by our operations and (ii) provide investors with the same financial analytical framework upon which management bases financial, operational, compensation and planning/budgeting decisions. We also present these and additional non-GAAP financial measures, including adjusted net income attributable to PAA and basic and diluted adjusted net income per common unit, as they are measures that investors, rating agencies and debt holders have indicated are useful in assessing us and our results of operations. These non-GAAP financial performance measures may exclude, for example, (i) charges for obligations that are expected to be settled with the issuance of equity instruments, (ii) gains and losses on derivative instruments that are related to underlying activities in another period (or the reversal of such adjustments from a prior period), gains and losses on derivatives that are either related to investing activities (such as the purchase of linefill) or purchases of long-term inventory, and inventory valuation adjustments, as applicable, (iii) long-term inventory costing adjustments, (iv) items that are not indicative of our core operating results and/or (v) other items that we believe should be excluded in understanding our core operating performance. These measures may be further adjusted to include amounts related to deficiencies associated with minimum volume commitments whereby we have billed the counterparties for their deficiency obligation and such amounts are recognized as deferred revenue in “Other current liabilities” in our Consolidated Financial Statements. We also adjust for amounts billed by our equity method investees related to deficiencies under minimum volume commitments. Such amounts are presented net of applicable amounts subsequently recognized into revenue. Furthermore, the calculation of these measures contemplates tax effects as a separate reconciling item, where applicable. We have defined all such items as “selected items impacting comparability.” Due to the nature of the selected items, certain selected items impacting comparability may impact certain non-GAAP financial measures, referred to as adjusted results, but not impact other non-GAAP financial measures. We do not necessarily consider all of our selected items impacting comparability to be non-recurring, infrequent or unusual, but we believe that an understanding of these selected items impacting comparability is material to the evaluation of our operating results and prospects.

    Although we present selected items impacting comparability that management considers in evaluating our performance, you should also be aware that the items presented do not represent all items that affect comparability between the periods presented. Variations in our operating results are also caused by changes in volumes, prices, exchange rates, mechanical interruptions, acquisitions, divestitures, investment capital projects and numerous other factors. These types of variations may not be separately identified in this release, but will be discussed, as applicable, in management’s discussion and analysis of operating results in our Annual Report on Form 10-K.

    Non-GAAP Financial Liquidity Measures

    Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. Adjusted Free Cash Flow is defined as Net Cash Provided by Operating Activities, less Net Cash Provided by/(Used in) Investing Activities, which primarily includes acquisition, investment and maintenance capital expenditures, investments in unconsolidated entities and the impact from the purchase and sale of linefill, net of proceeds from the sales of assets and further impacted by distributions to and contributions from noncontrolling interests and proceeds from the issuance of related party notes. Adjusted Free Cash Flow is further reduced by cash distributions paid to our preferred and common unitholders to arrive at Adjusted Free Cash Flow after Distributions.

    We also present these measures and additional non-GAAP financial liquidity measures as they are measures that investors have indicated are useful. We present the Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) for use in assessing our underlying business liquidity and cash flow generating capacity excluding fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period. Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) is defined as Adjusted Free Cash Flow excluding the impact of “Changes in assets and liabilities, net of acquisitions” on our Condensed Consolidated Statements of Cash Flows. Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) is further reduced by cash distributions paid to our preferred and common unitholders to arrive at Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities).

           
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in millions, except per unit data)
           
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2023   2024   2023
    REVENUES $ 12,402     $ 12,698     $ 50,073     $ 48,712  
                   
    COSTS AND EXPENSES              
    Purchases and related costs   11,227       11,558       45,560       44,531  
    Field operating costs (1)   578       363       1,768       1,425  
    General and administrative expenses   93       87       381       350  
    Depreciation and amortization   258       273       1,026       1,048  
    (Gains)/losses on asset sales, asset impairments and other, net   159       (9 )     160       (152 )
    Total costs and expenses   12,315       12,272       48,895       47,202  
                   
    OPERATING INCOME   87       426       1,178       1,510  
                   
    OTHER INCOME/(EXPENSE)              
    Equity earnings in unconsolidated entities   154       92       452       369  
    Gain on investments in unconsolidated entities, net   15       —       15       28  
    Interest expense, net (2)   (112 )     (97 )     (430 )     (386 )
    Other income, net (2)   20       17       65       102  
                   
    INCOME BEFORE TAX   164       438       1,280       1,623  
    Current income tax expense (3)   (52 )     (41 )     (195 )     (145 )
    Deferred income tax benefit   7       2       28       24  
                   
    NET INCOME   119       399       1,113       1,502  
    Net income attributable to noncontrolling interests   (83 )     (87 )     (341 )     (272 )
    NET INCOME ATTRIBUTABLE TO PAA $ 36     $ 312     $ 772     $ 1,230  
                   
    NET INCOME/(LOSS) PER COMMON UNIT:              
    Net income/(loss) allocated to common unitholders — Basic and Diluted $ (27 )   $ 248     $ 514     $ 976  
    Basic and diluted weighted average common units outstanding   704       701       702       699  
    Basic and diluted net income/(loss) per common unit $ (0.04 )   $ 0.35     $ 0.73     $ 1.40  
         
    (1) Field operating costs include $225 million and $345 million for the three and twelve months ended December 31, 2024, respectively, resulting from adjustments related to the Line 901 incident that occurred in May 2015, including the write-off of a receivable for Line 901 insurance proceeds in the fourth quarter of 2024 and settlements in the third quarter of 2024.
    (2) PAA and certain Plains entities have issued promissory notes by and among such entities to facilitate financing. “Interest expense, net” and “Other income, net” each include $17 million and $48 million for the three and twelve months ended December 31, 2024, respectively, related to interest on such notes. These amounts offset and do not impact Net Income or Non-GAAP metrics such as Adjusted EBITDA, Implied DCF and Adjusted Free Cash Flow.
    (3) The increase in current income tax expense for the 2024 periods was largely associated with Canadian withholding tax on dividends from our Canadian entities to other Plains entities driven by timing of dividend payments.
         
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    CONDENSED CONSOLIDATED BALANCE SHEET DATA
    (in millions)
           
      December 31,
    2024    		   December 31,
    2023
    ASSETS      
    Current assets (including Cash and cash equivalents of $348 and $450, respectively) $ 4,802     $ 4,913  
    Property and equipment, net   15,424       15,782  
    Investments in unconsolidated entities   2,811       2,820  
    Intangible assets, net   1,677       1,875  
    Linefill   968       976  
    Long-term operating lease right-of-use assets, net   332       313  
    Long-term inventory   280       265  
    Other long-term assets, net   268       411  
    Total assets $ 26,562     $ 27,355  
           
    LIABILITIES AND PARTNERS’ CAPITAL      
    Current liabilities $ 4,950     $ 5,003  
    Senior notes, net   7,141       7,242  
    Other long-term debt, net   72       63  
    Long-term operating lease liabilities   313       274  
    Other long-term liabilities and deferred credits   990       1,041  
    Total liabilities   13,466       13,623  
           
    Partners’ capital excluding noncontrolling interests   9,813       10,422  
    Noncontrolling interests   3,283       3,310  
    Total partners’ capital   13,096       13,732  
    Total liabilities and partners’ capital $ 26,562     $ 27,355  
                   

    DEBT CAPITALIZATION RATIOS
    (in millions)

      December 31,
    2024    		   December 31,
    2023
    Short-term debt $ 408     $ 446  
    Long-term debt   7,213       7,305  
    Total debt $ 7,621     $ 7,751  
           
    Long-term debt $ 7,213     $ 7,305  
    Partners’ capital excluding noncontrolling interests   9,813       10,422  
    Total book capitalization excluding noncontrolling interests (“Total book capitalization”) $ 17,026     $ 17,727  
    Total book capitalization, including short-term debt $ 17,434     $ 18,173  
           
    Long-term debt-to-total book capitalization   42 %     41 %
    Total debt-to-total book capitalization, including short-term debt   44 %     43 %
                   
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    COMPUTATION OF BASIC AND DILUTED NET INCOME/(LOSS) PER COMMON UNIT (1)
    (in millions, except per unit data)
           
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2023   2024   2023
    Basic and Diluted Net Income/(Loss) per Common Unit              
    Net income attributable to PAA $ 36     $ 312     $ 772     $ 1,230  
    Distributions to Series A preferred unitholders   (44 )     (44 )     (175 )     (173 )
    Distributions to Series B preferred unitholders   (19 )     (20 )     (78 )     (76 )
    Amounts allocated to participating securities   (1 )     (1 )     (10 )     (10 )
    Other   1       1       5       5  
    Net income/(loss) allocated to common unitholders $ (27 )   $ 248     $ 514     $ 976  
                   
    Basic and diluted weighted average common units outstanding (2) (3)   704       701       702       699  
                   
    Basic and diluted net income/(loss) per common unit $ (0.04 )   $ 0.35     $ 0.73     $ 1.40  
         
    (1) We calculate net income/(loss) allocated to common unitholders based on the distributions pertaining to the current period’s net income. After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to common unitholders and participating securities in accordance with the contractual terms of our partnership agreement in effect for the period and as further prescribed under the two-class method.
    (2) The possible conversion of our Series A preferred units was excluded from the calculation of diluted net income/(loss) per common unit for each of the three and twelve months ended December 31, 2024 and 2023 as the effect was antidilutive.
    (3) Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered potentially dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.
         
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    CONDENSED CONSOLIDATED CASH FLOW DATA
    (in millions)
       
      Twelve Months Ended
    December 31, 2024
      2024   2023
    CASH FLOWS FROM OPERATING ACTIVITIES      
    Net income $ 1,113     $ 1,502  
    Reconciliation of net income to net cash provided by operating activities:      
    Depreciation and amortization   1,026       1,048  
    (Gains)/losses on asset sales, asset impairments and other, net   160       (152 )
    Deferred income tax benefit   (28 )     (24 )
    Change in fair value of Preferred Distribution Rate Reset Option   —       (58 )
    Equity earnings in unconsolidated entities   (452 )     (369 )
    Distributions on earnings from unconsolidated entities   505       458  
    Gain on investments in unconsolidated entities, net   (15 )     (28 )
    Other   107       156  
    Changes in assets and liabilities, net of acquisitions   74       194  
    Net cash provided by operating activities   2,490       2,727  
           
    CASH FLOWS FROM INVESTING ACTIVITIES      
    Net cash used in investing activities (1)   (1,504 )     (702 )
           
    CASH FLOWS FROM FINANCING ACTIVITIES      
    Net cash used in financing activities (1)   (1,077 )     (1,976 )
           
    Effect of translation adjustment   (11 )     —  
           
    Net increase/(decrease) in cash and cash equivalents and restricted cash   (102 )     49  
           
    Cash and cash equivalents and restricted cash, beginning of period   450       401  
    Cash and cash equivalents and restricted cash, end of period $ 348     $ 450  
         
    (1)  PAA and certain Plains entities have issued promissory notes by and among such entities to facilitate financing. For the twelve months ended December 31, 2024, “Net cash used in investing activities” includes a cash outflow of $629 million associated with our investment in related party notes. An equal and offsetting cash inflow associated with our issuance of related party notes is included in “Net cash used in financing activities.”
         

    CAPITAL EXPENDITURES
    (in millions)

      Net to PAA (1)   Consolidated
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,    		   Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024
    		   2023
    		   2024
    		   2023
    		   2024
    		   2023
    		   2024
    		   2023
    Investment capital expenditures:                              
    Crude Oil $ 55     $ 75     $ 214     $ 245     $ 80     $ 100     $ 300     $ 334  
    NGL   41       14       115       65       41       14       115       65  
    Total Investment capital expenditures   96       89       329       310       121       114       415       399  
    Maintenance capital expenditures   68       58       242       214       73       63       261       231  
      $ 164     $ 147     $ 571     $ 524     $ 194     $ 177     $ 676     $ 630  
         
    (1)  Excludes expenditures attributable to noncontrolling interests.
         
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    NON-GAAP RECONCILIATIONS
    (in millions, except per unit and ratio data)
           
    Computation of Basic and Diluted Adjusted Net Income Per Common Unit (1):
           
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2023   2024   2023
    Basic and Diluted Adjusted Net Income per Common Unit              
    Net income attributable to PAA $ 36     $ 312     $ 772     $ 1,230  
    Selected items impacting comparability – Adjusted net income attributable to PAA (2)   321       43       546       20  
    Adjusted net income attributable to PAA $ 357     $ 355     $ 1,318     $ 1,250  
    Distributions to Series A preferred unitholders   (44 )     (44 )     (175 )     (173 )
    Distributions to Series B preferred unitholders   (19 )     (20 )     (78 )     (76 )
    Amounts allocated to participating securities   (1 )     (1 )     (11 )     (10 )
    Other   1       1       5       5  
    Adjusted net income allocated to common unitholders $ 294     $ 291     $ 1,059     $ 996  
                   
    Basic and diluted weighted average common units outstanding (3) (4)   704       701       702       699  
                   
    Basic and diluted adjusted net income per common unit $ 0.42     $ 0.42     $ 1.51     $ 1.42  
         
    (1) We calculate adjusted net income allocated to common unitholders based on the distributions pertaining to the current period’s net income. After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the common unitholders and participating securities in accordance with the contractual terms of our partnership agreement in effect for the period and as further prescribed under the two-class method.
    (2) See the “Selected Items Impacting Comparability” table for additional information.
    (3) The possible conversion of our Series A preferred units was excluded from the calculation of diluted adjusted net income per common unit for each of the three and twelve months ended December 31, 2024 and 2023 as the effect was antidilutive.
    (4) Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered potentially dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.
         

    Net Income/(Loss) Per Common Unit to Adjusted Net Income Per Common Unit Reconciliation:

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2023
    		   2024
    		   2023
    Basic and diluted net income/(loss) per common unit $ (0.04 )   $ 0.35     $ 0.73     $ 1.40  
    Selected items impacting comparability per common unit (1)   0.46       0.07       0.78       0.02  
    Basic and diluted adjusted net income per common unit $ 0.42     $ 0.42     $ 1.51     $ 1.42  
         
    (1)  See the “Selected Items Impacting Comparability” and the “Computation of Basic and Diluted Adjusted Net Income/(Loss) Per Common Unit” tables for additional information.
         
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation:
           
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2023   2024   2023
    Net Income $ 119     $ 399     $ 1,113     $ 1,502  
    Interest expense, net of certain items (1)   95       97       382       386  
    Income tax expense   45       39       167       121  
    Depreciation and amortization   258       273       1,026       1,048  
    (Gains)/losses on asset sales, asset impairments and other, net   159       (9 )     160       (152 )
    Gain on investments in unconsolidated entities, net   (15 )     —       (15 )     (28 )
    Depreciation and amortization of unconsolidated entities (2)   26       20       84       87  
    Selected items impacting comparability – Adjusted EBITDA (3)   180       56       409       203  
    Adjusted EBITDA $ 867     $ 875     $ 3,326     $ 3,167  
    Adjusted EBITDA attributable to noncontrolling interests   (138 )     (138 )     (547 )     (456 )
    Adjusted EBITDA attributable to PAA $ 729     $ 737     $ 2,779     $ 2,711  
                   
    Adjusted EBITDA $ 867     $ 875     $ 3,326     $ 3,167  
    Interest expense, net of certain non-cash items (4)   (92 )     (92 )     (365 )     (367 )
    Maintenance capital   (73 )     (63 )     (261 )     (231 )
    Investment capital of noncontrolling interests (5)   (24 )     (24 )     (86 )     (87 )
    Current income tax expense   (52 )     (41 )     (195 )     (145 )
    Distributions from unconsolidated entities in excess of/(less than) adjusted equity earnings (6)   —       (15 )     11       (37 )
    Distributions to noncontrolling interests (7)   (114 )     (97 )     (425 )     (333 )
    Implied DCF $ 512     $ 543     $ 2,005     $ 1,967  
    Preferred unit cash distributions paid (7)   (63 )     (64 )     (254 )     (241 )
    Implied DCF Available to Common Unitholders $ 449     $ 479     $ 1,751     $ 1,726  
                   
    Weighted Average Common Units Outstanding   704       701       702       699  
    Weighted Average Common Units and Common Unit Equivalents   775       772       773       770  
                   
    Implied DCF per Common Unit (8) $ 0.64     $ 0.68     $ 2.49     $ 2.47  
    Implied DCF per Common Unit and Common Unit Equivalent (9) $ 0.64     $ 0.68     $ 2.49     $ 2.46  
                   
    Cash Distribution Paid per Common Unit $ 0.3175     $ 0.2675     $ 1.2700     $ 1.0700  
    Common Unit Cash Distributions (7) $ 223     $ 188     $ 891     $ 748  
    Common Unit Distribution Coverage Ratio 2.01x   2.55x   1.97x   2.31x
                   
    Implied DCF Excess $ 226     $ 291     $ 860     $ 978  
         
    (1)  Represents “Interest expense, net” as reported on our Condensed Consolidated Statements of Operations, net of interest income associated with promissory notes by and among PAA and certain Plains entities.
    (2) Adjustment to exclude our proportionate share of depreciation and amortization expense (including write-downs related to cancelled projects and impairments) of unconsolidated entities.
    (3) See the “Selected Items Impacting Comparability” table for additional information.
    (4) Amount excludes certain non-cash items impacting interest expense such as amortization of debt issuance costs and terminated interest rate swaps.
    (5) Investment capital expenditures attributable to noncontrolling interests that reduce Implied DCF available to PAA common unitholders.
    (6)  Comprised of cash distributions received from unconsolidated entities less equity earnings in unconsolidated entities (adjusted for our proportionate share of depreciation and amortization, including write-downs related to cancelled projects and impairments, and selected items impacting comparability of unconsolidated entities).
    (7) Cash distributions paid during the period presented.
    (8) Implied DCF Available to Common Unitholders for the period divided by the weighted average common units outstanding for the period.
    (9) Implied DCF Available to Common Unitholders for the period, adjusted for Series A preferred unit cash distributions paid, divided by the weighted average common units and common unit equivalents outstanding for the period. Our Series A preferred units are convertible into common units, generally on a one-for-one basis and subject to customary anti-dilution adjustments, in whole or in part, subject to certain minimum conversion amounts.
         
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    Net Income Per Common Unit to Implied DCF Per Common Unit and Common Unit Equivalent Reconciliation:
           
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2023
    		   2024
    		   2023
    Basic net income/(loss) per common unit $ (0.04 )   $ 0.35     $ 0.73     $ 1.40  
    Reconciling items per common unit (1) (2)   0.68       0.33       1.76       1.07  
    Implied DCF per common unit $ 0.64     $ 0.68     $ 2.49     $ 2.47  
                   
    Basic net income/(loss) per common unit $ (0.04 )   $ 0.35     $ 0.73     $ 1.40  
    Reconciling items per common unit and common unit equivalent (1) (3)   0.68       0.33       1.76       1.06  
    Implied DCF per common unit and common unit equivalent $ 0.64     $ 0.68     $ 2.49     $ 2.46  
         
    (1) Represents adjustments to Net Income to calculate Implied DCF Available to Common Unitholders. See the “Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation” table for additional information.
    (2) Based on weighted average common units outstanding for the period of 704 million, 701 million, 702 million and 699 million, respectively.
    (3) Based on weighted average common units outstanding for the period, as well as weighted average Series A preferred units outstanding of 71 million for each of the periods presented.
         
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    Net Cash Provided by Operating Activities to Non-GAAP Financial Liquidity Measures Reconciliation:
           
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2023   2024   2023
    Net cash provided by operating activities $ 726     $ 1,011     $ 2,490     $ 2,727  
    Adjustments to reconcile Net cash provided by operating activities to Adjusted Free Cash Flow:              
    Net cash used in investing activities (1)   (264 )     (257 )     (1,504 )     (702 )
    Cash contributions from noncontrolling interests   17       53       57       106  
    Cash distributions paid to noncontrolling interests (2)   (114 )     (97 )     (425 )     (333 )
    Proceeds from the issuance of related party notes (1)   —       —       629       —  
    Adjusted Free Cash Flow (3) $ 365     $ 710     $ 1,247     $ 1,798  
    Cash distributions (4)   (286 )     (252 )     (1,145 )     (989 )
    Adjusted Free Cash Flow after Distributions (3)(5) $ 79     $ 458     $ 102     $ 809  
                   
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2023   2024   2023
    Adjusted Free Cash Flow (3) $ 365     $ 710     $ 1,247     $ 1,798  
    Changes in assets and liabilities, net of acquisitions (6)   (231 )     (308 )     (74 )     (194 )
    Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) (7)(8) $ 134     $ 402     $ 1,173     $ 1,604  
    Cash distributions (4)   (286 )     (252 )     (1,145 )     (989 )
    Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) (7)(8) $ (152 )   $ 150     $ 28     $ 615  
         
    (1)  PAA and certain Plains entities have issued promissory notes by and among such entities to facilitate financing. “Proceeds from the issuance of related party notes” has an equal and offsetting cash outflow associated with our investment in related party notes, which is included as a component of “Net cash used in investing activities.”
    (2)  Cash distributions paid during the period presented.
    (3)  Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. Adjusted Free Cash Flow after Distributions shortages, if any, may be funded from previously established reserves, cash on hand or from borrowings under our credit facilities or commercial paper program.
    (4)  Cash distributions paid to preferred and common unitholders during the period.
    (5)  Excess Adjusted Free Cash Flow after Distributions is retained to establish reserves for future distributions, capital expenditures, debt reduction and other partnership purposes. Adjusted Free Cash Flow after Distributions shortages may be funded from previously established reserves, cash on hand or from borrowings under our credit facilities or commercial paper program.
    (6)  See the “Condensed Consolidated Cash Flow Data” table.
    (7)   Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) and Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) to assess the underlying business liquidity and cash flow generating capacity excluding fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period.
    (8)  Fourth-quarter and full-year 2024 Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) includes the negative impact of a $225 million charge resulting from the write-off of a receivable for Line 901 insurance proceeds.
         
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    SELECTED ITEMS IMPACTING COMPARABILITY
    (in millions)
           
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2023   2024   2023
    Selected Items Impacting Comparability: (1)              
    Derivative activities and inventory valuation adjustments (2) $ (6 )   $ 43     $ (85 )   $ (101 )
    Long-term inventory costing adjustments (3)   17       (62 )     9       (35 )
    Deficiencies under minimum volume commitments, net (4)   41       (8 )     31       (12 )
    Equity-indexed compensation expense (5)   (8 )     (8 )     (36 )     (36 )
    Foreign currency revaluation (6)   1       (11 )     17       (8 )
    Line 901 incident (7)   (225 )     (10 )     (345 )     (10 )
    Transaction-related expenses (8)   —       —       —       (1 )
    Selected items impacting comparability – Adjusted EBITDA $ (180 )   $ (56 )   $ (409 )   $ (203 )
    Gain on investments in unconsolidated entities, net   15       —       15       28  
    Gains/(losses) on asset sales, asset impairments and other, net (9)   (159 )     9       (160 )     152  
    Tax effect on selected items impacting comparability   3       4       13       13  
    Aggregate selected items impacting noncontrolling interests   —       —       (5 )     (10 )
    Selected items impacting comparability – Adjusted net income attributable to PAA $ (321 )   $ (43 )   $ (546 )   $ (20 )
         
    (1)  Certain of our non-GAAP financial measures may not be impacted by each of the selected items impacting comparability. See the “Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation” and “Computation of Basic and Diluted Adjusted Net Income Per Common Unit” table for additional details on how these selected items impacting comparability affect such measures.
    (2) We use derivative instruments for risk management purposes and our related processes include specific identification of hedging instruments to an underlying hedged transaction. Although we identify an underlying transaction for each derivative instrument we enter into, there may not be an accounting hedge relationship between the instrument and the underlying transaction. In the course of evaluating our results, we identify differences in the timing of earnings from the derivative instruments and the underlying transactions and exclude the related gains and losses in determining adjusted results such that the earnings from the derivative instruments and the underlying transactions impact adjusted results in the same period. In addition, we exclude gains and losses on derivatives that are related to (i) investing activities, such as the purchase of linefill, and (ii) purchases of long-term inventory. We also exclude the impact of corresponding inventory valuation adjustments, as applicable. For applicable periods, we excluded gains and losses from the mark-to-market of the embedded derivative associated with the Preferred Distribution Rate Reset Option of our Series A preferred units.
    (3) We carry crude oil and NGL inventory that is comprised of minimum working inventory requirements in third-party assets and other working inventory that is needed for our commercial operations. We consider this inventory necessary to conduct our operations and we intend to carry this inventory for the foreseeable future. Therefore, we classify this inventory as long-term on our balance sheet and do not hedge the inventory with derivative instruments (similar to linefill in our own assets). We treat the impact of changes in the average cost of the long-term inventory (that result from fluctuations in market prices) and write-downs of such inventory that result from price declines as a selected item impacting comparability.
    (4) We, and certain of our equity method investees, have certain agreements that require counterparties to deliver, transport or throughput a minimum volume over an agreed upon period. Substantially all of such agreements were entered into with counterparties to economically support the return on capital expenditure necessary to construct the related asset. Some of these agreements include make-up rights if the minimum volume is not met. We record a receivable from the counterparty in the period that services are provided or when the transaction occurs, including amounts for deficiency obligations from counterparties associated with minimum volume commitments. If a counterparty has a make-up right associated with a deficiency, we defer the revenue attributable to the counterparty’s make-up right and subsequently recognize the revenue at the earlier of when the deficiency volume is delivered or shipped, when the make-up right expires or when it is determined that the counterparty’s ability to utilize the make-up right is remote. We include the impact of amounts billed to counterparties for their deficiency obligation, net of applicable amounts subsequently recognized into revenue or equity earnings, as a selected item impacting comparability. We believe the inclusion of the contractually committed revenues associated with that period is meaningful to investors as the related asset has been constructed, is standing ready to provide the committed service and the fixed operating costs are included in the current period results.
    (5) Our total equity-indexed compensation expense includes expense associated with awards that will be settled in units and awards that will be settled in cash. The awards that will be settled in units are included in our diluted net income per unit calculation when the applicable performance criteria have been met. We consider the compensation expense associated with these awards as a selected item impacting comparability as the dilutive impact of the outstanding awards is included in our diluted net income per unit calculation, as applicable. The portion of compensation expense associated with awards that will be settled in cash is not considered a selected item impacting comparability.
    (6) During the periods presented, there were fluctuations in the value of the Canadian dollar to the U.S. dollar, resulting in the realization of foreign exchange gains and losses on the settlement of foreign currency transactions as well as the revaluation of monetary assets and liabilities denominated in a foreign currency. The associated gains and losses are not integral to our results and were thus classified as a selected item impacting comparability.
    (7) Includes costs recognized during the period related to the Line 901 incident that occurred in May 2015. For the 2024 periods, includes the write-off of a receivable for Line 901 insurance proceeds in the fourth quarter of 2024 and the impact of settlements in the third quarter of 2024.
    (8) Includes expenses associated with the Rattler Permian Transaction.
    (9) For the 2024 periods, primarily includes non-cash charges related to the write-down of two U.S. NGL terminals. For the twelve months ended December 31, 2023 primarily includes gains related to the sale of our Keyera Fort Saskatchewan facility.
         
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    SELECTED FINANCIAL DATA BY SEGMENT
    (in millions)
             
      Three Months Ended
    December 31, 2024    		     Three Months Ended
    December 31, 2023
      Crude Oil   NGL     Crude Oil   NGL
    Revenues (1) $ 11,959     $ 535       $ 12,187     $ 623  
    Purchases and related costs (1)   (11,019 )     (300 )       (11,306 )     (364 )
    Field operating costs (2)(3)   (503 )     (75 )       (274 )     (89 )
    Segment general and administrative expenses (2) (4)   (74 )     (19 )       (68 )     (19 )
    Equity earnings in unconsolidated entities   154       —         92       —  
                     
    Other segment items: (5)                
    Depreciation and amortization of unconsolidated entities   26       —         20       —  
    Derivative activities and inventory valuation adjustments   (16 )     22         (52 )     9  
    Long-term inventory costing adjustments   (9 )     (8 )       58       4  
    Deficiencies under minimum volume commitments, net   (41 )     —         8       —  
    Equity-indexed compensation expense   8       —         8       —  
    Foreign currency revaluation   (4 )     (1 )       18       5  
    Line 901 incident   225       —         10       —  
    Segment amounts attributable to noncontrolling interests (6)   (137 )     —         (138 )     —  
    Segment Adjusted EBITDA $ 569     $ 154       $ 563     $ 169  
                     
    Maintenance capital expenditures $ 48     $ 25       $ 39     $ 24  
         
    (1) Includes intersegment amounts.
    (2) Field operating costs and Segment general and administrative expenses include equity-indexed compensation expense.
    (3) Field operating costs for the three months ended December 31, 2024 include higher expenses related to (i) $225 million resulting from the write-off of a receivable for Line 901 insurance proceeds and (ii) an increase in estimated costs for long-term environmental remediation obligations.
    (4) Segment general and administrative expenses reflect direct costs attributable to each segment and an allocation of other expenses to the segments. The proportional allocations by segment require judgment by management and are based on the business activities that exist during each period.
    (5) Represents adjustments utilized by our CODM in the evaluation of segment results. Many of these adjustments are also considered selected items impacting comparability when calculating consolidated non-GAAP financial measures such as Adjusted EBITDA. See the “Selected Items Impacting Comparability” table for additional discussion.
    (6) Reflects amounts attributable to noncontrolling interests in the Permian JV, Cactus II Pipeline LLC and Red River Pipeline LLC.
         
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    SELECTED FINANCIAL DATA BY SEGMENT
    (in millions)
             
      Twelve Months Ended
    December 31, 2024    		     Twelve Months Ended
    December 31, 2023
      Crude Oil   NGL     Crude Oil   NGL
    Revenues (1) $ 48,720     $ 1,724       $ 47,174     $ 1,935  
    Purchases and related costs (1)   (45,033 )     (898 )       (43,805 )     (1,123 )
    Field operating costs (2)(3)   (1,440 )     (328 )       (1,053 )     (372 )
    Segment general and administrative expenses (2) (4)   (298 )     (83 )       (271 )     (79 )
    Equity earnings in unconsolidated entities   452       —         369       —  
                     
    Other segment items: (5)                
    Depreciation and amortization of unconsolidated entities   84       —         87       —  
    Derivative activities and inventory valuation adjustments   5       80         17       142  
    Long-term inventory costing adjustments   1       (10 )       22       13  
    Deficiencies under minimum volume commitments, net   (31 )     —         12       —  
    Equity-indexed compensation expense   36       —         35       1  
    Foreign currency revaluation   (22 )     (5 )       19       5  
    Line 901 incident   345       —         10       —  
    Transaction-related expenses   —       —         1       —  
    Segment amounts attributable to noncontrolling interests (6)   (543 )     —         (454 )     —  
    Segment Adjusted EBITDA $ 2,276     $ 480       $ 2,163     $ 522  
                     
    Maintenance capital expenditures $ 183     $ 78       $ 145     $ 86  
         
    (1) Includes intersegment amounts.
    (2) Field operating costs and Segment general and administrative expenses include equity-indexed compensation expense.
    (3) Field operating costs for the twelve months ended December 31, 2024 include higher expenses related to (i) $225 million resulting from the write-off of a receivable for Line 901 insurance proceeds, (ii) $120 million associated with settlements related to the Line 901 incident that occurred in May 2015 and (iii) an increase in estimated costs for long-term environmental remediation obligations.
    (4) Segment general and administrative expenses reflect direct costs attributable to each segment and an allocation of other expenses to the segments. The proportional allocations by segment require judgment by management and are based on the business activities that exist during each period.
    (5) Represents adjustments utilized by our CODM in the evaluation of segment results. Many of these adjustments are also considered selected items impacting comparability when calculating consolidated non-GAAP financial measures such as Adjusted EBITDA. See the “Selected Items Impacting Comparability” table for additional discussion.
    (6) Reflects amounts attributable to noncontrolling interests in the Permian JV, Cactus II Pipeline LLC and Red River Pipeline LLC.
         
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    OPERATING DATA BY SEGMENT
           
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024
    		   2023
    		   2024
    		   2023
    Crude Oil Segment Volumes                              
    Crude oil pipeline tariff (by region) (1)                              
    Permian Basin (2)   6,846       6,710       6,731       6,356  
    South Texas / Eagle Ford (2)   421       411       403       410  
    Mid-Continent (2)   478       503       506       507  
    Gulf Coast (2)   214       250       218       260  
    Rocky Mountain (2)   461       452       474       372  
    Western   259       237       256       214  
    Canada   349       340       346       341  
    Total crude oil pipeline tariff (1) (2)   9,028       8,903       8,934       8,460  
                                   
    Commercial crude oil storage capacity (2) (3)   72       72       72       72  
                                   
    Crude oil lease gathering purchases (1)   1,661       1,518       1,586       1,452  
                                   
    NGL Segment Volumes (1)                              
    NGL fractionation   138       127       132       115  
    NGL pipeline tariff   224       188       213       180  
    Propane and butane sales   127       125       92       86  
         
    (1) Average volumes in thousands of barrels per day calculated as the total volumes (attributable to our interest for assets owned by unconsolidated entities or through undivided joint interests) for the period divided by the number of days in the period. Volumes associated with assets acquired during the period represent total volumes for the number of days we actually owned the assets divided by the number of days in the period.
    (2) Includes volumes (attributable to our interest) from assets owned by unconsolidated entities.
    (3) Average monthly capacity in millions of barrels calculated as total volumes for the period divided by the number of months in the period.
         
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    NON-GAAP SEGMENT RECONCILIATIONS
    (in millions)
           
    Supplemental Adjusted EBITDA attributable to PAA Reconciliation:      
           
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024
    		   2023
    		   2024
    		   2023
    Crude Oil Segment Adjusted EBITDA $ 569     $ 563     $ 2,276     $ 2,163  
    NGL Segment Adjusted EBITDA   154       169       480       522  
    Adjusted other income, net (1)   6       5       23       26  
    Adjusted EBITDA attributable to PAA (2) $ 729     $ 737     $ 2,779     $ 2,711  
         
    (1)  Represents “Other income, net” as reported on our Condensed Consolidated Statements of Operations, excluding interest income on promissory notes by and among PAA and certain Plains entities, as well as other income, net attributable to noncontrolling interests, adjusted for selected items impacting comparability. See the “Selected Items Impacting Comparability” table for additional information.
    (2) See the “Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation” table for reconciliation to Net Income.
         
    PLAINS GP HOLDINGS AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
    (in millions, except per share data)
             
      Three Months Ended
    December 31, 2024    		     Three Months Ended
    December 31, 2023
          Consolidating             Consolidating    
      PAA   Adjustments (1)   PAGP     PAA   Adjustments (1)   PAGP
    REVENUES $ 12,402     $ —     $ 12,402       $ 12,698     $ —     $ 12,698  
                             
    COSTS AND EXPENSES                        
    Purchases and related costs   11,227       —       11,227         11,558       —       11,558  
    Field operating costs   578       —       578         363       —       363  
    General and administrative expenses   93       1       94         87       1       88  
    Depreciation and amortization   258       —       258         273       —       273  
    (Gains)/losses on asset sales, asset impairments and other, net   159       —       159         (9 )     —       (9 )
    Total costs and expenses   12,315       1       12,316         12,272       1       12,273  
                             
    OPERATING INCOME   87       (1 )     86         426       (1 )     425  
                             
    OTHER INCOME/(EXPENSE)                        
    Equity earnings in unconsolidated entities   154       —       154         92       —       92  
    Gain on investments in unconsolidated entities, net   15       —       15         —       —       —  
    Interest expense, net   (112 )     17       (95 )       (97 )     —       (97 )
    Other income, net   20       (17 )     3         17       —       17  
                             
    INCOME BEFORE TAX   164       (1 )     163         438       (1 )     437  
    Current income tax expense   (52 )     —       (52 )       (41 )     —       (41 )
    Deferred income tax (expense)/benefit   7       (2 )     5         2       (16 )     (14 )
                             
    NET INCOME   119       (3 )     116         399       (17 )     382  
    Net income attributable to noncontrolling interests   (83 )     (44 )     (127 )       (87 )     (243 )     (330 )
    NET INCOME/(LOSS) ATTRIBUTABLE TO PAGP $ 36     $ (47 )   $ (11 )     $ 312     $ (260 )   $ 52  
                             
    Basic and diluted weighted average Class A shares outstanding     197                 196  
                             
    Basic and diluted net income/(loss) per Class A share   $ (0.05 )             $ 0.27  
         
    (1)  Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.
         
    PLAINS GP HOLDINGS AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
    (in millions, except per share data)
             
      Twelve Months Ended
    December 31, 2024    		     Twelve Months Ended
    December 31, 2023
          Consolidating             Consolidating    
      PAA   Adjustments (1)   PAGP     PAA   Adjustments (1)   PAGP
    REVENUES $ 50,073     $ —     $ 50,073       $ 48,712     $ —     $ 48,712  
                             
    COSTS AND EXPENSES                        
    Purchases and related costs   45,560       —       45,560         44,531       —       44,531  
    Field operating costs   1,768       —       1,768         1,425       —       1,425  
    General and administrative expenses   381       6       387         350       6       356  
    Depreciation and amortization   1,026       —       1,026         1,048       3       1,051  
    (Gains)/losses on asset sales, asset impairments and other, net   160       —       160         (152 )     —       (152 )
    Total costs and expenses   48,895       6       48,901         47,202       9       47,211  
                             
    OPERATING INCOME   1,178       (6 )     1,172         1,510       (9 )     1,501  
                             
    OTHER INCOME/(EXPENSE)                        
    Equity earnings in unconsolidated entities   452       —       452         369       —       369  
    Gain on investments in unconsolidated entities, net   15       —       15         28       —       28  
    Interest expense, net   (430 )     48       (382 )       (386 )     —       (386 )
    Other income, net   65       (48 )     17         102       —       102  
                             
    INCOME BEFORE TAX   1,280       (6 )     1,274         1,623       (9 )     1,614  
    Current income tax expense   (195 )     —       (195 )       (145 )     —       (145 )
    Deferred income tax (expense)/benefit   28       (37 )     (9 )       24       (68 )     (44 )
                             
    NET INCOME   1,113       (43 )     1,070         1,502       (77 )     1,425  
    Net income attributable to noncontrolling interests   (341 )     (626 )     (967 )       (272 )     (955 )     (1,227 )
    NET INCOME ATTRIBUTABLE TO PAGP $ 772     $ (669 )   $ 103       $ 1,230     $ (1,032 )   $ 198  
                             
    Basic and diluted weighted average Class A shares outstanding     197                 195  
                             
    Basic and diluted net income per Class A share   $ 0.52               $ 1.01  
         
    (1)  Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.
         
    PLAINS GP HOLDINGS AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    CONDENSED CONSOLIDATING BALANCE SHEET DATA
    (in millions)
             
      December 31, 2024     December 31, 2023
          Consolidating             Consolidating    
      PAA   Adjustments (1)   PAGP     PAA   Adjustments (1)   PAGP
    ASSETS                        
    Current assets $ 4,802     $ (26 )   $ 4,776       $ 4,913     $ 3     $ 4,916  
    Property and equipment, net   15,424       —       15,424         15,782       —       15,782  
    Investments in unconsolidated entities   2,811       —       2,811         2,820       —       2,820  
    Intangible assets, net   1,677       —       1,677         1,875       —       1,875  
    Deferred tax asset   —       1,220       1,220         —       1,239       1,239  
    Linefill   968       —       968         976       —       976  
    Long-term operating lease right-of-use assets, net   332       —       332         313       —       313  
    Long-term inventory   280       —       280         265       —       265  
    Other long-term assets, net   268       —       268         411       —       411  
    Total assets $ 26,562     $ 1,194     $ 27,756       $ 27,355     $ 1,242     $ 28,597  
                             
    LIABILITIES AND PARTNERS’ CAPITAL                        
    Current liabilities $ 4,950     $ (26 )   $ 4,924       $ 5,003     $ 2     $ 5,005  
    Senior notes, net   7,141       —       7,141         7,242       —       7,242  
    Other long-term debt, net   72       —       72         63       —       63  
    Long-term operating lease liabilities   313       —       313         274       —       274  
    Other long-term liabilities and deferred credits   990       —       990         1,041       —       1,041  
    Total liabilities   13,466       (26 )     13,440         13,623       2       13,625  
                             
    Partners’ capital excluding noncontrolling interests   9,813       (8,462 )     1,351         10,422       (8,874 )     1,548  
    Noncontrolling interests   3,283       9,682       12,965         3,310       10,114       13,424  
    Total partners’ capital   13,096       1,220       14,316         13,732       1,240       14,972  
    Total liabilities and partners’ capital $ 26,562     $ 1,194     $ 27,756       $ 27,355     $ 1,242     $ 28,597  
         
    (1)  Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.
         
    PLAINS GP HOLDINGS AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    COMPUTATION OF BASIC AND DILUTED NET INCOME/(LOSS) PER CLASS A SHARE
    (in millions, except per share data)
           
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2023
    		   2024
    		   2023
    Basic and Diluted Net Income/(Loss) per Class A Share              
    Net income/(loss) attributable to PAGP $ (11 )   $ 52     $ 103     $ 198  
    Basic and diluted weighted average Class A shares outstanding   197       196       197       195  
                   
    Basic and diluted net income/(loss) per Class A share $ (0.05 )   $ 0.27     $ 0.52     $ 1.01  
                                   

    Forward-Looking Statements

    Except for the historical information contained herein, the matters discussed in this release consist of forward-looking statements that involve certain risks and uncertainties that could cause actual results or outcomes to differ materially from results or outcomes anticipated in the forward-looking statements. These risks and uncertainties include, among other things, the following:

    • general economic, market or business conditions in the United States and elsewhere (including the potential for a recession or significant slowdown in economic activity levels, the risk of persistently high inflation and supply chain issues, the impact of global public health events, such as pandemics, on demand and growth, and the timing, pace and extent of economic recovery) that impact (i) demand for crude oil, drilling and production activities and therefore the demand for the midstream services we provide and (ii) commercial opportunities available to us;
    • declines in global crude oil demand and/or crude oil prices or other factors that correspondingly lead to a significant reduction of North American crude oil and NGL production (whether due to reduced producer cash flow to fund drilling activities or the inability of producers to access capital, or both, the unavailability of pipeline and/or storage capacity, the shutting-in of production by producers, government-mandated pro-ration orders, or other factors), which in turn could result in significant declines in the actual or expected volume of crude oil and NGL shipped, processed, purchased, stored, fractionated and/or gathered at or through the use of our assets and/or the reduction of the margins we can earn or the commercial opportunities that might otherwise be available to us;
    • fluctuations in refinery capacity and other factors affecting demand for various grades of crude oil and NGL and resulting changes in pricing conditions or transportation throughput requirements;
    • unanticipated changes in crude oil and NGL market structure, grade differentials and volatility (or lack thereof);
    • the effects of competition and capacity overbuild in areas where we operate, including downward pressure on rates, volumes and margins, contract renewal risk and the risk of loss of business to other midstream operators who are willing or under pressure to aggressively reduce transportation rates in order to capture or preserve customers;
    • the successful operation of joint ventures and joint operating arrangements we enter into from time to time, whether relating to assets operated by us or by third parties, and the successful integration and future performance of acquired assets or businesses;
    • the availability of, and our ability to consummate, acquisitions, divestitures, joint ventures or other strategic opportunities and realize benefits therefrom;
    • environmental liabilities, litigation or other events that are not covered by an indemnity, insurance or existing reserves;
    • negative societal sentiment regarding the hydrocarbon energy industry and the continued development and consumption of hydrocarbons, which could influence consumer preferences and governmental or regulatory actions that adversely impact our business;
    • the occurrence of a natural disaster, catastrophe, terrorist attack (including eco-terrorist attacks) or other event that materially impacts our operations, including cyber or other attacks on our or our service providers’ electronic and computer systems;
    • weather interference with business operations or project construction, including the impact of extreme weather events or conditions (including wildfires and drought);
    • the impact of current and future laws, rulings, legislation, governmental regulations, executive orders, trade policies, tariffs, accounting standards and statements, and related interpretations that (i) prohibit, restrict or regulate the development of oil and gas resources and the related infrastructure on lands dedicated to or served by our pipelines, (ii) negatively impact our ability to develop, operate or repair midstream assets, or (iii) otherwise negatively impact our business or increase our exposure to risk;
    • negative impacts on production levels in the Permian Basin or elsewhere due to issues associated with (or laws, rules or regulations relating to) hydraulic fracturing and related activities (including wastewater injection or disposal), including earthquakes, subsidence, expansion or other issues;
    • the pace of development of natural gas or other infrastructure and its impact on expected crude oil production growth in the Permian Basin;
    • the refusal or inability of our customers or counterparties to perform their obligations under their contracts with us (including commercial contracts, asset sale agreements and other agreements), whether justified or not and whether due to financial constraints (such as reduced creditworthiness, liquidity issues or insolvency), market constraints, legal constraints (including governmental orders or guidance), the exercise of contractual or common law rights that allegedly excuse their performance (such as force majeure or similar claims) or other factors;
    • loss of key personnel and inability to attract and retain new talent;
    • disruptions to futures markets for crude oil, NGL and other petroleum products, which may impair our ability to execute our commercial or hedging strategies;
    • the effectiveness of our risk management activities;
    • shortages or cost increases of supplies, materials or labor;
    • maintenance of our credit ratings and ability to receive open credit from our suppliers and trade counterparties;
    • our inability to perform our obligations under our contracts, whether due to non-performance by third parties, including our customers or counterparties, market constraints, third-party constraints, supply chain issues, legal constraints (including governmental orders or guidance), or other factors or events;
    • the incurrence of costs and expenses related to unexpected or unplanned capital or maintenance expenditures, third-party claims or other factors;
    • failure to implement or capitalize, or delays in implementing or capitalizing, on investment capital projects, whether due to permitting delays, permitting withdrawals or other factors;
    • tightened capital markets or other factors that increase our cost of capital or limit our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, investment capital projects, working capital requirements and the repayment or refinancing of indebtedness;
    • the amplification of other risks caused by volatile or closed financial markets, capital constraints, liquidity concerns and inflation;
    • the use or availability of third-party assets upon which our operations depend and over which we have little or no control;
    • the currency exchange rate of the Canadian dollar to the United States dollar;
    • inability to recognize current revenue attributable to deficiency payments received from customers who fail to ship or move more than minimum contracted volumes until the related credits expire or are used;
    • significant under-utilization of our assets and facilities;
    • increased costs, or lack of availability, of insurance;
    • fluctuations in the debt and equity markets, including the price of our units at the time of vesting under our long-term incentive plans;
    • risks related to the development and operation of our assets; and
    • other factors and uncertainties inherent in the transportation, storage, terminalling and marketing of crude oil, as well as in the processing, transportation, fractionation, storage and marketing of NGL as discussed in the Partnerships’ filings with the Securities and Exchange Commission.

    About Plains:

    PAA is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil and natural gas liquids (“NGL”). PAA owns an extensive network of pipeline gathering and transportation systems, in addition to terminalling, storage, processing, fractionation and other infrastructure assets serving key producing basins, transportation corridors and major market hubs and export outlets in the United States and Canada. On average, PAA handles over 8 million barrels per day of crude oil and NGL.

    PAGP is a publicly traded entity that owns an indirect, non-economic controlling general partner interest in PAA and an indirect limited partner interest in PAA, one of the largest energy infrastructure and logistics companies in North America.

    PAA and PAGP are headquartered in Houston, Texas. For more information, please visit www.plains.com.

    Contacts:

    Blake Fernandez
    Vice President, Investor Relations
    (866) 809-1291
     
    Michael Gladstein
    Director, Investor Relations
    (866) 809-1291

    The MIL Network –

  • MIL-OSI: Prairie Operating Co. Announces Public Offering of Common Stock

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Texas, Feb. 07, 2025 (GLOBE NEWSWIRE) — Prairie Operating Co. (“Prairie” or the “Company”) (Nasdaq: PROP), an independent oil and gas company focused on the acquisition and development of crude oil, natural gas and natural gas liquids, announced today that it has commenced an underwritten public offering of $200 million of shares of its common stock, par value $0.01 (“common stock”). The Company expects to grant the underwriters a 30-day option to purchase up to an aggregate value of $30 million of additional shares of the Company’s common stock.

    The Company intends to use the net proceeds from the offering to fund a portion of the purchase price for the Company’s proposed acquisition of certain oil and gas assets from Bayswater Exploration and Production and certain of its affiliates (the “Bayswater Acquisition”). The Company intends to use the remaining net proceeds from the offering, including any net proceeds from the underwriters’ exercise of their option to purchase additional shares, for other general corporate purposes, which may include advancing the Company’s development and drilling program, repayment of existing indebtedness or financing other potential acquisition opportunities.

    Citigroup is acting as lead book-running manager for the offering. KeyBanc Capital Markets Inc., MUFG Securities Americas Inc., Piper Sandler & Co., and Truist Securities, Inc. are also acting as joint book-running managers. Fifth Third Securities, Inc., Clear Street LLC, First Citizens Capital Securities, LLC, Johnson Rice & Company L.L.C., and Pickering Energy Partners are acting as co-managers.

    The offering is being made pursuant to a shelf registration statement on Form S-3, including a base prospectus, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) and became effective on December 20, 2024. The preliminary prospectus supplement, and accompanying base prospectus, relating to the offering, and a final prospectus supplement, when available, will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement, and accompanying base prospectus, relating to the offering, and the final prospectus supplement, when available, may be obtained by sending a request to: Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-800-831-9146; KeyBanc Capital Markets Inc., Attn: Equity Syndicate, 127 Public Square, 7th Floor, Cleveland, OH 44114, telephone: 1-800-859-1783; MUFG Securities Americas Inc., Attention: Equity Capital Markets, 1221 Avenue of the Americas, 6th Floor, New York, New York 10020, telephone: 212-405-7440, email: ECM@us.sc.mufg.jp; Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, Minnesota 55402, by telephone at (800) 747-3924, or by email at prospectus@psc.com; Truist Securities, Inc., Attention: Prospectus Department, 3333 Peachtree Road NE, 9th floor, Atlanta, Georgia 30326, by telephone at (800) 685-4786, or by email at TruistSecurities.prospectus@Truist.com; or by accessing the SEC’s website at www.sec.gov.

    This press release does not constitute an offer to sell or the solicitation of an offer to buy the shares of common stock or any other securities, nor shall there be any sale of such shares of common stock or any other securities, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

    About Prairie

    Houston-based Prairie Operating Co. is an independent oil and gas company focused on the acquisition and development of crude oil, natural gas and natural gas liquids. The Company’s assets and operations are concentrated in the oil and liquids-rich regions of the Denver-Julesburg (DJ) Basin, with a primary focus on the Niobrara and Codell formations. The Company is committed to the responsible development of its oil and natural gas resources and is focused on maximizing returns through consistent growth, capital discipline, and sustainable cash flow generation.

    For more information, visit www.prairieopco.com.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical fact, included in this press release, regarding our strategy, future operations, financial position, estimated reserves, revenues and income or losses, projected costs and capital expenditures, prospects, acquisition opportunities, plans and objectives of management are forward-looking statements. When used in this press release and the documents incorporated by reference herein, the words “plan,” “may,” “endeavor,” “will,” “would,” “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “forecast” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are (or were when made) based on current expectations and assumptions about future events and are (or were when made) based on currently available information as to the outcome and timing of future events. Forward-looking statements in this press release may include, for example, statements about: the Company’s ability to successfully finance and consummate the Bayswater Acquisition, including the risk that the Company may fail to complete the Bayswater Acquisition on the terms and timing currently contemplated or at all, fail to enter into the New Credit Agreement on expected terms and/or fail to realize the expected benefits of the Bayswater Acquisition; the Company’s financial performance following the Bayswater Acquisition; this public offering, the timing thereof and the use of proceeds therefrom; estimates of the Company’s oil, natural gas and NGLs reserves; drilling prospects, inventories, projects and programs; estimates of future oil and natural gas production from our oil and gas assets, including estimates of any increases or decreases in production; the availability and adequacy of cash flow to meet the Company’s requirements; financial strategy, liquidity and capital required for the Company’s development program and other capital expenditures; the availability of additional capital for the Company’s operations; changes in the Company’s business and growth strategy, including the Company’s ability to successfully operate and expand its business; the Company’s integration of acquisitions, including the Bayswater Acquisition; changes or developments in applicable laws or regulations, including with respect to taxes; and actions taken or not taken by third-parties, including the Company’s contractors and competitors. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading “Risk Factors” in the prospectus supplement, the accompanying base prospectus, the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as amended, our Quarterly Reports on Forms 10-Q filed with the Securities and Exchange Commission and our other filings with the SEC, all of which can be accessed on the SEC’s website at www.sec.gov. The Company cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. These risks include, but are not limited to: the Company’s and Bayswater’s ability to satisfy the conditions of the Bayswater Acquisition in a timely manner or at all, including the Company’s ability to successfully finance the Bayswater Acquisition; the Company’s ability to recognize the anticipated benefits of the Bayswater Acquisition, which may be affected by, among other things, competition and the Company’s ability to grow and manage growth profitably following the Bayswater Acquisition; the Company’s ability to fund its development and drilling plan; the possibility that the Company may be unable to achieve expected cash flow, production levels, drilling, operational efficiencies and other anticipated benefits within the expected time-frames, or at all, and to successfully integrate the Bayswater Assets, and/or any other assets or operations the Company has acquired or may acquire in the future with those of the Company; the Company’s integration of the Bayswater Assets with those of the Company may be more difficult, time-consuming or costly than expected; the Company’s operating costs, customer loss and business disruption may be greater than expected following the Bayswater Acquisition or the public announcements of the Bayswater Acquisition; the Company’s ability to grow its operations, and to fund such operations, on the anticipated timeline or at all; uncertainties inherent in estimating quantities of oil, natural gas and NGL reserves and projecting future rates of production and the amount and timing of development expenditures; commodity price and cost volatility and inflation; the ability to maintain necessary permits and approvals to develop our assets; safety and environmental requirements that may subject the Company to unanticipated liabilities; changes in the regulations governing our business and operations, including the businesses and operations we have acquired or may acquire in the future, such as, but not limited to, those pertaining to the environment, our drilling program and the pricing of our future production; the Company’s success in retaining or recruiting, or changes required in, the Company’s officers, key employees or directors; general economic, financial, legal, political, and business conditions and changes in domestic and foreign markets; the risks related to the growth of the Company’s business; the effects of competition on the Company’s future business; and other factors detailed under the section entitled “Risk Factors” in the Prospectus Supplement and, accompanying base prospectus related to the offering and the periodic filings with the Securities and Exchange Commission. Reserve engineering is a process of estimating underground accumulations of oil, natural gas and NGLs that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify upward or downward revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil, natural gas and NGLs that are ultimately recovered. Should one or more of the risks or uncertainties described herein or should underlying assumptions prove incorrect, the Company’s actual results and plans could differ materially from those express in any forward-looking statements. All forward-looking statements, expressed or implied, in this press release, are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on the Company’s behalf may issue.

    Investor Relations Contact:
    Wobbe Ploegsma
    info@prairieopco.com
    832.274.3449

    The MIL Network –

  • MIL-OSI Asia-Pac: India Achieves Historic Milestone of 100 GW Solar Power Capacity

    Source: Government of India (2)

    India Achieves Historic Milestone of 100 GW Solar Power Capacity

    With 100 GW solar power achieved, India is moving towards energy independence and a greener future.: Union Minister Pralhad Joshi

    Posted On: 07 FEB 2025 2:17PM by PIB Delhi

    India has achieved a historic milestone by surpassing 100 GW of installed solar power capacity, reinforcing its position as a global leader in renewable energy. This remarkable achievement is a testament to the nation’s commitment to a cleaner, greener future and marks a significant step toward realizing its ambitious target of 500 GW of non-fossil fuel-based energy capacity by 2030 set by Prime Minister Shri Narendra Modi.

    Union Minister of New and Renewable Energy, Shri Pralhad Joshi said, “Under the leadership of Prime Minister Shri Narendra Modi, India’s energy journey over the past ten years has been historic and inspiring. Initiatives like solar panels, solar parks and rooftop solar projects have brought about revolutionary changes. As a result, today India has successfully achieved the target of 100 GW of solar energy production. In the field of green energy, India is not only becoming self-reliant but is also showing the world a new path”.

    Union Minister Joshi said that this achievement is powered by the relentless commitment to clear and greener future. The Minister added that PM SuryaGhar Muft Bijli Yojana is making rooftop solar a household reality and is a game-changer in sustainable energy, empowering every home with clean power.

    Unprecedented Growth in Solar Sector

    India’s solar power sector has witnessed an extraordinary 3450 % increase in capacity over the past decade, rising from 2.82 GW in 2014 to 100 GW in 2025. As of January 31, 2025, India’s total solar capacity installed stands at 100.33 GW, with 84.10 GW under implementation and an additional 47.49 GW under tendering. The country’s hybrid and round-the-clock (RTC) renewable energy projects are also advancing rapidly, with 64.67 GW under implementation and tendered, bringing the grand total of solar and hybrid projects to 296.59 GW.

    Solar energy remains the dominant contributor to India’s renewable energy growth, accounting for 47% of the total installed renewable energy capacity. In 2024, record-breaking 24.5 GW of solar capacity was added reflecting a more than two-fold increase in solar installations compared to 2023. Last year also saw the installation of 18.5 GW of utility-scale solar capacity, a nearly 2.8 times increase compared to 2023. Rajasthan, Gujarat, Tamil Nadu, Maharashtra and Madhya Pradesh are among the top-performing states, contributing significantly to India’s total utility-scale solar installations.

    The rooftop solar sector in India witnessed remarkable growth in 2024, with 4.59 GW of new capacity installed, reflecting a 53% increase compared to 2023. A key driver of this growth has been the PM Surya Ghar: Muft Bijli Yojana, launched in 2024, which is now nearing 9 lakh rooftop solar installations, enabling households across the country to embrace clean energy solutions.

    India has also made significant strides in solar manufacturing. In 2014, the country had a limited solar module production capacity of just 2 GW. Over the past decade, this has surged to 60 GW in 2024, establishing India as a global leader in solar manufacturing. With continued policy support, India is on track to achieve a solar module production capacity of 100 GW by 2030.

    Under the guidance of Union Minister Shri Pralhad Joshi, the Ministry of New and Renewable Energy (MNRE) has been implementing key initiatives to scale up renewable energy capacity in India. This 100 GW milestone in solar energy underscores India’s role as a renewable energy powerhouse, ensuring clean, sustainable, and affordable energy access for millions while shaping a self-reliant energy future.

    *****

    Navin Sreejith

    (Release ID: 2100603) Visitor Counter : 10

    MIL OSI Asia Pacific News –

  • MIL-OSI Europe: Answer to a written question – Commission’s vision and action on e-fuels – E-002820/2024(ASW)

    Source: European Parliament

    Several initiatives that promote the use of e-fuels have already been adopted over recent years. The revised Renewable Energy Directive[1] notably sets targets for the uptake of renewable fuels of non-biological origin in transport and industry.

    The RefuelEU Aviation Regulation[2] sets targets for the increased use of sustainable aviation fuels and includes specific targets for e-fuels.

    The FuelEU Maritime Regulation[3] sets targets for the use of renewable, low-carbon fuels and clean energy technologies for ships.

    ‘Zero rating’ these fuels in the Emissions Trading System (ETS) provides them with a significant financial incentive. 20 million ETS allowances have been set aside for covering part or all of the price gap between sustainable aviation fuels and fossil fuels in the aviation sector.

    The Innovation Fund already provides support, including around EUR 1 billion for 16 sustainable fuel projects (including e-fuels and biofuels) and EUR 2 billion to 30 projects producing hydrogen as principal product. The transport industry will benefit as potential fuel user of these projects.

    The Commission plans to propose an initiative to boost renewable energy, including a 2040 renewable energy target. Getting to the 2035 climate neutrality target for cars will require a technology-neutral approach, in which e-fuels have a role to play, through a targeted amendment of the regulation on CO2 standards[4] as part of the foreseen review in 2026.

    The Commission is aware of the projected scarcity of these fuels and the need for their availability in other sectors without technical alternatives.

    To support sustainable transport fuels in the hard-to-abate sectors (aviation and maritime), the Commission will put forward a ‘Sustainable Transport Investment Plan’.

    • [1] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023L2413
    • [2] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R2405
    • [3] https://eur-lex.europa.eu/legal-content/EN/AUTO/?uri=CELEX:32023R1805
    • [4] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02019R0631-20240101
    Last updated: 7 February 2025

    MIL OSI Europe News –

  • MIL-OSI: Prairie Operating Co. Announces Acquisition of DJ Basin Assets from Bayswater Exploration and Production for Approximately $600 Million

    Source: GlobeNewswire (MIL-OSI)

    • Adds ~24,000 net acres in Weld County and ~26 mboepd of oil-weighted (69% liquids) net production
    • Adds 77.9 MMboe and ~$1.1 Billion in Proved PV-10 value(1)(2)
    • Attractive valuation, highly accretive across key cash flow metrics
    • Significantly increases 2025 production, revenue and adjusted EBITDA guidance

    HOUSTON, Feb. 07, 2025 (GLOBE NEWSWIRE) — Prairie Operating Co. (Nasdaq: PROP) (the “Company,” “Prairie,” “we,” “our” or “us”), today announced it has entered into a definitive purchase and sale agreement to acquire (the “Bayswater Acquisition”) certain assets (the “Bayswater Assets”) from Bayswater Exploration and Production and certain of its affiliated entities (collectively “Bayswater”), a premier operator in the Denver-Julesburg Basin (the “DJ Basin”).   The transaction will significantly increase the Company’s operational scale and footprint in the DJ Basin and add highly economic drilling locations.

    The purchase price of the acquisition is $602.75 million. The transaction consideration will consist of cash and up to ~5.2 million shares of Prairie common stock. Prairie anticipates funding the cash portion of the consideration, net of expected purchase price adjustments, through a combination of cash on hand and borrowings under the Company’s credit facility, pursuant to which the Company has received commitments to expand its borrowing base to $475 million as of the closing of the Bayswater Acquisition, and proceeds from one or more capital markets transactions, subject to market conditions and other factors. The Company expects to complete the Bayswater Acquisition in February 2025, subject to customary closing conditions, with an economic effective date of December 1, 2024.

    “This acquisition delivers compelling strategic and financial advantages and reflects our disciplined, but opportunistic approach to rapidly expand our footprint in the DJ Basin,” said Edward Kovalik, Chairman and CEO of Prairie Operating Co. “Not only will the addition of these high-quality assets be immediately accretive, but they will also accelerate our development plans, enhance operational efficiencies, and drive sustainable, long-term value creation for our shareholders.”

    Gary Hanna, President of the Company, added, “This acquisition represents a transformative milestone for Prairie Operating Co. by significantly expanding our footprint and production of oil rich assets in the DJ Basin. Upon closing, we will be well-positioned to deliver significant organic production growth in 2025 and beyond.”

    Key Prairie Highlights, Pro Forma for the Transaction:

    • Transformational Increase in Oil-Weighted Production: ~27,500 net BOEPD (69% liquids)
    • Expanded Footprint / Inventory Life: ~54,000 net acres, including ~600 highly economic drilling locations, providing ~10 years of drilling inventory
    • Significantly Increases Free Cash Flow: Expected to be immediately accretive to per-share cash flow metrics
    • Maintains Strong Balance Sheet: Expected leverage ratio of ~1.0x at closing with upsized committed credit facility and ample liquidity
    • Meaningful Infrastructure Synergies: Leverages existing infrastructure to drive operational efficiencies and reduce development costs
    • Attractive Valuation Metrics(1): PV-20 of Proved Developed Producing (“PDP”) reserves and $23,500 per net flowing BOE

    2025 Updated Guidance

    Upon the closing of this acquisition, the combined Company’s 2025 pro forma outlook includes:

    • Average Daily Production: 29,000 – 31,000 BOEPD
    • Capital Expenditures (Capex): $300 million – $320 million
    • Adjusted EBITDA(3): Expected to range between $350 million and $370 million

    *Based on an active hedging program and an average working interest (“WI”) of 75% or greater.

    Estimated Reserve Data

    A summary of the estimated reserves and values of our properties (as adjusted to give effect to the Bayswater Acquisition), as of November 30, 2024, and as determined by Cawley, Gillespie & Associates, the Company’s independent Petroleum Reserve Evaluation Firm, using SEC pricing as of November 30, 2024 is set forth below.

      Our Pro Forma Net Reserves  
    Reserve Category Oil
    (MBbl)    		 NGL
    (MBbl)    		 Gas
    (MMcf)    		 Total
    (MBoe)    		 Liquids
    (%)    		 PV-10
    ($MM)(4)
    Proved Developed Producing (PDP) 23,581 14,810 113,611 57,326 67 % $860
    Proved Developed Not Producing (PDNP) 173 26 216 235 85 % $5
    Proved Undeveloped (PUD) 25,547 8,970 72,088 46,531 74 % $495
    Total Proved 49,301 23,806 185,914 104,093 70 % $1,360

    (3) Adjusted EBITDA is a non-GAAP financial measure. Please see “Non-GAAP Financial Measures” below.

    (4) PV-10 is a non-GAAP financial measure. Please see “Non-GAAP Financial Measures” below.

    Webcast Access

    Date: Friday, February 7, 2025
    Time: 10:00am Eastern Time (9:00am Central Time)
    Participant Listening: 877-407-9219 / +1 201-689-8852

    The webcast may be accessed from the “Press & Media” page of Prairie’s website at: https://www.prairieopco.com/media

    To participate via telephone, please register in advance here: https://event.choruscall.com/mediaframe/webcast.html?webcastid=DUzJKsjj

    Participants can use Guest dial-in numbers above and be answered by an operator OR click the Call meTM link for instant telephone access to the event: https://hd.choruscall.com/InComm/?callme=true&passcode=13751732&h=true&info=company&r=true&B=6

    The Call me™ link will be made active 15 minutes prior to scheduled start time. Upon registration, all telephone participants will be joined to the conference call in listen only. A replay of the webcast will be archived on the Company’s website for two (2) weeks following the call.

    Advisors

    Citi is serving as exclusive financial advisor and Norton Rose Fulbright US LLP is serving as legal advisor to Prairie. Citibank N.A. is also leading the committed financing under the Company’s anticipated expanded credit facility, with Latham & Watkins LLP as legal advisor to Citibank N.A.

    About Prairie Operating Co.

    Prairie Operating Co. is a Houston-based publicly traded independent energy company engaged in the development and acquisition of oil and natural gas resources in the United States. The Company’s assets and operations are concentrated in the oil and liquids-rich regions of the Denver-Julesburg (DJ) Basin, with a primary focus on the Niobrara and Codell formations. The Company is committed to the responsible development of its oil and natural gas resources and is focused on maximizing returns through consistent growth, capital discipline, and sustainable cash flow generation. More information about the Company can be found at www.prairieopco.com.

    Reconciliation of Non-GAAP Measures

    Adjusted EBITDA

    This press release also contains Adjusted EBITDA, which is a financial measure not presented in accordance with U.S. GAAP. Adjusted EBITDA is used by management to evaluate the performance of our business, make operational decisions, and assess our ability to generate cashflows.  Management believes Adjusted EBITDA provides investors with helpful information to better understand the underlying performance trends of our business, facilitate period-to-period comparisons, and assess the company’s operating results.

    Adjusted EBITDA is derived from Net income and is adjusted for income tax expense, depreciation, depletion, and amortization (DD&A), accretion of asset retirement obligations, non-cash stock-based compensation, and loss on unrealized commodity derivatives. We adjust net income for the items listed above to arrive at Adjusted EBITDA because these amounts can vary substantially between periods and companies within our industry depending upon accounting methods, book values of assets, capital structures, and the method by which assets were acquired. Additionally, the presentation of Adjusted EBITDA does not imply that our operating results will not be affected by unusual or non-recurring items. 

    Adjusted EBITDA has limitations as an analytical tool, including that it excludes certain items that affect our reported financial results. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, GAAP Net income or as an indicator of our operating performance or liquidity. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies.

    The following table reconciles Adjusted EBITDA to Net Income, which is the most directly comparable financial measure prepared in accordance with GAAP.

    Reconciliation of Adjusted EBITDA to Net Income (in Millions)

    PV-10

    This press release contains PV-10, which is a financial measure not presented in accordance with U.S. GAAP. PV-10 is derived from the Standardized Measure of Discounted Future Net Cash Flows (“Standardized Measure”), which is the most directly comparable GAAP financial measure for proved reserves. PV-10 is a computation of the Standardized Measure on a pre-tax basis. PV-10 is equal to the Standardized Measure at the applicable date, before deducting future income taxes discounted at 10%. Neither PV-10 nor standardized measure represents an estimate of the fair market value of the applicable crude oil, natural gas and NGLs properties. We believe that the presentation of PV-10 is relevant and useful to our investors as supplemental disclosure to the Standardized Measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our reserves before considering future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV-10 is based on prices and discount factors that are consistent for all companies.

    The following table reconciles PV-10 to the standard measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure:

    Reconciliation of PV-10 to the Standard Measure of Discounted Future Net Cash Flows

    Forward-Looking Statements

    The information included herein and in any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included herein, are forward-looking statements, including statements about our ability to complete and successfully finance the Bayswater Acquisition, our financial performance following the Bayswater Acquisition, estimates of oil, natural gas and NGLs reserves, estimates of future oil, natural gas and NGLs production, and the Company’s updated guidance set forth in this press release. When used herein, including any oral statements made in connection herewith, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on the Company’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date hereof. The Company cautions you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company, including our ability to satisfy the conditions to closing the Bayswater Acquisition in a timely manner or at all, our ability to successfully finance the Bayswater Acquisition, our ability to recognize the anticipated benefits of the Bayswater Acquisition, the possibility that we may be unable to achieve expected free cash flow accretion, production levels, drilling, operational efficiencies and other anticipated benefits of the Bayswater Assets within the expected time-frames or at all, and our ability to successfully integrate the Bayswater Assets . There may be additional risks not currently known by the Company or that the Company currently believes are immaterial that could cause actual results to differ from those contained in the forward-looking statements. Additional information concerning these and other factors that may impact the Company’s expectations can be found in the Company’s periodic filings with the Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 10-K/A filed with the SEC on March 20, 2024, and any subsequently filed Quarterly Report on Form 10-Q and Current Report on Form 8-K. The Company’s SEC filings are available publicly on the SEC’s website at www.sec.gov.

    Investor Relations Contact:
    Wobbe Ploegsma
    info@prairieopco.com
    832.274.3449

    Tables accompanying this announcement is available at:
    https://www.globenewswire.com/NewsRoom/AttachmentNg/2887d588-6948-4d53-b85e-af27741c6839
    https://www.globenewswire.com/NewsRoom/AttachmentNg/6a82a869-eea3-4d69-b087-417457b9dc27

    The MIL Network –

  • MIL-OSI United Kingdom: New energy payment scheme opens for young adults and carers in Portsmouth

    Source: City of Portsmouth

    Portsmouth City Council has launched its Energy Payment Scheme, offering one-off payments of £150 for residents in the following groups:

    • Single residents (with or without children) aged 16-24 who are receiving Universal Credit, including the Housing Costs Element, with an earned income of £900 or less a month
    • Couples (with or without children) both aged 16-24, receiving Universal Credit including the Housing Costs Element, with an earned income of £1,300 or less a month
    • Carers aged 16 and above who are on low income and who receive a qualifying benefit (details on the website)

    Applications are now open and must be submitted by 12 noon on Monday 17 March 2025. Find out more and apply online.

    The scheme is the being offered through the Household Support Fund (HSF), which is funded by the UK Government.

    Portsmouth City Council is also currently running these support schemes for low-income residents:

    • Child voucher scheme (closes 28 February) – Find out more and apply
    • Portsmouth Older Persons Energy Payment (funded by the city council, closes 7 March) – find out more and apply
    • The final round of the Exceptional hardship scheme opens 20 February.

    Cllr Steve Pitt, Leader of Portsmouth City Council said:

    “This new Energy Payment scheme is one of a number of schemes open to help Portsmouth residents who are struggling with the cost of living.

    “I really encourage people to apply for help before the deadlines, and to contact our cost of living hub for advice and support.”

    Visit the Council’s Household Support Fund website for more details of all of the schemes: www.portsmouth.gov.uk/HSF

    Even if you don’t qualify for a payment, the council’s cost of living hub remains open to help with advice and support. You can speak to someone by calling 023 9284 1047 (open weekdays 9am-5pm (closes 4.30pm Fridays) or visit the website: www.portsmouth.gov.uk/cost-of-living-hub

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Warmer Homes London launches to help vulnerable Londoners heat their homes and save money

    Source: Mayor of London

    • Warmer Homes London (WHL) will see the Mayor of London and London Councils work in partnership with London boroughs and housing associations to unlock millions of pounds from a national pot of £1.79bn to spend on energy saving measures for the most vulnerable residents in the capital.  
    • WHL will make London’s homes greener and turbocharge the installation of insulation, solar panels and heat pumps across the capital.
    • The Mayor of London and London Councils are funding Warmer Homes London together, with the Mayor investing £10m to establish a new hub to ensure that the programme is delivered at pace. London boroughs are also investing £400,000 in start-up costs.  
    • London boroughs and housing associations have committed to match national funding, to make tens of thousands of homes across London more energy efficient and save Londoners money on their bills.   
    • The new ‘one-London approach’ will for the first time offer councils a certain, long-term funding stream to retrofit homes in their boroughs.

    Today the Mayor of London, Sadiq Khan, and London Councils launched a new programme to transform the approach to making the capital’s homes warmer and more energy efficient and reducing Londoners’ energy bills. Warmer Homes London (WHL) will forge bolder ways to upgrade London’s homes as part of the retrofit revolution.    

    WHL is being rolled out in partnership with London boroughs and housing associations to make homes across London warmer, cheaper to run and more energy efficient.    

    The Mayor will invest almost £10 million over four years through WHL, which will for the first time provide a central hub for green housing funding and information. Until now, boroughs have had to apply for funding individually, led by the Government’s funding rounds. This created costs and long-term uncertainty. WHL will create a ‘one-London approach’, forming a close link with Government and providing reliable, long-term funds to boroughs, meaning they will have the certainty they need to progress retrofit works in their area. The new ‘hub’ will enable a more co-ordinated approach with Government, increasing bargaining power with Ministers and enabling homes to be improved at a larger scale and faster pace. 

    The initiative will help thousands of Londoners save money on their energy bills by funding energy efficient measures such as better insulation, replacing of fossil fuel heating and the introduction of heat pumps. Social landlords (organisations such as local authorities and housing associations who provide affordable housing for rent without a profit), low income owner occupiers and low income private tenants can access the opportunity to take part in the initiative. This will ensure that Londoners who are most vulnerable to fuel poverty will be able to benefit from the funding, whether they rent or own their home.  

    WHL will help secure funding from the Government’s Warm Homes Social Fund and Warm Homes Local Grant funding streams, which is a total national amount of £1.79bn during 2025–2028. WHL will focus on installing energy saving measures in low income private housing. 

    London’s homes are responsible for one third of the capital’s carbon emissions and many are not energy efficient, meaning they cost more to warm up in the winter and lose heat quickly. They can also be uncomfortably hot during summer heatwaves. High living costs and rising fuel prices have meant that even more Londoners now face fuel poverty, with many people having to choose between heating their home or spending money on food. In social rented homes with poor energy efficiency, 56 per cent of households are living in fuel poverty*. Making these homes more energy efficient is a key part of London’s efforts to tackle the climate emergency.   

    The Mayor of London, Sadiq Khan, said:  “Londoners have been struggling for years with sky-high energy bills. Warmer Homes London will help Londoners save money on their bills by making their homes more energy efficient and cheaper to heat.

    “By working in close collaboration with local councils and housing associations, Warmer Homes London will enable us to upgrade more homes, and do it more quickly avoiding unnecessarily long wait times for home improvement works.

    “Making our homes more energy efficient is a priority for me, but also the new government. Through this new initiative we will be able to unlock more national funding from the Government for homes in London. Together, we can build a better, safer and greener London for everyone.”

     Cllr Claire Holland, Chair of London Councils said:  

    “With 379,000 households in London living in fuel poverty, taking action to make homes in our city warmer and more energy efficient is vital for our residents’ health, wellbeing and finances.

    “Warmer Homes London will bring together London boroughs, the Mayor of London, housing associations and government to drive this work forward. It aims to unlock millions of pounds  of investment to deliver improvements to tens of thousands of  homes across London, making them more energy efficient, reducing their environmental impact and saving Londoners money on their bills.

    “Warmer Homes London is a perfect example of how tackling the climate emergency and improving the lives of our residents go hand-in-hand, with joint working across all levels of government vital to achieving this.”

    Minister for Energy Consumers Miatta Fahnbulleh said:

    “Everyone deserves to live in a warm, comfortable home.

    “Warmer Homes London marks an important step towards making thousands of homes cheaper to run for Londoners with clean energy, while cutting fuel poverty across the capital.

    “It will also support delivery of our Warm Homes Plan, which is set to benefit up to 300,000 homes with energy saving upgrades this financial year.” 

    MIL OSI United Kingdom –

  • MIL-OSI: GPTBots.ai Redefines On-Premise AI Excellence with DeepSeek Integration

    Source: GlobeNewswire (MIL-OSI)

    HONG KONG, Feb. 07, 2025 (GLOBE NEWSWIRE) — GPTBots.ai, a leading enterprise AI agent platform, is proud to unveil its enhanced on-premise deployment solutions powered by the integration of the highly acclaimed DeepSeek LLM. This integration empowers enterprises to harness the advanced capabilities of DeepSeek while leveraging GPTBots’ robust, enterprise-grade platform, delivering a secure, flexible, and scalable AI solution tailored to diverse business needs.

    As businesses worldwide accelerate their adoption of AI, GPTBots.ai provides a comprehensive platform that combines cutting-edge technology with industry-specific solutions, enabling enterprises to achieve measurable results while maintaining full control over their data and infrastructure.

    Cost-Effective AI Deployment for Businesses of All Sizes

    DeepSeek’s lightweight architecture, including its MoE (Mixture of Experts) design, significantly reduces the hardware and operational costs associated with AI deployment:

    • Optimized Resource Utilization: DeepSeek can operate seamlessly on consumer-grade GPUs (e.g., RTX 4090), eliminating the need for expensive high-end clusters.
    • Energy Efficiency: Enhanced inference optimization reduces energy consumption, making it ideal for businesses prioritizing cost control and sustainability.

    When deployed through GPTBots, enterprises benefit from streamlined workflows, pre-configured tools, and optimized resource allocation, ensuring a lower total cost of ownership while maintaining high performance.

    Transforming On-Premise AI for Industry-Specific Applications

    The integration of DeepSeek into GPTBots’ platform delivers significant value across industries, enabling businesses to address unique challenges and unlock new opportunities:

    • Retail, E-Commerce, and Gaming: GPTBots revolutionizes customer support by automating inquiries, providing 24/7 multilingual assistance, and enhancing user experiences. A global gaming platform using GPTBots reduced response times by 95% and automated 98% of inquiries, freeing resources for creative tasks.
    • Finance: GPTBots streamlines customer service, compliance workflows, and risk analysis, reducing operational costs while improving customer satisfaction and regulatory adherence.
    • Energy: GPTBots supports real-time monitoring and data analysis, helping energy companies optimize resource allocation and equipment management. Businesses can leverage GPTBots for equipment failure prediction, energy consumption analysis, and renewable energy management, thereby improving operational efficiency and reducing costs.
    • Government and Enterprises: GPTBots provides intelligent administrative management and public service support for government and enterprise sectors, enhancing service efficiency and decision-making quality. For example, GPTBots can be used for automated government service consultations, policy interpretation, and the intelligent upgrade of public service platforms, driving digital transformation for government and enterprise organizations.

    Flexible Deployment for Data Control and Security

    GPTBots’ on-premise deployment ensures enterprises maintain full control over their data, aligning with the highest standards of security and operational independence:

    • Data Ownership: All data is stored within the enterprise’s infrastructure, ensuring complete autonomy and privacy.
    • Advanced Security Protocols: GPTBots provides enterprise-grade SLA guarantees, role-based access control, and encryption, safeguarding sensitive information and critical operations.

    This approach is particularly valuable for industries such as finance, healthcare, and legal services, where data privacy and compliance are paramount.

    Empowering Enterprises to Embrace AI with Confidence

    GPTBots’ integration of DeepSeek is more than just a technological advancement—it’s a commitment to empowering businesses to thrive in the AI-driven era. By combining DeepSeek’s advanced capabilities with GPTBots’ enterprise-grade platform, businesses gain access to:

    • Customizable Solutions: Tailor AI deployments to specific business needs with GPTBots’ no-code/low-code platform and robust APIs.
    • Comprehensive Tool Ecosystem: From LinkedIn and HubSpot integrations to advanced image generation tools, GPTBots provides everything enterprises need to automate workflows and enhance productivity.
    • End-to-End Support: From deployment to ongoing optimization, GPTBots offers professional services to ensure long-term success.

    “GPTBots is committed to empowering businesses with the tools they need to innovate and grow,” said Jerry Yin, VP of GPTBots.ai. “By integrating DeepSeek into our on-premise deployment solutions, we’re providing a powerful, secure, and flexible AI platform that drives measurable results across industries.”

    About GPTBots.ai

    GPTBots.ai is an enterprise AI agent platform that empowers businesses to streamline operations, enhance customer experiences, and drive growth. Offering end-to-end AI solutions across customer service, knowledge search, data analysis, and lead generation, GPTBots enables enterprises to harness the full potential of AI with ease. With seamless integration into various systems, and support for scalable, secure deployments, GPTBots is dedicated to reducing costs, accelerating growth, and helping businesses thrive in the AI era.

    For more information, visit www.gptbots.ai.

    Media Contact:
    Silvia
    Senior Marketing Manager
    marketing@gptbots.ai

    The MIL Network –

  • MIL-OSI: Aurora Mobile’s GPTBots.ai Integrates DeepSeek into On-Premise Al Solutions

    Source: GlobeNewswire (MIL-OSI)

    SHENZHEN, China, Feb. 07, 2025 (GLOBE NEWSWIRE) — Aurora Mobile Limited (NASDAQ: JG) (“Aurora Mobile” or the “Company”), a leading provider of customer engagement and marketing technology services in China, today announced that its leading enterprise AI agent platform, GPTBots.ai, has unveiled its enhanced on-premise deployment solutions powered by the integration of the highly acclaimed DeepSeek LLM. This integration empowers enterprises to harness the advanced capabilities of DeepSeek while leveraging GPTBots’ robust, enterprise-grade platform, delivering a secure, flexible, and scalable AI solution tailored to diverse business needs.

    As businesses worldwide accelerate their adoption of AI, GPTBots.ai provides a comprehensive platform that combines cutting-edge technology with industry-specific solutions, enabling enterprises to achieve measurable results while maintaining full control over their data and infrastructure.

    Cost-Effective AI Deployment for Businesses of All Sizes

    DeepSeek’s lightweight architecture, including its MoE (Mixture of Experts) design, significantly reduces the hardware and operational costs associated with AI deployment:

    • Optimized Resource Utilization: DeepSeek can operate seamlessly on consumer-grade GPUs (e.g., RTX 4090), eliminating the need for expensive high-end clusters.
    • Energy Efficiency: Enhanced inference optimization reduces energy consumption, making it ideal for businesses prioritizing cost control and sustainability.

    When deployed through GPTBots, enterprises benefit from streamlined workflows, pre-configured tools, and optimized resource allocation, ensuring a lower total cost of ownership while maintaining high performance.

    Transforming On-Premise AI for Industry-Specific Applications

    The integration of DeepSeek into GPTBots’ platform delivers significant value across industries, enabling businesses to address unique challenges and unlock new opportunities:

    • Retail, E-Commerce, and Gaming: GPTBots revolutionizes customer support by automating inquiries, providing 24/7 multilingual assistance, and enhancing user experiences. A global gaming platform using GPTBots reduced response times by 95% and automated 98% of inquiries, freeing resources for creative tasks.
    • Finance: GPTBots streamlines customer service, compliance workflows, and risk analysis, reducing operational costs while improving customer satisfaction and regulatory adherence.
    • Energy: GPTBots supports real-time monitoring and data analysis, helping energy companies optimize resource allocation and equipment management. Businesses can leverage GPTBots for equipment failure prediction, energy consumption analysis, and renewable energy management, thereby improving operational efficiency and reducing costs.
    • Government and Enterprises: GPTBots provides intelligent administrative management and public service support for government and enterprise sectors, enhancing service efficiency and decision-making quality. For example, GPTBots can be used for automated government service consultations, policy interpretation, and the intelligent upgrade of public service platforms, driving digital transformation for government and enterprise organizations.

    Flexible Deployment for Data Control and Security

    GPTBots’ on-premise deployment ensures enterprises maintain full control over their data, aligning with the highest standards of security and operational independence:

    • Data Ownership: All data is stored within the enterprise’s infrastructure, ensuring complete autonomy and privacy.
    • Advanced Security Protocols: GPTBots provides enterprise-grade SLA guarantees, role-based access control, and encryption, safeguarding sensitive information and critical operations.

    This approach is particularly valuable for industries such as finance, healthcare, and legal services, where data privacy and compliance are paramount.

    Empowering Enterprises to Embrace AI with Confidence

    GPTBots’ integration of DeepSeek is more than just a technological advancement—it’s a commitment to empowering businesses to thrive in the AI-driven era. By combining DeepSeek’s advanced capabilities with GPTBots’ enterprise-grade platform, businesses gain access to:

    • Customizable Solutions: Tailor AI deployments to specific business needs with GPTBots’ no-code/low-code platform and robust APIs.
    • Comprehensive Tool Ecosystem: From LinkedIn and HubSpot integrations to advanced image generation tools, GPTBots provides everything enterprises need to automate workflows and enhance productivity.
    • End-to-End Support: From deployment to ongoing optimization, GPTBots offers professional services to ensure long-term success.

    “GPTBots is committed to empowering businesses with the tools they need to innovate and grow,” said Jerry Yin, VP of GPTBots.ai. “By integrating DeepSeek into our on-premise deployment solutions, we’re providing a powerful, secure, and flexible AI platform that drives measurable results across industries.”

    About GPTBots.ai

    GPTBots.ai is a complementary general-purpose LLM AI bot featuring private data input and continuous fine-tuning, which can replace ‘rule-based’ chatbots, improve user experience, and reduce costs. GPTBots.ai aims to provide users with an end-to-end business platform that can seamlessly integrate robots into existing applications and workflows via plug-ins. GPTBots.ai also allow users to have great access to, and more efficiently and effectively using, AIGC to improve overall corporate productivity and output quality.

    To know more, please visit https://www.gptbots.ai.

    About Aurora Mobile Limited

    Founded in 2011, Aurora Mobile (NASDAQ: JG) is a leading provider of customer engagement and marketing technology services in China. Since its inception, Aurora Mobile has focused on providing stable and efficient messaging services to enterprises and has grown to be a leading mobile messaging service provider with its first-mover advantage. With the increasing demand for customer reach and marketing growth, Aurora Mobile has developed forward-looking solutions such as Cloud Messaging and Cloud Marketing to help enterprises achieve omnichannel customer reach and interaction, as well as artificial intelligence and big data-driven marketing technology solutions to help enterprises’ digital transformation.

    For more information, please visit https://ir.jiguang.cn/.

    Safe Harbor Statement

    This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as Aurora Mobile’s strategic and operational plans, contain forward-looking statements. Aurora Mobile may also make written or oral forward-looking statements in its reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Aurora Mobile’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Aurora Mobile’s strategies; Aurora Mobile’s future business development, financial condition and results of operations; Aurora Mobile’s ability to attract and retain customers; its ability to develop and effectively market data solutions, and penetrate the existing market for developer services; its ability to transition to the new advertising-driven SAAS business model; its ability to maintain or enhance its brand; the competition with current or future competitors; its ability to continue to gain access to mobile data in the future; the laws and regulations relating to data privacy and protection; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and Aurora Mobile undertakes no duty to update such information, except as required under applicable law.

    For more information, please contact:

    Aurora Mobile Limited

    E-mail: ir@jiguang.cn

    Christensen

    In China

    Ms. Xiaoyan Su

    Phone: +86-10-5900-1548

    E-mail: Xiaoyan.Su@christensencomms.com

    In U.S.

    Ms. Linda Bergkamp

    Phone: +1-480-614-3004

    Email: linda.bergkamp@christensencomms.com

    The MIL Network –

  • MIL-OSI Russia: The work plan of SPbPU and KRSU for 2025 has been formed

    Translartion. Region: Russians Fedetion –

    Source: Peter the Great St Petersburg Polytechnic University – Peter the Great St Petersburg Polytechnic University –

    During the working visit of the acting rector of the Kyrgyz-Russian Slavic University Sergey Volkov to Peter the Great St. Petersburg Polytechnic University, a meeting of key leaders was held to finalize the main positions of the plan of joint activities of KRSU and SPbPU for 2025.

    Opening the meeting, Vice-Rector for International Affairs Dmitry Arsenyev noted: 2025 began with a series of online meetings of specialized working groups of our two universities, where the main blocks of the plan for joint activities were worked out, parameters were defined in detail, and key indicators were calculated. Today’s meeting of supervising vice-rectors and directors of institutes is the final step towards approving this most important document.

    One of the main blocks of joint activities is “Development of educational potential”. The working group led by Vice-Rector for Educational Activities Lyudmila Pankova discussed in advance with colleagues from KRSU issues related to the opening of network master’s degree programs in the areas of construction, software engineering, logistics and technosphere safety. KRSU will act as the base organization and plans to begin recruitment for these programs in the fall of 2025. In the second year of study, KRSU students will come to the Polytechnic University and, if they successfully master all disciplines, will receive master’s degrees from both universities. Sergey Volkov confirmed that the most talented graduates of such joint programs will be invited to teach at KRSU.

    The most important component of educational activities is the organization of a distance learning system for KRSU students using the resources of the Polytechnic University. The joint work plan provides access to most SPbPU courses on the Moodle platform, as well as access for more than 50 students to the online laboratory campus. KRSU is working to open an Online Course Registration Center in Bishkek as early as 2025, and SPbPU is ready to provide expert support for the activities of such a center, train employees, conduct the necessary trainings and consultations.

    Based on the successful experience of cooperation with the Russian-Armenian University, SPbPU agreed with KRSU to introduce the course “Fundamentals of Project Activities” into the educational process. In 2025, mentors will be trained and methodological recommendations for the course will be developed.

    The successful practice of academic mobility of third-year undergraduate students of KRSU, who came to the Polytechnic for a semester last year, will continue. The directors of the Institute of Economics and Technology, Institute of Social Sciences, Institute of Economics, Institute of Science and Culture, and Institute of Physical and Mathematical Sciences (FSMEK) — the main institutes where students from Kyrgyzstan studied in 2024 — confirmed their interest in continuing such programs, but emphasized the importance of strict selection of students by field. Sergey Volkov confirmed that KRSU students are showing great interest in the Polytechnic and promised that 40 undergraduates and 10 graduates for study in the fall of 2025 will be carefully selected through a competition. In addition to semester mobility, the plan provides for short-term mobility and advanced training programs for KRSU students and teachers. Director of the Institute of Scientific Research Marina Petrochenko suggested that individual programs be timed to coincide with significant scientific and educational events of the Polytechnic institutes, for example, Science Week or student competitions, so that Kyrgyz students could participate in them.

    Advanced training for KRSU teachers will be held in a hybrid and in-person format. There is a request from Kyrgyz colleagues for programs in energy, electronics, supercomputer technologies, economic security, etc. In the near future, a specific list of programs will be formed and 15 teachers will be identified who will come to SPbPU for in-person training. A separate request from the KRSU leadership is to organize training for members of the admissions committee on technologies for conducting an admissions campaign, working with the “Apply Online” services and other recruitment practices adopted at the Polytechnic University.

    Vice-Rector for Research at SPbPU Yuri Fomin, presenting the final plan for the “Development of Scientific Potential” block, focused the attention of KRSU management on the need to build end-to-end business processes – from the selection and training of talented young scientists in graduate school to the formation of dissertation councils and successful defenses. Polytechnic is ready to share such experience. And in the near future, there are plans to organize dissertation defenses in SPbPU dissertation councils in key areas for KRSU applicants and postgraduate students.

    The specialized research groups of the institutes of KRSU and SPbPU have prepared a list of 12 initiative projects for joint research. Yuri Fomin suggested correlating these projects with the planned internships of postgraduate students, the organization of defenses, the preparation of publications, and the submission of applications for grants in order to ensure the most effective activities of joint research groups and support the long-term development of scientific potential.

    Two global joint projects of KRSU and SPbPU are planned as flagship projects in the work plan. The first is related to the work of the high-mountain observatory of atmospheric physics of KRSU. The observatory is equipped with high-tech instruments, in particular a lidar complex. The project will be of a more fundamental nature and will be related to studies of the state of the atmosphere, environmental monitoring, the formation of predictive models of seismic activity, etc. Over the years of the laboratory’s work, a significant array of data has been collected that can be used to verify and build models. On the part of SPbPU, the Institute of Electronics and Telecommunications and the Civil Engineering Institute will be involved in the project. Director of the Institute of Electronics and Telecommunications Alexander Korotkov noted the enormous potential of such an interdisciplinary project, which is capable of combining scientific competencies, the use of unique equipment, the developments of both the Polytechnic University and KRSU to develop a popular scientific direction and solve problems that are truly important for Kyrgyzstan.

    The second project is the preparation of a comprehensive plan for the development of mining in the interests of the industrial partner of KRSU, the company “Alliance Altyn”. In early March, a large off-site meeting will be held directly at the production site. Director of the Institute of Energy Viktor Barskov confirmed his interest in the project and his readiness to send specialists from the Institute to Bishkek.

    KRSU attracts not only industrial partners, but also government organizations to cooperation. In particular, the Ministry of Emergency Situations of the Kyrgyz Republic requested the organization of a Fire Safety Center on the basis of KRSU for the training and advanced training of relevant specialists. Director of the ISI Marina Petrochenko mentioned a similar experience of cooperation between Polytechnic University and the Gefest Group of Companies and the Ministry of Emergency Situations of Russia, which ultimately led to the creation of a basic department. The work plan for 2025 includes a clause on the organization of a Fire Safety Center at KRSU and joint work in this direction by the ISI SPbPU and the FADIS KRSU.

    Vice-Rector for Information Technologies of SPbPU Andrey Lyamin confirmed the possibility of using the resources of the SPbPU supercomputer for joint scientific work and the educational process. In the near future, a joint scientific group will be formed, and KRSU scientists will be able to gain access, including for the implementation of the above-mentioned flagship projects. Andrey Lyamin also raised the issue of organizing KRSU access to the most important university toolkit – the Antiplagiat program, which is needed for scientific and educational activities. In accordance with the work plan, SPbPU will provide the Kyrgyz university with access to the resource.

    In terms of joint work, significant attention is paid to the interaction of library systems, in particular the development of joint IT solutions, regulations and methods that will contribute to the maximum digitalization of librarianship, the formation of an operating repository and the promotion of the results of the intellectual work of KRSU students and scientists.

    The directors of SPbPU institutes supported the KRSU initiative to create a student design bureau, on the basis of which student teams, including joint ones, will design various solutions in the field of construction, energy, calculations and modeling. Such projects will be able to participate in university, regional and international competitions. The KRSU student design bureau will also serve as a basis for the implementation of applied projects of the course “Fundamentals of Project Activity”.

    And so that really interesting projects and developments do not go to waste, the director of the Center for Continuing Professional Education of the Digital Engineering School Sergey Salkutsan in January 2025 during a visit to KRSU agreed on all the details of the pilot project for the development of student entrepreneurship and the launch of the project “Graduate Qualification Work as a Startup”. But it is not only the students who are in the focus of attention – for the management teams of KRSU (and this is more than 400 people), trainings on lean manufacturing, developed at SPbPU, are planned.

    In 2025, the Polytechnic University will continue to support social projects, youth initiatives and communities. A joint student campaign will be held as part of the events for the 80th anniversary of the Victory in May 2025. Students and teachers will be able to take part in the events “Voice of Generations” and “Student Spring”. Vice-Rector for Youth Policy and Communication Technologies Maxim Pasholikov said that following mutual consultations between specialists from SPbPU and KRSU, a detailed plan for joint activities of student communities has been drawn up. The work will be carried out in constant communication, with monthly online meetings in each area.

    Also, key joint events will be the project-analytical session planned for May 2025 on the development of the KRSU development program for 2026-2030, and expert sessions on monitoring the implementation of the current development program and modernization and transformation processes. Acting Vice-Rector for Prospective Projects Maria Vrublevskaya, commenting on the preparation for this session, drew the attention of the KRSU management to the recommendations for assessing competencies and the staffing of the university, as well as conducting comprehensive work within the framework of the human capital management policy, which were formulated following the results strategic session in December 2024 years.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI: Falcon Oil & Gas Ltd. – Completion of Shenandoah SS-2H ST1 stimulation

    Source: GlobeNewswire (MIL-OSI)

    Falcon Oil & Gas Ltd.

    Completion of Shenandoah SS-2H ST1 stimulation

    07 February 2025 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce the completion the Shenandoah S2-2H ST1 (“SS-2H ST1”) stimulation in the Beetaloo Sub-basin, Northern Territory, Australia with Falcon Oil & Gas Australia Limited’s joint venture partner, Tamboran (B2) Pty Limited.

    Key Highlights

    • Successfully completed 35 stages across the 1,671-metre (5,483-feet) horizontal section of the Amungee Member B-shale with the Liberty Energy (NYSE: LBRT) modern stimulation equipment.
    • Stimulation activities achieved five stages over a 24-hour period on multiple days.
    • The average proppant intensity was 2,706 pounds per foot (lb/ft) and achieved wellhead injection rates above 100 barrels per minute.
    • The average stage spacing is 48-metres (~157-feet).
    • The SS-2H ST1 well will be completed ahead of clean out activities and the commencement of initial flow back and extended production testing.
    • Further updates on the completion of the Shenandoah South 4H (SS-4H) well will be provided in due course.

    Philip O’Quigley, CEO of Falcon commented:

    “We are extremely encouraged about the potential of the current stimulation program based on strong gas shows and other data observed whilst drilling. In addition, the experienced US operator, Liberty Energy, have shown the efficiencies they can achieve which will provide us with the greatest opportunity for the best possible outcomes from this stimulation program. We look forward to updating the market on the IP30 flow test results as soon as they become available.”
                                                    Ends.

    CONTACT DETAILS:

    Falcon Oil & Gas Ltd.          +353 1 676 8702
    Philip O’Quigley, CEO +353 87 814 7042
    Anne Flynn, CFO +353 1 676 9162
     
    Cavendish Capital Markets Limited (NOMAD & Broker)
    Neil McDonald / Adam Rae +44 131 220 9771

    This announcement has been reviewed by Dr. Gábor Bada, Falcon Oil & Gas Ltd’s Technical Advisor. Dr. Bada obtained his geology degree at the Eötvös L. University in Budapest, Hungary and his PhD at the Vrije Universiteit Amsterdam, the Netherlands. He is a member of AAPG.

    About Falcon Oil & Gas Ltd.

    Falcon Oil & Gas Ltd is an international oil & gas company engaged in the exploration and development of unconventional oil and gas assets, with the current portfolio focused in Australia. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland.

    Falcon Oil & Gas Australia Limited is a c. 98% subsidiary of Falcon Oil & Gas Ltd.

    For further information on Falcon Oil & Gas Ltd. Please visit www.falconoilandgas.com

    About Beetaloo Joint Venture (EP 76, 98 and 117)

    Company Interest
    Falcon Oil & Gas Australia Limited (Falcon Australia) 22.5%
    Tamboran (B2) Pty Limited 77.5%
    Total 100.0%

    Shenandoah South Pilot Project -2 Drilling Space Units – 46,080 acres1

    Company Interest
    Falcon Oil & Gas Australia Limited (Falcon Australia) 5.0%
    Tamboran (B2) Pty Limited 95.0%
    Total 100.0%

    1Subject to the completion of the SS2H ST1 and SS4H wells on the Shenandoah South pad 2.

    About Tamboran (B2) Pty Limited
    Tamboran (B1) Pty Limited (“Tamboran B1”) is the 100% holder of Tamboran (B2) Pty Limited, with Tamboran B1 being a 50:50 joint venture between Tamboran Resources Corporation and Daly Waters Energy, LP.

    Tamboran Resources Corporation, is a natural gas company listed on the NYSE (TBN) and ASX (TBN). Tamboran is focused on playing a constructive role in the global energy transition towards a lower carbon future, by developing the significant low CO2 gas resource within the Beetaloo Basin through cutting-edge drilling and completion design technology as well as management’s experience in successfully commercialising unconventional shale in North America.

    Bryan Sheffield of Daly Waters Energy, LP is a highly successful investor and has made significant returns in the US unconventional energy sector in the past. He was Founder of Parsley Energy Inc. (“PE”), an independent unconventional oil and gas producer in the Permian Basin, Texas and previously served as its Chairman and CEO. PE was acquired for over US$7 billion by Pioneer Natural Resources Company.

    Advisory regarding forward-looking statements
    Certain information in this press release may constitute forward-looking information. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking information. Forward-looking information typically contains statements with words such as “may”, “will”, “should”, “expect”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “projects”, “dependent”, “consider” “potential”, “scheduled”, “forecast”, “outlook”, “budget”, “hope”, “suggest”, “support” “planned”, “approximately”, “potential” or the negative of those terms or similar words suggesting future outcomes. In particular, forward-looking information in this press release includes, details on the completion of the stimulation of SS-2H ST1; Liberty Energy conducting the stimulation campaign; and commencement of initial flow back and extended production testing and updates on SS-4H.

    This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. The risks, assumptions and other factors that could influence actual results include risks associated with fluctuations in market prices for shale gas; risks related to the exploration, development and production of shale gas reserves; general economic, market and business conditions; substantial capital requirements; uncertainties inherent in estimating quantities of reserves and resources; extent of, and cost of compliance with, government laws and regulations and the effect of changes in such laws and regulations; the need to obtain regulatory approvals before development commences; environmental risks and hazards and the cost of compliance with environmental regulations; aboriginal claims; inherent risks and hazards with operations such as mechanical or pipe failure, cratering and other dangerous conditions; potential cost overruns, drilling wells is speculative, often involving significant costs that may be more than estimated and may not result in any discoveries; variations in foreign exchange rates; competition for capital, equipment, new leases, pipeline capacity and skilled personnel; the failure of the holder of licenses, leases and permits to meet requirements of such; changes in royalty regimes; failure to accurately estimate abandonment and reclamation costs; inaccurate estimates and assumptions by management and their joint venture partners; effectiveness of internal controls; the potential lack of available drilling equipment; failure to obtain or keep key personnel; title deficiencies; geo-political risks; and risk of litigation.

    Readers are cautioned that the foregoing list of important factors is not exhaustive and that these factors and risks are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Falcon assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to Falcon. Additional information identifying risks and uncertainties is contained in Falcon’s filings with the Canadian securities regulators, which filings are available at www.sedarplus.com, including under “Risk Factors” in the Annual Information Form.

    Any references in this news release to initial production rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for Falcon. Such rates are based on field estimates and may be based on limited data available at this time.

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

    The MIL Network –

  • MIL-OSI Russia: The rector of the State University of Management took part in the visiting meeting of the State Council commission on the direction of “Personnel”

    Translartion. Region: Russians Fedetion –

    Source: State University of Management – Official website of the State –

    On February 6, Vladimir Stroyev, Rector of the State University of Management, took part in an off-site meeting of the State Council of the Russian Federation Commission on Personnel, dedicated to Russian Science Day.

    The commission members gathered in the city of Obninsk to discuss the human resources potential of Russian science.

    In the first half of the day, the guests visited nuclear enterprises and got acquainted with the scientific potential of Obninsk. At the A.I. Leypunsky Physics and Power Engineering Institute, the commission was shown the new Educational Center, which is adjacent to the complex of fast physical stands. The center is equipped with a special experimental laboratory, which is built according to the strictest safety standards, and here future specialists can conduct research, including with sealed radiation sources.

    A panel discussion on the issue of “On the human resources potential of Russian science” was held in the building of the Rosatom Technical Academy in the science city.

    The meeting was chaired by the Chairman of the State Council Commission on Personnel, a graduate of the State University of Management Vladislav Shapsha. The moderator was the Deputy Head of the Region and Deputy Chairman of the Commission, a graduate of the State University of Management Tatyana Leonova.

    Greetings to Kaluga scientists were heard from the Chairman of the State Duma Committee on Science and Higher Education Sergei Kabyshev and the Governor of the Vladimir Region Alexander Avdeev.

    The event was attended by the First Deputy Chairman of the State Duma Committee on Science and Higher Education Alexander Mazhuga, State Duma Deputy Gennady Sklyar, President of the Russian Academy of Education Olga Vasilyeva, General Director of the National Medical Research Center of Radiology of the Ministry of Health of Russia Andrey Kaprin and others.

    The State University of Management was represented at the meeting by the rector of the State University of Management Vladimir Stroyev and the vice-rector Maria Karelina.

    “Today we work in the city of Obninsk and visited several enterprises of the city, where new personnel are trained and work. And the experience of the city can be taken as a model: how to work with personnel, how to train them, what to provide and interest them in order to keep them in the region. These are conditions, including infrastructure, this is salary, and this is, of course, interest in the profession and the opportunity for advancement and development in it,” Vladimir Vitalyevich noted.

    At the opening of the plenary discussion, Vladislav Shapsha spoke about the achievements of scientific and production centers that glorify both Obninsk and the entire region throughout Russia.

    “Over the years of development, the Kaluga Region has rightfully earned a reputation as one of the leading scientific and technological centers of Russia. Last year, the Government of the Russian Federation extended the status of “science city” for Obninsk until 2040, and special thanks to our government for this. Our region has extensive experience, significant potential for scientific work in various fields, in nuclear medicine, biotechnology, radioecology, and other industries,” emphasized Vladislav Shapsha.

    At the end of the meeting, Vladislav Shapsha presented awards to scientists who contributed to the acquisition and systematization of knowledge and the possibility of applying it in practice.

    After the meeting, the commission members took part in the opening of the Sintec Group laboratory at the Obninsk Institute of Atomic Energy, a branch of the National Research Nuclear University MEPhI.

    Subscribe to the TG channel “Our GUU” Date of publication: 02/07/2025

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI China: Production begins in mega metamorphic rock oilfield

    Source: China State Council Information Office

    The first phase of Bozhong 26-6 oilfield, by far the largest metamorphic rock oilfield in the world, commenced production on Friday, according to its developer, the China National Offshore Oil Corporation (CNOOC) Tianjin branch.

    The development project of the Bozhong 26-6 oilfield is divided into two phases. Phase one encompasses a central processing platform and an unmanned wellhead platform. The goal of this phase is to bring 33 development wells into production, with an expected peak daily output exceeding 3,500 cubic meters of oil and gas equivalent.

    The reservoir of the Bozhong 26-6 oilfield is buried in metamorphic rocks beneath the seabed at a depth of over 4,500 meters, and its formation temperature can reach 178 degrees Celsius, making its exploitation extremely challenging, according to the CNOOC Tianjin Branch.

    In response, the research team has developed and improved the drilling equipment and created a technical system tailored for deep-sea drilling, noted Tang Baisong, a project manager at CNOOC Tianjin Branch.

    The Bozhong 26-6 oilfield is located in the Bohai Sea, about 170 km from north China’s Tianjin Municipality, with an average water depth of about 20 meters. Discovered in 2022, its cumulative proven oil and gas reserves has exceeded 200 million cubic meters.

    MIL OSI China News –

  • MIL-OSI USA: Murphy, Blumenthal, Colleagues Reintroduce Legislation to Eliminate Trump’s Outsourcing Tax Breaks

    US Senate News:

    Source: United States Senator for Connecticut – Chris Murphy

    February 06, 2025

    WASHINGTON—U.S. Senators Chris Murphy (D-Conn.), a member of the U.S. Senate Health, Education, Labor, and Pensions Committee, and Richard Blumenthal (D-Conn.) on Thursday joined U.S. Senator Sheldon Whitehouse (D-R.I.) and 15 of their Senate colleagues in reintroducing the No Tax Breaks for Outsourcing Act, legislation that would reverse the Trump tax law’s breaks for offshoring jobs and profits. The announcement comes as President Trump’s 25 percent tariffs on Canada and Mexico remain under negotiation, while Republicans push to expand those offshoring incentives in their reconciliation bill.

    The No Tax Breaks for Outsourcing Act would level the playing field for American companies by requiring multinational corporations to pay the same tax rate on profits earned abroad as they do in the United States. The Trump tax law created a special tax rate for offshore profits that is half the domestic rate. Since the law’s passage, studies have found that multinationals have increased foreign, rather than domestic investment. Extending the Trump tax law would mean maintaining this half-off rate, which is otherwise scheduled to slightly increase.

    If passed, the senators’ legislation would boost U.S. economic competitiveness by encouraging domestic investment, leveling the playing field for domestic companies, and bringing the U.S. into compliance with the global minimum tax agreement. The Joint Committee on Taxation found that large U.S. multinationals paid an average tax rate of just 7.8 percent the year after the Trump law passed, lower than their foreign competitors. They would still pay less than their competitors with a higher rate on foreign profits. Moreover, with over 140 countries moving to implement the global tax agreement, U.S. and foreign multinationals alike will be subject to the new minimum tax whether the U.S. complies or not. Failure to join, however, will mean the revenue fills foreign coffers instead of the U.S. Treasury.  

    U.S. Senators Richard Durbin (D-Ill.), Jack Reed (D-R.I.), Tammy Baldwin (D-Wis.), Elizabeth Warren (D-Mass.), Jeff Merkley (D-Ore.), Ed Markey (D-Mass.), Brian Schatz (D-Hawaii), John Fetterman (D-Pa.), Chris Van Hollen (D-Md.), Ruben Gallego (D-Ariz.), Mazie Hirono (D-Hawaii), Martin Heinrich (D-N.M.), Cory Booker (D-N.J.), Tina Smith (D-Minn.), and Tammy Duckworth (D-Ill.) also cosponsored the legislation.

    The No Tax Breaks for Outsourcing Act would repeal offshoring incentives by:

    • Equalizing the tax rate on profits earned abroad to the tax rate on profits earned here at home.  The bill would end the preferential tax rate for offshore profits by eliminating the deductions for “global intangible low-tax income (GILTI)” and “foreign-derived intangible income” and applying GILTI on a per-country basis.  
    • Repealing the 10 percent tax exemption on profits earned from certain investments made overseas.  In addition to the half-off tax rate on profits earned abroad, the Trump tax law exempts from tax a 10 percent return on tangible investments made overseas, like plants and equipment.  The legislation would eliminate the zero-tax rate on certain investments made overseas. 
    • Treating “foreign” corporations that are managed and controlled in the U.S. as domestic corporations.  Ugland House in the Cayman Islands is the five-story legal home of over 18,000 companies – many of them actually American companies in disguise.  The bill would treat corporations worth $50 million or more and managed and controlled within the U.S. as the American entities they in fact are, and subject them to the same tax as other U.S. taxpayers.
    • Cracking down on inversions by tightening the definition of expatriated entity.  This provision would discourage corporations from renouncing their U.S. citizenship.  It would deem certain mergers between a U.S. company and a smaller foreign firm to be a U.S. taxpayer, no matter where in the world the new company claims to be headquartered. Specifically, the combined company would continue to be treated as a domestic corporation if the historic shareholders of the U.S. company own more than 50 percent of the new entity. 
    • Combating earnings stripping by restricting the deduction for interest expense for multinational enterprises with excess domestic indebtedness.  Some multinational groups reduce or eliminate their U.S. tax bills by concentrating their worldwide debt, and the resulting interest deductions, in U.S. subsidiaries.  The bill would disallow interest deduction for U.S. subsidiaries of a multinational corporation where a disproportionate share of the worldwide group’s debt is located in the U.S. entity, a tactic commonly known as “earnings stripping.”  
    • Eliminating tax break for foreign oil and gas extraction income.  Oil and gas extraction income earned abroad gets an even further break on the already half-off rate other industries pay on offshore profits.  

    Full text of the bill is available HERE.

    ###

    MIL OSI USA News –

  • MIL-OSI Economics: Aiming for a Clean, Decarbonized Society with Panasonic HX: Shigeki Yasuda

    Source: Panasonic

    Headline: Aiming for a Clean, Decarbonized Society with Panasonic HX: Shigeki Yasuda

    Trailblazer in Building the Foundation of the Hydrogen Business
    Shigeki Yasuda
    Global Environmental Business Development CenterPanasonic Corporation
    Shigeki Yasuda joined the company in 2003, specializing in fuel cell technology development. In 2010, he was assigned to Germany, where he contributed to introducing fuel cells to the European market. In 2024, he assumed his current position, working on implementing a demonstration facility to power factories with renewable energy and building the business foundation for Panasonic HX.

    Pioneering the First Overseas Integration of Three Types of Energy Sources
    Since May 2024, I have been working in the UK on implementing a demonstration facility that powers factories with renewable energy and building the business foundation for Panasonic HX*¹. My mission is to advance the first overseas integration of pure hydrogen fuel cell generators, photovoltaic generators, and storage batteries. This involves (1) introducing a demonstration facility to Panasonic Manufacturing UK Ltd., (2) building the business foundation for future social implementation, and (3) developing new markets for fuel cells overseas.＊1: The name Panasonic HX represents Panasonic’s energy solutions utilizing hydrogen. We propose a new option for the full-scale use of hydrogen (H), which has a low environmental impact, and are determined to contribute to the transformation (X) to a decarbonized society through collaboration (X) with partner companies, administrations, and business customers.

    This is a CG image symbolizing the Panasonic HX. It is not a facility that actually exists.

    In December 2024, Panasonic introduced its first overseas demonstration facility in the UK, leveraging 25 years of expertise in fuel cell technology to supply factories with electricity and thermal energy using hydrogen. This facility serves as a showcase for co-creation with partner companies, governments, and business customers to pursue a decarbonized society while laying the foundation for Panasonic’s hydrogen business. Utilizing hydrogen as a clean energy source is crucial in addressing global environmental challenges through decarbonization. This demonstration, which enables factories to be powered by renewable energy, marks a significant step toward broader social implementation.
    We are also working to apply the data and know-how gained from the demonstration in the UK to future projects. The main challenges we faced in this initiative were: (1) a lack of knowledge about construction processes in the UK, requiring us to navigate everything from scratch and quickly resolve various unforeseen issues, (2) difficulties in discussing with the design firm regarding safety design, highlighting the need to raise awareness of hydrogen safety, and (3) the complexity of collaborating with local partners, as failing to align expectations at the contract stage made it difficult to proceed as planned.

    In overcoming these challenges, the most invaluable support came from the persistence of our colleagues, especially the assistance from Japan. With only three core members leading the launch, we sometimes found ourselves stuck in rigid thinking and faced moments of isolation. However, the strong support from Japan reassured us, allowing us to stay positive even when obstacles arose. Everyone was united in the determination to see it through, and even the faintest glimmer of hope helped us find a path forward.

    Leading the Way Until Success is Achieved

    Staying at the forefront is important when it comes to enhancing competitiveness. Doing so lets us quickly gather customer feedback and gain an advantage through our products and services. In this process, it is essential to embrace the Customer Focus principle of always thinking from a customer’s perspective, as advocated by PLP*2.Having spent my career in technology, my work often remained within that sphere. However, stepping outside and engaging directly with customers made me realize how vastly different cultures can be. From my experience in the UK, I am convinced that the key to enhancing competitiveness lies in rapidly iterating the PDCA cycle to integrate customer feedback into business development. Recently, I have also come to appreciate the importance of a two-way approach—effectively communicating the value of hydrogen while actively listening to our customers.＊2: Panasonic Leadership Principles are a set of behavioral guidelines for each and every employee to follow in their efforts to put the Basic Business Philosophy into practice.
    Our top priority is to enhance the competitiveness of the three-battery integration, make it a unique, industry-leading solution and develop it into a robust product and service. We are dedicated to advancing Panasonic’s strengths and will first introduce it to the environmentally advanced European market before expanding it globally in the future.

    I have been involved in fuel cell development since joining Panasonic. I take great pride in playing a role in the practical application of hydrogen, a clean energy source, in society. My dream is to help build a foundation where hydrogen is a natural part of everyday life, ensuring that future generations can live comfortably in a sustainable environment.
    This demonstration is merely the starting point. With a strong sense of responsibility as a frontrunner, I will continue moving forward alongside our customers until we fully realize the value we aim to deliver.

    MIL OSI Economics –

  • MIL-OSI Economics: Japan: Staff Concluding Statement of the 2025 Article IV Mission

    Source: International Monetary Fund

    February 7, 2025

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    Washington, DC – February 7, 2025[1]:

    After three decades of near-zero inflation, there are signs that Japan’s economy can sustainably converge to a new equilibrium. Inflation has surpassed the Bank of Japan’s 2-percent target for over two years and a tight labor market is delivering the strongest wage growth since the 1990s. But Japan continues to face challenges from its aging population and high public debt. Policy priorities are to re-anchor inflation expectations, rebuild fiscal buffers, and advance labor market reforms to support potential growth.

    RECENT DEVELOPMENTS, OUTLOOK, AND RISKS

    The economy contracted in the first half of 2024 due to temporary supply disruptions but gained momentum in the rest of the year. Domestic demand, private consumption in particular, has strengthened, while net external demand has been sluggish. Both headline and core inflation (excluding fresh food and energy) remain above the BoJ’s 2-percent headline inflation target. Goods inflation has been boosted by energy and food prices, while services price growth is relatively weaker and below 2 percent. Inflation expectations are becoming increasingly aligned with the inflation target, though some measures remain below that target. The yen-dollar exchange rate has experienced sizable swings, largely driven by shifts in interest rate differentials (which reflect broader macroeconomic developments), but also amplified by the build-up and subsequent unwinding of yen carry-trade positions. The pass-through to inflation is estimated to have been relatively mild so far. Wages are growing at their highest rate since the 1990s amid labor shortages and strong inflation, but they have remained lackluster in real terms.

    Growth is expected to accelerate in 2025, with private consumption strengthening further, as above-inflation wage growth will boost households’ disposable income. Private investment is also expected to remain strong, supported by high corporate profits and accommodative financial conditions. The output gap is estimated to be closed, and growth is expected to converge to its potential of 0.5 percent in the medium term. Headline and core inflation are expected to converge to the BoJ’s 2-percent headline inflation target in late 2025, helped by a moderation in commodity prices for oil and food. The current account surplus is expected to moderate in 2025 as the income balance narrows, with the trade balance remaining in deficit. The external position is assessed as broadly in line with the level implied by medium-term fundamentals and desirable policies.

    Risks to growth are tilted to the downside. On the external side, these include a slowdown in the global economy, deepening geoeconomic fragmentation and increasing trade restrictions, and more volatile food and energy prices. On the domestic side, the main downside risk is weak consumption if real wages do not pick up. Another domestic risk to the outlook is a possible decline in confidence in fiscal sustainability that leads to a tightening of financial conditions in the context of high public debt and gross financing needs. If downside risks materialize, it could result in Japan reverting to an effective-lower-bound constrained environment given the still-low level of the policy rate. 

    Risks to inflation are broadly balanced. On the downside, inflation expectations may stall below the headline inflation target following Japan’s prolonged experience with low inflation. Upside risks stem from rising food and energy prices, and from stronger-than-expected wages in the upcoming spring wage negotiations. Higher barriers to trade and cost pressures in major trading partners could spill over to Japan but the impact on domestic prices would be ambiguous given lower economic activity.

    ECONOMIC POLICIES

    Fiscal Policy

    The estimated fiscal deficit in 2024 is smaller than expected at the time of the 2024 Article IV. Tax revenues have been boosted by high corporate profits, and expenditures to support the economic recovery (such as transfers to households and SMEs) have been partly phased out. The fiscal deficit is projected to increase slightly in 2025, with additional spending planned for defense, children-related measures, and industrial policies (IP). There is a significant risk that the deficit will widen further, given the political demands on the minority government. This should be avoided as fiscal space remains limited: any expansionary measure should be offset by higher revenues or expenditure savings elsewhere in the budget.

    Public debt, as a share of GDP, is expected to decline in the near term, as nominal GDP growth is projected to exceed the effective interest rate on public debt. Public debt will remain high, however, and is estimated to start rising by 2030, driven by a higher interest bill and expenditure pressures related to spending on health and long-term care for an aging population. A clear consolidation plan is needed even in the near term to fully offset these pressures, ensure debt sustainability, and increase fiscal space needed to respond to shocks (including from natural disasters). This will require elaborating concrete and credible expenditure and revenue measures in the context of a robust medium-term fiscal framework:

    • The composition of public spending should be more growth-friendly, including by eliminating poorly targeted subsidies, notably energy subsidies, while preserving expenditure on high-quality public investment. Enhancing the targeting and efficiency of social security spending is critical to containing rising costs while preserving quality.
    • On the revenue side, options include strengthening financial income taxation for high-income earners, lowering exemptions and broadening the taxable valuation base under the property tax, streamlining income tax deductions, and unifying and eventually increasing the consumption tax rate. The PIT reform to the income deduction limit that is currently under consideration would need to be financed by additional revenues or savings elsewhere in the budget.
    • The repeated use, and incomplete execution of supplementary budgets undermines efficient resource allocation, budget transparency, and fiscal discipline. The use of supplementary budgets should be limited to responding to large, unexpected shocks that overwhelm automatic stabilizers, which would also avoid providing unwarranted stimulus in normal times. All medium-term spending commitments—including on IP and green transformation—should be incorporated into the regular budget process.

    As interest rates rise, the cost of servicing the large public debt is expected to double by 2030, putting a premium on a robust debt management strategy. In the face of rising gross financing needs and a shrinking BoJ balance sheet, government bond issuance will need to rely on additional demand from foreign investors and domestic institutions.

    Monetary and Exchange Rate Policies

    The current accommodative monetary policy stance is appropriate and will ensure inflation expectations rise sustainably to the 2-percent inflation target. Accommodation should continue to be withdrawn gradually if the baseline forecast bears out, under which we expect the policy rate would reach a neutral level by end-2027. High domestic and external uncertainty underscore the need for the BoJ to maintain its data-dependent and flexible approach and clear communications to anchor market expectations.

    The BOJ’s ongoing reduction in the size of its balance sheet has been clearly communicated, is appropriately modest in pace, and is proceeding smoothly. The BoJ should stand ready to modify the pace of its purchases should disorderly bond market conditions arise or if financial conditions become inconsistent with the desired monetary policy stance.

    Japan’s large stock of outstanding government debt and sizable net international investment position provide an important transmission channel for monetary policy to spill over into asset prices abroad. Clear communication and gradualism can limit adverse asset price reactions and outward spillovers.

    The authorities’ continued commitment to a flexible exchange rate regime is welcome. Exchange rate flexibility should continue to help absorb external shocks and support monetary policy’s focus on price stability. At the same time, it will also help maintain an external position in line with fundamentals.

    Financial Stability

    Japan’s financial system remains broadly resilient, supported by strong capital and liquidity buffers. Banks’ revenues have generally increased as credit costs remain low, the rise in interest rates has been gradual, and the yen has depreciated. Major banks continue to manage interest rate risks proactively through portfolio rebalancing and diversifying their funding sources. Financial intermediation remains stable supported by continued demand for loans from both corporate and household sectors. The insurance sector is well-capitalized and profitable, despite challenges from market volatility and demographic shifts.

    While the financial system remains generally resilient, systemic risk has risen slightly since the 2024 Article IV consultation, reflecting a combination of rising macroeconomic uncertainty, risk of faster than expected interest rates increases or unrealized losses, and rising bankruptcies among SMEs. Rising global macroeconomic uncertainty could impact Japanese banks’ investments. While gradually rising interest rates have helped bank profitability, faster-than-expected increases in interest rates or sudden changes in global financial conditions could amplify financial market volatility and interact with three persisting vulnerabilities identified in the 2024 FSAP: large securities held under mark-to-market accounting, significant foreign currency exposures—particularly through US dollar funding instruments—and signs of overheating in some areas of real estate. A faster-than-expected tightening of financial conditions could also disrupt the JGB market, amplifying interest rate risks for banks with larger exposures. Less-capitalized domestic banks are more vulnerable to rate hikes, facing heightened risks from unrealized losses and higher funding costs. Corporate defaults among smaller SMEs have been increasing, albeit from a low base, and could pose risks for regional banks with high SME loan exposure. 

    Strengthening systemic risk monitoring and the macroprudential policy framework is needed to better mitigate risks in the financial system. Ongoing efforts to expand data collection, enhance analytical capacity, and improve coordination between the FSA and BOJ are welcome. To further enhance systemic risk analysis, closing remaining data gaps and advancing analytical tools for a more comprehensive assessment of systemic vulnerabilities, including those related to foreign currency exposure, remain key priorities. Assigning a formal mandate to the Council for Cooperation on Financial Stability would reinforce the institutional framework, while expanding the macroprudential policy toolkit with targeted borrower-based measures would help mitigate vulnerabilities in the real estate sector.

    Further strengthening financial sector oversight is essential to bolster stability and resilience against emerging risks and vulnerabilities. While progress has been made in expanding staffing resources in certain areas, additional allocations are needed to reinforce financial supervision. The authorities should continue to enhance risk-based supervision to respond flexibly to an evolving banking system. Strengthening the Early Warning System with more forward-looking indicators, especially for credit and liquidity risks, and establishing minimum liquidity requirements for domestic banks would enhance stability. Supervisors should also have the authority to adjust bank capital ratios above minimum requirements based on individual risk profiles and financial conditions.

    The authorities should remain prepared to address market strains as they arise. The liquidity and functioning of the JGB market have improved since April but experienced temporary deterioration in early August amid a spike in market volatility. Rising foreign market volatility could impact domestic liquidity conditions, potentially triggering spillover effects. To mitigate these risks the central bank should closely monitor liquidity conditions and funding rates in money markets, while paying particular attention to the uneven distribution of liquidity among banks as well as the growth in repo transactions driven by demand from financial dealers and foreign investors. The scope of institutions eligible to receive emergency liquidity assistance could be expanded to nonbank financial institutions, prioritizing central counterparties. Recovery and Resolution Planning should be gradually expanded to all banks that could be systemic at failure, requiring more banks to maintain a minimum amount of loss-absorbing capacity tailored to their resolvability needs.

    Structural Policies

    Japan’s total factor productivity growth has been slowing for a decade and has fallen further behind the United States. A steady decline in allocative efficiency since the early 2000s has been a drag on productivity, and likely reflects an increase in market frictions. In addition, Japan’s ultra-low interest rates may have allowed low-productivity firms to survive longer than they otherwise would have, delaying necessary economic restructuring. Reforms aimed at improving labor mobility across firms would help improve Japan’s allocative efficiency and boost productivity.

    Japan’s labor market is expected to witness a significant transformation driven by population aging and advances in artificial intelligence (AI). Japan is aging rapidly—a trend that is expected to continue over coming decades—and has been at the forefront in labor-saving automation to alleviate labor shortages. Policies can play a crucial role in mitigating the impact of aging on labor supply and facilitating mobility needed to benefit from AI adoption:

    • Thanks to government efforts, Japan’s seniors already have a relatively high labor force participation rate compared to other OECD countries. But policy frictions such as an income threshold that triggers a loss of pension benefits may be inducing seniors to work fewer hours than they otherwise would.
    • Japan has made significant progress in increasing female labor force participation during the last decade. Further supporting women’s ability to fully participate in the labor force will require continuing to expand childcare resources and facilitate fathers’ contribution to home/childcare, and further encouraging the use of flexible working arrangements.
    • Training programs are crucial to enhance the complementarity of AI with the labor force and improve the productivity of senior workers.
    • Improving mobility and reducing barriers to job switching are essential to address labor shortages due to aging and the potential job displacement impact of AI. Subsidized training programs that are targeted to in-demand occupations could help reskill and upskill the labor force and facilitate occupational mobility.

    While AI may help to address some of Japan’s labor shortages, and since upskilling/reskilling the labor force takes time, attracting foreign workers could help alleviate labor shortages. Government programs have led to a tripling of the number of foreign workers in Japan during the past decade. However, foreigners continue to play a much smaller role in the Japanese labor force than they do in other OECD economies.

    Similar to other G20 economies, Japan has increased its adoption of industrial policies. Japan’s industrial policies aim to advance several objectives, including economic security, resilience, inclusive growth, and green and digital transformation (the latter including support for the semiconductor industry). Under this umbrella, multi-year envelopes of 20 trillion and 10 trillion yen have been identified for green transformation and the semiconductor/AI industries, respectively. Given Japan’s limited fiscal space and the unclear growth impact of past IP, industrial policy schemes should be subjected to a comprehensive cost-benefit analysis. Going forward, IP should be narrowly targeted to specific objectives when externalities or market failures exist, to minimize distortions. It should avoid favoring domestic products over imports or creating incentives that lead to a fragmentation of the global system for trade and investment, in line with Japan’s commitment to multilateral economic cooperation.

    Japan remains committed to green transformation, and further progress on policies would enable reaching its targets. Notable ongoing efforts—such as the issuance of climate transition bonds to finance government green investment, and the implementation of carbon credits trading—are in line with international practices and previous staff advice. Nevertheless, without further policy changes, Japan is likely to fall short of its targets. To help meet its green commitments while boosting growth, a combination of policies is needed. Options include the removal of energy subsidies, the expansion of carbon pricing, feebates and tradable performance standards. Carbon pricing would need to be accompanied by targeted cash transfers to protect the vulnerable from adverse distributional effects.

    The IMF team would like to thank the authorities and other interlocutors in Japan for the frank and open discussions.

    Table 1. Japan: Selected Economic Indicators, 2021-26

    Nominal GDP: US$ 4,213 billion (2023)

    GDP per capita: US$ 33,849 (2023)

    Population: 124 million (2023)

    Quota: SDR 30.8 billion (2023)

    2021

    2022

    2023

    2024

    2025

    2026

    Est.

    Proj.

    (In percent change)

    Growth

      Real GDP

    2.7

    0.9

    1.5

    -0.2

    1.1

    0.8

      Domestic demand

    1.7

    1.5

    0.4

    0.2

    1.2

    0.8

        Private consumption  

    0.7

    2.1

    0.8

    -0.3

    0.9

    0.6

        Gross Private Fixed Investment

    1.3

    1.6

    1.5

    0.6

    1.1

    0.8

        Business investment  

    1.7

    2.6

    1.5

    1.3

    1.2

    0.9

        Residential investment  

    -0.3

    -2.7

    1.5

    -2.4

    0.8

    0.4

        Government consumption   

    3.4

    1.4

    -0.3

    1.0

    1.3

    1.2

        Public investment   

    -2.6

    -8.3

    1.5

    -1.2

    0.3

    0.0

        Stockbuilding

    0.5

    0.2

    -0.3

    0.1

    0.1

    0.0

      Net exports

    1.0

    -0.5

    1.0

    -0.2

    0.0

    0.1

        Exports of goods and services

    11.9

    5.5

    3.0

    0.7

    2.9

    2.0

        Imports of goods and services

    5.2

    8.3

    -1.5

    2.0

    2.9

    1.8

    Output Gap

    -1.6

    -0.9

    0.2

    0.1

    0.2

    0.0

    (In percent change, period average)

    Inflation

      Headline CPI

    -0.2

    2.5

    3.2

    2.8

    2.4

    2.0

      GDP deflator  

    -0.2

    0.4

    4.1

    3.0

    2.3

    2.1

    (In percent of GDP)

    Government

        Revenue  

    36.3

    37.5

    36.8

    36.9

    36.8

    36.8

        Expenditure  

    42.5

    41.8

    39.1

    39.4

    39.4

    39.7

        Overall Balance  

    -6.2

    -4.3

    -2.3

    -2.5

    -2.6

    -2.9

        Primary balance

    -5.6

    -3.9

    -2.1

    -2.1

    -2.2

    -2.2

    Structural primary balance

    -4.9

    -3.8

    -2.2

    -2.1

    -2.3

    -2.2

        Public debt, gross

    253.7

    248.3

    240.0

        237.0

    232.7

    230.0

    (In percent change, end-of-period)

    Macro-financial

    Base money

    8.5

    -5.6

    6.4

    -1.0

    2.2

    2.2

    Broad money

    2.9

    2.3

    2.2

    1.1

    2.1

    2.1

    Credit to the private sector

    2.3

    3.6

    4.2

    3.1

    1.8

    1.6

    Non-financial corporate debt in percent of GDP

    157.1

    161.2

    156.7

    159.8

    160.2

    161.3

    (In percent)

    Interest rate   

      Overnight call rate, uncollateralized (end-of-period)

    0.0

    0.0

    0.0

    …

    …

    …

      10-year JGB yield (end-of-period)

    0.1

    0.4

    0.6

    …

    …

    …

     

     

     

     

     

     

     

    (In billions of USD)

    Balance of payments    

    Current account balance   

    196.2

    89.9

    158.5

    179.4

    166.7

    162.2

            Percent of GDP   

    3.9

    2.1

    3.8

    4.5

    4.1

    3.8

        Trade balance

    16.4

    -115.8

    -48.2

    -31.5

    -26.2

    -24.1

            Percent of GDP   

    0.3

    -2.7

    -1.1

    -0.8

    -0.6

    -0.6

          Exports of goods, f.o.b.  

    749.2

    752.5

    713.7

    691.6

    705.5

    720.9

          Imports of goods, f.o.b.  

    732.7

    868.3

    761.9

    723.1

    731.7

    745.0

    Energy imports

    127.8

    195.5

    152.9

    145.2

    135.9

    122.5

    (In percent of GDP)

    FDI, net

    3.5

    3.0

    4.1

    4.8

    4.2

    4.1

    Portfolio Investment

    -3.9

    -3.3

    4.7

    5.5

    0.9

    0.9

    (In billions of USD)

    Change in reserves   

    62.8

    -47.4

    29.8

    -74.7

    11.5

    11.5

    Total reserves minus gold (in billions of US$)             

    1356.2

    1178.3

    1238.5

    …

    …

    …

    (In units, period average)

    Exchange rates                

      Yen/dollar rate    

    109.8

    131.5

    140.5

    …

    …

    …

      Yen/euro rate    

    129.9

    138.6

    152.0

    …

    …

    …

      Real effective exchange rate (ULC-based, 2010=100)       

    73.5

    61.8

    56.1

    …

    …

    …

      Real effective exchange rate (CPI-based, 2010=100)

    70.7

    61.0

    58.1

    …

    …

    …

     

    (In percent)

    Demographic Indicators

    Population Growth

    -0.3

    -0.3

    -0.5

    -0.5

    -0.5

    -0.5

    Old-age dependency

    48.7

    48.8

    48.9

    49.2

    49.7

    50.1

    Sources: Haver Analytics; OECD; Japanese authorities; and IMF staff estimates and projections.
                       

    [1] An IMF mission, led by Nada Choueiri and including Kohei Asao, Yan Carrière-Swallow, Andrea Deghi, Shujaat Khan, Gene Kindberg-Hanlon, Haruki Seitani, Danila Smirnov and Ara Stepanyan, conducted meetings in Japan during January 23-February 6, 2025. The mission met with senior officials at the Ministry of Finance, Bank of Japan, and other ministries and government agencies, along with representatives of labor unions, the business community, financial sector, and academics.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Randa Elnagar

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

    MIL OSI Economics –

  • MIL-OSI Russia: Japan: Staff Concluding Statement of the 2025 Article IV Mission

    Source: IMF – News in Russian

    February 7, 2025

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    Washington, DC – February 7, 2025[1]:

    After three decades of near-zero inflation, there are signs that Japan’s economy can sustainably converge to a new equilibrium. Inflation has surpassed the Bank of Japan’s 2-percent target for over two years and a tight labor market is delivering the strongest wage growth since the 1990s. But Japan continues to face challenges from its aging population and high public debt. Policy priorities are to re-anchor inflation expectations, rebuild fiscal buffers, and advance labor market reforms to support potential growth.

    RECENT DEVELOPMENTS, OUTLOOK, AND RISKS

    The economy contracted in the first half of 2024 due to temporary supply disruptions but gained momentum in the rest of the year. Domestic demand, private consumption in particular, has strengthened, while net external demand has been sluggish. Both headline and core inflation (excluding fresh food and energy) remain above the BoJ’s 2-percent headline inflation target. Goods inflation has been boosted by energy and food prices, while services price growth is relatively weaker and below 2 percent. Inflation expectations are becoming increasingly aligned with the inflation target, though some measures remain below that target. The yen-dollar exchange rate has experienced sizable swings, largely driven by shifts in interest rate differentials (which reflect broader macroeconomic developments), but also amplified by the build-up and subsequent unwinding of yen carry-trade positions. The pass-through to inflation is estimated to have been relatively mild so far. Wages are growing at their highest rate since the 1990s amid labor shortages and strong inflation, but they have remained lackluster in real terms.

    Growth is expected to accelerate in 2025, with private consumption strengthening further, as above-inflation wage growth will boost households’ disposable income. Private investment is also expected to remain strong, supported by high corporate profits and accommodative financial conditions. The output gap is estimated to be closed, and growth is expected to converge to its potential of 0.5 percent in the medium term. Headline and core inflation are expected to converge to the BoJ’s 2-percent headline inflation target in late 2025, helped by a moderation in commodity prices for oil and food. The current account surplus is expected to moderate in 2025 as the income balance narrows, with the trade balance remaining in deficit. The external position is assessed as broadly in line with the level implied by medium-term fundamentals and desirable policies.

    Risks to growth are tilted to the downside. On the external side, these include a slowdown in the global economy, deepening geoeconomic fragmentation and increasing trade restrictions, and more volatile food and energy prices. On the domestic side, the main downside risk is weak consumption if real wages do not pick up. Another domestic risk to the outlook is a possible decline in confidence in fiscal sustainability that leads to a tightening of financial conditions in the context of high public debt and gross financing needs. If downside risks materialize, it could result in Japan reverting to an effective-lower-bound constrained environment given the still-low level of the policy rate. 

    Risks to inflation are broadly balanced. On the downside, inflation expectations may stall below the headline inflation target following Japan’s prolonged experience with low inflation. Upside risks stem from rising food and energy prices, and from stronger-than-expected wages in the upcoming spring wage negotiations. Higher barriers to trade and cost pressures in major trading partners could spill over to Japan but the impact on domestic prices would be ambiguous given lower economic activity.

    ECONOMIC POLICIES

    Fiscal Policy

    The estimated fiscal deficit in 2024 is smaller than expected at the time of the 2024 Article IV. Tax revenues have been boosted by high corporate profits, and expenditures to support the economic recovery (such as transfers to households and SMEs) have been partly phased out. The fiscal deficit is projected to increase slightly in 2025, with additional spending planned for defense, children-related measures, and industrial policies (IP). There is a significant risk that the deficit will widen further, given the political demands on the minority government. This should be avoided as fiscal space remains limited: any expansionary measure should be offset by higher revenues or expenditure savings elsewhere in the budget.

    Public debt, as a share of GDP, is expected to decline in the near term, as nominal GDP growth is projected to exceed the effective interest rate on public debt. Public debt will remain high, however, and is estimated to start rising by 2030, driven by a higher interest bill and expenditure pressures related to spending on health and long-term care for an aging population. A clear consolidation plan is needed even in the near term to fully offset these pressures, ensure debt sustainability, and increase fiscal space needed to respond to shocks (including from natural disasters). This will require elaborating concrete and credible expenditure and revenue measures in the context of a robust medium-term fiscal framework:

    • The composition of public spending should be more growth-friendly, including by eliminating poorly targeted subsidies, notably energy subsidies, while preserving expenditure on high-quality public investment. Enhancing the targeting and efficiency of social security spending is critical to containing rising costs while preserving quality.
    • On the revenue side, options include strengthening financial income taxation for high-income earners, lowering exemptions and broadening the taxable valuation base under the property tax, streamlining income tax deductions, and unifying and eventually increasing the consumption tax rate. The PIT reform to the income deduction limit that is currently under consideration would need to be financed by additional revenues or savings elsewhere in the budget.
    • The repeated use, and incomplete execution of supplementary budgets undermines efficient resource allocation, budget transparency, and fiscal discipline. The use of supplementary budgets should be limited to responding to large, unexpected shocks that overwhelm automatic stabilizers, which would also avoid providing unwarranted stimulus in normal times. All medium-term spending commitments—including on IP and green transformation—should be incorporated into the regular budget process.

    As interest rates rise, the cost of servicing the large public debt is expected to double by 2030, putting a premium on a robust debt management strategy. In the face of rising gross financing needs and a shrinking BoJ balance sheet, government bond issuance will need to rely on additional demand from foreign investors and domestic institutions.

    Monetary and Exchange Rate Policies

    The current accommodative monetary policy stance is appropriate and will ensure inflation expectations rise sustainably to the 2-percent inflation target. Accommodation should continue to be withdrawn gradually if the baseline forecast bears out, under which we expect the policy rate would reach a neutral level by end-2027. High domestic and external uncertainty underscore the need for the BoJ to maintain its data-dependent and flexible approach and clear communications to anchor market expectations.

    The BOJ’s ongoing reduction in the size of its balance sheet has been clearly communicated, is appropriately modest in pace, and is proceeding smoothly. The BoJ should stand ready to modify the pace of its purchases should disorderly bond market conditions arise or if financial conditions become inconsistent with the desired monetary policy stance.

    Japan’s large stock of outstanding government debt and sizable net international investment position provide an important transmission channel for monetary policy to spill over into asset prices abroad. Clear communication and gradualism can limit adverse asset price reactions and outward spillovers.

    The authorities’ continued commitment to a flexible exchange rate regime is welcome. Exchange rate flexibility should continue to help absorb external shocks and support monetary policy’s focus on price stability. At the same time, it will also help maintain an external position in line with fundamentals.

    Financial Stability

    Japan’s financial system remains broadly resilient, supported by strong capital and liquidity buffers. Banks’ revenues have generally increased as credit costs remain low, the rise in interest rates has been gradual, and the yen has depreciated. Major banks continue to manage interest rate risks proactively through portfolio rebalancing and diversifying their funding sources. Financial intermediation remains stable supported by continued demand for loans from both corporate and household sectors. The insurance sector is well-capitalized and profitable, despite challenges from market volatility and demographic shifts.

    While the financial system remains generally resilient, systemic risk has risen slightly since the 2024 Article IV consultation, reflecting a combination of rising macroeconomic uncertainty, risk of faster than expected interest rates increases or unrealized losses, and rising bankruptcies among SMEs. Rising global macroeconomic uncertainty could impact Japanese banks’ investments. While gradually rising interest rates have helped bank profitability, faster-than-expected increases in interest rates or sudden changes in global financial conditions could amplify financial market volatility and interact with three persisting vulnerabilities identified in the 2024 FSAP: large securities held under mark-to-market accounting, significant foreign currency exposures—particularly through US dollar funding instruments—and signs of overheating in some areas of real estate. A faster-than-expected tightening of financial conditions could also disrupt the JGB market, amplifying interest rate risks for banks with larger exposures. Less-capitalized domestic banks are more vulnerable to rate hikes, facing heightened risks from unrealized losses and higher funding costs. Corporate defaults among smaller SMEs have been increasing, albeit from a low base, and could pose risks for regional banks with high SME loan exposure. 

    Strengthening systemic risk monitoring and the macroprudential policy framework is needed to better mitigate risks in the financial system. Ongoing efforts to expand data collection, enhance analytical capacity, and improve coordination between the FSA and BOJ are welcome. To further enhance systemic risk analysis, closing remaining data gaps and advancing analytical tools for a more comprehensive assessment of systemic vulnerabilities, including those related to foreign currency exposure, remain key priorities. Assigning a formal mandate to the Council for Cooperation on Financial Stability would reinforce the institutional framework, while expanding the macroprudential policy toolkit with targeted borrower-based measures would help mitigate vulnerabilities in the real estate sector.

    Further strengthening financial sector oversight is essential to bolster stability and resilience against emerging risks and vulnerabilities. While progress has been made in expanding staffing resources in certain areas, additional allocations are needed to reinforce financial supervision. The authorities should continue to enhance risk-based supervision to respond flexibly to an evolving banking system. Strengthening the Early Warning System with more forward-looking indicators, especially for credit and liquidity risks, and establishing minimum liquidity requirements for domestic banks would enhance stability. Supervisors should also have the authority to adjust bank capital ratios above minimum requirements based on individual risk profiles and financial conditions.

    The authorities should remain prepared to address market strains as they arise. The liquidity and functioning of the JGB market have improved since April but experienced temporary deterioration in early August amid a spike in market volatility. Rising foreign market volatility could impact domestic liquidity conditions, potentially triggering spillover effects. To mitigate these risks the central bank should closely monitor liquidity conditions and funding rates in money markets, while paying particular attention to the uneven distribution of liquidity among banks as well as the growth in repo transactions driven by demand from financial dealers and foreign investors. The scope of institutions eligible to receive emergency liquidity assistance could be expanded to nonbank financial institutions, prioritizing central counterparties. Recovery and Resolution Planning should be gradually expanded to all banks that could be systemic at failure, requiring more banks to maintain a minimum amount of loss-absorbing capacity tailored to their resolvability needs.

    Structural Policies

    Japan’s total factor productivity growth has been slowing for a decade and has fallen further behind the United States. A steady decline in allocative efficiency since the early 2000s has been a drag on productivity, and likely reflects an increase in market frictions. In addition, Japan’s ultra-low interest rates may have allowed low-productivity firms to survive longer than they otherwise would have, delaying necessary economic restructuring. Reforms aimed at improving labor mobility across firms would help improve Japan’s allocative efficiency and boost productivity.

    Japan’s labor market is expected to witness a significant transformation driven by population aging and advances in artificial intelligence (AI). Japan is aging rapidly—a trend that is expected to continue over coming decades—and has been at the forefront in labor-saving automation to alleviate labor shortages. Policies can play a crucial role in mitigating the impact of aging on labor supply and facilitating mobility needed to benefit from AI adoption:

    • Thanks to government efforts, Japan’s seniors already have a relatively high labor force participation rate compared to other OECD countries. But policy frictions such as an income threshold that triggers a loss of pension benefits may be inducing seniors to work fewer hours than they otherwise would.
    • Japan has made significant progress in increasing female labor force participation during the last decade. Further supporting women’s ability to fully participate in the labor force will require continuing to expand childcare resources and facilitate fathers’ contribution to home/childcare, and further encouraging the use of flexible working arrangements.
    • Training programs are crucial to enhance the complementarity of AI with the labor force and improve the productivity of senior workers.
    • Improving mobility and reducing barriers to job switching are essential to address labor shortages due to aging and the potential job displacement impact of AI. Subsidized training programs that are targeted to in-demand occupations could help reskill and upskill the labor force and facilitate occupational mobility.

    While AI may help to address some of Japan’s labor shortages, and since upskilling/reskilling the labor force takes time, attracting foreign workers could help alleviate labor shortages. Government programs have led to a tripling of the number of foreign workers in Japan during the past decade. However, foreigners continue to play a much smaller role in the Japanese labor force than they do in other OECD economies.

    Similar to other G20 economies, Japan has increased its adoption of industrial policies. Japan’s industrial policies aim to advance several objectives, including economic security, resilience, inclusive growth, and green and digital transformation (the latter including support for the semiconductor industry). Under this umbrella, multi-year envelopes of 20 trillion and 10 trillion yen have been identified for green transformation and the semiconductor/AI industries, respectively. Given Japan’s limited fiscal space and the unclear growth impact of past IP, industrial policy schemes should be subjected to a comprehensive cost-benefit analysis. Going forward, IP should be narrowly targeted to specific objectives when externalities or market failures exist, to minimize distortions. It should avoid favoring domestic products over imports or creating incentives that lead to a fragmentation of the global system for trade and investment, in line with Japan’s commitment to multilateral economic cooperation.

    Japan remains committed to green transformation, and further progress on policies would enable reaching its targets. Notable ongoing efforts—such as the issuance of climate transition bonds to finance government green investment, and the implementation of carbon credits trading—are in line with international practices and previous staff advice. Nevertheless, without further policy changes, Japan is likely to fall short of its targets. To help meet its green commitments while boosting growth, a combination of policies is needed. Options include the removal of energy subsidies, the expansion of carbon pricing, feebates and tradable performance standards. Carbon pricing would need to be accompanied by targeted cash transfers to protect the vulnerable from adverse distributional effects.

    The IMF team would like to thank the authorities and other interlocutors in Japan for the frank and open discussions.

    Table 1. Japan: Selected Economic Indicators, 2021-26

    Nominal GDP: US$ 4,213 billion (2023)

    GDP per capita: US$ 33,849 (2023)

    Population: 124 million (2023)

    Quota: SDR 30.8 billion (2023)

    2021

    2022

    2023

    2024

    2025

    2026

    Est.

    Proj.

    (In percent change)

    Growth

      Real GDP

    2.7

    0.9

    1.5

    -0.2

    1.1

    0.8

      Domestic demand

    1.7

    1.5

    0.4

    0.2

    1.2

    0.8

        Private consumption  

    0.7

    2.1

    0.8

    -0.3

    0.9

    0.6

        Gross Private Fixed Investment

    1.3

    1.6

    1.5

    0.6

    1.1

    0.8

        Business investment  

    1.7

    2.6

    1.5

    1.3

    1.2

    0.9

        Residential investment  

    -0.3

    -2.7

    1.5

    -2.4

    0.8

    0.4

        Government consumption   

    3.4

    1.4

    -0.3

    1.0

    1.3

    1.2

        Public investment   

    -2.6

    -8.3

    1.5

    -1.2

    0.3

    0.0

        Stockbuilding

    0.5

    0.2

    -0.3

    0.1

    0.1

    0.0

      Net exports

    1.0

    -0.5

    1.0

    -0.2

    0.0

    0.1

        Exports of goods and services

    11.9

    5.5

    3.0

    0.7

    2.9

    2.0

        Imports of goods and services

    5.2

    8.3

    -1.5

    2.0

    2.9

    1.8

    Output Gap

    -1.6

    -0.9

    0.2

    0.1

    0.2

    0.0

    (In percent change, period average)

    Inflation

      Headline CPI

    -0.2

    2.5

    3.2

    2.8

    2.4

    2.0

      GDP deflator  

    -0.2

    0.4

    4.1

    3.0

    2.3

    2.1

    (In percent of GDP)

    Government

        Revenue  

    36.3

    37.5

    36.8

    36.9

    36.8

    36.8

        Expenditure  

    42.5

    41.8

    39.1

    39.4

    39.4

    39.7

        Overall Balance  

    -6.2

    -4.3

    -2.3

    -2.5

    -2.6

    -2.9

        Primary balance

    -5.6

    -3.9

    -2.1

    -2.1

    -2.2

    -2.2

    Structural primary balance

    -4.9

    -3.8

    -2.2

    -2.1

    -2.3

    -2.2

        Public debt, gross

    253.7

    248.3

    240.0

        237.0

    232.7

    230.0

    (In percent change, end-of-period)

    Macro-financial

    Base money

    8.5

    -5.6

    6.4

    -1.0

    2.2

    2.2

    Broad money

    2.9

    2.3

    2.2

    1.1

    2.1

    2.1

    Credit to the private sector

    2.3

    3.6

    4.2

    3.1

    1.8

    1.6

    Non-financial corporate debt in percent of GDP

    157.1

    161.2

    156.7

    159.8

    160.2

    161.3

    (In percent)

    Interest rate   

      Overnight call rate, uncollateralized (end-of-period)

    0.0

    0.0

    0.0

    …

    …

    …

      10-year JGB yield (end-of-period)

    0.1

    0.4

    0.6

    …

    …

    …

     

     

     

     

     

     

     

    (In billions of USD)

    Balance of payments    

    Current account balance   

    196.2

    89.9

    158.5

    179.4

    166.7

    162.2

            Percent of GDP   

    3.9

    2.1

    3.8

    4.5

    4.1

    3.8

        Trade balance

    16.4

    -115.8

    -48.2

    -31.5

    -26.2

    -24.1

            Percent of GDP   

    0.3

    -2.7

    -1.1

    -0.8

    -0.6

    -0.6

          Exports of goods, f.o.b.  

    749.2

    752.5

    713.7

    691.6

    705.5

    720.9

          Imports of goods, f.o.b.  

    732.7

    868.3

    761.9

    723.1

    731.7

    745.0

    Energy imports

    127.8

    195.5

    152.9

    145.2

    135.9

    122.5

    (In percent of GDP)

    FDI, net

    3.5

    3.0

    4.1

    4.8

    4.2

    4.1

    Portfolio Investment

    -3.9

    -3.3

    4.7

    5.5

    0.9

    0.9

    (In billions of USD)

    Change in reserves   

    62.8

    -47.4

    29.8

    -74.7

    11.5

    11.5

    Total reserves minus gold (in billions of US$)             

    1356.2

    1178.3

    1238.5

    …

    …

    …

    (In units, period average)

    Exchange rates                

      Yen/dollar rate    

    109.8

    131.5

    140.5

    …

    …

    …

      Yen/euro rate    

    129.9

    138.6

    152.0

    …

    …

    …

      Real effective exchange rate (ULC-based, 2010=100)       

    73.5

    61.8

    56.1

    …

    …

    …

      Real effective exchange rate (CPI-based, 2010=100)

    70.7

    61.0

    58.1

    …

    …

    …

     

    (In percent)

    Demographic Indicators

    Population Growth

    -0.3

    -0.3

    -0.5

    -0.5

    -0.5

    -0.5

    Old-age dependency

    48.7

    48.8

    48.9

    49.2

    49.7

    50.1

    Sources: Haver Analytics; OECD; Japanese authorities; and IMF staff estimates and projections.
                       

    [1] An IMF mission, led by Nada Choueiri and including Kohei Asao, Yan Carrière-Swallow, Andrea Deghi, Shujaat Khan, Gene Kindberg-Hanlon, Haruki Seitani, Danila Smirnov and Ara Stepanyan, conducted meetings in Japan during January 23-February 6, 2025. The mission met with senior officials at the Ministry of Finance, Bank of Japan, and other ministries and government agencies, along with representatives of labor unions, the business community, financial sector, and academics.

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    PRESS OFFICER: Randa Elnagar

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    https://www.imf.org/en/News/Articles/2025/02/07/mcs-020725-japan-staff-concluding-statement-of-the-2025-article-iv-mission

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