Category: Finance

But, he argues, 2025 will be even bigger. “The Great Gain is the FINAL major wealth-building opportunity of our lifetimes.”

MIL-OSI: Tech Expert Warns: 2025 Will Be a Crossroads Year for America—A New Era of Disruption and Opportunity

Source: GlobeNewswire (MIL-OSI)

NEW YORK, March 05, 2025 (GLOBE NEWSWIRE) — Tech expert James Altucher is issuing a stark warning: 2025 will be a defining crossroads for America—one that could either unlock historic new opportunities or leave millions struggling to catch up.

Dubbed “The Great Gain”, Altucher believes that the U.S. is entering a rare moment in history where massive economic and technological shifts will converge at the same time, forcing industries, businesses, and individuals to either adapt or be left behind. “For the first time in US history… Two major Wealth Drivers are on a collision course.”

According to Altucher, these two forces—a political and economic realignment combined with a peak in the nation’s financial cycle—are setting the stage for rapid, unpredictable change. “The first 365 days of Trump’s presidency will be remembered as… The best time to get rich in American history.”

A Defining Moment in Economic History

Altucher has made a career out of identifying major turning points before they happen. He predicted the rise of video streaming in the late 1990s, saw the social media explosion before Facebook’s IPO, and has been ahead of the curve on disruptive technologies and financial trends.

Now, he sees 2025 as another major inflection point—one that could either create immense new opportunities or leave many behind. “Technology is evolving at an exponential rate, and industries are being reshaped overnight.”

Altucher compares this shift to previous economic revolutions—those rare moments when industries and wealth were completely transformed: “The Industrial Revolution created unprecedented business empires. The dot-com boom built some of today’s biggest companies.”

What This Means for Everyday Americans

Altucher is urging Americans to prepare now, as this shift will create both massive winners and losers. He believes that for those who take action early, this period could bring a rare second chance to reshape their future.

“In our nation’s history… There have been only a few times… Where regular Americans could quickly gain enough wealth… To radically improve their standard of living.”

About James Altucher

James Altucher is a renowned entrepreneur, investor, and thought leader known for spotting emerging economic trends and breakthrough technologies long before they reach the mainstream.

Over his career, Altucher has:

Built and sold multiple companies across finance, tech, and media
Advised Fortune 500 corporations on economic trends and disruptive innovation
Authored over 20 books, including Choose Yourself, Skip the Line, and The Rich Employee
Been featured in leading media outlets, including CNBC, Yahoo Finance, and The New York Times

His podcast, The James Altucher Show, has been downloaded over 40 million times, featuring in-depth interviews with some of the world’s most influential entrepreneurs, investors, and visionaries.

Media Contact:
Derek Warren
Public Relations Manager
Paradigm Press Group
Email: dwarren@paradigmpressgroup.com

MIL-OSI: James Altucher Declares 2025 as ‘The Great Gain’—A New Era of Opportunity for Americans

Source: GlobeNewswire (MIL-OSI)

NEW YORK, March 05, 2025 (GLOBE NEWSWIRE) — Renowned entrepreneur, best-selling author, and economic visionary James Altucher has identified 2025 as a pivotal year for American prosperity, calling it “The Great Gain”—a moment in history where major economic and technological forces are converging to create new opportunities unlike anything seen before. “The first 365 days of Trump’s presidency will be remembered as… The best time to get rich in American history.”

Altucher argues that two major economic forces are colliding for the first time in history to create an unprecedented wave of opportunity. “For the first time in US history… Two major Wealth Drivers are on a collision course.”

A Once-in-a-Generation Moment

Altucher, known for his ability to forecast major economic and technological shifts, believes that 2025 will be remembered as one of the most transformative years in modern history. He compares it to past eras of rapid progress, such as the Industrial Revolution, the rise of Silicon Valley, and the early internet boom of the 1990s.

“The Industrial Revolution created unprecedented business empires. The dot-com boom built some of today’s biggest companies.”

According to Altucher, this moment is different from previous cycles because of the convergence of two Wealth Drivers:

A Political and Economic Shift – A radical move in the first 100 days of the new administration is set to open new doors for growth.
A Historical Economic Cycle – A peak in the 4-year wealth cycle, which “last time… turned more than 80,000 people into new millionaires.”

A Call to Action for Americans

Altucher urges Americans to stay ahead of these changes by recognizing the emerging trends that could redefine the economy. From career opportunities and entrepreneurship to advancements in automation and artificial intelligence, the coming months will present once-in-a-lifetime chances to adapt, grow, and thrive. “In our nation’s history… There have been only a few times… Where regular Americans could quickly gain enough wealth… To radically improve their standard of living.”

About James Altucher

James Altucher is not only a tech expert, he’s a former hedge fund manager and best-selling author. Altucher has also launched and sold multiple businesses and advised Fortune 500 companies. His work has been featured on Fox Business, CNBC, Yahoo Finance, The New York Times, and Business Insider.

His podcast, The James Altucher Show, has been downloaded over 40 million times, featuring guests such as Mark Cuban, Richard Branson, and Peter Thiel.

Media Contact:
Derek Warren
Public Relations Manager
Paradigm Press Group
Email: dwarren@paradigmpressgroup.com

Calling it “The Great Gain”, Altucher believes that a rare collision of economic forces is underway, creating what could be one of the most significant windows for personal and financial transformation in modern history. “For the first time in US history… Two major Wealth Drivers are on a collision course.”

MIL-OSI: James Altucher Declares 2025 as ‘America’s Defining Moment’—A Rare Economic Shift That Could Reshape the Future

Source: GlobeNewswire (MIL-OSI)

NEW YORK, March 05, 2025 (GLOBE NEWSWIRE) — Tech expert, best-selling author, and market forecaster James Altucher is making a bold proclamation: 2025 will mark a turning point in the American economy—one that could redefine industries, technology, and personal opportunity.

These two forces—a major political and economic shift combined with a historic wealth cycle peak—are aligning in a way that hasn’t happened in decades. “The first 365 days of Trump’s presidency will be remembered as… The best time to get rich in American history.”

A Historic Turning Point for Innovation and Growth

Altucher, who has successfully predicted market-defining trends for decades, sees 2025 as the start of a technological and financial transformation similar to past economic revolutions. “The Industrial Revolution created unprecedented business empires. The dot-com boom built some of today’s biggest companies.”

He believes this moment could be even bigger, with industries evolving faster than ever before. “Technology is evolving at an exponential rate, and industries are being reshaped overnight.”

A Rare Chance for Everyday Americans

Altucher emphasizes that this shift isn’t just for major corporations or Wall Street—it presents a rare second chance for everyday Americans to take advantage of changes before they become mainstream. “In our nation’s history… There have been only a few times… Where regular Americans could quickly gain enough wealth… To radically improve their standard of living.”

About James Altucher

James Altucher is not only a tech expert, he’s a former hedge fund manager and best-selling author. Altucher has also launched and sold multiple businesses and advised Fortune 500 companies. His work has been featured on Fox Business, CNBC, Yahoo Finance, The New York Times, and Business Insider.

His podcast, The James Altucher Show, has been downloaded over 40 million times, featuring guests such as Mark Cuban, Richard Branson, and Peter Thiel.

Media Contact:
Derek Warren
Public Relations Manager
Paradigm Press Group
Email: dwarren@paradigmpressgroup.com

MIL-OSI: Ring Energy Announces Fourth Quarter and Full Year 2024 Results, Year-End 2024 Proved Reserves, and 2025 Guidance

Source: GlobeNewswire (MIL-OSI)

THE WOODLANDS, Texas, March 05, 2025 (GLOBE NEWSWIRE) — Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today reported operational and financial results for the fourth quarter and full year 2024, year-end 2024 proved reserves and provided 2025 operational and financial guidance.

Fourth Quarter 2024 Highlights

Recorded net income of $5.7 million, or $0.03 per diluted share;
Reported Adjusted Net Income¹ of $12.3 million, or $0.06 per diluted share;
Sold 19,658 barrels of oil equivalent per day (“Boe/d”), exceeding midpoint of guidance and 12,916 barrels of oil per day (“Bo/d”);
Held all-in cash operating costs¹ (on a Boe basis) substantially flat with Q3 2024;
Reduced total capital expenditures by 12% to $37.6 million as compared to Q3 2024;
Recorded Adjusted Cash Flow from Operations¹ of $42.2 million and delivered Adjusted Free Cash Flow¹ of $4.7 million, remaining cash flow positive for 21 consecutive quarters; and
Strengthened balance sheet by an additional $7.0 million in debt reduction.

Full Year 2024 Highlights

Recorded net income of $67.5 million, or $0.34 per diluted share;
Reported Adjusted Net Income¹ of $69.5 million, or $0.35 per diluted share;
Grew sales volumes year-over-year (“Y-O-Y”) by 8% to a record 19,648 Boe/d and oil sales by 6% to a record 13,283 Bo/d;
Reduced Y-O-Y all-in cash operating costs¹ (on a Boe basis) by 2%;
Generated Adjusted EBITDA¹ of $233.3 million despite a 7% reduction in realized prices;
Maintained capital spending essentially flat at $151.9 million while improving capital efficiency on horizontal (“Hz”) wells by 11% to ~$492 per foot and vertical wells by ~3% on a per completed interval basis;
Generated a Cash Return on Capital Employed (“CROCE”)¹ of 15.9% despite lower commodity pricing, which is the third consecutive year that Ring has achieved a CROCE in excess of 15%;
Recorded Adjusted Cash Flow from Operations¹ of $195.3 million and delivered Adjusted Free Cash Flow¹ of $43.6 million, remaining cash flow positive for over 5 years;
Divested non-core vertical wells with high operating cost for $5.5 million;
Paid down $40.0 million in debt and $70.0 million since closing the Founders acquisition in August 2023;
Reaffirmed the borrowing base at $600 million, exited 2024 with ~$217 million of liquidity, borrowings of $385 million, and a Leverage Ratio¹ of 1.66x; and
Organically grew proved reserves by 4.4 MMBoe, or 3%, to 134.2 MMBoe.

2025 Outlook²

Average annual sales midpoint of 21,000 Boe/d and 13,900 Bo/d, a 7% and 5% increase, respectively;
Annual capital spending midpoint of $154 million, essentially flat with the prior year;
Total wells drilled, completed and online (midpoint) of ~49 wells; and
Assumes nine months of Lime Rock asset operations without the benefit of anticipated synergies and cost reductions.

Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “We finished 2024 delivering on our promises during the fourth quarter, in a year in which the Ring Team enhanced nearly every controllable metric. We grew our sales by 8% over the prior year to a record 19,648 Boe/d and our oil sales by 6% to a record 13,283 Bo/d. We reduced our all-in cash operating costs per Boe by 2% and drilled 13 more wells for slightly less capital than the previous year representing a substantial increase in capital efficiency for both our horizontal and vertical wells. We paid down debt by $40 million and exited the year with $385 million borrowings and approximately $217 million of liquidity. During the fourth quarter of 2024, we reduced our capital expenditures in anticipation of seeking and completing a meaningful acquisition of producing properties, while achieving the midpoint of our guidance on a Boe basis. As we have previously stated, we intend to maintain or slightly grow our production through our organic drilling program and grow through accretive, balance sheet enhancing acquisitions of assets that meet specific criteria. Our strategy retains the flexibility to respond to changing conditions to ensure we continue to make progress profitably growing the Company, achieving the size and scale to earn more attractive market metrics, and build long term shareholder value. Looking forward to 2025, we intend to continue a reduced capital spending program in the first quarter to help us achieve a satisfactory leverage ratio upon closing the Lime Rock transaction. The rest of the year will be consistent with our past. We will continue our focus on maximizing cash flow generation and intend to allocate a portion of our cash flow from operations to maintain production and liquidity and allocate the balance to paying down debt. With the potential added benefit of the proposed Lime Rock production beginning in the second quarter and our historically successful capital spending program, we anticipate ending 2025 stronger than ever.”

Mr. McKinney concluded, “I would like to thank the Ring Team for the hard work and dedication it took to deliver our 2024 results. I also want to express our gratitude for the continued support of our shareholders. Despite an environment of lower realized commodity prices, being a member of a market segment where investor interest has waned, and other market conditions beyond our control, our shareholders continued to support us as we pursue our value focused proven strategy to build long-term value.”

Summary Results

	Quarter							Year
	Q4 2024	Q3 2024	Q4 2024 to Q3 2024 % Change		Q4 2023	Q4 2024 to Q4 2023 % Change		FY 2024	FY 2023	FY % Change
Average Daily Sales Volumes (Boe/d)	19,658	20,108	(2	)%	19,397	1	%	19,648	18,119	8	%
Crude Oil (Bo/d)	12,916	13,204	(2	)%	13,637	(5	)%	13,283	12,548	6	%
Net Sales (MBoe)	1,808.5	1,849.9	(2	)%	1,784.5	1	%	7,191.1	6,613.3	9	%
Realized Price – All Products ($/Boe)	$46.14	$48.24	(4	)%	$56.01	(18	)%	$50.94	$54.60	(7	)%
Realized Price – Crude Oil ($/Bo)	$68.98	$74.43	(7	)%	$77.33	(11	)%	$74.87	$76.21	(2	)%
Revenues ($MM)	$83.4	$89.2	(7	)%	$99.9	(17	)%	$366.3	$361.1	1	%
Net Income/Loss ($MM)	$5.7	$33.9	(83	)%	$50.9	(89	)%	$67.5	$104.9	(36	)%
Adjusted Net Income¹ ($MM)	$12.3	$13.4	(8	)%	$21.2	(42	)%	$69.5	$100.5	(31	)%
Adjusted EBITDA¹ ($MM)	$50.9	$54.0	(6	)%	$65.4	(22	)%	$233.3	$236.0	(1	)%
Capital Expenditures ($MM)	$37.6	$42.7	(12	)%	$38.8	(3	)%	$151.9	$152.0	—	%
Adjusted Free Cash Flow¹ ($MM)	$4.7	$1.9	144	%	$16.3	(71	)%	$43.6	$45.3	(4	)%

Adjusted Net Income, Adjusted EBITDA, Adjusted Free Cash Flow, Adjusted Cash Flow from Operations, Cash Return on Capital Employed and PV-10 are non-GAAP financial measures, which are described in more detail and reconciled to the most comparable GAAP measures, in the tables shown later in this release under “Non-GAAP Financial Information.”

Sales Volumes, Prices and Revenues: Sales volumes for the fourth quarter of 2024 are shown in the table above.

For the fourth quarter of 2024, realized average sales prices were $68.98 per barrel of crude oil, $(0.96) per Mcf of natural gas and $9.08 per barrel of NGLs. The realized natural gas and NGL prices are impacted by a fee reduction to the value received. For the fourth quarter of 2024, the weighted average natural gas price per Mcf was $0.87 offset by a weighted average fee value per Mcf of $(1.83), and the weighted average NGL price per barrel was $20.96 partially offset by a weighted average fee of $(11.88) per barrel. The combined average realized sales price for the period was $46.14 per Boe, down 4% versus $48.24 per Boe for the third quarter of 2024, and down 18% from $56.01 per Boe in the fourth quarter of 2023. The average oil price differential the Company experienced from WTI NYMEX futures pricing in the fourth quarter of 2024 was a negative $1.42 per barrel of crude oil, while the average natural gas price differential from NYMEX futures pricing was a negative $3.83 per Mcf.

Revenues were $83.4 million for the fourth quarter of 2024 compared to $89.2 million for the third quarter of 2024 and $99.9 million for the fourth quarter of 2023. The 7% decrease in fourth quarter 2024 revenues from the third quarter was driven by a ($3.8MM) price variance and a ($2.0MM) volume variance.

Lease Operating Expense (“LOE”): LOE, which includes expensed workovers and facilities maintenance, was $20.3 million, or $11.24 per Boe, in the fourth quarter of 2024 versus $20.3 million, or $10.98 per Boe, in the third quarter of 2024 and $18.7 million, or $10.50 per Boe, for the fourth quarter of 2023. Fourth quarter 2024 LOE per Boe was within the Company’s guidance range, and the Company remains focused on further improving the efficiencies of its operations.

Gathering, Transportation and Processing (“GTP”) Costs: As previously disclosed, due to a contractual change effective May 1, 2022, the Company no longer maintains ownership and control of the majority of its natural gas through processing. As a result, GTP costs are now substantially reflected as a reduction to the natural gas sales price and not as an expense item. There remains only one contract in place with a natural gas processing entity where the point of control of gas dictates requiring the fees to be recorded as an expense.

Ad Valorem Taxes: Ad valorem taxes, inclusive of an accrual for methane taxes of $527,687, were $1.34 per Boe for the fourth quarter of 2024, compared to $1.17 per Boe in the third quarter of 2024 and $0.92 per Boe for the fourth quarter of 2023.

Production Taxes: Production taxes were $2.13 per Boe in the fourth quarter of 2024 compared to $2.27 per Boe in the third quarter of 2024 and $2.78 per Boe in fourth quarter of 2023. Production taxes ranged between 4.6% to 5.0% of revenue for all three periods.

Depreciation, Depletion and Amortization (“DD&A”) and Asset Retirement Obligation Accretion: DD&A was $13.57 per Boe in the fourth quarter of 2024 versus $13.87 per Boe for the third quarter of 2024 and $13.76 per Boe in the fourth quarter of 2023. Asset retirement obligation accretion was $0.18 per Boe in the fourth quarter of 2024 compared to $0.19 per Boe for the third quarter of 2024 and $0.20 per Boe in the fourth quarter of 2023.

General and Administrative Expenses (“G&A”): G&A was $8.0 million ($4.44 per Boe) for the fourth quarter of 2024 versus $6.4 million ($3.47 per Boe) for the third quarter of 2024 and $8.2 million ($4.58 per Boe) in the fourth quarter of 2023. G&A, excluding share-based compensation¹, was $6.4 million for the fourth quarter of 2024 ($3.52 per Boe) versus $6.4 million for the third quarter of 2024 ($3.45 per Boe) and $5.7 million in the fourth quarter of 2023 ($3.20 per Boe). The fourth quarter of 2024 included $21,017 of Transaction Costs. Excluding these costs and share-based compensation, G&A was $3.51 per Boe for the period.

Interest Expense: Interest expense was $10.1 million in the fourth quarter of 2024 versus $10.8 million for the third quarter of 2024 and $11.6 million for the fourth quarter of 2023.

Derivative (Loss) Gain: In the fourth quarter of 2024, Ring recorded a net loss of $6.3 million on its commodity derivative contracts, including a realized $0.7 million cash commodity derivative gain and an unrealized $7.0 million non-cash commodity derivative loss. This compared to a net gain of $24.7 million in the third quarter of 2024, including a realized $1.9 million cash commodity derivative loss and an unrealized $26.6 million non-cash commodity derivative gain, and a net gain of $29.3 million in the fourth quarter of 2023, including a realized $3.3 million cash commodity derivative loss and an unrealized $32.5 million non-cash commodity derivative gain.

A summary listing of the Company’s outstanding derivative positions at December 31, 2024 is included in the tables shown later in this release. A quarterly breakout is provided in the Company’s investor presentation.

For full year 2025, the Company currently has approximately 2.4 million barrels of oil (48% of oil sales guidance midpoint) hedged and 2.4 billion cubic feet of natural gas (33% of natural gas sales guidance midpoint) hedged.

Income Tax: The Company recorded a non-cash income tax provision of $1.8 million in the fourth quarter of 2024, $10.1 million in the third quarter of 2024, and $7.9 million for fourth quarter 2023.

Balance Sheet and Liquidity: Total liquidity at December 31, 2024 was $216.8 million, a 4% increase from September 30, 2024 and a 24% increase from December 31, 2023. Liquidity at December 31, 2024 consisted of cash and cash equivalents of $1.9 million and $215.0 million of availability under Ring’s revolving credit facility, which includes a reduction of $35 thousand for letters of credit. On December 31, 2024, the Company had $385.0 million in borrowings outstanding on its revolving credit facility that has a current borrowing base of $600.0 million. Ring paid down $7 million of debt during the fourth quarter of 2024 and $70.0 million since the closing of the Founders Transaction in August 2023. The Company is targeting further debt pay down during 2025 dependent on market conditions, the timing of capital spending, and other considerations.

During the fourth quarter of 2024, the Company’s borrowing base of $600 million under its revolving credit facility was reaffirmed. The next regularly scheduled bank redetermination is scheduled to occur during May 2025. Ring is currently in compliance with all applicable covenants under its revolving credit facility.

Capital Expenditures: During the fourth quarter of 2024, capital expenditures on an accrual basis were $37.6 million, which was near the midpoint of Ring’s guidance of $33 million to $41 million. The Company drilled five Hz and four vertical wells, and completed ten wells — with all drilling and completion activity occurring in the Central Basin Platform (“CBP”). Also included in fourth quarter 2024 capital spending were costs for capital workovers, infrastructure upgrades, recompletions, leasing costs, and ESG improvements.

For the year ended December 31, 2024, capital expenditures on an accrual basis were $151.9 million — substantially flat with full year 2023 despite more than a 40% increase in drilling and completion activity in 2024. Capital spending in 2024 included costs to drill, complete and place on production 21 Hz wells (five in the NWS and 16 in the CBP) and 22 vertical wells in the CBP, as well as costs for capital workovers, infrastructure upgrades, recompletions, leasing costs, and ESG improvements.

The table below sets forth Ring’s drilling and completions activities by quarter for 2024:

Quarter	Area	Wells Drilled	Wells Completed	Drilled Uncompleted (“DUC”) ⁽²⁾

1Q 2024	Northwest Shelf (Horizontal)	2	2	—
	Central Basin Platform (Horizontal)	3	3	—
	Central Basin Platform (Vertical)	6	6	—
	Total ⁽¹⁾	11	11	—

2Q 2024	Northwest Shelf (Horizontal)	—	—	—
	Central Basin Platform (Horizontal)	5	5	—
	Central Basin Platform (Vertical)	6	6	—
	Total	11	11	—

3Q 2024	Northwest Shelf (Horizontal)	3	3	—
	Central Basin Platform (Horizontal)	4	2	2
	Central Basin Platform (Vertical)	6	6	—
	Total	13	11	2

4Q 2024	Northwest Shelf (Horizontal)	—	—	—
	Central Basin Platform (Horizontal)	5	6	1
	Central Basin Platform (Vertical)	4	4	—
	Total	9	10	1

FY 2024	Northwest Shelf (Horizontal)	5	5	—
	Central Basin Platform (Horizontal)	17	16	1
	Central Basin Platform (Vertical)	22	22	—
	Total	44	43	1

⁽¹⁾ First quarter total and full year total do not include one salt water disposal (“SWD”) well completed in the Central Basin Platform
⁽²⁾ Note that the DUC wells represent period-end counts rather than period-to-date totals.

Full Year 2024 Summary Financial Review

The Company reported net income for full year 2024 of $67.5 million, or $0.34 per diluted share, and Adjusted Net Income of $69.5 million, or $0.35 per diluted share. For full year 2023, Ring reported net income of $104.9 million, or $0.54 per diluted share, and Adjusted Net Income of $100.5 million, or $0.51 per diluted share.

In full year 2024, the Company generated Adjusted EBITDA of $233.3 million, Adjusted Free Cash Flow of $43.6 million, and Adjusted Cash Flow from Operations of $195.3 million — representing a four percent or less decline in all three metrics from full year 2023, despite an almost seven percent decrease in overall realized commodity pricing.

Revenues totaled $366.3 million for 2024 compared to $361.1 million in 2023, with the increase driven by higher sales volumes partially offset by lower overall realized commodity prices.

Net sales for full year 2024 were a record 19,648 Boe/d, or 7,191,054 Boe, comprised of 4,861,628 Bbls of oil, 6,423,674 Mcf of natural gas, and 1,258,814 Bbls of NGLs. Full year 2023 net sales averaged 18,119 Boe/d, or 6,613,321 Boe, which included 4,579,942 Bbls of oil, 6,339,158 Mcf of natural gas, and 976,852 Bbls of NGLs. The increase in sales volumes was primarily associated with a full year of production from the Founders Acquisition that closed in August 2023, as well as strong organic growth from the Company’s targeted capital spending program.

For full year 2024, the Company’s realized crude oil sales price was $74.87 per barrel, the natural gas sales price was $(1.44) per Mcf, and the NGLs sales price was $9.23 per barrel. The combined average sales price for full year 2024 was $50.94 per Boe compared to $54.60 per Boe for full year 2023.

For the full year 2024, LOE was $78.3 million, or $10.89 per Boe (substantially at the midpoint of guidance of $10.70 to $11.00 per Boe). The increase in LOE on an absolute basis from full year 2023 was primarily due to the full year of expenses from the assets acquired with the Founders Acquisition (closed in August 2023) which contributed to the previously discussed 9% increase in production. Also affecting absolute LOE were higher activity levels, partially offset by the Company’s ongoing cost reduction and increased efficiency initiatives.

For the full year 2024, G&A was $29.6 million, or $4.12 per Boe, compared to $29.2 million, or $4.41 per Boe for full year 2023. G&A, excluding share-based compensation, was $24.1 million, or $3.36 per Boe, compared to $20.4 million, or $3.08 per Boe for full year 2023. Excluding Transaction Costs, full year 2024 G&A, net of share-based compensation, was $3.35 per Boe. The increase from full year 2023 was primarily associated with higher total compensation levels driven by higher activity levels in 2024 and a non-recurring employee retention tax credit in 2023, with the overall net increase partially offset by a $3.3 million year-over-year reduction in share-based compensation.

Recently Announced Proposed Accretive Bolt-On Acquisition

On February 25, 2025, the Company entered into an agreement to acquire Lime Rock’s CBP assets for $90 million in cash with $80 million due at closing and $10 million due on the nine month anniversary of closing, and approximately 7.4 million shares of our common stock. The purchase price is subject to customary purchase price adjustments. The transaction has an effective date of October 1, 2024, and is expected to close by the end of the first quarter of 2025.

Lime Rock’s CBP acreage is in Andrews County, Texas, where the majority of the acreage directly offsets Ring’s core Shafter Lake operations, and the remaining acreage is prospective for multiple horizontal targets and exposes the Company to new active plays. The transaction represents another opportunity for the Company to seamlessly integrate strategic, high-quality assets with Ring’s existing operations and create shareholder value through improved operations and synergy capture.

The Lime Rock position has been a key target for Ring as the Company has historically sought to consolidate producing assets in core counties in the CBP defined by shallow declines, high margin production and undeveloped inventory that immediately competes for capital. Additionally, these assets add significant near-term opportunities for field level optimization and cost savings that are core competencies of Ring’s operating team.

2025 Capital Investment, Sales Volumes, and Operating Expense Guidance

In January, the Company commenced its 2025 development program with one rig drilling horizontal wells followed by another rig drilling vertical wells. During the first quarter, this disciplined capital program is intended to achieve a satisfactory leverage ratio upon the closing of the Lime Rock transaction. The Company intends to utilize a phased (versus continuous) capital drilling program to maximize free cash flow and retain the flexibility to respond to changes in commodity prices and other market conditions.

For full year 2025, Ring expects total capital spending of $138 million to $170 million that includes a balanced and capital efficient combination of drilling, completing and placing on production 27 to 32 Hz and 15 to 22 vertical wells across the Company’s asset portfolio. Additionally, the full year capital spending program includes funds for the drilling of targeted well recompletions, capital workovers, infrastructure upgrades, reactivations, leasing costs, ESG improvements, and the drilling of approximately three SWD wells, in addition to the Company’s pro-rata capital spending for non-operated drilling, completion, and capital workover activities.

All projects and estimates are based on assumed WTI oil prices of $65 to $75 per barrel and Henry Hub prices of $2.00 to $4.00 per Mcf.

Based on the $154 million midpoint of spending guidance, the Company expects the following estimated allocation of capital investment:

73% for drilling, completion, and related infrastructure;
19% for recompletions and capital workovers;
5% for environmental and emission reducing facility upgrades; and
3% for land and non-operated capital.

The Company remains focused on continuing to generate Adjusted Free Cash Flow. All 2025 planned capital expenditures will be fully funded by cash on hand and cash from operations, and excess Adjusted Free Cash Flow is currently targeted for further debt reduction.

The Company currently forecasts full year 2025 oil sales volumes of 13,600 to 14,200 Bo/d compared with full year 2024 oil sales volumes of 13,283 Bo/d, with the midpoint of guidance reflecting almost a 5% increase from last year.

The guidance in the table below represents the Company’s current good faith estimate of the range of likely future results for the first quarter and full year of 2025 and assumes the closing of the Lime Rock transaction at the end of the first quarter of 2025. Guidance could be affected by the factors discussed below in the “Safe Harbor Statement” section. LOE per Boe assumes the full operating costs of the Lime Rock assets before anticipated synergies and cost reductions after the assets are integrated.

	Q1 2025	Q2 2025	Q3 2025	Q4 2025	FY 2025

Sales Volumes:
Total Oil (Bo/d)	11,700 – 12,000	13,700 – 14,700	14,000 – 15,000	14,400 – 15,400	13,600 – 14,200
Midpoint (Bo/d)	11,850	14,200	14,500	14,900	13,900
Total (Boe/d)	18,000-18,500	20,500 – 22,500	20,700 – 22,700	21,000 – 23,000	20,000 – 22,000
Midpoint (Boe/d)	18,250	21,500	21,700	22,000	21,000
Oil (%)	65%	66%	67%	68%	66%
NGLs (%)	19%	18%	18%	18%	18%
Gas (%)	16%	16%	15%	14%	16%

Capital Program:
Capital spending⁽¹⁾ (millions)	$26 – $34	$34 – $42	$46 – $54	$32 – $40	$138 – $170
Midpoint (millions)	$30	$38	$50	$36	$154
New Hz wells drilled	4 – 5	8 – 9	11 – 13	4 – 5	27 – 32
New Vertical wells drilled	3 – 4	3 – 5	4 – 6	5 – 7	15 – 22
Completion of DUC wells	0	1	0	0	1
Wells completed and online	7 – 9	12 – 15	15 – 19	9 – 12	43 – 55

Operating Expenses:
LOE (per Boe)	$11.75 – $12.25	$11.50 – $12.50	$11.25 – $12.25	$11.00 – $12.00	$11.25 – $12.25
Midpoint (per Boe)	$12.00	$12.00	$11.75	$11.50	$11.75

⁽¹⁾ In addition to Company-directed drilling and completion activities, the capital spending outlook includes funds for targeted well recompletions, capital workovers, infrastructure upgrades and well reactivations. Also included is anticipated spending for leasing acreage and non-operated drilling, completion, capital workovers, and ESG improvements.

Year-End 2024 Proved Reserves

The Company’s year-end 2024 SEC proved reserves were 134.2 MMBoe, up 3% compared to 129.8 MMBoe at year-end 2023. During 2024, Ring recorded reserve additions of 16.0 MMBoe for extensions, discoveries and improved recovery. Offsetting these additions were 1.2 MMBoe related to the sale of non-core assets, 7.2 MMBoe of production, and 3.2 MMBoe of revisions related to changes in pricing and performance.

The SEC twelve-month first day of the month average prices used for year-end 2024 were $71.96 per barrel of crude oil and $2.130 per MMBtu of natural gas, both before adjustment for quality, transportation, fees, energy content, and regional price differentials, while for year-end 2023 they were $74.70 per barrel of crude oil and $2.637 per MMBtu of natural gas — a decrease of four percent and two percent, respectively.

Year-end 2024 SEC proved reserves were comprised of approximately 60% crude oil, 19% natural gas, and 21% natural gas liquids. At year end, approximately 69% of 2024 proved reserves were classified as proved developed and 31% as proved undeveloped. This is compared to year-end 2023 when approximately 68% of proved reserves were classified as proved developed and 32% were classified as proved undeveloped. The Company’s year-end 2024 proved reserves were prepared by Cawley, Gillespie & Associates, Inc., and independent petroleum engineering firm.

The PV-10 value at year-end 2024 was $1,462.8 million versus $1,647.0 million at the end of 2023.

	Oil (Bbl)		Gas (Mcf)		Natural Gas Liquids (Bbl)		Net (Boe)		PV-10⁽¹⁾

Balance, December 31, 2023	82,141,277		146,396,322		23,218,564		129,759,229		$	1,647,031,127

Purchase of minerals in place	—		—		—		—
Extensions, discoveries and improved recovery	11,495,236		10,630,769		2,738,451		16,005,482
Sales of minerals in place	(1,140,568	)	(56,020	)	(16,361	)	(1,166,266	)
Production	(4,861,628	)	(6,423,674	)	(1,258,814	)	(7,191,054	)
Revisions of previous quantity estimates	(6,730,246	)	(730,235	)	3,621,245		(3,230,707	)

Balance, December 31, 2024	80,904,071		149,817,162		28,303,085		134,176,684		$	1,462,827,136

⁽¹⁾ PV-10 is a non-GAAP financial measure and is derived from the Standardized Measure of Discounted Futures Net Cash Flows, which is the most directly comparable generally accepted accounting principles (“GAAP”) measure.

In accordance with guidelines established by the SEC, estimated proved reserves as of December 31, 2024 were determined to be economically producible under existing economic conditions, which requires the use of the 12-month average commodity price for each product, calculated as the unweighted arithmetic average of the first-day-of-the-month price for the year ended December 31, 2024. The SEC average prices used for year-end 2024 were $71.96 per barrel of crude oil (WTI) and $2.130 per MMBtu of natural gas (Henry Hub), both before adjustment for quality, transportation, fees, energy content, and regional price differentials. Such prices were held constant throughout the estimated lives of the reserves. Future production and development costs are based on year-end costs with no escalations.

Standardized Measure of Discounted Future Net Cash Flows

Ring’s standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves and changes in the standardized measure as described below were prepared in accordance with GAAP.

*As of December 31,*		2024			2023

Future cash inflows	$	6,165,487,616		$	6,622,410,752
Future production costs		(2,432,555,200	)		(2,413,303,488	)
Future development costs ⁽¹⁾		(536,825,664	)		(562,063,424	)
Future income taxes		(465,768,645	)		(548,664,988	)
Future net cash flows		2,730,338,107			3,098,378,852
10% annual discount for estimated timing of cash flows		(1,497,401,764	)		(1,699,193,661	)

Standardized Measure of Discounted Future Net Cash Flows	$	1,232,936,343		$	1,399,185,191

(1) Future development costs include not only development costs but also future asset retirement costs.

Reconciliation of PV-10 to Standardized Measure

PV-10 is derived from the Standardized Measure of Discounted Future Net Cash Flows (“Standardized Measure”), which is the most directly comparable GAAP financial measure for proved reserves calculated using SEC pricing. PV-10 is a computation of the Standardized Measure on a pre-tax basis. PV-10 is equal to the Standardized Measure at the applicable date, before deducting future income taxes, discounted at 10 percent. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may utilize the measure as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. Moreover, GAAP does not provide a measure of estimated future net cash flows for reserves other than proved reserves or for reserves calculated using prices other than SEC prices. We use this measure when assessing the potential return on investment related to our oil and natural gas properties. PV-10, however, is not a substitute for the Standardized Measure. Our PV-10 measure and the Standardized Measure do not purport to represent the fair value of our oil and natural gas reserves.

The following table reconciles the PV-10 value of the Company’s estimated proved reserves as of December 31, 2024 to the Standardized Measure:

SEC Pricing Proved Reserves
Standardized Measure Reconciliation
Present Value of Estimated Future Net Revenues (PV-10)	$	1,462,827,136
Future Income Taxes, Discounted at 10%		229,890,793
Standardized Measure of Discounted Future Net Cash Flows	$	1,232,936,343

Conference Call Information

Ring will hold a conference call on Thursday, March 6, 2025 at 11:00 a.m. ET (10:00 a.m. CT) to discuss its fourth quarter and full year 2024 operational and financial results. An updated investor presentation will be posted to the Company’s website prior to the conference call.

To participate in the conference call, interested parties should dial 833-953-2433 at least five minutes before the call is to begin. Please reference the “Ring Energy 2024 Earnings Conference Call”. International callers may participate by dialing 412-317-5762. The call will also be webcast and available on Ring’s website at www.ringenergy.com under “Investors” on the “News & Events” page. An audio replay will also be available on the Company’s website following the call.

About Ring Energy, Inc.

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

Safe Harbor Statement

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. Additionally, forward-looking statements include statements about the expected benefits to the Company and its shareholders from the proposed Lime Rock acquisition and the anticipated completion of the Lime Rock acquisition or the timing thereof. When used in this release, the words “could,” “may,” “will,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “guidance,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to: declines in oil, natural gas liquids or natural gas prices; the level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities; the timing of exploration and development expenditures; inaccuracies of reserve estimates or assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; impacts to financial statements as a result of impairment write-downs; risks related to level of indebtedness and periodic redeterminations of the borrowing base and interest rates under the Company’s credit facility; Ring’s ability to generate sufficient cash flows from operations to meet the internally funded portion of its capital expenditures budget; the impacts of hedging on results of operations; and Ring’s ability to replace oil and natural gas reserves. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2024, and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company’s ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the Company, and other factors that may be more fully described in additional documents set forth by the Company. Should one or more of the risks or uncertainties described in this release occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this release are expressly qualified in their entirety by this safe harbor statement. This safe harbor statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Ring undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

Contact Information

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

RING ENERGY, INC. Condensed Statements of Operations

	(Unaudited)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Oil, Natural Gas, and Natural Gas Liquids Revenues	$	83,440,546		$	89,244,383		$	99,942,718		$	366,327,414		$	361,056,001

Costs and Operating Expenses
Lease operating expenses		20,326,216			20,315,282			18,732,082			78,310,949			70,158,227
Gathering, transportation and processing costs		130,230			102,420			464,558			506,333			457,573
Ad valorem taxes		2,421,595			2,164,562			1,637,722			8,069,064			6,757,841
Oil and natural gas production taxes		3,857,147			4,203,851			4,961,768			16,116,565			18,135,336
Depreciation, depletion and amortization		24,548,849			25,662,123			24,556,654			98,702,843			88,610,291
Asset retirement obligation accretion		323,085			354,195			351,786			1,380,298			1,425,686
Operating lease expense		175,090			175,091			175,090			700,362			541,801
General and administrative expense		8,035,977			6,421,567			8,164,799			29,640,300			29,188,755

Total Costs and Operating Expenses		59,818,189			59,399,091			59,044,459			233,426,714			215,275,510

Income from Operations		23,622,357			29,845,292			40,898,259			132,900,700			145,780,491

Other Income (Expense)
Interest income		124,765			143,704			96,984			491,946			257,155
Interest (expense)		(10,112,496	)		(10,754,243	)		(11,603,892	)		(43,311,810	)		(43,926,732	)
Gain (loss) on derivative contracts		(6,254,448	)		24,731,625			29,250,352			(2,365,917	)		2,767,162
Gain (loss) on disposal of assets		—			—			44,981			89,693			(87,128	)
Other income		80,970			—			72,725			106,656			198,935
Net Other Income (Expense)		(16,161,209	)		14,121,086			17,861,150			(44,989,432	)		(40,790,608	)

Income Before Provision for Income Taxes		7,461,148			43,966,378			58,759,409			87,911,268			104,989,883

Provision for Income Taxes		(1,803,629	)		(10,087,954	)		(7,862,930	)		(20,440,954	)		(125,242	)

Net Income	$	5,657,519		$	33,878,424		$	50,896,479		$	67,470,314		$	104,864,641

Basic Earnings per Share	$	0.03		$	0.17		$	0.26		$	0.34		$	0.55
Diluted Earnings per Share	$	0.03		$	0.17		$	0.26		$	0.34		$	0.54

Basic Weighted-Average Shares Outstanding		198,166,543			198,177,046			195,687,725			197,937,683			190,589,143
Diluted Weighted-Average Shares Outstanding		200,886,010			200,723,863			197,848,812			200,277,380			195,364,850

RING ENERGY, INC. Condensed Operating Data (Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2024		2024		2023		2024		2023

Net sales volumes:
Oil (Bbls)	1,188,272		1,214,788		1,254,619		4,861,628		4,579,942
Natural gas (Mcf)	1,683,793		1,705,027		1,613,102		6,423,674		6,339,158
Natural gas liquids (Bbls)	339,589		350,975		261,020		1,258,814		976,852
Total oil, natural gas and natural gas liquids (Boe)⁽¹⁾	1,808,493		1,849,934		1,784,490		7,191,054		6,613,321

% Oil	66	%	66	%	70	%	68	%	69	%
% Natural gas	15	%	15	%	15	%	15	%	16	%
% Natural gas liquids	19	%	19	%	15	%	17	%	15	%

Average daily sales volumes:
Oil (Bbls/d)	12,916		13,204		13,637		13,283		12,548
Natural gas (Mcf/d)	18,302		18,533		17,534		17,551		17,368
Natural gas liquids (Bbls/d)	3,691		3,815		2,837		3,439		2,676
Average daily equivalent sales (Boe/d)	19,658		20,108		19,397		19,648		18,119

Average realized sales prices:
Oil ($/Bbl)	68.98		74.43		77.33		74.87		76.21
Natural gas ($/Mcf)	(0.96	)	(2.26	)	(0.12	)	(1.44	)	0.05
Natural gas liquids ($/Bbls)	9.08		7.66		11.92		9.23		11.95
Barrel of oil equivalent ($/Boe)	46.14		48.24		56.01		50.94		54.60

Average costs and expenses per Boe ($/Boe):
Lease operating expenses	11.24		10.98		10.50		10.89		10.61
Gathering, transportation and processing costs	0.07		0.06		0.26		0.07		0.07
Ad valorem taxes	1.34		1.17		0.92		1.12		1.02
Oil and natural gas production taxes	2.13		2.27		2.78		2.24		2.74
Depreciation, depletion and amortization	13.57		13.87		13.76		13.73		13.40
Asset retirement obligation accretion	0.18		0.19		0.20		0.19		0.22
Operating lease expense	0.10		0.09		0.10		0.10		0.08
G&A (including share-based compensation)	4.44		3.47		4.58		4.12		4.41
G&A (excluding share-based compensation)	3.52		3.45		3.20		3.36		3.08
G&A (excluding share-based compensation and transaction costs)	3.51		3.45		3.00		3.35		3.01

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

RING ENERGY, INC. Condensed Balance Sheets

As of December 31,		2024			2023
ASSETS
Current Assets
Cash and cash equivalents	$	1,866,395		$	296,384
Accounts receivable		36,172,316			38,965,002
Joint interest billing receivables, net		1,083,164			2,422,274
Derivative assets		5,497,057			6,215,374
Inventory		4,047,819			6,136,935
Prepaid expenses and other assets		1,781,341			1,874,850
Total Current Assets		50,448,092			55,910,819
Properties and Equipment
Oil and natural gas properties, full cost method		1,809,309,848			1,663,548,249
Financing lease asset subject to depreciation		4,634,556			3,896,316
Fixed assets subject to depreciation		3,389,907			3,228,793
Total Properties and Equipment		1,817,334,311			1,670,673,358
Accumulated depreciation, depletion and amortization		(475,212,325	)		(377,252,572	)
Net Properties and Equipment		1,342,121,986			1,293,420,786
Operating lease asset		1,906,264			2,499,592
Derivative assets		5,473,375			11,634,714
Deferred financing costs		8,149,757			13,030,481
Total Assets	$	1,408,099,474		$	1,376,496,392

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	95,729,261		$	104,064,124
Income tax liability		328,985			—
Financing lease liability		906,119			956,254
Operating lease liability		648,204			568,176
Derivative liabilities		6,410,547			7,520,336
Notes payable		496,397			533,734
Asset retirement obligations		517,674			165,642
Total Current Liabilities		105,037,187			113,808,266

Non-current Liabilities
Deferred income taxes		28,591,802			8,552,045
Revolving line of credit		385,000,000			425,000,000
Financing lease liability, less current portion		647,078			906,330
Operating lease liability, less current portion		1,405,837			2,054,041
Derivative liabilities		2,912,745			11,510,368
Asset retirement obligations		25,864,843			28,082,442
Total Liabilities		549,459,492			589,913,492
Commitments and contingencies
Stockholders’ Equity
Preferred stock – $0.001 par value; 50,000,000 shares authorized; no shares issued or outstanding		—			—
Common stock – $0.001 par value; 450,000,000 shares authorized; 198,561,378 shares and 196,837,001 shares issued and outstanding, respectively		198,561			196,837
Additional paid-in capital		800,419,719			795,834,675
Retained earnings (Accumulated deficit)		58,021,702			(9,448,612	)
Total Stockholders’ Equity		858,639,982			786,582,900
Total Liabilities and Stockholders’ Equity	$	1,408,099,474		$	1,376,496,392

RING ENERGY, INC. Condensed Statements of Cash Flows

	(Unaudited)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Cash Flows From Operating Activities
Net income	$	5,657,519		$	33,878,424		$	50,896,479		$	67,470,314		$	104,864,641
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		24,548,849			25,662,123			24,556,654			98,702,843			88,610,291
Asset retirement obligation accretion		323,085			354,195			351,786			1,380,298			1,425,686
Amortization of deferred financing costs		1,299,078			1,226,881			1,221,479			4,969,174			4,920,714
Share-based compensation		1,672,320			32,087			2,458,682			5,506,017			8,833,425
Credit loss expense		(26,747	)		8,817			92,142			160,847			134,007
(Gain) loss on disposal of assets		—			—			—			(89,693	)		—
Deferred income tax expense (benefit)		1,723,338			10,005,502			7,735,437			19,935,413			(425,275	)
Excess tax expense (benefit) related to share-based compensation		9,011			7,553			319,541			104,344			478,304
(Gain) loss on derivative contracts		6,254,448			(24,731,625	)		(29,250,352	)		2,365,917			(2,767,162	)
Cash received (paid) for derivative settlements, net		745,104			(1,882,765	)		(3,255,192	)		(5,193,673	)		(9,084,920	)
Changes in operating assets and liabilities:
Accounts receivable		349,474			5,529,542			6,825,601			3,594,504			1,154,085
Inventory		580,161			1,148,418			(588,100	)		2,089,116			3,113,782
Prepaid expenses and other assets		295,555			545,529			158,163			93,509			226,688
Accounts payable		4,462,089			(225,196	)		(4,952,335	)		(5,076,738	)		(1,451,422	)
Asset retirement obligation		(613,603	)		(222,553	)		(836,778	)		(1,588,480	)		(1,862,385	)
Net Cash Provided by Operating Activities		47,279,681			51,336,932			55,733,207			194,423,712			198,170,459

Cash Flows From Investing Activities
Payments for the Stronghold Acquisition		—			—			—			—			(18,511,170	)
Payments for the Founders Acquisition		—			—			(12,324,388	)		—			(62,227,145	)
Payments to purchase oil and natural gas properties		(1,423,483	)		(164,481	)		(557,323	)		(2,210,826	)		(2,162,585	)
Payments to develop oil and natural gas properties		(36,386,055	)		(42,099,874	)		(39,563,282	)		(153,945,456	)		(152,559,314	)
Payments to acquire or improve fixed assets subject to depreciation		—			(33,938	)		(282,519	)		(185,524	)		(492,317	)
Proceeds from sale of fixed assets subject to depreciation		—			—			(1	)		10,605			332,229
Proceeds from divestiture of oil and natural gas properties		121,232			—			1,500,000			121,232			1,554,558
Proceeds from sale of Delaware properties		—			—			(7,993	)		—			7,600,699
Proceeds from sale of New Mexico properties		—			—			(420,745	)		(144,398	)		3,891,757
Proceeds from sale of CBP vertical wells		—			5,500,000			—			5,500,000			—
Net Cash Used in Investing Activities		(37,688,306	)		(36,798,293	)		(51,656,251	)		(150,854,367	)		(222,573,288	)

Cash Flows From Financing Activities
Proceeds from revolving line of credit		22,000,000			27,000,000			46,000,000			130,000,000			225,000,000
Payments on revolving line of credit		(29,000,000	)		(42,000,000	)		(49,000,000	)		(170,000,000	)		(215,000,000	)
Proceeds from issuance of common stock from warrant exercises		—			—			—			—			12,301,596
Payments for taxes withheld on vested restricted shares, net		—			(17,273	)		(225,788	)		(919,249	)		(520,153	)
Proceeds from notes payable		58,774			—			72,442			1,560,281			1,637,513
Payments on notes payable		(475,196	)		(442,976	)		(488,776	)		(1,597,618	)		(1,603,659	)
Payment of deferred financing costs		(42,746	)		—			(52,222	)		(88,450	)		(52,222	)
Reduction of financing lease liabilities		(265,812	)		(257,202	)		(224,809	)		(954,298	)		(776,388	)
Net Cash Provided by (Used in) Financing Activities		(7,724,980	)		(15,717,451	)		(3,919,153	)		(41,999,334	)		20,986,687

Net Increase (Decrease) in Cash		1,866,395			(1,178,812	)		157,803			1,570,011			(3,416,142	)
Cash at Beginning of Period		—			1,178,812			138,581			296,384			3,712,526
Cash at End of Period	$	1,866,395		$	—		$	296,384		$	1,866,395		$	296,384

RING ENERGY, INC.
Financial Commodity Derivative Positions
As of December 31, 2024

The following tables reflect the details of current derivative contracts as of December 31, 2024 (quantities are in barrels (Bbl) for the oil derivative contracts and in million British thermal units (MMBtu) for the natural gas derivative contracts):

	Oil Hedges (WTI)
	Q1 2025		Q2 2025		Q3 2025		Q4 2025		Q1 2026		Q2 2026		Q3 2026		Q4 2026

Swaps:
Hedged volume (Bbl)		193,397		151,763		351,917		141,755		477,350		457,101		59,400		423,000
Weighted average swap price	$	68.68	$	68.53	$	71.41	$	69.13	$	70.16	$	69.38	$	66.70	$	66.70

Two-way collars:
Hedged volume (Bbl)		474,750		464,100		225,400		404,800		—		—		379,685		—
Weighted average put price	$	57.06	$	60.00	$	65.00	$	60.00	$	—	$	—	$	60.00	$	—
Weighted average call price	$	75.82	$	69.85	$	78.91	$	75.68	$	—	$	—	$	72.50	$	—

	Gas Hedges (Henry Hub)
	Q1 2025		Q2 2025		Q3 2025		Q4 2025		Q1 2026		Q2 2026		Q3 2026		Q4 2026

NYMEX Swaps:
Hedged volume (MMBtu)		451,884		647,200		330,250		11,400		26,600		555,300		17,400		513,300
Weighted average swap price	$	3.77	$	3.46	$	3.72	$	3.74	$	3.74	$	3.39	$	3.74	$	3.74

Two-way collars:
Hedged volume (MMBtu)		22,016		27,300		308,200		598,000		553,500		—		515,728		—
Weighted average put price	$	3.00	$	3.00	$	3.00	$	3.00	$	3.50	$	—	$	3.00	$	—
Weighted average call price	$	4.40	$	4.15	$	4.75	$	4.15	$	5.03	$	—	$	3.93	$	—

	Oil Hedges (basis differential)
	Q1 2025		Q2 2025		Q3 2025		Q4 2025		Q1 2026		Q2 2026		Q3 2026		Q4 2026

Argus basis swaps:
Hedged volume (Bbl)		177,000		273,000		276,000		276,000		—		—		—		—
Weighted average spread price ⁽¹⁾	$	1.00	$	1.00	$	1.00	$	1.00	$	—	$	—	$	—	$	—

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

RING ENERGY, INC.
Non-GAAP Financial Information

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

Reconciliation of Net Income to Adjusted Net Income

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

	(Unaudited for All Periods)
	Three Months Ended																		Twelve Months Ended
	December 31,						September 30,						December 31,						December 31,						December 31,
		2024						2024						2023						2024						2023
	Total			Per share – diluted			Total			Per share – diluted			Total			Per share – diluted			Total			Per share – diluted			Total			Per share – diluted
Net Income	$	5,657,519		$	0.03		$	33,878,424		$	0.17		$	50,896,479		$	0.26		$	67,470,314		$	0.34		$	104,864,641		$	0.54

Share-based compensation		1,672,320			0.01			32,087			—			2,458,682			0.01			5,506,017			0.03			8,833,425			0.05
Unrealized loss (gain) on change in fair value of derivatives		6,999,552			0.03			(26,614,390	)		(0.13	)		(32,505,544	)		(0.16	)		(2,827,756	)		(0.02	)		(11,852,082	)		(0.07	)
Transaction costs – executed A&D		21,017			—			—			—			354,616			—			24,556			—			417,166			—
Tax impact on adjusted items		(2,008,740	)		(0.01	)		6,132,537			0.03			(35,631	)		—			(628,405	)		—			(1,788,248	)		(0.01	)

Adjusted Net Income	$	12,341,668		$	0.06		$	13,428,658		$	0.07		$	21,168,602		$	0.11		$	69,544,726		$	0.35		$	100,474,902		$	0.51

Diluted Weighted-Average Shares Outstanding		200,886,010						200,723,863						197,848,812						200,277,380						195,364,850

Adjusted Net Income per Diluted Share	$	0.06					$	0.07					$	0.11					$	0.35					$	0.51

Reconciliation of Net Income to Adjusted EBITDA

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

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Net Income	$	5,657,519		$	33,878,424		$	50,896,479		$	67,470,314		$	104,864,641

Interest expense, net		9,987,731			10,610,539			11,506,908			42,819,864			43,669,577
Unrealized loss (gain) on change in fair value of derivatives		6,999,552			(26,614,390	)		(32,505,544	)		(2,827,756	)		(11,852,082	)
Income tax (benefit) expense		1,803,629			10,087,954			7,862,930			20,440,954			125,242
Depreciation, depletion and amortization		24,548,849			25,662,123			24,556,654			98,702,843			88,610,291
Asset retirement obligation accretion		323,085			354,195			351,786			1,380,298			1,425,686
Transaction costs – executed A&D		21,017			—			354,616			24,556			417,166
Share-based compensation		1,672,320			32,087			2,458,682			5,506,017			8,833,425
Loss (gain) on disposal of assets		—			—			(44,981	)		(89,693	)		87,128
Other income		(80,970	)		—			(72,725	)		(106,656	)		(198,935	)

Adjusted EBITDA	$	50,932,732		$	54,010,932		$	65,364,805		$	233,320,741		$	235,982,139

Adjusted EBITDA Margin		61	%		61	%		65	%		64	%		65	%

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

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

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Net Cash Provided by Operating Activities	$	47,279,681		$	51,336,932		$	55,733,207		$	194,423,712		$	198,170,459
Adjustments – Statements of Cash Flows
Changes in operating assets and liabilities		(5,073,676	)		(6,775,740	)		(606,551	)		888,089			(1,180,748	)
Transaction costs – executed A&D		21,017			—			354,616			24,556			417,166
Income tax expense (benefit) – current		71,280			74,899			(192,048	)		401,197			72,213
Capital expenditures		(37,633,168	)		(42,691,163	)		(38,817,080	)		(151,946,171	)		(151,969,735	)
Proceeds from divestiture of equipment for oil and natural gas properties		121,232			—			—			121,232			54,558
Credit loss expense		26,747			(8,817	)		(92,142	)		(160,847	)		(134,007	)
Loss (gain) on disposal of assets		—			—			(44,981	)		—			87,128
Other income		(80,970	)		—			(72,725	)		(106,656	)		(198,935	)

Adjusted Free Cash Flow	$	4,732,143		$	1,936,111		$	16,262,296		$	43,645,112		$	45,318,099

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Adjusted EBITDA	$	50,932,732		$	54,010,932		$	65,364,805		$	233,320,741		$	235,982,139

Net interest expense (excluding amortization of deferred financing costs)		(8,688,653	)		(9,383,658	)		(10,285,429	)		(37,850,690	)		(38,748,863	)
Capital expenditures		(37,633,168	)		(42,691,163	)		(38,817,080	)		(151,946,171	)		(151,969,735	)
Proceeds from divestiture of equipment for oil and natural gas properties		121,232			—			—			121,232			54,558

Adjusted Free Cash Flow	$	4,732,143		$	1,936,111		$	16,262,296		$	43,645,112		$	45,318,099

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

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

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,		December 31,
		2024			2024			2023			2024		2023

Net Cash Provided by Operating Activities	$	47,279,681		$	51,336,932		$	55,733,207		$	194,423,712	$	198,170,459

Changes in operating assets and liabilities		(5,073,676	)		(6,775,740	)		(606,551	)		888,089		(1,180,748	)

Adjusted Cash Flow from Operations	$	42,206,005		$	44,561,192		$	55,126,656		$	195,311,801	$	196,989,711

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

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

	(Unaudited for All Periods)
	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
		2024		2024		2023		2024		2023

General and administrative expense (G&A)	$	8,035,977	$	6,421,567	$	8,164,799	$	29,640,300	$	29,188,755
Shared-based compensation		1,672,320		32,087		2,458,682		5,506,017		8,833,425
G&A excluding share-based compensation		6,363,657		6,389,480		5,706,117		24,134,283		20,355,330
Transaction costs – executed A&D		21,017		—		354,616		24,556		417,166
G&A excluding share-based compensation and transaction costs	$	6,342,640	$	6,389,480	$	5,351,501	$	24,109,727	$	19,938,164

Calculation of Leverage Ratio

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

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

Also set forth in our existing senior revolving credit facility is the maximum permitted Leverage Ratio of 3.00. The following table shows the leverage ratio calculation for the Company’s most recent fiscal quarter.

	(Unaudited)
	Three Months Ended
	March 31,			June 30,			September 30,			December 31,		Last Four Quarters
		2024			2024			2024			2024	Last Four Quarters
Consolidated EBITDAX Calculation:
Net Income (Loss)	$	5,515,377		$	22,418,994		$	33,878,424		$	5,657,519	$	67,470,314
Plus: Consolidated interest expense		11,420,400			10,801,194			10,610,539			9,987,731		42,819,864
Plus: Income tax provision (benefit)		1,728,886			6,820,485			10,087,954			1,803,629		20,440,954
Plus: Depreciation, depletion and amortization		23,792,450			24,699,421			25,662,123			24,548,849		98,702,843
Plus: non-cash charges acceptable to Administrative Agent		19,627,646			1,664,064			(26,228,108	)		8,994,957		4,058,559
Consolidated EBITDAX	$	62,084,759		$	66,404,158		$	54,010,932		$	50,992,685	$	233,492,534
Plus: Pro Forma Acquired Consolidated EBITDAX	$	—		$	—		$	—		$	—	$	—
Less: Pro Forma Divested Consolidated EBITDAX		(124,084	)		(469,376	)		(600,460	)		77,819		(1,116,101	)
Pro Forma Consolidated EBITDAX	$	61,960,675		$	65,934,782		$	53,410,472		$	51,070,504	$	232,376,433

Non-cash charges acceptable to Administrative Agent:
Asset retirement obligation accretion	$	350,834		$	352,184		$	354,195		$	323,085
Unrealized loss (gain) on derivative assets		17,552,980			(765,898	)		(26,614,390	)		6,999,552
Share-based compensation		1,723,832			2,077,778			32,087			1,672,320
Total non-cash charges acceptable to Administrative Agent	$	19,627,646		$	1,664,064		$	(26,228,108	)	$	8,994,957

	As of
	December 31,
		2024
Leverage Ratio Covenant:
Revolving line of credit	$	385,000,000
Pro Forma Consolidated EBITDAX		232,376,433
Leverage Ratio		1.66
Maximum Allowed		≤ 3.00	x

Calculation of Current Ratio

The “Current Ratio” is calculated under our existing senior revolving credit facility and means as of any date, the ratio of (i) our Current Assets as of such date to (ii) our Current Liabilities as of such date. Based on its credit agreement, the Company defines Current Assets as all current assets, excluding non-cash assets under Accounting Standards Codification (“ASC”) 815, plus the unused line of credit. The Company’s non-cash current assets include the derivative asset marked to market value. Based on its credit agreement, the Company defines Current Liabilities as all liabilities, in accordance with GAAP, which are classified as current liabilities, including all indebtedness payable on demand or within one year, all accruals for federal or other taxes payable within such year, but excluding current portion of long-term debt required to be paid within one year, the aggregate outstanding principal balance and non-cash obligations under ASC 815.

Also set forth in our existing senior revolving credit facility is the minimum permitted Current Ratio of 1.00. The following table shows the current ratio calculation for the Company’s most recent fiscal quarter.

	As of
	December 31,
	2024
Current Assets	50,448,092
Less: Current derivative assets	5,497,057
Current Assets per Covenant	44,951,035
Revolver Availability (Facility less debt less LCs)	214,965,000
Current Assets per Covenant	259,916,035

Current Liabilities	105,037,187
Less: Current financing lease liability	906,119
Less: Current operating lease liability	648,204
Less: Current derivative liabilities	6,410,547
Current Liabilities per Covenant	97,072,317

Current Ratio	2.68
Minimum Allowed	> or = 1.00	x

Calculation of Cash Return on Capital Employed

The Company defines “Return on Capital Employed” or “CROCE” as Adjusted Cash Flow from Operations divided by average debt and shareholder equity for the period. Management believes that CROCE is useful to investors as a performance measure when comparing our profitability and the efficiency with which management has employed capital over time relative to other companies. CROCE is not considered to be an alternative to net income reported in accordance with GAAP.

CROCE (Cash Return on Capital Employed):	As of and for the
	twelve months ended
	December 31,			December 31,			December 31,
		2024			2023			2022

Total long term debt (i.e. revolving line of credit)	$	385,000,000		$	425,000,000		$	415,000,000
Total stockholders’ equity	$	858,639,982		$	786,582,900		$	661,103,391

Average debt	$	405,000,000		$	420,000,000		$	352,500,000
Average stockholders’ equity		822,611,441			723,843,146			480,863,799
Average debt and stockholders’ equity		1,227,611,441			1,143,843,146			833,363,799

Net Cash Provided by Operating Activities	$	194,423,712		$	198,170,459		$	196,976,729
Less change in WC (Working Capital)		(888,089	)		1,180,748			24,091,577
Adjusted Cash Flows From Operations (ACFFO)	$	195,311,801		$	196,989,711		$	172,885,152

CROCE (ACFFO)/(Average D+E)		15.9	%		17.2	%		20.7	%

All-In Cash Operating Costs

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

	(Unaudited for All Periods)
	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
		2024		2024		2023		2024		2023
All-In Cash Operating Costs:
Lease operating expenses (including workovers)		20,326,216		20,315,282		18,732,082		78,310,949		70,158,227
G&A excluding share-based compensation		6,363,657		6,389,480		5,706,117		24,134,283		20,355,330
Net interest expense (excluding amortization of deferred financing costs)		8,688,653		9,383,658		10,285,429		37,850,690		38,748,863
Operating lease expense		175,090		175,091		175,090		700,362		541,801
Oil and natural gas production taxes		3,857,147		4,203,851		4,961,768		16,116,565		18,135,336
Ad valorem taxes		2,421,595		2,164,562		1,637,722		8,069,064		6,757,841
Gathering, transportation and processing costs		130,230		102,420		464,558		506,333		457,573
All-in cash operating costs		41,962,588		42,734,344		41,962,766		165,688,246		155,154,971

Boe		1,808,493		1,849,934		1,784,490		7,191,054		6,613,321

All-in cash operating costs per Boe	$	23.20	$	23.10	$	23.52	$	23.04	$	23.46

Cash Operating Margin

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

	(Unaudited for All Periods)
	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
		2024		2024		2023		2024		2023
Cash Operating Margin
Realized revenues per Boe	$	46.14	$	48.24	$	56.01	$	50.94	$	54.60
All-in cash operating costs per Boe	$	23.20	$	23.10	$	23.52	$	23.04	$	23.46
Cash Operating Margin per Boe	$	22.94	$	25.14	$	32.49	$	27.90	$	31.14

¹ Non-GAAP financial measure. Please see “Non-GAAP Information” at the end of this release for details and reconciliations of GAAP to Non-GAAP.
² 2025 outlook includes the assets to be acquired in the Lime Rock Acquisition, with an anticipated closing date before the end of Q1 2025.

MIL-OSI: Arq Reports Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Delivered 10% YoY growth in FY 2024 revenue driven by PAC business turnaround and 7^thstraight quarter of double-digit YoY ASP growth

Grew FY 2024 gross margins by approximately 410 bps YoY to 36.2% and achieved 3^rdconsecutive quarter of positive Adjusted EBITDA, highlighting sustained foundational PAC business improvement

Exited 2024 with a stronger financial position, successfully completing a $30 million ABL facility which lowers financing costs, increases capacity, and enhances liquidity

Development of transformational GAC facility continues; first production anticipated prior to quarter end in line with ramp up to 25 million pounds nameplate capacity in H2 2025

GREENWOOD VILLAGE, Colo., March 05, 2025 (GLOBE NEWSWIRE) — Arq, Inc. (NASDAQ: ARQ) (the “Company” or “Arq”), a producer of activated carbon and other environmentally efficient carbon products for use in purification and sustainable materials, today announced its financial and operating results for the quarter and year ended December 31, 2024.

Financial Highlights

Generated revenue of $109.0 million in FY 2024 ($27.0 million in Q4 2024), up 10% over the prior year, driven largely by higher Average Sales Price (“ASP”), and positive changes in product mix
Increased ASP in Q4 2024 by approximately 14% over the prior year period, reflecting the 7^th consecutive quarter of double-digit YoY percentage growth in ASP
All powder activated carbon (“PAC”) contracts are now net cash producers following the successful resolution of all negative margin agreements as of December 31, 2024
Improved FY 2024 gross margin to 36.2% in FY 2024, up approximately 410 basis points vs. FY 2023, driven by higher revenue, continued focus on profitability over volume, and ongoing operational cost management
Gross margin in Q4 2024 of 36.3% vs. 49.8% in Q4 2023 – prior quarter included a $4.7 million take-or-pay benefit and other non-recurring items vs. $1.6 million in Q4 2024. Q4 2024 was otherwise largely in-line with last year’s performance despite two brief but unplanned outages at the Red River plant
Reported Net loss of ($5.1) million in FY 2024, reflecting a significant improvement over the prior year period Net loss of ($12.2) million; Q4 2024 Net loss of ($1.3) million vs. Net income of $3.3 million in Q4 2023
Adjusted EBITDA of $7.7 million in FY 2024 vs. Adjusted EBITDA loss of ($2.6) million in the prior year⁽¹⁾; Adjusted EBITDA of $3.3 million in Q4 2024 vs. $7.2 million in the prior year period⁽¹⁾
Announced successful closing of a $30 million asset backed lending (“ABL”) facility, enhancing financial flexibility and reducing our cost of capital
Exited 2024 with cash and restricted cash of $22.2 million, including $8.7 million restricted cash
Capital expenditures for FY 2024 totaled $85.2 million, including $80.0 million growth capital expenditures associated with Red River Phase I development

⁽¹⁾ Adjusted EBITDA is a non-GAAP financial measure. Please refer to the paragraph titled “Non-GAAP Measures” for the definitions of non-GAAP financial measures and reconciliations to GAAP measures included in this press release.

Recent Business Highlights

Construction at Red River facility complete with commissioning ongoing and first production of granular activated carbon (“GAC”) at Red River expected by end of Q1 2025; on target to achieve first deliveries in Q1 2025
Ramp up of Red River GAC production anticipated to run into H2 2025; expect to achieve full run rate capacity of 25 million pounds in H2 2025
Approximately 16 million pounds of our 25 million pound per year nameplate capacity contracted
In negotiations to contract remaining capacity at Red River. Multiple in-situ pilot tests are underway with customers, a required step before finalizing contracts, and in-line with the expected ramp-up schedule
Potential to increase Red River’s 25 million pound per year nameplate capacity by 10-20% still targeted; timing of upside production run-rate expected to be defined once nameplate capacity is achieved

Management Commentary

“These results reinforce the durability of our transformation within the foundational PAC business,” said Bob Rasmus, CEO of Arq. “Our 2024 results show a business which has been successfully turned around into a cash flow contributor. The annualized performance of the business has materially improved and is more profitable. With our third consecutive quarter of positive Adjusted EBITDA, the direction of travel is extremely positive. I also believe this is a business which can still be enhanced further.”

Mr. Rasmus continued, “The capex overrun we experienced in Q4 was extremely frustrating, and while we actively look for ways to mitigate this increase, we remain confident that its impact on our long-term profitability and returns profile should be negligible.”

“The imminent start of GAC production is of course a major milestone for us and will represent a huge achievement for the whole team,” added Mr. Rasmus. “While we want to remain cautious on the duration of our ramp-up to nameplate capacity, there should be no doubt we will be trying to get there as quickly as possible. By H2 2025 we believe we will have a solid, sustainably profitable PAC business being complimented by a high growth GAC business, representing our springboard to future growth.”

Full Year 2024 Results

Revenues totaled $109.0 million for full year 2024, compared to $99.2 million in the prior year. The revenue increase was primarily driven by improved ASP and product diversification into higher value end-markets.

Cost of revenues totaled $69.5 million for full year 2024, compared to $67.3 million in the prior year. While total costs increased year over year, costs as a percentage of total revenue were down. This decrease in costs as a percentage of revenue was related to a decrease in the cost to manufacture our products, which primarily resulted from decreased variable production costs on lower production volumes during 2024.

Gross margin was 36.2% for full year 2024, compared to 32.1% in the prior year. The increase was driven by higher revenue as detailed above, as well as cost reductions.

Other operating expenses were $41.4 million for full year 2024, compared to $45.2 million in the prior year. The reduction was mainly driven by expenses incurred during 2023 relating to the acquisition of Arq Limited (“Legacy Arq”) (the “Arq Acquisition”) that did not occur in 2024.

Operating loss totaled ($2.0) million for full year 2024, compared to an operating loss of ($13.3) million in the prior year. The reduction in loss was mainly driven by the factors referenced above.

Interest expense was $3.3 million for full year 2024, compared to $3.0 million in the prior year. The increase was primarily driven by interest expenses related to the $10 million term loan with CF Global (the “CFG Loan”) of $2.3 million and $2.0 million in 2024 and 2023, respectively. The CFG Loan had a higher principal balance from the accrual of interest payable (PIK) upon the termination date of the CFG Loan, which was paid in December 2024.

Income tax benefit was $0.2 million for full year 2024, compared to an income tax expense of $0.2 million in the prior year.

Net loss was ($5.1) million, or ($0.14) per diluted share for full year 2024, compared to Net loss of ($12.2) million, or ($0.42) per diluted share in the prior year. The reduction in net loss was driven by higher revenues and a reduction in costs.

Adjusted EBITDA was $7.7 million for full year 2024, compared to an Adjusted EBITDA loss of ($2.6) million in the prior year. The increase was mainly driven by our continued focus on increasing revenues while driving costs down. Additionally, an addback of Adjusted EBITDA during 2024 related to Loss on extinguishment of debt of $1.4 million, related to our repayment of the CFG Loan in December 2024 led to the increase. See the note below regarding the use of the non-GAAP financial measure Adjusted EBITDA and a reconciliation to the most comparable GAAP financial measure.

Fourth Quarter 2024 Results

Revenue totaled $27.0 million for Q4 2024, reflecting a decrease of 4% compared to $28.1 million in the prior year period. The reduction was driven predominantly by the one-off benefits delivered in Q4 2023 as a result of take-or-pay enforcement totaling $4.7 million vs. $1.6 million in the fourth quarter of 2024. Excluding these one-off items, revenue was up YoY. ASP for the fourth quarter of 2024 were up approximately 14% compared to prior year period, marking the 7^th consecutive quarter of double-digit year-over-year percentage growth in ASP.

Costs of revenue totaled $17.2 million for the fourth quarter of 2024, an increase of approximately 22% compared to $14.1 million in the prior year period.

Gross margin reduced to 36.3% for the fourth quarter of 2024, compared to 49.8% in the prior year period. The reduction in gross margin was driven by higher non-recurring revenues in Q4 2023 driven primarily by $3.1 million of additional take or pay enforcement in Q4 2023. Excluding this, Q4 2024 was largely in-line despite two brief but unplanned outages at our Red River plant.

Selling, general and administrative expenses totaled $6.0 million in Q4 2024, compared to $6.5 million in the prior year period. The reduction of approximately $0.5 million or 8% was primarily driven by a reduction in payroll and benefits as well as legal and consulting fees as the Company incurred incremental fees related to the Arq Acquisition in 2023.

Research and development costs totaled $0.7 million in Q4 2024, compared to $1.2 million in the prior year period. This reduction was primarily due to the Company performing product qualification testing in the prior year period with potential lead-adopters as part of its ongoing GAC contracting process in 2023.

Operating income was $0.4 million for the fourth quarter of 2024, compared to an operating income of $3.1 million in the prior year period. The reduction was mainly driven by the factors referenced above.

Net loss was ($1.3) million in the fourth quarter of 2024, or ($0.03) per diluted share, compared to a net income of $3.3 million, or $0.10 per diluted share, in the prior year period.

Adjusted EBITDA was $3.3 million for the fourth quarter of 2024, compared to Adjusted EBITDA of $7.2 million in the prior year period. The reduction was primarily driven by the significant one-off items discussed above. See note below regarding the use of the non-GAAP financial measure Adjusted EBITDA and a reconciliation to the most comparable GAAP financial measure.

Capex and Balance Sheet

Capital expenditures totaled $85.2 million for full year 2024, compared to $27.5 million in the prior year. The increase vs. the prior year was driven by the ongoing expansion of our Red River and Corbin facilities. The increase in total 2024 capex from previous guidance of $60 – $70 million was primarily driven by several factors, including $4 – $5 million related to contractor errors associated with small-bore piping needs, roughly $3 – $4 million related to maintaining a timely completion, and approximately $2 million related to the need for additional external professional services.

The Company raised approximately $26.7 million of net equity proceeds in its September 2024 underwritten public offering of common stock, which, combined with approximately $15 million raised in a private placement of common stock in May 2024, resulted in year-to-date net equity proceeds raised through Q4 2024 of approximately $41.6 million.

In December 2024, the Company closed a $30 million ABL credit facility (the “ABL Facility”) with MidCap Financial, a leading commercial finance company focused on middle market transactions. Total available borrowing capacity for the ABL Facility is determined by a borrowing base calculation based on a certain percentage of eligible accounts receivable and inventory.

Initial drawdown from the ABL Facility ($13.8 million as of December 31, 2024) was utilized to refinance Arq’s outstanding CFG Loan. Going forward, the Company expects that proceeds from the ABL Facility will be used to finance ongoing working capital requirements and potential capital expenditures related to the Company’s strategic growth investment at its Red River plant, as well as to support general corporate purposes.

Cash as of December 31, 2024, including $8.7 million of restricted cash, totaled $22.2 million, compared to $54.2 million as of December 31, 2023. The reduction was largely driven by increased expenditures relating to the Red River GAC expansion.

Total debt, inclusive of financing leases, as of December 31, 2024, totaled $24.8 million compared to $20.9 million as of December 31, 2023. The increase was driven by closing the ABL Facility.

Conference Call and Webcast Information

Arq will host its Q4 2024 earnings conference call on March 6, 2025, at 8:30 a.m. ET. The live webcast can be accessed through the Investor Resources section of Arq’s website at www.arq.com. Interested parties may participate in the conference call by registering at https://www.webcast-eqs.com/arq20250306. Alternatively, the live conference call may be accessed by dialing (877) 407-0890 or (201) 389-0918 and referencing Arq. An investor presentation will also be available in the Investor Resources section before the call begins.

A replay of the event will be made available shortly after the event and accessible via the same webcast link referenced above. Alternatively, the replay may be accessed by dialing (877) 660-6853 or (201) 612-7415 and entering Access ID 13751420. The dial-in replay will expire after March 13, 2025.

About Arq

Arq (NASDAQ: ARQ) is a diversified, environmental technology company with products that enable a cleaner and safer planet while actively reducing our environmental impact. As the only vertically integrated producer of activated carbon products in North America, we deliver a reliable domestic supply of innovative, hard-to-source, high-demand products. We apply our extensive expertise to develop groundbreaking solutions to remove harmful chemicals and pollutants from water, land and air. Learn more at: www.arq.com.

Caution on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a “safe harbor” for such statements in certain circumstances. When used in this press release, the words “can,” “will,” “may,” “intends,” “expects,” “continuing,” “believes,” similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. All statements that address activities, events or developments that the Company intends, expects or believes may occur in the future are forward-looking statements. These forward-looking statements include, but are not limited to, statements or expectations regarding: the anticipating timing of the completion of commissioning of the GAC Facility, ramp-up to full nameplate capacity at our Red River facility, and commercial production of our GAC products; the anticipated effects from fluctuations in the pricing of our AC products; expected supply and demand for our AC products and services, including our GAC products; the seasonal impact on our customers and their demand for our products; the ability to continue to successfully integrate Legacy Arq’s business and recognize the benefits and synergies from the Arq Acquisition; the ability to continue to develop and utilize Legacy Arq’s products and technology and the anticipated timing for bringing such products to market; our ability to access new markets for our GAC and other products; any future plant capacity expansions or site development projects and our ability to finance any such projects; the effectiveness of our technologies and the benefits they provide; the timing of awards of, and work and related testing under, our contracts and agreements and their value; probability of any loss occurring with respect to certain guarantees made by Tinuum Group; the timing and amounts of or changes in future revenue, funding for our business and projects, margins, expenses, earnings, tax rates, cash flows, royalty payment obligations, working capital, liquidity and other financial and accounting measures; the performance of obligations secured by our surety bonds; the amount and timing of future capital expenditures needed to fund our business plan; the impact of capital expenditure overruns on our business; awards of patents designed to protect our proprietary technologies both in the U.S. and other countries; the adoption and scope of regulations to control certain chemicals in drinking water and other environmental concerns and the impact of such regulations on our customers’ and our businesses, including any increase or decrease in sales of our AC products resulting from such regulations; the impact of adverse global macroeconomic conditions, including rising interest rates, recession fears and inflationary pressures, and geopolitical events or conflicts; opportunities to effectively provide solutions to our current and future customers to comply with regulations, improve efficiency, lower costs and maintain reliability; and the impact of prices of competing power generation sources such as natural gas and renewable energy on demand for our products. These forward-looking statements included in this press release involve risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to, the timing and scope of new and pending regulations and any legal challenges to or extensions of compliance dates of them; the U.S. government’s failure to promulgate new regulations or enforce existing regulations that benefit our business; changes in laws and regulations, accounting rules, prices, economic conditions and market demand; availability, cost of and demand for alternative energy sources and other technologies and their impact on coal-fired power generation in the U.S.; technical, start up and operational difficulties; competition within the industries in which the Company operates; risks associated with our debt financing; our inability to effectively and efficiently commercialize new products, including our GAC products; our inability to effectively manage commissioning and startup of the GAC facility at our Red River plant; disruptions at any of our facilities, including by natural disasters or extreme weather; risks related to our information technology systems, including the risk of cyberattacks on our networks; failure to protect our intellectual property from infringement or claims that we have infringed on the intellectual property of others; our inability to obtain future financing or financing on terms that are favorable to us; our inability to ramp up our operations to effectively address recent and expected growth in our business; loss of key personnel; ongoing effects of the inflation and macroeconomic uncertainty, including from the new U.S. presidential administration, increased domestic and international tariffs, lingering effects of the pandemic and armed conflicts around the world, and such uncertainty’s effect on market demand and input costs; availability of materials and equipment for our business; intellectual property infringement claims from third parties; pending litigation; factors relating to our business strategy, goals and expectations concerning the Arq Acquisition; our ability to maintain relationships with customers, suppliers and others with whom the Company does business and meet supply requirements; our results of operations and business generally; risks related to diverting management’s attention from our ongoing business operations; costs related to the ongoing manufacturing of our products, including our GAC products; opportunities for additional sales of our AC products and end-market diversification; the timing and scope of new and pending regulations, executive orders and any legal challenges to or extensions of compliance dates of them; the rate of coal-fired power generation in the U.S.; the timing and cost of any future capital expenditures and the resultant impact to our liquidity and cash flows; and the other risk factors described in our filings with the SEC, including our most recent Annual Report on Form 10-K. You are cautioned not to place undue reliance on the forward-looking statements and to consult filings we have made and will make with the SEC for additional discussion concerning risks and uncertainties that may apply to our business and the ownership of our securities. In addition to causing our actual results to differ, the factors listed above may cause our intentions to change from those statements of intention set forth in this press release. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise. The forward-looking statements speak only as to the date of this press release, and we disclaim any duty to update such statements unless required by law.

Source: Arq, Inc.

Investor Contact:
Anthony Nathan, Arq
Marc Silverberg, ICR
investors@arq.com


Arq, Inc. and Subsidiaries Consolidated Balance Sheets

	As of December 31,
(in thousands, except share data)		2024			2023
ASSETS
Current assets:
Cash	$	13,516		$	45,361
Receivables, net		14,876			16,192
Inventories, net		19,314			19,693
Prepaid expenses and other current assets		4,650			5,215
Total current assets		52,356			86,461
Restricted cash, long-term		8,719			8,792
Property, plant and equipment, net of accumulated depreciation of $26,619 and $19,293, respectively		178,564			94,649
Other long-term assets, net		44,729			45,600
Total Assets	$	284,368		$	235,502
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	21,017		$	14,603
Revolving credit facility		13,828			—
Current portion of long-term debt obligations		1,624			2,653
Other current liabilities		8,184			5,792
Total current liabilities		44,653			23,048
Long-term debt obligations, net of current portion		9,370			18,274
Other long-term liabilities		13,069			15,780
Total Liabilities		67,092			57,102
Commitments and contingencies
Stockholders’ equity:
Preferred stock: par value of $0.001 per share, 50,000,000 shares authorized, none issued or outstanding		—			—
Common stock: par value of $0.001 per share, 100,000,000 shares authorized, 46,639,930 and 37,791,084 shares issued and 42,021,784 and 33,172,938 shares outstanding at December 31, 2024 and 2023, respectively		47			38
Treasury stock, at cost: 4,618,146 and 4,618,146 shares as of December 31, 2024 and 2023, respectively		(47,692	)		(47,692	)
Additional paid-in capital		198,487			154,511
Retained earnings		66,434			71,543
Total Stockholders’ Equity		217,276			178,400
Total Liabilities and Stockholders’ Equity	$	284,368		$	235,502


Arq, Inc. and Subsidiaries Consolidated Statements of Operations

	Three Months Ended December 31,						Years Ended December 31,
(in thousands, except per share data)		2024			2023			2024			2023
	(unaudited)
Revenue	$	27,040		$	28,104		$	108,959		$	99,183

Cost of revenue, exclusive of depreciation and amortization		17,236			14,105			69,515			67,323

Operating expenses:
Selling, general and administrative		5,960			6,495			28,695			34,069
Research and development		709			1,169			4,050			3,314
Depreciation, amortization, depletion and accretion		2,504			3,267			8,594			10,543
Loss (gain) on sale of assets		218			(36	)		64			(2,731	)
Total operating expenses		9,391			10,895			41,403			45,195
Operating income (loss)		413			3,104			(1,959	)		(13,335	)
Other (expense) income:
Earnings from equity method investments		—			111			127			1,623
Interest expense		(831	)		(859	)		(3,257	)		(3,014	)
Loss on extinguishment of debt		(1,422	)		—			(1,422	)		—
Other		307			1,120			1,238			2,630
Total other (expense) income		(1,946	)		372			(3,314	)		1,239
(Loss) income before income taxes		(1,533	)		3,476			(5,273	)		(12,096	)
Income tax (benefit) expense		(194	)		186			(164	)		153
Net (loss) income	$	(1,339	)	$	3,290		$	(5,109	)	$	(12,249	)
(Loss) income per common share:
Basic	$	(0.03	)	$	0.10		$	(0.14	)	$	(0.42	)
Diluted	$	(0.03	)	$	0.10		$	(0.14	)	$	(0.42	)
Weighted-average number of common shares outstanding:
Basic		41,275			32,367			36,051			29,104
Diluted		41,275			32,952			36,051			29,104


Arq, Inc. and Subsidiaries Consolidated Statements of Cash Flows

	Years Ended December 31,
(in thousands)		2024			2023
Cash flows from operating activities
Net loss	$	(5,109	)	$	(12,249	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation, amortization, depletion and accretion		8,594			10,543
Stock-based compensation expense		2,715			2,648
Operating lease expense		2,004			2,757
Loss from extinguishment of debt		1,422			—
Amortization of debt discount and debt issuance costs		601			546
Loss (gain) on sale of assets		64			(2,731	)
Earnings from equity method investments		(127	)		(1,623	)
Other non-cash items, net		37			(75	)
Changes in operating assets and liabilities:
Receivables and related party receivables		1,316			(2,264	)
Prepaid expenses and other assets		1,166			4,777
Inventories, net		1,636			(2,571	)
Other long-term assets, net		(2,166	)		(4,762	)
Accounts payable and accrued expenses		216			(12,061	)
Other current liabilities		1,144			(184	)
Operating lease liabilities		(1,272	)		(168	)
Other long-term liabilities		(1,764	)		764
Net cash provided by (used in) operating activities		10,477			(16,653	)
Cash flows from investing activities
Acquisition of property, plant, equipment and intangible assets, net		(85,170	)		(27,516	)
Acquisition of mine development costs		(181	)		(2,690	)
Proceeds from sale of property and equipment		150			—
Distributions from equity method investees in excess of cumulative earnings		127			1,623
Cash and restricted cash acquired in business acquisition		—			2,225
Payment for disposal of Marshall Mine, LLC		—			(2,177	)
Net cash used in investing activities	$	(85,074	)	$	(28,535	)
Cash flows from financing activities
Net proceeds from common stock issued in public offering	$	26,654		$	—
Net proceeds from common stock issued in private placement transactions		14,951			15,220
Borrowings on revolving credit facility		13,828			—
Net proceeds from common stock issued to related party		800			1,000
Principal payments on notes payable		(10,544	)		(473	)
Repurchase of common stock to satisfy tax withholdings		(1,135	)		(230	)
Principal payments on finance lease obligations		(1,022	)		(1,130	)
Payment of debt issuance costs		(633	)		—
Payment of debt extinguishment costs		(220	)		—
Net proceeds from CFG Loan, related party, net of discount and issuance costs		—			8,522
Net cash provided by financing activities		42,679			22,909
Decrease in Cash and Restricted Cash		(31,918	)		(22,279	)
Cash and Restricted Cash, beginning of year		54,153			76,432
Cash and Restricted Cash, end of year	$	22,235		$	54,153

Supplemental disclosure of cash flow information:
Cash paid for interest	$	2,017		$	1,727
Cash received for income taxes	$	(452	)	$	(1,697	)
Supplemental disclosure of non-cash investing and financing activities:
Change in accrued purchases for property and equipment	$	6,198		$	914
Purchase of property and equipment through note payable	$	1,004		$	—
Equity issued as consideration for acquisition of business	$	—		$	31,206
Paid-in-kind dividend on Series A Preferred Stock	$	—		$	157

Note on Non-GAAP Financial Measures

To supplement our financial information presented in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”), we provide certain supplemental financial measures, including EBITDA and Adjusted EBITDA, which are measurements that are not calculated in accordance with U.S. GAAP. EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA reduced by the non-cash impact of equity earnings from equity method investments and other non-cash gains, increased by cash distributions from equity method investments, other non-cash losses and non-recurring costs and fees. EBITDA and Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income (loss) in accordance with U.S. GAAP as a measure of performance. See below for a reconciliation from net income (loss), the nearest U.S. GAAP financial measure, to EBITDA and Adjusted EBITDA.

We believe that the EBITDA and Adjusted EBITDA measures are less susceptible to variances that affect our operating performance. We include these non-GAAP measures because management uses them in the evaluation of our operating performance, and believe they help to facilitate comparison of operating results between periods. We believe the non-GAAP measures provide useful information to both management and users of the financial statements by excluding certain expenses, gains, and losses which can vary widely across different industries or among companies within the same industry and may not be indicative of core operating results and business outlook.

EBITDA and Adjusted EBITDA:

The following table reconciles net income (loss), our most directly comparable as-reported financial measure calculated in accordance with U.S. GAAP, to EBITDA and Adjusted EBITDA (Adjusted EBITDA loss).


Arq, Inc. and Subsidiaries Reconciliation of Net income (loss) to EBITDA and Adjusted EBITDA (Adjusted EBITDA loss) *(Unaudited)*

	Three Months Ended									Years Ended
	September 30,			December 31,						December 31,
(in thousands)		2024			2024			2023			2024			2023
Net income (loss)	$	1,617		$	(1,339	)	$	3,290		$	(5,109	)	$	(12,249	)
Depreciation, amortization, depletion and accretion		2,716			2,504			3,267			8,594			10,543
Amortization of Upfront Customer Consideration		127			127			127			508			508
Interest expense, net		600			516			346			2,154			1,168
Income tax (benefit) expense		—			(194	)		186			(164	)		153
EBITDA		5,060			1,614			7,216			5,983			123
Cash distributions from equity method investees		127			—			111			127			1,623
Equity earnings		(127	)		—			(111	)		(127	)		(1,623	)
Loss on extinguishment of debt		—			1,422			—			1,422			—
(Gain) loss on sale of assets		(154	)		218			—			64			(2,695	)
Gain on change in estimate, asset retirement obligation		—			—			(37	)		—			(37	)
Financing costs		228			47			—			275			—
Adjusted EBITDA (Adjusted EBITDA loss)	$	5,134		$	3,301		$	7,179		$	7,744		$	(2,609	)

MIL-OSI: ArrowMark Financial Corp. Announces Special Distribution of $0.10 and Regular Cash Distribution of $0.45 per Share for the First Quarter 2025

Source: GlobeNewswire (MIL-OSI)

DENVER, March 05, 2025 (GLOBE NEWSWIRE) — ArrowMark Financial Corp. (Nasdaq: BANX) (“ArrowMark Financial” or the “Company”), an SEC registered closed-end management investment company, today announced that its Board of Directors has declared a special cash distribution of $0.10 per share generated from excess income, and a regular cash distribution of $0.45 per share for the first quarter 2025. The total distribution of $0.55 per share will be payable on March 27, 2025 to shareholders of record on March 20, 2025.

“We are very pleased to announce a special distribution for Q1 2025 along with the regular quarterly distribution of $0.45. We believe this distribution reflects the Fund’s ability to consistently over-earn its declared quarterly distribution rate. ArrowMark Financial is committed to providing consistent risk-adjusted returns while maintaining focus on capital preservation and income generation for our shareholders,” said Chairman & CEO Sanjai Bhonsle.

About ArrowMark Financial Corp.

ArrowMark Financial Corp. is an SEC registered non-diversified, closed-end fund listed on the NASDAQ Global Select Market under the symbol “BANX.” Its investment objective is to provide shareholders with current income. The Fund pursues its objective by investing primarily in regulatory capital securities of financial institutions. ArrowMark Financial is managed by ArrowMark Asset Management, LLC. To learn more, visit ir.arrowmarkfinancialcorp.com or contact the Fund’s secondary market service agent at 877-855-3434.

Disclaimer and Risk Factors:

There is no assurance that ArrowMark Financial will achieve its investment objective. ArrowMark Financial is subject to numerous risks, including investment and market risks, management risk, income and interest rate risks, banking industry risks, preferred stock risk, convertible securities risk, debt securities risk, liquidity risk, valuation risk, leverage risk, non-diversification risk, credit and counterparty risks, market at a discount from net asset value risk and market disruption risk. Shares of closed-end investment companies may trade above (a premium) or below (a discount) their net asset value. Shares of ArrowMark Financial may not be appropriate for all investors. Investors should review and consider carefully ArrowMark Financial’s investment objective, risks, charges and expenses. Past performance does not guarantee future results.

The Annual Report, Semi-Annual Report and other regulatory filings of the Fund with the SEC are accessible on the SEC’s website at www.sec.gov and on the Fund’s website at ir.arrowmarkfinancialcorp.com.

Contact:

BANX@destracapital.com

Destra Capital Advisors LLC (877) 855-3434
Destra Capital Advisors LLC provides secondary market services for the Fund by agreement.

MIL-OSI United Kingdom: £2.6m investment package for adult social care as Westminster City Council approves new budget plans | Westminster City Council

Source: City of Westminster

Budget approved for improvements to key areas such as adult social care and housing as the council launches its new Fairer Westminster delivery plan for the next three years.

Westminster City Council has today announced a major new investment of £2.6m to go into cushioning the cost of adult social care – meaning hundreds of adult social care users will now not pay for care, while hard working care assistants will earn more.

Approved at Full Council (Wednesday March 5), additional funding for adult social care includes £1.4m to increase the pay of the personal care assistants (over 400 staff) who provide care for Westminster residents through direct payments.

This will improve the quality of care for care receivers and help more people who use adult social care to employ the carer they want as they will now be able to pay a competitive salary.

Direct payment recipients will now be able to offer an additional £1.50- £2.00 an hour salary for their personal assistant, so those who opt to receive direct payments to pay for their care needs will see their monthly funds increase.

An additional £1.2m is also being invested to level up the threshold at which people start to pay for their social care costs so that it is the same for everyone regardless of age. This will help over 460 residents aged under 65 to keep more of their income before paying care bills.

Colin, a Westminster resident who receives direct payments to support with his care needs, said:

“At 59, I’ve been fortunate to receive direct payments since graduating from university at 21, enabling me to live independently in my own home and manage my care on my terms.

“While direct payments may not suit every disabled person due to the associated responsibilities, for those willing to take them on, they can be life-enhancing and transformative.

“I believe the additional £1.4 million that Westminster City Council is allocating to personal carers’ pay will make the carer role competitive in the labour market once again, making it easier to attract people to work with me.

“Many disabled people have found it challenging to recruit quality social care workers in recent years.

“The increased funding could help me, as an employer, attract candidates from companies like Amazon and McDonald’s, which traditionally offer higher wages.

“It may also help encourage young people to view social care as a viable career option that offers a respectable and ethical wage. Society’s general underappreciation of care work has made finding and retaining good carers difficult.”

The approval of the budget at Full Council coincides with the launch of the new Fairer Westminster delivery plan, which outlines the council’s ambitions for the future of the city, and what it wants to achieve to make Westminster a great place to live. Led by voices and priorities from the community, the new plan aims to create meaningful change by providing effective, value-for-money services and accessible opportunities for all, so every resident in the city can thrive.

Headline announcements in the approved budget to kick-start the Fairer Westminster delivery plan for 2025 include:

An extra £1.2m to tackle rough sleeping and help people off the pavements and into safety.
Help to relieve pressure on Westminster’s housing waiting list by investing an additional £140m into buying and expanding temporary accommodation.
An extra £1m on cost of living support to turn short-term relief into long-term solutions – such as free school meals during school holidays, supermarket food vouchers, a hardship fund and supporting specialist advice centres.
Investing £10m into high streets across Paddington and Bayswater to support local economies and make the areas more dynamic.
Investing in new Community hubs such as Ernest Harris House opening this Spring and the Pimlico Community hub at site of the Old Pimlico Library opening in 2026.
An additional £2m for anti-social and city management measures across the city, including the recruitment of eight new City Inspectors and doubling the number of CCTV cameras on the streets to 200, including 40 new cameras in the West End.

The Council will also deliver new savings of nearly £30m by 2028 through measures including greater efficiencies in contracts and the switch to an electric cleaning and waste fleet.

The budget sets out detailed spending plans for managing more than 20,000 local authority properties under what is called the Housing Revenue Account. The business plan includes total capital investment of £916m over the next 5 years and a total of £2.5bn over the full 30 years. The budget also sets out the business plan for funding the council’s fairer Westminster programme under its capital strategy. The Council is proposing a gross capital programme up to 2038/39 of £2.5bn, partially offset by nearly £1.2bn of income, giving a net budget of £1.3bn.

Despite the scale of new investment, the Council Tax rise equals just 48p a week for a Band D* property, which means Westminster still has one of the lowest Council Tax rates in the country. The Westminster City Council part of the Council Tax rises by 4.99 per cent overall – 2.99 per cent for council services and 2 per cent for the portion set aside for adult social care.

Adults under 65 with disabilities will be able to keep at least £272.69 a week after they have paid their care bills – meaning 147 Westminster residents will now pay less for support and 315 will no longer pay anything at all.
The eight City Inspectors are an additional resource to the creation of the street-based intervention team announced in January https://www.westminster.gov.uk/news/new-front-line-team-tackle-street-based-anti-social-behaviour-asb-westminster
You can see full details of the approved Budget here: Full Council papers
The Fairer Westminster delivery plan and the approved investment is split between; housing, temporary accommodation and rough sleeping; schools, children’s social care and youth services; waste, street cleansing, highways and public protection; public health and adult social care; and enabling services. Read the full Fairer Westminster delivery plan here: Delivering a Fairer Westminster

MIL OSI United Kingdom –

MIL-OSI Australia: Low-carbon liquid fuels of the Future Made In Australia

Source: Australia Government Ministerial Statements

The Albanese Government is delivering $250 million to accelerate the pace of Australia’s growing domestic Low Carbon Liquid Fuels (LCLF) industry.

This funding is part of the $1.7 billion Future Made in Australia Innovation Fund and will be provided as grants to support pre-commercial innovation, demonstration and deployment.

Low carbon liquid fuels can be produced sustainably from waste, biomass such as agricultural feedstocks, or renewable hydrogen.

Australia’s domestic LCLF industry will focus on supplying sustainable aviation fuel and renewable diesel in liquid fuel-reliant sectors, including transport (aviation, heavy vehicle, rail and maritime), mining, agriculture and construction.

The development of low carbon fuels will drive economic growth and jobs in regional areas, including supporting diversification in agriculture, making good use of excess feedstock from crops, sugarcane and waste products such as tallow.

CSIRO projects that a LCLF industry could contribute between AUD $6 billion to $12 billion annually in direct economic benefits, with greater gains from regional co-benefits including diversified income streams for farmers and regional communities.

LCLFs not only help decarbonise hard-to-abate sectors of the economy but provide Australia with sovereign capability and resilience at a time of increasing international uncertainty.

Alongside the $250 million for low carbon liquid fuels, the Future Made in Australia Innovation Fund is providing $500 million for clean energy technology manufacturing capabilities including electrolysers, batteries and wind towers.

The Fund – a key element of the Future Made in Australia plan – will ensure Australia can maximise the economic and industrial benefits of the international move to net zero and secure Australia’s place in a changing global and strategic landscape. Funding is administered by the Australian Renewable Energy Agency (ARENA).

The investment in a wider domestic LCLF industry builds on the momentum of the Sustainable Aviation Fuel Funding Initiative.

This Sustainable Aviation Fuel Funding Initiative has seen the Albanese Government invest in $33.5 million across five projects to date, including LCLF production facilities in Bundaberg and Townsville, and enabling the supply of sustainable aviation fuel at Brisbane Airport.

Funding from the Future Made in Australia Innovation Fund is subject to the legislated Future Made in Australia Community Benefits Principles. The Albanese Government established these principles to ensure public investment and the private investment it attracts, has a direct and tangible benefit for local workers and businesses.

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

“The Australian Government is backing clean, green low carbon liquid fuels as an important part of our move towards net zero and long-term fuel security.

“Australia has the know how and skills to meet the crucial task of decarbonising hard to abate sectors such as aviation, heavy transport and mining that rely on liquid fuels.

“Investing in a Future Made in Australia means delivering the industries that will provide high end jobs, many in the regions, for future generations.”

Quotes attributable to Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King:

“We know that industries vital to our national prosperity, like the transportation of people and goods across our vast land, are carbon intensive and hard to abate.

“That’s why we’re investing hundreds of millions of dollars to develop – right here in Australia – the low carbon liquid fuels of the future that will reduce their environmental impact without preventing their operation or expansion.

“We have all the ingredients in Australia to be a global clean energy superpower, and the Future Made in Australia fund will help bring that potential to reality.”

MIL OSI News –

MIL-OSI Security: Former executive of injured child benefit program sentenced to nine years in prison for stealing over $6.7M

Source: Office of United States Attorneys

RICHMOND, Va. – A Providence Forge man was sentenced today to nine years in prison for embezzling funds from his former employer, the Virginia Birth-Related Neurological Injury Compensation Program (Birth-Injury Program).

According to court documents, John Hunter Raines, 38, was the Chief Financial Officer and Deputy Director of the Birth-Injury Program. The Birth-Injury Program pays monetary compensation to families of infants who suffer from brain or spinal cord injuries resulting from the birth process that render the infant developmentally and/or cognitively disabled. Raines’ role required that he oversee the finances of the Birth-Injury Program, including approximately $650 million in investments in 2023.

From at least January 2022 through October 2023, Raines stole over $6.7 million from the Birth-Injury Program, including by using his access to the Birth-Injury Program bank account to initiate at least 59 separate wire transactions, sending funds to bank accounts in Raines’ own name. Raines also used the Birth-Injury Program debit card for personal gain. Raines spent embezzled Birth-Injury Program money on various personal expenses. For example:

Raines purchased numerous vehicles, including eight luxury golf carts for over $160,000 and a 2023 Chevrolet Suburban;
Raines spent over $100,000 on gambling, including at Rivers Casino in Portsmouth, Virginia, Colonial Downs Racetrack in New Kent, Virginia, and the Virginia Lottery;
Raines paid at least $29,000 to an intimate partner and tens of thousands of dollars to a bank account in the name of Raines’ wife;
Raines spent over $9,000 on private limousine services, including to chauffer Raines and his guests in a Mercedes limousine from Raines’ house to Virginia vineyards;
Raines made numerous purchases of cryptocurrency, including Bitcoin and Dogecoin, and transferred funds to his brokerage accounts;
Raines paid tens of thousands of dollars towards his student loan debt, his mortgage, and other loans;
Raines paid over $125,000 for private jet travel for Raines’ friends and family. As an example, Raines paid over $34,000 to travel with his wife and his friends to Nashville, Tennessee, for three days in a private jet; and
Raines spent over $19,000 to purchase eight separate 2022 1-oz American Gold Eagle Bullion coins and a 100-oz silver bar.

As a financial control on the Birth-Injury Program, Virginia Code § 38.2-5015(B) required an independent certified public accountant selected by the Birth-Injury Program’s board of directors to complete an audit of the program’s accounts each fiscal year. Raines deliberately impeded the statutorily mandated audit process by failing to timely provide the Birth-Injury Program’s files to auditors when requested. Due at least in part to Raines’ obstructive conduct, the Birth-Injury Program’s statutorily mandated audits continue to be delayed by over three years.

Raines pled guilty to mail fraud and money laundering offenses on Oct. 8, 2024.

Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Kareem A. Carter, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office; and Michael C. Westfall, State Inspector General for the Commonwealth of Virginia, made the announcement after Senior U.S. District Judge John A. Gibney Jr. accepted the plea.

Assistant U.S. Attorney Avi Panth and former Assistant U.S. Attorney Kashan K. Pathan prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-138.

MIL-OSI: Descartes Announces Fiscal 2025 Fourth Quarter and Annual Financial Results

Source: GlobeNewswire (MIL-OSI)

Record Income from Operations

WATERLOO, Ontario and ATLANTA, March 05, 2025 (GLOBE NEWSWIRE) — The Descartes Systems Group Inc. (TSX:DSG) (Nasdaq:DSGX) announced its financial results for its fiscal 2025 fourth quarter (Q4FY25) and year (FY25) ended January 31, 2025. All financial results referenced are in United States (US) currency and, unless otherwise indicated, are determined in accordance with US Generally Accepted Accounting Principles (GAAP).

“Fiscal 2025 was another year of growth for Descartes, highlighted by the addition of numerous complementary services to the Global Logistics Network,” said Edward J. Ryan, Descartes’ CEO. “We believe these investments can help shippers, carriers, and logistics services providers manage the increased uncertainty and complexity that’s recently been introduced to the global trade environment. Our customers benefit from our diversity in international and domestic supply chains, our expertise with tariffs, sanctions and other global trade issues, and our expansive roster of connected trading partners as they navigate a quickly evolving trade landscape.”

FY25 Financial Results
As described in more detail below, key financial highlights for Descartes’ FY25 included:

Revenues of $651.0 million, up 14% from $572.9 million in the same period a year ago (FY24);
Revenues were comprised of services revenues of $590.2 million (91% of total revenues), professional services and other revenues of $55.1 million (8% of total revenues) and license revenues of $5.7 million (1% of total revenues). Services revenues were up 13% from $520.9 million in FY24;
Cash provided by operating activities of $219.3 million, up 6% from $207.7 million in FY24. Cash provided by operating activities was negatively impacted in FY25 by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition;
Income from operations of $181.1 million, up 27% from $142.8 million in FY24;
Net income of $143.3 million, up 24% from $115.9 million in FY24. Net income as a percentage of revenues was 22%, compared to 20% in FY24;
Earnings per share on a diluted basis of $1.64, up 22% from $1.34 in FY24; and
Adjusted EBITDA of $284.7 million, up 15% from $247.5 million in FY24. Adjusted EBITDA as a percentage of revenues was 44%, compared to 43% in FY24.

Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures provided as a complement to financial results presented in accordance with GAAP. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). These items are considered by management to be outside Descartes’ ongoing operational results. We define Adjusted EBITDA as a percentage of revenues as the quotient, expressed as a percentage, from dividing Adjusted EBITDA for a period by revenues for the corresponding period. A reconciliation of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income determined in accordance with GAAP is provided later in this release.

The following table summarizes Descartes’ results in the categories specified below over FY25 and FY24 (dollar amounts in millions):

	FY25		FY24
Revenues	651.0		572.9
Services revenues	590.2		520.9
Gross margin	76	%	76	%
Cash provided by operating activities*	219.3		207.7
Income from operations	181.1		142.8
Net income	143.3		115.9
Net income as a % of revenues	22	%	20	%
Earnings per diluted share	1.64		1.34
Adjusted EBITDA	284.7		247.5
Adjusted EBITDA as a % of revenues	44	%	43	%

(*) FY25 cash provided by operating activities was negatively impacted by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition but was paid due to post-acquisition performance exceeding expectations at the time of acquisition

Q4FY25 Financial Results
As described in more detail below, key financial highlights for Q4FY25 included:

Revenues of $167.5 million, up 13% from $148.2 million in the fourth quarter of fiscal 2024 (Q4FY24) and down from $168.8 million in the previous quarter (Q3FY25);
Revenues were comprised of services revenues of $156.5 million (93% of total revenues), professional services and other revenues of $10.7 million (6% of total revenues) and license revenues of $0.3 million (1% of total revenues). Services revenues were up 15% from $135.7 million in Q4FY24 and up 5% from $149.7 million in Q3FY25;
Cash provided by operating activities of $60.7 million, up 19% from $50.8 million in Q4FY24 and up 1% from $60.1 million in Q3FY25;
Income from operations of $47.1 million, up 27% from $37.0 million in Q4FY24 and up 3% from $45.8 million in Q3FY25;
Net income of $37.4 million, up 18% from $31.8 million in Q4FY24 and up 2% from $36.6 million in Q3FY25. Net income as a percentage of revenues was 22%, compared to 21% in Q4FY24 and 22% in Q3FY25;
Earnings per share on a diluted basis of $0.43, up 16% from $0.37 in Q4FY24 and up 2% from $0.42 in Q3FY25; and
Adjusted EBITDA of $75.0 million, up 14% from $65.7 million in Q4FY24 and up 4% from $72.1 million in Q3FY25. Adjusted EBITDA as a percentage of revenues was 45%, compared to 44% in Q4FY24 and 43% in Q3FY25, respectively.

The following table summarizes Descartes’ results in the categories specified below over the past 5 fiscal quarters (unaudited; dollar amounts, other than per share amounts, in millions):

	Q4 FY25		Q3 FY25		Q2 FY25		Q1 FY25		Q4 FY24
Revenues	167.5		168.8		163.4		151.3		148.2
Services revenues	156.5		149.7		146.2		137.8		135.7
Gross margin	76	%	74	%	75	%	77	%	76	%
Cash provided by operating activities*	60.7		60.1		34.7		63.7		50.8
Income from operations	47.1		45.8		45.9		42.4		37.0
Net income	37.4		36.6		34.7		34.7		31.8
Net income as a % of revenues	22	%	22	%	21	%	23	%	21	%
Earnings per diluted share	0.43		0.42		0.40		0.40		0.37
Adjusted EBITDA	75.0		72.1		70.6		67.0		65.7
Adjusted EBITDA as a % of revenues	45	%	43	%	43	%	44	%	44	%

(*) Q2FY25 cash provided by operating activities was negatively impacted by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition but was paid due to post-acquisition performance exceeding expectations at the time of acquisition

Cash Position
At January 31, 2025, Descartes had $236.1 million in cash. Cash increased by $54.8 million in Q4FY25 and decreased by $84.9 million in FY25. The table set forth below provides a summary of cash flows for Q4FY25 and FY25 in millions of dollars:

	Q4FY25		FY25
Cash provided by operating activities	60.7		219.3
Additions to property and equipment	(2.1	)	(6.8	)
Acquisitions of subsidiaries, net of cash acquired	(3.7	)	(290.2	)
Payment of debt issuance costs			(0.1	)
Issuances of common shares, net of issuance costs	2.5		12.4
Payment of withholding taxes on net share settlements	–		(6.7	)
Payment of contingent consideration	–		(9.2	)
Effect of foreign exchange rate on cash	(2.6	)	(3.6	)
Net change in cash	54.8		(84.9	)
Cash, beginning of period	181.3		321.0
Cash, end of period	236.1		236.1

Conference Call
Descartes’ executive management team will hold a conference call to discuss the company’s financial results at 5:30 PM ET on Wednesday, March 5. Designated numbers are +1 289 514 5100 or +1 800 717 1738 for North America Toll-Free, using Passcode 45440#.

The company will simultaneously conduct an audio webcast on the Descartes website at https://www.descartes.com/who-we-are/investor-relations/financial-information. Phone conference dial-in or webcast login is required approximately 10 minutes beforehand.

Replays of the conference call will be available until March 12, 2025, by dialing +1 289 819 1325 or Toll-Free for North America using +1 888 660 6264 with Playback Passcode: 45440#. An archived replay of the webcast will be available at https://www.descartes.com/who-we-are/investor-relations/financial-information.

About Descartes

Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and X (Twitter).

Descartes Investor Contact
Laurie McCauley
(519) 746-2969
investor@descartes.com

Cautionary Statement Regarding Forward-Looking Statements

This release may contain forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that relates to Descartes’ expectations concerning future revenues and earnings, and our projections for any future reductions in expenses or growth in margins and generation of cash; our assessment of the potential impact of geopolitical events, such as the ongoing conflict between Russia and Ukraine (the “Russia-Ukraine Conflict”), and between Israel and Hamas (“Israel-Hamas Conflict”), or other potentially catastrophic events, on our business, results of operations and financial condition; continued growth and acquisitions including our assessment of any increased opportunity for our products and services as a result of trends in the logistics and supply chain industries; rate of profitable growth and Adjusted EBITDA margin operating range; demand for Descartes’ solutions; growth of Descartes’ Global Logistics Network (“GLN”); customer buying patterns; customer expectations of Descartes; development of the GLN and the benefits thereof to customers; and other matters. These forward-looking statements are based on certain assumptions including the following: global shipment volumes continuing at levels generally consistent with those experienced historically; the Russia-Ukraine Conflict and Israel-Hamas Conflict not having a material negative impact on shipment volumes or on the demand for the products and services of Descartes by its customers and the ability of those customers to continue to pay for those products and services; countries continuing to implement and enforce existing and additional customs and security regulations relating to the provision of electronic information for imports and exports; countries continuing to implement and enforce existing and additional trade restrictions and sanctioned party lists with respect to doing business with certain countries, organizations, entities and individuals; Descartes’ continued operation of a secure and reliable business network; the stability of general economic and market conditions, currency exchange rates, and interest rates; equity and debt markets continuing to provide Descartes with access to capital; Descartes’ continued ability to identify and source attractive and executable business combination opportunities; Descartes’ ability to develop solutions that keep pace with the continuing changes in technology, and our continued compliance with third party intellectual property rights. These assumptions may prove to be inaccurate. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Descartes, or developments in Descartes’ business or industry, to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, Descartes’ ability to successfully identify and execute on acquisitions and to integrate acquired businesses and assets, and to predict expenses associated with and revenues from acquisitions; the impact of network failures, information security breaches or other cyber-security threats; disruptions in the movement of freight and a decline in shipment volumes including as a result of contagious illness outbreaks; a deterioration of general economic conditions or instability in the financial markets accompanied by a decrease in spending by our customers; the ability to attract and retain key personnel and the ability to manage the departure of key personnel and the transition of our executive management team; changes in trade or transportation regulations that currently require customers to use services such as those offered by Descartes; changes in customer behaviour and expectations; Descartes’ ability to successfully design and develop enhancements to our products and solutions; departures of key customers; the impact of foreign currency exchange rates; Descartes’ ability to retain or obtain sufficient capital in addition to its debt facility to execute on its business strategy, including its acquisition strategy; disruptions in the movement of freight; the potential for future goodwill or intangible asset impairment as a result of other-than-temporary decreases in Descartes’ market capitalization; and other factors and assumptions discussed in the section entitled, “Certain Factors That May Affect Future Results” in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada, including Descartes’ most recently filed Management’s Discussion and Analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues

We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with GAAP. We also disclose and discuss certain non-GAAP financial information, used to evaluate our performance, in this and other earnings releases and investor conference calls as a complement to results provided in accordance with GAAP. We believe that current shareholders and potential investors in our company use non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues, in making investment decisions about our company and measuring our operational results.

The term “Adjusted EBITDA” refers to a financial measure that we define as earnings before certain charges that management considers to be non-operating expenses and which consist of interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). Adjusted EBITDA as a percentage of revenues divides Adjusted EBITDA for a period by the revenues for the corresponding period and expresses the quotient as a percentage.

Management considers these non-operating expenses to be outside the scope of Descartes’ ongoing operations and the related expenses are not used by management to measure operations. Accordingly, these expenses are excluded from Adjusted EBITDA, which we reference to both measure our operations and as a basis of comparison of our operations from period-to-period. Management believes that investors and financial analysts measure our business on the same basis, and we are providing the Adjusted EBITDA financial metric to assist in this evaluation and to provide a higher level of transparency into how we measure our own business. However, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues should not be construed as a substitute for net income determined in accordance with GAAP or other non-GAAP measures that may be used by other companies, such as EBITDA. The use of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues does have limitations. In particular, we have completed seven acquisitions since the beginning of fiscal 2024 and may complete additional acquisitions in the future that will result in acquisition-related expenses and restructuring charges. As these acquisition-related expenses and restructuring charges may continue as we pursue our consolidation strategy, some investors may consider these charges and expenses as a recurring part of operations rather than expenses that are not part of operations.

The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our audited Consolidated Statements of Operations for FY25 and FY24, which we believe is the most directly comparable GAAP measure.

(US dollars in millions)	FY25		FY24
Net income, as reported on Consolidated Statements of Operations	143.3		115.9
Adjustments to reconcile to Adjusted EBITDA:
Interest expense	1.0		1.4
Investment income	(11.5	)	(9.7	)
Income tax expense	48.3		35.2
Depreciation expense	5.6		5.5
Amortization of intangible assets	69.4		60.5
Stock-based compensation and related taxes	21.1		17.1
Other charges	7.5		21.6
Adjusted EBITDA	284.7		247.5

Revenues	651.0		572.9
Net income as % of revenues	22	%	20	%
Adjusted EBITDA as % of revenues	44	%	43	%

The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our unaudited Consolidated Statements of Operations for Q4FY25, Q3FY25, Q2FY25, Q1FY25, and Q4FY24, which we believe is the most directly comparable GAAP measure.

(US dollars in millions)	Q4FY25		Q3FY25		Q2FY25		Q1FY25		Q4FY24
Net income, as reported on Consolidated Statements of Operations	37.4		36.6		34.7		34.7		31.8
Adjustments to reconcile to Adjusted EBITDA:
Interest expense	0.2		0.2		0.2		0.3		0.3
Investment income	(1.9	)	(2.9	)	(2.7	)	(4.1	)	(3.4	)
Income tax expense	11.4		11.9		13.6		11.5		8.3
Depreciation expense	1.5		1.4		1.4		1.4		1.4
Amortization of intangible assets	19.4		17.5		17.4		15.0		15.1
Stock-based compensation and related taxes	5.4		5.6		5.8		4.3		4.7
Other charges	1.6		1.8		0.2		3.9		7.5
Adjusted EBITDA	75.0		72.1		70.6		67.0		65.7

Revenues	167.5		168.8		163.4		151.3		148.2
Net income as % of revenues	22	%	22	%	21	%	23	%	21	%
Adjusted EBITDA as % of revenues	45	%	43	%	43	%	44	%	44	%

The Descartes Systems Group Inc.
Consolidated Balance Sheets
(US dollars in thousands; US GAAP)

	January 31,		January 31,
	2025		2024
ASSETS
CURRENT ASSETS
Cash	236,138		320,952
Accounts receivable (net)
Trade	53,953		51,569
Other	16,931		12,193
Prepaid expenses and other	45,544		33,468
	352,566		418,182
OTHER LONG-TERM ASSETS	24,887		24,737
PROPERTY AND EQUIPMENT, NET	12,481		11,552
RIGHT-OF-USE ASSETS	7,623		6,257
DEFERRED INCOME TAXES	3,802		2,097
INTANGIBLE ASSETS, NET	321,270		251,047
GOODWILL	924,755		760,413
	1,647,384		1,474,285
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	20,650		17,484
Accrued liabilities	79,656		91,824
Lease obligations	3,178		3,075
Income taxes payable	9,313		6,734
Deferred revenue	104,230		84,513
	217,027		203,630
LEASE OBLIGATIONS	4,718		3,903
DEFERRED REVENUE	978		1,464
INCOME TAXES PAYABLE	5,531		6,153
DEFERRED INCOME TAXES	34,127		21,101
	262,381		236,251

SHAREHOLDERS’ EQUITY
Common shares – unlimited shares authorized; Shares issued and outstanding totaled 85,605,969 at January 31, 2025 (January 31, 2024 – 85,183,455)	568,339		551,164
Additional paid-in capital	503,133		494,701
Accumulated other comprehensive loss	(50,497	)	(28,586	)
Retained earnings	364,028		220,755
	1,385,003		1,238,034
	1,647,384		1,474,285

The Descartes Systems Group Inc.
Consolidated Statements of Operations
(US dollars in thousands, except per share and weighted average share amounts; US GAAP)

	January 31,		January 31,		January 31,
Year Ended	2025		2024		2023

REVENUES	651,000		572,931		486,014
COST OF REVENUES	158,574		138,295		113,326
GROSS MARGIN	492,426		434,636		372,688
EXPENSES
Sales and marketing	73,692		68,161		56,573
Research and development	95,497		84,103		70,353
General and administrative	65,248		57,373		49,710
Other charges	7,466		21,649		5,441
Amortization of intangible assets	69,399		60,501		60,177
	311,302		291,787		242,254
INCOME FROM OPERATIONS	181,124		142,849		130,434
INTEREST EXPENSE	(1,004	)	(1,363	)	(1,167	)
INVESTMENT INCOME	11,513		9,666		4,461
INCOME BEFORE INCOME TAXES	191,633		151,152		133,728
INCOME TAX EXPENSE (RECOVERY)
Current	53,402		41,223		28,248
Deferred	(5,042	)	(5,978	)	3,244
	48,360		35,245		31,492
NET INCOME	143,273		115,907		102,236
EARNINGS PER SHARE
Basic	1.68		1.36		1.21
Diluted	1.64		1.34		1.18
WEIGHTED AVERAGE SHARES OUTSTANDING (thousands)
Basic	85,443		85,068		84,791
Diluted	87,323		86,818		86,451

The Descartes Systems Group Inc.
Consolidated Statements of Cash Flows
(US dollars in thousands; US GAAP)

Year Ended	January 31,		January 31,		January 31,
	2025		2024		2023
OPERATING ACTIVITIES
Net income	143,273		115,907		102,236
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	5,589		5,474		5,225
Amortization of intangible assets	69,399		60,501		60,177
Stock-based compensation expense	19,962		16,480		13,667
Other non-cash operating activities	23		114		53
Deferred tax expense (recovery)	(5,042	)	(5,978	)	3,244
Changes in operating assets and liabilities	(13,932	)	15,182		7,793
Cash provided by operating activities	219,272		207,680		192,395
INVESTING ACTIVITIES
Additions to property and equipment	(6,743	)	(5,563	)	(6,071	)
Acquisition of subsidiaries, net of cash acquired	(290,204	)	(142,700	)	(115,561	)
Cash used in investing activities	(296,947	)	(148,263	)	(121,632	)
FINANCING ACTIVITIES
Payment of debt issuance costs	(53	)	(43	)	(1,118	)
Issuance of common shares for cash, net of issuance costs	12,391		9,272		1,730
Payment of withholding taxes on net share settlements	(6,745	)	(4,886	)	–
Payment of contingent consideration	(9,223	)	(19,084	)	(5,215	)
Cash used in financing activities	(3,630	)	(14,741	)	(4,603	)
Effect of foreign exchange rate changes on cash	(3,509	)	(109	)	(3,212	)
Increase (decrease) in cash	(84,814	)	44,567		62,948
Cash, beginning of year	320,952		276,385		213,437
Cash, end of year	236,138		320,952		276,385

MIL-OSI: Clairvest Announces New Normal Course Issuer Bid

Source: GlobeNewswire (MIL-OSI)

TORONTO, March 05, 2025 (GLOBE NEWSWIRE) — Clairvest Group Inc. (TSX: CVG) today announced that the Toronto Stock Exchange has accepted a notice filed by Clairvest of its intention to make a new normal course issuer bid (“NCIB”). Clairvest’s current NCIB expires on March 7, 2025. The notice provides that the Corporation may, during the 12-month period commencing March 10, 2025 and ending March 9, 2026, purchase on The Toronto Stock Exchange, or other alternative Canadian trading systems, up to 718,192 common shares in total, being approximately 5% of the outstanding common shares. The average daily trading volume for the six months ending January 31, 2025 was 419 common shares. Daily purchases will be limited to 1,000 common shares, other than block purchase exceptions. Any shares purchased will be cancelled. The price which the Corporation will pay for any such shares will be the market price at the time of acquisition. The actual number of common shares which may be purchased and the timing of any such purchases will be determined by the Corporation. In total 3,806,532 common shares at a cost of approximately $56 million have been purchased under previous normal course issuer bids. The Corporation purchased 82,500 common shares on the Toronto Stock Exchange, out of an approved maximum repurchase amount of 742,620 under its current bid within the last twelve months at a weighted average price of $70.17 per share. There were 14,363,842 common shares of the Corporation outstanding on February 28, 2025.

The Corporation believes, depending upon future price movements and other factors, that its outstanding common shares may represent an attractive investment and a desirable use of a portion of its available funds.

Clairvest also announced today that, in connection with its NCIB, Clairvest has renewed its automatic share purchase plan (the “ASPP”) with a designated broker to allow for the purchase of its common shares under the NCIB, once effective, at times when Clairvest normally would not be active in the market due to applicable regulatory restrictions or internal trading black-out periods. Before the commencement of any internal trading black-out period, Clairvest may, but is not required to, instruct its designated broker to make purchases of Clairvest’s common shares under the NCIB during the ensuing black-out period in accordance with the terms of the ASPP. Such purchases will be determined by the broker in its sole discretion based on parameters established by Clairvest prior to commencement of the applicable black-out period in accordance with the terms of the ASPP and applicable TSX rules. Outside of these black-out periods, common shares will be purchasable by Clairvest at its discretion under its NCIB, once effective.

The ASPP will commence on the effective date of the NCIB and will terminate on the earliest of the date on which: (a) the maximum annual purchase limit under the NCIB has been reached; (b) the NCIB expires; or (c) Clairvest terminates the ASPP in accordance with its terms. The ASPP constitutes an “automatic securities purchase plan” under applicable Canadian securities laws.

About Clairvest

Clairvest’s mission is to partner with entrepreneurs to help them build strategically significant businesses. Founded in 1987 by a group of successful Canadian entrepreneurs, Clairvest is a top performing private equity management firm with over CAD $4.6 billion of capital under management. Clairvest invests its own capital and that of third parties through the Clairvest Equity Partners limited partnerships in owner-led businesses. Under the current management team, Clairvest has initiated investments in 67 different platform companies and generated top quartile performance over an extended period.

For further information, please contact:

Stephanie Lo
Director of Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
stephaniel@clairvest.com

MIL-OSI: AGF Reports February 2025 Assets Under Management and Fee-Earning Assets

Source: GlobeNewswire (MIL-OSI)

TORONTO, March 05, 2025 (GLOBE NEWSWIRE) — AGF Management Limited reported total assets under management (AUM) and fee-earning assets¹ of $53.8 billion as at February 28, 2025.

AUM ($ billions)	February 28, 2025	January 31, 2025	% Change Month-Over-Month	February 29, 2024	% Change Year-Over-Year
Total Mutual Fund	$31.1	$31.4		$26.1
Exchange-traded funds + Separately managed accounts	$2.9	$2.7		$1.7
Segregated accounts and Sub-advisory	$6.6	$6.8		$7.3
AGF Private Wealth	$8.6	$8.6		$7.8
Subtotal (before AGF Capital Partners AUM and fee-earning assets¹)	$49.2	$49.5		$42.9
AGF Capital Partners	$2.5	$2.8		$0.1
Total AUM	$51.7	$52.3	-1.1%	$43.0	20.2%
AGF Capital Partners fee-earning assets¹	$2.1	$2.1		$2.0
Total AUM and fee-earning assets¹	$53.8	$54.4	-1.1%	$45.0	19.6%

Average Daily Mutual Fund AUM	$31.2	$30.8		$25.8
¹ Fee-earning assets represent assets in which AGF has carried interest ownership and earns recurring fees but does not have ownership interest in the managers.

Mutual Fund AUM by Category ($ billions)	February 28, 2025	January 31, 2025	February 29, 2024
Domestic Equity Funds	$4.5	$4.5	$4.2
U.S. and International Equity Funds	$19.3	$19.7	$15.2
Domestic Balanced Funds	$0.1	$0.1	$0.1
U.S. and International Balanced Funds	$1.7	$1.7	$1.6
Domestic Fixed Income Funds	$2.0	$1.9	$1.7
U.S. and International Fixed Income Funds	$3.2	$3.2	$3.1
Domestic Money Market	$0.3	$0.3	$0.2
Total Mutual Fund AUM	$31.1	$31.4	$26.1

AGF Capital Partners AUM and fee-earning assets ($ billions)	February 28, 2025	January 31, 2025	February 29, 2024
AGF Capital Partners AUM	$2.5	$2.8	$0.1
AGF Capital Partners fee-earning assets	$2.1	$2.1	$2.0
Total AGF Capital Partners AUM and fee-earning assets	$4.6	$4.9	$2.1

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.

AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. With nearly $54 billion in total assets under management and fee-earning assets, AGF serves more than 815,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

AGF Management Limited shareholders, analysts and media, please contact:

Nick Smerek
VP, Financial Planning & Analysis
416-865-4337, InvestorRelations@agf.com

MIL-OSI: AGF Management Limited to Release First Quarter 2025 Financial Results on April 8, 2025

Source: GlobeNewswire (MIL-OSI)

TORONTO, March 05, 2025 (GLOBE NEWSWIRE) —

AGF Management Limited (TSX: AGF.B) will release its financial results for Q1 2025 on Tuesday, April 8, 2025 at approximately 7:00 a.m. ET. AGF will hold a conference call and webcast to discuss these results at 11:00 a.m. ET.

The discussion will feature remarks by Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, and Ken Tsang, Chief Financial Officer. Judy G. Goldring, President and Head of Global Distribution, and Ash Lawrence, Head of AGF Capital Partners, will also be available for the question-and-answer period with investment analysts following the presentation.

The live audio webcast with supporting materials will be available in the Investor Relations section of AGF’s website at www.agf.com or at https://edge.media-server.com/mmc/p/4ch7jtxw. Alternatively, the call can be accessed over the phone by registering here or in the Investor Relations section of AGF’s website at www.agf.com, to receive the dial-in numbers and unique PIN.

A complete archive of this discussion along with supporting materials will be available at the same webcast address within 24 hours of the end of the conference call.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.

AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. With nearly $54 billion in total assets under management and fee-earning assets, AGF serves more than 815,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

AGF Management Limited shareholders, analysts and media, please contact:

Nick Smerek
VP, Financial Planning & Analysis
416-865-4337, InvestorRelations@agf.com

MIL-OSI Canada: Budget 2025: Investing in Alberta’s future | Budget 2025 : Investir dans l’avenir de l’Alberta

As Alberta continues work to address increasing domestic and international economic pressures, Budget 2025 works to strengthen Alberta’s economy. This budget helps build communities, secure Alberta’s southern border and boost investments in the province’s economic future.

“While we work closely with partners to find solutions to a possible trade conflict, we will continue our work to make sure Alberta’s economy is strong – in and outside of the energy sector – so that we can manage any turbulence that comes our way. Budget 2025 carves our path forward in the face of this uncertainty.”

Nate Horner, President of Treasury Board and Minister of Finance

Budget 2025: Supporting a strong workforce

Alberta’s workforce is the backbone of the provincial economy. Budget 2025 continues the commitment to training and developing a skilled and resilient labour force to further grow Alberta’s economy and help businesses succeed, including:

$26.1 billion over three years from the Capital Plan, to support about 26,500 direct and 12,000 indirect jobs each year through 2027-28.
$135 million for skilled trade programs such as apprenticeship and adult learning initiatives to help Albertans gain the skills and training needed for successful careers, and support access to job opportunities.
$2 billion in 2025-26 to support and expand early learning and child-care system so parents and caregivers can participate in training, education or work opportunities.

Budget 2025: Securing our borders

Alberta’s government is committed to being a good neighbour and trading partner, and part of this commitment involves taking measures to secure the Alberta-US border. Budget 2025 includes $29 million in 2025-26 for a new Interdiction Patrol Team within the Alberta Sheriffs to tackle illegal drug and gun smuggling, human trafficking, apprehension of persons attempting to cross the border illegally, and other illegal activities along Alberta’s international land border. Budget 2025 also includes a $15 million investment over two years for three new vehicle inspection stations located near borders to the USA.

Budget 2025: Investing in post-secondary education

Budget 2025 invests a total of $7.4 billion in post-secondary education, with an operating budget of $6.6 billion in 2025-26. This includes:

$78 million per year over the next three years to create more seats in apprenticeship classes across the province to build skilled trades and apprenticeship education that will respond to the needs of industry, support the economy and connect Albertans with jobs.
$113 million to support greater demand for scholarships and the Alberta Student Grant, with $60 million funded from the Alberta Heritage Scholarship Fund.
$4 million to the First Nations Colleges Grant which is distributed equally across five colleges in rural and remote Indigenous communities.

“Our government is ensuring that Alberta students have the skills and training they need to meet the needs of today while preparing for the economy of the future. Budget 2025 makes foundational investments to meet the challenge of a rapidly growing population while supporting a sustainable post-secondary education system.”

Rajan Sawhney, Minister of Advanced Education

Budget 2025: Building communities

Alberta’s vibrant communities make Alberta the best place in Canada to live, work and raise a family. Budget 2025 invests in stronger communities across Alberta, including:

$17.2 million to increase grants made to municipalities in lieu of property taxes on government-owned property to 75 per cent, up from the current 50 per cent. By next year, the province will cover 100 per cent of the amount that would be paid if the property was taxable.
$820 million this year and $2.5 billion over three years in Local Government Fiscal Framework capital funding to help fund local infrastructure priorities.

Budget 2025: Supporting trade and diversification

Alberta continues to champion economic growth and policies that support productivity. Through Budget 2025, Alberta’s government will continue to build on current successes through:

Attracting more investment through low corporate income taxes. At eight per cent, Alberta’s corporate income tax rate is 30 per cent lower than the next lowest province.
Providing greater incentive for small- and medium-sized firms that increase their spending on research and development, with Alberta’s Innovation Employment Grant.
Promoting Alberta as a reliable partner in supporting North American and global energy security to investors. The province will optimize new and existing infrastructure to access new markets for Alberta’s energy and mineral resources.
Supporting Alberta’s agriculture producers and value-added processors, addressing barriers to trade by cultivating export markets, and working to increase market access for Alberta products.
Reinforcing Alberta as a critical contributor to North American energy security by continuing to advocate for our remarkable energy sector across Canada, the U.S., Germany, Japan and the rest of the world.

Budget 2025: Investing in business and industry

Budget 2025 continues to find ways to help Alberta’s economy grow through investments in business and industry and help our economy grow, including:

Support to attract investment in Alberta’s energy and mineral resource sector to accelerate opportunities in emerging resources.
$45 million over three years for the Investment and Growth Fund to attract investment into Alberta’s economy.
$1.8 million in Western Crop Innovations for industry-leading crop research.
$780,000 to support small- and medium-sized meat processors.
$3.1 million for the University of Calgary’s Faculty of Veterinary Medicine to expand toward a full-service veterinary diagnostic laboratory. This will give livestock producers and vets access to quicker, more affordable livestock diagnostics closer to home.

“Budget 2025 builds a stronger Alberta by growing industries, creating high-quality jobs and expanding opportunities for workers and families. With strategic investments in innovation, infrastructure and workforce development, Alberta is rising to the challenge, strengthening our province for many years to come.”

Matt Jones, Minister of Jobs, Economy and Trade

“We are advancing cutting-edge research in agriculture and supporting small and medium-sized businesses. Additionally, we are strengthening our agricultural infrastructure, ensuring quicker and more affordable services for livestock producers and veterinarians. We’re supporting innovation, attracting investment, and building a resilient economy for the future.”

RJ Sigurdson, Minister of Agriculture and Irrigation

Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.

Related information

Budget 2025

Related news

Budget 2025: Meeting the challenge (Feb 27, 2025)
Budget 2025: Meeting the challenge in health and education (Feb 27, 2025)

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Le budget de 2025 relève le défi de l’incertitude en matière de commerce et de sécurité en mettant l’accent sur l’économie.

À mesure que l’Alberta continue de répondre aux pressions économiques intérieures et internationales, le budget de 2025 vise à renforcer l’économie albertaine. Il contribue à bâtir des communautés, à assurer la sécurité de la frontière au sud de la province et à renforcer les investissements dans notre avenir économique.

« Alors que nous travaillons en étroite collaboration avec des partenaires pour trouver des solutions à un différend commercial potentiel, nous poursuivons notre travail pour nous assurer que l’économie de l’Alberta est forte, dans le secteur de l’énergie et ailleurs, afin de pouvoir gérer toute perturbation. Le budget de 2025 trace la voie à suivre face à cette incertitude. »

Nate Horner, président du Conseil du Trésor et ministre des Finances

Budget 2025 : Soutenir une main-d’œuvre solide

La main-d’œuvre albertaine est l’épine dorsale de l’économie provinciale. Le budget de 2025 maintient l’engagement envers la formation et le perfectionnement d’une main-d’œuvre qualifiée et résiliente de sorte à faire croître l’économie et aider les entreprises à réussir :

26,1 milliards de dollars sur trois ans provenant du plan d’immobilisations afin d’appuyer environ 26 500 emplois directs et 12 000 emplois indirects chaque année jusqu’en 2027-2028.
135 millions de dollars pour des programmes de métiers spécialisés, comme des initiatives d’apprentissages et d’éducation des adultes de sorte à aider les Albertains à acquérir les compétences et à suivre la formation nécessaires pour mener des carrières fructueuses, ainsi qu’à soutenir l’accès aux possibilités d’emploi.
2 milliards de dollars en 2025-26 pour appuyer et élargir le système d’apprentissage et de garde des jeunes enfants afin que les parents et les gardiens tirent parti de possibilités de formation, d’éducation ou d’emploi.

Budget 2025 : Assurer la sécurité de nos frontières

Le gouvernement de l’Alberta est résolu à être un bon voisin et un bon partenaire commercial, ce qui implique la prise de mesures pour assurer la sécurité de la frontière entre l’Alberta et les États-Unis. Le budget de 2025 prévoit 29 millions de dollars en 2025-26 pour une nouvelle équipe de « patrouille d’interdiction » (Interdiction Patrol Team) qui fait partie des shérifs de l’Alberta et sera chargée de lutter contre le trafic de drogue et d’armes et la traite de personnes, d’appréhender les personnes qui tentent de traverser la frontière illégalement et de surveiller d’autres activités illégales le long de la frontière internationale de la province. Le budget de 2025 comprend en outre un investissement de 15 millions de dollars sur deux ans pour trois nouveaux postes d’inspection de véhicules près de la frontière des États-Unis.

Budget 2025 : Investir dans l’enseignement postsecondaire

Le budget de 2025 investit en tout 7,4 milliards de dollars dans l’enseignement postsecondaire, le budget d’exploitation étant de 6,6 milliards de dollars en 2025-2026. Cette somme comprend :

78 millions de dollars par années sur trois ans pour créer un plus grand nombre de places dans les cours d’apprentissage de toute la province en vue de renforcer les métiers spécialisés et les formations en apprentissage qui répondront aux besoins de l’industrie, soutiendront l’économie et mettront les Albertains en rapport avec des emplois.
113 millions de dollars pour contribuer à satisfaire à la demande croissante de bourses et appuyer la bourse aux étudiants de l’Alberta (Alberta Student Grant), dont 60 millions de dollars provenant de l’Alberta Heritage Scholarship Fund.
4 millions de dollars pour la subvention aux collèges des Premières Nations (First Nations Colleges Grant), cette somme étant répartie également entre cinq collèges dans des communautés autochtones rurales et éloignées.

« Notre gouvernement veille à ce que les étudiants en Alberta possèdent les compétences et la formation nécessaires pour répondre aux besoins actuels, tout en se préparant à l’économie future. Le budget de 2025 réalise des investissements fondamentaux de sorte à relever les défis posés par une population en pleine croissance, tout en appuyant un système d’éducation postsecondaire durable. »

Rajan Sawhney, ministre de l’Enseignement postsecondaire

Budget 2025 : Bâtir des communautés

Les communautés dynamiques de notre province font de l’Alberta le meilleur endroit au Canada où vivre, travailler et élever une famille. Le budget de 2025 investit dans des communautés plus fortes partout en Alberta :

17,2 millions de dollars pour augmenter de 50 % à 75 % les subventions accordées aux municipalités en remplacement d’impôts fonciers à l’égard des propriétés qui appartiennent au gouvernement. D’ici l’année prochaine, la province couvrira 100 $ du montant qui serait versé si la propriété était imposable.
820 millions de dollars cette année et 2,5 milliards de dollars sur trois ans en dépenses en capital du cadre fiscal des administrations locales (Local Government Fiscal Framework) afin d’aider à financer les travaux d’infrastructures prioritaires.

Budget 2025 : Soutenir le commerce et la diversification

L’Alberta continue de favoriser la croissance économique et des politiques qui appuient la productivité. Par l’entremise du budget de 2025, le gouvernement de l’Alberta continuera de tirer parti des réussites actuelles en faisant ce qui suit :

Attirer plus d’investissements grâce à un faible taux d’imposition sur le revenu des sociétés. En Alberta, le taux de 8 % est de 30 % inférieur à celui de la province qui se classe deuxième.
Offrir de plus grands stimulants aux petites et moyennes entreprises qui augmentent leurs dépenses en recherche et développement, par l’entremise de la subvention pour l’emploi et l’innovation (Alberta’s Innovation Employment Grant).
Promouvoir l’Alberta en tant que partenaire fiable pour soutenir la sécurité énergétique nord-américaine et mondiale auprès des investisseurs. La province optimisera les infrastructures nouvelles et existantes afin d’accéder à de nouveaux marchés pour les ressources énergétiques et minérales de l’Alberta.
Soutenir les producteurs agricoles albertains et les transformateurs à valeur ajoutée de l’Alberta, s’attaquer aux obstacles au commerce en cultivant les marchés d’exportation et s’employer à améliorer l’accès au marché pour les produits de l’Alberta.
Renforcer la position de l’Alberta en tant que contributrice essentielle à la sécurité énergétique de l’Amérique du Nord en continuant de promouvoir notre secteur énergétique remarquable au Canada, aux États-Unis, en Allemagne, au Japon et dans le reste du monde.

Budget 2025 : Investir dans les entreprises et les industries

Le budget de 2025 continue de trouver des moyens de favoriser la croissance de l’économie albertaine en investissant dans les entreprises et les industries :

Soutien visant à attirer des investissements dans le secteur de l’énergie et des ressources minérales de sorte à accélérer les possibilités dans le domaine des ressources émergentes.
45 millions de dollars sur trois ans pour le fonds d’investissement et de croissance (Investment and Growth Fund) en vue d’attirer des investissements dans l’économie albertaine.
1,8 million de dollars versés à Western Crop Innovations au titre de la recherche de pointe sur les cultures.
780 000 $ pour appuyer les petites et moyennes entreprises de transformation de viande.
3,1 millions de dollars pour la Faculté de médecine vétérinaire de l’Université de Calgary en vue d’un agrandissement menant à un laboratoire de diagnostic vétérinaire complet. Les éleveurs de bétail et les vétérinaires auront alors accès à un diagnostic plus rapide, plus abordable et plus proche.

« Le budget de 2025 bâtit une Alberta plus forte en développant les industries, en créant des emplois de haute qualité et en élargissant les possibilités offertes aux travailleurs et aux familles. Grâce à des investissements stratégiques en innovation, infrastructure et perfectionnement de la main-d’œuvre, l’Alberta relève le défi pour être plus forte pendant de nombreuses années à venir. »

Matt Jones, ministre de l’Emploi, de l’Économie et du Commerce

« Nous faisons progresser la recherche de point en agriculture et nous appuyons les petites et moyennes entreprises. De plus, nous renforçons notre infrastructure agricole pour offrir des services plus rapides et plus abordables aux éleveurs de bétail et aux vétérinaires. Nous soutenons l’innovation, nous attirons les investissements et nous bâtissons une économie résiliente pour l’avenir. »

RJ Sigurdson, ministre de l’Agriculture et de l’Irrigation

Le budget de 2025 relève le défi auquel fait face l’Alberta grâce à des investissements continus dans l’éducation et la santé, une baisse des impôts pour les familles et un accent sur l’économie.

Renseignements connexes

Budget 2025

Nouvelles connexes

Budget 2025: Meeting the challenge | Budget 2025 : Relever le défi (27 février 2025)
Budget 2025: Meeting the challenge in health and education | Budget 2025 : Relever le défi dans la santé et l’éducation (27 février 2025)

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MIL OSI Canada News –

MIL-OSI USA: 25 Canadian nationals connected to nationwide multi-million dollar “grandparent scam” charged in Vermont

Source: US Immigration and Customs Enforcement

Burlington, Vt. – Canadian law enforcement provisionally arrested 23 Canadian nationals March 4 after they were indicted by federal grand jury in Vermont for participation in a “grandparent scam” uncovered by U.S. Immigration and Customs Enforcement. The scam allegedly defrauded elderly individuals in more than 40 states of over $21 million.

According to the indictment returned by the grand jury Feb. 20 and unsealed on March 4, between the summer of 2021 and June 4, 2024, the defendants engaged in a “grandparent scam” involving phone calls made from call centers in and around Montreal, Québec. During these phone calls, defendants falsely claimed to be an elderly victim’s relative, typically a grandchild, who had been arrested following a car crash and needed money for “bail.” Other defendants posed as an “attorney” representing the elderly victim’s relative. Elderly victims were often told that there was a “gag order” in place to prevent the elderly victim from telling anyone about their family member’s supposed arrest. Elderly victims were convinced to provide bail money to an individual falsely posing as a bail bondsman, who would come to the elderly victim’s home to collect the money. This money was later transmitted to Canada following cash deliveries and financial transactions, sometimes involving cryptocurrency, which, the indictment alleges, obscured the source of the money and the identities of defendants.

When Canadian law enforcement executed search warrants on June 4, 2024, at several call centers, many of the defendants were found in the act of placing phone calls to elderly victims in Virginia. The Indictment alleges the call centers were managed by Gareth West, Usman Khalid, Andrew Tatto, Stephan Moskwyn, and Ricky Ylimaki, and also charges these five defendants with conspiring to commit money laundering. The conspiracy defrauded elderly Americans out of more than $21 million.

“These individuals are accused of an elaborate scheme using fear to extort millions of dollars from victims who believed they were helping loved ones in trouble. Today’s arrests are the result of domestic collaboration as well as our critical international partnerships with our colleagues in Canada, Sûreté du Québec and the Royal Canadian Mounted Police. Tackling transnational crime is one of our greatest priorities and we’re working hand-in-hand with our neighbors to dismantle organized criminal groups that threaten our safety and security,” said ICE Homeland Security Investigations Special Agent in Charge New England Michael J. Krol.

“Today’s operation is an excellent example of ICE Canada’s partnership with the Sûreté du Québec and resulted in the disruption of a significant transnational criminal organization. We will continue to partner with the SQ, the Royal Canadian Mounted Police and other law enforcement agencies to identify and dismantle criminal organizations operating throughout North America and abroad that exploit our shared border and vulnerable population for illicit gain,” said ICE HSI Attache for Ottawa Magdalena Sigur.

“The transnational criminal conspiracy described in the Indictment preyed on vulnerable Americans throughout the United States,” observed Acting United States Attorney Michael P. Drescher. “These charges reflect the painstaking investigatory work of the Vermont-based agents from Homeland Security Investigations and the Internal Review Service-Criminal Investigations. In addition, we recognize the extensive investigative assistance provided by Sûreté du Québec and the Royal Canadian Mounted Police.”

“Today’s arrest of Gareth West and his co-conspirators demonstrates IRS-CI’s commitment to protecting the American people from bad actors, no matter where they are hiding.” said Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “West and his associates lead a transnational criminal enterprise with the sole intent of defrauding hundreds of retirees of their life savings by preying on their emotions and deceiving them into thinking that their loved ones were in peril. IRS-CI is committed to continued collaboration with our law enforcement partners, both at home and abroad, to stop and deter anyone who seeks to profit off the hard work of U.S. citizens.”

“For the Quebec Provincial Police and Homeland Security Investigations, transnational criminal organizations are a significant concern that requires close collaboration. Criminal networks operate beyond borders; thus, it is crucial to have strong partnerships among law enforcement. Today’s arrests highlight the efficiency of our joint efforts, demonstrating that our cooperation delivers concrete results in enhancing public safety on both sides of the border,” said Chief Inspector Michel Patenaude

An indictment contains only allegations, and defendants are presumed innocent until and unless proven guilty.

West, Khalid, Tatto, Moskwyn and Ricky Ylimaki face up to 40 years of imprisonment if convicted, and the remaining defendants face up to 20 years of imprisonment if convicted.

The investigation was led by ICE and IRS-CI with the assistance of U.S. Customs and Border Protection and the Quebec Provincial Police (Sûreté du Québec) in Canada. The Royal Canadian Mounted Police conducted the provisional arrests in Canada. Significant assistance was provided by the U.S. Department of Justice Office of International Affairs as well as the International Assistance Group at Justice Canada. This case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.

More information about Organized Crime Drug Enforcement Task Forces

Individuals charged in the indictment:

Gareth West, a.k.a. “Buddy” and “Muscles,” (38 – Burlington, Ontario)
Usman Khalid, a.k.a. “Paul” and “Pauly,” (36 – Les Coteaux, Québec)
Andrew Tatto, a.k.a. “Chevy” and “Truck,” (43 – Pierrefonds, Québec)
Stephan Moskwyn, a.k.a. “HK,” (42 – Pierrefonds, Québec)
Ricky Ylimaki, a.k.a. “Ruffles,” (31 – Notre-Dame-de-l’Île-Perrot, Québec)
Richard Frischman, a.k.a. “Styx,” (31 – Montréal, Québec)
Adam Lawrence, a.k.a. “Carter,” (41 – Lasalle, Québec)
Michael Filion, a.k.a. “Elvis,” (45 – Pierrefonds, Québec)
Jimmy Ylimaki, a.k.a. “Coop,” (35 – Notre-Dame-de-l’Île-Perrot, Québec)
Nicolas Gonzalez, a.k.a. “Brady,” (27 – Kirkland, Québec)
Ryan Melanson, a.k.a. “Parker,” (27 – Montréal, Québec)
Joy Kalafatidis, a.k.a. “Blondie,” (31 – Pointe-Claire, Québec)
David Arcobelli, a.k.a. “Phil,” (36 – Pierrefonds, Québec)
Jonathan Massouras, a.k.a. “Borze,” (35 – Dollard-Des Ormeaux, Québec)
Nicholas Shiomi, a.k.a. “Keanu,” (42 – Montréal, Québec)
Antonio Iannacci, a.k.a. “DJ,” (33 – Pierrefonds, Québec)
Jonathan Ouellet, a.k.a. “Sunny,” (29 – Saint-Eustache, Québec)
Kassey-Lee Lankford, a.k.a. “Lex,” (28 – Vaudreuil-Dorion, Québec)
Sara Burns, a.k.a. “Ginger,” (31 – Dollard-Des Ormeaux, Québec)
Justin Polenz, a.k.a. “Happy,” (34 – Montréal, Québec)
Ryan Thibert, a.k.a. “Toast,” (37 – Vaudreuil-Dorion, Québec)
Michael Farella, a.k.a. “Honda,” (29 – Sainte-Geneviève, Québec)
Sebastian Guenole, a.k.a. “Tweeter,” (30 – Pierrefonds, Québec)
Ryan Bridgman, a.k.a. “Clint,” (37 – Deux-Montagnes, Québec)
Stephanie-Marie Samaras, a.k.a. “North” (29 – Laval, Québec)

All but two of the above-named individuals were arrested in Canada on March 4. West and Jimmy Ylimaki remain at large.

An additional nine individuals have previously been charged in the District of Vermont in connection with this grandparent scam, including Otmane Khalladi (32 – Miami, Florida), Jean Richard Audate (39 – New York, New York), Philippe Alvarez (34 – Montréal, Québec), Paul Conneh (37 – Guangzhou, China), Dave Leblanc (37 – Greenacres, Florida), Zavier Buchanan (27 – Wellington, Florida), William Comfort (29 – Los Angeles, California), Alejandro Garcia (34 – Miami, Florida), and Enmanuel Castillo (31 – Miami, Florida).

If you or someone you know has been a victim of elder fraud, help is standing by at the National Elder Fraud Hotline (833-FRAUD-11). This hotline is a free resource created by the U.S. Department of Justice, Office for Victims of Crime for people to report fraud against anyone age 60 or older.

View the indictment

MIL OSI USA News –

MIL-OSI: Ledyard Financial Group to Present at the Banking Virtual Investor Conference March 6th

Source: GlobeNewswire (MIL-OSI)

HANOVER, N.H., March 05, 2025 (GLOBE NEWSWIRE) — Ledyard Financial Group (LFGP), based in Hanover, New Hampshire, today announced that Josephine Moran, President and CEO, along with Peter Sprudzs, Executive Vice President and Chief Financial Officer, will present live at the Banking Virtual Investor Conference hosted by VirtualInvestorConferences.com, on March 6^th, 2025.

DATE: March 6^th
TIME: 1:30 PM ET
LINK: https://bit.ly/41IXZ1t
Available for 1×1 meetings: March 7^th, 10^th, and 11^th.

This will be a live, interactive online event where investors are invited to ask the company questions in real-time. If attendees are not able to join the event live on the day of the conference, an archived webcast will also be made available after the event.

It is recommended that online investors pre-register and run the online system check to expedite participation and receive event updates.

Learn more about the event at www.virtualinvestorconferences.com.

Recent Company Highlights

2024 net income of $3.3 million exceeded 2023 results.
Total assets ended at $950 million, up 11% over the prior year.
Loans grew 38% and client deposits grew 32%, notably exceeding comparable industry growth rates.
Credit reserves increased 35% or $1.0 million, to $3.8 million.
Assets under management rose 10% and related revenue rose 12% over 2023.

About Ledyard Financial Group
Ledyard, a full-service bank with a $2.1 billion wealth management division (Ledyard Wealth Management), has a mission to help individuals and businesses make clear, confident decisions about how to save, borrow and manage their finances. The bank’s unique combination of expert advice, leading-edge financial solutions and personal attention represent the highest standard of client advocacy and responsiveness.

About Virtual Investor Conferences^®
Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly traded companies to seamlessly present directly to investors.

Providing a real-time investor engagement solution, VIC is specifically designed to offer companies more efficient investor access. Replicating the components of an on-site investor conference, VIC offers companies enhanced capabilities to connect with investors, schedule targeted one-on-one meetings and enhance their presentations with dynamic video content. Accelerating the next level of investor engagement, Virtual Investor Conferences delivers leading investor communications to a global network of retail and institutional investors.

CONTACTS:
Ledyard Financial Group
Peter Sprudzs
EVP, Chief Financial Officer
(603) 640-2665
InvestorRelations@ledyard.bank

Virtual Investor Conferences
John M. Viglotti
SVP Corporate Services, Investor Access
OTC Markets Group
(212) 220-2221
johnv@otcmarkets.com

MIL-OSI: Urgently Announces Fourth Quarter and Full-Year 2024 Earnings Release Date and Conference Call

Source: GlobeNewswire (MIL-OSI)

VIENNA, Va., March 05, 2025 (GLOBE NEWSWIRE) — Urgent.ly, Inc. (Nasdaq: ULY) (“Urgently”), a U.S.-based leading provider of digital roadside and mobility assistance technology and services, today announced that it will host a conference call on Wednesday, March 12, 2025, at 5:00 p.m. Eastern Time to discuss its financial results for the fourth quarter and full-year ended December 31, 2024. Financial results will be issued in a press release prior to the call.

Those wishing to participate via webcast should access the call through Urgently’s Investor Relations website at https://investors.geturgently.com. Those wishing to participate via telephone may dial in at 1-844-481-2521 (USA) or 1-412-317-0549 (International). The replay will be available via webcast through Urgently’s Investor Relations website.

About Urgently

Urgently is focused on helping everyone move safely, without disruption, by safeguarding drivers, promptly assisting their journey, and employing technology to proactively avert possible issues. The company’s digitally native software platform combines location-based services, real-time data, AI and machine-to-machine communication to power roadside assistance solutions for leading brands across automotive, insurance, telematics and other transportation-focused verticals. Urgently fulfills the demand for connected roadside assistance services, enabling its partners to deliver exceptional user experiences that drive high customer satisfaction and loyalty, by delivering innovative, transparent and exceptional connected mobility assistance experiences on a global scale. For more information, visit www.geturgently.com.

Contacts:
For Press: media@geturgently.com
For Investor Relations: investorrelations@geturgently.com

MIL-OSI: Fitch Ratings Revises Outlook on SiriusPoint to Positive Based on Significant Underwriting Performance Improvement

Source: GlobeNewswire (MIL-OSI)

HAMILTON, Bermuda, March 05, 2025 (GLOBE NEWSWIRE) — Fitch Ratings (Fitch) has today announced that it has affirmed the ratings of SiriusPoint Ltd. (“SiriusPoint” or the “Company”), including its Long-Term Issuer Default Rating at ‘BBB’, its senior debt rating at ‘BBB-‘ and its Insurer Financial Strength (IFS) rating at ‘A-‘ (Strong) of SiriusPoint’s subsidiaries. It has also revised the Company’s Outlook to Positive from Stable.

Fitch said: “The Positive Outlook reflects significant underwriting performance improvement in 2024 and 2023 as a result of repositioning the (re)insurance portfolio and exiting non-core lines in order to improve profitability and reduce overall volatility.”

Key drivers of the ratings include the completed transaction for the full repurchase of all outstanding shares and warrants from CM Bermuda Limited, as well as solid underwriting results in both 2024 and 2023. Fitch said it “anticipates the favourable underwriting results to continue while the company expects to grow its business, particularly in primary insurance.”

Fitch also recognizes SiriusPoint’s strong financial performance of $184m for net income 2024, while citing its “strong operating income from underwriting profits, increased investment income and a gain of $96m on the deconsolidation of an MGA.”

SiriusPoint CEO, Scott Egan said: “Fitch Ratings’ decision to improve SiriusPoint’s Outlook to Positive follows nine consecutive quarters of strong operating performance. The outlook revision validates the measurable progress we have made in repositioning our business, building out a successful underwriting platform, and growing a track record of performance, while also strengthening and simplifying our capital structure. This decision is a reflection of the contribution and hard work of our global team. We look forward to continuing our momentum towards additional favourable outcomes for the Company and its stakeholders.”

Click here for full details in the Fitch press release.

Contacts
Investor Relations
Liam Blackledge, SiriusPoint
Liam.Blackledge@siriuspt.com
+ 44 203 772 3082

Media
Stephen Breen, Rein4ce
Stephen.breen@rein4ce.co.uk
+ 44 7843 076556

About SiriusPoint

SiriusPoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world. Bermuda-headquartered with offices in New York, London, Stockholm and other locations, we are listed on the New York Stock Exchange (SPNT). We have licenses to write Property & Casualty and Accident & Health insurance and reinsurance globally. Our offering and distribution capabilities are strengthened by a portfolio of strategic partnerships with Managing General Agents and Program Administrators within our Insurance & Services segment. With over $2.6 billion total capital, SiriusPoint’s operating companies have a financial strength rating of A- (Excellent) from AM Best, S&P and Fitch, and A3 from Moody’s.

FORWARD-LOOKING STATEMENTS

We make statements in this press release that are forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties include, but are not limited to, the impact of general economic conditions and conditions affecting the insurance and reinsurance industry; the adequacy of our reserves; fluctuation in the results of operations; pandemic or other catastrophic event; uncertainty of success in investing in early-stage companies, such as the risk of loss of an initial investment, highly variable returns on investments, delay in receiving return on investment and difficulty in liquidating the investment; our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations; trends in insured and paid losses; regulatory and legal uncertainties; and other risk factors described in SiriusPoint’s Annual Report on Form 10-K for the period ended December 31, 2024.

Except as required by applicable law or regulation, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events, or other circumstances after the date of this press release.

MIL-OSI Security: Gang Member Sentenced to 12 Years in Prison for Kidnapping and Drug Conspiracy

Source: Office of United States Attorneys

BOSTON – A Lawrence, Mass. man was sentenced yesterday in federal court in Boston for conspiring to commit kidnapping, smuggling drugs into the Essex County Jail, distributing fentanyl and cocaine and unlawful possession of a firearm.

Justin Suriel, 28, was sentenced by U.S. District Court Judge Indira Talwani to 12 years in prison, to be followed by five years of supervised release. In August 2024, Suriel pleaded guilty to being a felon in possession of a firearm and ammunition; conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and 500 grams or more of cocaine and Suboxone;, possession with intent to distribute 40 grams or more of fentanyl; distribution and possession with intent to distribute cocaine; and conspiracy to commit kidnapping.

Suriel was charged in November 2021 along with 12 others in connection with a large drug conspiracy centering around the Gangster Disciples in Lawrence, Haverhill and Methuen, Mass. The investigation, which began in August 2020, intercepted communications between Gangster Disciples’ leaders, members and drug suppliers pertaining to their alleged distribution of fentanyl, cocaine, methamphetamine and Suboxone in Massachusetts, Maine and southern New Hampshire as well as into the Essex County Jail.

Calls were intercepted between Suriel and other gang members, who conspired to kidnap and assault a marijuana supplier from Maine. Intercepted phone calls also uncovered Suriel’s cocaine and fentanyl distribution operation, wherein he used gang members to sell drugs throughout the Merrimack Valley area of Massachusetts. The calls also revealed that Suriel offered protection to his cocaine supplier, remarking that he would “shoot bullets” for anyone bothering his drug supplier. During a search of Suriel’s residence a loaded firearm was recovered.

United States Attorney Leah B. Foley; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Colonel Geoffrey Noble made the announcement today. Valuable assistance was provided by the Drug Enforcement Administration, New England Field Division; Homeland Security Investigations in Boston; Maine Drug Enforcement Agency; and the Andover, Haverhill, Lawrence, Chelmsford and Brockton Police Departments. Assistant U.S. Attorney Philip C. Cheng of the Organized Crime and Gang Unit is prosecuting the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/PSN.

MIL-OSI Security: Bristol Man Sentenced to More Than 15 Years in Federal Prison for Violent Robbery Spree in 2022

Source: Office of United States Attorneys

Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that LONNY CROSS, 46, of Bristol, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 188 months of imprisonment, followed by three years of supervised released, for committing numerous violent robberies across Connecticut in September and October 2022.

According to court documents and statements made in court, between September 5 and October 13, 2022, Cross committed 37 robberies and attempted robberies of gas station convenience stores, mini-markets, and liquor stores in North Branford, Waterbury, Wolcott, Plymouth, New Haven, North Haven, Orange, West Haven, Wethersfield, Bristol, Southington, Naugatuck, Watertown, Franklin, Norwich, Waterford, Groton City, Stonington, Ledyard, Darien, Norwalk, Stratford, and Seymour, Connecticut, and Port Chester, New York. In total, Cross stole more than $58,000 in cash. Several of the robberies occurred on the same day, only minutes apart.

For many of the robberies, Cross traveled to the store with Rebecca Barbera, who would sometimes enter the store to determine the number of employees and customers in the store, exit the store, and then report that information to Cross. Cross then entered the store, displayed a knife or facsimile firearm while threatening employees with statements including “I know where you work” and “if you call the police I’ll come back and blow your head off,” and stole cash and other items.

Cross grabbed some victims and held a knife to them. During a robbery in Wethersfield on September 24, 2022, Cross threatened the 12-year-old son of the store owner with a knife and robbed the register. The boy was alone behind the counter while his father was in a back office when Cross entered the store.

On October 14, 2022, investigators conducted court-authorized searches of Cross’s residence and a black 2014 Chevrolet Impala that Cross was known to drive. The search of the residence revealed clothing consistent with clothing worn by Cross in several of the robberies, as well as quantities of heroin, crack cocaine, and narcotics paraphernalia. A search of the car revealed 120 bags heroin, approximately 14 grams of crack, and a knit hat matching the description of one worn by Cross during a robbery the day before. Cross, who was on state parole for prior robbery convictions, was arrested on state charges on that date. The morning after his arrest, from jail, Cross directed Barbera and others to go to a storage unit and dispose of a weapon he had used in the robberies.

Cross’s criminal history includes 18 convictions for robbery and other offenses. He engaged in two previous robbery sprees and received state sentences of 10 years of incarceration and 15 years of incarceration, respectively.

Cross has been detained since his arrest. On May 21, 2024, he pleaded guilty to one count of conspiracy to commit Hobbs Act Robbery, and one count of Hobbs Act Robbery.

Barbera pleaded guilty to a related charge and awaits sentencing.

This investigation was conducted by the Federal Bureau of Investigation, Connecticut State Police, Orange Police Department, Port Chester (N.Y.) Police Department, and numerous other police departments from the municipalities where the robberies occurred, with the assistance of Connecticut State Parole. The case was prosecuted by Assistant U.S. Attorney Robert S. Ruff.

MIL-OSI Security: Three Wanted Defendants from Mexico Secured in Arizona

Source: Office of United States Attorneys

PHOENIX, Ariz. – Jose Bibiano Cabrera-Cabrera, 37; Jesus Humberto Limon-Lopez, 43; and Jose Guadalupe Tapia-Quintero, 53; all of Mexico, appeared last week for their initial appearances after they were secured from Mexico on February 27, 2025.

The defendants taken into U.S. custody include leaders and managers of drug cartels recently designated as Foreign Terrorist Organizations and Specially Designated Global Terrorists, such as the Sinaloa Cartel, Cártel de Jalisco Nueva Generación (CJNG), Cártel del Noreste (formerly Los Zetas), La Nueva Familia Michoacana, and Cártel de Golfo (Gulf Cartel). These defendants are collectively alleged to have been responsible for the importation into the United States of massive quantities of poison, including cocaine, methamphetamine, fentanyl, and heroin, as well as associated acts of violence.

Tapia-Quintero is charged with Conspiracy to Distribute Methamphetamine with Intent to Import into the United States; Conspiracy to Import Methamphetamine; Conspiracy to Possess with the Intent to Distribute Methamphetamine; Conspiracy to Commit Promotional Money Laundering; Conspiracy to Commit Concealment Money Laundering; and Aiding and Abetting. He is facing up to life imprisonment.

Limon-Lopez is charged with Continuing Criminal Enterprise; Conspiracy to Distribute Methamphetamine, Fentanyl, Heroin, and Cocaine; Conspiracy to Import Methamphetamine, Fentanyl, Heroin, and Cocaine; Distribution of Methamphetamine; Distribution of Fentanyl; Distribution of Heroin; Distribution of Cocaine; and Conspiracy to Unlawfully Export Firearms and Ammunition. He faces up to life imprisonment.

Cabrera-Cabrera is charged with Conspiracy to Distribute Methamphetamine, Fentanyl, Heroin, and Cocaine; Conspiracy to Import Methamphetamine, Fentanyl, Heroin, and Cocaine; and Conspiracy to Unlawfully Export Firearms and Ammunition. He faces up to life imprisonment.

An indictment is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

The OCDETF Arizona Strike Force is comprised of agents and officers from Customs and Border Protection, the Department of Homeland Security, Homeland Security Investigations, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations, the United States Marshals Service, the United States Postal Service, United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Arizona Army National Guard, the Maricopa County Sheriff’s Office, the Pima County Sheriff’s Office, and the Scottsdale Police Department. The prosecution is being handled by the United States Attorney Office for the District of Arizona.

CASE NUMBER: CR-13-00179-PHX-SRB
CR-21-01864-TUC-SHR
RELEASE NUMBER: 2025-030_Cabrera-Cabrera

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

MIL-OSI: Alto Ingredients, Inc. Reports Fourth Quarter and Year-end 2024 Results

Source: GlobeNewswire (MIL-OSI)

– Implemented Cost Savings Expected to Yield Approximately $8 Million Annually –
– Integrated Accretive Acquisition of a Beverage-grade Liquid CO₂Processor –
– Considering Asset Sales, a Merger or Other Strategic Transactions –

PEKIN, Ill., March 05, 2025 (GLOBE NEWSWIRE) — Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, reported its financial results for the quarter and year ended December 31, 2024.

Bryon McGregor, President and Chief Executive Officer of Alto Ingredients said, “During the fourth quarter of 2024 and the first quarter of 2025, we implemented cost saving initiatives, including cold idling our Magic Valley plant, and lowering total company headcount by 16%. We expect these staffing reductions to save approximately $8 million annually beginning in the second quarter of 2025. While ensuring high customer service, we rightsized the company to our smaller organizational footprint to position for long-term sustainable growth.

“On January 1^st, we acquired a beverage-grade liquid carbon dioxide processor adjacent to our Columbia site. Bolstering economics and increasing asset valuation, this immediately accretive transaction has a compelling payback of less than two years as well as opportunities for cost synergies and expanded production. At our Pekin Campus, we continue to diligently pursue opportunities to optimize carbon, which has been historically underutilized and undervalued. Lastly, with the assistance of our financial and legal advisors, we are considering a broad range of options, including asset sales, a merger or other strategic transactions to better align the long-term value potential of the company.”

Chief Financial Officer Rob Olander added, “Our restructuring has improved Alto’s financial position going forward. In doing so, during the fourth quarter of 2024, we recognized over $30 million in asset impairments and prior acquisition-related expenses, which reset our base. Combining our reduced expense run rate with our improved performance at the Pekin wet mill, our synergistic acquisition of premium liquid CO₂ processing and our entry into the European market, we are optimistic about 2025.”

Financial Results for the Three Months Ended December 31, 2024 Compared to 2023

Net sales were $236.3 million, compared to $273.6 million.
Cost of goods sold was $237.7 million, compared to $276.2 million.
Gross loss was $1.4 million, including $3.5 million in realized losses on derivatives, compared to a gross loss of $2.5 million, including $2.3 million in realized losses on derivatives.
Selling, general and administrative expenses were $7.4 million, compared to $7.8 million.
Expenses related to the Eagle Alcohol acquisition were $5.7 million, compared to $0.7 million.
Asset impairments were $24.8 million comprised of $21.4 million related to Magic Valley and $3.4 million related to Eagle Alcohol, compared to $6.0 million related to Eagle Alcohol.
Net loss attributable to common stockholders was $42.0 million, or $0.57 per share, compared to $19.3 million, or $0.26 per share.
Adjusted EBITDA was negative $7.7 million, including $3.5 million in realized losses on derivatives, compared to positive $3.5 million, including $2.3 million in realized losses on derivatives.

Cash and cash equivalents were $35.5 million at December 31, 2024, compared to $30.0 million at December 31, 2023. At December 31, 2024, the company’s borrowing availability was $88.1 million including $23.1 million under the company’s operating line of credit and $65.0 million under its term loan facility, subject to certain conditions.

Financial Results for the Twelve Months Ended December 31, 2024 Compared to 2023

Net sales were $965.3 million, compared to $1,222.9 million.
Net loss attributable to common stockholders was $60.3 million, including $32.5 million in expenses related to asset impairments and the company’s Eagle Alcohol acquisition, or $0.82 per share. This compares to $29.3 million, including $6.5 million in net expenses related to asset impairments, the company’s Eagle Alcohol acquisition and a USDA cash grant, or $0.40 per share.
Adjusted EBITDA was negative $8.5 million, including $2.5 million in realized losses on derivatives and $5.4 million in costs related to the biennial outage in the second quarter, compared to positive $20.8 million, including $1.6 million in realized gains on derivatives.

Fourth Quarter 2024 Results Conference Call
Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Wednesday, March 5, 2025, and will deliver prepared remarks via webcast followed by a question-and-answer session.

The webcast for the conference call can be accessed from Alto Ingredients’ website at www.altoingredients.com. Alternatively, to receive a number and unique PIN by email, register here. To dial directly up to twenty minutes prior to the scheduled call time, please dial (833) 630-0017 domestically and (412) 317-1806 internationally. The webcast will be archived for replay on the Alto Ingredients website for one year. In addition, a telephonic replay will be available at 8:00 p.m. Eastern Time on Wednesday, March 5, 2025, through 8:00 p.m. Eastern Time on Wednesday, March 12, 2025. To access the replay, please dial (877) 344-7529. International callers should dial 00-1 412-317-0088. The pass code will be 5306551.

Use of Non-GAAP Measures
Management believes that certain financial measures not in accordance with generally accepted accounting principles (“GAAP”) are useful measures of operations. The company defines Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision for income taxes, asset impairments, unrealized derivative gains and losses, acquisition-related expense and depreciation and amortization expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss). Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company’s performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of the company’s results as reported under GAAP.

About Alto Ingredients, Inc.
Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ projected outlook and future performance, including the timing and effects of its cost savings initiatives and its acquisition of a liquid carbon dioxide processor adjacent to its Columbia plant; Alto Ingredients’ capital projects, including its carbon capture and storage (CCS) project and opportunities to optimize carbon; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. These factors include, among others adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; adverse impacts of inflation and supply chain constraints; and the cost, ability to fund, timing and effects of, including the financial and other results deriving from, Alto Ingredients’ repair and maintenance programs, plant improvements and other capital projects, including CCS, and other business initiatives and strategies. These factors also include, among others, the inherent uncertainty associated with financial and other projections and large-scale capital projects, including CCS; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies, including with respect to the Inflation Reduction Act’s tax and other benefits Alto Ingredients expects to derive from CCS; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 8, 2024.

Company IR and Media Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755
Investorrelations@altoingredients.com

IR Agency Contact:
Kirsten Chapman, Alliance Advisors Investor Relations, 415-433-3777
altoinvestor@allianceadvisors.com

ALTO INGREDIENTS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share data)

	Three Months Ended December 31,						Years Ended December 31,
	2024			2023			2024			2023

Net sales	$	236,347		$	273,625		$	965,258		$	1,222,940
Cost of goods sold		237,738			276,150			955,536			1,207,287
Gross profit (loss)		(1,391	)		(2,525	)		9,722			15,653
Selling, general and administrative expenses		(7,358	)		(7,823	)		(29,736	)		(29,864	)
Acquisition-related expenses		(5,676	)		(700	)		(7,701	)		(2,800	)
Gain (loss) on sale of assets		—			(153	)		830			(293	)
Asset impairments		(24,790	)		(5,970	)		(24,790	)		(6,544	)
Loss from operations		(39,215	)		(17,171	)		(51,675	)		(23,848	)
Interest expense, net		(2,474	)		(2,126	)		(7,644	)		(7,425	)
Income from cash grant		—			—			—			2,812
Other income, net		150			449			508			553
Loss before provision for income taxes		(41,539	)		(18,848	)		(58,811	)		(27,908	)
Provision for income taxes		173			97			173			97
Net loss	$	(41,712	)	$	(18,945	)	$	(58,984	)	$	(28,005	)
Preferred stock dividends	$	(319	)	$	(319	)	$	(1,269	)	$	(1,265	)
Net loss attributable to common stockholders	$	(42,031	)	$	(19,264	)	$	(60,253	)	$	(29,270	)
Net loss per share, basic and diluted	$	(0.57	)	$	(0.26	)	$	(0.82	)	$	(0.40	)
Weighted-average shares outstanding, basic and diluted		73,835			72,969			73,482			73,339

ALTO INGREDIENTS, INC. CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except par value)

ASSETS	December 31, 2024		December 31, 2023
Current Assets:
Cash and cash equivalents	$	35,469	$	30,014
Restricted cash		742		15,466
Accounts receivable, net		58,217		58,729
Inventories		49,914		52,611
Derivative instruments		3,313		2,412
Other current assets		5,463		9,538
Total current assets		153,118		168,770
Property and equipment, net		214,742		248,748
Other Assets:
Right of use operating lease assets, net		20,553		22,597
Intangible assets, net		4,509		8,498
Other assets		8,516		5,628
Total other assets		33,578		36,723
Total Assets	$	401,438	$	454,241

ALTO INGREDIENTS, INC. CONSOLIDATED BALANCE SHEETS (CONTINUED) (unaudited, in thousands, except par value)

LIABILITIES AND STOCKHOLDERS’ EQUITY	December 31, 2024			December 31, 2023
Current Liabilities:
Accounts payable	$	20,369		$	20,752
Accrued liabilities		24,214			20,205
Current portion – operating leases		4,851			4,333
Derivative instruments		1,177			13,849
Other current liabilities		7,193			6,149
Total current liabilities		57,804			65,288

Long-term debt, net		92,904			82,097
Operating leases, net of current portion		16,913			19,029
Other liabilities		8,754			8,270
Total Liabilities		176,375			174,684

Stockholders’ Equity:
Preferred stock, $0.001 par value; 10,000 shares authorized; Series A: no shares issued and outstanding as of December 31, 2024 and 2023 Series B: 927 shares issued and outstanding as of December 31, 2024 and 2023		1			1
Common stock, $0.001 par value; 300,000 shares authorized; 76,565 and 75,703 shares issued and outstanding as of December 31, 2024 and 2023, respectively		77			76
Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of December 31, 2024 and 2023		—			—
Additional paid-in capital		1,044,176			1,040,912
Accumulated other comprehensive income		4,975			2,481
Accumulated deficit		(824,166	)		(763,913	)
Total Stockholders’ Equity		225,063			279,557
Total Liabilities and Stockholders’ Equity	$	401,438		$	454,241

Reconciliation of Adjusted EBITDA to Net Loss

	Three Months Ended December 31,						Years Ended December 31,
(in thousands) (unaudited)	2024			2023			2024			2023
Net loss	$	(41,712	)	$	(18,945	)	$	(58,984	)	$	(28,005	)
Adjustments:
Interest expense		2,474			2,126			7,644			7,425
Interest income		(112	)		(265	)		(689	)		(854	)
Unrealized derivative (gains) losses		(5,495	)		8,162			(13,574	)		9,679
Acquisition-related expense		5,676			700			7,701			2,800
Provision for income taxes		173			97			173			97
Asset impairments		24,790			5,970			24,790			6,544
Depreciation and amortization expense		6,548			5,698			24,408			23,080
Total adjustments		34,054			22,488			50,453			48,771
Adjusted EBITDA	$	(7,658	)	$	3,543		$	(8,531	)	$	20,766

Segment Financials (unaudited, in thousands)

	Three Months Ended December 31,						Years Ended December 31,
	2024			2023			2024			2023
*Net Sales*
Pekin Campus, recorded as gross:
Alcohol sales	$	100,216		$	113,588		$	415,710		$	502,217
Essential ingredient sales		42,011			48,483			169,308			217,702
Intersegment sales		316			307			1,243			1,427
Total Pekin Campus sales		142,543			162,378			586,261			721,346
Marketing and distribution:
Alcohol sales, gross	$	37,230		$	46,844		$	216,295		$	262,587
Alcohol sales, net		60			73			229			365
Intersegment sales		2,831			2,920			10,833			11,654
Total marketing and distribution sales		40,121			49,837			227,357			274,606

Western production, recorded as gross:
Alcohol sales	$	41,306		$	44,496		$	115,389		$	166,971
Essential ingredient sales		12,769			16,650			36,953			57,264
Intersegment sales		—			35			(122	)		134
Total Western production sales		54,075			61,181			152,220			224,369

Corporate and other		2,755			3,491			11,374			15,834
Intersegment eliminations		(3,147	)		(3,262	)		(11,954	)		(13,215	)
Net sales as reported	$	236,347		$	273,625		$	965,258		$	1,222,940
*Cost of goods sold:*
Pekin Campus (1) (2)	$	139,899		$	163,497		$	563,033		$	710,089
Marketing and distribution		36,348			46,311			213,023			259,234
Western production (1)		59,449			65,042			172,209			230,444
Corporate and other		3,592			2,802			12,285			12,122
Intersegment eliminations		(1,550	)		(1,502	)		(5,014	)		(4,602	)
Cost of goods sold as reported	$	237,738		$	276,150		$	955,536		$	1,207,287
*Gross profit (loss):*
Pekin Campus	$	2,644		$	(1,119	)	$	23,228		$	11,257
Marketing and distribution		3,773			3,526			14,334			15,372
Western production		(5,374	)		(3,861	)		(19,989	)		(6,075	)
Corporate and other		(837	)		689			(911	)		3,712
Intersegment eliminations		(1,597	)		(1,760	)		(6,940	)		(8,613	)
Gross profit (loss) as reported	$	(1,391	)	$	(2,525	)	$	9,722		$	15,653

(1) – includes depreciation and amortization expense
(2) – includes unrealized gain (loss) on derivatives

Sales and Operating Metrics (unaudited)

	Three Months Ended December 31,				Years Ended December 31,
	2024		2023		2024		2023
Alcohol Sales (gallons in millions)
Pekin Campus renewable fuel gallons sold		32.1		31.8		125.7		136.2
Western production renewable fuel gallons sold		22.3		20.4		60.5		67.0
Third party renewable fuel gallons sold		19.0		20.2		108.3		102.6
Total renewable fuel gallons sold		73.4		72.4		294.5		305.8
Specialty alcohol gallons sold		21.7		20.1		91.5		76.7
Total gallons sold		95.1		92.5		386.0		382.5

Sales Price per Gallon
Pekin Campus	$	1.89	$	2.23	$	1.95	$	2.40
Western production	$	1.86	$	2.18	$	1.91	$	2.49
Marketing and distribution	$	1.96	$	2.32	$	2.00	$	2.56
Total	$	1.88	$	2.24	$	1.95	$	2.47

Alcohol Production (gallons in millions)
Pekin Campus		55.4		51.6		212.4		209.7
Western production		21.2		20.8		58.7		68.1
Total		76.6		72.4		271.1		277.8

Corn Cost per Bushel
Pekin Campus	$	4.17	$	5.10	$	4.45	$	6.32
Western production	$	5.79	$	6.44	$	5.73	$	7.45
Total	$	4.63	$	5.46	$	4.72	$	6.58

Average Market Metrics
PLATTS Ethanol price per gallon	$	1.60	$	1.96	$	1.69	$	2.22
CME Corn cost per bushel	$	4.26	$	4.76	$	4.24	$	5.64
Board corn crush per gallons (1)	$	0.08	$	0.26	$	0.18	$	0.21

Essential Ingredients Sold (thousand tons)
Pekin Campus:
Distillers grains		85.3		80.2		336.4		332.7
CO2		52.7		43.4		188.6		182.4
Corn wet feed		41.4		25.0		121.8		95.0
Corn dry feed		22.0		23.3		87.2		90.6
Corn oil and germ		21.0		18.2		75.1		73.8
Syrup and other		10.0		12.7		38.6		41.2
Corn meal		9.3		9.0		35.4		36.8
Yeast		5.4		6.2		23.2		25.9
Total Pekin Campus essential ingredients sold		247.1		218.0		906.3		878.4


Western production:
Distillers grains		144.3		152.0		394.5		459.7
CO2		14.6		13.8		57.7		55.5
Syrup and other		17.2		47.5		54.8		119.1
Corn oil		3.1		2.8		7.6		8.0
Total Western production essential ingredients sold		179.2		216.1		514.6		642.3

Total Essential Ingredients Sold		426.3		434.1		1,420.9		1,520.7


Essential ingredients return % (2)
Pekin Campus return		49.5%		51.9%		49.7%		45.7%
Western production return		30.3%		36.3%		32.0%		33.4%
Consolidated total return		43.1%		46.8%		45.2%		42.4%

________________
(1) Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn.
(2) Essential ingredients revenues as a percentage of total corn costs consumed.

MIL-OSI: Rigetti Computing Reports Fourth Quarter and Full-Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

BERKELEY, Calif., March 05, 2025 (GLOBE NEWSWIRE) — Rigetti Computing, Inc. (Nasdaq: RGTI) (“Rigetti” or the “Company”), a pioneer in full-stack quantum-classical computing, today announced its financial results for the fourth quarter and year ended December 31, 2024.

Fourth Quarter and Full-Year 2024 Financial Highlights

Revenues for the three months ended December 31, 2024 were $2.3 million
Operating expenses for the three months ended December 31, 2024 were $19.5 million
Operating loss for the three months ended December 31, 2024 was $18.5 million
Net loss for the three months ended December 31, 2024 was $153.0 million, including $135.1 million of non-cash charges for the fair value change in the earn-out and derivative warrant liabilities
For the year ended December 31, 2024, revenues were $10.8 million, operating expenses were $74.2 million, operating loss was $68.5 million and net loss was $201.0 million, including $133.9 million of non-cash charges for the fair value change in the earn-out and derivative warrant liabilities
As of December 31, 2024 cash, cash equivalents and available-for-sale securities totaled $217.2 million
Received net proceeds of $153.3 million during the three months ended December 31, 2024 from the sale of 88.1 million shares of common stock through a registered direct offering and completion of our at-the-market equity offering
Prepaid in full all remaining amounts owed under our loan agreement with Trinity Capital, Inc.

Business & Strategic Collaboration Updates

New strategic collaboration with Quanta Computer
Rigetti has entered into a strategic collaboration agreement with Quanta Computer, Inc. (“Quanta”), a Taiwan-based Global Fortune 500 company and the global leader of computer server manufacturing, with the goal of accelerating the development and commercialization of superconducting quantum computing. The companies have committed to investing more than $100 million each over the next five years pursuant to the collaboration agreement, with both sides focusing on their complementary strengths to develop superconducting quantum computing technologies. In addition, pursuant to a securities purchase agreement, Quanta will invest $35 million to purchase shares of Rigetti common stock, subject to regulatory clearance. The agreements were signed on February 27, 2025.

“Quanta’s collaboration with Rigetti is designed to strengthen our position in this flourishing market. Our companies’ complementary strengths — Rigetti as a pioneer in superconducting quantum technology, with open, modular architecture enabling integration of innovative solutions across the stack, and Quanta as the world’s leading notebook/server manufacturer with $43 billion in annual sales — will support us in our goal to be at the forefront of the quantum computing industry,” says Dr. Subodh Kulkarni, Rigetti CEO.

Montana State University purchases a Novera QPU
Rigetti sold a Novera QPU to Montana State University (MSU) in December 2024, which was the Company’s first QPU sale to an academic institution. The Novera will be located at MSU’s QCORE to educate and train scientists and engineers on quantum computing technologies, in addition to being used to create a testbed for quantum computing R&D. MSU’s QCORE is a new center of excellence for quantum enabling technologies established to accelerate workforce development and the regional quantum innovation ecosystem.

Technology Milestones

84-qubit Ankaa-3 system launches with record high fidelity
Rigetti launched its 84-qubit Ankaa™-3 system in December 2024. Ankaa-3 features an extensive hardware redesign that enables superior performance. Rigetti achieved major two-qubit gate fidelity milestones with Ankaa-3: successfully halving error rates in 2024 to achieve a 99.0% median iSWAP gate fidelity and demonstrating 99.5% median fidelity with fSim gates. Rigetti’s newest flagship quantum computer continues to feature Rigetti’s scalable, industry-leading chip architecture with 3D signal delivery while incorporating major enhancements to key technologies.

Ankaa-3 is available to Rigetti’s partners via the Rigetti Quantum Cloud Services platform (QCS^®) and to the general public via Microsoft Azure and Amazon Braket.

“We believe that superconducting qubits are the winning modality for quantum computers given their fast gate speeds and scalability. We’ve developed critical IP to scale our systems and remain confident in our plans to scale to 100+ qubits by the end of the year with a targeted 2x reduction in error rates from the error rates we achieved at the end of 2024. We believe our leadership in superconducting quantum computing continues to be reinforced as we push the boundaries of our system performance, as evidenced by the success of Ankaa-3,” says Dr. Kulkarni.

Successful AI-powered calibration of a Rigetti QPU
AI-powered tools from Quantum Elements and Qruise remotely automated the calibration of a Rigetti QPU integrated with Quantum Machines’ control system. This work was part of the “AI for Quantum Calibration Challenge” (the “Challenge”) hosted at the Israeli Quantum Computing Center. The two companies participating in the Challenge, Quantum Elements and Qruise, automated the calibration of a 9-qubit Rigetti Novera™ QPU integrated with Quantum Machines’ advanced OPX1000 control system and NVIDIA DGX Quantum, a unified system for quantum-classical computing that NVIDIA built with Quantum Machines. This achievement showcases the potential of AI in quantum computer calibration and also highlights the growing collaboration within the quantum computing ecosystem.

Quantum Elements, Cruise, and Quantum Machines are members of Rigetti’s Novera QPU Partner Program — an ecosystem of quantum computing hardware, software, and service providers who build and offer integral components of a functional quantum computing system.

“We believe that another advantage we leverage is our modular approach to developing our technology. By enabling our partners to integrate their technology with ours, we can explore and advance creative and flexible ways to improve quantum computing capabilities,” says Dr. Kulkarni.

Research demonstrating optical reading technique published in Nature Physics
Joint research with QphoX and Qblox demonstrating the ability to readout superconducting qubits with an optical transducer was recently published in Nature Physics. This approach to qubit signal processing could have benefits in building scalable quantum computers as it could be a more compact, modular approach for measuring qubit performance in quantum computing systems that rely on microwave amplification. Current qubit readout techniques used by superconducting quantum computer systems in cryogenic environments can be resource intensive from a thermal and power usage perspective. A potential solution to this problem may be to replace coaxial cables and other cryogenic components with optical fibers, which have a considerably smaller footprint and negligible thermal conductivity. To demonstrate the potential of this technology, QphoX, Rigetti and Qblox connected a transducer to a superconducting qubit, with the goal of measuring its state using light transmitted through an optical fiber. It was discovered that the transducer is capable of converting the signal that reads out the qubit and the qubit can also be sufficiently protected from decoherence introduced by thermal noise or stray optical photons from the transducer during operation.

Conference Call and Webcast
Rigetti will host a conference call later today, March 5, 2025, at 5:00 pm ET, or 2:00 pm PT, to discuss its fourth quarter and full-year 2024 financial results.

You can listen to a live audio webcast of the conference call at https://edge.media-server.com/mmc/p/5jaikwa8/ or the “Events & Presentations” section of the Company’s Investor Relations website at https://investors.rigetti.com/. A replay of the conference call will be available at the same locations following the conclusion of the call for one year.

To participate in the live call, you must register using the following link: https://register.vevent.com/register/BIc3642ee5e70e4bea9d3311a88c4e128a. Once registered, you will receive dial-in numbers and a unique PIN number. When you dial in, you will input your PIN and be routed into the call. If you register and forget your PIN, or lose the registration confirmation email, simply re-register to receive a new PIN.

About Rigetti
Rigetti is a pioneer in full-stack quantum computing. The Company has operated quantum computers over the cloud since 2017 and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. In 2021, Rigetti began selling on-premises quantum computing systems with qubit counts between 24 and 84 qubits, supporting national laboratories and quantum computing centers. Rigetti’s 9-qubit Novera QPU was introduced in 2023 supporting a broader R&D community with a high-performance, on-premises QPU designed to plug into a customer’s existing cryogenic and control systems. The Company’s proprietary quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing. Rigetti has developed the industry’s first multi-chip quantum processor for scalable quantum computing systems. The Company designs and manufactures its chips in-house at Fab-1, the industry’s first dedicated and integrated quantum device manufacturing facility. Learn more at https://www.rigetti.com/.

Contacts

Rigetti Computing Investor Contact:
IR@Rigetti.com

Rigetti Computing Media Contact:
press@rigetti.com

Cautionary Language Concerning Forward-Looking Statements
Certain statements in this communication may be considered “forward-looking statements” within the meaning of the federal securities laws, including statements with respect to the Company’s future success and performance, including expectations with respect to future revenues and the timing, availability and impact of government programs relating to quantum information science; expectations regarding the advantages and impact of the strategic collaboration agreement with Quanta Computer on our operations, technology roadmap, milestones, and our position in the industry; the expectation that Rigetti and Quanta will each invest more than $100 million over the next five years; expectations regarding Quanta’s anticipated $35 million investment in Rigetti through a purchase of Rigetti’s common stock; anticipated regulatory clearance; expectations related to the Company’s ability to achieve milestones including the development of future generations of hardware, including any future generations developed to achieve our targeted fidelities and qubit counts, or to demonstrate narrow quantum advantage or broad quantum advantage, each of which is an important anticipated milestone for our technology roadmap and commercialization of our quantum computers; expectations with respect to scaling to create larger qubit systems without sacrificing gate performance using the Company’s modular chip architecture, including expectations with respect to the Company’s anticipated systems and targeted error rate reduction; expectations with respect to future sales or leases of the Novera QPU, customer adoption of the Ankaa-3 systems and Novera QPU; the possibility that reading out superconducting qubits with an optical transducer could have benefits in building scalable quantum computers; the possibility that replacing coaxial cables and other cryogenic components with optical fibers could result in less thermal and power usage; expectations with respect to the Company’s partners and customers and the quantum computing plans and activities thereof; and expectations with respect to the anticipated stages of quantum technology maturation, including the Company’s ability to develop a quantum computer that is able to solve practical, operationally relevant problems significantly better, faster, or cheaper than a current classical solution and achieve quantum advantage on the anticipated timing or at all. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the Company’s ability to achieve milestones, technological advancements, including with respect to its technology roadmap; the ability of the Company to obtain government contracts successfully and in a timely manner and the availability of government funding; the potential of quantum computing; the ability of the Company to expand its QPU sales and the Novera QPU Partnership Program; the success of the Company’s partnerships and collaborations, including the strategic collaboration with Quanta Computer; the Company’s ability to accelerate its development of multiple generations of quantum processors; the outcome of any legal proceedings that may be instituted against the Company or others; the ability to maintain relationships with customers and suppliers and attract and retain management and key employees; costs related to operating as a public company; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, or competitive factors; the Company’s estimates of expenses and profitability; the evolution of the markets in which the Company competes; the ability of the Company to implement its strategic initiatives and expansion plans; the expected use of proceeds from the Company’s past and future financings or other capital; the sufficiency of the Company’s cash resources; unfavorable conditions in the Company’s industry, the global economy or global supply chain, including rising inflation and interest rates, deteriorating international trade relations, political turmoil, natural catastrophes, warfare and terrorist attacks; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements other than as required by applicable law. The Company does not give any assurance that it will achieve its expectations.

RIGETTI COMPUTING, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except number of shares and par value)

	December 31,			December 31,
	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	67,674		$	21,392
Available-for-sale investments – short-term		124,420			78,537
Accounts receivable		2,427			5,029
Prepaid expenses		3,156			1,938
Other current assets		9,081			771
Total current assets		206,758			107,667
Available-for-sale investments – long-term		25,068			—
Property and equipment, net		44,643			44,483
Operating lease right-of-use assets		7,993			7,634
Other assets		325			129
Total assets	$	284,787		$	159,913

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	1,590		$	5,772
Accrued expenses and other current liabilities		8,005			8,563
Current portion of deferred revenue		113			343
Current portion of debt		—			12,164
Current portion of operating lease liabilities		2,159			2,210
Total current liabilities		11,867			29,052
Debt, less current portion		—			9,894
Deferred revenue, less current portion		698			—
Operating lease liabilities, less current portion		6,641			6,297
Derivative warrant liabilities		93,095			2,927
Earn-out liabilities		45,897			2,155
Total liabilities		158,198			50,325
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized, none outstanding		—			—
Common stock, par value $0.0001 per share, 1,000,000,000 shares authorized, 283,546,871 shares issued and outstanding at December 31, 2024 and 147,066,336 shares issued and outstanding at December 31, 2023		29			14
Additional paid-in capital		681,202			463,089
Accumulated other comprehensive income		105			244
Accumulated deficit		(554,747	)		(353,759	)
Total stockholders’ equity		126,589			109,588
Total liabilities and stockholders’ equity	$	284,787		$	159,913

RIGETTI COMPUTING, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)


	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Revenue	$	2,274		$	3,376		$	10,790		$	12,008
Cost of revenue		1,271			860			5,093			2,800
Total gross profit		1,003			2,516			5,697			9,208
Operating expenses:
Research and development		13,657			12,787			49,750			52,768
Selling, general and administrative		5,840			6,936			24,457			27,744
Restructuring		—			—			—			991
Total operating expenses		19,497			19,723			74,207			81,503
Loss from operations		(18,494	)		(17,207	)		(68,510	)		(72,295	)
Other income (expense), net
Interest expense		(446	)		(1,268	)		(3,255	)		(5,779	)
Interest income		1,546			1,330			5,113			5,076
Change in fair value of derivative warrant liabilities		(90,885	)		3,160			(90,168	)		(1,160	)
Change in fair value of earn-out liabilities		(44,256	)		1,413			(43,742	)		(949	)
Loss on extinguishment of debt		(426	)		—			(426	)		—
Total other expense, net		(134,467	)		4,635			(132,478	)		(2,812	)
Net loss before provision for income taxes		(152,961	)		(12,572	)		(200,988	)		(75,107	)
Provision for income taxes		—			—			—			—
Net loss	$	(152,961	)	$	(12,572	)	$	(200,988	)	$	(75,107	)
Net loss per share attributable to common stockholders – basic and diluted	$	(0.68	)	$	(0.09	)	$	(1.09	)	$	(0.57	)
Weighted average shares used in computing net loss per share attributable to common stockholders – basic and diluted		226,364			140,537			184,666			131,977

RIGETTI COMPUTING INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
(in thousands)

	Year Ended December 31,
	2024			2023
Cash flows from operating activities:
Net loss	$	(200,988	)	$	(75,107	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		6,906			7,426
Stock-based compensation		13,069			12,409
Change in fair value of earn-out liabilities		43,742			949
Change in fair value of derivative warrant liabilities		90,168			1,160
Change in fair value of forward contract		—			2,229
Impairment of deferred offering costs		—			836
Accretion of available-for-sale securities		(3,622	)		(3,121	)
Loss on extinguishment of debt		426			—
Amortization of debt issuance costs, commitment fees and accretion of final payment fees		844			1,453
Non-cash lease expense		1,909			1,682
Changes in operating assets and liabilities:
Accounts receivable		2,602			1,206
Prepaid expenses, other current assets and other assets		(2,434	)		(259	)
Deferred revenue		468			(618	)
Accounts payable		(1,036	)		895
Accrued expenses and operating lease liabilities		(2,681	)		(1,719	)
Net cash used in operating activities		(50,627	)		(50,579	)
Cash flows from investing activities:
Purchases of property and equipment		(11,098	)		(9,059	)
Purchases of available-for-sale securities		(224,764	)		(109,252	)
Maturities of available-for-sale securities		157,500			119,084
Net cash (used in) provided by investing activities		(78,362	)		773
Cash flows from financing activities:
Principal repayments and prepayment and final payment fees of notes payable		(23,328	)		(8,333	)
Net payments of tax withholdings on sell-to-cover equity award transactions		(6,272	)		—
Proceeds from sale of common stock through Common Stock Purchase Agreement		12,838			20,544
Proceeds from sale of common stock through At-The-Market (ATM) Offering		97,500			—
Proceeds from sale of common stock through registered direct offering		96,000			—
Payments of offering costs		(1,833	)		(107	)
Proceeds from issuance of common stock upon exercise of stock options and warrants		554			1,126
Net cash provided by financing activities		175,459			13,230
Effects of exchange rate changes on cash and cash equivalents		(188	)		80
Net increase (decrease) in cash and cash equivalents		46,282			(36,496	)
Cash and cash equivalents – beginning of period		21,392			57,888
Cash and cash equivalents – end of period	$	67,674		$	21,392
Supplemental disclosures of other cash flow information:
Cash paid for interest	$	2,350		$	4,340
Non-cash investing and financing activities:
Capitalization of deferred costs to equity upon share issuance		—			13
Purchases of property and equipment recorded in accounts payable		466			3,612
Purchases of property and equipment recorded in accrued expenses		150			1,019
Non-cash addition to operating lease right-of-use assets and lease liability		2,268			—
Unrealized gain on short term investments		66			325

MIL-OSI: NCS Multistage Holdings, Inc. Schedules Fourth Quarter and Full Year 2024 Earnings Release and Conference Call

Source: GlobeNewswire (MIL-OSI)

HOUSTON, March 05, 2025 (GLOBE NEWSWIRE) — NCS Multistage Holdings, Inc. (“NCS” or the “Company”) (NASDAQ:NCSM) will host a conference call to discuss its fourth quarter and full year 2024 results on Tuesday March 11, 2025 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). NCS will issue its fourth quarter and full year 2024 earnings release the evening prior to the conference call.

The conference call will be available via a live audio webcast. Participants who wish to ask questions may register for the call here to receive the dial-in numbers and unique PIN. If you wish to join the conference call but do not plan to ask questions, you may join the listen-only webcast here. It is recommended that participants join at least 10 minutes prior to the event start. The replay will be available in the Investors section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.

NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies. NCS provides products and services primarily to exploration and production companies for use in onshore and offshore wells, predominantly wells that have been drilled with horizontal laterals in both unconventional and conventional oil and natural gas formations. NCS’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including the North Sea, the Middle East, Argentina and China. NCS’s common stock is traded on the Nasdaq Capital Market under the symbol “NCSM.” Additional information is available on the website, www.ncsmultistage.com.

Contact:
Mike Morrison
Chief Financial Officer and Treasurer
+1 281-453-2222
IR@ncsmultistage.com

MIL-OSI Security: Thibodaux Social Worker Sentenced to 30 Months for Healthcare Fraud

Source: Office of United States Attorneys

NEW ORLEANS – Acting United States Attorney Michael M. Simpson announced today that JOHN CHRISTOPHER BARRILLEAUX (“BARRILLEAUX”), age 64, of Thibodaux, Louisiana, was sentenced on February 27, 2025 to 30 months in prison, after previously pleading guilty to healthcare fraud, in violation of 18 U.S.C. § 1347.

According to court documents, from 2008 through 2024, BARRILLEAUX submitted false claims to private insurance companies for millions of dollars of healthcare services that were not actually provided. To hide the fraud, BARRILLEAUX created fake patient notes and submitted them to the insurance companies to support his bills.

United States District Judge Barry Ashe sentenced BARRILLEAUX to 30 months in prison, followed by 3 years of supervised release. BARRILLEAUX was also ordered to pay $4,592,650 in restitution to the victim companies, as well as a mandatory special assessment fee of $100.

Acting U.S Attorney Simpson praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Nicholas D. Moses, of the Financial Crimes Unit and Health Care Fraud Coordinator, and Trial Attorney Kelly Z. Walters, of the Department of Justice’s Criminal Division’s Fraud Section, are in charge of the prosecution.

MIL-OSI Security: Former small business office manager sentenced to 4+ years in federal prison for embezzlement, identity theft

Source: Office of United States Attorneys

A district judge sentenced a Collinsville woman to 51 months’ imprisonment after she embezzled more than $158,000 and stole the identity of a coworker while employed by AMK Heating and Cooling in Edwardsville.

Angela L. Cooper, 47, pleaded guilty to one count of wire fraud, one count of bank fraud, one count of aggravated identity theft and three counts of tax fraud. In addition to imprisonment, the judge ordered her to pay $168,536.12 in restitution and serve three years of supervised release.

“The U.S. Attorney’s Office aggressively prosecutes identity theft because the crime causes so much harm. Its victims suffer not only drained bank accounts, but they also endure sleepless nights, and it can sometimes take years to undo the damage,” said U.S. Attorney Steven D. Weinhoeft. “The U.S. Attorney’s Office is proud of our partnership with IRS Criminal Investigation and the FBI, and we will continue to hold those who harm small businesses accountable.”

According to court documents, Cooper served as the office manager for AMK and had access to the company’s checkbook and accounting software. Using these tools, Cooper fraudulently wrote more than 100 checks payable to herself and forged the signature of the business’s owner. Cooper tried to conceal her fraud by disguising the checks as payroll and loans to her from AMK. Over a two-year period, Cooper embezzled $158,658.41 from AMK.

“By nature, greed continues to grow if left unchecked. For two years, Angela Cooper found multiple ways to steal from her employer. Cooper’s greed even extended to a coworker,” said FBI Springfield Special Agent in Charge Christopher Johnson. “The FBI is proud to work alongside our IRS law enforcement partners to thwart corporate fraud and ensure justice for victims.”

While employed by AMK, Cooper also had access to employee files and personal information like birthdates and social security numbers. Cooper used a coworker’s information to apply for and fraudulently obtain a Discover credit card. Cooper maxed out the credit card, accruing $9,877.71 in charges on the card in a matter of weeks. In doing so, she committed bank fraud and aggravated identity theft, which carried a mandatory two year minimum sentence.

“Ms. Cooper broke the trust of her employer by embezzling well over $100,000 from them in her role as a bookkeeper,” said Special Agent in Charge Bill Steenson, IRS Criminal Investigation’s St. Louis Field Office. “The crime was compounded when she failed to report the stolen funds as income on her tax returns. All income is taxable, even stolen income and this sentence helps drive that point home.”

Finally, Cooper failed to report the additional income in her 2019, 2020 and 2021 tax returns to the IRS. Although fraudulently obtained, the income was required to be reported on her tax returns. Her omission of the additional income caused a tax loss of over $35,000 to the IRS.

IRS Criminal Investigation and the FBI Springfield Field Office contributed to the investigation, and Assistant U.S. Attorney Zoe Gross prosecuted the case.

MIL-OSI: GraniteShares ETFs Announces Name Change and Investment Objectives on some of its Short and Leveraged ETFs

Source: GlobeNewswire (MIL-OSI)

New York, March 05, 2025 (GLOBE NEWSWIRE) — GraniteShares today announced plans to amend the names and leverage factors for some of its short and leverage ETFs (the “Funds”). The change in leverage factor results in a modification of the investment strategy.

Effective May 04, 2025, the Funds will aim to replicate +2, -2 or -1 times the daily variations of their underlying stocks. One of the Funds already trades on the NASDAQ. The Fund’s CUSIP and ticker are not expected to change.

TICKER SYMBOL	CURRENT FUND NAME	NEW FUND NAME	CURRENT LEVERAGE FACTOR*		NEW LEVERAGE FACTOR*
AMCL⁽¹⁾	GraniteShares 1x Short AMC Daily ETF	GraniteShares 2x Long AMC Daily ETF	-100	%	200	%
ARML⁽¹⁾	GraniteShares 1x Short ARM Daily ETF	GraniteShares 2x Long ARM Daily ETF	-100	%	200	%
GMEL⁽¹⁾	GraniteShares 1x Short GME Daily ETF	GraniteShares 2x Long GME Daily ETF	-100	%	200	%
MSTP⁽¹⁾	GraniteShares 1x Short MSTR Daily ETF	GraniteShares 2x Long MSTR Daily ETF	-100	%	200	%
CONI⁽²⁾⁽³⁾	GraniteShares 1x Short COIN Daily ETF	GraniteShares 2x Short COIN Daily ETF	-100	%	-200	%
TSS⁽²⁾	GraniteShares 1.25x Short TSLA Daily ETF	GraniteShares 1x Short TSLA Daily ETF	-125	%	-100	%

CURRENT
FUND NAME

CURRENT INVESTMENT OBJECTIVE

NEW INVESTMENT OBJECTIVE

GraniteShares 1x Short AMC Daily ETF ⁽¹⁾	The Fund seeks daily inverse investment results of -1 time (-100%) the daily percentage change of the common stock of AMC Entertainment Holdings, Inc. (NYSE: AMC).	The Fund seeks daily investment results of 2 times (200%) the daily percentage change of the common stock of AMC Entertainment Holdings, Inc. (NYSE: AMC).

GraniteShares 1x Short ARM Daily ETF ⁽¹⁾	The Fund seeks daily inverse investment results of -1 time (-100%) the daily percentage change of the ADR of Arm Holdings (NASDAQ: ARM).	The Fund seeks daily investment results of 2 times (200%) the daily percentage change of the ADR of Arm Holdings (NASDAQ: ARM).

GraniteShares 1x Short GME Daily ETF ⁽¹⁾	The Fund seeks daily inverse investment results of 1 time (-100%) the daily percentage change of the common stock of GameStop Corp (NYSE: GME).	The Fund seeks daily investment results of 2 times (200%) the daily percentage change of the common stock of GameStop Corp (NYSE: GME).

GraniteShares 1x Short MSTR Daily ETF ⁽¹⁾	The Fund seeks daily inverse investment results of 1 time (-100%) the daily percentage change of the common stock MicroStrategy Inc. (NASDAQ: MSTR).	The Fund seeks daily investment results of 2 times (200%) the daily percentage change of the common stock MicroStrategy Inc. (NASDAQ: MSTR).

GraniteShares 1x Short COIN Daily ETF ⁽²⁾^{, (3)}	The Fund seeks daily inverse investment results of -1 time (-100%) the daily percentage change of the common stock of Coinbase Global, Inc. Class A (NASDAQ: COIN).	The Fund seeks daily inverse investment results of -2 times (-200%) the daily percentage change of the common stock of Coinbase Global, Inc. Class A (NASDAQ: COIN).

GraniteShares 1.25x Short TSLA Daily ETF ⁽²⁾	The Fund seeks daily investment results, before fees and expenses, of -1.25 times (-125%) the daily percentage change of the common stock of Tesla Inc, (NASDAQ: TSLA).	The Fund seeks daily investment results, before fees and expenses, of -1 time (-100%) the daily percentage change of the common stock of Tesla Inc, (NASDAQ: TSLA).

⁽¹⁾ Issued under the registration statement dated October 25, 2024
⁽²⁾ Issued under the registration statement dated October 18, 2024
⁽³⁾ Fund currently traded on NASDAQ

Capitalized terms and certain other terms used in this Supplement, unless otherwise defined in this Supplement, have the meanings assigned to them in the Prospectus.

About GraniteShares

GraniteShares is an independent ETF issuer headquartered in New York City.

GraniteShares current ETF offering is presented below:

ETF NAME	TICKER		UNDERLYING STOCK	MANAGEMENT FEE/TOTAL EXPENSES
GraniteShares 2x Long AAPL Daily ETF		AAPB	Apple		0.99%/1.15	%
GraniteShares 2x Long AMD Daily ETF		AMDL	AMD		0.99%/1.15	%
GraniteShares 1x Short AMD Daily ETF		AMDS	AMD		0.99%/1.15	%
GraniteShares 2x Long AMZN Daily ETF		AMZZ	Amazon		0.99%/1.15	%
GraniteShares 2x Long BABA Daily ETF		BABX	Alibaba		0.99%/1.15	%
GraniteShares 2x Long COIN Daily ETF		CONL	Coinbase		0.99%/1.15	%
GraniteShares 1x Short COIN Daily ETF		CONI	Coinbase		0.99%/1.15	%
GraniteShares 2x Long CRWD Daily ETF		CRWL	CrowdStrike		1.30%/1.50	%
GraniteShares 2x Long DELL Daily ETF		DLLL	Dell		1.30%/1.50	%
GraniteShares 2x Long META Daily ETF		FBL	Meta		0.99%/1.15	%
GraniteShares 2x Long INTC Daily ETF		INTW	Intel		1.30%/1.50	%
GraniteShares 2x Long INTC Daily ETF		MSFL	Microsoft		0.99%/1.15	%
GraniteShares 2x Long MU Daily ETF		INTW	Micron Technology		1.30%/1.50	%
GraniteShares 2x Long NVDA Daily ETF		NVDL	NVIDIA		0.99%/1.15	%
GraniteShares 2x Short NVDA Daily ETF		NVD	NVIDIA		0.99%/1.15	%
GraniteShares 2x Long PLTR Daily ETF		PTIR	Palantir		0.99%/1.15	%
GraniteShares 2x Short QCOM Daily ETF		QCML	Qualcomm		1.30%/1.50	%
GraniteShares 2x Long TSLA Daily ETF		TSLR	Tesla		0.95	%
GraniteShares 1.25x Long TSLA Daily ETF		TSL	Tesla		0.99%/1.15	%
GraniteShares 2x Short TSLA Daily ETF		TSDD	Tesla		0.95	%
GraniteShares 2x Short TSM Daily ETF		TSMU	Taiwan Semiconductor		1.30%/1.50	%
GraniteShares 2x Short UBER Daily ETF		UBRL	Uber		1.30%/1.50	%

ETF NAME	TICKER		EXPOSURE	MANAGEMENT FEE/TOTAL EXPENSES
GraniteShares YieldBOOST QQQ ETF		TQQY	Income on Nasdaq-100		0.99%/1.15	%
GraniteShares YieldBOOST SPY ETF		YSPY	Income on S&P 500		0.99%/1.15	%
GraniteShares YieldBOOST TSLA ETF		TSYY	Income on TSLA		0.99%/1.15	%

ETF NAME	TICKER		EXPOSURE	MANAGEMENT FEE/TOTAL EXPENSES
GraniteShares Gold Trust		BAR	Gold		0.17	%
GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF		COMB	Broad Commodities		0.25	%
GraniteShares HIPS US High Income ETF		HIPS	High Income		0.70%/3.19	%
GraniteShares Platinum Trust		PLTM	Platinum		0.50	%
GraniteShares Nasdaq Select Disruptors ETF		DRUP	U.S. Large Cap		0.60	%

Gregory FCA for GraniteShares
Kathleen Elicker, 484-889-6597
graniteshares@gregoryfca.com

Important Information

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Funds, please call (844) 476 8747 or visit www.graniteshares.com. Read the prospectus or summary prospectus carefully before investing.

The investment program of the funds is speculative, entails substantial risks and include asset classes and investment techniques not employed by more traditional mutual funds.

PRINCIPAL FUND RISKS (see the Prospectus for more information)

GraniteShares Leveraged Long and Inverse Daily ETFs are not suitable for all investors. The funds seek daily leveraged investment results and are intended to be used as short-term trading vehicles. The funds pursue daily leveraged investment objectives, which means that the funds are riskier than alternatives that do not use leverage because the fund magnifies the performance of the underlying security. The volatility of the underlying security may affect the fund return as much as, or more than, the return of the underlying security. Investors who do not understand the Funds, or do not intend to actively manage their funds and monitor their investments, should not buy the Funds. The Funds are designed to be utilized only by traders and sophisticated investors who understand the potential consequences of seeking daily inverse and/or leveraged investment results, understand the risks associated with the use of leverage and/or short sales and are willing to monitor their portfolios frequently. For periods longer than a single day, the Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Funds will lose money even if the underlying stock’s performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day. The Funds track the price of a single stock rather than an index, eliminating the benefits of diversification that most mutual funds and exchange-traded funds offer. Although the Funds will be listed and traded on an exchange, an investment in a Fund may not be suitable for every investor. The Funds pose risks that are unique and complex.

This information is not an offer to sell or a solicitation of an offer to buy shares of any Funds to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

THE FUNDS AREDISTRIBUTED BY ALPS DISTRIBIUTORS, INC. GRANITESHRES IS NOT AFFILIATED WITH ALPS DISTRIBUTORS, INC

MIL-OSI: OTC Markets Group Announces Fourth Quarter and Full Year 2024 Earnings Conference Call and Webcast

Source: GlobeNewswire (MIL-OSI)

NEW YORK, March 05, 2025 (GLOBE NEWSWIRE) — OTC Markets Group Inc. (OTCQX: OTCM) today announced it will report its financial results for the fourth quarter and fiscal year ended December 31, 2024, after the close of the U.S. capital markets on Wednesday, March 12, 2025.

In addition, OTC Markets Group will host a conference call and webcast on Thursday, March 13, 2025, at 8:30 a.m. eastern time, during which management will discuss the financial results in further detail.

Webcast:
The conference webcast and management presentation can be accessed at the following link (the replay will be available until March 12, 2026):
https://edge.media-server.com/mmc/p/n6hcdcqb

Live Call:
Participants intending to ask a question during the live call and Q&A session should also register in advance at:
https://register.vevent.com/register/BI27b59e5597d341e1a1a461fb3784f94d

Upon registration, participants will receive a dial-in number along with a unique PIN number that can be used to access the live call. Live call participants may also select a “Call Me” option.

The Annual Report, earnings release, transcript of the earnings call, and management presentation will also be available in the Investor Relations section of the OTC Markets Group website at www.otcmarkets.com/investor-relations/overview.

About OTC Markets Group Inc.

OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX^® Best Market, OTCQB^® Venture Market, and Pink^® Open Market.

Our OTC Link^® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets.

OTC Link ATS, OTC Link ECN, OTC Link NQB, and MOON ATS™ are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

Investor Contact:

Antonia Georgieva
Chief Financial Officer
Phone: (212) 220-2215
Email: ir@otcmarkets.com

Media Contact:

OTC Markets Group Inc.
Phone: (212) 896-4428
Email: media@otcmarkets.com

MIL-OSI: Amplify Energy Announces Fourth Quarter and Full-Year 2024 Results, Year-End 2024 Proved Reserves, Juniper Capital Acquisition Update and Standalone Full-Year 2025 Guidance

Source: GlobeNewswire (MIL-OSI)

HOUSTON, March 05, 2025 (GLOBE NEWSWIRE) — Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today its operating and financial results for the fourth quarter and full-year 2024, year-end 2024 proved reserves, Juniper Capital (“Juniper”) acquisition update and full-year 2025 standalone guidance for the Company.

Key Highlights

2025 strategic initiatives include:
- Completing the previously announced transformational combination with certain Juniper portfolio companies which own substantial oil-weighted producing assets and significant leasehold interests in the DJ and Powder River Basins (the “Transaction”) and integrating such assets into our operations
- Continuing the Beta development program with six completions planned for 2025 including the C-48 and the A-45 which were deferred from the 2024 program
- Expanding Magnify Energy Services, a wholly owned subsidiary of Amplify (“Magnify”), to enhance Amplify’s competitive advantage in operating our mature assets located in East Texas and Oklahoma
- Creating incremental value in East Texas by monetizing portions of our portfolio and/or participating in joint development opportunities focused within the Haynesville formation
During the fourth quarter of 2024, the Company:
- Achieved average total production of 18.5 MBoepd
- Generated net cash provided by operating activities of $12.5 million and a net loss of $7.4 million
- Delivered Adjusted EBITDA of $21.8 million and Adjusted Net Income of $5.1 million
- Generated $2.9 million of free cash flow
- Completed the sale of undeveloped Haynesville acreage in East Texas for $1.4 million
For full-year 2024, the Company:
- Achieved average total production of 19.5 MBoepd
- Generated net cash provided by operating activities of $51.3 million and net income of $12.9 million
- Delivered Adjusted EBITDA of $103.0 million and Adjusted Net Income of $35.8 million
- Generated $18.0 million of free cash flow
- Renegotiated prior surety bonds and reduced sinking fund payments by approximately $7.0 million per year
- Initiated development drilling program at Beta, with the completion of two wells, which outperformed type curves
- Generated $3.1 million of Adjusted EBITDA at Magnify
- Renegotiated the iodine contract in Oklahoma, increasing annual Adjusted EBITDA by $2.4 million
Amplify’s year-end 2024 total proved reserves, utilizing Securities and Exchange Commission (“SEC”) pricing of $75.48/Bbl for oil and NGLs and $2.13/MMBtu for natural gas, totaled 93 MMBoe and had a PV-10 value of approximately $736 million
As of December 31, 2024, Amplify had $127.0 million outstanding under the revolving credit facility
- Net Debt to Last Twelve Months (“LTM”) Adjusted EBITDA of 1.2x¹


	(1)	Net debt as of December 31, 2024, consisting of $127 MM outstanding under its revolving credit facility with ~$0.0 MM of cash and cash equivalents, and LTM Adjusted EBITDA as of the fourth quarter of 2024.

Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “In early 2024, we told stakeholders that 2024 had the potential to be a transformative year for the Company, and we believe that we delivered on that expectation throughout the year. The recently announced transaction with Juniper Capital expands our operations into the DJ and Powder River Basins, increases our scale, operating efficiency and margins, improves our inventory of attractive drilling locations, and provides us with a new core area for potential M&A activity. The transaction also resulted in a new long-term partnership with Juniper Capital, who have a long history of delivering substantial value to shareholders. At Beta, we safely and successfully initiated a drilling program, which has increased our confidence regarding the future inventory of the field and has enabled us to expand our development plans for this prolific asset in 2025 and beyond.”

Mr. Willsher continued, “While we have focused our attention and resources on these two significant initiatives, our team has also delivered value to stockholders by pursuing opportunities to reduce operating expenses and maximize the value of our existing asset base. For example, Magnify Energy Services, our wholly owned subsidiary that provides oilfield services to Amplify-operated wells, expanded meaningfully in scope, realizing a significant increase in revenue and efficiency and reducing operating costs in East Texas and Oklahoma. We also renegotiated several existing contracts, like our iodine extraction contract, to receive improved economics. Although smaller in scope, these efforts have demonstrated management’s commitment to identifying areas to improve our operations and deliver value to stockholders. On the value maximizing front, we were able to monetize a portion of our acreage with Haynesville rights for several million dollars, while retaining an interest to realize upside value.”

Mr. Willsher concluded, “We believe that our strategic and operational accomplishments in 2024 set the foundation for Amplify’s future and that in 2025 we will begin to capitalize on the growth potential of this significantly enhanced asset base. By delivering on our 2025 strategic initiatives, we believe we can create immediate and long-term value for Amplify’s stockholders.”

Juniper Capital Rocky Mountain Assets Update

On January 15, 2025, Amplify announced that it has entered into a definitive merger agreement with privately held Juniper to combine with certain Juniper portfolio companies owning assets and leasehold interests in the DJ and Powder River Basins. Such portfolio companies are oil-weighted and include approximately 287,000 net acres. We expect to close the acquisition in the second quarter of 2025. Amplify has provided more information on the portfolio companies and their assets and the value potential of the Transaction in its latest investor presentation, available on its investor relations website.

On March 4, 2025, a definitive proxy statement was filed providing additional details on the Transaction. A special meeting of stockholders, to be held virtually, has been scheduled for April 14, 2025, at 9:00 am Central Time, where stockholders of record as of March 3, 2025 can vote to approve the issuance of common stock, par value $0.01 per share (the “Common Stock”) (as described in more detail in the definitive proxy statement) in connection with the Transaction. In order to virtually attend, stockholders must register in advance at www.cesonlineservices.com/ampysm_vm prior to April 13, 2025 at 9:00 a.m. Central Time. More information can be found in the definitive proxy statement on the SEC’s website at www.sec.gov and the Company’s website, www.amplifyenergy.com, under the Investor Relations section. Upon approval from our stockholders of the issuance of Common Stock and the resulting closing of the Transaction, Amplify and Juniper are expected to own approximately 61% and 39%, respectively, of the combined company’s outstanding equity.

In anticipation of closing, Amplify is currently working with Juniper and its portfolio companies on integrating the Juniper assets into the Amplify organization. Furthermore, the Company expects to refinance a substantial portion of its outstanding debt and approximately $133 million in principal amount of the portfolio companies’ outstanding debt prior to closing the Transaction. Amplify intends to update the market with developments of the Transaction as they progress.

East Texas Haynesville Monetization Update

Starting in 2024, several operators expressed increased interest in buying or partnering with Amplify on our East Texas Haynesville interests. In December 2024, Amplify monetized ninety percent (90%) of its interests in certain units with Haynesville rights in Panola and Shelby Counties, while retaining a ten percent (10%) working interest and the ability to participate in any well drilled within the boundary of such units. Upon closing, such transaction generated approximately $1.4 million in proceeds.

In January 2025, Amplify completed a second transaction with a separate counterparty. Amplify sold ninety percent (90%) of its interest in certain units with Haynesville rights in Harrison County, Texas, in addition to 11 gross operated wells. This transaction also established an Area of Mutual Interest (“AMI”) with the counterparty covering 10,000 gross acres. Amplify retained a ten percent (10%) working interest in the units it divested and purchased a ten percent (10%) working interest in the counterparty’s acreage. Amplify generated net proceeds of $6.2 million from these transactions and estimates the AMI has more than 30 potential gross drilling locations.

2024 Year-End Proved Reserve Update

The Company’s estimated proved reserves at SEC pricing for year-end 2024 totaled 93.0 MMBoe, which consisted of 82.2 MMBoe of proved developed reserves and 10.8 MMBoe of proved undeveloped reserves. Proved developed reserves were lower year-over-year, primarily due to lower SEC pricing for oil and natural gas, which fell from $78.22 to $75.48 for oil and from $2.64 to $2.13 for natural gas, and the impact of 2024 production roll-off. Total proved reserves were comprised of 44% oil, 19% NGLs, and 37% natural gas.

At year-end 2024, Amplify’s total proved reserves and proved developed reserves had PV-10 values of approximately $736 million and $507 million, respectively, using SEC pricing. Proved developed reserve value at Bairoil was lower than 2023 due to a combination of SEC pricing, production performance and higher operating cost assumptions due to significant increases in regulated electricity rates. Proved undeveloped reserves have increased materially as a result of the successful 2024 Beta development program, with the Company adding 23 additional locations and approximately $200 million in PV-10 value. The initial production rates for the two Beta wells brought on-line in 2024 exceeded the type-curves included in our year-end reserve report, and Amplify will consider increasing the type curve assumptions for Beta development wells after evaluating results from the 2025 development program. Detail on the Company’s reserves by asset is provided in the table below. Additionally, Amplify has provided more information on its Beta development program and the substantial value potential of the field in its latest investor presentation, available on its investor relations website.

	Estimated Net Reserves¹
Region	MMBoe	% Oil and NGL	Proved Developed PV-10	Proved Undeveloped PV-10	Total Proved PV-10
			(in millions)

Beta	19.1	100%	$144	$214	$358
Oklahoma	27.0	46%	138	–	138
Bairoil	16.4	100%	118	–	118
East Texas/ North Louisiana	28.0	30%	75	4	79
Eagle Ford (Non-op)	2.5	90%	32	11	43

Total	93.0	63%	$507	$229	$736

(1)	Amplify’s year-end 2024 total proved reserves, utilizing SEC pricing of $75.48/Bbl for oil and NGLs and $2.13/MMBtu for natural gas.

Amplify’s reserves estimates were prepared by its third-party independent reserve consultant, Cawley, Gillespie & Associates, Inc.

Key Financial Results

During the fourth quarter of 2024, the Company reported a net loss of approximately $7.4 million. The net loss was primarily attributable to a non-cash unrealized loss on commodity derivatives during the period. Excluding the impact of the non-cash unrealized loss on commodity derivatives in addition to other one-time impacts, Amplify generated Adjusted Net Income of $5.1 million in the fourth quarter of 2024.

Fourth quarter Adjusted EBITDA was $21.8 million, a decrease of approximately $3.7 million from $25.5 million in the prior quarter. The decrease was primarily due to lower realized oil prices (net of hedges) in the fourth quarter compared to the prior quarter.

Free cash flow was $2.9 million for the fourth quarter, a decrease of $0.7 million compared to the prior quarter. Amplify has now generated positive free cash flow in 18 of the last 19 fiscal quarters.

	Fourth Quarter			Third Quarter
$ in millions	2024				2024
Net income (loss)		($7.4	)		$22.7
Net cash provided by operating activities		$12.5			$15.7
Average daily production (MBoe/d)		18.5			19.0
Total revenues excluding hedges		$69.0			$69.9
Adjusted EBITDA (a non-GAAP financial measure)		$21.8			$25.5
Adjusted net income (loss), (a non-GAAP financial measure)		$5.1			$9.8
Total capital		$15.3			$18.2
Free Cash Flow (a non-GAAP financial measure)		$2.9			$3.6

Revolving Credit Facility

As of December 31, 2024, Amplify had $127.0 million outstanding under its revolving credit facility, and net debt to LTM Adjusted EBITDA was 1.2x (net debt as of December 31, 2024 and 4Q24 LTM Adjusted EBITDA). Fourth quarter net debt increased from the prior quarter due to expected changes in working capital and increased development activity, primarily at Beta.

Corporate Production and Pricing

During the fourth quarter of 2024, average daily production was approximately 18.5 Mboepd, a decrease of 0.5 Mboepd from the prior quarter. The decrease in production was driven by gas volumes, which were impacted by gas plant realizations in East Texas. Our oil volumes, although slightly higher compared to the prior quarter, were impacted by platform shutdowns following the completion of the emission reduction and electrification facility projects and several unexpected well failures and subsequent interventions at Beta. With the successful completion of the electrification and emissions reduction project in the fourth quarter 2024 and the intervention projects completed by end of January 2025, we are projecting Beta production to be significantly higher than the fourth quarter, before the impact of the 2025 drilling program. As of March 2, 2025, current 7-day average production rates at Beta were 4,834 gross Bopd (3,635 net Bopd), representing an approximate 9% increase from fourth quarter 2024 volumes, with minimal contribution from the recently completed C48 well, which we continue to draw down since completing in mid-February.

The Company’s product mix for the quarter was 45% crude oil, 17% NGLs, and 38% natural gas.

	Three Months			Three Months
	Ended			Ended
	December 31, 2024			September 30, 2024

Production volumes – MBOE:
Bairoil		293			294
Beta		308			304
Oklahoma		436			454
East Texas / North Louisiana		609			638
Eagle Ford (Non-op)		60			62
Total – MBoe		1,706			1,752
Total – MBoe/d		18.5			19.0
% – Liquids		62	%		60	%

Total oil, natural gas and NGL revenues for the fourth quarter of 2024 were approximately $67.2 million, before the impact of derivatives. The Company realized a net gain on commodity derivatives of $4.1 million during the fourth quarter. Oil, natural gas and NGL revenues, net of realized hedges, decreased $3.3 million for the fourth quarter compared to the prior quarter.

The following table sets forth information regarding average realized sales prices for the periods indicated:

	Crude Oil ($/Bbl)					NGLs ($/Bbl)						Natural Gas ($/Mcf)

	Three Months Ended December 31, 2024		Three Months Ended September 30, 2024			Three Months Ended December 31, 2024			Three Months Ended September 30, 2024			Three Months Ended December 31, 2024			Three Months Ended September 30, 2024

Average sales price exclusive of realized derivatives and certain deductions from revenue	$	66.82	$	71.74		$	23.46		$	21.63		$	2.52		$	1.84
Realized derivatives		1.43		(0.24	)		–			–			0.76			1.38

Average sales price with realized derivatives exclusive of certain deductions from revenue	$	68.25	$	71.50		$	23.46		$	21.63		$	3.28		$	3.22
Certain deductions from revenue		–		–			(1.37	)		(1.33	)		(0.01	)		0.00

Average sales price inclusive of realized derivatives and certain deductions from revenue	$	68.25	$	71.50		$	22.09		$	20.30		$	3.27		$	3.22

Costs and Expenses

Lease operating expenses in the fourth quarter of 2024 were approximately $35.1 million, or $20.57 per Boe, a $1.8 million increase compared to the prior quarter. Due to increased well failures in the fourth quarter, Beta lease operating costs were higher compared to the prior quarter. Lease operating expenses do not reflect $0.9 million of income generated by Magnify in the fourth quarter.

Severance and ad valorem taxes in the fourth quarter were approximately $5.4 million, a decrease of $0.6 million compared to $6.0 million in the prior quarter, and in line with expectations. Severance and ad valorem taxes as a percentage of revenue were approximately 8.0% in the fourth quarter.

Amplify incurred $4.5 million, or $2.62 per Boe, of gathering, processing and transportation expenses in the fourth quarter, compared to $4.3 million, or $2.45 per Boe, in the prior quarter.

Cash G&A expenses in the fourth quarter were $6.3 million, an increase of $0.1 million compared to the prior quarter and in-line with expectations.

Depreciation, depletion and amortization expense in the fourth quarter totaled $8.4 million, or $4.93 per Boe, compared to $8.1 million, or $4.62 per Boe, in the prior quarter.

Net interest expense was $3.7 million in the fourth quarter, a decrease of $0.1 million compared to $3.8 million in the prior quarter.

Amplify recorded a current income tax benefit of $2.1 million in the fourth quarter.

Fourth Quarter and Full-Year Capital Investments

Cash capital investment during the fourth quarter of 2024 was approximately $15.3 million. During the fourth quarter, the Company’s capital allocation was approximately 65% for Beta development drilling and facility projects, with the remainder distributed across the Company’s other assets.

The following table details Amplify’s capital invested during the fourth quarter of 2024:

	Fourth Quarter		Full-Year
	2024 Capital		2024 Capital
	($ MM)		($ MM)
Bairoil	$	0.2	$	2.9
Beta	$	10.0	$	53.7
Oklahoma	$	0.1	$	3.2
East Texas / North Louisiana	$	2.8	$	5.6
Eagle Ford (Non-op)	$	2.1	$	4.1
Magnify Energy Services	$	0.1	$	1.1
Total Capital Invested	$	15.3	$	70.6

2025 Operations & Development Plan

The following table details Amplify’s 2025 projected capital investments of $70 – $80 million:

Capital Investment by Type (% of Total):
Beta Development	41	%
Beta Facility	16	%
Workovers & Other Facilities	25	%
Non-op Development	18	%
Total Capital Investments:	100	%

Amplify’s 2025 operations and development plan is designed to continue unlocking the underlying value of the Company’s assets. To achieve this goal, we intend to 1) continue our development program at Beta, 2) execute on low-cost, high-return workover projects, and 3) reduce operating costs by increasing activity at Magnify.

At Beta, Amplify intends to complete six wells in 2025. The C48 well, the first of the six wells to be completed in 2025, was drilled in the fourth quarter of 2024 and completed in mid-February. Similar to the A50 and C59 wells drilled in 2024, the completion of the C48 well was initially designed to target the D-sand. However, drilling conditions encountered in the D-sand and the quality of the C-Sand observed while drilling through the formation, led the team to alter the completion design and target the C-sand instead. The C48 will be the first test of the horizontal potential of the C-sand and we will share the results of the C48 well after obtaining sufficient initial production data.

In 2024 Amplify brought online two new wells at Beta, the A50 well (brought online in June) and the C59 well (brought online in October), both of which exceeded internal projections and increased Beta’s overall production approximately 15% in January 2025 compared to January of 2024. Similarly, the six Beta completions planned in 2025 are expected to significantly increase Amplify’s oil production year-over-year. Additional information regarding the Beta development plan can be found in the investor presentation on the Company’s investor relations website.

In addition to drilling and completing the six wells, Amplify intends to make continued investments in Beta’s facilities. In 2025, the Company expects to invest approximately $8 million to upgrade a 2-mile pipeline that ships all produced fluid from platform Eureka to platform Elly.

At Bairoil, we continue to focus on enhancing water-alternating-gas injection performance through targeted well recompletions and conversions, which helps offset the asset’s nominal production declines. Our plan also includes an investment at our CO₂ gas plant intended to reduce overall power usage and lease operating expenses in the second half of 2025.

Amplify’s operating strategy in Oklahoma remains focused on prioritizing a stable free cash flow profile by managing production through an active workover program, artificial lift enhancements, extending well run-times and continuing to reduce operating costs.

In East Texas, we are participating in the completion of four non-operated development projects, which we expect to be online by mid-year. The Company also continues to focus on prudent management of the field, such as optimizing field compression, artificial lift enhancement, and equipment insourcing, which is expected to improve the production profile and lower lease operating costs.

In late 2023, we formed Magnify to in-source specific oilfield services to improve service reliability and to reduce overall operating expenses for the Company. Since its inception, Magnify has generated $3.7 million of Adjusted EBITDA with a capital investment of only $1.7 million. In 2025, we expect to invest an additional $1.4 million of capital in Magnify and project 2025 Adjusted EBITDA of approximately $5 million (with an annualized run rate of $6 million by year-end). We are evaluating additional accretive services for Magnify to service Amplify operated assets.

In the Eagle Ford, we are participating in 14 gross (0.7 net) new development wells and two gross (0.4 net) recompletion projects. These non-operated wells, with highly accretive returns, are currently scheduled to be completed in the first half of 2025.

Full-Year 2025 Guidance

The following standalone guidance is subject to the cautionary statements and limitations described under the “Forward-Looking Statements” caption at the end of this press release. Amplify’s 2025 guidance is based on its current expectations regarding capital investment levels and flat commodity prices for crude oil of $71/Bbl (WTI) and natural gas of $3.75/MMBtu (Henry Hub), and on the assumption that market demand and prices for oil and natural gas will continue at levels that allow for economic production of these products. Additionally, the Company expects to invest approximately 90% of its capital in the first three quarters of the year primarily in connection with the Beta development program. Upon closing of the Transaction with Juniper, the Company will provide updated guidance to include the acquired assets.

A summary of the standalone guidance is presented below:

	FY 2025E

	Low		High

Net Average Daily Production
Oil (MBbls/d)	8.5	–	9.4
NGL (MBbls/d)	3.0	–	3.3
Natural Gas (MMcf/d)	45.0	–	51.0
Total (MBoe/d)	19.0	–	21.0

Commodity Price Differential / Realizations (Unhedged)
Oil Differential ($ / Bbl)	($3.25)	–	($4.25)
NGL Realized Price (% of WTI NYMEX)	27%	–	31%
Natural Gas Realized Price (% of Henry Hub)	85%	–	92%

Other Revenue
Magnify Energy Services ($ MM)	$4	–	$6
Other ($ MM)	$2	–	$3
Total ($ MM)	$6	–	$9

Gathering, Processing and Transportation Costs
Oil ($ / Bbl)	$0.65	–	$0.85
NGL ($ / Bbl)	$2.75	–	$4.00
Natural Gas ($ / Mcf)	$0.55	–	$0.75
Total ($ / Boe)	$2.25	–	$2.85

Average Costs
Lease Operating ($ / Boe)	$18.50	–	$20.50
Taxes (% of Revenue) ⁽¹⁾	6.0%	–	7.0%
Cash General and Administrative ($ / Boe) ⁽²⁾⁽³⁾	$3.40	–	$3.90

Adjusted EBITDA ($ MM) ⁽²⁾⁽³⁾	$100	–	$120
Cash Interest Expense ($ MM)	$12	–	$18
Capital Expenditures ($ MM)	$70	–	$80
Free Cash Flow ($ MM) ⁽²⁾⁽³⁾	$10	–	$30

⁽¹⁾ Includes production, ad valorem and franchise taxes
⁽²⁾ Refer to “Use of Non-GAAP Financial Measures” for Amplify’s definition and use of Cash G&A, Adjusted EBITDA and free cash flow, non-GAAP measures (cash income taxes, which are not included in free cash flow, are expected to range between $0 – $2 million for the year)
⁽³⁾ Amplify believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require Amplify to predict the timing and likelihood of future transactions and other items that are difficult to accurately predict. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.

Hedging

Recently, the Company took advantage of volatility in the futures market to add to its hedge position, further protecting future cash flows. Amplify executed crude oil swaps covering the second half of 2025 through year-end 2026 at a weighted average price of $68.10. The Company also added natural gas collars for a portion of 2027 with a weighted average floor of $3.63 per MMBtu and a weighted average ceiling of $3.98 per MMBtu.

The following table reflects the hedged volumes under Amplify’s commodity derivative contracts and the average fixed floor and ceiling prices at which production is hedged for January 2025 through December 2027, as of March 4, 2025:

		2025		2026		2027

Natural Gas Swaps:
Average Monthly Volume (MMBtu)		585,000		500,000		87,500
Weighted Average Fixed Price ($)	$	3.75	$	3.79	$	3.76

Natural Gas Collars:
Two-way collars
Average Monthly Volume (MMBtu)		500,000		500,000		87,500
Weighted Average Ceiling Price ($)	$	3.90	$	4.06	$	4.20
Weighted Average Floor Price ($)	$	3.50	$	3.55	$	3.50

Oil Swaps:
Average Monthly Volume (Bbls)		128,583		72,750
Weighted Average Fixed Price ($)	$	70.85	$	69.19

Oil Collars:
Two-way collars
Average Monthly Volume (Bbls)		59,500
Weighted Average Ceiling Price ($)	$	80.20
Weighted Average Floor Price ($)	$	70.00

Amplify has posted an updated investor presentation containing additional hedging information on its website, www.amplifyenergy.com, under the Investor Relations section.

Annual Report on Form 10-K

Amplify’s financial statements and related footnotes will be available in its Annual Report on Form 10-K for the year ended December 31, 2024, which Amplify expects to file with the SEC on March 5, 2025.

About Amplify Energy

Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Amplify’s operations are focused in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas / North Louisiana, and the Eagle Ford (Non-op). For more information, visit www.amplifyenergy.com.

Conference Call

Amplify will host an investor teleconference tomorrow at 10 a.m. Central Time to discuss these operating and financial results. Interested parties may join the call by dialing (888) 999-5318 at least 15 minutes before the call begins and providing the Conference ID: AEC4Q24. A telephonic replay will be available for fourteen days following the call by dialing (800) 654-1563 and providing the Access Code: 71724906. A transcript and a recorded replay of the call will also be available on our website after the call.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “may,” “will,” “would,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “outlook,” “continue,” the negative of such terms or other comparable terminology are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s expectations of plans, goals, strategies (including measures to implement strategies), objectives and anticipated results with respect thereto. These statements address activities, events or developments that we expect or anticipate will or may occur in the future, including things such as projections of results of operations, plans for growth, goals, future capital expenditures, competitive strengths, references to future intentions and other such references. These forward-looking statements involve risks and uncertainties and other factors that could cause the Company’s actual results or financial condition to differ materially from those expressed or implied by forward-looking statements. These include risks and uncertainties relating to, among other things: the Company’s ability to successfully complete the proposed business combination between the Company and certain of Juniper’s portfolio companies, or the “Mergers”; the Company’s evaluation and implementation of strategic alternatives; risks related to the redetermination of the borrowing base under the Company’s revolving credit facility; the Company’s ability to satisfy debt obligations; the Company’s need to make accretive acquisitions or substantial capital expenditures to maintain its declining asset base, including the existence of unanticipated liabilities or problems relating to acquired or divested business or properties; volatility in the prices for oil, natural gas and NGLs; the Company’s ability to access funds on acceptable terms, if at all, because of the terms and conditions governing the Company’s indebtedness, including financial covenants; general political and economic conditions, globally and in the jurisdictions in which we operate, including the Russian invasion of Ukraine, and ongoing conflicts in the Middle East, and the potential destabilizing effect such conflicts may pose for the global oil and natural gas markets; expectations regarding general economic conditions, including inflation; and the impact of local, state and federal governmental regulations, including those related to climate change and hydraulic fracturing, and the current administration’s potential reversal thereof. Please read the Company’s filings with the SEC, including “Risk Factors” in the Company’s Annual Report on Form 10-K, and if applicable, the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the Company’s Investor Relations website at https://www.amplifyenergy.com/investor-relations/sec-filings/default.aspx or on the SEC’s website at http://www.sec.gov, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements in this press release are qualified in their entirety by these cautionary statements. Except as required by law, the Company undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

No Offer or Solicitation

A portion of this press release relates to a proposed business combination transaction between the Company and certain Juniper portfolio companies. This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, in any jurisdiction, pursuant to the proposed business combination transaction or otherwise, nor shall there be any sale, issuance, exchange or transfer of the securities referred to in this document in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Important Additional Information Regarding the Mergers Will Be Filed With the SEC

In connection with the proposed transaction, the Company has filed a definitive proxy statement. The definitive proxy statement will be sent to the stockholders of the Company. The Company may also file other documents with the SEC regarding the proposed transaction. INVESTORS AND SECURITY HOLDERS OF AMPLIFY ARE ADVISED TO CAREFULLY READ THE DEFINITIVE PROXY STATEMENT AND ANY OTHER RELEVANT MATERIALS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGERS, THE PARTIES TO THE MERGERS AND THE RISKS ASSOCIATED WITH THE MERGERS. Investors and security holders may obtain a free copy of the definitive proxy statement and other relevant documents filed by Amplify with the SEC from the SEC’s website at www.sec.gov. Security holders and other interested parties will also be able to obtain, without charge, a copy of the definitive proxy statement and other relevant documents (when available) by (1) directing your written request to: 500 Dallas Street, Suite 1700, Houston, Texas or (2) contacting our Investor Relations department by telephone at (832) 219-9044 or (832) 219-9051. Copies of the documents filed by the Company with the SEC will be available free of charge on the Company’s website at http://www.amplifyenergy.com.

Participants in the Solicitation

Amplify and certain of its respective directors, executive officers and employees may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the stockholders of Amplify in connection with the proposed transaction, including a description of their respective direct or indirect interests, by security holdings or otherwise, is included in the definitive proxy statement filed with the SEC. Additional information regarding the Company’s directors and executive officers is also included in Amplify’s Notice of Annual Meeting of Stockholders and 2024 Proxy Statement, which was filed with the SEC on April 5, 2024. These documents are available free of charge as described above.

Use of Non-GAAP Financial Measures

This press release and accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, Adjusted net income, free cash flow, net debt, PV-10 and cash G&A. The accompanying schedules provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flows provided by operating activities, standardized measure of discounted future net cash flows, or any other measure of financial performance calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as Amplify does.

Adjusted EBITDA. Amplify defines Adjusted EBITDA as net income (loss) plus Interest expense; Income tax expense (benefit); DD&A; Impairment of goodwill and long-lived assets (including oil and natural gas properties); Accretion of AROs; Loss or (gain) on commodity derivative instruments; Cash settlements received or (paid) on expired commodity derivative instruments; Amortization of gain associated with terminated commodity derivatives; Losses or (gains) on sale of assets and other, net; Share-based compensation expenses; Exploration costs; Acquisition and divestiture related expenses; Reorganization items, net; Severance payments; and Other non-routine items that we deem appropriate. Adjusted EBITDA is commonly used as a supplemental financial measure by management and external users of Amplify’s financial statements, such as investors, research analysts and rating agencies, to assess: (1) its operating performance as compared to other companies in Amplify’s industry without regard to financing methods, capital structures or historical cost basis; (2) the ability of its assets to generate cash sufficient to pay interest and support Amplify’s indebtedness; and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities.

Adjusted Net Income. Amplify defines Adjusted Net Income as net income (loss) adjusted for loss (gain) on commodity derivative instruments, acquisition & divestiture related expenses, unusual and infrequent items, and the income tax expense or benefit of these adjustments using our federal statutory tax rate. Adjusted Net Income (Loss) excludes the impact of unusual and infrequent items affecting earnings that vary widely and unpredictably, including derivative gains and losses. This measure is not meant to disassociate these items from management’s performance but rather is intended to provide helpful information to investors interested in comparing our performance between periods. Adjusted net income (loss) is not considered to be an alternative to net income (loss) reported in accordance with GAAP.

Free cash flow. Amplify defines free cash flow as Adjusted EBITDA, less cash interest expense and capital expenditures. Free cash flow is an important non-GAAP financial measure for Amplify’s investors since it serves as an indicator of the Company’s success in providing a cash return on investment. The GAAP measures most directly comparable to free cash flow are net income and net cash provided by operating activities.

Net debt. Amplify defines net debt as the total principal amount drawn on the revolving credit facility less cash and cash equivalents. The Company uses net debt as a measure of financial position and believes this measure provides useful additional information to investors to evaluate the Company’s capital structure and financial leverage.

PV-10. PV-10 is a non-GAAP financial measure that represents the present value of estimated future cash inflows from proved oil and natural gas reserves that are calculated using the unweighted arithmetic average first-day-of-the-month prices for the prior 12 months, less future development and operating costs, discounted at 10% per annum to reflect the timing of future cash flows. The most directly comparable GAAP measure to PV-10 is standardized measure. PV-10 differs from standardized measure in its treatment of estimated future income taxes, which are excluded from PV-10. Amplify believes the presentation of PV-10 provides useful information because it is widely used by investors in evaluating oil and natural gas companies without regard to specific income tax characteristics of such entities. PV-10 is not intended to represent the current market value of our estimated proved reserves. PV-10 should not be considered in isolation or as a substitute for the standardized measure as defined under GAAP.

Cash G&A. Amplify defines cash G&A as general and administrative expense, less share-based compensation expense; acquisition and divestiture costs; bad debt expense; and severance payments. Cash G&A is an important non-GAAP financial measure for Amplify’s investors since it allows for analysis of G&A spend without regard to share-based compensation and other non-recurring expenses which can vary substantially from company to company. The GAAP measures most directly comparable to cash G&A is total G&A expenses.

Contacts

Jim Frew — Senior Vice President and Chief Financial Officer
(832) 219-9044
jim.frew@amplifyenergy.com

Michael Jordan — Director, Finance and Treasurer
(832) 219-9051
michael.jordan@amplifyenergy.com

Selected Operating and Financial Data (Tables)

Amplify Energy Corp.
Selected Financial Data – Unaudited
Statements of Operations Data

	Three Months			Three Months
	Ended			Ended
(Amounts in $000s, except per share data)	December 31, 2024			September 30, 2024

Revenues:
Oil and natural gas sales	$	67,189		$	68,135
Other revenues		1,832			1,723
Total revenues		69,021			69,858

Costs and Expenses:
Lease operating expense		35,100			33,255
Pipeline incident loss		2,405			247
Gathering, processing and transportation		4,468			4,290
Exploration		10			–
Taxes other than income		5,356			5,997
Depreciation, depletion and amortization		8,418			8,102
General and administrative expense		9,486			8,251
Accretion of asset retirement obligations		2,156			2,125
Realized (gain) loss on commodity derivatives		(4,052	)		(6,375	)
Unrealized (gain) loss on commodity derivatives		13,357			(18,672	)
(Gain) loss on sale of properties		(1,367	)		–
Other, net		334			38
Total costs and expenses		75,671			37,258

Operating Income (loss)		(6,650	)		32,600

Other Income (Expense):
Interest expense, net		(3,684	)		(3,756	)
Other income (expense)		(113	)		(130	)
Total other income (expense)		(3,797	)		(3,886	)

Income (loss) before reorganization items, net and income taxes		(10,447	)		28,714

Income tax benefit (expense) – current		2,132			(412	)
Income tax benefit (expense) – deferred		886			(5,650	)

Net income (loss)	$	(7,429	)	$	22,652

Earnings per share:
Basic and diluted earnings (loss) per share	$	(0.19	)	$	0.54

Selected Financial Data – Unaudited
Operating Statistics

	Three Months		Three Months
	Ended		Ended
(Amounts in $000s, except per unit data)	December 31, 2024		September 30, 2024

Oil and natural gas revenue:
Oil Sales	$	50,817	$	54,353
NGL Sales		6,602		6,096
Natural Gas Sales		9,770		7,686
Total oil and natural gas sales – Unhedged	$	67,189	$	68,135

Production volumes:
Oil Sales – MBbls		760		758
NGL Sales – MBbls		299		301
Natural Gas Sales – MMcf		3,883		4,165
Total – MBoe		1,706		1,752
Total – MBoe/d		18.5		19.0

Average sales price (excluding commodity derivatives):
Oil – per Bbl	$	66.82	$	71.74
NGL – per Bbl	$	22.09	$	20.29
Natural gas – per Mcf	$	2.52	$	1.85
Total – per Boe	$	39.37	$	38.88

Average unit costs per Boe:
Lease operating expense	$	20.57	$	18.98
Gathering, processing and transportation	$	2.62	$	2.45
Taxes other than income	$	3.14	$	3.42
General and administrative expense	$	5.56	$	4.71
Realized gain/(loss) on commodity derivatives	$	2.38	$	3.64
Depletion, depreciation, and amortization	$	4.93	$	4.62

Selected Financial Data – Unaudited
Asset Operating Statistics

	Three Months			Three Months
	Ended			Ended
	December 31, 2024			September 30, 2024

Production volumes – MBOE:
Bairoil		293			294
Beta		308			304
Oklahoma		436			454
East Texas / North Louisiana		609			638
Eagle Ford (Non-op)		60			62
Total – MBoe		1,706			1,752
Total – MBoe/d		18.5			19.0
% – Liquids		62	%		60	%

Lease operating expense – $M:
Bairoil	$	11,800		$	13,164
Beta		12,113			9,520
Oklahoma		3,948			3,644
East Texas / North Louisiana		5,887			5,592
Eagle Ford (Non-op)		1,351			1,335
Total Lease operating expense:	$	35,099		$	33,255

Capital expenditures – $M:
Bairoil	$	190		$	1,224
Beta		10,001			12,047
Oklahoma		168			1,449
East Texas / North Louisiana		2,758			2,303
Eagle Ford (Non-op)		2,125			1,157
Magnify Energy Services		82			44
Total Capital expenditures:	$	15,324		$	18,224

Selected Financial Data – Unaudited
Balance Sheet Data

(Amounts in $000s)	December 31, 2024			September 30, 2024

Assets
Cash and Cash Equivalents	$	–		$	–
Accounts Receivable		39,713			32,295
Other Current Assets		32,064			37,862
Total Current Assets	$	71,777		$	70,157

Net Oil and Gas Properties	$	386,218		$	378,871
Other Long-Term Assets		289,081			290,188
Total Assets	$	747,076		$	739,216

Liabilities
Accounts Payable	$	13,231		$	18,107
Accrued Liabilities		43,413			36,699
Other Current Liabilities		11,494			11,362
Total Current Liabilities	$	68,138		$	66,168

Long-Term Debt	$	127,000		$	120,000
Asset Retirement Obligation		129,700			127,556
Other Long-Term Liabilities		13,326			10,822
Total Liabilities	$	338,164		$	324,546

Shareholders’ Equity
Common Stock & APIC	$	440,380		$	438,709
Accumulated Earnings (Deficit)		(31,468	)		(24,039	)
Total Shareholders’ Equity	$	408,912		$	414,670

Selected Financial Data – Unaudited
Statements of Cash Flows Data

	Three Months			Three Months
	Ended			Ended
(Amounts in $000s)	December 31, 2024			September 30, 2024


Net cash provided by (used in) operating activities	$	12,455		$	15,737
Net cash provided by (used in) investing activities		(19,379	)		(18,078	)
Net cash provided by (used in) financing activities		6,924			1,839

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Adjusted EBITDA and Free Cash Flow

	Three Months			Three Months
	Ended			Ended
(Amounts in $000s)	December 31, 2024			September 30, 2024

Reconciliation of Adjusted EBITDA to Net Cash Provided from Operating Activities:
Net cash provided by operating activities	$	12,455		$	15,737
Changes in working capital		4,770			5,937
Interest expense, net		3,684			3,756
Cash settlements received on terminated commodity derivatives		–			(793	)
Amortization of gain associated with terminated commodity derivatives		159			–
Amortization and write-off of deferred financing fees		(315	)		(310	)
Exploration costs		10			–
Acquisition and divestiture related costs		1,424			186
Plugging and abandonment cost		754			372
Current income tax expense (benefit)		(2,132	)		412
Pipeline incident loss		2,405			247
(Gain) loss on sale of properties		(1,367	)		–
Adjusted EBITDA:	$	21,847		$	25,544

Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:
Adjusted EBITDA:	$	21,847		$	25,544
Less: Cash interest expense		3,598			3,721
Less: Capital expenditures		15,324			18,224
Free Cash Flow:	$	2,925		$	3,599

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Adjusted EBITDA and Free Cash Flow


	Twelve Months			Twelve Months
	Ended			Ended
(Amounts in $000s, except per share data)	December 31, 2024			December 31, 2023

Reconciliation of Adjusted EBITDA¹to Net Cash Provided from Operating Activities:
Net cash provided by operating activities	$	51,293		$	141,590
Changes in working capital		32,272			(8,517	)
Interest expense, net		14,599			17,719
Cash settlements received on terminated commodity derivatives		(793	)		(658	)
Amortization of gain associated with terminated commodity derivatives		159			658
Amortization and write-off of deferred financing fees		(1,233	)		(1,980	)
Exploration costs		61			57
Acquisition and divestiture related costs		1,633			219
Plugging and abandonment cost		1,640			2,239
Current income tax expense (benefit)		232			4,817
Pipeline incident loss		3,859			19,981
(Gain) loss on sale of properties		(1,367	)		–
LOPI – timing differences		–			(4,636	)
Litigation settlement		–			(84,875	)
Other		686			1,418
Adjusted EBITDA:	$	103,041		$	88,032

Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:
Adjusted EBITDA¹:	$	103,041		$	88,032
Less: Cash interest expense		14,438			16,263
Less: Capital expenditures		70,644			33,744
Free Cash Flow:	$	17,959		$	38,025

	(1)	Adjusted EBITDA includes a revenue suspense release of $8.4 million for the twelve months ended December 31, 2024. See “Revenue Payables in Suspense” table for additional information.

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Adjusted EBITDA¹ and Free Cash Flow

	Three Months			Three Months
	Ended			Ended
(Amounts in $000s)	December 31, 2024			September 30, 2024

Reconciliation of Adjusted EBITDA to Net Income (Loss):
Net income (loss)	$	(7,429	)	$	22,652
Interest expense, net		3,684			3,756
Income tax expense (benefit) – current		(2,132	)		412
Income tax expense (benefit) – deferred		(886	)		5,650
Depreciation, depletion and amortization		8,418			8,102
Accretion of asset retirement obligations		2,156			2,125
(Gains) losses on commodity derivatives		9,305			(25,047	)
Cash settlements received (paid) on expired commodity derivative instruments		4,052			5,582
Amortization of gain associated with terminated commodity derivatives		159			–
Acquisition and divestiture related costs		1,424			186
Share-based compensation expense		1,686			1,815
(Gain) loss on sale of properties		(1,367	)		–
Exploration costs		10			–
Loss on settlement of AROs		334			38
Bad debt expense		28			26
Pipeline incident loss		2,405			247
Adjusted EBITDA¹:	$	21,847		$	25,544

Reconciliation of Free Cash Flow to Net Income (Loss):
Adjusted EBITDA:	$	21,847		$	25,544
Less: Cash interest expense		3,598			3,721
Less: Capital expenditures		15,324			18,224
Free Cash Flow:	$	2,925		$	3,599

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Adjusted EBITDA and Free Cash Flow


	Twelve Months			Twelve Months
	Ended			Ended
(Amounts in $000s, except per share data)	December 31, 2024			December 31, 2023


Reconciliation of Adjusted EBITDA¹to Net Income (Loss):
Net income (loss)	$	12,946		$	392,750
Interest expense, net		14,599			17,719
Income tax expense (benefit) – current		232			4,817
Income tax expense (benefit) – deferred		2,196			(253,796	)
Depreciation, depletion and amortization		32,586			28,004
Accretion of asset retirement obligations		8,438			7,951
(Gains) losses on commodity derivatives		2,047			(40,343	)
Cash settlements received (paid) on expired commodity derivative instruments		17,617			(8,273	)
Amortization of gain associated with terminated commodity derivatives		159			658
Acquisition and divestiture related costs		1,633			219
Share-based compensation expense		6,799			5,280
(Gain) loss on sale of properties		(1,367	)		–
Exploration costs		61			57
Loss on settlement of AROs		470			1,003
Bad debt expense		80			98
Pipeline incident loss		3,859			19,981
LOPI – timing differences		–			(4,636	)
Litigation settlement		–			(84,875	)
Other		686			1,418
Adjusted EBITDA:	$	103,041		$	88,032

Reconciliation of Free Cash Flow to Net Income (Loss):
Adjusted EBITDA¹:	$	103,041		$	88,032
Less: Cash interest expense		14,438			16,263
Less: Capital expenditures		70,644			33,744
Free Cash Flow:	$	17,959		$	38,025

	(1)	Adjusted EBITDA includes a revenue suspense release of $8.4 million for the twelve months ended December 31, 2024. See “Revenue Payables in Suspense” table for additional information.

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Net Income (Loss) to Adjusted Net Income (Loss)

	Three Months			Three Months
	Ended			Ended
(Amounts in $000s, except per share data)	December 31, 2024			September 30, 2024

Reconciliation of Adjusted Net Income (Loss):
Net income (loss)	$	(7,429	)	$	22,652
Unrealized (gain) loss on commodity derivatives		13,357			(18,672	)
Acquisition and divestiture related costs		1,424			186
Non-recurring costs:
Income tax expense (benefit) – deferred		(886	)		5,650
Gain on sale of properties		(1,367	)		–
Litigation settlement		–			–
Tax effect of adjustments		(12	)		(39	)
Adjusted net income (loss)	$	5,087		$	9,777

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Net Income (Loss) to Adjusted Net Income (Loss)

	Twelve Months			Twelve Months
	Ended			Ended
(Amounts in $000s, except per share data)	December 31, 2024			December 31, 2023

Reconciliation of Adjusted Net Income (Loss):
Net income (loss)	$	12,946		$	392,750
Unrealized (gain) loss on commodity derivatives		20,457			(47,958	)
Acquisition and divestiture related costs		1,633			219
Non-recurring costs:
Income tax expense (benefit) – deferred¹		2,196			(253,796	)
Gain on sale of properties		(1,367	)		–
Litigation settlement²		–			(84,875	)
Tax effect of adjustments³		(56	)		17,778
Adjusted net income (loss)	$	35,809		$	24,118

	(1)	In 2023, we achieved three years of cumulative book income which resulted in the release of our valuation allowance of $284.9 million.
	(2)	In 2023, non-recurring costs included a litigation settlement with the shipping companies and the containerships whose anchors struck the Company’s pipeline.
	(3)	The federal statutory rates were utilized for all periods presented.

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Cash General and Administrative Expenses

	Three Months		Three Months
	Ended		Ended
(Amounts in $000s)	December 31, 2024		September 30, 2024

General and administrative expense	$	9,486	$	8,251
Less: Share-based compensation expense		1,686		1,815
Less: Acquisition and divestiture costs		1,424		186
Less: Bad debt expense		28		26
Less: Severance payments		—		—
Total Cash General and Administrative Expense	$	6,348	$	6,224

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Cash General and Administrative Expenses

	Twelve Months		Twelve Months
	Ended		Ended
(Amounts in $000s)	December 31, 2024		December 31, 2023

General and administrative expense	$	35,895	$	32,984
Less: Share-based compensation expense		6,799		5,280
Less: Acquisition and divestiture costs		1,633		219
Less: Bad debt expense		80		98
Less: Severance payments		344		965
Total Cash General and Administrative Expense	$	27,039	$	26,422

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Revenue Payables in Suspense

	Three Months		Twelve Months
	Ended		Ended
(Amounts in $000s)	December 31, 2024		December 31, 2024


Oil and natural gas sales	$	–	$	4,023
Other revenues		–		4,829
Severance tax and other deducts		–		(433	)
Total net revenue	$	–	$	8,419

Production volumes:
Oil (MBbls)		–		33
NGLs (MBbls)		–		31
Natural gas (MMcf)		–		441
Total (Mboe)		–		138
Total (Mboe/d)		–		0.38

	As of	As of
	December 31,	December 31,
	2024	2023
Standardized measure of future net cash flows, discounted at 10% ($ M)	$608,239	$626,131
Add: PV of future income tax, discounted at 10% ($ M)	$127,526	$130,882
PV-10 ($ M)	$735,765	$757,013