NewzIntel.com

Category: Europe

  • MIL-OSI Security: NATO Secretary General congratulates US President-elect Donald Trump and Vice President-elect JD Vance

    Source: NATO

    I congratulate Donald Trump on his election as President of the United States.

    I look forward to working with him again to advance peace through strength through NATO.

    Through NATO, the US has 31 friends and Allies who help to advance US interests, multiply American power and keep Americans safe.

    Together, NATO Allies represent half of the world’s economic might and half of the world’s military might.

    We face a growing number of challenges globally, from a more aggressive Russia, to terrorism, to strategic competition with China, as well the increasing

    alignment of China, Russia, North Korea and Iran.

    Working together through NATO helps to deter aggression, protect our collective security, and support our economies. 

    President-elect Trump demonstrated strong U.S. leadership throughout his first term in office – a term that turned the tide on European defence spending, improved transatlantic burden sharing, and strengthened Alliance capabilities. 

    When President-elect Trump takes office again on January 20, he will be welcomed by a stronger, larger, and more united Alliance. 

    Two-thirds of Allies now spend at least 2% of their GDP on defence, and defence spending and production are on an onward trajectory across the Alliance.

    We must continue these efforts in order to preserve peace and prosperity across North America and Europe. 

    MIL Security OSI –

  • MIL-OSI Europe: Federal Council approves loan for reconstruction of IOM headquarters

    Source: Switzerland – Federal Council in English

    On 6 November 2024, the Federal Council approved a loan of CHF 44.7 million to the Foundation for Buildings for International Organisations (FIPOI). This funding will facilitate the demolition and reconstruction of the International Organization for Migration (IOM) headquarters in Geneva. The construction work is planned to last four years, from 2026 to 2029.

    MIL OSI Europe News –

  • MIL-OSI Economics: Website fb-invest.eu and fraudulent offers of shares: FB Invest UG (haftungsbeschränkt) target of identity fraud

    Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English

    Unknown persons are currently contacting consumers in Germany and offering them the opportunity to buy shares. BaFin suspects these persons of providing financial and investment services without the required authorisation. The offers of shares and the website fb-invest.eu used for this purpose do not originate from FB Invest UG (haftungsbeschränkt), based in Munich. This is a case of identity fraud. Furthermore, despite their assertions to the contrary, the website’s operators are not supervised by the financial supervisory authority BaFin.

    Anyone conducting banking business or providing financial or investment services in Germany may do so only with authorisation from BaFin. However, some companies offer these services without the necessary authorisation. Information on whether a particular company has been granted authorisation by BaFin can be found in BaFin’s database of companies.

    Theinformation provided by BaFin is based on section 37 (4) of the German Banking Act (Kreditwesengesetz – KWG).

    Please be aware:

    BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.

    MIL OSI Economics –

  • MIL-OSI Russia: Bank “RUSSIA” will finance investment projects of Gazprom Helium Service LLC in the gas sector

    Translation. Region: Russian Federation –

    Source: Bank “ROSSIA” Russia Bank –

    Press Releases and Events

    06.11.2024

    Bank “RUSSIA” will finance investment projects of Gazprom Helium Service LLC in the gas sector

    Gazprom Helium Service LLC and Bank ROSSIYA are expanding cooperation in the field of liquefied natural gas (LNG) production.

    Following negotiations at the St. Petersburg International Gas Forum, Gazprom Helium Service and Bank ROSSIYA signed a protocol of intent for the purpose of subsequent financing of investment projects for the construction and development of liquefied natural gas (LNG) complexes and the creation of LNG infrastructure.

    Reference

    Gazprom Helium Service LLC is an authorized company of PJSC Gazprom for the implementation of investment projects using cryogenic technologies, and ensures the production and logistics of PJSC Gazprom products — liquefied natural gas. The company creates production and LNG refueling infrastructure both to ensure refueling of its own vehicle fleet and for consumers. On its own basis, the company has formed the largest LNG motor transport enterprise in Russia for the transportation of liquefied gases, including on international routes.

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    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.

    Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

    http://abr.ru/about/nevs/13786/

    MIL OSI Russia News –

  • MIL-OSI Russia: Loud, bright, independent: The final of the Parade of Talents was held at the State University of Management

    Translation. Region: Russian Federation –

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

    On November 1, 2024, the final of the Parade of Talents of our university took place noisily and hotly in the Assembly Hall of the State University of Management.

    Even before the main event began, the atmosphere in the hall was like a discotheque – music was playing, spotlights were cutting through the stage smoke, fans were waving flags, posters, hearts made of light bulbs, and their ringleaders were chanting into a megaphone.

    The following panel of judges evaluated the teams’ productions: – Vice-Rector of the State University of Management Pavel Pavlovsky – Vice-President of the Novard Group of Companies, a graduate of the State University of Management Sergey Sarkisov – Chairperson of the State University of Management Student Council Valeriya Burlakova – Choreographer of the 2024 Talent Parade, coordinator of the Just Dance 2024 dance project, head of the cultural and mass direction of the State University of Management Student Council Anna Poryadina – TODES ballet dancer Yana Agapova.

    Before the concert, Pavel Pavlovsky and Sergey Sarkisov presented personal scholarships from the GUU Graduates Association. For entrepreneurial activity, they were received by Anastasia Manicheva, Stepan Yakovlev and Vladislav Naavgust. For active social work, the scholarship was awarded to Ksenia Starikova.

    Despite the fact that the theme of the Talent Parade this year was expressed by the phrase: “Shine with inner light, not external effects”, the teams did not forget about external effects, having prepared very colorful productions. However, the theme of the performances often concerned the inner world, for example, meme dreams at a temperature of 39°.

    In addition to the love story in dreams, the audience was shown a game of Mafia, given a tour of the chocolate factory with Charlie and the Oompa-Loompas, and scared by really creepy clowns. And the Pre-University of the State University of Management began the program with its own little concert within a concert.

    Vice-Rector of the State University of Management, member of the jury of the Talent Parade Pavel Pavlovsky: “The Talent Parade is a large-scale event, which is part of the adaptation program for first-year students. Its key feature can be called the “equal to equal” principle, that is, senior students help juniors. The main thing is that this is not done under duress, the university administration does not force anyone. On the contrary, students fight for the right to become curators. This is a great honor, a huge competition, elections are held. Such excitement arises largely due to the fact that the Talent Parade is an independent event. The concept of the approach to educational activities in our country is the relationship between law and responsibility. Students know that they can experiment, but they bear full responsibility for their experiments. This system bears fruit in the form of completely packed halls, satisfied first-year students who in the first months of study become an integral part of the university, imbued with its spirit, traditions, culture. And the members of the Student Council feel like full-fledged actors of the university with their own area of responsibility. The management of the State University of Management monitors the process, reducing the level of intervention to a minimum, and simply ensures that everything meets the requirements of the Ministry of Education and Science.”

    Results of the Talent Parade: 1st place – IIS “Pokoloko”; 2nd place – IEF Golden ticket; Audience Choice Award – IOM “Chudlibudli”.

    Full photo album.

    Subscribe to the TG channel “Our GUU” Date of publication: 6.11.2024

    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 Russia: Challenge accepted! Polytechnic hosted a festival for schoolchildren

    Translation. Region: Russian Federation –

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

    During the autumn school holidays, the annual festival for schoolchildren of grades 9–11, “Polytechnic Challenge,” was held at the St. Petersburg Polytechnic University. The festival is a team competition where children solve research and scientific problems of various types, apply the knowledge they have gained in practice, and learn to think creatively.

    This year, the Polytechnic Challenge was held in six areas. New this year was the Physical Battles. Schoolchildren had to not only find a solution to a physical problem, but also justify it and defend their point of view against their opponent. In two days, the teams also had to solve difficult tasks from the festival organizers. Thus, the participants in the engineering competitions had to assemble a device that could detect objects using a laser.

    The case championship teams worked on solving the problem of detecting and preventing forest fires. The traditional game “What? Where? When?” brought together the largest number of teams willing to demonstrate their knowledge, logic and ingenuity. The teams that took part in the 3D case needed the skills to work in special programs in order to design a crane structure and print the resulting model on a 3D printer. At the hackathon, high school students helped a large company avoid the consequences of a data breach and created their own application based on the provided database.

    The winners were teams from the SPbPU Natural Science Lyceum, Gymnasium No. 406, Engineering and Technology School No. 777, Anichkov Lyceum, Begunitskaya Secondary School, and the Academy of Digital Technologies. The best participants received prizes from the university, as well as additional points to their Unified State Exam results, which can be used when applying to the Polytechnic University.

    We like programming using Arduino, and the “Polytechnic Challenge” is a great opportunity for us to test and show our skills. Despite the difficulties during the creation of the device, we managed to find a solution that allowed us to win. Each time the tasks are more interesting, so next time we will take part in the festival again, — shared their impressions the students of the Natural Sciences Lyceum, winners of the festival in the “Engineering Competitions” category.

    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 Economics: Frank Elderson: The first decade of European supervision: taking stock and looking ahead

    Source: European Central Bank

    Keynote speech by Frank Elderson, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB at the “10 Years of SSM – Looking back and looking forward” conference organised by the European Banking Institute and the Hessisches Ministerium für Wissenschaft und Kunst

    Frankfurt am Main, 4 November 2024

    Introduction

    Thank you for your kind invitation. It’s a pleasure to be with you this afternoon to reflect on the first decade of European banking supervision and, most importantly, to take a look at the path ahead of us.

    On this day ten years ago, the morning might have seemed just like a typical November morning in Frankfurt’s Bankenviertel: a rainy autumn day, with people heading to their offices armed with umbrellas, wearing heavy coats.

    But that day ten years ago was anything but typical.

    Because it was the first time European supervisory teams got together and started work on an important task: making sure the banking system is safe and sound on behalf of European citizens.

    At the time, some argued that integrating a fragmented system of supervision was either impossible or would take forever. Well, those pioneer European supervisors who came together on 4 November 2014 have certainly proven the sceptics wrong.

    We have come a long way since that day. The last ten years have been transformative both for the Single Supervisory Mechanism (SSM) and the banks we supervise. We have evolved from a start-up to a mature, risk-based and effective supervisor. Banks under our supervision have also evolved significantly, building up remarkable resilience. Unlike in the crises that predated the banking union, banks have now become part of the solution to economic shocks rather than the source. That’s good news.

    There is, however, no room for complacency.

    While past achievements provide a solid foundation, they are by no means a guarantee of future success. The macro-financial environment is changing profoundly. Unlike ten years ago, when the main risks emanated from banks themselves, today prudential risks are largely driven by an increasingly volatile and uncertain external environment.

    In my remarks, I will therefore focus on how supervisors and banks must adapt to this challenging environment. I will also address suggestions being put forward by some to relax banking regulation and supervision – suggestions which in my view are misguided. Compromising the resilience that has been carefully built up over the past ten years would undermine the objective of having a financial system that can support a competitive and sustainable economy.

    The first decade of European supervision: from start-up to maturity

    But before focusing on current challenges, I hope you’ll allow me to take a brief walk down memory lane. Where did we start from? What were the expectations a decade ago? And how did we go about meeting them?

    As Europe was looking into the abyss of the euro area sovereign debt crisis in 2012, legislators agreed on nothing less than a paradigm shift – the banking union, which represented the most significant leap forward in European integration since the introduction of the euro.

    The banking union encompasses three pillars, each with a straightforward task: first, European banking supervision to ensure that banks across Europe are subject to the same rules and high-quality supervisory standards. Second, European resolution to make sure that if banks fail, they can get resolved in an orderly manner instead of relying on the public purse. And third, European deposit insurance, to make sure that when push comes to shove, all depositors enjoy the same protection, no matter where in the euro area they are based.

    As far as the supervisory pillar is concerned, the ECB and the national competent authorities that make up the SSM were given a clear mission: ensuring the safety and soundness of banks. This is not just an end in itself – it is necessary so that banks remain at the service of people and businesses by funding innovation, productivity and sustainable growth.

    The destination was clear. But we had no roadmap to show us how to get there. There was no blueprint on how to transform a fragmented system of supervision into an integrated one. So it was by no means a given that the SSM would be a success.

    In the start-up phase of the SSM we were essentially crossing the bridge we were still building: we spent the mornings recruiting the best risk experts from across Europe, the afternoons supervising significant banks, and the evenings setting up our processes.

    When we started, there were plenty of ways in which supervisors across Europe looked at risks and how best to mitigate them. They all focused on different things: while some put the emphasis on credit file reviews, others focused on scrutinising banks’ internal risk management through the lens of the internal capital adequacy assessment process. Some supervisors chose to shine the spotlight more closely on governance or on-site culture.

    Thanks to the unwavering commitment and tireless energy of supervisors from the national competent authorities and the ECB, we consolidated the best practices from this wealth of supervisory experience into a common supervisory approach. What followed was a race to the top rather than to the bottom, resulting in high-quality supervision and a level playing field.

    On our path to becoming a mature organisation, we have adapted our processes along the way. Our supervision has evolved from being predominantly rule-based and heavily codified, to having a more flexible, agile and risk-focused approach.

    And banks under our supervision have also evolved significantly over the past ten years. Today, European banks are in much better shape than a decade ago.

    For instance, the financial resilience of SSM banks has notably improved. The aggregate Common Equity Tier 1 (CET1) ratio has increased from 12.7% in 2015 to 15.8% today, the liquidity coverage ratio has increased from 138% in 2016 to 159% today and the non-performing loan ratio of significant banks has declined from 7.5% in 2015 to 1.9% today.[1]

    Moreover, risk management, the effectiveness of internal control functions and governance arrangements in SSM banks have all improved.

    Over the past ten years, banks under European supervision have shown remarkable resilience even under the most challenging circumstances. They have evolved from shock propagators to shock absorbers, stabilising rather than de-stabilising the economy as it experienced significant shocks such as the pandemic, Russia’s unjustified war against Ukraine and the rapid changes to the interest rate environment. This resilience is also a testament to the crucial role played by European supervision, confirming that the SSM has lived up to the expectations that were placed on it a decade ago.[2]

    Highly complex, volatile and challenging risk landscape

    But there is no room for complacency. We can’t assume that the achievements of the past ten years will automatically pave the way for another successful decade of resilient banks under European supervision.

    We can’t ignore the fact that the world around us is changing. The macro-financial environment is characterised by unprecedented shocks, giving rise to new risk drivers. In the words of President Lagarde, in the last three years alone we have “faced the worst pandemic since the 1920s, the worst conflict in Europe since the 1940s and the worst energy shock since the 1970s”.[3]

    And as former US Treasury secretary Larry Summers put it, “this is the most complex, disparate and cross-cutting set of challenges that I can remember in the 40 years that I have been paying attention to such things’’.[4]

    In fact, the current combination of risks, challenges and uncertainties is staggering.

    A widening geopolitical divide and a global economy that is fragmenting into competing, increasingly protectionist blocs, give rise to new geopolitical risks.

    Heightened operational headwinds such as ever-more sophisticated cyberattacks and technology disruptions are challenging banks’ operational resilience.

    And last, but, alas, not least, we see the climate and nature crises unfolding, as evidenced by the horrific events last week in Paiporta and other villages and towns in the Spanish region of Valencia. On top of the human tragedy and physical destruction, the climate and nature crises are increasingly leading to material risks for banks.

    What makes this period so unprecedented is that these challenges are not happening one after the other – they are all happening at the same time. And there is no clear sign of them going away any time soon, rather the contrary.

    So how can supervisors and banks adjust to this era of polycrises?

    Ensuring bank resilience in the era of polycrises

    First and foremost, banks’ management bodies are the ones holding the steering wheel and must ensure that banks remain resilient and prepared for this new risk landscape. This involves making sure that banks have sound risk management that is commensurate to new risk drivers, that they maintain sufficient capital headroom to cushion against credible adverse scenarios, and that banks’ management bodies are effective in their steering and oversight function.

    While acknowledging that banks’ management bodies are in the driving seat, as supervisors we keep a close eye to ensure that no material risks are left unaddressed.[5] This means that we must be able to identify the risks and then ensure that banks are resilient to these risks.

    To ensure that our risk identification can keep up with the changing risk landscape, we have made our supervisory processes more agile. We simply cannot look at every risk with the same intensity, every year, in every bank we supervise. We have therefore started to implement a supervisory risk tolerance framework aiming at freeing up the desks and minds of supervisors. This allows our supervisors to focus on those risks that are most pertinent and the supervisory actions that are most impactful. In the same vein, we have also reformed our Supervisory Review and Evaluation Process (SREP) to make it more targeted and risk-based. Moreover, we are increasingly using supervisory technology tools – also known as suptech – to detect risks early on and move closer to real-time supervision.[6]

    These improvements to our processes give our supervisory teams more time to focus on the most relevant risks. By detecting vulnerabilities that would otherwise only surface later, we help banks to be better prepared and build up resilience proactively.

    Let me illustrate this with an example. Threats from cyberattacks are on the increase and are challenging banks’ operational resilience. In 2022, 50% of our supervised entities were subject to at least one successful attack – that number rose to 68% in just one year.[7] In order to help banks better identify their vulnerabilities to cyber risks and bolster their operational resilience, earlier this year we conducted a cyber resilience stress test[8] to gauge how well banks would be able to respond to and recover from a successful cyberattack while maintaining their critical functions and services. The cyber resilience stress test was an important learning exercise for banks; it helped them pinpoint areas where they need to build greater operational resilience to cyberattacks, which are unlikely to fade away in the current geopolitical risk environment.

    Let’s shift our focus from risk identification to remediation. As supervisors we must ensure that the risks we identify in our risk assessments are adequately managed. This also means that if we find deficiencies in the way banks are managing their risks, they must be remediated fully and in a timely manner, not at some unspecified point in the distant future. This is why we are putting more emphasis on impact and effectiveness.[9]

    To ensure full and timely remediation of our supervisory findings, we set out a time-bound remediation path. If a bank is not remedying the deficiency at a speed that will ensure full and timely remediation by the pre-established timeline, we will step up our supervisory action by deploying more intrusive measures from our ample supervisory toolkit. This is what we call the “escalation ladder”.

    The use of supervisory powers to compel banks to make concrete improvements is not just something we do within the SSM; it is international best practice.[10] The disorderly events of the March 2023 banking turmoil were a clear reminder of what can happen when banks leave material shortcomings unaddressed for too long.

    Banks and supervisors need to have the capacity to focus on emerging challenges. That’s why it is important to declutter our desks by tackling supervisory findings that have been with us for too long. While this is always an imperative, it is especially pertinent in the current challenging risk landscape.

    Let me illustrate this with the example of risk data aggregation and reporting. It is very hard to imagine any bank being able to appropriately manage its risks without strong risk data reporting. A bank’s ability to manage and aggregate risk-related data effectively is a pre-requisite for sound decision-making and robust risk governance. In fact, the Capital Requirements Directive, as transposed into national law, requires banks to put processes in place to identify all material risks. Worryingly, risk data aggregation and reporting was the lowest-scoring sub-category of internal governance in the 2023 SREP. In other words, despite the work done by supervisors over the years, too many banks still don’t have adequate risk data aggregation and reporting capabilities.

    It should not be a surprise that ECB Banking Supervision is stepping up the escalation ladder, using more intrusive supervisory tools to ensure that banks have adequate risk data aggregation capabilities. It’s not about forcing banks to do something that is merely an added perk; it’s about making sure they are able to manage material risks adequately and in good time. In a rapidly changing risk environment where prompt availability of reliable data has become essential, timely remediation of our supervisory findings on risk data aggregation is more important than ever.

    Deregulation and lenient supervision would compromise resilience

    After a decade of European supervision, it is not only the external risk environment that has changed. The current debate suggests that the perception by some of the role of financial regulation and supervision is also changing.

    Ten years ago, with the gloomy memories of the global financial crisis lingering in people’s minds, there was a strong consensus across society on the need for strong financial regulation and supervision in order to safeguard the public good of financial stability.

    Today, it appears that the pendulum is slowly swinging in the opposite direction. Some have raised the question as to whether regulation and supervision have become too conservative, to the point that they may constrain growth.

    Let me be clear: the argument being put forward in favour of relaxing banking regulation and supervision in order to promote growth is misguided.[11]

    We can’t allow the memory of the global financial crisis to fade. Its lessons are as relevant today as they were back in 2012, when the banking union was created. As deputy governor of the Bank of England, Sam Woods, correctly said, the great financial crisis was “the biggest growth-destroying event in recent economic history”.[Second, we would welcome if Member States were to resume discussions on setting-up a European-level public backstop to provide temporary liquidity funding to banks following resolution. The credibility of the resolution framework in Europe would be significantly enhanced by setting up a framework for liquidity in resolution.

    Moreover, building on the strong foundations of the SSM and the Single Resolution Mechanism, we must pave the way for a common European deposit insurance scheme (EDIS). In the first decade of the SSM, risks have been significantly reduced and common supervisory standards have been established. These preconditions for EDIS have now been met, and moving it forward will be important for severing any remaining feedback loops between banks and sovereigns, given that these proved so harmful during the sovereign debt crisis.

    Conclusion

    Let me conclude.

    Ten years ago today, when European supervisory teams started to come together for the first time, it was not at all certain that the SSM would be a success.

    We have since built a strong and effective supervisory framework in Europe, perceptive to evolving risks and – whenever necessary and appropriate – insistent in making sure that material risks are addressed. European banks have notably improved, proving resilient to shocks that we couldn’t have imagined a decade ago. This resilience is also a result of the strengthened supervisory and regulatory framework put in place after the global financial crisis, including the creation of the banking union.

    Ten years ago, the first Vice-Chair of the SSM, Sabine Lautenschläger, invoked the parallel of an athlete at the beginning of a career, who trained extremely hard and achieved an excellent result in a first major tournament.[15] To turn this promising start into a track record of sustained high performance, the athlete clearly cannot afford to rest on her laurels. Instead, she needs to go right back to the routine of constant training, to keep developing her skills and thus continue to build the foundation for future success on a day-to-day basis.

    This conclusion is as relevant today as it was ten year ago, especially considering the challenges along the path ahead.

    Considering the macro-financial environment and volatile risk landscape, it is safe to say that there is a high likelihood of unprecedented shocks continuing to emerge over the next decade. To make sure banks continue to serve European households and businesses under these challenging circumstances, we must ensure they remain resilient. Because a stable banking system forms the bedrock of long-term competitiveness and sustainable growth.

    European supervisors will continue to work tirelessly to make sure banks are well capitalised and adequately manage their risks. In this way, in ten years’ time we can celebrate another successful decade of resilient banks under European supervision.

    MIL OSI Economics –

  • MIL-OSI Economics: WTO members review latest notifications of anti-dumping actions

    Source: WTO

    Headline: WTO members review latest notifications of anti-dumping actions

    The Committee reviewed new notifications of legislation submitted by Brazil, Cabo Verde, Solomon Islands and the United States. It continued its review of the legislative notifications of the European Union, Ghana, Liberia, and Saint Kitts and Nevis.
    In reviewing semi-annual notifications on anti-dumping actions, delegations questioned and discussed the practices of other members including in relation to the initiation of investigations, the imposition of provisional and final anti-dumping measures, and the review of existing anti-dumping measures. Delegations questioned and discussed actions contained in the semi-annual reports submitted by Brazil, China, the European Union, India, Indonesia, Malaysia, Pakistan, South Africa, Türkiye, the United Kingdom and the United States. In presenting its semi-annual report, Ukraine expressed concerns over the war in Ukraine and the effects on its domestic industry.
    In respect of the semi-annual reports covering the period 1 January – 30 June 2024, 45 members notified the Committee of anti-dumping actions taken in this period, while 15 reported no new anti-dumping actions in the same period. In addition, 51 members submitted one-time notifications indicating they have not established an authority competent to initiate and conduct an investigation and have not, to date, taken any anti-dumping actions.
    In addition to the semi-annual reports, the WTO’s Anti-Dumping Agreement requires members to submit without delay – on an ad hoc basis – notifications of all preliminary and final anti-dumping actions taken. Ad hoc notifications reviewed during the meeting were received from Argentina; Armenia; Australia; Brazil; Canada; Chile; China; the European Union; Georgia; India; Israel; Japan; Kazakhstan; the Republic of Korea; the Kyrgyz Republic; Mexico; Morocco; Pakistan; the Russian Federation; South Africa; Chinese Taipei; Türkiye; Ukraine; the United Kingdom; and the United States. Members raised questions and discussed actions taken by Australia, China and Morocco. Canada encouraged members to submit timely ad hoc notifications and raised concerns about the conduct of investigations it considered to be politically motivated which are not based on sufficient evidence or justification. 
    In the absence of the Chair of the Committee Mr Mohamed Zuhair Taous (Tunisia), the interim Chair Mr Wolfram Spelten (Germany), who was elected to preside over the October 2024 meetings of the Committee and of its subsidiary bodies, urged members that had not submitted semi-annual reports and ad hoc notifications of actions taken to do so promptly. The interim Chair welcomed members’ continued extensive use of the anti-dumping portal to submit their semi-annual reports. 
    The Committee adopted its 2024 annual report to the Council for Trade in Goods.
    Next meetings
    The Committee decided that its spring and autumn meetings for 2025 would be held in the weeks of 28 April and 27 October 2025, respectively.

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    MIL OSI Economics –

  • MIL-OSI Security: Turkish National Arrested for Allegedly Conspiring to Violate Venezuela-Related Sanctions

    Source: United States Attorneys General 1

    Taskin Torlak, 37, of Turkey, was arrested in Miami, on Nov. 2 for allegedly conspiring to violate U.S. sanctions as part of a scheme to transport oil from Venezuela for the benefit of Petróleos de Venezuela, S.A. (PdVSA), Venezuela’s state-owned oil and natural gas company.

    “As alleged, the defendant conspired to evade U.S. sanctions imposed on PdVSA, deploying deception to smuggle black-market oil from Venezuela,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will continue to hold accountable those involved in criminal efforts to circumvent sanctions imposed on the Maduro regime.”

    “This defendant allegedly conspired to illegally sell Venezuelan oil, using deceit and trickery to hide the fact that this oil originated from Venezuela,” said U.S. Attorney Matthew Graves for the District of Columbia. “Venezuela’s state-owned oil company, PdVSA, was sanctioned by the U.S. government to prevent the current regime from further depleting the nation’s resources while it unlawfully remains in power.  We remain dedicated to prosecuting violations of these sanctions until the government of Venezuela takes the necessary steps for these sanctions to be lifted.”

    Torlak was arrested as he attempted to depart the United States to return to Turkey. He is charged by complaint with one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA). According to the complaint, Torlak conspired with others to cause U.S. financial institutions to process transactions connected to the transport of Venezuelan oil for the benefit of PdVSA, which the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated as a Specially Designated National (SDN) in January 2019.

    According to the complaint, beginning at least in or around November 2020, Torlak and others devised and implemented a complex scheme to violate and evade U.S. sanctions related to petroleum products from Venezuela and Iran. The scheme included obfuscating the identities of tankers moving the oil by re-naming and re-flagging vessels, covering vessel names with paint or blankets, and turning off the electronics that track vessels’ locations for the safety of ships and their crews. Torlak and his co-conspirators allegedly received tens of millions of dollars from PdVSA in payment for transporting Venezuelan oil, and hid the ultimate beneficiaries of the related transactions from U.S. financial institutions, who then unwittingly processed payments in furtherance of the scheme. The complaint further alleges that Torlak and his co-conspirators explicitly discussed the need to hide their conduct from the U.S. Government and its agencies, including OFAC, as well as commercial maritime entities.

    Homeland Security Investigations Washington D.C. is investigating the case.

    Assistant U.S. Attorney Maeghan Mikorski for the District of Columbia and Trial Attorneys Sean Heiden and Chantelle Dial of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Valuable assistance was provided by the U.S. Attorney’s Office for the Southern District of Florida.

    A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI: Media Advisory: Fortinet Returns to World Economic Forum Annual Meeting on Cybersecurity

    Source: GlobeNewswire (MIL-OSI)

    SUNNYVALE, Calif., Nov. 04, 2024 (GLOBE NEWSWIRE) —

    Derek Manky, Chief Security Strategist and VP of Global Threat Intelligence at Fortinet
    “In today’s interconnected world, the fight against cybercrime requires a unified front. Public-private partnerships are vital for sharing threat intelligence, resources, and innovations that collectively help organizations worldwide stay ahead of digital adversaries. The World Economic Forum’s Annual Meeting on Cybersecurity continues to offer a unique opportunity for collaboration where fellow cybersecurity leaders share effective strategies and develop real-world solutions for disrupting cybercrime.”

    News Summary
    Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced that the company will return to the World Economic Forum’s Annual Meeting on Cybersecurity in Geneva, Switzerland, from November 11 to 13. Fortinet is a founding member of the Forum’s Centre for Cybersecurity and will again engage in the yearly event, which brings together global cybersecurity leaders from business, government, international organizations, civil society, and academia to foster collaboration and enhance collective cyber resilience.

    Derek Manky, Fortinet Chief Security Strategist and VP of Global Threat Intelligence, will share expertise and insights as the moderator of a panel discussion on November 13 about countering cybercrime through public-private partnerships. In addition to his active role in the Forum and its Centre for Cybersecurity’s Partnership Against Cybercrime and the Cybercrime Atlas initiative, Derek is actively involved with global threat intelligence initiatives, including NATO NICP, INTERPOL Expert Working Group, the Cyber Threat Alliance working committee, and FIRST, all in effort to shape the future of actionable threat intelligence and proactive security strategy.

    In the past year, as a leading contributor to the Cybercrime Atlas initiative, Fortinet has collaborated to promote new approaches to accelerate the fight against cybercrime. Significant progress has been made, with the Cybercrime Atlas community vetting more than 10,000 actionable data points, creating seven intelligence packages to support cyber defenders, and supporting two cross-border disruption campaigns through the group’s research and intelligence.

    Session Details

    Title: Better, Faster, Stronger: Accelerating Operational Collaborations to Disrupt Cybercrime
    When: November 13, 2024, 10:30 a.m. CET
    Where: World Economic Forum headquarters, Geneva, Switzerland
    Overview: Operational collaborations to counter cybercrime are leading to arrests and shutdowns of massive criminal networks in 2024. However, we are not yet collaborating at a scale or speed that will change the calculation for criminals. This session will offer insights into how to harness the lessons from successful operational collaborations around the world to systematically disrupt cybercriminals in 2025.
    Speakers:

    • Derek Manky, Chief Security Strategist and VP of Global Threat Intelligence, Fortinet (facilitator)
    • Edvardas Šileris, Head, European Cybercrime Centre (EC3), Europol
    • Brigadier General Oleksandr Potii, Deputy Chairman, State Service of Special Communications and Information Protection of Ukraine
    • Craig Rice, Chief Executive Officer, Cyber Defence Alliance
    • Samantha Kight, Head, Industry Security, Global System for Mobile Communications Association (GSMA)

    More about the World Economic Forum Annual Meeting on Cybersecurity

    In a rapidly evolving cyberspace, where innovation and technology continuously redefine boundaries, systemic inequity is emerging when it comes to the capabilities of
    organizations and countries to safeguard the benefits of technological progress.

    According to the World Economic Forum’s Global Cybersecurity Outlook 2024, the number of organizations maintaining minimum viable cyber resilience has decreased by 30%. This decline has further widened the skills gap in organizational cyber capabilities. The risks associated with this growing technological divide threaten the entire ecosystem and disproportionately impact the already vulnerable.

    Against this backdrop, the Annual Meeting on Cybersecurity 2024 will bring together over 150 of the world’s foremost cybersecurity leaders from business, government, international organizations, civil society, and academia to foster collaboration on making cyberspace safer and more resilient for all.

    Additional Resources

    About Fortinet
    Fortinet (NASDAQ: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices, and data everywhere, and today we deliver cybersecurity everywhere you need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented, and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including CERTs, government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog, and FortiGuard Labs. 

    Copyright © 2024 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAuthenticator, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCSPM, FortiCWP, FortDAST, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevSec, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFlex FortiFone, FortiGSLB, FortiGuest, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPenTest, FortiPhish, FortiPoint, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiSDNConnector, FortiSEC, FortiSIEM, FortiSMS, FortiSOAR, FortiStack, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM and FortiXDR. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

    The MIL Network –

  • MIL-OSI: Volta Finance Limited – Director/PDMR Shareholding

    Source: GlobeNewswire (MIL-OSI)

    Volta Finance Limited (VTA/VTAS)

    Notification of transactions by directors, persons discharging managerial
    responsibilities and persons closely associated with them

    NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

    *****
    Guernsey, 4 November 2024

    Pursuant to the announcements made on 5 April 2019 and 26 June 2020 relating to changes to the payment of directors fees, Volta Finance Limited (the “Company” or “Volta”) has purchased 3,403 ordinary shares of no par value in the Company (“Ordinary Shares”) at an average price of €5.5 per share.

    Each director receives 30% of their Director’s fees for any year in the form of shares, which they are required to retain for a period of no less than one year from their respective date of issue.

    The shares will be issued to the Directors, who for the purposes of Regulation (EU) No 596/2014 on Market Abuse (“MAR“) are “persons discharging managerial responsibilities” (a “PDMR“).

    • Dagmar Kershaw, Chairman and a PDMR for the purposes of MAR, acquired 1,047 additional Ordinary Shares in the Company. Following the settlement of this transaction, Ms Kershaw will have an interest in 13,885 Ordinary Shares, representing 0.04% of the issued shares of the Company;
    • Stephen Le Page, Director and a PDMR for the purposes of MAR, acquired 733 additional Ordinary Shares in the Company. Following the settlement of this transaction, Mr Le Page will have an interest in 51,295 Ordinary Shares, representing 0.14% of the issued shares of the Company;
    • Yedau Ogoundele, Director and a PDMR for the purposes of MAR acquired 733 additional Ordinary Shares in the Company. Following the settlement of this transaction, Mrs Ogoundele will have an interest in 7,595 Ordinary Shares, representing 0.02% of the issued shares of the Company; and
    • Joanne Peacegood, Director and a PDMR for the purposes of MAR acquired 890 additional Ordinary Shares in the Company. Following the settlement of this transaction, Mrs Peacegood will have an interest in 4,395 Ordinary Shares, representing 0.01% of the issued shares of the Company;

    The notifications below, made in accordance with the requirements of MAR, provide further detail in relation to the above transactions:

    1. Details of the person discharging managerial responsibilities / person closely associated
    a)   Dagmar Kershaw
    CHAIRMAN & DIRECTOR      		 b) Stephen Le Page
    DIRECTOR    		   c) Yedau Ogoundele
    DIRECTOR    		 d) Joanne Peacegood
    DIRECTOR
    1. Reason for the notification
    a. Position/status Director
    b. Initial notification/Amendment Initial notification
    1. Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
    a. Name Volta Finance Limited
    b. LEI 2138004N6QDNAZ2V3W80
    1. Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
    a. Description of financial instrument, type of instrument Ordinary Shares
    b. Identification code GG00B1GHHH78
    c. Nature of the transaction Purchase and allocation of Ordinary Shares relation to the part-payment of Directors’ fees for the quarter ended 31 October 2024
    d. Price(s) €5.5 per share
    e. Volume(s) Total: 3,403
    f. Date of transaction 1 November 2024
    g. Place of transaction On-market – London
    1. Aggregate Purchase Information
    a)
    Dagmar Kershaw
    Chairman and Director    		 b)
    Stephen Le Page
    Director    		   c)
    Yedau Ogoundele
    Director    		 d)
    Joanne Peacegood
    Director
    Aggr. Volume:
    1,047

    Price:
    €5.5per share

    		 Aggr. Volume:
    733

    Price:
    €5.5 per share

    		   Aggr. Volume:
    733

    Price:
    €5.5 per share

    		 Aggr. Volume:
    890

    Price:
    €5.5 per share

    CONTACTS

    For the Investment Manager
    AXA Investment Managers Paris
    François Touati
    francois.touati@axa-im.com
    +33 (0) 1 44 45 80 22

    Olivier Pons
    Olivier.pons@axa-im.com
    +33 (0) 1 44 45 87 30

    Company Secretary and Administrator
    BNP Paribas S.A, Guernsey Branch
    guernsey.bp2s.volta.cosec@bnpparibas.com 
    +44 (0) 1481 750 853

    Corporate Broker
    Cavendish Securities plc
    Andrew Worne
    Daniel Balabanoff
    +44 (0) 20 7397 8900

    *****
    ABOUT VOLTA FINANCE LIMITED

    Volta Finance Limited is incorporated in Guernsey under the Companies (Guernsey) Law, 2008 (as amended) and listed on Euronext Amsterdam and the London Stock Exchange’s Main Market for listed securities. Volta’s home member state for the purposes of the EU Transparency Directive is the Netherlands. As such, Volta is subject to regulation and supervision by the AFM, being the regulator for financial markets in the Netherlands.

    Volta’s Investment objectives are to preserve its capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis. The Company currently seeks to achieve its investment objectives by pursuing exposure predominantly to CLO’s and similar asset classes. A more diversified investment strategy across structured finance assets may be pursued opportunistically. The Company has appointed AXA Investment Managers Paris an investment management company with a division specialised in structured credit, for the investment management of all its assets.

    *****

    ABOUT AXA INVESTMENT MANAGERS
    AXA Investment Managers (AXA IM) is a multi-expert asset management company within the AXA Group, a global leader in financial protection and wealth management. AXA IM is one of the largest European-based asset managers with 2,700 professionals and €844 billion in assets under management as of the end of December 2023.  

    *****

    This press release is published by AXA Investment Managers Paris (“AXA IM”), in its capacity as alternative investment fund manager (within the meaning of Directive 2011/61/EU, the “AIFM Directive”) of Volta Finance Limited (the “Volta Finance”) whose portfolio is managed by AXA IM.

    This press release is for information only and does not constitute an invitation or inducement to acquire shares in Volta Finance. Its circulation may be prohibited in certain jurisdictions and no recipient may circulate copies of this document in breach of such limitations or restrictions. This document is not an offer for sale of the securities referred to herein in the United States or to persons who are “U.S. persons” for purposes of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or otherwise in circumstances where such offer would be restricted by applicable law. Such securities may not be sold in the United States absent registration or an exemption from registration from the Securities Act. Volta Finance does not intend to register any portion of the offer of such securities in the United States or to conduct a public offering of such securities in the United States.

    *****

    This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The securities referred to herein are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. Past performance cannot be relied on as a guide to future performance.

    *****
    This press release contains statements that are, or may deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “anticipated”, “expects”, “intends”, “is/are expected”, “may”, “will” or “should”. They include the statements regarding the level of the dividend, the current market context and its impact on the long-term return of Volta Finance’s investments. By their nature, forward-looking statements involve risks and uncertainties and readers are cautioned that any such forward-looking statements are not guarantees of future performance. Volta Finance’s actual results, portfolio composition and performance may differ materially from the impression created by the forward-looking statements. AXA IM does not undertake any obligation to publicly update or revise forward-looking statements.

    Any target information is based on certain assumptions as to future events which may not prove to be realised. Due to the uncertainty surrounding these future events, the targets are not intended to be and should not be regarded as profits or earnings or any other type of forecasts. There can be no assurance that any of these targets will be achieved. In addition, no assurance can be given that the investment objective will be achieved.

    The figures provided that relate to past months or years and past performance cannot be relied on as a guide to future performance or construed as a reliable indicator as to future performance. Throughout this review, the citation of specific trades or strategies is intended to illustrate some of the investment methodologies and philosophies of Volta Finance, as implemented by AXA IM. The historical success or AXA IM’s belief in the future success, of any of these trades or strategies is not indicative of, and has no bearing on, future results.

    The valuation of financial assets can vary significantly from the prices that the AXA IM could obtain if it sought to liquidate the positions on behalf of the Volta Finance due to market conditions and general economic environment. Such valuations do not constitute a fairness or similar opinion and should not be regarded as such.

    Editor: AXA INVESTMENT MANAGERS PARIS, a company incorporated under the laws of France, having its registered office located at Tour Majunga, 6, Place de la Pyramide – 92800 Puteaux. AXA IMP is authorized by the Autorité des Marchés Financiers under registration number GP92008 as an alternative investment fund manager within the meaning of the AIFM Directive.

    *****

    The MIL Network –

  • MIL-OSI: Kvika banki hf.: Publication of Q3 Financial Results on Wednesday 6 November

    Source: GlobeNewswire (MIL-OSI)

    The Board of Directors of Kvika banki hf. is set to approve the financial statements of the Group for the third quarter and the first nine months of 2024 at a board meeting on Wednesday 6 November. The financial statements will subsequently be published after domestic markets have closed.

    A meeting to present the results to shareholders and market participants will be combined with Kvika’s Capital Markets Day which will be held the next day, at 12:00 on Thursday 6 November in Harpa’s Northern Lights Hall and through a live webcast.  

    The presentation will be conducted in Icelandic and a recording of the meeting with English subtitles will later be made available on Kvika’s website.

    For further information please contact Kvika’s investor relations at ir@kvika.is

    The MIL Network –

  • MIL-OSI USA: Turkish National Arrested for Allegedly Conspiring to Violate Venezuela-Related Sanctions

    Source: US State of Vermont

    Taskin Torlak, 37, of Turkey, was arrested in Miami, on Nov. 2 for allegedly conspiring to violate U.S. sanctions as part of a scheme to transport oil from Venezuela for the benefit of Petróleos de Venezuela, S.A. (PdVSA), Venezuela’s state-owned oil and natural gas company.

    “As alleged, the defendant conspired to evade U.S. sanctions imposed on PdVSA, deploying deception to smuggle black-market oil from Venezuela,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will continue to hold accountable those involved in criminal efforts to circumvent sanctions imposed on the Maduro regime.”

    “This defendant allegedly conspired to illegally sell Venezuelan oil, using deceit and trickery to hide the fact that this oil originated from Venezuela,” said U.S. Attorney Matthew Graves for the District of Columbia. “Venezuela’s state-owned oil company, PdVSA, was sanctioned by the U.S. government to prevent the current regime from further depleting the nation’s resources while it unlawfully remains in power.  We remain dedicated to prosecuting violations of these sanctions until the government of Venezuela takes the necessary steps for these sanctions to be lifted.”

    Torlak was arrested as he attempted to depart the United States to return to Turkey. He is charged by complaint with one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA). According to the complaint, Torlak conspired with others to cause U.S. financial institutions to process transactions connected to the transport of Venezuelan oil for the benefit of PdVSA, which the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated as a Specially Designated National (SDN) in January 2019.

    According to the complaint, beginning at least in or around November 2020, Torlak and others devised and implemented a complex scheme to violate and evade U.S. sanctions related to petroleum products from Venezuela and Iran. The scheme included obfuscating the identities of tankers moving the oil by re-naming and re-flagging vessels, covering vessel names with paint or blankets, and turning off the electronics that track vessels’ locations for the safety of ships and their crews. Torlak and his co-conspirators allegedly received tens of millions of dollars from PdVSA in payment for transporting Venezuelan oil, and hid the ultimate beneficiaries of the related transactions from U.S. financial institutions, who then unwittingly processed payments in furtherance of the scheme. The complaint further alleges that Torlak and his co-conspirators explicitly discussed the need to hide their conduct from the U.S. Government and its agencies, including OFAC, as well as commercial maritime entities.

    Homeland Security Investigations Washington D.C. is investigating the case.

    Assistant U.S. Attorney Maeghan Mikorski for the District of Columbia and Trial Attorneys Sean Heiden and Chantelle Dial of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Valuable assistance was provided by the U.S. Attorney’s Office for the Southern District of Florida.

    A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL OSI USA News –

  • MIL-OSI Global: US election: how does the electoral college voting system work?

    Source: The Conversation – UK – By Richard Hargy, Visiting Research Fellow in International Studies, Queen’s University Belfast

    The electoral votes in swing states are likely to edge one candidate over the line. Tomas Ragina/Shutterstock

    On November 5, millions of Americans will cast their votes for president, with the vast majority deciding between Democrat Kamala Harris or Republican Donald Trump. This historic election, however, is not determined by a singular national poll, but rather a state-by-state contest. Many people outside the US, and some inside, do not understand how this complicated system works.

    Here are five things to know about the electoral college system:

    1. It’s not one electoral contest, but 50 separate races

    The founding fathers opted against a national popular vote where the winning candidate just has to gain a majority of votes to claim victory. They decided instead to establish an electoral college under Article II of the US Constitution.

    Under this system, voters in every US state and the District of Columbia decide the outcome of a winner-takes-all contest for their state’s electoral votes. Each state is allocated a set number of electoral votes, in line with the size of its population. For example, Texas, with a population of over 29 million, has 50 electoral votes. North Dakota, on the other hand, has a population of under 800,000 and is apportioned three.

    By securing a majority of the vote in a state, a candidate collects its allotted electoral college votes. There are 538 in total, with the winner needing at least 270 to secure the presidency (with their running-mate becoming vice-president).

    Maine and Nebraska are the only two exceptions to the winner-takes-all approach. These states also use their congressional districts to allocate some electoral college votes: two go to each state’s overall popular vote winner, while one goes to the popular vote winner in each congressional district (two districts in Maine, three in Nebraska).

    So, when Americans mark their ballot with their choice for president, this vote is technically not awarded automatically to the candidate. Rather, it goes to the individual state’s electors. These people convene across all 50 states once the election is complete, then formally send their state’s electoral votes to the US Congress. The electors are usually state election officials or prominent party members.

    Brown University professor of political science Wendy Schiller explained the choice of an electoral college system more than 200 years ago was rooted in a distrust of citizens to make a reasoned choice: “The origins of the electoral college were not supposed to reflect voter opinion at all – it was to be a gate against making a bad choice. It was an elite bulwark against popular opinion.”

    2. It can allow for unpredictable and unruly outcomes

    By its very nature, the electoral college can result in two unusual, but not improbable, scenarios. First, a candidate can win the electoral college while losing the popular vote and still become president – as happened most recently in 2000 with George W. Bush and in 2016 with Trump.

    Secondly, the system allows for a situation were neither candidate wins a majority of electoral votes. If there is a 269-269 tie, a “contingent election” is held under the 12th Amendment. In this case, members of the new House of Representatives, sworn in on January 3 2025, would choose the next president. They do not vote based on individual preference. Instead, every state delegation gets one vote, with a simple majority of 26 state delegation votes needed to decide who becomes president. This has happened only twice in presidential elections, in 1801 and 1825. The House must continue voting until a president is elected.

    A history of the electoral college system.

    3. In 2020, Trump’s supporters sought to challenge the electoral college results

    State legislators can object to their state’s general election outcome during the congressional certification. This happened in 2020 when a group of Republicans objected to results in Pennsylvania and Arizona – both won by Democrat Joe Biden. After supporters of Trump stormed the Capitol building in January 2021, protesting the official authorisation of votes, Congress updated the 1800s-era Electoral Count Act to make it harder to challenge the electoral college result.

    Following the 2020 election, certain electors in several swing states attempted to falsely declare Trump the winner. These included high-profile Republicans in Georgia, Michigan, Nevada, Arizona and Wisconsin. Trump’s campaign lawyer, Kenneth Chesebro, pleaded guilty in Georgia to his role in subverting the election.

    There are fears of a potential repeat of this scenario in 2024, should Trump lose again. Documentation returned to state election officials has revealed that over a dozen of these individuals are returning as potential electors this year.

    4. Criticism includes national security concerns and disinformation

    Some call the electorial college system undemocratic. Others point to the “faithless elector” issue, whereby the electors within a state cast their vote against the preference of their state’s popular vote.

    Small vote margins often secure all the votes in key swing states. For example, in 2016, Trump won Michigan by just 13,080 votes (0.3%), Wisconsin by 27,257 votes (1.0%), and Pennsylvania by 68,236 votes (1.2%). This allocated Trump 46 electoral votes as well as victory in the presidential election.

    This has led Brookings Institution fellows Elaine Kamarck and Darrell M. West to conclude that “false news purveyors don’t have to persuade 99% of American voters to be influential, but simply a tiny amount in [certain states] … A shift of 1% of the vote or less based on false narratives would have altered the outcome.”

    Harvard University professor of government Ryan Enos told me that foreign adversaries with an interest in the outcome of the US election are “aware of how decentralised the system is, and how chaos can be sowed by putting pressure on particular states”.

    5. Some people want to abolish it

    The process remains highly contentious and can result in a more fractious political climate. Consequently, there many who want to abolish it. West, a senior fellow of governance studies at Brookings, said the US should get rid of the electoral college. He called it a relic that was established “as an elite-based mechanism to basically choose the president because [America’s founding fathers] did not trust the general public”.

    However, Barnard College professor of political science Sheri Berman had a different view, saying that if you believe different states should have some guaranteed level of representation regardless of their population, then designing a system that gives this to them could be viewed as legitimate.

    Ultimately, despite its unusual elements, Christine Stenglein, a research analyst at Brookings, believes “the electoral college is part of the US constitution, and therefore not likely to change any time soon”.

    Richard Hargy does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. US election: how does the electoral college voting system work? – https://theconversation.com/us-election-how-does-the-electoral-college-voting-system-work-242283

    MIL OSI – Global Reports –

  • MIL-OSI Global: Social media and generative AI can have a large climate impact – here’s how to reduce yours

    Source: The Conversation – UK – By Domenico Vicinanza, Associate Professor of Intelligent Systems and Data Science, Anglia Ruskin University

    CREATIVE WONDER / shutterstock

    On a train or bus, or just standing in a queue, the most common sight these days is the muted glow of a screen, and the flickering thumbs of people lost in the endless scroll on their smartphones.

    Across the world, about 62% of people are active social media users. In some countries, that figure is over 90%. That adds up to a lot of usage: the average UK adult spends 3 hours and 41 minutes online each day, which translates to around 56 days a year, almost two whole months.

    Every time we read an article, see an advertisement, watch a photo or video, that content needs to be transferred from the social media platform’s servers to our device. The larger the file, the more data needs to be transferred. And high-resolution images or long videos involve lots of data.

    That data is distributed across many “server farms” (typically housed in a large warehouse with thousands of computers) around the world. If you load a video from Youtube you don’t connect to a single “Youtube data HQ” somewhere in California, but will instead gather data from many different servers often in different countries or continents.

    Moving data across the internet requires energy, sending signals through various electronic devices, including routers, servers, and our own mobile phone or laptop. Each of these devices consumes energy to function, while servers need to be kept cool. And this energy is often generated from fossil fuels.

    Low-energy LinkedIn tops the charts.
    Greenspector, CC BY-SA

    Tiktok is the least eco-friendly of the social media platforms, according to a study of internet users in France run by Greenspector in 2021 and then updated in 2023.

    Simply scrolling through the app exchanges a lot of data as Tiktok is constantly running videos, including many preloaded in the background that you may never even see.

    At the end side of the spectrum is LinkedIn. As a text-based platform, with fewer photos and videos, scrolling through LinkedIn uses much less data.

    Generative AI is energy-hungry

    Social media is of course not the only offender. Generative AI, with its ability to create text, images, music and even videos, is completely reshaping lots of creative processes. But though it is appealing, and sometimes a necessity, it comes with an environmental price tag.

    Unsurprisingly, the more powerful the AI, the more energy it consumes. Unlike when you stream video or load a large web page, with generative AI most energy is used at their end, while processing your query. If you ask ChatGPT to write you a novel, the process of writing involves lots of calculations, even if the resulting text itself doesn’t use much data.

    Your request is being processed…
    Caureem / shutterstock

    All this of course raises critical questions about the sustainability of generative AI and about our own carbon footprints. The AI companies themselves are reluctant to tell us exactly how much energy they use, but they apparently can’t stop their own chatbots having a stab. I asked ChatGPT-4 “how much energy was used to process this query?” and it said “0.002 to 0.02 kWh”, which it said “would be similar to keeping a 60-watt bulb on for about 2 minutes”.

    This roughly matches numbers offered by independent analysis and is tens of times more energy than required for a Google search. With millions of queries per day to ChatGPT alone, it all adds up to a huge amount of additional energy use. As generative AI continues to evolve, the demand for energy will only increase.

    What you can do

    While the environmental impact of these technologies raises valid concerns, it’s also essential to recognise their benefits. To take one example, AI-assisted tools like text-to-speech, voice recognition and auto-captioning have already made society more inclusive particularly for disabled or neurodiverse people. I don’t want to suggest we scrap social media or reject generative AI entirely.

    But there are things we can do to reduce the carbon footprint of our internet use, involving a combination of individual actions and systemic changes. Here are some strategies we can all adopt:

    First, limit the screen time. This is the most obvious one. Reducing the amount of time spent on social media can directly decrease energy consumption.

    Second, use energy-saving settings on your devices, such as lowering screen brightness, using a dark background, and enabling power-saving modes.

    Third, consider choosing less energy-demanding social media, using environmental ranking information to inform the decision. That means more text, and less video and generative AI.

    Fourth, whenever possible, use wifi over 4G or 5G mobile data: wifi generally consumes less energy.

    So, next time we find ourselves scrolling endless sequences of pictures and videos, our face lit by the blue glow of our screens, let’s just stop for a second and start implementing those simple strategies, so we can enjoy the benefits of being connected, while minimising the impact on our planet resources. Ultimately, the choice is ours.

    Domenico Vicinanza does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Social media and generative AI can have a large climate impact – here’s how to reduce yours – https://theconversation.com/social-media-and-generative-ai-can-have-a-large-climate-impact-heres-how-to-reduce-yours-240661

    MIL OSI – Global Reports –

  • MIL-OSI Global: Scott Moe won in Saskatchewan promising economic prosperity, but does that truly help citizens?

    Source: The Conversation – Canada – By Iryna Khovrenkov, Associate Professor, Johnson Shoyama Graduate School of Public Policy, University of Regina

    After winning the recent provincial election, the Saskatchewan Party’s Scott Moe promised a “strong economy, bright future.”

    But does a strong economy necessarily guarantee a bright future?

    Between 1998 and 2018, Saskatchewan’s gross domestic product (GDP) grew by 45 per cent, making it the fourth largest in Canada.

    Even after the impact of the COVID-19 pandemic, Saskatchewan led the nation in economic growth, registering a hike of six per cent.

    Over the same 20 years, however, Saskatchewan’s well-being increased by only 13 per cent, according to the Saskatchewan Index of Wellbeing.

    This lag in well-being has only amplified the struggles of the province’s citizens in terms of drug use, youth mental health, homelessness and hate crimes.

    Evidently, and despite its impressive magnitude, Saskatchewan’s economic growth alone does not fully reflect the province’s progress in terms of citizen well-being.

    What is well-being?

    Well-being is a multi-dimensional concept that goes beyond the level or rate of growth of GDP and can illuminate ongoing major policy challenges. GDP, on the other hand, is one-dimensional, developed prior to the Second World War and well before today’s significant policy concerns.

    As defined by the Saskatchewan Index of Wellbeing, it’s achieved when people are physically, emotionally and spiritually healthy; economically secure; have a strong sense of identity, belonging and place; and have the confidence and capacity to engage as citizens.

    Well-being encompasses many aspects that make our lives good — happiness and wellness at the personal level, strong social capital and belonging at the community level. These aspects can then form a strong foundation to tackle larger issues at the societal level such as social justice and environmental sustainability.

    International well-being initiatives

    Many countries, including Canada with its Canadian Index of Wellbeing, have not only developed well-being frameworks but many now routinely collect and publish well-being indicators.

    A handful of jurisdictions — like France, Italy and Sweden — have also begun including quality-of-life measures as benchmarks of their progress.

    New Zealand even formally budgets for well-being and released its first Wellbeing Budget in 2019.

    Regardless of geography or political structure, one common motivation for developing these well-being frameworks is a recognition that economic metrics such as GDP are insufficient to measure a country’s human and environmental progress.



    Read more:
    Australia’s wellbeing budget: what we can – and can’t – learn from NZ

    A well-being approach to policy

    For an effective path forward, citizen well-being should be a guiding principle for government leaders. Community Initiatives Fund and Heritage Saskatchewan, joint forces behind the Saskatchewan Index of Wellbeing, have long called on decision-makers to incorporate well-being into policy.

    The federal government has recently introduced the Quality-of-Life Framework as its first step towards integrating well-being into policymaking. But are these efforts reaching local governments, which carry a regulatory duty of fostering citizen well-being?

    I partnered with the Community Initiatives Fund and Heritage Saskatchewan to survey more than 25 per cent of rural and urban municipalities in Saskatchewan on what’s facilitated or hindered the adoption of well-being into policy in their communities.

    We learned that only 17 per cent of our participating municipalities adopted a well-being approach in their official community plans, although 55 per cent of them consider community well-being elements when developing policies and budgets.

    Additionally, 46 per cent are interested in adopting a well-being approach but have cited lack of financial and human resources, time, community and team support as key challenges in shifting to a well-being approach.

    Finally, we learned that arts, culture and sports amenities were identified as a pressing community need by 36 per cent of our respondents, compared to only six per cent referencing economic sustainability and growth.

    Our findings also support existing evidence that rural communities become stronger when they value well-being more than economic growth.

    The five elements of a well-being economy. (ICLEI Europe YouTube Channel)

    Municipal action required

    As the government level closest to the people, municipalities matter. Services provided by local authorities define citizens’ well-being and their quality of life. Also, local efforts have the potential to inspire province-wide change.

    With urban municipalities in Saskatchewan gearing up for their own elections on Nov. 13, it’s a good time to consider prioritizing community well-being.

    In the words of Jacinda Ardern, the former prime minister of New Zealand: “Growth alone does not lead to a great country …. so it’s time to focus on those things that do.”

    For real change to occur, well-being should lie at the heart of policymaking.

    The research project about well-being in municipal policy is a product of a partnership between Iryna Khovrenkov at the University of Regina, Tracey Mann at Community Initiatives Fund and Ingrid Cazakoff at Heritage Saskatchewan. The financial support of Social Sciences and Humanities Research Council Partnership Engage Grant number 892-2021-3028 is gratefully acknowledged.

    – ref. Scott Moe won in Saskatchewan promising economic prosperity, but does that truly help citizens? – https://theconversation.com/scott-moe-won-in-saskatchewan-promising-economic-prosperity-but-does-that-truly-help-citizens-242574

    MIL OSI – Global Reports –

  • MIL-OSI Global: New survey finds an alarming tolerance for attacks on the press in the US – particularly among white, Republican men

    Source: The Conversation – UK – By Julie Posetti, Global Director of Research, International Center for Journalists (ICFJ) and Professor of Journalism, City St George’s, University of London

    Press freedom is a pillar of American democracy. But political attacks on US-based journalists and news organisations pose an unprecedented threat to their safety and the integrity of information.

    Less than 48 hours before election day, Donald Trump told a rally of his supporters that he wouldn’t mind if someone shot the journalists in front of him.

    “I have this piece of glass here, but all we have really over here is the fake news. And to get me, somebody would have to shoot through the fake news. And I don’t mind that so much,” he said.

    A new survey from the International Center for Journalists (ICFJ) highlights a disturbing tolerance for political bullying of the press in the land of the First Amendment. The findings show that this is especially true among white, male, Republican voters.

    We commissioned this nationally representative survey of 1,020 US adults, which was fielded between June 24 and July 5 2024, to assess Americans’ attitudes to the press ahead of the election. We are publishing the results here for the first time.

    More than one-quarter (27%) of the Americans we polled said they had often seen or heard a journalist being threatened, harassed or abused online. And more than one-third (34%) said they thought it was appropriate for senior politicians and government officials to criticise journalists and news organisations.

    Tolerance for attacks on the press appears as politically polarised as American society. Nearly half (47%) of the Republicans surveyed approved of senior politicians critiquing the press, compared to less than one-quarter (22%) of Democrats.

    Our analysis also revealed divisions according to gender and ethnicity. While 37% of white-identifying respondents thought it was appropriate for political leaders to target journalists and news organisations, only 27% of people of colour did. There was also a nine-point difference along gender lines, with 39% of men approving of this conduct, compared to 30% of women.

    It appears intolerance towards the press has a face – a predominantly white, male and Republican-voting face.

    Press freedom fears

    This election campaign, Trump has repeated his blatantly false claim that journalists are “enemies of the people”. He has suggested that reporters who cross him should be jailed, and signalled that he would like to revoke broadcast licences of networks.

    Relevant, too, is the enabling environment for viral attacks on journalists created by unregulated social media companies which represent a clear threat to press freedom and the safety of journalists. Previous research produced by ICFJ for Unesco concluded that there was a causal relationship between online violence towards women journalists and physical attacks.

    Want more politics coverage from academic experts? Every week, we bring you informed analysis of developments in government and fact check the claims being made.

    Sign up for our weekly politics newsletter, delivered every Friday.

    While political actors may be the perpetrators of abuse targeting journalists, social media companies have facilitated their viral spread, heightening the risk to journalists.

    We’ve seen a potent example of this in the current campaign, when Haitian Times editor Macollvie J. Neel was “swatted” – meaning police were dispatched to her home after a fraudulent report of a murder at the address – during an episode of severely racist online violence.

    The trigger? Her reporting on Trump and JD Vance amplifying false claims that Haitian immigrants were eating their neighbours’ pets.

    Trajectory of Trump attacks

    Since the 2016 election, Trump has repeatedly discredited independent reporting on his campaign. He has weaponised the term “fake news” and accused the media of “rigging” elections.

    “The election is being rigged by corrupt media pushing completely false allegations and outright lies in an effort to elect [Hillary Clinton] president,” he said in 2016. With hindsight, such accusations foreshadowed his false claims of election fraud in 2020, and similar preemptive claims in 2024.

    His increasingly virulent attacks on journalists and news organisations are amplified by his supporters online and far-right media. Trump has effectively licensed attacks on American journalists through anti-press rhetoric and undermined respect for press freedom.

    In 2019, the Committee to Protect Journalists found that more than 11% of 5,400 tweets posted by Trump between the date of his 2016 candidacy and January 2019 “…insulted or criticised journalists and outlets, or condemned and denigrated the news media as a whole”.

    After being temporarily deplatformed from Twitter for breaching community standards, Trump launched Truth Social, where he continues to abuse his critics uninterrupted. But he recently rejoined the platform (now X), and held a series of campaign events with X owner and Trump backer Elon Musk.

    The failed insurrection on January 6 2021 rammed home the scale of the escalating threats facing American journalists. During the riots at the Capitol, at least 18 journalists were assaulted and reporting equipment valued at tens of thousands of dollars was destroyed.

    This election cycle, Reporters Without Borders logged 108 instances of Trump insulting, attacking or threatening the news media in public speeches or offline remarks over an eight-week period ending on October 24.

    Meanwhile, the Freedom of the Press Foundation has recorded 75 assaults on journalists since January 1 this year. That’s a 70% increase on the number of assaults captured by their press freedom tracker in 2023.

    A recent survey of hundreds of journalists undertaking safety training provided by the International Women’s Media Foundation found that 36% of respondents reported being threatened with or experiencing physical violence. One-third reported exposure to digital violence, and 28% reported legal threats or action against them.

    US journalists involved in ongoing ICFJ research have told us that they have felt particularly at risk covering Trump rallies and reporting on the election from communities hostile towards the press. Some are wearing protective flak jackets to cover domestic politics. Others have removed labels identifying their outlets from their reporting equipment to reduce the risk of being physically attacked.

    And yet, our survey reveals a distinct lack of public concern about the First Amendment implications of political leaders threatening, harassing, or abusing journalists. Nearly one-quarter (23%) of Americans surveyed did not regard political attacks on journalists or news organisations as a threat to press freedom. Among them, 38% identified as Republicans compared to just 9%* as Democrats.

    The anti-press playbook

    Trump’s anti-press playbook appeals to a global audience of authoritarians. Other political strongmen, from Brazil to Hungary and the Philippines, have adopted similar tactics of deploying disinformation to smear and threaten journalists and news outlets.

    Such an approach imperils journalists while undercutting trust in facts and critical independent journalism.

    History shows that fascism thrives when journalists can not safely and freely do the work of holding governments and political leaders to account. As our research findings show, the consequences are a society accepting lies and fiction as facts while turning a blind eye to attacks on the press.

    *The people identifying as Democrats in this sub-group are too few to make this a reliable representative estimate.

    Note: Nabeelah Shabbir (ICFJ Deputy Director of Research) and Kaylee Williams (ICFJ Research Associate) also contributed to this article and the research underpinning it. The survey was conducted by Langer Research Associates in English and Spanish. ICFJ researchers co-developed the survey and conducted the analysis.

    Julie Posetti receives research funding via ICFJ from the Scripps Howard Fund, Luminate, the UK’s Foreign Commonwealth and Development Office, the Gates Foundation and the US State Department.

    Waqas Ejaz works as Post-doc Research Fellow at University of Oxford as well as a Senior Research Associate at ICFJ.

    – ref. New survey finds an alarming tolerance for attacks on the press in the US – particularly among white, Republican men – https://theconversation.com/new-survey-finds-an-alarming-tolerance-for-attacks-on-the-press-in-the-us-particularly-among-white-republican-men-242719

    MIL OSI – Global Reports –

  • MIL-OSI Global: US election: what time do the polls close and when will the results be known? An expert explains

    Source: The Conversation – UK – By Richard Hargy, Visiting Research Fellow in International Studies, Queen’s University Belfast

    paseven / Shutterstock

    In November 2020, when Americans last went to the polls to elect a president, it took four days after voting closed for Joe Biden to be declared the winner.

    This was largely due to razor-thin margins in the crucial battleground states, which resulted in some recounts, as well as large numbers of mail-in ballots that had to be counted after election day. There was the added challenge of this entire process being conducted amid a global pandemic.

    Since then, some states have changed their election laws to speed up the election count. But while it may not take as long this time round, one thing we can be sure of is that a winner will not be known on election night itself.

    When do polls open and close?

    There is no set national time for voting to begin on the morning of November 5. Most states will begin voting at 7am in their local time, with others starting as early as 5am or as late as 10am. Voting will commence at a variety of times in some states, such as New Hampshire, Tennessee and Washington where this is decided by different counties or municipalities.

    Polls close at a range of times across the country, too. Voting will end as early as 6pm US eastern time (11pm GMT) in Indiana and Kentucky, while polls in Hawaii and Alaska, the western-most states, do not close until midnight US eastern time (5am GMT).

    An early indicator of which candidate is performing better will come between 7pm and 8pm eastern time (midnight and 1am GMT), when polls close in the key battleground states of Georgia and North Carolina. Both states are competitive for Kamala Harris and Donald Trump, and if the former is declared the victor in either, then the contest will pivot in her favour.

    The next key moment could occur between 8pm and 9pm eastern time (1am and 2am GMT), when voting ends across the so-called blue wall states of Michigan, Pennsylvania and Wisconsin. However, it is unlikely that a winner will be declared in any of these states straightaway. By 10pm eastern time (3am GMT), polls will have closed in two other critical swing states, Arizona and Nevada.

    When will votes be counted?

    There are several factors that could hinder results being announced in the hours immediately after voting ends. In Arizona, for example, state laws allow voters to drop their completed ballot papers off at the polling station on election day or the day prior – something that not all states do. However, these “late early” ballots cannot be processed until after voting ends.

    Pennsylvania is arguably the most prized swing state that both the Democratic and Republican campaigns are vying for. The state has 19 electoral votes, the most of any battleground state, so the victor will probably win the electoral college (the group of officials that elects the president based on the vote in each state) and thus also the presidency.



    Read more:
    US election: how does the electoral college voting system work?

    But Pennsylvania does not allow election workers to process mail ballots until 7am local time on election day, which could mean the result takes longer than 24 hours after polls close to be made known.

    That said, Alauna Safarpour, an assistant professor at Pennsylvania’s Gettysburg College, does not think the wait will be as long as it was four years ago. Writing for The Conversation on October 29, she said that it was “highly likely” that fewer Pennsylvanians will choose to vote by mail this time around.

    “A smaller proportion of voters opted to vote by mail in the 2022 midterm election than in the 2020 general election, and that trend is likely to continue in 2024”, she says.



    Read more:
    Why Pennsylvania’s election results will take time to count

    Two more crucial states, Michigan and Nevada, have also made changes to the election count since 2020. These states now permit ballot papers to be processed in advance of polling day. On the other hand, the ability of North Carolina to process votes ahead of the election has been made more difficult due to the damage recently caused by Hurricane Helene. This may lead to further delays.

    In Wisconsin, vote counting in two of the state’s biggest counties – Milwaukee and Dane – can also be particularly slow. Milwaukee and Dane counties are both significant urban centres with a combined population of around 1.5 million people. The margin in these counties will be significant to the result in Wisconsin and the presidential race overall.

    What might delay the results?

    There are concerns that certain domestic players could seek to frustrate and delay election results in the critical swing states. In January 2020, for example, a large number of Republicans in Congress objected to results in Pennsylvania and Arizona – states that were both won by Biden.

    And in seven swing states, people falsely claiming to be members of the electoral college attempted to declare Trump as the winner of their state. Their votes were sent to Congress to be counted alongside those of the true electors, with some Congress members arguing that the new slate of electoral votes cast doubts over the official result in certain states. In 2023, a Trump campaign lawyer, Kenneth Chesebro, pleaded guilty in Georgia to his role in subverting the election.

    Norman Eisen, Samara Angel and Clare Boone, who are all fellows at the Brookings Institution thinktank, have provided detailed analysis on how this scenario could be repeated in 2024. They point to nefarious strategies that could be utilised to confuse results by refusing to certify elections at the “county level”.

    For example, three election deniers – Rick Jeffares, Janice Johnston and Janelle King – hold the balance of power in Georgia’s state election board. They have jointly devised new rules that allow vote certification to be paused while investigations are launched into alleged “irregularities”.

    Eisen, Angel and Boone assert that while “these attempts will likely meet the same fate as prior efforts, they could still stoke uncertainty and distrust.” So, given the existence of these threats and the fact that polls show a dead heat, we will probably not know the election’s winner for at least a few days.

    Richard Hargy does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. US election: what time do the polls close and when will the results be known? An expert explains – https://theconversation.com/us-election-what-time-do-the-polls-close-and-when-will-the-results-be-known-an-expert-explains-242635

    MIL OSI – Global Reports –

  • MIL-OSI Global: How to Build a Truth Engine documentary makes for sober but crucial viewing in our age of disinformation

    Source: The Conversation – UK – By Clodagh Harrington, Lecturer in American Politics, University College Cork

    If the powerful documentary How to Build a Truth Engine had to be compressed into two thematic strands they might be “how the human mind works” and “how our brain can be manipulated by information”. Director Friedrich Moser’s film takes us on a two-hour voyage of explanation, covering issues from cyber-warfare to elections, COVID to conflict and more.

    Engaged citizens may find some of it they knew already. However, Moser offers a forensic and evidence-based delivery of how, why and the extent to which technology, events and the manipulation of both has had a powerful and deeply disconcerting impact on humans individually and collectively.

    As an expert in American politics, who recently wrote on the crisis of truth in the current US election, I found How to Build a Truth Engine makes for sober but crucial viewing.

    As our news cycles overflow with disinformation and fake news, this visually engaging film takes us on a calm, scientific tour of how we got to where we are – which is disinformation-central.

    Experts in neuroscience, engineering and even folklore explain the ways in which we think and process information. As humans, our brains rely on steady, clear streams of data. When these streams become polluted, our capacity to process and understand reality is challenged, and our vulnerability to false narratives increases.

    Clearly, lying for political purposes is as old as politics itself, but the capacity to disseminate these lies is now on a scale previously unimaginable, as the documentary shows.

    Unsurprisingly, Moser’s production gives much attention to the plight of traditional journalism. It also focuses on the challenges we face as consumers of news now that the process through which information is filtered and considered fit for dissemination has been dismantled to an alarming extent.

    The programme offers a stark reminder of the current state of conventional journalism, weakened by the migration of resources to online search engines where advertising and algorithms trump fact checking and truth telling.

    Among the topics covered is the 2022 Russian invasion of Bucha in Ukraine, in which multiple civilians were killed, with bound bodies left in the streets. At the time, the Kremlin rebuffed Ukrainian allegations of war crimes as a fake narrative and went so far as to state that the civilian massacre was a staged event.

    Western journalists, including New York Times staff, used satellite imagery to piece together events in the lead-up to the atrocity. As a result, they were able to verify what the Ukrainians had told them, but with the powerful addition of visual evidence, which transcended any “he said, she said” narrative.

    If truth is the first casualty of war, this important use of technology for such crucial purpose offers a ripple of accuracy in an ocean of falsehood.

    In highlighting the significance to the human brain of narrative and storytelling, the documentary offers chilling insights regarding the conspiracy theory path that led to the January 6 attack on the US Capitol in 2021. History is filled with tales of societies falling for false narratives, and the assault on the Capitol adheres to these criteria.

    From stereotyping to the creation of insider-outsider narratives (where certain groups are presented as relatable and others as negative and untrustworthy), it is only a small leap to negative assumptions about those deemed outsiders. In the case of January 6 Capitol attack in 2021, the documentary makes clear the groundwork was laid long before any violence took place.

    And so, we are reminded that the fiction that the 2020 election was stolen by Joe Biden was promoted, shared, amplified and repeated back (between Donald Trump, social media and sympathetic television networks) until the protesters were whipped into a frenzy. The result of this unchecked political propaganda was death and destruction.

    Those in Moser’s film offer a chilling reminder that as long as the lie of the “Big Steal”, as it is known now, remains alive as truth in the minds of many Americans, then it can happen again. If the relentless pursuit of accuracy is a core component of journalism, we can see that this pursuit is under constant siege as lies propagate at lightning speed and citizens choose their own truths.

    The documentary taps into the key question of our era: how do we know what we know? In an age of information warfare, truth is a valuable and vulnerable commodity. As humans, we have created technology so advanced that it is already outsmarting us.

    And truth is often diluted, polluted or drowned out completely in our daily communication torrents. This, combined with the nefarious agendas of bad actors means that individuals, communities and our way of life are under significant threat. The consolation, as presented by Moser’s work, may be that technology can also get us out of this predicament. That’s assuming that we want it to.


    Looking for something good? Cut through the noise with a carefully curated selection of the latest releases, live events and exhibitions, straight to your inbox every fortnight, on Fridays. Sign up here.

    Clodagh Harrington does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. How to Build a Truth Engine documentary makes for sober but crucial viewing in our age of disinformation – https://theconversation.com/how-to-build-a-truth-engine-documentary-makes-for-sober-but-crucial-viewing-in-our-age-of-disinformation-242554

    MIL OSI – Global Reports –

  • MIL-OSI Global: What poll watchers can − and can’t − do on Election Day

    Source: The Conversation – USA – By Mollie J. Cohen, Assistant Professor of Political Science, Purdue University

    Poll watchers keep an eye on voting in Georgia in November 2022. AP Photo/Ben Gray

    When most people think of their experience of voting in person, they may remember other voters at the polls, or the hardworking election officials checking people in and helping people submit their ballots. But in many elections, a third group is often present: poll watchers.

    Poll watchers are ordinary citizens who volunteer to observe elections on behalf of an organization. Many of them do so on behalf of a specific political party. Other volunteers are nonpartisan poll watchers; they observe the action at polling places on behalf of nonpartisan organizations, including domestic groups and international election watchdogs such as the Carter Center or the Organization for Security and Co-operation in Europe.

    The United States has not historically relied extensively on international election monitors, and they are prohibited in some states, such as Tennessee. Most often, when journalists and academics like us refer to poll watchers in the U.S., we mean partisan election observers.

    If all goes well on Election Day, poll watchers’ jobs will be tedious. They will simply watch voters performing the key acts of democracy: filing into the precinct, engaging with poll workers and casting ballots. Partisan poll watchers will also likely observe the tabulation of ballots and receive an official copy of the results in case they choose to conduct a simultaneous tally.

    What do poll watchers do?

    Poll watchers protect their organization’s interests at polling places. By observing as ballots are cast and counted, poll watchers can help ensure that only eligible voters participate and that blatant election rigging – like stuffing the ballot box with unauthorized ballots – does not occur.

    As observers independent of the government officials they are monitoring, poll watchers can add an extra layer of transparency and accountability to election proceedings and help to ensure that elections are free and fair.

    Poll watchers, like this one in Detroit in 2020, monitor all aspects of voting and tabulation.
    AP Photo/David Goldman

    However, poll watchers can also undermine the integrity of elections. For example, poll watchers may overzealously – and illegally – challenge a citizen’s eligibility to cast a ballot without cause. Or their presence may intimidate or pressure voters.

    In the 1980s, for example, the Republican Party in New Jersey recruited uniformed, off-duty police officers to watch the polls and posted signs offering a reward for information about people violating election laws. A lawsuit over that activity led to a nationwide court order barring the Republican National Committee from using poll watchers without clearance from a federal judge. The order was lifted in 2018.

    Historical records show that, since the early 1800s, poll watchers from both parties frequently challenged the eligibility of African Americans and likely immigrants, often leading to their removal from the voter rolls. In cases like these, poll watchers can undermine the core democratic principle of voters’ freedom to participate.

    It is also important to remember that many poll watchers are partisans – they work on behalf of their political parties. In fact, in recent years a central goal of the Republican Party has been recruiting and deploying poll watchers. Our research shows that in the current era of polarized partisan politics in the United States, the mere presence of partisan actors at polling locations can undermine voters’ trust in elections.

    What are the rules?

    While the history and partisan nature of election observation may raise concerns about voter intimidation, a variety of federal and state laws protect voters on Election Day.

    Poll watchers are subject to federal laws that protect voters from intimidation and interference. Many states also have additional regulations that govern what poll watchers can do when observing elections.

    For instance, some states require formal training. The state of Georgia, for example, requires all partisan poll watchers to complete training provided by their political party. Watchers in Ohio, on the other hand, must be registered voters but are not required to complete formal training.

    Another important difference between states is whether they allow poll watchers to directly interact with voters. In some states, such as Georgia, poll watchers may not speak to voters. In others, such as Ohio, poll watchers can speak with voters but can’t threaten voters for choosing a certain candidate or encourage them to vote for another.

    Poll workers, like these in New York City in 2020, often make sure poll watchers can see what’s happening.
    AP Photo/John Minchillo

    Challenging voters’ eligibility

    A final important difference between states rules about poll watchers is whether they can challenge the eligibility of a voter. Good-faith challenges can arise when a poll watcher has a strong reason to believe that a voter is not eligible to vote in the district where they are voting. Pennsylvania poll watchers, for example, are allowed to keep a list of eligible voters and could register a challenge if they believe someone not on that list is attempting to vote.

    Poll watchers who operate in bad faith may make challenges based on little or no evidence, with the intention of distracting poll workers, demoralizing voters and slowing voting, rather than ensuring the rules are followed correctly.

    Poll watchers generally raise challenges at the polling place directly with election administrators, who are local volunteers and employees. Voters whose eligibility is challenged may have to cast a provisional ballot and present additional proof of their identification and residence to election officials, either on Election Day or in a later legal proceeding. Importantly, many states have strong regulations that aim to protect voters against arbitrary challenges to their eligibility. Challengers in Florida, for example, must submit a formal written oath attesting to the accuracy of their challenge and are subject to prosecution if the challenge is determined to be “frivolous.”

    If a poll watcher suspects that something is amiss at a polling location while voters are casting ballots or while ballots are being tabulated, they can raise concerns with local election administrators or other election officials, such as local boards of elections. They may also pass the word up through the political party they are representing.

    Many issues are straightforward to address, and election workers respond immediately. More complex concerns – or allegations reported to party leaders by many poll watchers in different locations – may ultimately lead to legal action in the courts.

    Mollie J. Cohen has received funding from the Russell Sage Foundation.

    Geoffrey D. Sheagley receives funding from the Russell Sage Foundation.

    – ref. What poll watchers can − and can’t − do on Election Day – https://theconversation.com/what-poll-watchers-can-and-cant-do-on-election-day-241544

    MIL OSI – Global Reports –

  • MIL-OSI: WISDOMTREE MULTI ASSET ISSUER PUBLIC LIMITED COMPANY (a public company incorporated with limited liability in Ireland) WISDOMTREE GOLD 3X DAILY SHORT SECURITIES ISIN: IE00B6X4BP29

    Source: GlobeNewswire (MIL-OSI)

    4 November 2024

    LSE Code: 3GOS

    WISDOMTREE MULTI ASSET ISSUER PUBLIC LIMITED COMPANY
    (a public company incorporated with limited liability in Ireland)
    WISDOMTREE GOLD 3X DAILY SHORT SECURITIES ISIN: IE00B6X4BP29

    RESULTS OF MEETING OF THE ETP SECURITYHOLDERS

    WisdomTree Multi Asset Issuer Public Limited Company (the “Issuer”) wishes to announce that the Extraordinary Resolution regarding the reduction in the principal amount of the WisdomTree Gold 3x Daily Short Securities (the “Affected Securities”) from USD 2 to USD 0.2, as set out in a notice to holders of the Affected Securities dated 18 September 2024, was passed at an adjourned meeting of the holders of the Affected Securities held at 11am on 4 November 2024.

    As a result, the Deed of Amendment has been duly executed by the Issuer, the Manager and the Trustee to put the proposed amendments to the Trust Deed into effect from 4 November 2024.

    The MIL Network –

  • MIL-OSI: Coface SA: Disclosure of total number of voting rights and number of shares in the capital as at 31 October 2024

    Source: GlobeNewswire (MIL-OSI)

    COFACE SA: Disclosure of total number of voting rights and number of shares in the capital as at 31 October 2024

    Paris, 4thNovember 2024 – 17.45

    Total Number of
    Shares Capital    		 Theoretical Number of Voting Rights1 Number of Real
    Voting Rights2
    150,179,792 150,179,792 149,420,056

    (1)   including own shares
    (2)   excluding own shares

    Regulated documents posted by COFACE SA have been secured and authenticated with the blockchain technology by Wiztrust. You can check the authenticity on the website www.wiztrust.com.
     

    About Coface

    COFACE SA is a société anonyme (joint-stock corporation), with a Board of Directors (Conseil d’Administration) incorporated under the laws of France, and is governed by the provisions of the French Commercial Code. The Company is registered with the Nanterre Trade and Companies Register (Registre du Commerce et des Sociétés) under the number 432 413 599. The Company’s registered office is at 1 Place Costes et Bellonte, 92270 Bois Colombes, France.

    At the date of 31 October 2024, the Company’s share capital amounts to €300,359,584, divided into 150,179,792 shares, all of the same class, and all of which are fully paid up and subscribed.

    All regulated information is available on the company’s website (http://www.coface.com/Investors).

    Coface SA. is listed on Euronext Paris – Compartment A
    ISIN: FR0010667147 / Ticker: COFA

    Attachment

    The MIL Network –

  • MIL-OSI: WISeKey Subsidiary WISeSat.Space Prepares for a January 2025 Launch of Next-Generation Satellite, Supporting European Satellite Independence and IoT Connectivity

    Source: GlobeNewswire (MIL-OSI)

    WISeKey Subsidiary WISeSat.Space Prepares for a January 2025 Launch of Next-Generation Satellite, Supporting European Satellite Independence and IoT Connectivity

    Launch Timed with WISeKey’s Davos Roundtable on Space Technology

    Geneva, Switzerland – November 4, 2024: WISeKey International Holding Ltd. (“WISeKey”) (SIX: WIHN, NASDAQ: WKEY), a global leader in cybersecurity, digital identity, and Internet of Things (IoT) innovations operating as a holding company, today announces that its subsidiary, WISeSat.Space, is preparing for the mid-January 2025 launch of its next-generation satellite. This satellite, initially planned for Q4 2024, will now launch just days ahead of WISeKey’s January 22, 2025 event in Davos, which includes a roundtable focused on advancements in space technology.
    For more information about the Davos annual event visit: https://www.wisekey.com/davos25/howspacewillbethenextinternet/.

    This launch represents a significant development in WISeSat.Space’s mission to provide secure IoT connectivity, advance climate change monitoring capabilities, and support European satellite independence with cutting-edge technology.

    WISeSat.Space’s new generation of low-orbit satellites leverages compact picosatellites equipped with SEALSQ Corp. (“SEALSQ”) (NASDAQ: LAES) semiconductor technology and WISeKey’s renowned cryptographic keys. These integrated solutions enhance the security, performance, and resilience of satellite-based IoT systems, and support a diverse range of applications including environmental monitoring, disaster management, smart agriculture, and industrial IoT solutions. The satellites are specifically designed to support low-power sensors, enabling data collection in remote and off-grid areas. WISeSat.Space’s picosatellites, which are smaller and more cost-effective than traditional satellites, make global IoT connectivity feasible by reducing launch costs and optimizing data transmission. The satellite technology incorporates Quantum-Resistant cryptographic keys, and offers future-proof security against potential quantum computing threats, a step critical to the long-term security of global IoT ecosystems.

    An essential component of WISeSat.Space’s strategy is the creation of a European-based, neutral satellite constellation. By anchoring operations in Europe, WISeSat.Space is able to ensure data sovereignty and reduce reliance on non-European providers for critical IoT and environmental data. This independence not only strengthens data security but also allows for robust, unencumbered international cooperation. A neutral European constellation addresses global trust concerns, positioning Europe as a leader in secure and autonomous satellite technology. This approach further aligns with EU objectives for strategic autonomy and technological resilience, fostering economic growth and high-tech job creation within the region.

    The advanced satellite set for January 2025 launch includes key enhancements to bolster connectivity for diverse IoT applications. The satellites’ upgraded semiconductor technology, developed by SEALSQ, optimizes both processing and communication capabilities. This facilitates faster data relay and enhanced responsiveness, crucial for applications in real-time environmental monitoring, industrial automation, and smart agriculture. For climate change monitoring, the WISeSat constellation allows for the real-time tracking of environmental variables, enabling early detection and response to extreme weather events. The satellites contribute to disaster management through early warning systems, aiding vulnerable communities and ecosystems by providing timely, high-quality data. These capabilities not only support critical disaster preparedness but also allow policymakers to make informed decisions about climate resilience and adaptation.

    WISeSat.Space’s picosatellites employ a unique design focused on compactness and cost-effectiveness. Through the combination of low-orbit satellite networks and low-power, long-range sensors, WISeSat.Space provides a reliable network with low latency and high data accuracy—ideal for continuous tracking and monitoring across large, remote areas. These picosatellites are designed to operate with minimal power consumption, which is crucial for sustainable, long-term deployment in remote locations. Each satellite is embedded with WISeKey’s advanced cybersecurity protocols, ensuring that data is encrypted and secure from unauthorized access throughout its journey from sensor to end-user.

    The launch’s timing aligns with WISeKey’s annual event in Davos, where industry leaders, policymakers, and technologists will convene for a roundtable on space technology and its applications in IoT and climate monitoring. This roundtable will provide a platform to discuss how space-based systems can address global challenges and explore the role of satellite technology in building a sustainable and secure digital future. With the upcoming launch of this next-generation satellite, WISeSat.Space reaffirms its commitment to pioneering secure, scalable IoT solutions and advancing European autonomy in space technology. WISeKey looks forward to this critical addition to its constellation as it leverages space to enhance secure connectivity, climate resilience, and technological independence for the global community.

    About WISeSat.Space

    WISeSat AG is pioneering a transformative approach to IoT connectivity and climate change monitoring through its innovative satellite constellation. By providing cost-effective, secure, and global IoT connectivity, WISeSat is enabling a wide range of applications that support environmental monitoring, disaster management, and sustainable practices. The integration of satellite data with advanced climate models holds great promise for enhancing our understanding of climate change and developing effective strategies to combat its impacts. As the world continues to grapple with the challenges of climate change, initiatives like WISeSat’s IoT satellite constellation are essential for creating a more resilient and sustainable future.

    About WISeKEY:

    WISeKey International Holding Ltd (“WISeKey”, SIX: WIHN; Nasdaq: WKEY) is a global leader in cybersecurity, digital identity, and IoT solutions platform. It operates as a Swiss-based holding company through several operational subsidiaries, each dedicated to specific aspects of its technology portfolio. The subsidiaries include (i) SEALSQ Corp (Nasdaq: LAES), which focuses on semiconductors, PKI, and post-quantum technology products, (ii) WISeKey SA which specializes in RoT and PKI solutions for secure authentication and identification in IoT, Blockchain, and AI, (iii) WISeSat AG which focuses on space technology for secure satellite communication, specifically for IoT applications, and (iv) WISe.ART Corp which focuses on trusted blockchain NFTs and operates the WISe.ART marketplace for secure NFT transactions.

    Each subsidiary contributes to WISeKey’s mission of securing the internet while focusing on their respective areas of research and expertise. Their technologies seamlessly integrate into the comprehensive WISeKey platform. WISeKey secures digital identity ecosystems for individuals and objects using Blockchain, AI, and IoT technologies. With over 1.6 billion microchips deployed across various IoT sectors, WISeKey plays a vital role in securing the Internet of Everything. The company’s semiconductors generate valuable Big Data that, when analyzed with AI, enable predictive equipment failure prevention. Trusted by the OISTE/WISeKey cryptographic Root of Trust, WISeKey provides secure authentication and identification for IoT, Blockchain, and AI applications. The WISeKey Root of Trust ensures the integrity of online transactions between objects and people.
    For more information on WISeKey’s strategic direction and its subsidiary companies, please visit www.wisekey.com.

    Disclaimer
    This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

    This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”), the FinSa’s predecessor legislation or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.

    Press and Investor Contacts

    WISeKey International Holding Ltd
    Company Contact: Carlos Moreira
    Chairman & CEO
    Tel: +41 22 594 3000
    info@wisekey.com     		 WISeKey Investor Relations (US) 
    The Equity Group Inc.
    Lena Cati
    Tel: +1 212 836-9611 / lcati@equityny.com
    Katie Murphy
    Tel: +1 212 836-9612 / kmurphy@equityny.com

    The MIL Network –

  • MIL-OSI: Revenue as of September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    • €742.8 million in revenue over 9 months, down 3.5%, reflecting the group’s strategic orientations
      • Implementation of a strategy to prioritize margins over revenue growth
      • Continuing diversification into activities related to the energy transition, with strong growth of +28%
      • Accelerating growth in Germany, the group’s future third pillar, at +28%.
    • Third quarter: €225.4 million in revenue, down 10.1%, reflecting the continuation of 2nd quarter trends
      • Impact of selectivity measures implemented in Q2 in French and Spanish telecom sectors in France and Spain .
      • Temporarily reduced fiber activity in Belgium as negotiations continue between telco service providers looking to pool their investments
      • Sustained strong growth in Germany: +33%.
      • Strong growth in Energy activity, despite unfavorable seasonal effects in Q3: +26 %
    • 2024 full-year outlook confirmed   
      9 months Q3
    In millions of euros (unaudited data) 2024 2023 % change 2024 2023 % change
    Group 742.8 769.7         -3.5% 225.4 250.7         -10.1%
    Benelux 278.9 269.6         3.5% 82.1 89.6         -8.3%
    France 270.2 297.8         -9.3% 81.7 98.4         -16.9%
    Other Countries 193.8 202.4         -4.3% 61.6 62.7         -1.8%

    Gianbeppi Fortis, Chief Executive Officer of Solutions30, stated: “The evolution of Solutions30’s revenue since the beginning of the year reflects the strategic orientations we shared at our Capital Markets Day last September. We are prioritizing margins over revenue growth, with an increased selectivity in our mature markets. At the same time, we are continuing our expansion in Germany, which is set to become a profitable growth pillar for Solutions30, as well as our diversification into energy transition-related services, buoyed by favorable structural trends. The decrease in revenue in the third quarter was a continuation of trends seen in the second quarter, with the deepening impact of measures to reduce our exposure to certain insufficiently profitable contracts in France and Spain and a temporary slowdown in the fiber business in Belgium. In the current contrasted market environment, we are confident that our strategic choices are fully relevant.”

    Consolidated revenue

    In the first nine months of 2024, Solutions30’s consolidated revenue amounted to €742.8 million, down 3.5% from €769.7 million in the same period of 2023. This includes an organic contraction of -4.2%, a +0.3% impact from acquisitions, and a +0.4% favorable currency effect.

    This decrease reflects the group’s strategic orientations, as presented at the Capital Markets Day held on September 26, 2024. Namely, the prioritization of margins over revenue growth with the measures taken in Q2 to reduce exposure to certain telecoms contracts, notably in France and Spain, which no longer met the Group’s profitability requirements. Solutions30’s growth drivers, however, maintained strong momentum: Germany, which is proving to be its best-performing market in terms of growth, and energy-related services, which continue to develop successfully, confirming the relevance of the strategic diversification undertaken.

    Third-quarter consolidated revenue totaled €225.4 million, compared with €250.7 million in Q3 2023, representing a decline of -10.1% (-10.5% organically). This sharper decline than in Q2 (-4.5%) mainly reflects (i) the deepening impact of selectivity measures implemented in Q2 in the telecoms sector in France and Spain, and (ii) ongoing negotiations between Belgian telecom service providers, begun in Q2, with a view to pooling their fiber deployment investments.

    Benelux

    Revenue in Benelux for the first nine months of the year totaled €278.9 million, representing 38% of total revenue, up 3.5% (+3.4% organic growth). Following a year of exceptional growth (+77.2% in the first nine months of 2023), which set a particularly high comparison basis, business in the Benelux countries remains slowed down by ongoing negotiations between Belgian telecoms service providers to streamline the rollout of fiber nationwide. Although the Belgian market’s potential remains high, these negotiations are causing delays for Solutions30’s business. In Q4, these effects will be amplified due to the merger of two of the Group’s customers, Proximus and Fiberklaar, impacting the pace of the connection market.

    In the third quarter of 2024, Benelux revenue totaled €82.1 million, down 8.3% (-8.6% organic). Connectivity activity posted revenue of €61.3 million, down -15.3%. This decline reflects the full impact of delays in fiber roll-out in Belgium from the 2nd quarter onwards, due to the above-mentioned negotiations, as well as, to a lower extent, the impact of the Belgian communal and provincial elections, which was limited by efficient planning.

    The development of Energy activity continues, with growth accelerating to +23% in the third quarter of 2024 and revenue reaching €15.8 million. In September 2024, Solutions30 announced its acquisition of Xperal, a Netherlands-based photovoltaic project specialist (see press release dated September 23, 2024). This acquisition significantly enhances the group’s offering in the sector, providing an integrated range of energy services in the Benelux countries that cover smart meters, electric vehicle charging stations, low-voltage electricity grids, photovoltaic installation, and energy storage solutions. The acquisition of Xperal is fully in line with the Group’s strategy to become a leading energy services player in all the regions where it operates.

    Technology activity posted revenue of €5.0 million in the third quarter of 2024, up +16.1%.         

    France

    In France, revenue for the first nine months of the year was €270.2 million, or 36% of total revenue, down
    -9.3%. This change includes an organic contraction of -9.9% and a +0.6% positive impact from the acquisition of Elec-ENR, consolidated since July 2023.

    In the third quarter of 2024, revenue amounted to €81.7 million, a purely organic decline of -16.9%, driven by the sharp -35.3% decrease in Connectivity revenue to €45.8 million. This reflects the deepening impact of the selective measures implemented in the 2nd quarter, which led the Group to significantly reduce its exposure to certain contracts that no longer met its profitability standards. It also reflects a slowdown in the fiber roll-out market, which is set to continue in the quarters ahead.

    Revenue from Energy activity continued to grow strongly, rising by +42.5% in the third quarter to €18,6 million. Solutions30 continues to successfully diversify in this sector, which is buoyed by favorable structural trends, and is gradually establishing itself as a leading player. Growth, however, was less strong than in the second quarter (+56%), due to the seasonal nature of these services, which usually experience lower activity during the summer period, before tending to rebound in the fourth quarter.

    Technology activity’s revenue was €17.3 million, rising sharply by +19.8% and reflecting a temporary increase in business linked to the 2024 Paris Olympics. Drawing on its expertise in these fields, Solutions30 was on call at all Olympic sites to provide technical assistance for IT and payment systems.

    Other countries

    In other countries, the Group generated €193.8 million in revenue over the first nine months of the year, or 26% of total revenue, down -4.3%. This includes an organic decline of -5.8% and a positive currency effect of +1.5%, reflecting the appreciation of the zloty and the pound sterling against the euro during this period. In the third quarter of 2024, revenue was €61.6 million, down -1.8% (-3.0% organic) but with highly contrasting situations from one country to another.

    In Germany, Solutions30 is benefiting from exceptional market momentum, with revenue increasing +33.2% in the third quarter of 2024 to €21.8 million. Coaxial network activity remains strong, while fiber activities continue to ramp up. Solutions30 is now firmly established as a trusted partner for the six national telecom service providers.

    In Poland, growth remained solid at +24.2%, with revenue reaching €14.5 million in the third quarter.

    In Italy, revenue amounted to €12.8 million in the third quarter. Normal activity has resumed with more favorable economic conditions, after the Group voluntarily limited its call-outs with its main fiber customer from the second half of 2023. Solutions30 returned to slight growth of +0.8% in the third quarter, and will benefit from a favorable base effect in the fourth quarter.

    In Spain, revenue fell by -43.5% to €7.3 million, reflecting the full impact of measures taken in the second quarter to reduce the Group’s exposure to the mature fiber market. The Connectivity business is currently being restructured, while the Group refocuses its development on Energy and Technology. In the third quarter, it won a strategic contract with Atlante to install an initial set of 50 electric vehicle charging stations (see press release from September 30, 2024).

    Lastly, in the United Kingdom, revenue fell by -42.5% to €5.2 million, reflecting the continued refocusing of Connectivity activities on the fiber market. Solutions30 is also focusing on developing its Energy business, as demonstrated by the multi-year contract signed with Connected Kerb to develop its electric vehicle charging infrastructure network (see press release from September 24, 2024).

    2024 full-year outlook confirmed

    For the full year 2024, Solutions30 expects slightly lower revenue compared to 2023, along with improvement in the Group’s adjusted EBITDA margin, leading to an overall increase in adjusted EBITDA.

    2026 Roadmap

    At the Capital Markets Day held on September 26, 2024, Solutions30 shared its 2026 roadmap, with concrete action plans and objectives tailored to each of its markets.

    In the Benelux, the group is confident it will be able to capitalize on its leading market position and return to a profitable growth trajectory as early as 2025, whatever the outcome of the current negotiations with service providers. It is targeting an adjusted EBITDA margin above 10% by 2026.

    In France, Energy activity revenue is set to triple compared with 2023, reaching €150 million by 2026. In Connectivity activity, the Group is working to stabilize its business while applying strict contract selectivity. It is also positioning itself to seize future opportunities such as the forthcoming dismantling of the copper network. Adjusted EBITDA margin, benefiting from the global transformation plan launched in 2022, should exceed 10% by 2026.

    In Germany, Solutions30 is aiming for a first milestone in 2026, with revenue of between €150 and €200 million, and an adjusted EBITDA margin well above 10%. The country should then continue to grow faster than the rest of the Group, becoming one of its biggest contributors.

    In the rest of Europe, Solutions30 has adopted a differentiated approach, with the aim of maintaining profitable growth in Poland, continuing to improve performance in the United Kingdom, and restoring margins in Italy and Spain by 2026, or else envisaging strategic actions for its activities in these two countries.

    Webcast for investors and analysts
    Date: Monday, November 4, 2024
    6:30 PM (CET) – 5:30 PM (GMT)

    Speakers
    Gianbeppi Fortis, Chief Executive Officer
    Jonathan Crauwels, Chief Financial Officer
    Amaury Boilot, Group General Secretary

    Connection details
    Webcast in English: https://channel.royalcast.com/solutions30-en/#!/solutions30-en/20241104_1

    Upcoming events

    Gilbert Dupont Forum Valeurs Familiales  (Paris) – November 5, 2024

    CIC Forum (Virtual Day)  – November 21, 2024

    2024 Q4 Revenue  – January 29, 2025

    About Solutions30 SE

    Solutions30 provides consumers and businesses with access to the key technological advancements that are shaping our everyday lives, especially those driving the digital transformation and energy transition. With its network of more than 16,000 technicians, Solutions30 has completed over 65 million call-outs since its inception and led over 500 renewable energy projects with a combined maximum output surpassing 1600 MWp. Every day, Solutions30 is doing its part to build a more connected and sustainable world. Solutions30 has become an industry leader in Europe with operations in 10 countries: France, Italy, Germany, the Netherlands, Belgium, Luxembourg, Spain, Portugal, the United Kingdom, and Poland.
    The capital of Solutions30 SE consists of 107,127,984 shares, equal to the number of theoretical votes that can be exercised. Solutions30 SE is listed on the Euronext Paris exchange (ISIN FR0013379484- code S30).
    Indices: CAC Mid & Small | CAC Small | CAC Technology | Euro Stoxx Total Market Technology | Euronext Tech Growth.
    Visit our website for more information: www.solutions30.com.

    Contact

    Individual Shareholders:
    shareholders@solutions30.com – Tel: +33 (0)1 86 86 00 63

    Analysts/investors:
    investor.relations@solutions30.com

    Press – Image 7:
    Charlotte Le Barbier – Tel: +33 6 78 37 27 60 – clebarbier@image7.fr

    Attachment

    The MIL Network –

  • MIL-OSI: Serstech Secures 9.7 MSEK Orders from Chilean Partner Aerotech

    Source: GlobeNewswire (MIL-OSI)

    Serstech has today received two orders totaling 9.7 MSEK from its Chilean partner, Aerotech. The orders include the Serstech Arx mkII and ChemDash software, with delivery and invoicing scheduled for the fourth quarter of 2024.

    The final recipients of these orders are the Carabineros and the Investigations Police of Chile (PDI). PDI is the nation’s primary civilian police force specializing in criminal investigations, intelligence operations, and counterterrorism, with a particular focus on areas such as drug trafficking and organized crime.

    These orders represent the fourth and fifth in 2024 from Chilean law enforcement through Aerotech, underscoring the growing demand for Serstech’s solutions in the region.

    For further information, please contact:

    Stefan Sandor,                                                                              

    CEO, Serstech AB Phone: +46 739 606 067

    Email: ss@serstech.com

    or

    Thomas Pileby,

    Chairman of the Board, Serstech AB Phone: +46 702 072 643

    Email: tp@serstech.com

    or visit: www.serstech.com

    This is information that Serstech AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above at 18:50 CET on November 4, 2024.

    Certified advisor to Serstech is Svensk Kapitalmarknadsgranskning AB (SKMG).

    About Serstech

    Serstech delivers solutions for chemical identification and has customers around the world, mainly in the safety and security industry. Typical customers are customs, police authorities, security organizations and first responders. The solutions and technology are however not limited to security applications and potentially any industry using chemicals of some kind could be addressed by Serstech’s solution. Serstech’s head office is in Sweden and all production is done in Sweden.

    Serstech is traded at Nasdaq First North Growth Market and more information about the company can be found at www.serstech.com

    The MIL Network –

  • MIL-OSI: WisdomTree Foreign Exchange Limited Publication of Prospectus

    Source: GlobeNewswire (MIL-OSI)

    WisdomTree Foreign Exchange Limited
    LEI: 213800X2UDCFSIYXXR28
    4 November 2024

    WisdomTree Foreign Exchange Limited
    Publication of Prospectus

    The following prospectus has been approved by the Central Bank of Ireland and the Financial Conduct Authority:

    Prospectus for the issue of Collateralised Currency Securities by WisdomTree Foreign Exchange Limited.

    To view the full document, please paste the following URL into the address bar of your browser.

    https://www.wisdomtree.eu/en-gb/-/media/eu-media-files/key-documents/prospectus/etf-securities/prospectus—etfs-foreign-exchange-limited.pdf

    For further information please contact europesupport@wisdomtree.com

    The MIL Network –

  • MIL-OSI: Nokia Corporation: Repurchase of own shares on 04.11.2024

    Source: GlobeNewswire (MIL-OSI)

    Nokia Corporation
    Stock Exchange Release
    4 November 2024 at 22:30 EET

    Nokia Corporation: Repurchase of own shares on 04.11.2024

    Espoo, Finland – On 4 November 2024 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows:

    Trading venue (MIC Code) Number of shares Weighted average price / share, EUR*
    XHEL 1,657,264 4.35
    CEUX 300,000 4.35
    BATE – –
    AQEU – –
    TQEX – –
    Total 1,957,264 4.35

    * Rounded to two decimals

    On 25 January 2024, Nokia announced that its Board of Directors is initiating a share buyback program to return up to EUR 600 million of cash to shareholders in tranches over a period of two years. The first phase of the share buyback program started on 20 March 2024. On 19 July 2024, Nokia decided to accelerate the share buybacks by increasing the number of shares to be repurchased during the year 2024. The post-increase repurchases in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052 and under the authorization granted by Nokia’s Annual General Meeting on 3 April 2024 started on 22 July 2024 and end by 31 December 2024 with a maximum aggregate purchase price of EUR 600 million for all purchases during 2024.

    Total cost of transactions executed on 4 November 2024 was EUR 8,521,536. After the disclosed transactions, Nokia Corporation holds 182,796,988 treasury shares.

    Details of transactions are included as an appendix to this announcement.

    On behalf of Nokia Corporation

    BofA Securities Europe SA

    About Nokia
    At Nokia, we create technology that helps the world act together.

    As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.

    Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

    Inquiries:

    Nokia Communications
    Phone: +358 10 448 4900
    Email: press.services@nokia.com
    Maria Vaismaa, Global Head of External Communications

    Nokia Investor Relations
    Phone: +358 40 803 4080
    Email: investor.relations@nokia.com

    Attachment

    The MIL Network –

  • MIL-OSI: Viper Energy, Inc., a Subsidiary of Diamondback Energy, Inc., Reports Third Quarter 2024 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    MIDLAND, Texas, Nov. 04, 2024 (GLOBE NEWSWIRE) — Viper Energy, Inc., (NASDAQ:VNOM) (“Viper” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), today announced financial and operating results for the third quarter ended September 30, 2024.

    THIRD QUARTER HIGHLIGHTS

    • Q3 2024 average production of 26,978 bo/d (49,370 boe/d), an increase of 2.4% from Q2 2024
    • Q3 2024 consolidated net income (including non-controlling interest) of $109.0 million; net income attributable to Viper Energy, Inc. of $48.9 million, or $0.52 per common share
    • Q3 2024 cash available for distribution to Viper’s common shares (as defined and reconciled below) of $75.4 million, or $0.73 per Class A common share
    • Declared Q3 2024 base cash dividend of $0.30 per Class A common share; implies a 2.3% annualized yield based on the November 1, 2024, share closing price of $52.16
    • Q3 2024 variable cash dividend of $0.31 per Class A common share; total base-plus-variable dividend of $0.61 per Class A common share implies a 4.7% annualized yield based on the November 1, 2024, share closing price of $52.16
    • Total Q3 2024 return of capital of $62.4 million, or $0.61 per Class A common share, represents 83% of cash available for distribution
    • 330 total gross (6.8 net 100% royalty interest) horizontal wells turned to production on Viper’s acreage during Q3 2024 with an average lateral length of 11,866 feet
    • As previously announced, closed acquisition of certain mineral and royalty interest-owning subsidiaries of Tumbleweed-Q Royalty Partners, LLC and MC Tumbleweed Royalty, LLC on September 3, 2024; closed acquisition of subsidiaries of Tumbleweed Royalty IV, LLC on October 1, 2024 (the “TWR IV acquisition” and collectively with the other Tumbleweed acquisitions, the “Tumbleweed Acquisitions”)
    • Initiating average daily production guidance for Q4 2024 of 29,250 to 29,750 bo/d (52,500 to 53,000 boe/d)
    • Increasing full year 2024 average daily production guidance to 27,000 to 27,250 bo/d (48,750 to 49,250 boe/d)

    “The third quarter marked a continuation of Viper delivering on its differentiated strategy and value proposition, and was highlighted by both continued organic production growth on our legacy asset base and the closing of the Tumbleweed Acquisitions. As we prepare to head into 2025, we look forward to further delivering on our strategy of consolidating high quality mineral and royalty assets through a disciplined and focused approach,” stated Travis Stice, Chief Executive Officer of Viper.

    Mr. Stice continued, “Looking specifically at current operations, activity remains strong across our acreage position as represented by the substantial amount of work-in-progress and line-of-sight wells, and we continue to benefit from Diamondback’s large scale development of our high concentration royalty acreage. We expect our durable production profile, along with our best-in-class cost structure, to continue to highlight the advantaged nature of our business model as we can maintain our strong free cash flow conversion despite the volatility in commodity prices.”

    FINANCIAL UPDATE

    Viper’s third quarter 2024 average unhedged realized prices were $75.24 per barrel of oil, $0.13 per Mcf of natural gas and $19.89 per barrel of natural gas liquids, resulting in a total equivalent realized price of $45.83/boe.

    Viper’s third quarter 2024 average hedged realized prices were $74.27 per barrel of oil, $0.56 per Mcf of natural gas and $19.89 per barrel of natural gas liquids, resulting in a total equivalent realized price of $45.87/boe.

    During the third quarter of 2024, the Company recorded total operating income of $209.6 million and consolidated net income (including non-controlling interest) of $109.0 million.

    As of September 30, 2024, the Company had a cash balance of $168.6 million and total long-term debt outstanding (excluding debt issuance costs, discounts and premiums) of $830.4 million, resulting in net debt (as defined and reconciled below) of $661.7 million. Viper’s outstanding long-term debt as of September 30, 2024 consisted of $430.4 million in aggregate principal amount of its 5.375% Senior Notes due 2027, $400.0 million in aggregate principal amount of its 7.375% Senior Notes due 2031 and no borrowings on its revolving credit facility, leaving $850.0 million available for future borrowings and $1.0 billion of total liquidity.

    Giving effect to the closing of the TWR IV acquisition on October 1, 2024 and the funding of the cash consideration of $458.9 million (of which $43.1 million had previously been paid into escrow, and the remainder was funded at closing with net proceeds from the underwritten public equity offering of Class A common stock that was completed on September 13, 2024, cash on hand, and borrowings under the revolving credit facility), pro forma net debt as of October 1, 2024 was approximately $1.1 billion.

    THIRD QUARTER 2024 CASH DIVIDEND & CAPITAL RETURN PROGRAM

    Viper announced today that the Board of Directors (the “Board”) of Viper Energy, Inc., declared a base dividend of $0.30 per Class A common share for the third quarter of 2024 payable on November 21, 2024 to Class A common shareholders of record at the close of business on November 14, 2024.

    The Board also declared a variable cash dividend of $0.31 per Class A common share for the third quarter of 2024 payable on November 21, 2024 to Class A common shareholders of record at the close of business on November 14, 2024.

    OPERATIONS UPDATE

    During the third quarter of 2024, Viper estimates that 330 gross (6.8 net 100% royalty interest) horizontal wells with an average royalty interest of 2.1% were turned to production on its acreage position with an average lateral length of 11,866 feet. Of these 330 gross wells, Diamondback is the operator of 81 gross wells, with an average royalty interest of 5.1%, and the remaining 249 gross wells, with an average royalty interest of 1.1%, are operated by third parties.

    Viper’s footprint of mineral and royalty interests was 32,567 net royalty acres as of September 30, 2024. Giving effect to the closing of the TWR IV acquisition on October 1, 2024, Viper’s pro forma acreage position was approximately 35,634 net royalty acres, of which Diamondback operated approximately 19,227 net royalty acres.

    Our gross well information as of October 1, 2024 is as follows, after giving effect to the Tumbleweed Acquisitions and Diamondback’s completed merger with Endeavor Energy Resources, L.P.:

      Diamondback
    Operated    		   Third Party
    Operated    		   Total
    Horizontal wells turned to production(1):          
    Gross wells         81     249     330  
    Net 100% royalty interest wells         4.1     2.7     6.8  
    Average percent net royalty interest         5.1 %   1.1 %   2.1 %
               
    Horizontal producing well count:          
    Gross wells         2,755     7,969     10,724  
    Net 100% royalty interest wells         150.1     102.0     252.1  
    Average percent net royalty interest         5.4 %   1.3 %   2.4 %
               
    Horizontal active development well count:          
    Gross wells         179     624     803  
    Net 100% royalty interest wells         10.4     7.3     17.7  
    Average percent net royalty interest         5.8 %   1.2 %   2.2 %
               
    Line of sight wells:          
    Gross wells         266     859     1,125  
    Net 100% royalty interest wells         8.6     13.4     22.0  
    Average percent net royalty interest         3.2 %   1.6 %   2.0 %

    (1) Average lateral length of 11,866 feet.

    The 803 gross wells currently in the process of active development are those wells that have been spud and are expected to be turned to production within approximately the next six to eight months. Further in regard to the active development on Viper’s asset base, there are currently 60 gross rigs operating on Viper’s acreage, seven of which are operated by Diamondback. The 1,125 line-of-sight wells are those that are not currently in the process of active development, but for which Viper has reason to believe that they will be turned to production within approximately the next 15 to 18 months. The expected timing of these line-of-sight wells is based primarily on permitting by third party operators or Diamondback’s current expected completion schedule. Existing permits or active development of Viper’s royalty acreage does not ensure that those wells will be turned to production.

    GUIDANCE UPDATE

    Below is Viper’s updated guidance for the full year 2024, as well as production guidance for Q4 2024.

       
      Viper Energy, Inc.
       
    Q4 2024 Net Production – MBo/d 29.25 – 29.75
    Q4 2024 Net Production – MBoe/d 52.50 – 53.00
    Full Year 2024 Net Production – MBo/d 27.00 – 27.25
    Full Year 2024 Net Production – MBoe/d 48.75 – 49.25
       
    Share costs ($/boe)  
    Depletion $11.50 – $12.00
    Cash G&A $0.80 – $1.00
    Non-Cash Share-Based Compensation $0.10 – $0.20
    Interest Expense $4.00 – $4.25
       
    Production and Ad Valorem Taxes (% of Revenue) ~7%
    Cash Tax Rate (% of Pre-Tax Income Attributable to Viper Energy, Inc.)(1) 20% – 22%
    Q4 2024 Cash Taxes ($ – million)(2) $13.0 – $18.0

    (1)   Pre-tax income attributable to Viper Energy, Inc. is reconciled below.
    (2)   Attributable to Viper Energy, Inc.

    CONFERENCE CALL

    Viper will host a conference call and webcast for investors and analysts to discuss its results for the third quarter of 2024 on Tuesday, November 5, 2024 at 10:00 a.m. CT. Access to the live audio-only webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Viper’s website at www.viperenergy.com under the “Investor Relations” section of the site.

    About Viper Energy, Inc.

    Viper is a corporation formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin. For more information, please visit www.viperenergy.com.

    About Diamondback Energy, Inc.

    Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

    Forward-Looking Statements

    This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Viper’s: future performance; business strategy; future operations; estimates and projections of operating income, losses, costs and expenses, returns, cash flow, and financial position; production levels on properties in which Viper has mineral and royalty interests, developmental activity by other operators; reserve estimates and Viper’s ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the recently completed TWR IV acquisition and other acquisitions or divestitures); and plans and objectives (including Diamondback’s plans for developing Viper’s acreage and Viper’s cash dividend policy and common stock repurchase program) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Viper are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Viper believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond its control. Accordingly, forward-looking statements are not guarantees of Viper’s future performance and the actual outcomes could differ materially from what Viper expressed in its forward-looking statements.

    Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases, and any related company or government policies or actions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial sector; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production on Viper’s mineral and royalty acreage, or governmental orders, rules or regulations that impose production limits on such acreage; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change and the risks and other factors disclosed in Viper’s filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the Securities and Exchange Commission’s web site at http://www.sec.gov.

    In light of these factors, the events anticipated by Viper’s forward-looking statements may not occur at the time anticipated or at all. Moreover, the new risks emerge from time to time. Viper cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements made in this news release. All forward-looking statements speak only as of the date of this news release or, if earlier, as of the date they were made. Viper does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

    Viper Energy, Inc.
    Condensed Consolidated Balance Sheets
    (unaudited, in thousands, except share amounts)
           
      September 30,   December 31,
       2024     2023 
    Assets      
    Current assets:      
    Cash and cash equivalents         $ 168,649     $ 25,869  
    Royalty income receivable (net of allowance for credit losses)           108,857       108,681  
    Royalty income receivable—related party           35,997       3,329  
    Income tax receivable           —       813  
    Derivative instruments           2,795       358  
    Prepaid expenses and other current assets           3,882       4,467  
    Total current assets           320,180       143,517  
    Property:      
    Oil and natural gas interests, full cost method of accounting ($1,622,601 and $1,769,341 excluded from depletion at September 30, 2024 and December 31, 2023, respectively)           4,771,268       4,628,983  
    Land           5,688       5,688  
    Accumulated depletion and impairment           (1,016,173 )     (866,352 )
    Property, net           3,760,783       3,768,319  
    Funds held in escrow           43,050       —  
    Derivative instruments           2,727       92  
    Deferred income taxes (net of allowances)           74,617       56,656  
    Other assets           4,653       5,509  
    Total assets         $ 4,206,010     $ 3,974,093  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable         $ 26     $ 19  
    Accounts payable—related party           —       1,330  
    Accrued liabilities           41,465       27,021  
    Derivative instruments           901       2,961  
    Income taxes payable           1,816       1,925  
    Total current liabilities           44,208       33,256  
    Long-term debt, net           821,505       1,083,082  
    Derivative instruments           —       201  
    Other long-term liabilities           4,789       —  
    Total liabilities           870,502       1,116,539  
    Stockholders’ equity:      
    Class A Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 102,947,008 shares issued and outstanding as of September 30, 2024 and 86,144,273 shares issued and outstanding as of December 31, 2023           —       —  
    Class B Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 85,431,453 shares issued and outstanding as of September 30, 2024 and 90,709,946 shares issued and outstanding as of December 31, 2023           —       —  
    Additional paid-in capital           1,429,649       1,031,078  
    Retained earnings (accumulated deficit)           (28,691 )     (16,786 )
    Total Viper Energy, Inc. stockholders’ equity           1,400,958       1,014,292  
    Non-controlling interest           1,934,550       1,843,262  
    Total equity           3,335,508       2,857,554  
    Total liabilities and stockholders’ equity         $ 4,206,010     $ 3,974,093  
     
    Viper Energy, Inc.
    Condensed Consolidated Statements of Operations
    (unaudited, in thousands, except per share data)
                   
      Three Months Ended September 30,   Nine Months Ended September 30,
       2024     2023     2024     2023 
    Operating income:              
    Oil income         $ 186,750     $ 168,008     $ 558,203     $ 443,927  
    Natural gas income           823       8,893       8,763       22,974  
    Natural gas liquids income           20,585       18,713       61,745       47,995  
    Royalty income           208,158       195,614       628,711       514,896  
    Lease bonus income—related party           107       97,237       227       105,585  
    Lease bonus income           1,143       196       2,289       1,730  
    Other operating income           180       193       461       774  
    Total operating income           209,588       293,240       631,688       622,985  
    Costs and expenses:              
    Production and ad valorem taxes           15,113       12,286       44,720       37,794  
    Depletion           54,528       36,280       149,821       101,331  
    General and administrative expenses—related party           2,569       924       7,391       2,772  
    General and administrative expenses           2,046       956       6,712       3,880  
    Other operating (income) expense           (236 )     —       (3 )     —  
    Total costs and expenses           74,020       50,446       208,641       145,777  
    Income (loss) from operations           135,568       242,794       423,047       477,208  
    Other income (expense):              
    Interest expense, net           (16,739 )     (10,970 )     (54,736 )     (31,636 )
    Gain (loss) on derivative instruments, net           7,410       (2,988 )     5,264       (30,685 )
    Other income, net           —       256       —       258  
    Total other expense, net           (9,329 )     (13,702 )     (49,472 )     (62,063 )
    Income (loss) before income taxes           126,239       229,092       373,575       415,145  
    Provision for (benefit from) income taxes           17,194       21,879       42,729       39,735  
    Net income (loss)           109,045       207,213       330,846       375,410  
    Net income (loss) attributable to non-controlling interest           60,128       128,614       181,668       232,294  
    Net income (loss) attributable to Viper Energy, Inc.         $ 48,917     $ 78,599     $ 149,178     $ 143,116  
                   
    Net income (loss) attributable to common shares:              
    Basic         $ 0.52     $ 1.11     $ 1.64     $ 1.99  
    Diluted         $ 0.52     $ 1.11     $ 1.64     $ 1.99  
    Weighted average number of common shares outstanding:              
    Basic           93,695       70,925       90,895       71,803  
    Diluted           93,747       70,925       90,989       71,803  
                                   
    Viper Energy, Inc.
    Condensed Consolidated Statements of Cash Flows
    (unaudited, in thousands)
                   
      Three Months Ended September 30,   Nine Months Ended September 30,
      2024   2023   2024   2023
    Cash flows from operating activities:              
    Net income (loss)         $ 109,045     $ 207,213     $ 330,846     $ 375,410  
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:                      
    Provision for (benefit from) deferred income taxes           1,777       355       (505 )     887  
    Depletion           54,528       36,280       149,821       101,331  
    (Gain) loss on derivative instruments, net           (7,410 )     2,988       (5,264 )     30,685  
    Net cash receipts (payments) on derivatives           187       (3,807 )     (2,038 )     (10,019 )
    Other           1,390       823       4,470       2,045  
    Changes in operating assets and liabilities:              
    Royalty income receivable           26,163       (23,039 )     2,886       (22,147 )
    Royalty income receivable—related party           (1,015 )     (3,047 )     (32,667 )     (1,171 )
    Accounts payable and accrued liabilities           19,107       6,739       14,192       4,156  
    Accounts payable—related party           —       —       (1,330 )     (306 )
    Income taxes payable           (385 )     11,738       (109 )     12,411  
    Other           (413 )     3,485       1,398       (885 )
    Net cash provided by (used in) operating activities           202,974       239,728       461,700       492,397  
    Cash flows from investing activities:              
    Acquisitions of oil and natural gas interests—related party           —       —       —       (75,073 )
    Acquisitions of oil and natural gas interests           (241,877 )     (51,101 )     (271,052 )     (98,510 )
    Proceeds from sale of oil and natural gas interests           (2,967 )     (1,191 )     87,674       (3,166 )
    Net cash provided by (used in) investing activities           (244,844 )     (52,292 )     (183,378 )     (176,749 )
    Cash flows from financing activities:              
    Proceeds from borrowings under credit facility           375,000       69,000       470,000       260,000  
    Repayment on credit facility           (552,000 )     (43,000 )     (733,000 )     (162,000 )
    Net proceeds from public offering           475,904       —       475,904       —  
    Repurchased shares/units under buyback program           —       (9,650 )     —       (67,181 )
    Dividends/distributions to stockholders           (58,649 )     (25,300 )     (156,553 )     (84,181 )
    Dividends/distributions to Diamondback            (64,947 )     (40,200 )     (191,830 )     (127,929 )
    Other           —       (4,551 )     (63 )     (5,722 )
    Net cash provided by (used in) financing activities           175,308       (53,701 )     (135,542 )     (187,013 )
    Net increase (decrease) in cash and cash equivalents           133,438       133,735       142,780       128,635  
    Cash, cash equivalents and restricted cash at beginning of period           35,211       13,079       25,869       18,179  
    Cash, cash equivalents and restricted cash at end of period         $ 168,649     $ 146,814     $ 168,649     $ 146,814  
     
    Viper Energy, Inc.
    Selected Operating Data
    (unaudited)
               
      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
    Production Data:          
    Oil (MBbls)           2,482     2,398     2,037
    Natural gas (MMcf)           6,150     5,631     4,900
    Natural gas liquids (MBbls)           1,035     983     867
    Combined volumes (MBoe)(1)           4,542     4,320     3,721
               
    Average daily oil volumes (bo/d)           26,978     26,352     22,141
    Average daily combined volumes (boe/d)           49,370     47,473     40,446
               
    Average sales prices:          
    Oil ($/Bbl)         $ 75.24   $ 81.04   $ 82.48
    Natural gas ($/Mcf)         $ 0.13   $ 0.20   $ 1.81
    Natural gas liquids ($/Bbl)         $ 19.89   $ 20.35   $ 21.58
    Combined ($/boe)(2)         $ 45.83   $ 49.88   $ 52.57
               
    Oil, hedged ($/Bbl)(3)         $ 74.27   $ 80.24   $ 81.44
    Natural gas, hedged ($/Mcf)(3)         $ 0.56   $ 0.64   $ 1.47
    Natural gas liquids ($/Bbl)(3)         $ 19.89   $ 20.35   $ 21.58
    Combined price, hedged ($/boe)(3)         $ 45.87   $ 50.00   $ 51.55
               
    Average Costs ($/boe):          
    Production and ad valorem taxes         $ 3.33   $ 3.52   $ 3.30
    General and administrative – cash component           0.83     0.84     0.41
    Total operating expense – cash         $ 4.16   $ 4.36   $ 3.71
               
    General and administrative – non-cash stock compensation expense         $ 0.19   $ 0.19   $ 0.10
    Interest expense, net         $ 3.69   $ 4.32   $ 2.95
    Depletion         $ 12.01   $ 11.19   $ 9.75

    (1)   Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.
    (2)   Realized price net of all deducts for gathering, transportation and processing.
    (3)   Hedged prices reflect the impact of cash settlements of our matured commodity derivative transactions on our average sales prices.

    NON-GAAP FINANCIAL MEASURES

    Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Viper defines Adjusted EBITDA as net income (loss) attributable to Viper Energy, Inc. plus net income (loss) attributable to non-controlling interest (“net income (loss)”) before interest expense, net, non-cash share-based compensation expense, depletion, non-cash (gain) loss on derivative instruments, (gain) loss on extinguishment of debt, if any, other non-cash operating expenses, other non-recurring expenses and provision for (benefit from) income taxes. Adjusted EBITDA is not a measure of net income as determined by United States’ generally accepted accounting principles (“GAAP”). Management believes Adjusted EBITDA is useful because it allows them to more effectively evaluate Viper’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income, royalty income, cash flow from operating activities or any other measure of financial performance or liquidity presented as determined in accordance with GAAP. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA.

    Viper defines cash available for distribution to Viper Energy, Inc. shareholders generally as an amount equal to its Adjusted EBITDA for the applicable quarter less cash needed for income taxes payable for the current period, debt service, contractual obligations, fixed charges and reserves for future operating or capital needs that the Board may deem appropriate, lease bonus income, net of tax, distribution equivalent rights payments, preferred dividends, and an adjustment for changes in ownership interests that occurred subsequent to the quarter, if any. Management believes cash available for distribution is useful because it allows them to more effectively evaluate Viper’s operating performance excluding the impact of non-cash financial items and short-term changes in working capital. Viper’s computations of Adjusted EBITDA and cash available for distribution may not be comparable to other similarly titled measures of other companies or to such measure in its credit facility or any of its other contracts. Viper further defines cash available for variable dividends as at least 75 percent of cash available for distribution less base dividends declared and repurchased shares as part of its share buyback program for the applicable quarter.

    The following tables present a reconciliation of the GAAP financial measure of net income (loss) to the non-GAAP financial measures of Adjusted EBITDA, cash available for distribution and cash available for variable dividends:

    Viper Energy, Inc.
    (unaudited, in thousands, except per share data)
       
      Three Months Ended
    September 30, 2024
    Net income (loss) attributable to Viper Energy, Inc.         $ 48,917  
    Net income (loss) attributable to non-controlling interest           60,128  
    Net income (loss)           109,045  
    Interest expense, net           16,739  
    Non-cash share-based compensation expense           845  
    Depletion           54,528  
    Non-cash (gain) loss on derivative instruments           (7,223 )
    Other non-cash operating expenses           (236 )
    Other non-recurring expenses           92  
    Provision for (benefit from) income taxes           17,194  
    Consolidated Adjusted EBITDA           190,984  
    Less: Adjusted EBITDA attributable to non-controlling interest           86,613  
    Adjusted EBITDA attributable to Viper Energy, Inc.         $ 104,371  
       
    Adjustments to reconcile Adjusted EBITDA to cash available for distribution:  
    Income taxes payable for the current period         $ (15,416 )
    Debt service, contractual obligations, fixed charges and reserves           (8,922 )
    Lease bonus income, net of tax           (479 )
    Distribution equivalent rights payments           (123 )
    Preferred distributions                   (20 )
    Effect of subsequent ownership changes                   (3,963 )
    Cash available for distribution to Viper Energy, Inc. shareholders         $ 75,448  
      Three Months Ended September 30, 2024
      Amounts   Amounts Per
    Common Share
    Reconciliation to cash available for variable dividends:      
    Cash available for distribution to Viper Energy, Inc. shareholders         $ 75,448   $ 0.73
           
    Return of Capital          $ 62,375   $ 0.61
    Less:      
    Base dividend           30,884     0.30
    Cash available for variable dividends         $ 31,491   $ 0.31
           
    Total approved base and variable dividend per share             $ 0.61
           
    Class A common stock outstanding               102,947

    The following table presents a reconciliation of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of pre-tax income attributable to Viper Energy, Inc. Management believes this measure is useful to investors given it provides the basis for income taxes payable by Viper Energy, Inc, which is an adjustment to reconcile Adjusted EBITDA to cash available for distribution to holders of Viper Energy, Inc. Class A common stock.

    Viper Energy, Inc.
    Pre-tax income attributable to Viper Energy, Inc.
    (unaudited, in thousands)
       
      Three Months Ended
    September 30, 2024
     
    Income (loss) before income taxes         $ 126,239  
    Less: Net income (loss) attributable to non-controlling interest           60,128  
    Pre-tax income attributable to Viper Energy, Inc.         $ 66,111  
       
    Income taxes payable for the current period         $ 15,416  
    Effective cash tax rate attributable to Viper Energy, Inc.           23.3 %

    Adjusted net income (loss) is a non-GAAP financial measure equal to net income (loss) attributable to Viper Energy, Inc. plus net income (loss) attributable to non-controlling interest adjusted for non-cash (gain) loss on derivative instruments, net, (gain) loss on extinguishment of debt, if any, other non-cash operating expenses, other non-recurring expenses and related income tax adjustments. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. Management believes adjusted net income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors.

    The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to Viper Energy, Inc. to the non-GAAP financial measure of adjusted net income (loss):

    Viper Energy, Inc.
    Adjusted Net Income (Loss)
    (unaudited, in thousands, except per share data)
       
      Three Months Ended September 30, 2024
      Amounts   Amounts Per
    Diluted Share
    Net income (loss) attributable to Viper Energy, Inc. (1)         $ 48,917     $ 0.52  
    Net income (loss) attributable to non-controlling interest           60,128       0.64  
    Net income (loss)(1)            109,045       1.16  
    Non-cash (gain) loss on derivative instruments, net           (7,223 )     (0.08 )
    Other non-cash operating expenses           (236 )     —  
    Other non-recurring expenses           92       —  
    Adjusted income excluding above items(1)            101,678       1.08  
    Income tax adjustment for above items           1,003       0.02  
    Adjusted net income (loss)(1)            102,681       1.10  
    Less: Adjusted net income (loss) attributed to non-controlling interests           57,059       0.61  
    Adjusted net income (loss) attributable to Viper Energy, Inc. (1)          $ 45,622     $ 0.49  
           
    Weighted average Class A common shares outstanding:      
    Basic           93,695  
    Diluted           93,747  

    (1) The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of Class A common shares and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to Viper Energy, Inc., (ii) less the reallocation of $0.1 million in earnings attributable to participating securities, (iii) divided by diluted weighted average Class A common shares outstanding.

    RECONCILIATION OF LONG-TERM DEBT TO NET DEBT

    The Company defines the non-GAAP measure of net debt as debt (excluding debt issuance costs, discounts and premiums) less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company’s leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt.

        September 30, 2024   Net Q3
    Principal
    Borrowings/
    (Repayments)    		   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
        (in thousands)
    Total long-term debt(1)   $ 830,350     $ (177,000 )   $ 1,007,350     $ 1,103,350     $ 1,093,350     $ 680,350  
    Cash and cash equivalents     (168,649 )         (35,211 )     (20,005 )     (25,869 )     (146,814 )
    Net debt   $ 661,701         $ 972,139     $ 1,083,345     $ 1,067,481     $ 533,536  

    (1) Excludes debt issuance costs, discounts & premiums.

    Derivatives

    As of the filing date, the Company had the following outstanding derivative contracts. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent. When aggregating multiple contracts, the weighted average contract price is disclosed.

      Crude Oil (Bbls/day, $/Bbl)
      Q4 2024   Q1 2025   Q2 2025   Q3 2025   Q4 2025
    Deferred Premium Puts – WTI (Cushing)   16,000       20,000       20,000       —     —
    Strike $ 55.00     $ 55.00     $ 55.00     $ —   $ —
    Premium $ (1.70 )   $ (1.62 )   $ (1.61 )   $ —   $ —
      Crude Oil (Bbls/day, $/Bbl)
      Q4 2024   Q1 2025   Q2 2025   Q3 2025   Q4 2025
    Costless Collars – WTI (Cushing)   4,000     —     —     —     —
    Floor $ 55.00   $ —   $ —   $ —   $ —
    Ceiling $ 93.66   $ —   $ —   $ —   $ —
      Natural Gas (Mmbtu/day, $/Mmbtu)
      Q4 2024   Q1 2025   Q2 2025   Q3 2025   Q4 2025
    Costless Collars – Henry Hub   —     60,000     60,000     60,000     60,000
    Floor $ —   $ 2.50   $ 2.50   $ 2.50   $ 2.50
    Ceiling $ —   $ 4.93   $ 4.93   $ 4.93   $ 4.93
      Natural Gas (Mmbtu/day, $/Mmbtu)
      Q4 2024   Q1 2025   Q2 2025   Q3 2025   Q4 2025
    Natural Gas Basis Swaps – Waha Hub   30,000       60,000       60,000       60,000       60,000  
    Swap Price $ (1.20 )   $ (0.80 )   $ (0.80 )   $ (0.80 )   $ (0.80 )

    Investor Contact:

    Austen Gilfillian
    +1 432.221.7420
    agilfillian@viperenergy.com 

    Source: Viper Energy, Inc.; Diamondback Energy, Inc.

    The MIL Network –

  • MIL-OSI: Diamondback Energy, Inc. Announces Third Quarter 2024 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    MIDLAND, Texas, Nov. 04, 2024 (GLOBE NEWSWIRE) — Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced financial and operating results for the third quarter ended September 30, 2024.

    THIRD QUARTER 2024 HIGHLIGHTS

    • As previously announced, closed merger with Endeavor Energy Resources, L.P. (“Endeavor”) on September 10, 2024
    • Average production of 321.1 MBO/d (571.1 MBOE/d)
    • Net cash provided by operating activities of $1.2 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $1.4 billion
    • Cash capital expenditures of $688 million
    • Free Cash Flow (as defined and reconciled below) of $708 million; Adjusted Free Cash Flow (as defined and reconciled below) of $1.0 billion
    • Declared Q3 2024 base cash dividend of $0.90 per share payable on November 21, 2024; implies a 2.0% annualized yield based on November 1, 2024 closing share price of $175.81
    • Repurchased 2,919,763 shares of common stock in Q3 2024 for $515 million, excluding excise tax (at a weighted average price of $176.40 per share); repurchased 1,029,191 shares of common stock to date in Q4 2024 for $185 million, excluding excise tax (at a weighted average price of $180.13 per share)
    • Total Q3 2024 return of capital of $780 million; represents ~78% of Adjusted Free Cash Flow (as defined and reconciled below) from stock repurchases and the declared Q3 2024 base dividend
    • As previously announced, Board approved a $2.0 billion increase to share repurchase authorization to $6.0 billion from $4.0 billion previously

    TRP ENERGY (“TRP”) TRADE

    • On November 3rd, Diamondback and TRP entered into a definitive agreement under which Diamondback will trade certain Delaware Basin assets and pay approximately $238 million in cash to TRP in exchange for TRP’s Midland Basin assets
    • TRP’s Midland Basin assets are made up of ~15,000 net acres across Upton and Reagan counties and consist of 55 remaining undeveloped operated locations, the majority of which immediately compete for capital
    • The asset also includes 18 Drilled Uncompleted Wells (“DUCs”) which provide for additional capital allocation flexibility
    • The trade is expected to be accretive to both Cash Flow and Free Cash Flow per share and enhances Diamondback’s near-term oil production profile
    • Expected to close in December 2024, subject to customary regulatory approvals and closing conditions
    • Jefferies LLC is serving as financial advisor to Diamondback. Kirkland & Ellis LLP is serving as legal advisor to Diamondback. J.P. Morgan Securities LLC, Moelis & Company and RBC Capital Markets are acting as financial advisors to TRP. Clifford Chance US LLP is serving as legal advisor to TRP.

    OPERATIONS UPDATE

    The tables below provide a summary of operating activity for the third quarter of 2024.

      Total Activity (Gross Operated):        
        Number of Wells
    Drilled    		   Number of Wells
    Completed    		  
      Midland Basin 71   87  
      Delaware Basin 5   8  
      Total 76   95  
      Total Activity (Net Operated):        
        Number of Wells
    Drilled    (1)    		   Number of Wells
    Completed    (1)    		  
      Midland Basin 67   95  
      Delaware Basin 4   7  
      Total 71   102  
      (1) Includes two additional net wells drilled and nine additional net wells completed, respectively, from interests acquired in the Endeavor Acquisition during the first six months of 2024.  
               

    During the third quarter of 2024, Diamondback drilled 71 gross wells in the Midland Basin and five gross wells in the Delaware Basin. The Company turned 87 operated wells to production in the Midland Basin and eight gross wells in the Delaware Basin, with an average lateral length of 12,238 feet. Operated completions during the third quarter consisted of 22 Wolfcamp A wells, 21 Lower Spraberry wells, 15 Jo Mill wells, 14 Wolfcamp B wells, 12 Middle Spraberry wells, four Dean wells, four Third Bone Spring wells and three Upper Spraberry wells.

    For the first nine months of 2024, Diamondback drilled 211 gross wells in the Midland Basin and 24 gross wells in the Delaware Basin. The Company turned 267 operated wells to production in the Midland Basin and 15 operated wells to production in the Delaware Basin. The average lateral length for wells completed during the first nine months of 2024 was 11,645 feet, and consisted of 72 Lower Spraberry wells, 61 Wolfcamp A wells, 45 Wolfcamp B wells, 40 Jo Mill wells, 34 Middle Spraberry wells, nine Wolfcamp D wells, nine Dean wells, six Upper Spraberry wells, four Third Bone Spring wells, one Second Bone Spring well and one Barnett well.

    FINANCIAL UPDATE

    Diamondback’s third quarter 2024 net income was $659 million, or $3.19 per diluted share. Adjusted net income (as defined and reconciled below) for the third quarter was $698 million, or $3.38 per diluted share.

    Third quarter 2024 net cash provided by operating activities was $1.2 billion. Through the first nine months of 2024, Diamondback’s net cash provided by operating activities was $4.1 billion.

    During the third quarter of 2024, Diamondback spent $633 million on operated and non-operated drilling and completions, $52 million on infrastructure and environmental and $3 million on midstream, for total cash capital expenditures of $688 million. Through the first nine months of 2024, Diamondback spent $1.8 billion on operated and non-operated drilling and completions, $128 million on infrastructure and environmental and $8 million on midstream, for total cash capital expenditures of $1.9 billion.

    Third quarter 2024 Consolidated Adjusted EBITDA (as defined and reconciled below) was $1.8 billion. Adjusted EBITDA net of non-controlling interest (as defined and reconciled below) for the third quarter was $1.7 billion.

    Diamondback’s third quarter 2024 Free Cash Flow (as defined and reconciled below) was $708 million. Adjusted Free Cash Flow (as reconciled and defined below) for the third quarter was $1.0 billion. Through September 30, 2024, Diamondback’s Free Cash Flow was $2.3 billion, with $2.7 billion of Adjusted Free Cash Flow over the same period.

    Third quarter 2024 average unhedged realized prices were $73.13 per barrel of oil, $(0.26) per Mcf of natural gas and $17.70 per barrel of natural gas liquids (“NGLs”), resulting in a total equivalent unhedged realized price of $44.80 per BOE.

    Diamondback’s cash operating costs for the third quarter of 2024 were $11.49 per BOE, including lease operating expenses (“LOE”) of $6.01 per BOE, cash general and administrative (“G&A”) expenses of $0.63 per BOE, production and ad valorem taxes of $2.91 per BOE and gathering, processing and transportation expenses of $1.94 per BOE.

    As of September 30, 2024, Diamondback had $201 million in standalone cash and $115 million in borrowings outstanding under its revolving credit facility, with approximately $2.4 billion available for future borrowings under the facility and approximately $2.6 billion of total liquidity. As of September 30, 2024, the Company had consolidated total debt of $13.1 billion and consolidated net debt (as defined and reconciled below) of $12.7 billion, up from consolidated total debt of $12.2 billion and up from consolidated net debt of $5.3 billion as of June 30, 2024. Effective in September 2024, the Company’s borrowing base and elected commitment was increased to $2.5 billion from $1.6 billion previously.

    DIVIDEND DECLARATIONS

    Diamondback announced today that the Company’s Board of Directors declared a base cash dividend of $0.90 per common share for the third quarter of 2024 payable on November 21, 2024 to stockholders of record at the close of business on November 14, 2024.

    Future base and variable dividends remain subject to review and approval at the discretion of the Company’s Board of Directors.

    COMMON STOCK REPURCHASE PROGRAM

    During the third quarter of 2024, Diamondback repurchased ~2.9 million shares of common stock at an average share price of $176.40 for a total cost of approximately $515 million, excluding excise tax. To date, Diamondback has repurchased ~23.3 million shares of common stock at an average share price of $133.48 for a total cost of approximately $3.1 billion and has approximately $2.9 billion remaining on its current share buyback authorization. Subject to factors discussed below, Diamondback intends to continue to purchase common stock under the common stock repurchase program opportunistically with cash on hand, free cash flow from operations and proceeds from potential liquidity events such as the sale of assets. This repurchase program has no time limit and may be suspended from time to time, modified, extended or discontinued by the Board at any time. Purchases under the repurchase program may be made from time to time in privately negotiated transactions, or in open market transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and will be subject to market conditions, applicable regulatory and legal requirements and other factors. Any common stock purchased as part of this program will be retired.

    UPDATED 2024 GUIDANCE

    Below is Diamondback’s guidance for the full year 2024, which includes fourth quarter production, unit costs and capital guidance. The Company’s production and capital guidance for the full year 2024 has been updated to give effect to the Endeavor merger, which was completed on September 10, 2024.

      2024 Guidance 2024 Guidance
      Diamondback Energy, Inc. Viper Energy, Inc.
         
    2024 Net production – MBOE/d 587 – 590 (from 462 – 470) 48.75 – 49.25
    2024 Oil production – MBO/d 335 – 337 (from 273 – 276) 27.00 – 27.25
    Q4 2024 Oil production – MBO/d (total – MBOE/d) 470 – 475 (840 – 850) 29.25 – 29.75 (52.50 – 53.00)
         
    Q4 2024 Unit costs ($/BOE)    
    Lease operating expenses, including workovers $5.90 – $6.20  
    G&A    
    Cash G&A $0.55 – $0.65  
    Non-cash equity-based compensation $0.25 – $0.40  
    DD&A $14.00 – $15.00  
    Interest expense (net of interest income) $0.25 – $0.50  
    Gathering, processing and transportation $1.60 – $1.80  
         
    Production and ad valorem taxes (% of revenue) ~7%  
    Corporate tax rate (% of pre-tax income) 23%  
    Cash tax rate (% of pre-tax income) 15% – 18%  
    Cash taxes ($ – million) $240 – $300 $13 – $18
         
    Capital Budget ($ – million)    
    2024 Total capital expenditures $2,875 – $3,000 (from $2,350 – $2,450)  
    Q4 2024 Capital expenditures $950 – $1,050  
         
    Q4 2024 Gross horizontal wells drilled (net) 105 – 125 (100 – 118)  
    Q4 2024 Gross horizontal wells completed (net) 110 – 130 (102 – 120)  
         

    CONFERENCE CALL

    Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the third quarter of 2024 on Tuesday, November 5, 2024 at 8:00 a.m. CT. Access to the webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Diamondback’s website at www.diamondbackenergy.com under the “Investor Relations” section of the site.

    About Diamondback Energy, Inc.

    Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

    Forward-Looking Statements

    This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the recently completed Endeavor merger and other acquisitions or divestitures); and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Diamondback are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.

    Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial markets; inflationary pressures; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production, or governmental orders, rules or regulations that impose production limits; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change; those risks described in Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 22, 2024, and those risks disclosed in its subsequent filings on Forms 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

    In light of these factors, the events anticipated by Diamondback’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing environment and new risks emerge from time to time. Diamondback cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this letter or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

     
    Diamondback Energy, Inc.
    Condensed Consolidated Balance Sheets
    (unaudited, in millions, except share amounts)
           
      September 30,   December 31,
        2024       2023  
    Assets      
    Current assets:      
    Cash and cash equivalents ($169 million and $26 million related to Viper) $ 370     $ 582  
    Restricted cash   3       3  
    Accounts receivable:      
    Joint interest and other, net   233       192  
    Oil and natural gas sales, net ($109 million and $109 million related to Viper)   1,197       654  
    Inventories   126       63  
    Derivative instruments   42       17  
    Prepaid expenses and other current assets   51       110  
    Total current assets   2,022       1,621  
    Property and equipment:      
    Oil and natural gas properties, full cost method of accounting ($21,971 million and $8,659 million excluded from amortization at September 30, 2024 and December 31, 2023, respectively) ($4,771 million and $4,629 million related to Viper and $1,623 million and $1,769 million excluded from amortization related to Viper)   79,718       42,430  
    Other property, equipment and land   1,417       673  
    Accumulated depletion, depreciation, amortization and impairment ($1,016 million and $866 million related to Viper)   (18,082 )     (16,429 )
    Property and equipment, net   63,053       26,674  
    Funds held in escrow   43       —  
    Equity method investments   377       529  
    Derivative instruments   38       1  
    Deferred income taxes, net   62       45  
    Investment in real estate, net   81       84  
    Other assets   71       47  
    Total assets $ 65,747     $ 29,001  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable – trade $ 198     $ 261  
    Accrued capital expenditures   641       493  
    Current maturities of long-term debt   1,000       —  
    Other accrued liabilities   857       475  
    Revenues and royalties payable   1,444       764  
    Derivative instruments   34       86  
    Income taxes payable   289       29  
    Total current liabilities   4,463       2,108  
    Long-term debt ($822 million and $1,083 million related to Viper)   11,923       6,641  
    Derivative instruments   79       122  
    Asset retirement obligations   493       239  
    Deferred income taxes   9,952       2,449  
    Other long-term liabilities   18       12  
    Total liabilities   26,928       11,571  
    Stockholders’ equity:      
    Common stock, $0.01 par value; 800,000,000 shares authorized; 292,742,664 and 178,723,871 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively   3       2  
    Additional paid-in capital   34,007       14,142  
    Retained earnings (accumulated deficit)   3,427       2,489  
    Accumulated other comprehensive income (loss)   (8 )     (8 )
    Total Diamondback Energy, Inc. stockholders’ equity   37,429       16,625  
    Non-controlling interest   1,390       805  
    Total equity   38,819       17,430  
    Total liabilities and stockholders’ equity $ 65,747     $ 29,001  
     
    Diamondback Energy, Inc.
    Condensed Consolidated Statements of Operations
    (unaudited, $ in millions except per share data, shares in thousands)
                   
      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023       2024       2023  
    Revenues:              
    Oil, natural gas and natural gas liquid sales $ 2,354     $ 2,265     $ 6,629     $ 6,063  
    Sales of purchased oil   282       59       698       59  
    Other operating income   9       16       28       62  
    Total revenues   2,645       2,340       7,355       6,184  
    Costs and expenses:              
    Lease operating expenses   316       226       825       618  
    Production and ad valorem taxes   153       118       413       421  
    Gathering, processing and transportation   102       73       261       209  
    Purchased oil expense   280       59       696       59  
    Depreciation, depletion, amortization and accretion   742       442       1,694       1,277  
    General and administrative expenses   49       34       141       111  
    Merger and integration expense   258       1       273       11  
    Other operating expenses   35       47       68       113  
    Total costs and expenses   1,935       1,000       4,371       2,819  
    Income (loss) from operations   710       1,340       2,984       3,365  
    Other income (expense):              
    Interest expense, net   (18 )     (37 )     (101 )     (130 )
    Other income (expense), net   89       33       87       61  
    Gain (loss) on derivative instruments, net   131       (76 )     101       (358 )
    Gain (loss) on extinguishment of debt   —       —       2       (4 )
    Income (loss) from equity investments, net   6       9       23       39  
    Total other income (expense), net   208       (71 )     112       (392 )
    Income (loss) before income taxes   918       1,269       3,096       2,973  
    Provision for (benefit from) income taxes   210       276       685       648  
    Net income (loss)   708       993       2,411       2,325  
    Net income (loss) attributable to non-controlling interest   49       78       147       142  
    Net income (loss) attributable to Diamondback Energy, Inc. $ 659     $ 915     $ 2,264     $ 2,183  
                   
    Earnings (loss) per common share:              
    Basic $ 3.19     $ 5.07     $ 12.00     $ 12.01  
    Diluted $ 3.19     $ 5.07     $ 12.00     $ 12.01  
    Weighted average common shares outstanding:              
    Basic   204,730       178,872       187,253       180,400  
    Diluted   204,730       178,872       187,253       180,400  
     
    Diamondback Energy, Inc.
    Condensed Consolidated Statements of Cash Flows
    (unaudited, in millions)
                   
      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023       2024       2023  
    Cash flows from operating activities:              
    Net income (loss) $ 708     $ 993     $ 2,411     $ 2,325  
    Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:              
    Provision for (benefit from) deferred income taxes   51       10       180       185  
    Depreciation, depletion, amortization and accretion   742       442       1,694       1,277  
    (Gain) loss on extinguishment of debt   —       —       (2 )     4  
    (Gain) loss on derivative instruments, net   (131 )     76       (101 )     358  
    Cash received (paid) on settlement of derivative instruments   (4 )     (24 )     (36 )     (62 )
    (Income) loss from equity investment, net   (6 )     (9 )     (23 )     (39 )
    Equity-based compensation expense   16       13       49       40  
    Other   20       3       77       (23 )
    Changes in operating assets and liabilities:              
    Accounts receivable   106       (256 )     61       (218 )
    Income tax receivable   —       103       12       267  
    Prepaid expenses and other current assets   (11 )     (8 )     78       5  
    Accounts payable and accrued liabilities   (395 )     (28 )     (490 )     46  
    Income taxes payable   (36 )     23       (51 )     4  
    Revenues and royalties payable   95       53       109       139  
    Other   54       (33 )     104       (12 )
       Net cash provided by (used in) operating activities   1,209       1,358       4,072       4,296  
    Cash flows from investing activities:              
    Drilling, completions, infrastructure and midstream additions to oil and natural gas properties   (688 )     (684 )     (1,934 )     (2,052 )
    Property acquisitions   (7,791 )     (168 )     (7,994 )     (1,193 )
    Proceeds from sale of assets   207       868       459       1,400  
    Other   106       (1 )     103       (14 )
       Net cash provided by (used in) investing activities   (8,166 )     15       (9,366 )     (1,859 )
    Cash flows from financing activities:              
    Proceeds under term loan agreement   1,000       —       1,000       —  
    Proceeds from borrowings under credit facilities   1,011       1,015       1,185       4,466  
    Repayments under credit facilities   (1,073 )     (1,332 )     (1,333 )     (4,368 )
    Proceeds from senior notes   —       —       5,500       —  
    Repayment of senior notes   —       —       (25 )     (134 )
    Repurchased shares under buyback program   (515 )     (56 )     (557 )     (709 )
    Repurchased shares/units under Viper’s buyback program   —       (10 )     —       (67 )
    Proceeds from partial sale of investment in Viper Energy, Inc.   —       —       451       —  
    Net proceeds from Viper’s issuance of common stock   476       —       476       —  
    Dividends paid to stockholders   (416 )     (149 )     (1,316 )     (841 )
    Dividends/distributions to non-controlling interest   (59 )     (25 )     (157 )     (84 )
    Other   (5 )     (7 )     (142 )     (34 )
       Net cash provided by (used in) financing activities   419       (564 )     5,082       (1,771 )
    Net increase (decrease) in cash and cash equivalents   (6,538 )     809       (212 )     666  
    Cash, cash equivalents and restricted cash at beginning of period   6,911       21       585       164  
    Cash, cash equivalents and restricted cash at end of period $ 373     $ 830     $ 373     $ 830  
     
    Diamondback Energy, Inc.
    Selected Operating Data
    (unaudited)
               
      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
    Production Data:          
    Oil (MBbls)   29,537       25,129       24,482  
    Natural gas (MMcf)   66,519       51,310       49,423  
    Natural gas liquids (MBbls)   11,918       9,514       8,943  
    Combined volumes (MBOE)(1)   52,541       43,195       41,662  
               
    Daily oil volumes (BO/d)   321,054       276,143       266,109  
    Daily combined volumes (BOE/d)   571,098       474,670       452,848  
               
    Average Prices:          
    Oil ($ per Bbl) $ 73.13     $ 79.51     $ 81.57  
    Natural gas ($ per Mcf) $ (0.26 )   $ 0.10     $ 1.62  
    Natural gas liquids ($ per Bbl) $ 17.70     $ 17.97     $ 21.02  
    Combined ($ per BOE) $ 44.80     $ 50.33     $ 54.37  
               
    Oil, hedged ($ per Bbl)(2) $ 72.32     $ 78.55     $ 80.51  
    Natural gas, hedged ($ per Mcf)(2) $ 0.60     $ 1.03     $ 1.62  
    Natural gas liquids, hedged ($ per Bbl)(2) $ 17.70     $ 17.97     $ 21.02  
    Average price, hedged ($ per BOE)(2) $ 45.43     $ 50.89     $ 53.74  
               
    Average Costs per BOE:          
    Lease operating expenses $ 6.01     $ 5.88     $ 5.42  
    Production and ad valorem taxes   2.91       3.26       2.83  
    Gathering, processing and transportation expense   1.94       1.90       1.75  
    General and administrative – cash component   0.63       0.63       0.51  
    Total operating expense – cash $ 11.49     $ 11.67     $ 10.51  
               
    General and administrative – non-cash component $ 0.30     $ 0.44     $ 0.31  
    Depreciation, depletion, amortization and accretion per BOE $ 14.12     $ 11.18     $ 10.61  
    Interest expense, net $ 0.34     $ 1.02     $ 0.89  

    (1)   Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.
    (2)   Hedged prices reflect the effect of our commodity derivative transactions on our average sales prices and include gains and losses on cash settlements for matured commodity derivatives, which we do not designate for hedge accounting. Hedged prices exclude gains or losses resulting from the early settlement of commodity derivative contracts.


    NON-GAAP FINANCIAL MEASURES

    ADJUSTED EBITDA

    Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as net income (loss) attributable to Diamondback Energy, Inc., plus net income (loss) attributable to non-controlling interest (“net income (loss)”) before non-cash (gain) loss on derivative instruments, net, interest expense, net, depreciation, depletion, amortization and accretion, depreciation and interest expense related to equity method investments, (gain) loss on extinguishment of debt, if any, non-cash equity-based compensation expense, capitalized equity-based compensation expense, merger and integration expenses, other non-cash transactions and provision for (benefit from) income taxes, if any. Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles (“GAAP”). Management believes Adjusted EBITDA is useful because the measure allows it to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. The Company adds the items listed above to net income (loss) to determine Adjusted EBITDA because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Further, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of the Company’s operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. The Company’s computation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts.

    The following tables present a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP financial measure of Adjusted EBITDA:

    Diamondback Energy, Inc.
    Reconciliation of Net Income (Loss) to Adjusted EBITDA
    (unaudited, in millions)
               
      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
    Net income (loss) attributable to Diamondback Energy, Inc. $ 659     $ 837     $ 915  
    Net income (loss) attributable to non-controlling interest   49       57       78  
    Net income (loss)   708       894       993  
    Non-cash (gain) loss on derivative instruments, net   (135 )     (46 )     52  
    Interest expense, net   18       44       37  
    Depreciation, depletion, amortization and accretion   742       483       442  
    Depreciation and interest expense related to equity method investments   15       23       18  
    Non-cash equity-based compensation expense   24       26       21  
    Capitalized equity-based compensation expense   (8 )     (7 )     (8 )
    Merger and integration expenses   258       3       1  
    Other non-cash transactions   (72 )     6       (12 )
    Provision for (benefit from) income taxes   210       252       276  
    Consolidated Adjusted EBITDA   1,760       1,678       1,820  
    Less: Adjustment for non-controlling interest   104       103       78  
    Adjusted EBITDA attributable to Diamondback Energy, Inc. $ 1,656     $ 1,575     $ 1,742  


    ADJUSTED NET INCOME

    Adjusted net income is a non-GAAP financial measure equal to net income (loss) attributable to Diamondback Energy, Inc. plus net income (loss) attributable to non-controlling interest (“net income (loss)”) adjusted for non-cash (gain) loss on derivative instruments, net, (gain) loss on extinguishment of debt, if any, merger and integration expense, other non-cash transactions and related income tax adjustments, if any. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. Management believes adjusted net income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors. Further, in order to allow investors to compare the Company’s performance across periods, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods.

    The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP measure of adjusted net income:

    Diamondback Energy, Inc.
    Adjusted Net Income
    (unaudited, $ in millions except per share data, shares in thousands)
       
      Three Months Ended September 30, 2024
      Amounts   Amounts Per
    Diluted Share
    Net income (loss) attributable to Diamondback Energy, Inc.(1) $ 659     $ 3.19  
    Net income (loss) attributable to non-controlling interest   49       0.24  
    Net income (loss)(1)   708       3.43  
    Non-cash (gain) loss on derivative instruments, net   (135 )     (0.66 )
    Merger and integration expense   258       1.26  
    Other non-cash transactions   (72 )     (0.35 )
    Adjusted net income excluding above items(1)   759       3.68  
    Income tax adjustment for above items   (12 )     (0.06 )
    Adjusted net income(1)   747       3.62  
    Less: Adjusted net income attributable to non-controlling interest   49       0.24  
    Adjusted net income attributable to Diamondback Energy, Inc.(1) $ 698     $ 3.38  
           
    Weighted average common shares outstanding:      
    Basic     204,730  
    Diluted     204,730  

    (1) The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of common stock and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to Diamondback Energy, Inc, (ii) less the reallocation of $6 million in earnings attributable to participating securities, (iii) divided by diluted weighted average common shares outstanding.


    OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES AND FREE CASH FLOW

    Operating cash flow before working capital changes, which is a non-GAAP financial measure, represents net cash provided by operating activities as determined under GAAP without regard to changes in operating assets and liabilities. The Company believes operating cash flow before working capital changes is a useful measure of an oil and natural gas company’s ability to generate cash used to fund exploration, development and acquisition activities and service debt or pay dividends. The Company also uses this measure because changes in operating assets and liabilities relate to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. This allows the Company to compare its operating performance with that of other companies without regard to financing methods and capital structure.

    Free Cash Flow, which is a non-GAAP financial measure, is cash flow from operating activities before changes in working capital in excess of cash capital expenditures. The Company believes that Free Cash Flow is useful to investors as it provides measures to compare both cash flow from operating activities and additions to oil and natural gas properties across periods on a consistent basis as adjusted for non-recurring tax impacts from divestitures, merger and integration expenses, the early termination of derivative contracts and settlements of treasury locks. These measures should not be considered as an alternative to, or more meaningful than, net cash provided by operating activities as an indicator of operating performance. The Company’s computation of Free Cash Flow may not be comparable to other similarly titled measures of other companies. The Company uses Free Cash Flow to reduce debt, as well as return capital to stockholders as determined by the Board of Directors.

    The following tables present a reconciliation of the GAAP financial measure of net cash provided by operating activities to the non-GAAP measure of operating cash flow before working capital changes and to the non-GAAP measure of Free Cash Flow:

    Diamondback Energy, Inc.
    Operating Cash Flow Before Working Capital Changes and Free Cash Flow
    (unaudited, in millions)
                   
      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023       2024       2023  
    Net cash provided by operating activities $ 1,209     $ 1,358     $ 4,072     $ 4,296  
    Less: Changes in cash due to changes in operating assets and liabilities:              
    Accounts receivable   106       (256 )     61       (218 )
    Income tax receivable   —       103       12       267  
    Prepaid expenses and other current assets   (11 )     (8 )     78       5  
    Accounts payable and accrued liabilities   (395 )     (28 )     (490 )     46  
    Income taxes payable   (36 )     23       (51 )     4  
    Revenues and royalties payable   95       53       109       139  
    Other   54       (33 )     104       (12 )
    Total working capital changes   (187 )     (146 )     (177 )     231  
    Operating cash flow before working capital changes   1,396       1,504       4,249       4,065  
    Drilling, completions, infrastructure and midstream additions to oil and natural gas properties   (688 )     (684 )     (1,934 )     (2,052 )
    Total Cash CAPEX   (688 )     (684 )     (1,934 )     (2,052 )
    Free Cash Flow   708       820       2,315       2,013  
    Tax impact from divestitures(1)   —       64       —       64  
    Merger and integration expenses   258       —       273       —  
    Early termination of derivatives   37       —       37       —  
    Treasury locks   —       —       25       —  
    Adjusted Free Cash Flow $ 1,003     $ 884     $ 2,650     $ 2,077  

    (1) Includes the tax impact for the disposal of certain Midland Basin water assets and Delaware Basin oil gathering assets.


    NET DEBT

    The Company defines the non-GAAP measure of net debt as total debt (excluding debt issuance costs, discounts, premiums and unamortized basis adjustments) less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company’s leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt.

    Diamondback Energy, Inc.
    Net Debt
    (unaudited, in millions)
                           
      September 30,
    2024    		   Net Q3
    Principal
    Borrowings/
    (Repayments)    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
      (in millions)
    Diamondback Energy, Inc.(1) $ 12,284     $ 1,115     $ 11,169     $ 5,669     $ 5,697     $ 5,697  
    Viper Energy, Inc.(1)   830       (177 )     1,007       1,103       1,093       680  
    Total debt   13,114     $ 938       12,176       6,772       6,790       6,377  
    Cash and cash equivalents   (370 )         (6,908 )     (896 )     (582 )     (827 )
    Net debt $ 12,744         $ 5,268     $ 5,876     $ 6,208     $ 5,550  

    (1)  Excludes debt issuance costs, discounts, premiums and unamortized basis adjustments.


    DERIVATIVES

    As of November 1, 2024, the Company had the following outstanding consolidated derivative contracts, including derivative contracts at Viper Energy, Inc. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent pricing and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. When aggregating multiple contracts, the weighted average contract price is disclosed.

      Crude Oil (Bbls/day, $/Bbl)
      Q4 2024   Q1 2025   Q2 2025   Q3 2025   Q4 2025   FY2026
    Long Puts – Crude Brent Oil 82,000   52,000   33,000   10,000   —   —
    Long Put Price ($/Bbl) $57.44   $60.00   $60.00   $60.00   —   —
    Deferred Premium ($/Bbl) $-1.52   $-1.48   $-1.50   $-1.63   —   —
    Long Puts – WTI (Magellan East Houston) 35,000   58,000   46,000   22,000   —   —
    Long Put Price ($/Bbl) $57.57   $56.21   $55.22   $55.00   —   —
    Deferred Premium ($/Bbl) $-1.61   $-1.58   $-1.56   $-1.64   —   —
    Long Puts – WTI (Cushing) 125,000   138,000   109,000   38,000   —   —
    Long Put Price ($/Bbl) $57.28   $56.63   $55.73   $55.00   —   —
    Deferred Premium ($/Bbl) $-1.61   $-1.58   $-1.56   $-1.50   —   —
    Costless Collars – WTI (Cushing) 46,000   13,000   —   —   —   —
    Long Put Price ($/Bbl) $60.87   $60.00   —   —   —   —
    Short Call Price ($/Bbl) $89.91   $89.55   —   —   —   —
    Basis Swaps – WTI (Midland) 43,000   58,000   45,000   45,000   45,000   —
    $1.18   $1.10   $1.08   $1.08   $1.08   —
    Roll Swaps – WTI 40,000   —   —   —   —   —
    $0.82   —   —   —   —   —
      Natural Gas (Mmbtu/day, $/Mmbtu)
      Q4 2024   Q1 2025   Q2 2025   Q3 2025   Q4 2025   FY 2026
    Costless Collars – Henry Hub 398,261   690,000   630,000   630,000   630,000   80,000
    Long Put Price ($/Mmbtu) $2.78   $2.53   $2.49   $2.49   $2.49   $2.50
    Ceiling Price ($/Mmbtu) $6.53   $5.41   $5.46   $5.46   $5.46   $5.95
    Natural Gas Swaps – Henry Hub 13,370   —   —   —   —   —
    $3.23   —   —   —   —   —
    Natural Gas Basis Swaps – Waha Hub 471,630   650,000   590,000   590,000   590,000   10,000
    $-1.11   $-0.80   $-0.83   $-0.83   $-0.83   $-1.25

    Investor Contact:
    Adam Lawlis
    +1 432.221.7467
    alawlis@diamondbackenergy.com

    The MIL Network –

  • MIL-OSI: Letter to Stockholders Issued By Diamondback Energy, Inc.

    Source: GlobeNewswire (MIL-OSI)

    MIDLAND, Texas, Nov. 04, 2024 (GLOBE NEWSWIRE) —

    Diamondback Stockholders,

    This letter is meant to be a supplement to our earnings release and is being furnished to the Securities and Exchange Commission (SEC) and released to our stockholders simultaneously with our earnings release. Please see the information regarding forward-looking statements and non-GAAP financial information included at the end of this letter.

    Endeavor Closing:
    Diamondback closed the Endeavor transaction on September 10th, which began the next chapter of the Company’s short history. In just under two months, the Diamondback and Endeavor teams have worked quickly towards a seamless integration. We onboarded more than 1,000 employees, moved over 650 combined offices and began working as one functional organization in the first week post-close.

    The teams have already begun sharing best practices, which we witnessed in our first pro forma quarterly operations reviews a few weeks ago. At a high level, we have essentially merged two teams of basin experts. While we were once competitors, we can now share best practices and learnings from years of drilling and completing wells in the Midland Basin with what we believe is more combined data and basin experience than any competitor. This is a synergy that could not be modeled in our spreadsheet when the deal was announced, but I am confident this will accrue to the benefit of our stockholders in short order.

    We are ahead of schedule in delivering the operational synergies we promised in conjunction with the merger. Our drilling and completions teams have already implemented the two most significant operational synergies: clear fluids for drilling and SimulFrac for completions. All our development in the fourth quarter will be executed with SimulFrac completions crews, with spot crews to be used for single-well tests like the Barnett Shale in the Midland Basin. On the drilling side, as of today, all of our rigs are operating with clear fluid drilling systems, and we have already seen wells on legacy Endeavor acreage drilled below post-synergy-expected cost per lateral foot.

    At time of deal announcement, we promised to drill and complete wells for $625 per lateral foot in 2025 on Endeavor’s acreage. I can say that today, in real time and two months post-announcement, we are averaging $600 per lateral foot across the combined Company – above expectations and ahead of schedule.

    We are also actively learning from the Endeavor teams. On the execution front, we are optimistic about application and integration of some early learnings around the post-completion, drill-out process and believe there to be significant best practices to be shared across the combined production operations groups. We are also closely studying the various completion designs from the two companies and are confident the combination of the best completion design with the lowest cost execution will be a winning formula.

    As a result, I could not be more excited about the early progress from integration and remain confident in the team’s ability to meet or exceed the synergies promised at deal announcement.

    TRP Energy (“TRP”) Asset Trade:
    Our new combined acreage footprint has given us the flexibility to look at different opportunities across the Permian Basin. This is exemplified by a trade we just executed, where we signed an exchange agreement with TRP that allows us to play offense in our backyard by swapping a PDP-heavy asset in the Delaware Basin for a Midland Basin asset with more near-term development potential. In exchange for our Vermejo asset and ~$238 million in cash, we will receive TRP’s Midland Basin asset, which consists of approximately 15,000 net acres located in Upton and Reagan counties. The asset we will acquire in this trade has 55 remaining undeveloped operated locations, the majority of which compete for capital right away. The trade is expected to be accretive to our 2025 Cash Flow and Free Cash Flow per share and will high grade our inventory. We expect this trade to close by year-end, subject to customary regulatory approvals and closing conditions.

    We will also continue to look for ways to improve our asset base, whether it be through traditional trades to be able to drill longer laterals and increase operated working interests or “out of the box” ideas such as TRP.

    Third Quarter Operational Performance:
    I am proud of our team’s ability to execute regardless of the circumstances and the third quarter was no exception. Our team put operations first even as many moved offices, integrated new team members and began to understand a large new asset. We are currently running 20 drilling rigs and expect to be down to 18 operated rigs by year-end. What we originally expected to drill with 22 – 24 rigs in 2025, we now expect we can drill with closer to 18 rigs. This is purely based on continued efficiency gains, a testament to the prowess of our drilling organization.

    On the completions side of the business, we are currently running four SimulFrac crews, three of which are electric. We continue to exceed our original key performance indicators for 2024. We are completing on average nearly 4,000 lateral feet per day per crew, 30% more than we originally planned heading into the year. This increase is driven by higher pumping hours per day, higher average pump rates, lower swap times per stage and faster move times between pads.

    Production:
    For the quarter, Diamondback produced 321.1 MBO/d (571.1 MBOE/d), above the high end of the guidance range of 319 – 321 MBO/d (565 – 569 MBOE/d) that we released in October. As a reminder, this third quarter production incorporates twenty-one days of legacy Endeavor production. Well performance continues to meet or exceed expectations in our core Midland Basin position, setting us up well to continue to execute and achieve additional capital efficiency gains.

    For the fourth quarter of 2024, we expect to produce 470 – 475 MBO/d (840 – 850 MBOE/d). This includes a minor contribution from Viper’s closed acquisition of Tumbleweed. It also shows we expect to hit pro forma production expectations sooner than originally expected.

    Capital Expenditures:
    In the third quarter, we spent $688 million on capital expenditures, which is in the middle of our updated guidance range of $675 – $700 million. For the fourth quarter, we expect to spend $950 – $1,050 million of capex.

    The macro environment for oil prices and near-term global oil supply and demand dynamics remains volatile at best and tenuous at worst. Diamondback’s base case 2025 plan is still what was laid out with the Endeavor merger announcement in February (“generate oil production of 470 – 480 MBO/d (800 – 825 MBOE/d) with a capital budget of approximately $4.1 – $4.4 billion”), with oil production expected to increase by approximately 5 MBO/d due to contribution from the Viper Tumbleweed acquisition.

    On the other hand, we are actively working all our options for 2025, including continuing to refine this base case plan. Should oil prices weaken from current levels, we will make the correct capital allocation decision and focus on Free Cash Flow generation and capital efficiency over oil volumes. Our size, scale, cost structure and inventory quality position us well for whatever direction the macro decides to take. Our return of capital program, combined with a strong balance sheet, allows us to increase stockholder returns when volatility increases.

    Operating Costs:
    Total cash operating costs decreased slightly quarter over quarter to $11.49 per BOE. Lease operating expense (“LOE”) in the third quarter was $6.01 per BOE, within our annual guidance range of $5.90 – $6.40 per BOE. Cash G&A was $0.63 within our annual guidance range of $0.55 – $0.65 per BOE. We have announced a preliminary look at run rate pro forma operating expenses and expect to solidify these numbers when we update the market for 2025 unit cost guidance. DD&A increased quarter over quarter to $14.12 as a result of the Endeavor assets being added to our balance sheet.

    Financial Performance and Return of Capital:
    Diamondback generated $1.2 billion of net cash provided by operating activities and operating cash flow before working capital changes of $1.4 billion. Adjusted Free Cash Flow was $1.0 billion. Unique to this quarter, we adjusted Free Cash Flow upwards to account for two one-time items: $258 million of merger and integration expense and $37 million of costs associated with unwinding a portion of our outstanding swap to floating interest rate hedges.

    We will return ~78% of that Adjusted Free Cash Flow to stockholders through our base dividend and share repurchases. Our willingness to go above our base 50% return threshold was driven by our opportunistic share repurchase program, as we bought back ~$515 million worth of common stock at an average price of $176.40 / share in the third quarter. This includes 2 million shares repurchased for ~$350 million at a price of $175.11 per share in conjunction with the September secondary offering, where legacy Endeavor stockholders sold approximately 14.4 million shares. Diamondback’s participation in the offering is consistent with our opportunistic repurchase methodology, leaning into our repurchase program when we view our stock to be attractively valued at mid-cycle oil pricing.

    We have continued to be active repurchasing shares in the fourth quarter, and quarter to date have bought back over $185 million worth of shares at an average share price of approximately $180.13.

    As previously announced, our Board recently increased our share repurchase authorization to $6.0 billion from $4.0 billion previously. This gives us the flexibility to allocate capital appropriately and buy back shares in times of market stress.

    Balance Sheet:
    At quarter-end, we had approximately $13.1 billion of gross debt and $12.7 billion of net debt. We ended the quarter with $2.6 billion of liquidity at Diamondback, as we increased our borrowing base and elected commitments on our revolving credit facility to $2.5 billion from $1.6 billion previously.

    In September, we also received upgrades from two of the three rating agencies, as S&P upgraded us to BBB from BBB- and Fitch moved us to BBB+ from BBB. Moody’s remained at Baa2.

    As we have stated previously, our near-term goal is to lower consolidated net debt below $10 billion, which we expect to achieve through Free Cash Flow generation and proceeds from non-core asset sales. Our long-term priority is to maintain a leverage ratio of approximately 0.5x at mid-cycle oil pricing, or approximately $6 to $8 billion of net debt. We feel we can achieve this goal within the next couple of years solely by dedicating 50% of Free Cash Flow to debt paydown, while reserving the ability to flex up stockholder returns through opportunistic stock repurchases at times of excessive market volatility or one-time events such as secondary equity sell-downs.

    Other Business:
    We continue to use our equity method investments as valuable tools to improve our core operating business while also generating impressive returns, adding significant cash to our balance sheet. As we previously announced in July, Energy Transfer LP completed its acquisition of WTG Midstream Holdings LLC (“WTG”). Additionally, during the third quarter we completed the sale of our 4% interest in the Wink to Webster Pipeline.

    With the sales of WTG and Wink to Webster complete, we now have three equity method investments remaining in our portfolio: the EPIC crude pipeline (“EPIC”), the BANGL Y-grade NGL pipeline and the Deep Blue sustainable water management company. We recently increased our ownership in EPIC from 10.0% to 27.5% and are excited about the growth potential of this long-haul crude pipe as well as our other investments. As such, we do not feel now is the right time to monetize these assets.

    We continue to believe we can add significant value to our minerals company Viper (NASDAQ: VNOM) and Deep Blue through the potential drop down of Endeavor overrides and minerals to Viper and the sale of Endeavor’s extensive water infrastructure to Deep Blue, potentially accelerating our de-leveraging efforts in early 2025.

    We are also excited about what we see as the next wave of equity method investments for Diamondback: power generation and potentially data center development. By leveraging our 65,000 surface acres in West Texas, cheap natural gas and abundant supply of produced water, we believe we can be a premier partner in this new wave of development. By generating our own in-basin power, we can solve two long-term issues that have plagued the Permian Basin: the need for natural gas egress and cheap, reliable electricity. We look forward to updating our stockholders on our progress on these initiatives in the coming quarters.

    Closing:
    2024 has been a transformative year for Diamondback. We are intensely focused on delivering on the promises we made to the market around synergies and believe, eight weeks in, we have a significant head start relative to original expectations.

    Thank you for your ongoing support and interest in Diamondback Energy.

    Travis D. Stice
    Chairman of the Board and Chief Executive Officer

    Investor Contact:
    Adam Lawlis
    +1 432.221.7467
    alawlis@diamondbackenergy.com

    Forward-Looking Statements:

    This letter contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the recently completed Endeavor merger and other acquisitions or divestitures); the expected amount and timing of synergies from the Endeavor merger; and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this letter, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.

    Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial markets; concerns over a potential economic slowdown or recession; inflationary pressures; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production, or governmental orders, rules or regulations that impose production limits; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change; those risks described in Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 22, 2024, and those risks disclosed in its subsequent filings on Forms 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

    In light of these factors, the events anticipated by Diamondback’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing environment and new risks emerge from time to time. Diamondback cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this letter or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

    Non-GAAP Financial Measures

    This letter includes financial information not prepared in conformity with generally accepted accounting principles (GAAP), including free cash flow. The non-GAAP information should be considered by the reader in addition to, but not instead of, financial information prepared in accordance with GAAP. A reconciliation of the differences between these non-GAAP financial measures and the most directly comparable GAAP financial measures can be found in Diamondback’s quarterly results posted on Diamondback’s website at www.diamondbackenergy.com/investors/. Furthermore, this letter includes or references certain forward-looking, non-GAAP financial measures. Because Diamondback provides these measures on a forward-looking basis, it cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP financial measures, such as future impairments and future changes in working capital. Accordingly, Diamondback is unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures. Diamondback believes that these forward-looking, non-GAAP measures may be a useful tool for the investment community in comparing Diamondback’s forecasted financial performance to the forecasted financial performance of other companies in the industry.

    The MIL Network –