Category: Pandemic

MIL-OSI United Kingdom: Get your nominations in to vote for the 2025 Community Awards | Westminster City Council

Source: City of Westminster

Help us recognise local heroes by nominating them for Westminster Council’s Community Awards 2025! Whether it’s an individual or organisation, make sure they get the recognition they deserve by nominating them as part of this year’s 2025 Community Awards.

Being held for the first time since the pandemic, the awards are a chance to celebrate and highlight those in our communities who make a real difference. The Community Awards are part of Westminster’s commitment to fostering a Fairer Westminster by recognising the diversity, resilience, and contributions that make our city a better place for all.

Those shortlisted will be invited to the awards ceremony taking place on 7 April.

Cabinet Member for Communities, Councillor Cara Sanquest said:

“I am proud to launch The Community Awards, an opportunity for us to celebrate the incredible contributions of individuals and organisations across Westminster. From working on local climate action, and health and wellbeing projects, to working with children and young people, older people, and with those with disabilities – our communities do incredible work to bring people together, and it’s really important to recognise the valuable work they do.

This is our chance to say thank you to those unsung heroes and to celebrate their amazing work, so please start nominating!”

To make a nomination, please visit: Community Awards 2025 | Westminster City Council

Nominations close at 23:59pm on Sunday 9 March 2025.

The full list of categories are as follows:

Award Categories for Individuals

· Outstanding work with Children and Young People

· Contribution to Health, Wellbeing and Health Equity

· Contribution to Older People

· Contribution to People with Disabilities

· Contribution to Arts and Culture

· Contribution to Environment/Green Hero

· Building Social Cohesion Award

· Young Volunteer of the Year

· Active Citizen of the Year

Award Categories for Organisations

· Volunteering Project of the Year

· Neighbourhood Centre of the Year

· CSR Impact Award

MIL OSI United Kingdom –

February 14, 2025
MIL-OSI Security: Boston Woman Sentenced for Fraudulently Obtaining COVID-Relief Funds

Source: Office of United States Attorneys

BOSTON – A Boston woman was sentenced in federal court in Boston for a scheme to fraudulently obtain pandemic-related relief funds from the Paycheck Protection Program (PPP).

Jameela Gross, 28, was sentenced by U.S. District Court Judge William G. Young to time served (one day) to be followed by three years of supervised release. Gross has also been ordered to pay $18,750 in restitution. In September 2024, Gross pleaded guilty to one count of wire fraud. Gross was arrested in February 2024 along with over 40 Heath Street Gang members/associates, who were charged with racketeering conspiracy, drug trafficking, firearms charges and financial frauds, including COVID-related fraud.

Among other relief programs, the Coronavirus Aid, Relief, and Economic Security Act created the PPP, a temporary loan program directed at small businesses. PPP loans were processed and funded by participating lenders and guaranteed by the U.S. Small Business Administration. If the small business used the loan funds for permissible expenses, the loan could be forgiven.

In April 2021, Gross submitted a fraudulent PPP loan application on behalf of her purported photography business. The application contained multiple false statements, including false representations regarding the fictitious business’s income in 2020 and the purpose of the loan. Gross also submitted false tax records in support of her loan application. Based on the fraudulent application, Gross received approximately $18,750.

United States Attorney Leah B. Foley; Boston Police Commissioner Michael Cox; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; and Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigations made the announcement today. Assistant U.S. Attorneys Sarah Hoefle and Lucy Sun of the Criminal Division prosecuted 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.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

MIL Security OSI –

February 14, 2025
MIL-OSI: Wrap Unveils Managed Safety and Response (MSR) Connected Ecosystem in Virginia
Source: GlobeNewswire (MIL-OSI)

Following Governor Youngkin’s November announcement, Early Adopter Program Launches in Virginia, Highly Anticipated Defense Tech Drones, Body Cameras, AI Integration and International Expansion to Follow

This news follows: Wrap Technologies Launches Go-Forward Strategy, Advancing End-to-End Public Safety and Defense Solutions with New Virginia Facility

NORTON, Va., Feb. 13, 2025 (GLOBE NEWSWIRE) — Wrap Technologies (NASDAQ: WRAP) (“Wrap” or, the “Company”) today announced the launch of its highly anticipated Managed Safety and Response (MSR) Connected Ecosystem in Virginia, with the aim of delivering a modern approach for law enforcement training, defensive tactics and real-time safety solutions. With past vocal support of Governor Glenn Youngkin and Virginia’s public safety institutions, Wrap hopes to establish the Commonwealth as a leader in next-generation policing solutions.

As early adopters, Virginia agencies will be the first to benefit from Wrap’s integrated approach, which combines enhanced training, automated support systems and a scalable ecosystem designed to seamlessly integrate follow-on technologies.

The Company is evolving to meet agency demand for integrated service delivery of disparate support technologies and embedded recurring training. This approach will see Wrap invest in a core group of world-class professional services leaders and then digitize value delivery through AI-powered workflows, ensuring exemplary customer satisfaction in its MSR service.

This announcement highlights Wrap’s strategic vision for the future of public safety, including:
- A TAA-compliant, NON-Chinese supply chain for body cameras, aiming to ensure secure and reliable technology for law enforcement agencies advancing a first-in-class Made in America supply chain.
- Newly Developed AI-powered reporting, leveraging body-worn camera audio to instantly generate high-quality, detailed incident reports—with the goal of reducing administrative workload and increasing accuracy.
- The upcoming launch of a Drone as First Responder (DFR) program, featuring advanced payloads that enhance situational awareness, rapid response, and officer safety.
- Advanced Defensive Tactics & Training – structured follow-on actions after BolaWrap deployment, aiming to ensure proper de-escalation techniques.
- Connected Training, including in-person officer instruction and an exclusive video training library designed to coach officers in BolaWrap de-escalation approaches that align with today’s modern safety standards.
- Comprehensive VR Training Expansion – all of our de-escalation scenarios are now included in Wrap’s immersive VR training system with opportunities for custom environment development.
Scot Cohen, Chief Executive Officer, stated: “We’ve listened to our customers. We heard their concerns and understood the challenges of adopting technologies due to complexity and lack of resources. Wrap is addressing this pain point by aiming to deliver a trusted, fully managed service that consolidates fragmented technologies into a cohesive solution. We believe our first-in-class MSR Connected Ecosystem simplifies adoption, reduces operational burden, and exceeds current market offerings thereby ensuring agencies have the tools, training, and support needed to enhance officer safety and effectiveness.”

Wrap is deeply committed to supporting law enforcement by delivering innovative, practical, and effective solutions that focus on officer safety, improving public trust, and streamlining operations. Wrap recognizes the challenges agencies face in adopting new technologies, integrating disparate tools, and ensuring officers receive the training and resources needed to operate effectively in the field.

Wrap’s MSR Connected Ecosystem is designed to bridge these gaps, which we believe provides a seamless, scalable, and intelligent platform that empowers officers to make better decisions, reduce risk, and enhance de-escalation efforts. By prioritizing trust, reliability, and continuous support, Wrap is dedicated to delivering cutting-edge solutions that truly serve those who protect and serve.

Governor Youngkin’s support to relocate Wrap’s facility to Southwest Virginia indicates alignment for this expansion to leverage innovative technologies that enhance public safety. By integrating advanced solutions like the MSR Connected Ecosystem, the Commonwealth aims to set a new standard in law enforcement practices, ensuring safer communities for all Virginians.

The MSR Connected Ecosystem is designed to reduce cognitive load and simplify decision-making in critical moments, transforming the way officers operate in the field. Wrap is advancing law enforcement capabilities by delivering fully managed safety services alongside essential response tools like BolaWrap, ensuring officers have the support they need when it matters most.

To learn more about Wrap Technologies and the Managed Safety and Response Connected Ecosystem, visit www.Wrap.com.

About Wrap Technologies, Inc.

Wrap Technologies, Inc. (Nasdaq: WRAP) is a leading global provider of advanced public safety solutions, integrating ultramodern technology, cutting-edge tools, and comprehensive services to address the complex, modern day challenges facing public safety organizations around the world. Guided by a no-harm principle, Wrap is dedicated to developing groundbreaking solutions that empower public safety agencies to safeguard the communities they serve in a manner that fosters stronger relationships, driving safer outcomes, empowering public safety and communities to move forward together.

Wrap’s BolaWrap^® solution encompasses an innovative and patented hand-held remote restraint device, strategically engineered with Wrap’s no-harm guiding principle to proactively deter escalation by deploying a Kevlar^® tether that safely restrains individuals from a distance. Combined with BolaWrap^® training, certified by the esteemed International Association of Directors of Law Enforcement Standards and Training (IADLEST), Wrap enables officers from over 1000 agencies across the U.S. and 60 countries around the world, with the expertise to effectively use BolaWrap^® as an early intervention measure, mitigating potential risks and injuries, averting tragic outcomes, with the goal to save lives with each wrap.

Wrap Reality™, the Company’s advanced virtual reality training system, is a fully immersive training simulator and comprehensive public safety training platform that equips first responders with the discipline and practice to prevent escalation, de-escalate conflicts, and apply appropriate tactical use-of-force measures to better perform in the field. By offering a growing range of real-life scenarios, Wrap Reality™ addresses the dynamic nature of modern law enforcement situations for positive public safety outcomes, building safer communities one decision at a time.

Wrap’s Intrensic solution is a comprehensive, secure and efficient body worn camera and evidence collection and management solution designed with innovative technology to quickly capture, safely handle, securely store, and seamlessly track evidence, all while maintaining full transparency throughout the process. With meticulous consolidation and professional management of evidence, confidence in law enforcement and the justice system soars, fostering trust and reliability in court outcomes. Intrensic’s efficient system streamlines the entire process seamlessly, empowering all public safety providers to focus on what matters, expediting justice with integrity.

Connect with Wrap:
Wrap on Facebook
Wrap on Twitter
Wrap on LinkedIn

Trademark Information

Wrap, the Wrap logo, BolaWrap^®, Wrap Reality™ and Wrap Training Academy are trademarks of Wrap Technologies, Inc., some of which are registered in the U.S. and abroad.  All other trade names used herein are either trademarks or registered trademarks of the respective holders.

Cautionary Note on Forward-Looking Statements – Safe Harbor Statement
This release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “anticipate,” “should”, “believe”, “target”, “project”, “goals”, “estimate”, “potential”, “predict”, “may”, “will”, “could”, “intend”, and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Moreover, forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control. The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company’s ability to maintain compliance with the Nasdaq Capital Market’s listing standards; the Company’s ability to successfully implement training programs for the use of its products; the Company’s ability to manufacture and produce products for its customers; the Company’s ability to develop sales for its products; the market acceptance of existing and future products; the availability of funding to continue to finance operations; the complexity, expense and time associated with sales to law enforcement and government entities; the lengthy evaluation and sales cycle for the Company’s product solutions; product defects; litigation risks from alleged product-related injuries; risks of government regulations; the business impact of health crises or outbreaks of disease, such as epidemics or pandemics; the impact resulting from geopolitical conflicts and any resulting sanctions; the ability to obtain export licenses for counties outside of the United States; the ability to obtain patents and defend intellectual property against competitors; the impact of competitive products and solutions; and the Company’s ability to maintain and enhance its brand, as well as other risk factors mentioned in the Company’s most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and other Securities and Exchange Commission filings. These forward-looking statements are made as of the date of this release and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

Investor Relations Contact:

(800) 583-2652
ir@wrap.com

The MIL Network –
February 14, 2025
MIL-OSI USA: 2025-23 DEPARTMENT OF THE ATTORNEY GENERAL HOSTS FIRST EVER ONLINE ASSET FORFEITURE AUCTION

Source: US State of Hawaii

2025-23 DEPARTMENT OF THE ATTORNEY GENERAL HOSTS FIRST EVER ONLINE ASSET FORFEITURE AUCTION

Posted on Feb 12, 2025 in Latest Department News, Newsroom

STATE OF HAWAIʻI

KA MOKU ʻĀINA O HAWAIʻI

DEPARTMENT OF THE ATTORNEY GENERAL

KA ʻOIHANA O KA LOIO KUHINA

JOSH GREEN, M.D.
GOVERNOR

KE KIAʻĀINA

ANNE LOPEZ

ATTORNEY GENERAL

LOIO KUHINA

DEPARTMENT OF THE ATTORNEY GENERAL HOSTS FIRST EVER ONLINE ASSET FORFEITURE AUCTION

News Release 2025-23

FOR IMMEDIATE RELEASE

February 12, 2025

HONOLULU –The Department of the Attorney General, Civil Recoveries Division’s Asset Forfeiture Program is conducting a live, online auction beginning February 18. It is the first time Hawaiʻi is staging an online auction for this program.

“Prior to the COVID pandemic, we previously held live auctions quarterly at the Blaisdell Center,” said Asset Forfeiture Program Manager Kern Nishioka. “While online auctions are not a new idea, the launch of our auction website is a first for our office.”

The initial selection is primarily cars and trucks. Other items for sale include a commercial fishing boat and trailer, and Morgan silver dollar coins. The department’s Auction Items Preview page has a list of the cars, trucks and SUVs that will be featured in the upcoming live online auction.

The first items will go live on the department’s online auction page starting at 3 p.m. on February 18. Listings will be added as they become available. Auction closure dates will vary between items.

To participate in the online auction, a free eHawaii.gov account is required. Participants must be 18 and over. To register, and for more information on the requirements/restrictions and how to place bids, go to the department’s online auction page as well as the Department of the Attorney General’s Asset Forfeiture Program page.

The proceeds generated from auctions are used to fund law enforcement activities such as training and equipment, as well as to support program expenses.

# # #

Access to the Auction Car Dropbox video album is here – Auction Cars Video

Media contacts:

Dave Day

Special Assistant to the Attorney General

Office: 808-586-1284

Email: [email protected]

Web: http://ag.hawaii.gov

Toni Schwartz

Public Information Officer

Hawai‘i Department of the Attorney General

Office: 808-586-1252

Cell: 808-379-9249

Email: [email protected]

Web: http://ag.hawaii.gov

MIL OSI USA News –

February 14, 2025

MIL-OSI: Brookfield Wealth Solutions Announces Year End 2024 Results and Declares Quarterly Distribution Increase

Source: GlobeNewswire (MIL-OSI)

BROOKFIELD, NEWS, Feb. 13, 2025 (GLOBE NEWSWIRE) — Brookfield Wealth Solutions (NYSE, TSX: BNT) today announced financial results for the three months and year ended December 31, 2024.

Sachin Shah, CEO of Brookfield Wealth Solutions, stated, “Our strong results for 2024 underscore our growth over the past year having doubled the size of the business in that time. Our scalable North American annuity platform, coupled with our leading investment capabilities, will serve as the foundation for our business as we expand internationally in 2025.”

Unaudited As of and for the periods ended December 31 (US$ millions, except per share amounts)	Three Months Ended				Year Ended
		*2024*		2023		*2024*		2023
Total assets	$	140,460	$	61,643	$	140,460	$	61,643
Adjusted equity¹		12,872		8,969		12,872		8,969
Distributable operating earnings¹		427		258		1,374		745
Net income		576		453		1,247		797
Net income per each class A share	$	0.08	$	0.07	$	0.32	$	0.28

^{1. See Non-GAAP and Performance Measures on page 6 and a reconciliation from net income and reconciliation from equity on page 5.}

2024 Highlights

Completed the acquisition of American Equity Investment Life Holding Company (“AEL”), doubling the size of our business
Deployed more than $17 billion across our investment portfolio at strong risk-adjusted returns
Generated $19 billion in annuity and pension risk transfer (“PRT”) sales across the business, consisting of approximately $14 billion of retail annuity sales, inclusive of a full twelve months of activity at AEL, and $5 billion of PRT deals
We closed our first U.K. reinsurance transaction, reinsuring £1.0 billion ($1.3 billion) of pension liabilities

Operating Update
We recognized $427 million and $1.4 billion of distributable operating earnings (“DOE”) for the three months and year ended December 31, 2024, respectively, compared to $258 million and $745 million in the prior year periods. The increase in earnings for the current period reflects contributions from our acquisition of AEL as well as higher net investment income resulting from progress made in repositioning assets into higher yielding investment strategies. DOE further benefitted from strong annuity sales during the year.

We recorded net income of $576 million and $1.2 billion for the three months and year ended December 31, 2024, respectively, compared to net income of $453 million and $797 million in the prior year periods. Net income in the current period is the result of strong operating performance and contributions from our DOE, as well as favorable movement on reserves due to interest rate and equity market movements.

Today, we are in a strong liquidity position, with approximately $31 billion of cash and short-term liquid investments across our investment portfolios, and another $21 billion of long-term liquid investments. These liquid assets will support the ongoing rotation of our portfolio into higher yielding investment strategies, while ensuring we have sufficient liquidity coverage for our liabilities in the case of any stress events impacting the broader market.

Regular Distribution Declaration
The Board declared a 13% increase in the Company’s quarterly return of capital to $0.09 per class A share and class B share (representing $0.36 per annum), payable on March 31, 2025 to shareholders of record as at the close of business on March 14, 2025. This distribution is identical in amount per share and has the same payment date as the quarterly distribution announced today by Brookfield Corporation on the Brookfield class A shares.

Brookfield Corporation Operating Results
An investment in class A shares of our company is intended to be, as nearly as practicable, functionally and economically, equivalent to an investment in the Brookfield class A shares. A summary of Brookfield Corporation’s fourth quarter and full year operating results is provided below:

Unaudited
For the periods ended December 31
(US$ millions, except per share amounts)

Three Months Ended

Years Ended

2024

2023

2024

2023

Net income of consolidated business¹

101

3,134

1,853

5,105

Net income attributable to Brookfield shareholders²

432

699

641

1,130

Distributable earnings before realizations^2,3

1,498

1,209

4,871

4,223

– Per Brookfield class A share^2,3

0.94

0.76

3.07

2.66

Distributable earnings^2,3

1,606

1,312

6,274

4,806

– Per Brookfield class A share^2,3

1.01

0.83

3.96

3.03

^{1. Consolidated basis – includes amounts attributable to non-controlling interests.}
^{2. Excludes amounts attributable to non-controlling interests.}
^{3. See Reconciliation of Net Income to Distributable Earnings on page 5 and Non-IFRS and Performance Measures section on page 8 of Brookfield Corporation’s press release dated February 13, 2025.}

Brookfield Corporation net income above is presented under IFRS. Given the economic equivalence, we expect that the market price of the class A shares of our company will be impacted significantly by the market price of the Brookfield class A shares and the business performance of Brookfield as a whole. In addition to carefully considering the disclosure made in this news release in its entirety, shareholders are strongly encouraged to carefully review Brookfield Corporation’s letter to shareholders, supplemental information and its other continuous disclosure filings. Investors, analysts and other interested parties can access Brookfield Corporation’s disclosure on its website under the Reports & Filings section at bn.brookfield.com.

CONSOLIDATED BALANCE SHEETS

Unaudited

December 31

December 31

(US$ millions)

2024

2023

Assets

Insurance invested assets

Cash and cash equivalents

12,243

4,308

Investments

92,966

39,838

Reinsurance funds withheld

1,517

7,248

Accrued investment income

860

107,586

280

51,674

Reinsurance recoverables and deposit assets

13,195

3,388

120,781

55,062

Deferred policy acquisition costs

10,696

2,468

Other assets

8,983

4,113

Total assets

140,460

61,643

Liabilities and equity

Policy and contract claims

7,659

7,288

Future policy benefits

14,088

9,813

Policyholders’ account balances

83,079

24,939

Deposit liabilities

1,502

1,577

Market risk benefits

3,655

Unearned premium reserve

1,843

2,056

111,826

45,762

Corporate borrowings

1,022

1,706

Subsidiary borrowings

3,329

1,863

Funds withheld for reinsurance liabilities

3,392

Other liabilities

7,815

3,380

Junior preferred shares

—

2,694

Non-controlling interest

850

146

Class A and class B

1,470

1,591

Class C

10,756

13,076

4,418

6,155

Total liabilities and equity

140,460

61,643

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited For the periods ended December 31 US$ millions	Three Months Ended						Year Ended
		2024			2023			2024			2023
Net premiums and other policy revenue	$	4,307		$	1,432		$	9,048		$	4,550
Net investment income, including funds withheld		1,325			621			4,440			2,121
Net investment gains (losses), including funds withheld		115			176			615			241
Total revenues		5,747			2,229			14,103			6,912

Benefits and claims paid on insurance contracts		(4,003	)		(1,194	)		(8,162	)		(3,939	)
Interest sensitive contract benefits		(710	)		(355	)		(1,874	)		(687	)
Amortization of deferred policy acquisition costs		(370	)		(180	)		(1,237	)		(632	)
Changes in fair value of insurance-related derivatives and embedded derivatives		396			210			234			41
Changes in fair value of market risk benefits		299			85			(107	)		166
Other reinsurance expenses		(6	)		(5	)		(26	)		(21	)
Operating expenses		(332	)		(244	)		(1,356	)		(777	)
Interest expense		(96	)		(68	)		(362	)		(249	)
Total benefits and expenses		(4,822	)		(1,751	)		(12,890	)		(6,098	)
Net income before income taxes		925			478			1,213			814
Income tax recovery (expense)		(349	)		(25	)		34			(17	)
Net income for the period	$	576		$	453		$	1,247		$	797

Attributable to:
Class A and class B shareholders¹	$	4		$	2		$	14		$	5
Class C shareholder		559			453			1,200			791
Non-controlling interest		13			(2	)		33			1
	$	576		$	453		$	1,247		$	797

^{1. Class A shares receive distributions at the same amount per share as the cash dividends paid on each Brookfield class A share.}

SUMMARIZED FINANCIAL RESULTS

RECONCILIATION OF NET INCOME TO DISTRIBUTABLE OPERATING EARNINGS

Unaudited For the periods ended December 31 US$ millions	Three Months Ended						Year Ended
		2024			2023			2024			2023
Net income	$	576		$	453		$	1,247		$	797
Unrealized net investment gains, including funds withheld		(115	)		(176	)		(615	)		(241	)
Mark-to-market on insurance contracts and other net assets		(367	)		(104	)		589			105
		94			173			1,221			661
Deferred income tax expense (recovery)		260			47			(195	)		14
Transaction costs		32			24			213			40
Depreciation		41			14			135			30
Distributable operating earnings¹	$	427		$	258		$	1,374		$	745

RECONCILIATION OF EQUITY TO ADJUSTED EQUITY

Unaudited As of December 31 US$ millions		2024			2023
Equity	$	13,076		$	6,155
Add:
Accumulated other comprehensive (income) loss		(204	)		120
Junior preferred shares		—			2,694
Adjusted equity¹	$	12,872		$	8,969

^{1. Non-GAAP measure – see Non-GAAP and Performance Measures on page 6.}

Additional Information

The statements contained herein are based primarily on information that has been extracted from our financial statements for the quarter and year ended December 31, 2024, which have been prepared using generally accepted accounting principles in the United States of America (“US GAAP” or “GAAP”).

Brookfield Wealth Solutions’ Board of Directors have reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.

Information on our distributions can be found on our website under Stock & Distributions/Distribution History.

Brookfield Wealth Solutions Ltd. (NYSE, TSX: BNT) is focused on securing the financial futures of individuals and institutions through a range of wealth protection and retirement services, and tailored capital solutions. Each class A exchangeable limited voting share of Brookfield Wealth Solutions is exchangeable on a one-for-one basis with a class A limited voting share of Brookfield Corporation (NYSE, TSX: BN). For more information, please visit our website at bnt.brookfield.com or contact:

Communications & Media:
Kerrie McHugh
Tel: (212) 618-3469
Email: kerrie.mchugh@brookfield.com

Investor Relations:
Rachel Schneider
Tel: (416) 369-3358
Email: rachel.schneider@brookfield.com

Non-GAAP and Performance Measures

This news release and accompanying financial statements are based on US GAAP, unless otherwise noted.

We make reference to Distributable operating earnings. We define distributable operating earnings as net income after applicable taxes excluding the impact of depreciation and amortization, deferred income taxes related to basis and other changes, and breakage and transaction costs, as well as certain investment and insurance reserve gains and losses, including gains and losses related to asset and liability matching strategies, non-operating adjustments related to changes in cash flow assumptions for future policy benefits, and change in market risk benefits, and is inclusive of returns on equity invested in certain variable interest entities and our share of adjusted earnings from our investments in certain associates. Distributable operating earnings is a measure of operating performance. We use distributable operating earnings to assess our operating results. We also make reference to Adjusted equity. Adjusted equity represents the total economic equity of our Company through our class A, B and C shares, excluding Accumulated other comprehensive income, and the junior preferred shares issued by our Company. We use adjusted equity to assess our return on our equity.

We provide additional information on key terms and non-GAAP measures in our filings available at bnt.brookfield.com.

Notice to Readers

Brookfield Wealth Solutions Ltd. (“Brookfield Wealth Solutions” or “our” or “we”) is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement.

This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws, “forward-looking statements” within the meaning of Canadian provincial securities laws, “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, and “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, assumptions and expectations regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Wealth Solutions, Brookfield Corporation and their respective subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. Particularly, statements regarding international expansion plans and future capital markets initiatives, including statements relating to the redeployment of capital into higher yielding investments constitute forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “foresees,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” In particular, the forward-looking statements contained in this news release include statements referring to the growth of our business, international expansion, investment opportunities and expected future deployment of capital and financial earnings. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable estimates, assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Wealth Solutions or Brookfield Corporation to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) investment returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including acquisitions and dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations and sanctions; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, including but not limited to, earthquakes, hurricanes, epidemics and pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments; and (xxv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the foregoing risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. Except as required by law, Brookfield Wealth Solutions undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to the historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved (because of economic conditions, the availability of investment opportunities or otherwise).

Certain of the information contained herein is based on or derived from information provided by independent third-party sources. While Brookfield Wealth Solutions believes that such information is accurate as of the date it was produced and that the sources from which such information has been obtained are reliable, Brookfield Wealth Solutions does not make any assurance, representation or warranty, express or implied, with respect to the accuracy, reasonableness or completeness of any of the information or the assumptions on which such information is based, contained herein, including but not limited to, information obtained from third parties, and undue reliance should not be put on them.

The MIL Network –

February 14, 2025

MIL-OSI: CareCloud Transfers Funds for Preferred Stock Dividends
Source: GlobeNewswire (MIL-OSI)

SOMERSET, N.J., Feb. 13, 2025 (GLOBE NEWSWIRE) — CareCloud, Inc. (Nasdaq: CCLD, CCLDO, CCLDP), a leader in healthcare technology and generative AI solutions, today announced that it has transferred the funds for the January 2025 dividend payments on its Series A and Series B Cumulative Redeemable Perpetual Preferred Stock.

As previously disclosed, holders of Series A Preferred Stock will receive 22.917 cents per share, while holders of Series B Preferred Stock will receive 18.229 cents per share based on a record date of January 31, 2025. These payments are expected to be reflected in shareholders’ brokerage accounts between February 18 and February 20, 2025.

“We appreciate the continued support of our shareholders and remain focused on maintaining financial stability,” said Norman Roth, Interim Chief Financial Officer of CareCloud. “The timely payment of these dividends reflects our commitment to responsible fiscal management and ongoing progress in strengthening our financial position.”

Dividend details:
- Expected reflection in accounts: February 18 – February 20, 2025
- Record date: January 31, 2025
- Series A Dividend: 22.917 cents per share
- Series B Dividend: 18.229 cents per share
Dividends for both Series A and Series B Preferred Stock are cumulative and payable monthly, in arrears, on the 15^th of each month or the next business day if the 15^th of the month is a bank holiday or weekend. In February, President’s Day is observed on Monday the 17^th, therefore the first business day after February 15^th is February 18^th.

Shareholders who do not see their dividend payment in their brokerage account by the end of next week are encouraged to contact their broker for assistance. For further inquiries, the CareCloud Investor Relations team can be reached at ir@carecloud.com.

About CareCloud

CareCloud brings disciplined innovation to the business of healthcare. Our suite of AI and technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care, while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health at www.carecloud.com.

Follow CareCloud on LinkedIn, X and Facebook.

Forward-Looking Statements

This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “forecasts,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology.

Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities, and the expected results from the integration of our acquisitions.

These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.

The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

SOURCE CareCloud

Company Contact:
Norman Roth
Interim Chief Financial Officer and Corporate Controller
CareCloud, Inc.
nroth@carecloud.com

Investor Contact:
Stephen Snyder
Co-Chief Executive Officer
CareCloud, Inc.
ir@carecloud.com

The MIL Network –
February 14, 2025

MIL-OSI: Brookfield Corporation Reports Record 2024 Results

Source: GlobeNewswire (MIL-OSI)

Distributable Earnings Before Realizations Increased 15% to a Record $4.9 billion or $3.07 Per Share

Quarterly Dividend Raised by 13%

BROOKFIELD, NEWS, Feb. 13, 2025 (GLOBE NEWSWIRE) — Brookfield Corporation (NYSE: BN, TSX: BN) announced record financial results for the year ended December 31, 2024.

Nick Goodman, President of Brookfield Corporation, said, “We delivered record financial results in 2024, with strong contributions from each of our businesses. Our asset management business had inflows of over $135 billion, our wealth solutions business is now firmly established as a top-tier annuity writer in the U.S., and our operating businesses continue to generate high-quality and stable cash flows.”

He continued, “We expect the positive momentum in each of our businesses to continue this year. Our access to scale capital remains very strong and with transaction activity expected to pick up throughout 2025, we are well positioned to continue to generate strong growth in our cash flows and intrinsic value.”

Operating Results

Distributable earnings (“DE”) before realizations increased by 24% and 15% on a per share basis compared to the prior year periods.

Unaudited For the periods ended December 31 (US$ millions, except per share amounts)	Three Months Ended				Years Ended
		*2024*		2023		*2024*		2023
Net income of consolidated business¹	$	101	$	3,134	$	1,853	$	5,105
Net income attributable to Brookfield shareholders²		432		699		641		1,130

Distributable earnings before realizations^2,3		1,498		1,209		4,871		4,223
– Per Brookfield share^2,3		0.94		0.76		3.07		2.66

Distributable earnings^2,3		1,606		1,312		6,274		4,806
– Per Brookfield share^2,3		1.01		0.83		3.96		3.03

_{See endnotes on page 8.}

Total consolidated net income was $101 million in the quarter and $1.9 billion for the year. Distributable earnings before realizations were a record $1.5 billion ($0.94/share) for the quarter and $4.9 billion ($3.07/share) for the year.

Our asset management business generated a 17% increase in fee-related earnings compared to the prior year quarter, benefiting from strong fundraising momentum and the scaling of its credit platform through strategic partnerships.

Wealth solutions earnings nearly doubled compared to the prior year, on the back of the acquisition of American Equity Life (“AEL”), organic growth and the attractive returns on our investment portfolio.

Our operating businesses continue to deliver stable and growing cash flows, underpinned by the strong earnings of our renewable power and transition, infrastructure and private equity businesses and 4% growth in same-store net operating income (“NOI”) from our core real estate portfolio.

During the quarter and for the year, earnings from realizations were $108 million and $1.4 billion, with total DE for the quarter and for the year of $1.6 billion ($1.01/share) and $6.3 billion ($3.96/share), respectively.

Regular Dividend Declaration

The Board declared a 13% increase in the quarterly dividend for Brookfield Corporation to $0.09 per share (representing $0.36 per annum), payable on March 31, 2025 to shareholders of record as at the close of business on March 14, 2025. The Board also declared the regular monthly and quarterly dividends on our preferred shares.

Operating Highlights

Distributable earnings before realizations were a record $1.5 billion ($0.94/share) for the quarter and $4.9 billion ($3.07/share) for the year, representing an increase of 24% and 15% on a per share basis over the prior year periods, respectively. Total distributable earnings were $1.6 billion ($1.01/share) for the quarter and $6.3 billion ($3.96/share) for the year.

Asset Management:

DE was $694 million ($0.44/share) in the quarter and $2.6 billion ($1.67/share) for the year.
Fee-related earnings grew by 17% compared to the prior year quarter, driven by an 18% increase in fee-bearing capital over the prior year to $539 billion as at December 31, 2024. Total inflows were over $135 billion in 2024.
Our latest round of flagship funds have raised approximately $40 billion across our second global transition fund strategy, our fifth opportunistic real estate fund strategy, and our flagship opportunistic credit fund strategy. Heading into 2025, we expect to hold final closes for our latest flagship funds and continue to actively deploy capital, which should contribute to strong earnings growth.

Wealth Solutions:

Distributable operating earnings were $421 million ($0.26/share) in the quarter and $1.4 billion ($0.85/share) for the year.
Insurance assets increased to over $120 billion, as we originated approximately $19 billion of retail and institutional annuity sales in 2024. We continue to diversify the business by growing our pension risk transfer capabilities and expanding into new markets. An example of this is the completion of our first reinsurance transaction in the U.K., at $1.3 billion which closed in the fourth quarter.
The average investment portfolio yield was 5.4%, 1.8% higher than the average cost of capital. As we continue to rotate the investment portfolio, annualized earnings for the business are well positioned to grow from approximately $1.6 billion today to $2 billion in the near term.
We are raising close to $2 billion of retail capital per month via our combined wealth solutions platforms.

Operating Businesses:

DE was $562 million ($0.35/share) in the quarter and $1.6 billion ($1.03/share) for the year.
Operating Funds from Operations in our renewable power, transition and infrastructure businesses increased by 10% over the prior year. Our private equity business continues to contribute resilient, high-quality cash flows. Our core real estate portfolio continues to grow its same-store NOI, delivering a 4% increase over the prior year quarter.
In our real estate business, we signed close to 27 million square feet of office and retail leases during the year. Rents on the newly signed leases were approximately 35% higher compared to those leases expiring in the fourth quarter. Also during the fourth quarter, our DE benefited from monetizing a land parcel within our North American residential operations.
As real estate markets continue to recover in the coming years, we expect earnings and valuations of the business to strengthen.

Earnings from the monetization of mature assets were $108 million ($0.07/share) for the quarter and $1.4 billion ($0.89/share) for the year.

During the year, we closed nearly $40 billion of asset sales at strong returns, which include a portfolio of U.S. manufactured housing assets and several renewable power and infrastructure assets globally. With the pick-up in transaction activity, we expect this momentum to accelerate into 2025.
Total accumulated unrealized carried interest was $11.5 billion at year end, representing an increase of 13% over the prior year, net of carried interest realized into income. We recognized approximately $400 million of net realized carried interest into income in 2024, and we expect to realize significant carried interest as we actively monetize assets in the coming years.

We ended the quarter with a record $160 billion of capital available to deploy into new investments.

We have record deployable capital of approximately $160 billion, which includes $68 billion of cash, financial assets and undrawn credit lines at the Corporation, our affiliates and our wealth solutions business.
Our balance sheet is robust and remains conservatively capitalized. Our corporate debt at the Corporation has a weighted-average term of 14 years and today we have no maturities through to the end of 2025.
Over the year, we returned $1.5 billion to shareholders through regular dividends and share repurchases, with total share buybacks of approximately $1 billion. In 2025 so far, we have repurchased over $200 million of shares.
We had an active year in the capital markets. We executed approximately $135 billion of financings, including issuing $700 million of 30-year subordinated notes and a $1 billion, 7-year non-recourse loan to a large institutional partner of ours, the proceeds of which will mainly be directed towards share repurchases.

CONSOLIDATED BALANCE SHEETS

Unaudited (US$ millions)			*December 31*				December 31
				*2024*				2023
Assets
Cash and cash equivalents			$	15,051			$	11,222
Other financial assets				25,887				28,324
Accounts receivable and other				40,509				31,001
Inventory				8,458				11,412
Equity accounted investments				68,310				59,124
Investment properties				103,665				124,152
Property, plant and equipment				153,019				147,617
Intangible assets				36,072				38,994
Goodwill				35,730				34,911
Deferred income tax assets				3,723				3,338
Total Assets			$	490,424			$	490,095

Liabilities and Equity
Corporate borrowings			$	14,232			$	12,160
Accounts payable and other				60,223				59,011
Non-recourse borrowings				220,560				221,550
Subsidiary equity obligations				4,759				4,145
Deferred income tax liabilities				25,267				24,987

Equity
Non-controlling interests in net assets	$	119,406			$	122,465
Preferred equity		4,103				4,103
Common equity		41,874		165,383		41,674		168,242
Total Equity				165,383				168,242
Total Liabilities and Equity			$	490,424			$	490,095

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited For the periods ended December 31 (US$ millions, except per share amounts)	Three Months Ended						Years Ended
		2024			2023			2024			2023
Revenues	$	19,426		$	24,518		$	86,006		$	95,924
Direct costs¹		(11,977	)		(18,168	)		(58,199	)		(72,334	)
Other income and gains		52			4,256			1,247			6,501
Equity accounted income		1,034			429			2,729			2,068
Interest expense
– Corporate borrowings		(183	)		(142	)		(727	)		(596	)
– Non-recourse borrowings
Same-store		(3,474	)		(3,903	)		(14,889	)		(14,907	)
Acquisitions, net of dispositions²		(136	)		—			(319	)		—
Upfinancings²		(186	)		—			(680	)		—
Corporate costs		(20	)		(16	)		(76	)		(69	)
Fair value changes		(1,759	)		(1,326	)		(2,520	)		(1,396	)
Depreciation and amortization		(2,417	)		(2,427	)		(9,737	)		(9,075	)
Income tax		(259	)		(87	)		(982	)		(1,011	)
Net income		101			3,134			1,853			5,105
Loss (income) attributable to non-controlling interests		331			(2,435	)		(1,212	)		(3,975	)
Net income attributable to Brookfield shareholders	$	432		$	699		$	641		$	1,130

Net income per share
Diluted	$	0.25		$	0.42		$	0.31		$	0.61
Basic		0.26			0.43			0.31			0.62

_{1. Direct costs disclosed above exclude depreciation and amortization expense.
2. Interest expense from acquisitions, net of dispositions, and upfinancings completed for the year ended December 31, 2024.}

SUMMARIZED FINANCIAL RESULTS

DISTRIBUTABLE EARNINGS

Unaudited For the periods ended December 31 (US$ millions)	Three Months Ended						Years Ended
		2024			2023			2024			2023
Asset management	$	694		$	649		$	2,645		$	2,554

Wealth solutions		421			253			1,350			740

BEP		107			102			428			417
BIP		84			79			336			319
BBU		8			9			35			36
BPG		351			218			855			733
Other		12			(8	)		(28	)		(43	)
Operating businesses		562			400			1,626			1,462

Corporate costs and other		(179	)		(93	)		(750	)		(533	)
Distributable earnings before realizations¹		1,498			1,209			4,871			4,223
Realized carried interest, net		108			100			403			570
Disposition gains from principal investments		—			3			1,000			13
Distributable earnings¹	$	1,606		$	1,312		$	6,274		$	4,806

_{1. Non-IFRS measure – see Non-IFRS and Performance Measures section on page 8.}

RECONCILIATION OF NET INCOME TO DISTRIBUTABLE EARNINGS

Unaudited For the periods ended December 31 (US$ millions)	Three Months Ended						Years Ended
		2024			2023			2024			2023
Net income	$	101		$	3,134		$	1,853		$	5,105
Financial statement components not included in DE:
Equity accounted fair value changes and other items		448			1,097			2,679			2,902
Fair value changes and other		1,685			1,549			2,652			1,952
Depreciation and amortization		2,417			2,427			9,737			9,075
Disposition gains in net income		(659	)		(4,424	)		(1,234	)		(6,080	)
Deferred income taxes		82			(416	)		(341	)		(897	)
Non-controlling interests in the above items¹		(2,560	)		(2,064	)		(10,570	)		(7,941	)
Less: realized carried interest, net		(108	)		(100	)		(403	)		(570	)
Working capital, net		92			6			498			677
Distributable earnings before realizations²		1,498			1,209			4,871			4,223
Realized carried interest, net³		108			100			403			570
Disposition gains from principal investments		—			3			1,000			13
Distributable earnings²	$	1,606		$	1,312		$	6,274		$	4,806

_{1. Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by non-controlling interests in consolidated subsidiaries. By adjusting DE attributable to non-controlling interests, we are able to remove the portion of DE earned at non-wholly owned subsidiaries that is not attributable to Brookfield.
2. Non-IFRS measure – see Non-IFRS and Performance Measures section on page 8.}
_{3. Includes our share of Oaktree’s distributable earnings attributable to realized carried interest.}

EARNINGS PER SHARE

Unaudited For the periods ended December 31 (millions, except per share amounts)	Three Months Ended						Years Ended
		2024			2023			2024			2023
Net income	$	101		$	3,134		$	1,853		$	5,105
Non-controlling interests		331			(2,435	)		(1,212	)		(3,975	)
Net income attributable to shareholders		432			699			641			1,130
Preferred share dividends¹		(41	)		(43	)		(168	)		(166	)
Net income available to common shareholders		391			656			473			964
Dilutive impact of exchangeable shares of affiliate		3			3			12			5
Net income available to common shareholders including dilutive impact of exchangeable shares	$	394		$	659		$	485		$	969

Weighted average shares		1,508.3			1,540.1			1,511.5			1,558.5
Dilutive effect of conversion of options and escrowed shares using treasury stock method² and exchangeable shares of affiliate		81.1			40.8			73.1			29.7
Shares and share equivalents		1,589.4			1,580.9			1,584.6			1,588.2

Diluted earnings per share³	$	0.25		$	0.42		$	0.31		$	0.61

_{1. Excludes dividends paid on perpetual subordinated notes of $2 million (2023 – $2 million) and $10 million (2023 – $10 million) for the three months and year ended December 31, 2024, which are recognized within net income.
2. Includes management share option plan and escrowed stock plan.}
_{3. Per share amounts are inclusive of dilutive effect of mandatorily redeemable preferred shares held in a consolidated subsidiary.}

Additional Information

The Letter to Shareholders and the company’s Supplemental Information for the three months and year ended December 31, 2024, contain further information on the company’s strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available on the company’s website.

The statements contained herein are based primarily on information that has been extracted from our financial statements for the periods ended December 31, 2024, which have been prepared using IFRS, as issued by the IASB. The amounts have not been audited by Brookfield Corporation’s external auditor.

Brookfield Corporation’s Board of Directors has reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.

Information on our dividends can be found on our website under Stock & Distributions/Distribution History.

Quarterly Earnings Call Details

Investors, analysts and other interested parties can access Brookfield Corporation’s 2024 Fourth Quarter Results as well as the Shareholders’ Letter and Supplemental Information on Brookfield Corporation’s website under the Reports & Filings section at www.bn.brookfield.com.

To participate in the Conference Call today at 10:00 a.m. ET, please pre-register at https://register.vevent.com/register/BIf7f2f2b5bdd84f708b0fc3cd0fd714dd. Upon registering, you will be emailed a dial-in number, and unique PIN. The Conference Call will also be webcast live at https://edge.media-server.com/mmc/p/5vbgiehc. For those unable to participate in the Conference Call, the telephone replay will be archived and available until February 13, 2026. To access this rebroadcast, please visit: https://edge.media-server.com/mmc/p/5vbgiehc.

About Brookfield Corporation

Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Alternative Asset Management, Wealth Solutions, and our Operating Businesses which are in renewable power, infrastructure, business and industrial services, and real estate.

We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our unrivaled investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization. Brookfield Corporation is publicly traded in New York and Toronto (NYSE: BN, TSX: BN).

Please note that Brookfield Corporation’s previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR+ and can also be found in the investor section of its website at www.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

For more information, please visit our website at www.bn.brookfield.com or contact:

Media: Kerrie McHugh Tel: (212) 618-3469 Email: kerrie.mchugh@brookfield.com		Investor Relations: Angela Yulo Tel: (416) 943-7955 Email: angela.yulo@brookfield.com

Non-IFRS and Performance Measures

This news release and accompanying financial information are based on International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), unless otherwise noted.

We make reference to Distributable Earnings (“DE”). We define DE as the sum of distributable earnings from our asset management business, distributable operating earnings from our wealth solutions business, distributions received from our ownership of investments, realized carried interest and disposition gains from principal investments, net of earnings from our Corporate Activities, preferred share dividends and equity-based compensation costs. We also make reference to DE before realizations, which refers to DE before realized carried interest and realized disposition gains from principal investments. We believe these measures provide insight into earnings received by the company that are available for distribution to common shareholders or to be reinvested into the business.

Realized carried interest and realized disposition gains are further described below:

Realized Carried Interest represents our contractual share of investment gains generated within a private fund after considering our clients’ minimum return requirements. Realized carried interest is determined on third-party capital that is no longer subject to future investment performance.
Realized Disposition Gains from Principal Investments are included in DE because we consider the purchase and sale of assets from our directly held investments to be a normal part of the company’s business. Realized disposition gains include gains and losses recorded in net income and equity in the current period, and are adjusted to include fair value changes and revaluation surplus balances recorded in prior periods which were not included in prior period DE.

We use DE to assess our operating results and the value of Brookfield Corporation’s business and believe that many shareholders and analysts also find these measures of value to them.

We make reference to Operating Funds from Operations (“Operating FFO”). We define Operating FFO as the company’s share of revenues less direct costs and interest expenses; excludes realized carried interest and disposition gains, fair value changes, depreciation and amortization and deferred income taxes; and includes our proportionate share of FFO from operating activities recorded by equity accounted investments on a fully diluted basis.

We make reference to Net Operating Income (“NOI”), which refers to the revenues from our operations less direct expenses before the impact of depreciation and amortization within our real estate business. We present this measure as we believe it is a key indicator of our ability to impact the operating performance of our properties. As NOI excludes non-recurring items and depreciation and amortization of real estate assets, it provides a performance measure that, when compared to prior periods, reflects the impact of operations from trends in occupancy rates and rental rates.

We disclose a number of financial measures in this news release that are calculated and presented using methodologies other than in accordance with IFRS. These financial measures, which include DE, should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in accordance with IFRS. We caution readers that these non-IFRS financial measures or other financial metrics are not standardized under IFRS and may differ from the financial measures or other financial metrics disclosed by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities.

We provide additional information on key terms and non-IFRS measures in our filings available at www.bn.brookfield.com.

_{1. Consolidated basis – includes amounts attributable to non-controlling interests.}
_{2. Excludes amounts attributable to non-controlling interests.}
_{3. See Reconciliation of Net Income to Distributable Earnings on page 5 and Non-IFRS and Performance Measures section on page 8.}

Notice to Readers

Brookfield Corporation is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement.

This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward- looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which in turn are based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Brookfield Corporation are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect,” “anticipate,” “believe,” “foresee,” “could,” “estimate,” “goal,” “intend,” “plan,” “seek,” “strive,” “will,” “may” and “should” and similar expressions. In particular, the forward-looking statements contained in this news release include statements referring to the impact of current market or economic conditions on our business, the future state of the economy or the securities market, the anticipated allocation and deployment of our capital, our fundraising targets, and our target growth objectives.

Although Brookfield Corporation believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including acquisitions and dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations and sanctions; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments including asset management, wealth solutions, renewable power and transition, infrastructure, private equity, real estate and corporate activities; and (xxv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release or such other date specified herein. Except as required by law, Brookfield Corporation undertakes no obligation to publicly update or revise any forward- looking statements, whether written or oral, that may be as a result of new information, future events or otherwise.

Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved (because of economic conditions, the availability of appropriate opportunities or otherwise).

Target returns and growth objectives set forth in this news release are for illustrative and informational purposes only and have been presented based on various assumptions made by Brookfield Corporation in relation to the investment strategies being pursued, any of which may prove to be incorrect. There can be no assurance that targeted returns or growth objectives will be achieved. Due to various risks, uncertainties and changes (including changes in economic, operational, political or other circumstances) beyond Brookfield Corporation’s control, the actual performance of the business could differ materially from the target returns and growth objectives set forth herein. In addition, industry experts may disagree with the assumptions used in presenting the target returns and growth objectives. No assurance, representation or warranty is made by any person that the target returns or growth objectives will be achieved, and undue reliance should not be put on them.

When we speak about our wealth solutions business or Brookfield Wealth Solutions, we are referring to Brookfield’s investments in this business that supported the acquisitions of its underlying operating subsidiaries.

The MIL Network –

February 14, 2025

MIL-OSI United Kingdom: Former owner of Gillingham takeaway sanctioned for £50,000 Covid loan abuse
Source: United Kingdom – Executive Government & Departments

Former owner of Chinese takeaway in Kent claimed maximum loan for business which was not eligible for any money
Zhongqing Li claimed a £50,000 Bounce Back Loan for his Chinese takeaway despite the business not being eligible for the scheme

The Official Receiver uncovered the abuse of the loan after the takeaway owner became bankrupt.

He is now subject to nine years of sanctions which prevent him acting as a company director

The former owner of a Chinese takeaway in Kent is subject to stringent sanctions after taking out a £50,000 Bounce Back Loan during the Covid pandemic when the business was not entitled to any money under the scheme.

Zhongqing Li, 55, from Parkwood Green, Gillingham, applied for the loan in June 2020 to support his Silver Sea takeaway, which also traded from Parkwood Green.

Li became bankrupt in June 2024, owing the full amount of the loan.

The Official Receiver, whose duty includes investigating the cause of a bankruptcy, discovered that Silver Sea had not been trading within the required timeframe to have been eligible for a Bounce Back Loan.

Samantha Crook, Deputy Official Receiver at the Insolvency Service, said:

The Bounce Back Loan scheme was designed to help keep existing businesses afloat during a time of crisis for the country.

Zhongqing Li abused this vital support by claiming the maximum amount possible for a business that was not entitled to receive a loan under the terms of the scheme.

The Insolvency Service strives to secure the toughest sanctions for those who abuse public money, and we are pleased these lengthy restrictions will curb Li’s business and financial activities to help protect the public from further harm.

Li made a loan application on 15 June 2020 in which he stated that Silver Sea had been trading on 1 March 2020 – the date businesses had to have been trading to qualify for a loan under the rules of the scheme.

But the Official Receiver discovered that the day before he applied for the loan, Li had signed a VAT registration form saying the business had only begun trading in the previous month, on 17 May 2020.

The Official Receiver secured a Bankruptcy Restrictions Undertaking (BRU) from Li, in which he did not dispute that he had obtained a £50,000 Bounce Back Loan to which he was not entitled because he was not trading on or before 1 March 2020, as required by the terms of the scheme.

He agreed to abide by sanctions that restrict his finance and business activities, and extend the original terms of his bankruptcy – usually a 12-month period – for another nine years.

The restrictions prevent him acting as a company director without permission from the court, and from holding certain roles in public organisations. He is also prohibited from borrowing more than £500 without declaring he is subject to the sanctions.

The Secretary of State for Business and Trade accepted the undertaking from Zhongqing Li on 28 January 2025. He will be subject to the restrictions until 27 January 2034.

The Silver Sea takeaway continues to trade under different owners.

The Official Receiver continues to make enquiries into possible recovery of the money.

Further Information

Zhongqing Li is of Parkwood Green, Gillingham. His date of birth is 14 July 1969.

Further guidance about Bankruptcy Restrictions Orders and Undertakings 

Details of BRO and BRU restrictions relating to individuals can be found on the Individual Insolvency Register

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Published 13 February 2025
MIL OSI United Kingdom –
February 14, 2025
MIL-OSI Economics: Per Jansson: Credibility and flexibility going forward

Source: Bank for International Settlements

Accompanying slides to the speech

My time as a member of the Executive Board of the Riksbank has been quite special, with two extreme periods in terms of how inflation has developed. The first period had already started before I joined the Executive Board in 2012. During this time, inflation had been below target more or less consistently for more than half a decade, sometimes very much below. The problem, which we shared with many other central banks, was how to get inflation to rise towards the target. After a few years of better target attainment in 2017−2019, the global pandemic hit and was followed by a period in which inflation rose sharply and was far above the target, for the first time since its introduction some thirty years ago (see Figure 1). In other words, the problems we have had to deal with during this time have been of very different kinds.

What these periods have had in common, however, is that monetary policy has reacted clearly and decisively to bring inflation back to the target. This has required quite specific, and in some cases unique, measures. First, negative policy rates and large-scale securities purchases, something that had not been tried before. After that, the fastest and largest rate hikes during the inflation targeting period.

I believe there may be some merit in the fact that inflation targeting has now been tested both during a period of too low inflation and during a period of too high inflation − and of course that it has proved to pass the test. The investment in credibility that we have thus made could pay off in the form of making it slightly easier to conduct monetary policy in the future. More specifically, it could mean that we can allow ourselves to act a little less forcefully than we have done so far with the interest rate. But a prerequisite for this is that economic actors really see the target as credible and worth upholding, and act accordingly. This is what I intend to talk about here today.

MIL OSI Economics –

February 14, 2025

MIL-OSI: Himax Technologies, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results; Provides First Quarter 2025 Guidance

Source: GlobeNewswire (MIL-OSI)

Q4 2024 Revenues, Gross Margin and EPS All Surpassed Guidance Range Issued on November 7, 2024
Company Q1 2025 Guidance: Revenues to Decrease 8.5% to 12.5% QoQ,
Gross Margin is Expected to be Around 30.5%. Profit per Diluted ADS to be 9.0 Cents to 11.0 Cents

Q4 2024 revenues registered $237.2 million, an increase of 6.7% QoQ, significantly exceeding guidance range of a slight decrease to flat, primarily driven by stronger order momentum across product lines
Q4 2024 Gross margin reached 30.5%, exceeding guidance of flat to slightly up, driven by a favorable product mix and cost improvements. Up from 30.0% in the Q3 2024
Q4 2024 after-tax profit was $24.6M, or 14.0 cents per diluted ADS, considerably above the guidance range of 9.3 cents to 11.0 cents
Company’s full year 2024 revenues were $906.8 million, and gross margin was 30.5%. 2024 profit attributable to shareholders was $0.46 per fully diluted ADS
Company’s Q1 2025 revenues to decline 8.5% to 12.5% QoQ, reflecting the low season demand due to Lunar New Year holidays. The Q1 revenue guidance implies flat to 4.6% increase YoY. Gross margin to be around 30.5%, up from 29.3% same quarter last year. Profit per diluted ADS to be in the range of 9.0 cents to 11.0 cents, implying the increase of 26% to 54% YoY
Himax sales revenues in each quarter of 2024 consistently outperformed guidance, demonstrating its ability to handle most of rush orders, underscoring its strong ability in inventory management and swift market responsiveness
Full year 2024 automotive driver IC sales increased nearly 20% YoY, significantly outpacing global automotive growth, largely driven by the continued TDDI adoption among major customers across all continents. Himax continues to reinforce its market leadership in automotive TDDI, holding well over 50% market share
Himax’s WLO technology plays a critical role in CPO by providing essential optical coupling capability, making it a core element of the solution. Small-scale production of the first-gen CPO underway, with acceleration of future CPO generation development, in close collaboration with AI customers/partners. Company believes prospect of CPO remains unchanged
WiseEye, building on the success with Dell, has achieved notable progress with other leading NB brands. Also made breakthroughs in smart door lock, palm vein authentication and smart home. Himax anticipates a strong growth trajectory in WiseEye business in 2025 and beyond
At CES 2025, Himax showcased a wide range of innovative achievements, including automotive display technology, WiseEye AI, and advanced optical technologies for AR/VR
Rising enthusiasm in AR glasses with Gen AI in CES 2025. Himax offers three critical technologies for AR glasses, namely LCoS microdisplay, WLO waveguide, and ultralow power WiseEye AI
Himax is well-positioned to capitalize on the trend of the premium NB to adopt OLED displays and touch features. Confident to lead in the rapidly evolving landscape of AI PCs and premium NB, offering a comprehensive IC portfolio for both LCD and OLED NB

TAINAN, Taiwan, Feb. 13, 2025 (GLOBE NEWSWIRE) — Himax Technologies, Inc. (Nasdaq: HIMX) (“Himax” or “Company”), a leading supplier and fabless manufacturer of display drivers and other semiconductor products, announced its financial results for the fourth quarter and full year 2024 ended December 31, 2024.

“In 2024, our sales revenues in each quarter consistently outperformed guidance. We have consistently demonstrated our ability to handle most of rush orders, underscoring our agility, adaptability, strong capabilities in inventory management, and swift market responsiveness,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.

“At CES this year, Himax showcased a wide range of innovative achievements, including automotive display technology, WiseEye AI, and advanced optical technologies for AR/VR. Notably, a clear trend emerged at this year’s CES as the industry demonstrated growing enthusiasm for AR glasses, fueled by more companies entering the space and integrating generative AI to accelerate the development of lightweight, compact, and all-day AR glasses. For AR glasses, Himax offers three critical technologies, namely LCoS microdisplay, WLO waveguide, and ultralow power WiseEye AI,” continued Mr. Jordan Wu.

“Himax’s WLO technology plays a critical role in CPO by providing essential optical coupling capability, making it a core element of the solution. The prospect of CPO remains unchanged and the widespread adoption of CPO for data transmission to be conducted via optics instead of metal wire is on track in high-performance AI applications. Through WLO and CPO technologies, Himax is well-positioned to engage in the high-speed AI computing market with high expectations for its growth,” concluded Mr. Jordan Wu.

Fourth Quarter 2024 Financial Results

Himax net revenues registered $237.2 million, an increase of 6.7% sequentially, significantly exceeding Company’s guidance range of a slight decrease to flat, and up 4.2% year-over-year. Gross margin reached 30.5%, exceeding its guidance of flat to slightly up from 30.0% in the previous quarter, and up from 30.3% in the same period last year. The sequential increase was driven by a favorable product mix and cost improvements. Q4 profit per diluted ADS was 14.0 cents, considerably above the guidance range of 9.3 cents to 11.0 cents, thanks to better-than-expected revenues and improved costs.

Revenue from large display drivers came in at $25.0 million, reflecting a 18.6% sequential decline. The decrease was primarily attributed to continued customer destocking after substantial Q2 replenishment for shopping festivals, as well as heightened price competition from Chinese peers. Sales of large panel driver ICs accounted for 10.5% of total revenues for the quarter, compared to 13.8% last quarter and 14.8% a year ago.

Small and medium-sized display driver segment totaled $166.8 million, an increase of 7.4% sequentially, exceeding its guidance of flat quarter-over-quarter, thanks to stronger-than-expected sales in the automotive and tablet markets. Q4 automotive driver sales, including both traditional DDIC and TDDI, experienced mid-teens increase, significantly outperforming Company’s expectation of a single digit increase, with both DDIC and TDDI showing stronger-than-expected sales. This surge was primarily driven by continued rush orders from Chinese panel customers, carried over from Q3, following the Chinese government’s renewed trade-in stimulus initiative announced in mid-August 2024 to boost automobile consumption. Remarkably, Himax’s Q4 automotive TDDI sales have exceeded DDIC sales for the first time, underscoring the global adoption of Company’s TDDI solutions, which are increasingly essential in modern vehicles, and reflects the growing demand for more intuitive, interactive, and cost-effective touch panel features powered by TDDI technology. Himax’s automotive business, comprising drivers, Tcon, and OLED IC sales, accounted for around 50% of total Q4 revenues. Meanwhile, Q4 tablet IC sales exceeded the guidance of a low teens decline, with sales up slightly sequentially driven by rush orders from leading end customers. Q4 smartphone IC sales declined slightly, in line with its guidance. The small and medium-sized driver IC segment accounted for 70.3% of total sales for the quarter, compared to 69.9% in the previous quarter and 71.6% a year ago.

Fourth quarter revenues from its non-driver business reached $45.4 million, exceeding the guidance range, with a 24.9% increase from the previous quarter. The growth was primarily driven by a one-time ASIC Tcon product shipment to a leading projector customer and Tcon for monitor application. In Q4, automotive Tcon sales continued to grow sequentially, due to the widespread adoption of Himax’s market-leading local dimming Tcon with over two hundred secured design-win projects across major panel makers, Tier 1 suppliers, and automotive manufacturers worldwide. Non-driver products accounted for 19.2% of total revenues, as compared to 16.3% in the previous quarter and 13.6% a year ago.

Fourth quarter operating expenses were $49.2 million, a decrease of 19.1% from the previous quarter and a decline of 6.0% from a year ago. The sequential decrease stemmed primarily from a reduction in annual employee bonuses, partially offset by an increase in R&D expenses. As part of Company’s standard practice, Himax grants annual bonuses, including cash and RSUs, to employees at the end of September each year. This results in higher IFRS operating expenses in the third quarter compared to the other quarters of the year. The year-over-year decrease was mainly due to a decline in employee bonus compensation as the amortized portion of prior year’s bonuses for 2023 was higher than that for 2024, offsetting the higher annual bonus compensation grant for 2024 compared to 2023. Amid ongoing macroeconomic challenges, Himax is strictly enforcing budget and expense controls, with full-year 2024 operating expenses declining 5.6% compared to last year.

Fourth quarter operating income was $23.1 million or 9.7% of sales, compared to 2.6% of sales last quarter and 7.3% of sales for the same period last year. The sequential increase was primarily the result of higher sales, improved gross margin, and lower operating expenses. The year-over-year increase was primarily the result of higher sales, higher gross margin, and lower employee bonus compensation due to the amortized portion of the prior year’s bonuses. Fourth-quarter after-tax profit was $24.6 million, or 14.0 cents per diluted ADS, reflecting a meaningful increase from $13.0 million, or 7.4 cents per diluted ADS last quarter, and up from $23.6 million, or 13.5 cents in the same period last year.

Full Year 2024 Financial

Revenues totaled $906.8 million, a slight decline of 4.1% compared to 2023. Persistent global demand weakness, coupled with uncertainty about market trends, led to conservative purchasing decisions and inventory management by Company’s panel customers. Given this uncertainty, Himax implemented strict expense controls, resulting in a 5.6% reduction in operating expenses for the year. However, Company’s optimism in the automotive business remains unwavering, with automotive IC sales increasing by nearly 20% year-over-year in 2024, far outpacing the overall automotive market growth. Among Company’s automotive product lines, automotive TDDI and Tcon sales, both relatively new technologies, surged by more than 70%, driven by accelerated adoption across the board. This growth strengthened Company’s market leadership and positions Himax well for continued success as the automotive sector embraces more advanced technology resulting from the mega trend of increasing size, quantity, and sophistication of displays inside vehicles.

Revenue from large panel display drivers totaled $125.9 million in 2024, marking a decrease of 28.3% year-over-year, and representing 13.9% of total sales, as compared to 18.6% in 2023. Small and medium-sized driver sales totaled $625.4 million, reflecting a slight decrease of 0.6% year-over-year, and accounting for 69.0% of its total revenues, as compared to 66.5% in 2023. Non-driver product sales totaled $155.5 million, an increase of 10.6% year-over-year, and representing 17.1% of Company’s total sales, as compared to 14.9% a year ago.

Gross margin in 2024 was 30.5%, up from 27.9% in 2023. The margin expansion was driven by a strategic focus on cost improvements and operational efficiency optimization, combined with a favorable product mix that included a higher percentage of high-margin products such as automotive and Tcon. The successful diversification of foundry sources also contributed to the margin increase.

Operating expenses in 2024 were $208.0 million, a decline of 5.6% from 2023, primarily due to lower employee bonus compensation, as the amortized portion of bonuses in 2023 was higher than that in 2024. 2024 operating income was $68.2 million, or 7.5% of sales, an increase from $43.2 million, or 4.6% of sales, in 2023. Himax’s net profit for 2024 was $79.8 million, or $0.46 per diluted ADS, significantly up from $50.6 million, or $0.29 per diluted ADS in 2023.

Balance Sheet and Cash Flow

Himax had $224.6 million of cash, cash equivalents and other financial assets as of December 31, 2024. This compares to $206.4 million at the same time last year and $206.5 million a quarter ago. Himax achieved a strong positive operating cash flow of $35.4 million for the fourth quarter, compared to a cash outflow of $3.1 million in Q3. Company made a total of $30.1 million annual cash bonus to employees, resulting in the low operating cash flow of the quarter. As of December 31, 2024, Himax had $34.5 million in long-term unsecured loans, with $6.0 million representing the current portion.

The Company’s inventories as of December 31, 2024 were $158.7 million, lower than $192.5 million last quarter and $217.3 million at the end of last year. Company’s inventory levels have steadily declined over the past couple of quarters and are now at a healthy level. Accounts receivable at the end of December 2024 was $236.8 million, little changed from $224.6 million last quarter and $235.8 million a year ago. DSO was 96 days at the quarter end, as compared to 92 days last quarter and 91 days a year ago. Fourth quarter capital expenditures were $3.2 million, versus $2.6 million last quarter and $15.1 million a year ago. Fourth quarter capex was mainly for R&D related equipment for Company’s IC design business. Total capital expenditures for 2024 were $13.1 million as compared to $23.4 million in 2023. The decrease was primarily due to reduced spending on in-house testers for Company’s IC design business in 2024.

Outstanding Share

As of December 31, 2024, Himax had 174.9 million ADS outstanding, little changed from last quarter. On a fully diluted basis, the total number of ADS outstanding for the fourth quarter was 175.1 million.

Q1 2025 Outlook

In 2024, Himax’s sales revenues in each quarter consistently outperformed guidance. While this strong performance is certainly commendable, it also highlights the challenges Company faced such as limited market visibility and conservative customer demand, where many customers relied on rush orders to address their actual demands. On the other hand, rush orders are indicative of the tight inventory position of Company’s panel customers in general. In the past few quarters, Himax has consistently demonstrated its ability to handle most of such rush orders, underscoring Company’s agility, adaptability, strong capabilities in inventory management, and swift market responsiveness.

The automotive IC sales remained Company’s largest revenue contributor in 2024, accounting for almost half of total revenues and achieving close to 20% annual growth. This performance highlights Himax’s automotive leadership in technological innovations, product development, and market share. Looking ahead, Himax expects its automotive TDDI and Tcon technologies to maintain growth momentum, further strengthening its market competitiveness. Beyond LCD technology, Himax is advancing development in the automotive OLED sector, with numerous projects currently underway in partnership with leading panel makers. Company anticipates that automotive OLED IC will serve as one of the key growth drivers for Himax in the coming years, further solidifying its leadership in automotive display market.

Meanwhile, Himax is actively expanding its technology development beyond display ICs. To that end, in the WiseEye AI segment, Company has made notable progress with leading notebook brands and achieved significant breakthroughs in smart door lock, palm vein authentication, and smart home applications, collaborating with world-leading customers to develop new innovations. Himax anticipates a strong growth trajectory in its WiseEye business in 2025 and beyond.

Himax’s proprietary wafer-level optics (WLO) technology for co-packaged optics (CPO) has recently garnered significant attention in the capital markets. In fact, as early as June 2024, Himax and FOCI, a global leader in silicon photonics connectors, jointly announced the industry-leading CPO technology. The collaboration, spanning several years, unites Himax’s WLO technology with FOCI’s CPO solutions for cutting-edge AI multi-chip modules (MCM). Since the announcement, Himax has provided updates on the latest progress in each quarterly earnings call. Himax’s WLO technology plays a critical role in CPO by providing essential optical coupling capability, making it a core element of the solution. CPO significantly enhances bandwidth and accelerates data transmission while reducing signal loss, latency, and power consumption. Additionally, it can help drastically decrease the size and cost of MCM.

While CPO is still in engineering validation and trial production stage this year, with customer’s mass production timelines undisclosed and the recent AI market disruptions from DeepSeek, the prospect of CPO remains unchanged. The widespread adoption of CPO for data transmission to be conducted via optics instead of metal wire is on track in high-performance AI applications. This is evident by the significant increase in customer’s recent trial production volume forecast, indicating an accelerated timeline for CPO technology to enter mass production. Furthermore, Himax and FOCI, in close collaboration with leading AI customers and partners, are actively developing future generations of CPO technologies to meet the explosive high-speed optical data transmission demand in HPC and AI. Through WLO and CPO technologies, Himax is well-positioned to engage in the high-speed AI computing market with high expectations for its growth. Company believes that CPO technology, beyond cloud applications, will see further adoption in sectors such as automotive and robot in the future. Himax’s current goal is to accelerate CPO adoption in cloud applications, thereby helping drive broader CPO adoption in AI applications.

At CES this year, Himax showcased a wide range of innovative achievements, including automotive display technology, WiseEye AI, and advanced optical technologies for AR/VR. Notably, a clear trend emerged at this year’s CES as the industry demonstrated growing enthusiasm for AR glasses, fueled by more companies entering the space and integrating generative AI to accelerate the development of lightweight, compact, and all-day AR glasses. For AR glasses, Himax offers three critical technologies, namely LCoS microdisplay, WLO waveguide, and ultralow power WiseEye AI. Company’s latest, patented Front-lit LCoS Microdisplay delivers unparalleled brightness with an industry-leading 400k nits, exceptional optical power efficiency, compact form factor, lightweight, and superior display quality, making it one of the most viable solutions in the see-through AR glasses market. In waveguide, in collaboration with leading tech names, Himax leverages proprietary WLO expertise, built on advanced nanoimprint technology, to offer industry-leading optical solutions that optimize light transmission and display efficiency. In the field of AI sensing for AR glasses, Himax’s WiseEye provides always-on AI sensing capabilities which are being applied by developers to significantly enhance AR interactivity while consuming just a few milliwatts of power.

In automotive display IC technology, Himax unveiled the industry’s most comprehensive LCD and OLED solutions at CES, showcasing a range of next-generation smart cabin technologies. These solutions not only improve the intuitive operation of smart cabins but also enhance driving safety and provide an exceptional user experience. A prime example is the advanced Display HMI solution developed in collaboration with AUO which meets the demands for large-size, high-resolution, and freeform automotive displays.

At CES, Himax also partnered with several AI ecosystem partners to showcase its ultralow power WiseEye Modules over a range of innovative, production-ready AIoT applications. These applications include palm vein authentication, baby cry detection, people flow management, and human sensing detection. The modules are designed for easy integration, making it highly suitable for various AIoT applications.

Display Driver IC Businesses

LDDIC

In Q1 2025, Himax anticipates a single digit sequential sales increase for large display driver ICs, driven by demand spurred by Chinese government subsidies for household appliances aimed at reviving demand in the sluggish household sector. Notebook and monitor sales are expected to increase in Q1. In contrast, TV IC sales are set to decline as customers pulled forward their inventory purchases in the prior quarter, coupled with the seasonal slowdown in Q1.

Looking ahead in the notebook sector, Company is seeing an increase in demand for premium notebooks to adopt OLED displays and touch features, partially fueled by the rise of AI PC. Himax is well-positioned to capitalize on this trend, offering a comprehensive range of ICs for both LCD and OLED notebooks, including DDIC, Tcon, touch controllers, and TDDI. A standout innovation is Company’s pioneering in-cell touch TDDI for LCD displays, which improves the ease of system design and integration by embedding the touch controller within the TDDI chip while maintaining the conventional display driver setup for Tcon data transmission. This design simplifies integration for customers, reducing engineering complexity and speeding up product development. This solution also supports high-resolution displays up to 4K and larger screens up to 16 inches, aligning with the growing demand for advanced, visually stunning, and immersive laptops. With mass production already underway for a leading notebook vendor’s AI PC, more projects are lined up. For OLED notebooks, in addition to Company’s OLED DDIC and Tcon solutions, Himax is also developing on-cell touch controller technology, with multiple projects underway with top panel makers and notebook vendors. Last but not least, progress has been made on the next-generation eDP 1.5 display interface for Tcon for both LCD and OLED panels. This interface will support high frame rates, low power consumption, adaptive sync, and high resolution, key features essential for next-generation AI PCs. By delivering innovative, cutting-edge technologies, Himax is well-positioned to lead in the rapidly evolving landscape of AI PCs and premium notebooks.

SMDDIC

On SMDDIC revenue, for the full year 2024, Himax’s automotive driver IC sales, comprising of TDDI and traditional DDIC, increased nearly 20% year-over-year, significantly outpacing global automotive growth, largely driven by the continued adoption of TDDI technology among major customers across all continents. However, Himax anticipates Q1 automotive revenue to decline low teens sequentially, following two quarters of surge demand. Despite this, Q1 automotive sales are still projected to increase by mid-teens on a year-over-year basis. In the automotive TDDI sector, with cumulative shipments significantly surpassing those of Himax’s competitors, Company continues to reinforce its market leadership, which currently stands at well over 50%. With nearly 500 design-in projects secured and a continuous influx of new pipeline and design-wins across the board, of which only 30% already in mass production, Himax expects to sustain this decent growth in the years ahead. While traditional automotive DDIC sales for 2024 declined due to their gradual, partial replacement by TDDI, Company’s DDIC shipment volume still saw a modest increase in the last year. This demonstrates the steady demand for mature DDIC products, such as those used in cluster displays, HUDs, and rear- and side-view mirrors, which do not require touch functionality. Furthermore, the long-term trust and loyalty from Company’s DDIC customers, some of whom have relied on Himax’s solutions for over a decade, is indicative of Company’s strong customer retention. Himax continues to lead the automotive DDIC market, maintaining a global market share of approximately 40%.

Himax continues to lead in automotive display IC innovation by pioneering solutions that deliver superior performance, power efficiency, and enhanced user experiences. As part of this ongoing innovation, Company’s latest TED (Tcon Embedded Driver IC) solution, which combines TDDI with local dimming Tcon into a single chip, provides a cost-effective, flexible, and comprehensive solution for its customers. Another new technology worth highlighting is Himax’s automotive TDDI with advanced user-aware touch control, which differentiates between driver and passenger touches to prevent cross-touch and enhance driving safety. In addition, Company offers a unique knob-on-in-cell-display solution that combines a physical knob with a TDDI. This design seamlessly merges in-cell touch technology with tactile controls, offering drivers a safer, more intuitive interaction that reduces distractions and enhances the overall driving experience.

Moving to smartphone and tablet IC sales, Himax expects a sequential decline in both product lines, as is typical during the low season in Q1 due to the Lunar New Year.

On OLED business update. In the automotive OLED market, Company has established strategic partnerships with leading panel makers in Korea, China, and Japan. As OLED technology extends beyond premium car models, Himax is well-positioned as the preferred partner, leveraging Company’s strong presence and proven track record in the automotive LCD display sector. Capitalizing on Himax’s first-mover advantage, Himax aims to drive the growing adoption of OLED in automotive displays by offering a comprehensive range of solutions, including DDIC, Tcon, and on-cell touch controller. Company believes this positions it as a primary beneficiary of the anticipated shift toward OLED displays for high end vehicles in a couple of years, enabling Himax to capture new growth opportunities and further strengthen its market leadership.

Beyond the automotive sector, Company has also made strides in the tablet and notebook markets, partnering with leading OLED panel makers in Korea and China. Himax’s comprehensive OLED product portfolio, covering DDIC, Tcon, and touch controllers, has driven several new projects that are on track to begin mass production this year. In the smartphone OLED market, Company is making solid progress in collaborations with customers in Korea and China and anticipates mass production to start later this year.

First quarter small and medium-sized display driver IC business is expected to decline low teens sequentially.

Non-Driver Product Categories

Q1 non-driver IC revenues are expected to decrease high teens sequentially.

Timing Controller (Tcon)

Himax anticipates Q1 2025 Tcon sales to decrease mid-teens sequentially, primarily due to the non-recurrence of a one-time ASIC Tcon shipment to a leading projector customer last quarter, as well as a moderation in automotive Tcon shipments following several quarters of strong growth. That being said, Himax maintains an unchallenged position in local dimming Tcon, evidenced by growing validation and widespread adoption in both premium and mainstream car models worldwide. Company is confident in the continued growth of its automotive Tcon business, supported by its strong market presence in local dimming Tcon, with strong pipeline of over two hundred design-win projects set to gradually enter production in the coming years. Heads-up display (HUD) is another field gaining traction within automotive displays, driving increased adoption of local dimming Tcon technology and emerging as a particularly promising application. Himax’s industry-leading local dimming Tcon provides distinct advancements with high contrast ratio and optimized power consumption. It effectively eliminates the “postcard effect” often seen in HUDs, caused by backlight leakage typical of conventional TFT LCD panels, ensuring clear and precise images on the windshield. Additionally, the Tcon features advanced transparency detection to prevent the display from obstructing the driver’s view, thereby ensuring driving safety. Several HUD projects are already in progress, and Himax is excited about the potential opportunities ahead. Company is well positioned for continuous growth in automotive Tcon over the next few years.

WiseEye™ Ultralow Power AI Sensing

On the update of WiseEye™ ultralow power AI sensing solution, a cutting-edge endpoint AI integration featuring industry-leading ultralow power AI processor, always-on CMOS image sensor, and CNN-based AI algorithm. WiseEye AI delivers a significant competitive edge in the rapidly growing AI market through its ultralow power consumption and context-aware, on-device AI inferencing that seamlessly integrates vision and other sensing capabilities into endpoint applications, particularly battery-powered devices. This not only enhances intuitive user interaction but also makes AI more practical and accessible. Additionally, WiseEye AI offloads tasks from the main processor, effectively extending battery lifespan and improving overall data processing efficiency. Building on the success with Dell notebooks, Himax WiseEye AI is continuing to expand its market presence, with additional use cases expected across other leading notebook brands, some of which are set for production later this year.

WiseEye also continues to achieve significant market success across various sectors. For smart door lock, Company collaborated with DESMAN, a leading high-end brand in China, to introduce the world’s first smart door lock with 24/7 sentry monitoring and real-time event recording. Building on this achievement, Himax is expanding globally by collaborating with other leading door lock makers worldwide to integrate innovative AI features, including parcel recognition, anti-pinch protection, and palm vein biometric access, further extending application possibilities. Several of these value-added solutions are set to enter production later this year. At CES 2025, Himax joined forces with ecosystem partners to unveil a suite of innovative, production-ready AIoT applications, powered by Company’s tiny form factor, plug-and-play WiseEye Modules. Himax offers a series of modules, each incorporating an ultralow power WiseEye AI processor, an AoS image sensor, and advanced algorithms. The modules feature no-code/low-code AI platform capabilities, simplifying AI integration and supporting diverse use cases, such as human presence detection, gender and age recognition, gesture recognition, face mesh, voice command, thermal image sensing, pose estimation and people flow management. By streamlining deployment and reducing development costs, WiseEye Modules open new opportunities for automation, enhance interactivity, and elevate user experiences across a variety of industries.

A broad range of innovative, ultralow power WiseEye Modules are also under development in collaboration with ecosystem partners, such as crying baby detection, dynamic gesture recognition, and human sensing, among others. One standout in Himax’s WiseEye Module portfolio is the Himax WiseEye PalmVein solution, which has quickly gained traction since its introduction just one year ago. Company has secured multiple design wins, with mass production already underway by a US customer for smart access applications and a Taiwan-based door lock vendor for its leading smart door lock brands. To meet growing customer demand for flexibility across various environments, the upgraded WiseEye PalmVein suite now features bimodal authentication, combining both palm vein and face recognitions. This dual-authentication solution enhances security by offering two layers of biometric verification, which not only increases reliability but also makes it highly adaptable to various environments.

The rise of physical AI agents marks a significant shift in human-machine interaction, enabling devices to perceive, process, and respond to their surroundings in real time. A key emerging trend is the integration of cloud-based large language models (LLMs), which enables these agents’ advanced reasoning and language understanding, enhancing their ability to interact with and adapt to the physical world. Himax WiseEye AI is at the forefront of this revolution, delivering always-on sensor fusion, ultralow power on-device processing, while seamlessly interfacing with LLMs, to provide the essential real-time AI capabilities for next-generation applications. A good illustration of this innovation was showcased at CES 2025, where Himax and Seeed Studio introduced the SenseCAP Watcher, a physical AI agent powered by WiseEye AI. Equipped with vision and audio sensor fusion, along with a speaker, this battery-powered IoT device combines on-device AI with cloud-based LLMs to interpret commands, recognize objects, respond to events, and facilitate real-time interaction. Drawing from the success of SenseCAP Watcher, Himax is actively working on multiple projects leveraging WiseEye AI to further drive advancements in physical AI agent applications.

Separately, Himax is excited about its collaboration with a leading AR player to integrate WiseEye AI into the next generation of AR glasses. At CES, there was a renewed enthusiasm on AR glasses with AI becoming an integral component to enable intuitive and seamless human-device interaction. WiseEye AI addresses two critical challenges in AR glasses, namely real-time responsiveness and power efficiency. For example, WiseEye supports always-on outward sensing, enabling AR glasses to detect and analyze the surrounding environment with real time context-aware AI. This capability powers instant response, real-time object recognition, navigation assistance, translation, and environmental mapping, enhancing the overall AR experience. Notably, WiseEye AI’s exceptional ultralow power consumption, measured in single digit milliwatts, also make it perfectly suited for AR glasses for all-day wear. In another example, Company collaborates with Ganzin on eyeball tracking technology, which, powered by WiseEye, precisely detects subtle eyeball movements, gaze direction, pupil size, and blinking, thereby providing critical data for the enhancement of user interaction in AR glasses.

Wafer Level Optics (WLO)

In June 2024, Himax, in partnership with FOCI, a world leader in silicon photonics connector, unveiled an industry-leading co-packaged optics (CPO) technology, leveraging Himax state-of-the-art WLO technology. This innovation integrates silicon photonic chips and optical connectors within MCM, replacing traditional metal wire transmission with high-speed optical communication. The technology significantly enhances bandwidth, boosts data transmission rates, reduces signal loss and latency, lowers power consumption, and significantly minimizes the size and cost of MCM. In working closely with FOCI, Himax is making significant strides through a solid partnership with leading AI semiconductor companies and foundry, with small-scale production of the first-generation CPO solution already underway. The significant increase in Q1 engineering validation and trial production volume, combined with the anticipated sample volume increases in the coming quarters, is a strong indication that CPO technology is being accelerated toward mass production. In addition, in close collaboration with leading AI customers/partners, Himax is speeding up the development of CPO technology for the next few generations. Himax is more optimistic than ever about the outlook for its WLO business, which is poised to generate significant growth opportunities and become a major revenue and profit contributor in the years ahead.

Alongside the CPO progress, Company is witnessing a rise in engineering collaborations with global technology leaders who are utilizing Himax’s WLO expertise to make advanced waveguides for AR glasses, highlighting the growing recognition of Company’s WLO capabilities.

LCoS

On the update on LCoS, Company recently introduced its industry-leading 400K nits ultra-luminous Front-lit LCoS Microdisplay, setting a new benchmark for brightness with extremely low power consumption of merely 300mW. At CES 2025, Company showcased an AR glasses POC (Proof-Of-Concept) featuring the microdisplay with a third-party waveguide, achieving over 1,000 nits of brightness to the eye. This demonstration highlighted its suitability for outdoor, high ambient light conditions. With a lightweight of just 0.98 grams and ultra-compact form factor of less than 0.5 c.c., combined with excellent color performance, Himax’s Front-lit LCoS Microdisplay is ideal for all-day AR glasses and underscores the technology’s readiness for real-world applications.

Following the recent release of Himax’s 400K nits ultra-luminous Front-lit LCoS Microdisplay, Himax is actively engaged in significant projects through strategic collaborations with industry leaders. Himax’s proven track record of over a decade in LCoS technology, coupled with a history of successful production shipments, highlights Company’s readiness to meet the demands of large-scale production of AR glasses.

First Quarter 2025 Guidance
Net Revenue:	Decrease 8.5% to 12.5% QoQ, Flat to Up 4.6% YoY
Gross Margin:	Around 30.5%, depending on final product mix
Profit:	9.0 cents to 11.0 cents per diluted ADS, Up 26% to 54% YoY

Himax noticed that some peers’ customers placed orders early due to tariff factors, especially in the consumer electronics sector, resulting in Q1 revenue forecasts exceeding normal seasonal demand. In contrast, no similar trend has been observed in the automotive semiconductor market. Since Himax’s automotive business accounts for more than half of its total revenues, Himax’s Q1 revenue forecast has not benefited from tariff factors.

HIMAX TECHNOLOGIES FOURTH QUARTER AND FULL YEAR 2024 EARNINGS CONFERENCE CALL
DATE:	Thursday, February 13, 2025
TIME:	U.S. 8:00 a.m. EST Taiwan 9:00 p.m.

Live Webcast (Video and Audio): http://www.zucast.com/webcast/br8wqbB4 Toll Free Dial-in Number (Audio Only):
	Hong Kong 2112-1444 Taiwan 0080-119-6666 Australia 1-800-015-763 Canada 1-877-252-8508 China (1) 4008-423-888 China (2) 4006-786-286 Singapore 800-492-2072 UK 0800-068-8186 United States (1) 1-800-811-0860 United States (2) 1-866-212-5567
Dial-in Number (Audio Only):
	Taiwan Domestic Access 02-3396-1191 International Access +886-2-3396-1191
Participant PIN Code: 3329013 #

If you choose to attend the call by dialing in via phone, please enter the Participant PIN Code 3329013 # after the call is connected. A replay of the webcast will be available beginning two hours after the call on www.himax.com.tw. This webcast can be accessed by clicking on this link or Himax’s website, where it will remain available until February 13, 2026.

About Himax Technologies, Inc.
Himax Technologies, Inc. (NASDAQ: HIMX) is a leading global fabless semiconductor solution provider dedicated to display imaging processing technologies. The Company’s display driver ICs and timing controllers have been adopted at scale across multiple industries worldwide including TVs, PC monitors, laptops, mobile phones, tablets, automotive, ePaper devices, industrial displays, among others. As the global market share leader in automotive display technology, the Company offers innovative and comprehensive automotive IC solutions, including traditional driver ICs, advanced in-cell Touch and Display Driver Integration (TDDI), local dimming timing controllers (Local Dimming Tcon), Large Touch and Display Driver Integration (LTDI) and OLED display technologies. Himax is also a pioneer in tinyML visual-AI and optical technology related fields. The Company’s industry-leading WiseEye™ Ultralow Power AI Sensing technology which incorporates Himax proprietary ultralow power AI processor, always-on CMOS image sensor, and CNN-based AI algorithm has been widely deployed in consumer electronics and AIoT related applications. Himax optics technologies, such as diffractive wafer level optics, LCoS microdisplays and 3D sensing solutions, are critical for facilitating emerging AR/VR/metaverse technologies. Additionally, Himax designs and provides touch controllers, OLED ICs, LED ICs, EPD ICs, power management ICs, and CMOS image sensors for diverse display application coverage. Founded in 2001 and headquartered in Tainan, Taiwan, Himax currently employs around 2,200 people from three Taiwan-based offices in Tainan, Hsinchu and Taipei and country offices in China, Korea, Japan, Germany, and the US. Himax has 2,649 patents granted and 402 patents pending approval worldwide as of December 31, 2024.

http://www.himax.com.tw

Forward Looking Statements

Factors that could cause actual events or results to differ materially from those described in this conference call include, but are not limited to, the effect of the Covid-19 pandemic on the Company’s business; general business and economic conditions and the state of the semiconductor industry; market acceptance and competitiveness of the driver and non-driver products developed by the Company; demand for end-use applications products; reliance on a small group of principal customers; the uncertainty of continued success in technological innovations; our ability to develop and protect our intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns; changes in estimated full-year effective tax rate; shortage in supply of key components; changes in environmental laws and regulations; changes in export license regulated by Export Administration Regulations (EAR); exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; our ability to collect accounts receivable and manage inventory and other risks described from time to time in the Company’s SEC filings, including those risks identified in the section entitled “Risk Factors” in its Form 20-F for the year ended December 31, 2023 filed with the SEC, as may be amended.

Company Contacts:

Eric Li, Chief IR/PR Officer
Himax Technologies, Inc.
Tel: +886-6-505-0880
Fax: +886-2-2314-0877
Email: hx_ir@himax.com.tw
www.himax.com.tw

Karen Tiao, Investor Relations
Himax Technologies, Inc.
Tel: +886-2-2370-3999
Fax: +886-2-2314-0877
Email: hx_ir@himax.com.tw
www.himax.com.tw

Mark Schwalenberg, Director
Investor Relations – US Representative
MZ North America
Tel: +1-312-261-6430
Email: HIMX@mzgroup.us
www.mzgroup.us

-Financial Tables-

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Profit or Loss
(These interim financials do not fully comply with IFRS because they omit all interim disclosure required by IFRS)
(Amounts in Thousands of U.S. Dollars, Except Share and Per Share Data)
	Three Months Ended December 31,						3 Months Ended September 30,
		2024			2023			2024

Revenues
Revenues from third parties, net	$	237,182		$	227,664		$	222,401
Revenues from related parties, net		41			14			6
		237,223			227,678			222,407

Costs and expenses:
Cost of revenues		164,963			158,669			155,795
Research and development		37,584			41,088			46,880
General and administrative		5,711			5,831			6,828
Sales and marketing		5,886			5,409			7,048
Total costs and expenses		214,144			210,997			216,551

Operating income		23,079			16,681			5,856

Non operating income (loss):
Interest income		2,042			1,934			2,297
Changes in fair value of financial assets at fair value through profit or loss		1,245			1,710			27
Foreign currency exchange gains (losses), net		690			(1,525	)		457
Finance costs		(964	)		(1,140	)		(1,018	)
Share of losses of associates		(360	)		(14	)		(143	)
Other losses		–			(1,932	)		–
Other income (losses)		60			(362	)		105
		2,713			(1,329	)		1,725
Profit before income taxes		25,792			15,352			7,581
Income tax expense (benefit)		761			(7,933	)		(5,174	)
Profit for the period		25,031			23,285			12,755
Loss (profit) attributable to noncontrolling interests		(423	)		280			268
Profit attributable to Himax Technologies, Inc. stockholders	$	24,608		$	23,565		$	13,023

Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders	$	0.141		$	0.135		$	0.075
Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders	$	0.140		$	0.135		$	0.074

Basic Weighted Average Outstanding ADS		175,008			174,724			174,727
Diluted Weighted Average Outstanding ADS		175,146			174,979			174,987

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Profit or Loss
(Amounts in Thousands of U.S. Dollars, Except Share and Per Share Data)

	Twelve Months Ended December 31,
		2024			2023

Revenues
Revenues from third parties, net	$	906,737		$	945,309
Revenues from related parties, net		65			119
		906,802			945,428

Costs and expenses:
Cost of revenues		630,601			681,931
Research and development		160,329			171,392
General and administrative		24,121			25,037
Sales and marketing		23,530			23,856
Total costs and expenses		838,581			902,216

Operating income		68,221			43,212

Non operating income (loss):
Interest income		9,907			8,746
Changes in fair value of financial assets at fair value through profit or loss		1,363			1,655
Foreign currency exchange gains (losses), net		2,491			(768	)
Finance costs		(4,014	)		(6,080	)
Share of losses of associates		(831	)		(598	)
Other losses		–			(1,932	)
Other income		198			158
		9,114			1,181
Profit before income taxes		77,335			44,393
Income tax benefit		(2,435	)		(5,028	)
Profit for the period		79,770			49,421
Loss (profit) attributable to noncontrolling interests		(15	)		1,195
Profit attributable to Himax Technologies, Inc. stockholders	$	79,755		$	50,616

Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders	$	0.456		$	0.290
Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders	$	0.456		$	0.290

Basic Weighted Average Outstanding ADS		174,796			174,495
Diluted Weighted Average Outstanding ADS		175,014			174,783

Himax Technologies, Inc.
IFRS Unaudited Condensed Consolidated Statements of Financial Position
(Amounts in Thousands of U.S. Dollars)

	December 31, 2024			December 31, 2023			September 30, 2024
Assets
Current assets:
Cash and cash equivalents	$	218,148		$	191,749		$	194,139
Financial assets at amortized cost		4,286			12,511			12,335
Financial assets at fair value through profit or loss		2,140			2,117			–
Accounts receivable, net (including related parties)		236,813			235,829			224,589
Inventories		158,746			217,308			192,458
Income taxes receivable		726			1,454			986
Restricted deposit		503,700			453,000			503,700
Other receivable from related parties		13			69			22
Other current assets		43,471			86,548			42,581
Total current assets		1,168,043			1,200,585			1,170,810
Financial assets at fair value through profit or loss		23,554			21,650			26,383
Financial assets at fair value through other comprehensive income		28,226			1,635			22,457
Equity method investments		8,571			3,490			2,945
Property, plant and equipment, net		121,280			130,109			122,333
Deferred tax assets		21,193			14,196			13,806
Goodwill		28,138			28,138			28,138
Other intangible assets, net		636			816			717
Restricted deposit		31			32			31
Refundable deposits		221,824			222,025			221,879
Other non-current assets		18,025			20,728			18,484
		471,478			442,819			457,173
Total assets	$	1,639,521		$	1,643,404		$	1,627,983
Liabilities and Equity
Current liabilities:
Current portion of long-term unsecured borrowings	$	6,000		$	6,000		$	6,000
Short-term secured borrowings		503,700			453,000			503,700
Accounts payable (including related parties)		113,203			107,342			121,384
Income taxes payable		9,514			15,309			2,324
Other payable to related parties		–			110			–
Contract liabilities-current		10,622			17,751			25,694
Other current liabilities		63,595			109,291			54,673
Total current liabilities		706,634			708,803			713,775
Long-term unsecured borrowings		28,500			34,500			30,000
Deferred tax liabilities		564			520			505
Other non-current liabilities		7,496			35,879			11,361
		36,560			70,899			41,866
Total liabilities		743,194			779,702			755,641
Equity
Ordinary shares		107,010			107,010			107,010
Additional paid-in capital		115,376			114,648			115,285
Treasury shares		(5,546	)		(5,157	)		(4,714	)
Accumulated other comprehensive income		8,621			(180	)		3,507
Retained earnings		664,600			640,447			644,596
Equity attributable to owners of Himax Technologies, Inc.		890,061			856,768			865,684
Noncontrolling interests		6,266			6,934			6,658
Total equity		896,327			863,702			872,342
Total liabilities and equity	$	1,639,521		$	1,643,404		$	1,627,983

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
	Three Months Ended December 31,						Three Months Ended September 30,
		2024			2023			2024

Cash flows from operating activities:
Profit for the period	$	25,031		$	23,285		$	12,755
Adjustments for:
Depreciation and amortization		5,564			5,115			5,640
Share-based compensation expenses		103			346			407
Losses (gains) on disposals of property, plant and equipment, net		4			(368	)		–
Loss on re-measurement of the pre-existing relationships in a business combination		–			1,932			–
Changes in fair value of financial assets at fair value through profit or loss		(1,245	)		(1,710	)		(27	)
Interest income		(2,042	)		(1,934	)		(2,297	)
Finance costs		964			1,140			1,018
Income tax expense (benefit)		761			(7,933	)		(5,174	)
Share of losses of associates		360			14			143
Inventories write downs		4,037			5,727			2,269
Unrealized foreign currency exchange losses (gains)		(159	)		1,517			228
		33,378			27,131			14,962
Changes in:
Accounts receivable (including related parties)		(27,302	)		8,163			8,548
Inventories		29,675			36,580			8,964
Other receivable from related parties		9			(29	)		33
Other current assets		2,502			(5,682	)		(778	)
Accounts payable (including related parties)		(7,706	)		(627	)		(26,101	)
Other payable to related parties		1			363			(102	)
Contract liabilities		6			(958	)		667
Other current liabilities		2,508			3,014			(4,161	)
Other non-current liabilities		71			393			(3,354	)
Cash generated from operating activities		33,142			68,348			(1,322	)
Interest received		3,513			2,665			860
Interest paid		(1,047	)		(1,140	)		(1,018	)
Income tax paid		(191	)		(1,131	)		(1,658	)
Net cash provided by (used in) operating activities		35,417			68,742			(3,138	)

Cash flows from investing activities:
Acquisitions of property, plant and equipment		(3,222	)		(15,052	)		(2,551	)
Proceeds from disposal of property, plant and equipment		–			111			–
Acquisitions of intangible assets		–			(40	)		(9	)
Acquisitions of financial assets at amortized cost		(2,286	)		(4,573	)		(1,500	)
Proceeds from disposal of financial assets at amortized cost		10,289			784			617
Acquisitions of financial assets at fair value through profit or loss		(6,807	)		(5,375	)		(27,934	)
Proceeds from disposal of financial assets at fair value through profit or loss		3,722			1,645			33,036
Acquisitions of financial assets at fair value through other comprehensive income		–			(1,379	)		–
Proceeds from disposal of financial assets at fair value through other comprehensive income		–			99			–
Acquisition of a subsidiary, net of cash acquired (paid)		(5,416	)		433			–
Proceeds from capital reduction of investment		338			360			–
Acquisitions of equity method investment		(1,236	)		–			–
Decrease (increase) in refundable deposits		(8	)		–			11,339
Net cash provided by (used in) investing activities		(4,626	)		(22,987	)		12,998

Cash flows from financing activities:
Purchase of treasury shares		(832	)		–			–
Prepayments for purchase of treasury shares		(2,168	)		–			–
Payments of cash dividends		–			–			(50,670	)
Payments of dividend equivalents		–			–			(233	)
Proceeds from issuance of new shares by subsidiaries		–			916			–
Purchases of subsidiaries shares from noncontrolling interests		–			(9	)		–
Proceeds from short-term unsecured borrowings		–			36,932			–
Repayments of short-term unsecured borrowings		–			(37,226	)		–
Repayments of long-term unsecured borrowings		(1,500	)		(1,500	)		(1,500	)
Proceeds from short-term secured borrowings		461,400			427,100			522,600
Repayments of short-term secured borrowings		(461,400	)		(427,100	)		(471,900	)
Pledge of restricted deposit		–			–			(50,700	)
Payment of lease liabilities		(1,340	)		(1,244	)		(979	)
Guarantee deposits received (refunded)		219			(5	)		–
Net cash used in financing activities		(5,621	)		(2,136	)		(53,382	)
Effect of foreign currency exchange rate changes on cash and cash equivalents		(1,161	)		873			985
Net increase (decrease) in cash and cash equivalents		24,009			44,492			(42,537	)
Cash and cash equivalents at beginning of period		194,139			147,257			236,676
Cash and cash equivalents at end of period	$	218,148		$	191,749		$	194,139

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
	Twelve Months Ended December 31,
		2024			2023

Cash flows from operating activities:
Profit for the period	$	79,770		$	49,421
Adjustments for:
Depreciation and amortization		22,354			20,322
Share-based compensation expenses		1,247			2,663
Losses (gains) on disposals of property, plant and equipment, net		4			(368	)
Loss on re-measurement of the pre-existing relationships in a business combination		–			1,932
Changes in fair value of financial assets at fair value through profit or loss		(1,363	)		(1,655	)
Interest income		(9,907	)		(8,746	)
Finance costs		4,014			6,080
Income tax benefit		(2,435	)		(5,028	)
Share of losses of associates		831			598
Inventories write downs		13,551			21,540
Unrealized foreign currency exchange losses (gains)		(171	)		624
		107,895			87,383
Changes in:
Accounts receivable (including related parties)		(40,738	)		20,804
Inventories		45,011			132,090
Other receivable from related parties		56			5
Other current assets		3,941			(3,863	)
Accounts payable (including related parties)		14,567			7,676
Other payable to related parties		(110	)		(268	)
Contract liabilities		45			(37,051	)
Other current liabilities		(9,010	)		1,246
Other non-current liabilities		(2,260	)		(4,602	)
Cash generated from operating activities		119,397			203,420
Interest received		9,732			8,567
Interest paid		(4,015	)		(6,080	)
Income tax paid		(9,138	)		(53,066	)
Net cash provided by operating activities		115,976			152,841

Cash flows from investing activities:
Acquisitions of property, plant and equipment		(13,054	)		(23,378	)
Proceeds from disposal of property, plant and equipment		–			111
Acquisitions of intangible assets		(153	)		(115	)
Acquisitions of financial assets at amortized cost		(11,236	)		(6,911	)
Proceeds from disposal of financial assets at amortized cost		19,457			3,099
Acquisitions of financial assets at fair value through profit or loss		(76,003	)		(82,628	)
Proceeds from disposal of financial assets at fair value through profit or loss		70,389			75,539
Acquisitions of financial assets at fair value through other comprehensive income		(17,164	)		(1,379	)
Proceeds from disposal of financial assets at fair value through other comprehensive income		–			99
Acquisition of a subsidiary, net of cash acquired (paid)		(5,416	)		433
Proceeds from capital reduction of investment		338			360
Acquisitions of equity method investment		(1,236	)		–
Decrease (increase) in refundable deposits		33,562			(56,933	)
Cash received in advance from disposal of land		–			2,821
Net cash used in investing activities		(516	)		(88,882	)

Cash flows from financing activities:
Purchase of treasury shares		(832	)		–
Prepayments for purchase of treasury shares		(2,168	)		–
Payments of cash dividends		(50,670	)		(83,720	)
Payments of dividend equivalents		(233	)		(148	)
Proceeds from issuance of new shares by subsidiary		71			916
Purchases of subsidiaries shares from noncontrolling interests		(190	)		(9	)
Proceeds from short-term unsecured borrowings		–			47,226
Repayments of short-term unsecured borrowings		–			(47,226	)
Repayments of long-term unsecured borrowings		(6,000	)		(6,000	)
Proceeds from short-term secured borrowings		1,780,300			1,383,300
Repayments of short-term secured borrowings		(1,729,600	)		(1,299,600	)
Pledge of restricted deposit		(50,700	)		(83,700	)
Payment of lease liabilities		(5,032	)		(4,830	)
Guarantee deposits received (refunded)		(23,163	)		200
Net cash used in financing activities		(88,217	)		(93,591	)
Effect of foreign currency exchange rate changes on cash and cash equivalents		(844	)		(200	)
Net increase (decrease) in cash and cash equivalents		26,399			(29,832	)
Cash and cash equivalents at beginning of period		191,749			221,581
Cash and cash equivalents at end of period	$	218,148		$	191,749

The MIL Network –

February 13, 2025

MIL-OSI: Valeura Energy Inc.: Record Reserves and Resources at Year-End 2024: 2P Reserves Replacement Ratio of 245%

Source: GlobeNewswire (MIL-OSI)

SINGAPORE, Feb. 13, 2025 (GLOBE NEWSWIRE) — Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) (“Valeura” or the “Company”) is pleased to announce the results of its third-party independent reserves and resources assessment as at year-end 2024.

Highlights

Record high year-end reserves: 32 MMbbl proved (1P), 50 MMbbl proved plus probable (2P) and 60 MMbbl proved plus probable plus possible (3P) reserves;
2P reserves replacement ratio of 245% even after annual production increase of 12%;
2P reserves and end of field life (“EOFL”) increased at every field;
2P reserves net present value before tax of US$934 million and US$752 million after tax⁽¹⁾;
Considering year-end 2024 cash position of US$259 million, Company net asset value (“NAV”) is US$1,012 million, equating C$13.6 per common share⁽²⁾;
Contingent resources⁽³⁾ of 48 MMbbl, more than double the total at end 2023; and
Decommissioning costs significantly reduced through engineering studies and increased EOFL to beyond 2030.

⁽¹⁾	^{Discounted at 10% (NPV₁₀)}
⁽²⁾	^{Proved plus probable (2P) NPV₁₀after tax plus cash of US$259.4 million (no debt), using US$/C$ exchange rate of 1.435, and 106.65 million common shares outstanding, as at December 31, 2024}
⁽³⁾	^{Unrisked 2C (best estimate) contingent resources}

Dr. Sean Guest, President and CEO commented:

“I am pleased to announce the results of our end 2024 reserves and resources evaluation, which shows again that our aggressive work programme can increase the ultimate potential of our fields and add value to our Company. In our second full year of operations we have again added more than double the reserves we produced, achieving a 2P reserves replacement ratio of 245%. This is a significant feat, considering we also increased production by 12% relative to 2023.

We also added to the ultimate potential of our portfolio, with all Thailand fields now having an economic field life lasting beyond 2030. Since taking over these assets, we have added at least four additional years of production life to each field. This means more years of future cash flow and is therefore a prime example of one key element of our strategy in action – driving further organic growth.

The net asset value of our business is now over US$1 billion – a record high, equating to more than C$13.6 per common share. This is based on our 2P after tax NPV₁₀increasing by 76% year-on-year, coupled with a new record year-end cash position.

In addition to discovering volumes through the drill bit and aggressively working to build our understanding of the intricate subsurface environment, various other financial and engineering studies have also added value. Our field abandonment costs have been reduced further through updated engineering studies which are benchmarked to actual abandonment operations in the Gulf of Thailand. The effect of this, combined with extended field life across the portfolio, is expected to reduce our Asset Retirement Obligation (“ARO”) on our balance sheet by more than 50% since we first assumed operatorship of these assets.

We are relentless in our pursuit of value and we remain focussed on allocating capital efficiently. Moreover, we see exciting reserves-adding opportunities ahead through the potential Wassana field redevelopment, as well as through ongoing infill development and appraisal drilling across the portfolio, and the selective exploration targets we will pursue this year.

At the same time, inorganic growth remains a key part of our strategy, and we are actively evaluating several opportunities to assess fit with our strict screening criteria.”

Valeura commissioned Netherland, Sewell & Associates, Inc. (“NSAI”) to assess reserves and resources for all of its Thailand assets as of December 31, 2024. NSAI’s evaluation is presented in a report dated February 13, 2025 (the “NSAI 2024 Report”). This follows previous evaluations conducted by the same firm for December 31, 2023 (the “NSAI 2023 Report”) and December 31, 2022 (the “NSAI 2022 Report”).

Oil and Gas Reserves by Field Based on Forecast Prices and Costs

		Gross (Before Royalties) Reserves, Working Interest Share (Mbbl)
Reserves by Field		Jasmine (Light/Medium)	Manora (Light/Medium)	Nong Yao (Light/Medium)	Wassana (Heavy)	Total
Proved	Producing Developed	5,268	1,370	6,541	2,894	16,073
	Non-Producing Developed	703	433	153	242	1,531
	Undeveloped	4,713	705	3,742	5,490	14,650
Total Proved (1P)		10,684	2,509	10,436	8,626	32,255
Total Probable (P2)		6,108	848	6,500	4,297	17,753
Total Proved + Probable (2P)		16,792	3,357	16,936	12,923	50,008
Total Possible (P3)		3,647	718	4,297	1,027	9,689
Total Proved + Probable + Possible (3P)		20,440	4,075	21,233	13,950	59,697

Summary of Reserves Replacement, Value, and Field Life

As compared to the NSAI 2023 Report, the NSAI 2024 Report indicates an addition of 2.4 MMbbl of proved (1P) reserves and 12.1 MMbbl of proved plus probable (2P) reserves, after having produced 8.4 MMbbl of oil in 2024. This reflects a 1P reserves replacement ratio of 128% and a 2P reserves replacement ratio of 245%.

Based on the mid-point of the Company’s 2025 production guidance of 23.0 – 25.5 Mbbl/d (24.25 Mbbl/d), on a 2P reserves basis as of December 31, 2024, the Company estimates its reserves life index (“RLI”) to be approximately 5.6 years. Using the same 2025 production estimate and 2P reserves as of December 31, 2023 and December 31, 2022, the RLI was approximately 4.3, and 3.3 years, respectively.

The net present value of estimated future revenue after income taxes, based on a 10% discount rate has increased between the NSAI 2023 Report and the NSAI 2024 Report from US$193.9 million to US$358.6 million on a 1P basis, an increase of 85%. On a 2P basis, the net present value of estimated future revenue after income taxes, based on a 10% discount rate has increased from US$428.5 million to US$752.2 million, an increase of 76%.

The Company estimates that, based on the 2P net present value of estimated future revenue after income taxes in the NSAI 2024 Report, based on a 10% discount rate, plus the Company’s 2024 year-end cash position of US$259.4 million, as disclosed on January 8, 2025, the Company has a 2P net asset value (“NAV”) of US$1,011.6 million. Using the year-end count of common shares outstanding (being 106.65 million) and foreign exchange rates, Valeura’s NAV equates to approximately C$13.6/share.

	1P NPV₁₀		2P NPV₁₀		3P NPV₁₀
	Before Tax	After Tax	Before Tax	After Tax	Before Tax	After Tax
NPV₁₀(US$ million)	360.7	358.6	933.9	752.2	1,339.1	990.2
Cash at December 31, 2024 (US$ million)⁽¹⁾	259.4	259.4	259.4	259.4	259.4	259.4
Net Asset Value (US$ million)	620.1	618.0	1,193.3	1,011.6	1,598.5	1,249.6
Common shares (million)⁽²⁾	106.65	106.65	106.65	106.65	106.65	106.65
Estimated NAV per basic share (C$ per share)⁽³⁾	8.3	8.3	16.1	13.6	21.5	16.8

⁽¹⁾	^{Cash at December 31, 2024 of US$259.4 million, debt nil}
⁽²⁾	^{Issued and outstanding common shares as of December 31, 2024}
⁽³⁾	^{US$/C$ exchange rate of 1.435 as at December 31, 2024}

The NSAI 2024 Report indicates a further extension in the anticipated end of field life for all assets in Valeura’s Thailand portfolio, as compared to the NSAI 2023 Report.

	Gross (Before Royalties) 2P Reserves, Working Interest Share							End of Field Life		2P NPV₁₀After Tax (US$ million)
Fields	December 31, 2023 (MMbbl)	2024 Production (MMbbl)		Additions (MMbbl)	December 31, 2024 (MMbbl)	Reserves Replacement Ratio (%)		NSAI 2023 Report	NSAI 2024 Report	December 31, 2023	December 31, 2024
Jasmine	10.4	(2.9	)	9.2	16.8	324	%	Dec 2028	Aug 2031	81.8	163.9
Manora	2.2	(0.9	)	2.1	3.4	223	%	Jul 2027	Apr 2030	21.2	45.7
Nong Yao	12.4	(3.1	)	7.7	16.9	245	%	Dec 2028	Dec 2033	185.6	416.1
Wassana	12.9	(1.4	)	1.5	12.9	102	%	Jun 2032	Dec 2035	139.9	126.6
Total	37.9	(8.4	)	20.5	50.0	245	%			428.5	752.2

Valeura has demonstrated two consecutive years of growth in both aggregate 2P reserves and the associated after-tax 2P NPV₁₀ value.

	Gross (Before Royalties) 2P Reserves, Working Interest Share (MMbbl)			2P NPV₁₀After Tax (US$ million)
Fields	December 31, 2022	December 31, 2023	December 31, 2024	December 31, 2022	December 31, 2023	December 31, 2024
Jasmine	10.0	10.4	16.8	37.1	81.8	163.9
Manora	1.8	2.2	3.4	12.1	21.2	45.7
Nong Yao	11.2	12.4	16.9	145.5	185.6	416.1
Wassana	6.1	12.9	12.9	66.3	139.9	126.6
Total	29.1	37.9	50.0	261.0	428.5	752.2

The NSAI 2024 Report does not assume a new redevelopment concept for the Wassana field and therefore does not include potential upside volumes associated with the Company’s contemplated redevelopment. Valeura is targeting readiness for a final investment decision (“FID”) in early Q2 2025. Should the Company opt to proceed with the redevelopment, management anticipates a higher production profile, with longer field life than is currently reflected in the NSAI 2024 Report.

Net Present Values of Future Net Revenue Based on Forecast Prices and Costs

Net present values of future net revenue from oil reserves are based on cost estimates as of the date of the NSAI 2024 Report, and forecast Brent crude oil reference prices of US$75.58, US$78.51, US$79.89, US$81.82, and US$83.46 per bbl for the years ending December 31, 2025, 2026, 2027, 2028, and 2029, respectively, with 2% escalation thereafter. NSAI assumes cost inflation of 2% per annum. Price realisation forecasts for each field are based on the Brent crude oil reference prices above, and adjusted for oil quality, and market differentials.

Based on Valeura’s revised corporate structure, as modified by the reorganisation completed in November 2024, values estimated by NSAI assume a combined, single tax filing for all of the Company’s Thai III fiscal concessions, covering the Wassana, Nong Yao, and Manora fields. The Jasmine field, being a Thai I fiscal concession, is outside this scope.

All estimated costs associated with the eventual decommissioning of the Company’s fields are included as part of the calculation of future net revenue, specifically within the Proved Producing Developed category.

		Before Tax NPV₁₀(US$ million)
Future Net Revenue by Field		Jasmine	Manora	Nong Yao	Wassana	Total
Proved	Producing Developed	(124.7)	(27.6)	146.2	(160.7)	(166.8)
	Non-Producing Developed	35.3	27.9	7.0	16.2	86.4
	Undeveloped	93.6	7.9	108.1	231.5	441.0
Total Proved (1P)		4.2	8.2	261.3	87.0	360.7
Total Probable (P2)		217.4	39.1	204.5	112.3	573.3
Total Proved + Probable (2P)		221.5	47.3	465.8	199.3	933.9
Total Possible (P3)		168.8	29.6	150.7	56.1	405.1
Total Proved + Probable + Possible (3P)		390.3	76.9	616.5	255.4	1,339.1

		After Tax NPV₁₀(US$ million)
Future Net Revenue by Field		Jasmine	Manora	Nong Yao	Wassana	Total
Proved	Producing Developed	(131.4)	(27.6)	146.2	(160.7)	(173.4)
	Non-Producing Developed	33.9	27.9	7.0	16.2	85.1
	Undeveloped	99.6	7.9	108.1	231.5	447.0
Total Proved (1P)		2.1	8.2	261.3	87.0	358.6
Total Probable (P2)		161.8	37.4	154.8	39.6	393.6
Total Proved + Probable (2P)		163.9	45.7	416.1	126.6	752.2
Total Possible (P3)		96.7	20.4	93.3	27.6	238.0
Total Proved + Probable + Possible (3P)		260.6	66.1	509.3	154.2	990.2

Asset Retirement Obligations

During 2024, the Company conducted extensive engineering studies into the eventual decommissioning of its fields. These studies utilised costs benchmarked to current decommissioning activities underway elsewhere within the Gulf of Thailand. Valeura’s work since acquiring the assets in early 2023 has resulted in a reduction of 32% in the anticipated cost to decommission the assets (US$ real basis).

In addition, the significant extensions to the economic life of all of the Company’s fields means the timing for decommissioning expenditure has shifted further into the future. The combined effect is estimated to be a material reduction in the ARO liability to be shown on the Company’s balance sheet. While the final ARO is still to be reviewed by the Company’s auditor, management estimates that the ARO as at December 31, 2024 will have been reduced by approximately 35% from year-end 2023 and more than 50% relative to the Company’s first estimate upon assuming operatorship of the Thai portfolio in Q1 2023.

Resources

NSAI assessed the Company’s contingent resources of its Thailand assets for additional reservoir accumulations and reported estimates in the NSAI 2024 Report, the NSAI 2023 Report, and the NSAI 2022 Report. Contingent resources are heavy crude oil and light/medium crude oil, and are further divided into two subcategories, being Development Unclarified and Development Not Viable (see oil and gas advisories). Each subcategory is assigned a percentage risk, reflecting the estimated chance of development. Aggregate totals are provided below.

Contingent Resources	NSAI 2022 Report Gross (Before Royalties) Working Interest Share		NSAI 2023 Report Gross (Before Royalties) Working Interest Share		NSAI 2024 Report Gross (Before Royalties) Working Interest Share
Contingent Resources	Unrisked (MMbbl)	Risked (MMbbl)	Unrisked (MMbbl)	Risked (MMbbl)	Unrisked (MMbbl)	Risked (MMbbl)
Low Estimate (1C)	10.4	1.8	15.2	6.5	29.4	9.2
Best Estimate (2C)	14.1	2.5	19.9	8.9	48.4	13.5
High Estimate (3C)	22.1	3.9	27.9	11.6	72.1	18.0

Comparing the NSAI 2023 Report to the NSAI 2024 Report, the Company has recorded an increase in the best estimate (2C) unrisked contingent resources of 143%.

The Company last completed an independent assessment of its prospective resources in Türkiye, effective December 31, 2018, which is available under Valeura’s issuer profile on SEDAR+ at www.sedarplus.com. Valeura has no reserves or contingent resources associated with its properties in Türkiye.

Further Disclosure and Webcast
Valeura intends to disclose a summary of the NSAI 2024 Report to Thailand’s upstream regulator later in February 2025. Thereafter, the Company will publish its estimates of reserves and resources in accordance with the requirements of National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities along with its annual information form for the year ended December 31, 2025, on approximately March 26, 2025.

Valeura’s management team will host an investor and analyst webcast at 08:00 Calgary / 15:00 London / 22:00 Bangkok / 23:00 Singapore on Thursday, February 13, 2025 to discuss its reserves and contingent resources. Please register in advance via the link below.

Registration link: https://events.teams.microsoft.com/event/a527dbad-61ff-47b1-8330-a10c28cfd2ee@a196a1a0-4579-4a0c-b3a3-855f4db8f64b

As an alternative, an audio only feed of the event is available by phone using the Conference ID and dial-in numbers below.

Thailand: +66 2 026 9035,,817613646#
Singapore: +65 6450 6302,,817613646#
Canada: (833) 845-9589,,817613646#
Türkiye: 0800 142 034779,,817613646#
United States: (833) 846-5630,,817613646#
United Kingdom: 0800 640 3933,,817613646#

Phone conference ID: 817 613 646#

For further information, please contact:

Valeura Energy Inc. (General Corporate Enquiries) +65 6373 6940
Sean Guest, President and CEO
Yacine Ben-Meriem, CFO
Contact@valeuraenergy.com

Valeura Energy Inc. (Investor and Media Enquiries) +1 403 975 6752 / +44 7392 940495
Robin James Martin, Vice President, Communications and Investor Relations
IR@valeuraenergy.com

Contact details for the Company’s advisors, covering research analysts and joint brokers, including Auctus Advisors LLP, Canaccord Genuity Ltd (UK), Cormark Securities Inc., Research Capital Corporation, and Stifel Nicolaus Europe Limited, are listed on the Company’s website at www.valeuraenergy.com/investor-information/analysts/.

About the Company

Valeura Energy Inc. is a Canadian public company engaged in the exploration, development and production of petroleum and natural gas in Thailand and in Türkiye. The Company is pursuing a growth-oriented strategy and intends to re-invest into its producing asset portfolio and to deploy resources toward further organic and inorganic growth in Southeast Asia. Valeura aspires toward value accretive growth for stakeholders while adhering to high standards of environmental, social and governance responsibility.

Additional information relating to Valeura is also available on SEDAR+ at www.sedarplus.ca.

Oil and Gas Advisories

Reserves and contingent resources disclosed in this news release are based on an independent evaluation conducted by the incumbent independent petroleum engineering firm, NSAI with an effective date of December 31, 2024. The NSAI estimates of reserves and resources were prepared using guidelines outlined in the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities. The reserves and contingent resources estimates disclosed in this news release are estimates only and there is no guarantee that the estimated reserves and contingent resources will be recovered.

This news release contains a number of oil and gas metrics, including “NAV”, “reserves replacement ratio”, “RLI”, and “end of field life” which do not have standardised meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies. Such metrics are commonly used in the oil and gas industry and have been included herein to provide readers with additional measures to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods.

“NAV” is calculated by adding the estimated future net revenues based on a 10% discount rate to net cash, (which is comprised of cash less debt) as of December 31, 2024. NAV is expressed on a per share basis by dividing the total by basic common shares outstanding. NAV per share is not predictive and may not be reflective of current or future market prices for Valeura.

“Reserves replacement ratio” for 2024 is calculated by dividing the difference in reserves between the NSAI 2024 Report and the NSAI 2023 Report, plus actual 2024 production, by the assets’ total production before royalties for the calendar year 2024.

“RLI” is calculated by dividing reserves by management’s estimated total production before royalties for 2025.

“End of field life” is calculated by NSAI as the date at which the monthly net revenue generated by the field is equal to or less than the asset’s operating cost.

Reserves

Reserves are estimated remaining quantities of commercially recoverable oil, natural gas, and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical, and engineering data, the use of established technology, and specified economic conditions, which are generally accepted as being reasonable. Reserves are further categorised according to the level of certainty associated with the estimates and may be sub-classified based on development and production status.

Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

Developed reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g., when compared to the cost of drilling a well) to put the reserves on production.

Developed producing reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.

Developed non-producing reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown.

Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (e.g., when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they are assigned.

Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.

Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable plus possible reserves.

The estimated future net revenues disclosed in this news release do not necessarily represent the fair market value of the reserves associated therewith.

The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.

Contingent Resources

Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies are conditions that must be satisfied for a portion of contingent resources to be classified as reserves that are: (a) specific to the project being evaluated; and (b) expected to be resolved within a reasonable timeframe.

Contingent resources are further categorised according to the level of certainty associated with the estimates and may be sub‐classified based on a project maturity and/or characterised by their economic status. There are three classifications of contingent resources: low estimate, best estimate and high estimate. Best estimate is a classification of estimated resources described in the Canadian Oil and Gas Evaluation Handbook as the best estimate of the quantity that will be actually recovered; it is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability that the quantities actually recovered will equal or exceed the best estimate.

The project maturity subclasses include development pending, development on hold, development unclarified and development not viable. The contingent resources disclosed in this news release are classified as either development unclarified or development not viable.

Development unclarified is defined as a contingent resource that requires further appraisal to clarify the potential for development and has been assigned a lower chance of development until commercial considerations can be clearly defined. Chance of development is the likelihood that an accumulation will be commercially developed.

Conversion of the development unclarified resources referred to in this news release is dependent upon (1) the expected timetable for development; (2) the economics of the project; (3) the marketability of the oil and gas production; (4) the availability of infrastructure and technology; (5) the political, regulatory, and environmental conditions; (6) the project maturity and definition; (7) the availability of capital; and, ultimately, (8) the decision of joint venture partners to undertake development.

The major positive factor relevant to the estimate of the contingent development unclarified resources referred to in this news release is the successful discovery of resources encountered in appraisal and development wells within the existing fields. The major negative factors relevant to the estimate of the contingent development unclarified resources referred to in this news release are: (1) the outstanding requirement for a definitive development plan; (2) current economic conditions do not support the resource development; (3) limited field economic life to develop the resources; and (4) the outstanding requirement for a final investment decision and commitment of all joint venture partners.

Development not viable is defined as a contingent resource where no further data acquisition or evaluation is currently planned and hence there is a low chance of development, there is usually less than a reasonable chance of economics of development being positive in the foreseeable future. The major negative factors relevant to the estimate of development not viable referred to in this news release are: (1) current economic conditions do not support the resource development; and (2) availability of technical knowledge and technology within the industry to economically support resource development.

If these contingencies are successfully addressed, some portion of these contingent resources may be reclassified as reserves.

Of the best estimate 2C contingent resources estimated in the NSAI 2024 Report, on a risked basis: 74% of the estimated volumes are light/medium crude oil, with the remainder being heavy oil; 77% are categorised as Development Unclarified, with the remainder being Development Not Viable. Development Unclarified 2C resources have been assigned an average chance of development for the four fields ranging from 30% to 50% depending on oil type, while 2C Development Not Viable resources have been assigned an average chance of development ranging from 16% to 17%.

Resources Project Maturity Subclass	Light and Medium Crude Oil (Development Unclarified)				Chance of Development (%)
	Unrisked		Risked
	Gross (Mbbl)	Net (Mbbl)	Gross (Mbbl)	Net (Mbbl)
Contingent Low Estimate (1C) Development Unclarified	8,267	7,334	3,108	2,742	38	%
Contingent Best Estimate (2C) Development Unclarified	14,178	12,538	4,227	3,728	30	%
Contingent High Estimate (3C) Development Unclarified	21,072	18,644	5,289	4,673	25	%

Resources Project Maturity Subclass	Heavy Crude Oil (Development Unclarified)				Chance of Development (%)
	Unrisked		Risked
	Gross (Mbbl)	Net (Mbbl)	Gross (Mbbl)	Net (Mbbl)
Contingent Low Estimate (1C) Development Unclarified	7,807	7,358	4,045	3,813	52	%
Contingent Best Estimate (2C) Development Unclarified	10,641	10,029	5,325	5,018	50	%
Contingent High Estimate (3C) Development Unclarified	14,524	13,689	6,560	6,182	45	%

Resources Project Maturity Subclass	Light and Medium Crude Oil (Development Not Viable)				Chance of Development (%)
	Unrisked		Risked
	Gross (Mbbl)	Net (Mbbl)	Gross (Mbbl)	Net (Mbbl)
Contingent Low Estimate (1C) Development Not Viable	11,294	10,502	1,694	1,575	15	%
Contingent Best Estimate (2C) Development Not Viable	21,539	19,965	3,652	3,319	17	%
Contingent High Estimate (3C) Development Not Viable	33,503	30,964	5,363	4,802	16	%

Resources Project Maturity Subclass	Heavy Crude Oil (Development Not Viable)				Chance of Development (%)
	Unrisked		Risked
	Gross (Mbbl)	Net (Mbbl)	Gross (Mbbl)	Net (Mbbl)
Contingent Low Estimate (1C) Development Not Viable	2,069	1,950	310	293	15	%
Contingent Best Estimate (2C) Development Not Viable	2,091	1,971	341	321	16	%
Contingent High Estimate (3C) Development Not Viable	3,003	2,830	815	768	27	%

The NSAI estimates have been risked, using the chance of development, to account for the possibility that the contingencies are not successfully addressed. Due to the early stage of development for the development unclarified resources, NSAI did not perform an economic analysis of these resources; as such, the economic status of these resources is undetermined and there is uncertainty that any portion of the contingent resources disclosed in this new release will be commercially viable to produce.

Glossary

bbl barrels of oil
Mbbl thousand barrels of oil
MMbbl million barrels of oil

Advisory and Caution Regarding Forward-Looking Information

Certain information included in this news release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is for the purpose of explaining management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project”, “target” or similar words suggesting future outcomes or statements regarding an outlook.

Forward-looking information in this news release includes, but is not limited to, the Company’s belief that it has added to the ultimate potential of its portfolio; the anticipated economic life of its portfolio; expectations regarding future cash flow; the expectation that ARO on its December 31, 2024 balance sheet will indicate a reduction of approximately 35% versus December 31, 2023 and more than 50% since first assuming operatorship of its assets; business objectives and targets; organic and inorganic growth opportunities; the anticipated end of life for Valeura’s Thailand assets; the potential for adding reserves through the Wassana field redevelopment as well as through ongoing infill development, appraisal drilling, and exploration targets; statements related to the Company’s 2025 production guidance of 23.0 – 25.5 Mbbl/d; estimates of the Company’s RLI; timing for FID readiness on the potential Wassana field redevelopment; management’s anticipation of a higher production profile with longer field life from the Wassana field, should it opt to proceed with the redevelopment; forecast Brent crude oil reference prices; assumption of a single tax filing; estimated costs for the eventual decommissioning of its fields; the intention to disclose a summary of the NSAI 2024 Report to Thailand’s upstream regulator; the anticipated filing date of the Company’s annual information form along with its estimates of reserves and resources; and the timing of the investor and analyst webcast.

In addition, statements related to “reserves” and “resources” are deemed to be forward-looking information

as they involve the implied assessment, based on certain estimates and assumptions, that the resources can

be discovered and profitably produced in the future.

Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect.

Forward-looking information is based on management’s current expectations and assumptions regarding, among other things: political stability of the areas in which the Company is operating; continued safety of operations and ability to proceed in a timely manner; continued operations of and approvals forthcoming from governments and regulators in a manner consistent with past conduct; ability to achieve extensions to licences in Thailand and Türkiye to support attractive development and resource recovery; future drilling activity on the required/expected timelines; the prospectivity of the Company’s lands; the continued favourable pricing and operating netbacks across its business; future production rates and associated operating netbacks and cash flow; decline rates; future sources of funding; future economic conditions; the impact of inflation of future costs; future currency exchange rates; interest rates; the ability to meet drilling deadlines and fulfil commitments under licences and leases; future commodity prices; the impact of the Russian invasion of Ukraine; the impact of conflicts in the Middle East; royalty rates and taxes; management’s estimate of cumulative tax losses being correct; future capital and other expenditures; the success obtained in drilling new wells and working over existing wellbores; the performance of wells and facilities; the availability of the required capital to funds its exploration, development and other operations, and the ability of the Company to meet its commitments and financial obligations; the ability of the Company to secure adequate processing, transportation, fractionation and storage capacity on acceptable terms; the capacity and reliability of facilities; the application of regulatory requirements respecting abandonment and reclamation; the recoverability of the Company’s reserves and contingent resources; future growth; the sufficiency of budgeted capital expenditures in carrying out planned activities; the impact of increasing competition; the availability and identification of mergers and acquisition opportunities; the ability to successfully negotiate and complete any mergers and acquisition opportunities; the ability to efficiently integrate assets and employees acquired through acquisitions; global energy policies going forward; international trade policies; future debt levels; and the Company’s continued ability to obtain and retain qualified staff and equipment in a timely and cost efficient manner. In addition, the Company’s work programmes and budgets are in part based upon expected agreement among joint venture partners and associated exploration, development and marketing plans and anticipated costs and sales prices, which are subject to change based on, among other things, the actual results of drilling and related activity, availability of drilling, offshore storage and offloading facilities and other specialised oilfield equipment and service providers, changes in partners’ plans and unexpected delays and changes in market conditions. Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect.

Forward-looking information involves significant known and unknown risks and uncertainties. Exploration, appraisal, and development of oil and natural gas reserves and resources are speculative activities and involve a degree of risk. A number of factors could cause actual results to differ materially from those anticipated by the Company including, but not limited to: the ability of management to execute its business plan or realise anticipated benefits from acquisitions; the risk of disruptions from public health emergencies and/or pandemics; competition for specialised equipment and human resources; the Company’s ability to manage growth; the Company’s ability to manage the costs related to inflation; disruption in supply chains; the risk of currency fluctuations; changes in interest rates, oil and gas prices and netbacks; the risk that the Company’s tax advisors’ and/or auditors’ assessment of the Company’s cumulative tax losses varies significantly from management’s expectations of the same; potential changes in joint venture partner strategies and participation in work programmes; uncertainty regarding the contemplated timelines and costs for work programme execution; the risks of disruption to operations and access to worksites; potential changes in laws and regulations, including international treaties and trade policies; the uncertainty regarding government and other approvals; counterparty risk; the risk that financing may not be available; risks associated with weather delays and natural disasters; and the risk associated with international activity. See the most recent annual information form and management’s discussion and analysis of the Company for a detailed discussion of the risk factors.

Certain forward-looking information in this news release may also constitute “financial outlook” within the meaning of applicable securities legislation. Financial outlook involves statements about Valeura’s prospective financial performance or position and is based on and subject to the assumptions and risk factors described above in respect of forward-looking information generally as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this news release. Such assumptions are based on management’s assessment of the relevant information currently available, and any financial outlook included in this news release is made as of the date hereof and provided for the purpose of helping readers understand Valeura’s current expectations and plans for the future. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above or other factors may cause actual results to differ materially from any financial outlook.

The forward-looking information contained in this news release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction, including where such offer would be unlawful. This news release is not for distribution or release, directly or indirectly, in or into the United States, Ireland, the Republic of South Africa or Japan or any other jurisdiction in which its publication or distribution would be unlawful.

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

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

The MIL Network –

February 13, 2025

MIL-OSI USA: “He’s a Danger,” King Warns in Floor Speech Against RFK Jr. Nomination

US Senate News:

Source: United States Senator for Maine Angus King

WASHINGTON, D.C. — U.S. Senator Angus King (I-ME) tonight took to the floor of the Senate to share his concern over President Trump’s nomination of Robert F. Kennedy, Jr. to serve as the Secretary of Health and Human Services (HHS). In the speech, Senator King began his remarks by outlining the roles of Congress and the Presidency as America’s Founders envisioned: to make laws and to execute laws, respectively. He then turned to the HHS candidate, speaking to Kennedy’s lack of experience and qualifications needed to run a large-scale health organization, and pointed out Kennedy’s long held public opinions as hostile toward the mission of the agency. He also warned of Kennedy’s dangerous skepticism toward proven, life-saving vaccines, sharing a childhood memory of a classmate who had polio.

“Mr. President, I’d like to begin my remarks this afternoon by talking a little bit about the Constitution. I spent some time last week talking about the Constitution and our failure to observe that the Constitutional, fundamental structure of the division of power between the Congress and the Executive is being violated and the Congress is allowing it to happen. Another provision of the Constitution is the provision in Article I about advise and consent. It’s a fundamental check and balance built into the Constitution by the framers for a reason. It wasn’t a throw-away line or a few sentences that were put in because they wanted to fill the paragraph out. Again, it’s part of the structure that was designed to protect us from tyranny. And the structure involved the division of power, the separation of power because the framers knew that if all power was concentrated in a single individual or single institution, that institution or that individual would inevitably abuse our people. That’s human nature. That’s 1,000 years of human nature. All power corrupts and absolute power corrupts absolutely. So, the advise and consent provision was in the Constitution for a reason. It was in there for a reason, in order to provide a check on the executive and the people who were going to be put in charge of running the administration.

“By the way, I want to stop for a minute and focus on the word administration and the word executive, because it really goes to the discussion we’re having in this country right now about how our government is supposed to work. The executive comes from the word execute, and the word execute means put into action. It doesn’t mean initiate the action. It means put it into action. The same for the term administration. There’s a reason we call it the administration. They are to administer the laws. In fact, the obligation on the president in Article II is to see that the laws are faithfully executed. And it does not give the president the power to ignore laws or to decide which laws he or she thinks are okay, to ignore the responsibility and constitutional authority of the congress to define spending. It does not give the president that power. Although, the fellow we approved for Office of Management and Budget last week thinks he has that power. Or this President or any president has that power. That’s absolutely antithetical to the Constitution, as established by the framers. So, administration means administer the laws, executive means execute the laws, not make them. We make the laws here and the administration is to faithfully execute those laws.

“Now, let’s talk about advise and consent. Advise and consent means we have a responsibility — a Constitutional responsibility to consider each of the president’s nominees for these important jobs. This isn’t something that we may do or occasionally do. This is a fundamental part of our job. We take an oath when we come here to defend the Constitution against all enemies, foreign and domestic. I think it’s interesting — they knew in 1787 that there was a potential for domestic enemies to the Constitution. So we have an obligation to take advise and consent seriously.

“Now, I’m a former governor, as is the presiding officer. And as a former executive, I believe the executive should have the ability to choose the team that they want, to choose their advisors. To choose the people they will work with, with some limitations. In other words, I start with the premise of the person elected should perhaps get the benefit of the doubt is a little too strong, but I start with the premise that they were elected and they should be able to choose the team that they are going to be working with. However, I think there are two qualifications. This has been my stated position on this since I entered the Senate. Benefit of the doubt to the executive, however, the nominee must be manifestly qualified and not hostile to the mission of the agency to which they’ve had been appointed. Two criteria that for me give life to the idea of advise and consent.

“Okay, let’s talk about Robert F. Kennedy, Jr. He, unfortunately, checks both of the boxes as to being disqualified. Number one, he’s not remotely qualified to run an organization. He has no experience running anything remotely like the scope and scale of the Department of Health and Human Services. No executive experience in that sense. So that’s number one. Is he qualified? No. He’s grossly unqualified. But the second box is he hostile to the mission of the agency? And if the mission of the agency, HHS, is to protect the health of the American people, I would argue he is manifestly hostile to that mission. There’s been a lot of discussion here today and I think it’s interesting. I haven’t heard too many people come up on the floor and support this nominee and tell us why he should be approved because, you know what, Mr. President? If this were a secret ballot, this man wouldn’t get 20 votes. Everybody in this body knows he’s not qualified. Everybody in this body knows he has no business anywhere near this position. But here we are. We’re going to take a vote. Unfortunately, it will probably be on a party-line basis.

“But let me focus on just one little piece. On January 29, barely a week ago, before the Senate Finance Committee, here’s what Mr. Kennedy said. Quote, “news reports have claimed that I’m antivaccine or anti-industry. I am neither. I am pro-safety. All of my kids are vaccinated.” I bet that came as news to all of the folks he’s been leading astray over the last 25-30 years. I believe vaccines have a critical role in health care. I am reminded of Saul on the road to Damascus. A miraculous conversion. A bright light was shown and suddenly the scales fell from his eyes in his confirmation hearing. Okay, let’s go back a little over a year, July 6, 2023, this is a quote, a direct quote, “there is no vaccine that is safe and effective.” He later said, on the same podcast, ‘vaccines are inherently unsafe.’ Mr. President, this man shouldn’t be confirmed because he told the committee and the Senate something diametrically opposed to the position he’s taken the last 30 years, all of his adult life.

“Maya Angelou said, “If somebody tells you who they are, you should believe them.” And he’s told us repeatedly. And he has acted on his vaccine skepticism. This wasn’t something that was rumbling around in his head. He’s traveled the world. He’s written articles, gone on podcasts, gone on TV and he’s discouraged people from being vaccinated. And now he has this miraculous conversion 10 days ago. ‘All my kids are vaccinated. I believe vaccines have a critical role in health care.’ The same thing during COVID. He said, ‘it is criminal medical malpractice to give a child one of these vaccines.’ Wow, criminal malpractice. And of course it’s been discussed. He said I do believe that autism does come from vaccines. July of 2023 there was one study in England — I think it was in 1998 — that showed that — purported to show a tenuous convection between vaccines and — connection between vaccines and autism. I’m reasonably confident that one of the authors recanted. It was withdrawn and it’s been debunked over and over and over again, but this man has been peddling this lie for 20 years, and who knows how many parents have fallen for that on the one hand who knows how many children have paid the price. Just to talk about vaccines, at one point during the pandemic, there was a survey — July of 2021 — remember, that was the height of it — they surveyed 50 hospitals in 17 states. 94% of the patients hospitalized in July of 2021 were unvaccinated. What does that tell you? Vaccinations worked. And people who were unvaccinated were at enormously higher risk. 94% of the people were unvaccinated.

“In addition to the vaccination issue, this guy — this man doesn’t respect the FDA, the agency that was put in place to protect our health, to regulate us, to be sure that we’re getting safe medications, to deal with some of the awful problems of the potential of harmful medications literally getting into America’s bloodstream. In December of 2024, barely a couple months ago, he said he would fire officials at the FDA. And in October 2024 he said on X, ‘FDA’s war on public health is about to end. If you work for the FDA and are part of this corrupt work, two messages for you: prepare your records and pack your bags.’ He didn’t say a certain office in the FDA or a certain part of the FDA or maybe there was one provision, a part that he didn’t think was helpful. He said, if you work for the FDA, that’s everybody, preserve your records and pack your bags.

“This man is not only unqualified, he’s anti-qualified. He’s a danger. We have physicians in the Senate — I believe that the Hippocratic oath, do no harm, should apply to Senate votes. You should not be voting for somebody who you know is going to do harm to the public health. So this is really a kind of surreal debate because everybody in this chamber knows this man should not be Secretary of Health and Human Services.

“Now, I want to end with a personal story. One of the few advantages of being older is that you have a long memory. And in 1952 I was entering the third grade at Macarthur School in Alexander, Virginia. In my class was a kid named Butch. And he was horribly twisted into a wheelchair. I don’t think I’d ever seen a wheelchair when I was going into the third grade. He was there, and I’m not even going to say how many years later, but I can close my eyes and see Butch in that chair. Polio was what he had. He was in pain daily. He could barely make himself understood. His arms were crossed. His legs were bent grotesquely in the wheelchair. And three years later the Salk Vaccine began what turned out to be the elimination of Polio. Where would we be as a country if this man had been the head at that time it was HEW and somehow put a stop to this vaccine, which I believe he has said even the Polio vaccine should be rescinded, which has saved millions of lives around the world. Where would we be? I can’t escape the memory of that boy in that wheelchair. I can’t forget the memory of my parents not letting me go to the public swimming pool because of the fear of Polio. Not being able to go out in the summer and play because of the fear of Polio that stalked the land. The former Republican leader was a victim of Polio. Former President Franklin D. Roosevelt was a victim of Polio. It was the vaccine. And, Mr. President, I hope this place comes to its senses and rejects this surreal nomination. It would be probably be hard to find somebody less qualified to serve in this position. I believe that it will lead to damage to our country, to our health, to our children, and I urge my colleagues to vote no. If you vote yes, you’ll regret it. Thank you, Mr. President. I yield the floor.”

Senator King has been continuously sounding the alarm on President Donald Trump’s existential threat to the Constitution: he declared that the proposal to halt all federal grant and loan disbursement was illegal and a direct assault on the Constitution. More recently, he joined 36 Senators in a letter to Secretary of State Marco Rubio, sharing the detrimental effects of the Trump Administration’s dismantling of the U.S. Agency for International Development (USAID). He also joined fellow Senate Select Committee on Intelligence (SSCI) colleagues in writing a letter to the White House about the risks to national security by allowing unvetted Department of Government Efficiency (DOGE) staff and representatives to access classified and sensitive government materials. Last week, he spoke on the Senate floor to share his growing concerns over the Trump Administration’s largely unconstitutional and unprecedented overreach; in the speech he cited the Founding Fathers to add historical perspective to the decision facing the Senate, including the importance of the separation of powers.

MIL OSI USA News –

February 13, 2025
MIL-OSI USA: February 12th, 2025 Heinrich Delivers Floor Speech Opposing the Nomination of Robert F. Kennedy, Jr. for Health Secretary
US Senate News:
Source: United States Senator for New Mexico Martin Heinrich

VIDEO

WASHINGTON — This afternoon, U.S. Senator Martin Heinrich (D-N.M.) delivered remarks on the Senate floor amplifying the voices of New Mexicans opposing the nomination of Robert F. Kennedy, Jr. to be the U.S. Secretary for Health and Human Services.

“I hope all of my colleagues take seriously what it would mean to confirm this anti-vaccine, anti-science snake oil salesman as our next Secretary of Health and Human Services,” said Heinrich.

VIDEO: U.S. Senator Martin Heinrich (D-N.M.) delivers remarks on the Senator floor opposing the nomination of Robert F. Kennedy, Jr. for Health Secretary, February 12, 2025.

Heinrich began his remarks by recounting how Mr. Kennedy’s 2019 trip to the Pacific island of Samoa intensified vaccine skepticism and contributed to a deadly measles outbreak that killed 83 people, mostly children under five. Heinrich said: “As someone with a background in science, but more importantly, as a father of two, I am horrified by this story. Thanks to incredible scientific research and medical advances, we now have a vaccine that has proven to be safe and effective at protecting our kids and largely eradicated the measles outbreaks that used to result in the devastating loss of babies and young children. That is until anti-vaccine crusaders like Mr. Kennedy started promoting phony science and conspiracy theories in places like Samoa.”

Heinrich condemned Mr. Kennedy’s long track record of spreading fear, peddling misinformation, and promoting conspiracy theories: “Mr. Kennedy has repeatedly and falsely alleged that safe and effective vaccines for tetanus, the flu, COVID, and HPV are dangerous to human health. Mr. Kennedy has promoted the completely discredited conspiracy theory that vaccines lead to autism. At the height of the COVID-19 pandemic that led to more than one million deaths in the United States alone, Mr. Kennedy campaigned to end the nationwide vaccination effort that helped us save millions more lives. Mr. Kennedy has — again without any sound evidence — also pushed conspiracy theories claiming that antidepressant medications cause mass shootings and chemicals in our water make children gay. If those claims sound ludicrous, it’s because they are.”

Heinrich warned that, if he is confirmed to lead the U.S. Department of Health and Human Services, Mr. Kennedy has committed to following President Trump’s orders to further roll back women’s reproductive rights: “During his confirmation process, Mr. Kennedy also reportedly made commitments to my Republican colleagues to support restrictions on mifepristone, a medication abortion and miscarriage management drug. Mr. Kennedy has also signaled to Republican senators that he will go along with whatever President Trump wants to further roll back women’s reproductive rights.”

Heinrich also cautioned that Mr. Kennedy would help to enact President Trump and Elon Musk’s dangerous agenda to drastically cut federal funding for everything from New Mexicans’ Medicaid health coverage to medical research at the University of New Mexico. Heinrich warned: “The Department of Health and Human Services oversees health coverage programs that serve half of all Americans, including Medicare, Medicaid, and the Affordable Care Act. HHS also supports the medical research that helps us develop the next vaccines, prevent the next pandemic, and find cures to cancer and chronic diseases like diabetes. We have also already seen President Trump, Elon Musk, and his DOGE minions target scientific and medical research at agencies like the National Institutes of Health (NIH). Just last week, we saw them announce an estimated $4 billion cut for NIH health research at universities all across our country—including an estimated $17 million impact at the University of New Mexico alone.”

Heinrich finished his remarks by amplifying the concerns of New Mexicans who have written or called into his office expressing concern over Mr. Kennedy’s nomination. Watch a video of Heinrich uplifting New Mexicans’ voices here.

“I agree with these New Mexicans that Mr. Kennedy is unprepared, unqualified, and dangerously unfit to be confirmed as our next Health Secretary,” Heinrich concluded. “To protect our kids’ health from debunked conspiracy theories, to defend women’s reproductive rights, to safeguard the future of Medicare and Medicaid, and to continue lifesaving medical research and medical care in my state and across the country, I urge all of my colleagues to join me in voting NO on confirming Robert F. Kennedy Jr.”

Heinrich has been amplifying the voices of New Mexicans who have written or called into his office expressing concern over President Trump’s harmful actions and unqualified nominees.

Last night on the Senate floor, Heinrich uplifted New Mexicans’ concerns over Tulsi Gabbard’s nomination for the Director of National Intelligence. In his remarks, Heinrich emphasized the risk Gabbard’s nomination poses to our national security and discussed Ms. Gabbard’s lack of qualifications and judgment, particularly relating to her 2017 trip to Bashar al-Assad’s Syria. Heinrich zeroed in on Ms. Gabbard’s false denial during her confirmation hearing before the Senate Intelligence Committee about meeting with Ahmad Badreddin Hassoun, Syria’s most senior Sunni Muslim cleric during the Assad regime who made threats to conduct suicide bomb attacks in the United States.

Last week, Heinrich delivered remarks on the Senate floor amplifying the voices of New Mexicans opposing the nomination of Russell Vought to lead the Office of Management and Budget (OMB). Mr. Vought is the lead architect of the Heritage Foundation’s Project 2025, the policy blueprint for Donald Trump’s harmful agenda to throw the government into chaos and harm working families.

Last month, Heinrich delivered the longest speech of his career, where he slammed President Trump’s unlawful unilateral blockade of all federal grant funding. In his remarks, Heinrich uplifted stories from New Mexicans on how Trump’s federal funding freeze endangered New Mexicans and threatened communities across the state. Find the video of Heinrich sharing letters from New Mexicans on the Senate floor here.

Heinrich is leading Senate Democrats in sounding the alarm on Elon Musk and Donald Trump’s destructive actions that are wreaking havoc on Americans, weakening our economy, and threatening the livelihoods of New Mexicans.

Last week, in an interview with Jim Sciutto on CNN’s The Situation Room, Heinrich vocalized the concerns of his constituents who continue to write-in and call his office opposing Trump’s harmful actions, which are impacting New Mexico families and their financial security. Watch the full video of that interview here.

Since Trump took office in 2025, Heinrich:
- Introduced a resolution condemning Trump’s pardons of people found guilty of assaulting police officers on January 6.
- Led Senate Democrats in sounding the alarm on Elon Musk and Donald Trump’s destructive actions that are wreaking havoc on Americans, weakening our economy, and threatening the livelihoods of New Mexicans.
MIL OSI USA News –
February 13, 2025

MIL-OSI: Euronet Reports Record Results Across All Financial Metrics For The Fourth Quarter And Full Year 2024

Source: GlobeNewswire (MIL-OSI)

LEAWOOD, Kan., Feb. 12, 2025 (GLOBE NEWSWIRE) — Euronet (or the “Company”) (NASDAQ: EEFT), a global leader in payments processing and cross-border transactions, today announced fourth quarter and full year 2024 financial results.

Euronet reports the following consolidated results for the fourth quarter 2024 compared with the same period of 2023:

Revenues of $1,047.3 million, a 9% increase from $957.7 million (10% increase on a constant currency1 basis).
Operating income of $122.7 million, a 26% increase from $97.4 million (27% increase on a constant currency basis).
Adjusted operating income² of $122.7 million, a 23% increase from $99.9 million (24% increase on a constant currency basis).
Adjusted EBITDA³ of $165.8 million, a 12% increase from $147.6 million (13% increase on a constant currency basis).
Net income attributable to Euronet of $45.2 million, or $0.98 diluted earnings per share, compared with $69.3 million, or $1.43 diluted earnings per share.
Adjusted earnings per share⁴ of $2.08, a 10% increase from $1.88.
Euronet’s cash and cash equivalents were $1,278.8 million and ATM cash was $643.8 million, totaling $1,922.6 million as of December 31, 2024, and availability under its revolving credit facilities was approximately $1,335 million.

Euronet reports the following consolidated results for the full year 2024 compared with the same period of 2023:

Revenues of $3,989.8 million, an 8% increase from $3,688.0 million (9% increase on a constant currency basis).
Operating income of $503.2 million, a 16% increase from $432.6 million (18% increase on a constant currency basis).
Adjusted operating income of $502.8 million, a 16% increase from $432.1 million (18% increase on a constant currency basis).
Adjusted EBITDA of $678.5 million, a 10% increase from $618.7 million (11% increase on a constant currency basis).
Net income attributable to Euronet of $306.0 million, or $6.45 diluted earnings per share, compared with $279.7 million, or $5.50 diluted earnings per share.
Adjusted earnings per share of $8.61, a 15% increase from $7.46.

See the reconciliation of non-GAAP items in the attached financial schedules.

“I am pleased we delivered 15% growth in Adjusted EPS for the full year — at the top end of our range, driven by strong performance in all three segments. As we entered 2024, we told shareholders that we expected our Adjusted EPS to grow between 10% and 15%, and we would be driving to go through the range. Throughout the year our results increasingly demonstrated that it was likely we would perform at the upper end of that range. Now with these very good fourth quarter results, you can see we performed at the top of the range and even ahead of our historical 10- and 20-year CAGR rates. I would like to also point out that our 2024 adjusted EPS of $8.61 was adversely impacted by significant increases in interest and tax expense, but also benefited from share repurchases. With interest, taxes and share repurchases netting each other, you can see that the 15% increase in adjusted EPS was driven by the 16% increase in operating income made possible by strong revenue growth, scale and cost management. For the fourth quarter we delivered record adjusted EPS of $2.08, a 10% year-over-year increase as well as double-digit growth in operating income and adjusted EBITDA,” stated Michael J. Brown, Euronet’s Chairman and Chief Executive Officer. “EFT delivered double-digit growth across all metrics driven by international travel, growth in merchant acquiring business, fee increase opportunities, and expansion into new markets. Money Transfer produced strong fourth quarter results across all metrics including a 33% growth in digital transactions. In epay, our core business delivered strong results from continued digital branded payments and mobile growth.”

Adjusted operating income and adjusted EBITDA were adjusted for non-cash purchase accounting adjustments in the EFT Segment during the fourth quarter and full-year of 2023 and the full year of 2024 and a non-cash gain in the full year 2023.

Taking into consideration recent trends in the business and the global economy, the Company anticipates its 2025 adjusted EPS will grow 12% to 16% year-over-year, consistent with its 10 and 20 year compounded annualized growth rates. This outlook does not include any changes that may develop in foreign exchange rates, interest rates or other unforeseen factors.

Segment and Other Results

The EFT Processing Segment reports the following results for the fourth quarter 2024 compared with the same period or date in 2023:

Revenues of $265.6 million, a 12% increase from $237.9 million (13% increase on a constant currency basis).
Operating income of $37.3 million, a 46% increase from $25.5 million (48% increase on a constant currency basis).
Adjusted operating income of $37.3 million, a 33% increase from $28.0 million (35% increase on a constant currency basis).
Adjusted EBITDA of $61.7 million, an 18% increase from $52.2 million (19% increase on a constant currency basis).
Transactions of 3,203 million, a 35% increase from 2,369 million.
Total of 55,248 installed ATMs as of December 31, 2024, a 5% increase from 52,652 at December 31, 2023. Operated 49,945 active ATMs as of December 31, 2024, a 6% increase from 47,303 as of December 31, 2023.

The EFT Processing Segment reports the following results for the full year 2024 compared with the same period in 2023:

Revenues of $1,161.2 million, a 10% increase from $1,058.3 million (10% increase on a constant currency basis).
Operating income of $256.0 million, a 24% increase from $206.3 million (25% increase on a constant currency basis).
Adjusted operating income of $255.6 million, a 24% increase from $205.8 million (25% increase on a constant currency basis).
Adjusted EBITDA of $353.5 million, an 18% increase from $300.4 million (19% increase on a constant currency basis).
Transactions of 11,424 million, a 35% increase from 8,473 million.

Revenue, operating income, and adjusted EBITDA growth for both the fourth quarter and full year 2024 was driven by continued growth in transactions in nearly all markets, new market expansion, fee increase opportunities, cost management and growth in the merchant acquiring business with adjusted EBITDA doubling in the last two years.

The EFT Segment’s total installed ATMs at December 31, 2024 grew 5% over December 31, 2023 ATMs due to the net addition of 1,729 Euronet-owned ATMs, 773 new outsourcing ATMs and the addition of 94 low-margin ATMs in India. The difference between installed and active ATMs relates to ATMs that have been seasonally deactivated.

The epay Segment reports the following results for the fourth quarter 2024 compared with the same period or date in 2023:

Revenues of $342.2 million, an 8% increase from $316.7 million (10% increase on a constant currency basis).
Operating income of $48.0 million, a 10% increase from $43.6 million (12% increase on a constant currency basis).
Adjusted EBITDA of $49.9 million, a 10% increase from $45.4 million (12% increase on a constant currency basis).
Transactions of 1,185 million, a 31% increase from 906 million.
POS terminals of approximately 777,000 as of December 31, 2024, a 5% decrease from approximately 821,000.
Retailer locations of approximately 362,000 as of December 31, 2024, a 3% increase from approximately 352,000.

The epay Segment reports the following results for the full year 2024 compared with the same period in 2023:

Revenues of $1,150.5 million, a 6% increase from $1,082.4 million (7% increase on a constant currency basis).
Operating income of $129.9 million, a 3% increase from $126.2 million (4% increase on a constant currency basis).
Adjusted EBITDA of $137.2 million, a 3% increase from $133.1 million (4% increase on a constant currency basis).
Transactions of 4,374 million, a 15% increase from 3,789 million.

Fourth quarter and full year 2024 constant currency revenue, operating income and adjusted EBITDA growth was driven by continued expansion of digital branded payment and mobile sales.

The Money Transfer Segment reports the following results for the fourth quarter 2024 compared with the same period or date in 2023:

Revenues of $441.9 million, a 9% increase from $405.1 million (9% increase on a constant currency basis).
Operating income of $58.4 million, a 13% increase from $51.9 million (12% increase on a constant currency basis).
Adjusted EBITDA of $64.4 million, a 9% increase from $59.3 million (9% increase on a constant currency basis).
Total transactions of 46.9 million, an 11% increase from 42.4 million.
Network locations of approximately 607,000 as of December 31, 2024, a 5% increase from approximately 580,000.

The Money Transfer Segment reports the following results for the full year 2024 compared with the same period in 2023:

Revenues of $1,686.5 million, an 8% increase from $1,555.2 million (9% increase on a constant currency basis).
Operating income of $201.0 million, an 8% increase from $185.4 million (9% increase on a constant currency basis).
Adjusted EBITDA of $227.0 million, a 5% increase from $216.4 million (5% increase on a constant currency basis).
Total transactions of 176.9 million, a 9% increase from 161.7 million.

Fourth quarter constant currency revenue, operating income and adjusted EBITDA growth was the result of 14% growth in U.S.-outbound transactions, 11% growth in international-originated money transfers and 8% growth in xe transactions, partially offset by a 14% decline in the intra-U.S. business. These transaction growth rates include 33% growth in direct-to-consumer digital transactions.

Full year 2024 constant currency revenue, operating income, and adjusted EBITDA growth was the result of 12% growth in U.S.-outbound transactions, 11% growth in international-originated money transfers and 16% growth in xe transactions, partially offset by a 14% decline in the intra-U.S. business. These transaction growth rates include 28% growth in direct-to-consumer digital transactions.

Corporate and Other reports $21.0 million of expense for the fourth quarter 2024 compared with $23.6 million for the fourth quarter 2023. For the full year 2024, Corporate and Other reports $83.7 million of expense compared with $85.3 million for the full year 2023. The decrease in corporate expenses for both the fourth quarter and full year 2024 is largely the result of a decrease in long-term compensation expenses based on lower share value.

Balance Sheet and Financial Position
Unrestricted cash and cash equivalents on hand were $1,278.8 million as of December 31, 2024, compared to $1,524.1 million as of September 30, 2024. The net decrease in unrestricted cash and cash equivalents during the quarter is mainly due to working capital fluctuations, repayment of short-term borrowings, $50 million in share repurchases, partially offset by cash generated from operations. Total indebtedness was $1,949.8 million as of December 31, 2024, compared to $2,278.8 million as of September 30, 2024. The decrease in debt was largely due to repayment of short-term borrowings. Availability under the Company’s revolving credit facility was approximately $1,335 million as of December 31, 2024. The increase in availability of the revolving credit facility was primarily the result of an increase and extension of our credit facility in December 2024 from $1.25 billion to $1.90 billion.

Non-GAAP Measures
In addition to the results presented in accordance with U.S. GAAP, the Company presents non-GAAP financial measures, such as constant currency financial measures, adjusted operating income, adjusted EBITDA, and adjusted earnings per share. These measures should be used in addition to, and not a substitute for, revenues, net income and earnings per share computed in accordance with U.S. GAAP. We believe that these non-GAAP measures provide useful information to investors regarding the Company’s performance and overall results of operations. These non-GAAP measures are also an integral part of the Company’s internal reporting and performance assessment for executives and senior management. The non-GAAP measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. The attached schedules provide a full reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measure.

The Company does not provide a reconciliation of its forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for GAAP and the related GAAP and non-GAAP reconciliation, including adjustments that would be necessary for foreign currency exchange rate fluctuations and other charges reflected in the Company’s reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

⁽¹⁾ Constant currency financial measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of changes in foreign currency exchange rates on the Company’s results when compared to the prior period.

⁽²⁾ Adjusted operating income is defined as operating income excluding, to the extent incurred in the period, non-cash gains and non-cash purchase accounting adjustments. Adjusted operating income represents a performance measure and is not intended to represent a liquidity measure.

⁽³⁾ Adjusted EBITDA is defined as net income excluding, to the extent incurred in the period, interest expense, income tax expense, depreciation, amortization, share-based compensation, non-cash gains, non-cash purchase accounting adjustments and other non-operating or non-recurring items that are considered expenses or income under U.S. GAAP. Adjusted EBITDA represents a performance measure and is not intended to represent a liquidity measure.

⁽⁴⁾Adjusted earnings per share is defined as diluted U.S. GAAP earnings per share excluding, to the extent incurred in the period, the tax-effected impacts of: a) foreign currency exchange gains or losses, b) share-based compensation, c) acquired intangible asset amortization, d) non-cash income tax expense, e) non-cash gains and non-cash purchase accounting adjustments, f) other non-operating or non-recurring items and g) dilutive shares relate to the Company’s convertible bonds. Adjusted earnings per share represents a performance measure and is not intended to represent a liquidity measure.

Conference Call and Slide Presentation
Euronet Worldwide will host an analyst conference call on February 13, 2025, at 9:00 a.m. Eastern Time to discuss these results. The call may also include discussion of Company developments on the Company’s operations, forward-looking information, and other material information about business and financial matters. To listen to the call via telephone please register at Euronet Worldwide Fourth Quarter 2024 Earnings Call. The conference call will also be available via webcast at http://ir.euronetworldwide.com. Participants should register at least five minutes prior to the scheduled start time of the event. A slideshow will be included in the webcast.

A webcast replay will be available beginning approximately one hour after the event at http://ir.euronetworldwide.com and will remain available for one year.

About Euronet Worldwide, Inc.
A global leader in payments processing and cross-border transactions, Euronet moves money in all the ways consumers and businesses depend upon. This includes money transfers, credit/debit processing, ATMs, point-of-sale services, branded payments, currency exchange and more. With products and services in more than 200 countries and territories provided through its own brand and branded business segments, Euronet and its financial technologies and networks make participation in the global economy easier, faster and more secure for everyone.

Starting in Central Europe in 1994, Euronet now supports an extensive global real-time digital and cash payments network that includes 55,248 installed ATMs, approximately 1,160,000 EFT point-of-sale terminals and a growing portfolio of outsourced debit and credit card services which are under management in 67 countries; card software solutions; a prepaid processing network of approximately 777,000 point-of-sale terminals at approximately 362,000 retailer locations in 64 countries; and a global money transfer network of approximately 607,000 locations serving 197 countries and territories with digital connections to 4.1 billion bank accounts and 3.1 billion digital wallet accounts. Euronet serves clients from its corporate headquarters in Leawood, Kansas, USA, and 67 worldwide offices. For more information, please visit the Company’s website at www.euronetworldwide.com.

Statements contained in this news release that concern Euronet’s or its management’s intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet’s actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including: conditions in world financial markets and general economic conditions, including impacts from the COVID-19 or other pandemics; inflation; military conflicts in the Ukraine and the Middle East, and the related economic sanctions; our ability to successfully integrate any acquired operations; economic conditions in specific countries and regions; technological developments affecting the market for our products and services; our ability to successfully introduce new products and services; foreign currency exchange rate fluctuations; the effects of any breach of our computer systems or those of our customers or vendors, including our financial processing networks or those of other third parties; interruptions in any of our systems or those of our vendors or other third parties; our ability to renew existing contracts at profitable rates; changes in fees payable for transactions performed for cards bearing international logos or over switching networks such as card transactions on ATMs; our ability to comply with increasingly stringent regulatory requirements, including anti-money laundering, anti-terrorism, anti-bribery, consumer and data protection and privacy; changes in laws and regulations affecting our business, including tax and immigration laws and any laws regulating payments, including dynamic currency conversion transactions; changes in our relationships with, or in fees charged by, our business partners; competition; the outcome of claims and other loss contingencies affecting Euronet; the cost of borrowing (including fluctuations in interest rates), availability of credit and terms of and compliance with debt covenants; and renewal of sources of funding as they expire and the availability of replacement funding. These risks and other risks are described in the Company’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these filings may be obtained via the SEC’s Edgar website or by contacting the Company. Any forward-looking statements made in this release speak only as of the date of this release. Except as may be required by law, Euronet does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances. The Company regularly posts important information to the investor relations section of its website.

EURONET WORLDWIDE, INC.
Condensed Consolidated Balance Sheets
(in millions)

	As of
	December 31,		As of
	2024		December 31,
	(unaudited)		2023
ASSETS
Current assets:
Cash and cash equivalents	$	1,278.8	$	1,254.2
ATM cash	643.8		525.2
Restricted cash	9.2		15.2
Settlement assets	1,522.7		1,681.5
Trade accounts receivable, net	284.9		370.6
Prepaid expenses and other current assets	297.1		316.0
Total current assets	4,036.5		4,162.7

Property and equipment, net	329.7		332.1
Right of use lease asset, net	132.1		142.6
Goodwill and acquired intangible assets, net	1,048.1		1,015.1
Other assets, net	288.1		241.9

Total assets	$	5,834.5	$	5,894.4

LIABILITIES AND EQUITY
Current liabilities:
Settlement obligations	$	1,522.7	$	1,681.5
Accounts payable and other current liabilities	841.0		816.9
Current portion of operating lease liabilities	48.3		50.3
Short-term debt obligations	814.0		151.9
Total current liabilities	3,226.0		2,700.6

Debt obligations, net of current portion	1,134.4		1,715.4
Operating lease liabilities, net of current portion	87.4		95.8
Capital lease obligations, net of current portion	1.4		2.3
Deferred income taxes	71.8		47.0
Other long-term liabilities	84.3		83.6
Total liabilities	4,605.3		4,644.7
Equity	1,229.2		1,249.7

Total liabilities and equity	$	5,834.5	$	5,894.4


EURONET WORLDWIDE, INC.
Consolidated Statements of Operations
(unaudited – in millions, except share and per share data)

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

Revenues	$	3,989.8		$	3,688.0		$	1,047.3		$	957.7

Operating expenses:
Direct operating costs		2,389.3			2,222.8		640.8			596.4
Salaries and benefits		650.2			602.9		167.9			158.0
Selling, general and administrative		315.3			296.8		83.4			72.4
Depreciation and amortization		131.8			132.9		32.5			33.5
Total operating expenses		3,486.6			3,255.4		924.6			860.3
Operating income		503.2			432.6		122.7			97.4

Other income (expense):
Interest income		23.8			15.2		5.7			5.1
Interest expense		(80.5	)		(55.6	)	(21.3		)	(16.5		)
Foreign currency exchange (loss) gain		(19.1	)		8.0		(35.5		)	11.6
Other income		21.5			0.2		4.3			0.3
Total other (expense) income, net		(54.3	)		(32.2	)	(46.8		)	0.5
Income before income taxes		448.9			400.4		75.9			97.9

Income tax expense		(142.6	)		(120.9	)	(30.6		)	(28.4		)

Net income		306.3			279.5		45.3			69.5
Net (income) loss attributable to non-controlling interests		(0.3	)		0.2		(0.1		)	(0.2		)
Net income attributable to Euronet Worldwide, Inc.	$	306.0		$	279.7		$	45.2		$	69.3
Add: Interest expense from assumed conversion of convertible notes, net of tax		4.2			4.2			0.9			1.0
Net income for diluted earnings per share calculation	$	310.2		$	283.9		$	46.1		$	70.3
Earnings per share attributable to Euronet
Worldwide, Inc. stockholders – diluted	$	6.45		$	5.50		$	0.98		$	1.43

Diluted weighted average shares outstanding		48,082,766			51,599,633		47,050,602			49,066,284

EURONET WORLDWIDE, INC.
Reconciliation of Net Income to Operating Income (Expense), Adjusted Operating Income (Expense) and Adjusted EBITDA
(unaudited – in millions)

	Three months ended December 31, 2024

	EFT Processing		epay		Money Transfer		Corporate Services				Consolidated

Net income											$	45.3

Add: Income tax expense											30.6
Add: Total other expense, net											46.8

Operating income (expense)	$	37.3	$	48.0	$	58.4	$	(21.0	)		$	122.7

Add: Depreciation and amortization	24.4		1.9		6.0		0.2				32.5
Add: Share-based compensation	—		—		—		10.6				10.6

Earnings before interest, taxes, depreciation, amortization, share-based compensation (Adjusted EBITDA) ⁽¹⁾	$	61.7	$	49.9	$	64.4	$	(10.2	)		$	165.8

	Three months ended December 31, 2023

	EFT Processing		epay		Money Transfer		Corporate Services				Consolidated

Net income											$	69.5

Add: Income tax expense											28.4
Less: Total other income, net											(0.5		)

Operating income (expense)	$	25.5	$	43.6	$	51.9	$	(23.6		)	$	97.4
Add: non-cash purchase accounting expense adjustment		2.5		—		—		—				2.5
Adjusted operating income (expense) ⁽¹⁾		28.0		43.6		51.9		(23.6		)		99.9

Add: Depreciation and amortization	24.2		1.8		7.4		0.1				33.5
Add: Share-based compensation	—		—		—		14.2				14.2

Earnings before interest, taxes, depreciation, amortization, non-cash purchase accounting expense adjustment and share-based compensation (Adjusted EBITDA) ⁽¹⁾	$	52.2	$	45.4	$	59.3	$	(9.3		)	$	147.6

⁽¹⁾ Adjusted operating income (expense) and Adjusted EBITDA are non-GAAP measures that should be considered in addition to, and not a substitute for, net income computed in accordance with U.S. GAAP.

EURONET WORLDWIDE, INC.
Reconciliation of Net Income to Operating Income (Expense), Adjusted Operating Income (Expense) and Adjusted EBITDA
(unaudited – in millions)

	Twelve months ended December 31, 2024

	EFT Processing			epay		Money Transfer		Corporate Services			Consolidated

Net income											$	306.3

Add: Income tax expense											142.6
Add: Total other expense, net											54.3

Operating income (expense)	$	256.0		$	129.9	$	201.0	$	(83.7	)	$	503.2

Less: Non-cash purchase accounting income adjustment	(0.4		)	—		—		—			(0.4		)
Adjusted operating income (expense) ⁽¹⁾	255.6			129.9		201.0		(83.7		)	502.8

Add: Depreciation and amortization	97.9			7.3		26.0		0.6			131.8
Add: Share-based compensation	—			—		—		43.9			43.9

Earnings before interest, taxes, depreciation, amortization, non-cash purchase accounting income adjustment and share-based compensation (Adjusted EBITDA)⁽¹⁾	$	353.5		$	137.2	$	227.0	$	(39.2	)	$	678.5

	Twelve months ended December 31, 2023

	EFT Processing			epay		Money Transfer		Corporate Services			Consolidated

Net income											$	279.5

Add: Income tax expense											120.9
Add: Total other expense, net											32.2

Operating income (expense)	$	206.3		$	126.2	$	185.4	$	(85.3	)	$	432.6

Add: Non-cash purchase accounting expense adjustment	2.5			—		—		—			2.5
Less: Non-cash gain	(3.0		)	—		—		—			(3.0		)
Adjusted operating income (expense) ⁽¹⁾	205.8			126.2		185.4		(85.3		)	432.1

Add: Depreciation and amortization	94.6			6.9		31.0		0.4			132.9
Add: Share-based compensation	—			—		—		53.7			53.7

Earnings before interest, taxes, depreciation, amortization, non-cash purchase accounting expense adjustment, non-cash gain and share-based compensation (Adjusted EBITDA)⁽¹⁾	$	300.4		$	133.1	$	216.4	$	(31.2	)	$	618.7

EURONET WORLDWIDE, INC.
Reconciliation of Adjusted Earnings per Share
(unaudited – in millions, except share and per share data)

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

Net income attributable to Euronet Worldwide, Inc.	$	306.0		$	279.7		$	45.2		$	69.3

Foreign currency exchange loss (gain)		19.1			(8.0	)		35.5			(11.6	)
Intangible asset amortization⁽¹⁾		21.7			24.4			4.7			5.4
Share-based compensation⁽²⁾		43.9			53.7			10.6			14.2
Non-cash gain⁽³⁾		—			(3.0	)		—			—
Non-cash purchase accounting (income) expense adjustment⁽⁴⁾		(0.4	)		2.5			—			2.5
Income tax effect of above adjustments⁽⁵⁾		13.2			(3.0	)		3.2			1.2
Non-cash investment gain⁽⁶⁾		(20.3	)		—			(3.5	)		—
Non-cash GAAP tax expense (benefit)⁽⁷⁾		9.9			19.7			(3.1	)		6.4

Adjusted earnings⁽⁸⁾	$	393.1		$	366.0		$	92.6		$	87.4

Adjusted earnings per share – diluted⁽⁸⁾	$	8.61		$	7.46		$	2.08		$	1.88

Diluted weighted average shares outstanding (GAAP)		48,082,766			51,599,633			47,050,602			49,066,284
Effect of adjusted EPS dilution of convertible notes		(2,781,818	)		(2,781,818	)		(2,781,818	)		(2,781,818	)
Effect of unrecognized share-based compensation on diluted shares outstanding		369,573			230,000			295,559			158,030
Adjusted diluted weighted average shares outstanding		45,670,521			49,047,815			44,564,343			46,442,496

⁽¹⁾ Intangible asset amortization of $4.7 million and $5.4 million are included in depreciation and amortization expense of $32.5 million and $ 33.5 million for both the three months ended December 31, 2024 and December 31, 2023, in the consolidated statements of operations. Intangible asset amortization of $21.7 million and $24.4 million are included in depreciation and amortization expense of $131.8 million and $132.9 million for the twelve months ended December 31, 2024 and December 31, 2023, respectively, in the consolidated statements of operations.

⁽²⁾ Share-based compensation of $10.6 million and $14.2 million are included in salaries and benefits expense of $167.9 million and $158.0 million for the three months ended December 31, 2024 and December 31, 2023, respectively, in the consolidated statements of operations. Share-based compensation of $43.9 million and $53.7 million are included in salaries and benefits expense of $650.2 million and $602.9 million for the twelve months ended December 31, 2024 and December 31, 2023, respectively, in the consolidated statements of operations.

⁽³⁾ A non-cash gain of $3.0 million is included in operating income for the twelve months ended December 31, 2023, in the consolidated statements of operations.

⁽⁴⁾ Non-cash purchase accounting (income)/expense adjustment of respectively ($0.4) million and $2.5 million is included in operating income for the twelve months ended December 31, 2024 and December 31, 2023 in the consolidated statement of operations.

⁽⁵⁾ Adjustment is the aggregate U.S. GAAP income tax effect on the preceding adjustments determined by applying the applicable statutory U.S. federal, state and/or foreign income tax rates.

⁽⁶⁾ Non-cash investment gain of respectively $3.5 million and $20.3 million for the three and twelve months ended December 31, 2024 is included in other income in the consolidated statement of operations.

⁽⁷⁾ Adjustment is the non-cash GAAP tax impact recognized on certain items such as the utilization of certain material net deferred tax assets and amortization of indefinite-lived intangible assets.

⁽⁸⁾ Adjusted earnings and adjusted earnings per share are non-GAAP measures that should be considered in addition to, and not as a substitute for, net income and earnings per share computed in accordance with U.S. GAAP.

The MIL Network –

February 13, 2025

MIL-OSI USA: ICYMI: Delaying RFK Jr. Confirmation Vote on Senate Floor, Warren Highlights Kennedy’s Egregious Conflicts of Interest, “Long History of Promoting Anti-Science Conspiracy Theories”
US Senate News:
Source: United States Senator for Massachusetts – Elizabeth Warren

February 12, 2025

Warren, Democrats hold Senate floor for 30 hours to oppose “dangerous” RFK Jr. confirmation

“Kennedy’s actions speak louder than his latest words, and time and time again, Kennedy has shown us who he is: An anti-science conspiracy peddler who is willing to gamble with American lives. We know who he is, we need to pay attention.”

“(W)hile you and your family are forced to deal with the grave consequences of Kennedy’s conspiracy-driven health care decisions, Kennedy could set himself up to make millions of dollars off his anti-vaccine crusade – just like he’s been doing for decades. ”

Video of Remarks (YouTube)

Washington, D.C. – On the floor of the United States Senate, Senator Elizabeth Warren, a member of the Senate Finance Committee, joined Democrats in delaying a final vote to confirm Robert F. Kennedy Jr. for Secretary of the Department of Health and Human Services. Senator Warren warned that American families and children would pay the price for Mr. Kennedy’s “conspiracy-driven health care decisions,” while his serious ethics conflicts remain unresolved.

Senator Warren called on her colleagues to oppose his nomination. The Senate is scheduled to vote on Mr. Kennedy’s confirmation on the morning of February 13, 2025.

Transcript: Floor Speech Opposing the Confirmation of Robert F. Kennedy Jr., Nominee for Secretary of Health and Human Services
U.S. Senate Floor
February 12, 2025
As Delivered

Senator Elizabeth Warren: Thank you, Mr. President. And I want to say thanks to the Senator from Minnesota for her leadership on this point. I know that the great research institutions in Minnesota that count on her support are out there fighting thanks to Donald Trump, as they are in Massachusetts. And the people all around this country that rely on those research institutions, who are looking for those cures, for those better treatments, for those opportunities in their lives that right now Donald Trump and his co-president, Elon Musk, seem to want to cut off. So we will stay in this fight. We will indeed.

I am here today because Americans didn’t vote to bring back measles.

Americans didn’t vote to bring back polio.

Americans didn’t vote to bring back dangerous diseases that we thought we had wiped out decades ago.

Americans didn’t vote to get rid of critical vaccines that we know — based on science — we know save lives.

But that is what Robert F. Kennedy Jr.’s vision would mean for Americans. That is the vision Donald Trump will empower him to carry out.

Kennedy not only worked to undercut vaccines at home and abroad, he’s made a lot of money doing it. In fact, Kennedy has made millions off of peddling harmful conspiracy theories that hurt real people. He opposed the life-saving Covid vaccine just six months into the pandemic. And he’s set himself up so that he and his family could make millions more from putting Americans’ health at risk.

One thing is very clear: We cannot trust Robert Kennedy to make health care decisions that will affect every person in this country.

Right now, millions of Americans are sitting down for dinner with their kids. And I hope we just think for a minute about what RFK Jr.’s plans would mean for them.

Will their teeth decay because Kennedy took fluoride out of our water based on some conspiracy theory?

Will they have to worry about getting measles at school because Kennedy is spreading anti-vax conspiracies on government letterhead?

Will parents have to risk their kids getting polio—and maybe dying—by sending them to daycare because Kennedy used HHS rules to open the door to a flood of bogus lawsuits that forced manufacturers to pull the vaccines?

Look, here’s the thing: Robert Kennedy has spent years on an anti-vaccine crusade, spreading baseless conspiracy theories under the guise of protecting children, so we don’t need to guess the level of harm he will cause; his past already tells us everything we need to know.

In July 2018, two children died immediately after receiving a measles vaccine that nurses had incorrectly mixed with a muscle relaxant. Within weeks, the Samoan Health Ministry publicly confirmed the nursing error and charged the nurses with manslaughter. Nevertheless, leading anti-vaccine groups, including Kennedy’s own organization, Children’s Health Defense, exploited public fears to question the reports and spread baseless claims.

On August 5th, 2018, Kennedy’s organization, Children’s Health Defense, posted on Facebook, and I will quote the post. “Were these once-healthy children the only two to receive MMR that day? If not, why were they the only ones to die? Research needs to determine susceptibility so that no child is ever injured.” Del Bigtree, Kennedy’s partner and former campaign manager, also released a video linking the tragedy to false claims about measles, and telling his followers to “share it with everyone you know. This is how we are changing the world.”

Now, amidst public distrust and a paused vaccine program in Samoa, the vaccination rates plummeted. About 10 months later, once the Samoan government had finally stood up against the disinformation and resumed the vaccine program, Kennedy visited the island to meet with the Prime Minister.

Later, recognizing the blowback that comes with how much went wrong when a conspiracy theory cost people their lives, Kennedy has since denied that his visit had anything to do with vaccines and said that anything suggesting otherwise was an “industry propaganda trope.” In other words, totally false. “Industry propaganda trope.”

Kennedy lied. A blog post that Kennedy himself wrote in 2021 admits he went to Samoa to meet with the Prime Minister, who wanted to discuss the possibility of “measur(ing) health outcomes following the ‘natural experiment’ created by the nation’s respite from vaccines.”

Think about what that means. Another way to say it is that Kennedy was interested in taking advantage of how the vaccination rate had plummeted, caused by misinformation, so that they could conduct uncontrolled trials on whether unvaccinated kids were healthier than vaccinated kids, a conspiracy theory he has spread widely. You see, at the time, one of his traveling partners was working on a similar study with two anti-vaccine activists, which was ultimately retracted following an investigation that “raised several methodological issues and confirmed that the conclusions were not supported by strong scientific data.”

Now, there’s no surprise here. The Prime Minister declined Kennedy’s outrageous proposal – he didn’t want his country to be Kennedy’s guinea pig. He didn’t want unvaccinated children to be studied to see what happened to them when measles or other diseases broke out. But that didn’t stop him from spreading his message. On this trip to Samoa, he met with various anti-vaccine influencers, one of whom said the meeting was “profoundly monumental for (the) movement.” A few months after Kennedy left, in October 2019, the vaccination rate in Samoa hit an historic low of 31%, down from 74% the prior year – and no surprise, a massive measles outbreak erupted. So here is Kennedy telling us now he had nothing, nothing to do with this, his trip to Samoa had nothing to do with the measles vaccine and calling any claim “industry propaganda trope.” And yet, he himself posted a blog about meeting with the Prime Minister and talking about a study to measure health outcomes following a natural experiment of studying children–some with no vaccination and some that were vaccinated. And the anti-vax groups that he met with talked about how profoundly important it is, then Mr. Kennedy leaves, vaccination rates drop down to 31%.

The measles outbreak was truly tragic. In total, more than 70 children died, right up until a door-to-door vaccination campaign brought the disaster to an end.

As HHS Secretary, Kennedy would be responsible for whether we keep our children vaccinated or subject them to, in his words, the same “natural experiment” he was interested in testing in Samoa.

Is that what we want for our kids? Is that what we want for our elderly parents? That is a living nightmare — and it could truly be our reality with Kennedy heading up the Department of Health and Human Services. And all the while that this is going on, while Kennedy is promoting this anti-vax theory, he and his family are profiting off of the plan.

Now, I’ve been sounding the alarm about Kennedy since the minute Donald Trump announced that he would nominate him for HHS Secretary. It’s not just that he’s unqualified — his long history of promoting anti-science conspiracy theories make him disqualified.

This is a man who claimed “there is no vaccine that is safe and effective.” “No vaccine.”

He said that the polio vaccine “killed many, many more people” than polio ever did. Now, Kennedy came to our committee and said don’t worry, he swears anti-vaccine. But he’s spent his entire career on an anti-vaccine crusade, spreading baseless conspiracy theories under the guise of protecting children and making millions in the process.

And when, in Senate hearings, he was confronted with his own words, he simply denied saying them. Denied saying them— despite the videotapes, the transcripts, the blog posts, and the people who heard them. Kennedy thinks he knows what he needs to say to try to get the job that will put him in charge of our vaccine program, so he says he didn’t say exactly what he said.

Kennedy’s actions speak louder than his latest words, and time and time again, Kennedy has shown us who he is: An anti-science conspiracy peddler who is willing to gamble with American lives. We know who he is, we need to pay attention.

Let’s do a quick count of some of the ways that, as HHS Secretary, Kennedy could make the anti-vaccine lawsuits — and his own payouts — even bigger. What could Kennedy do? Well, as Secretary of HHS:
- He could publish his anti-vaccine conspiracies, but this time on U.S. government letterhead — something that might impress a jury in a subsequent trial.
- He could appoint people to the CDC vaccine panel who share his anti-vax views and let them do his dirty work.
- He could tell the CDC vaccine panel to remove a particular vaccine from the vaccination schedule.
- He could remove vaccines from a special compensation program, which would “open up manufacturers to mass torts (lawsuits).”
- He could “make more injuries eligible for compensation even if there’s no causal evidence.”
- He could change vaccine court processes to make it easier to bring junk lawsuits that could get vaccines pulled from the market.
- He could turn over FDA (data) to his friends at the law firm, and they could use it however benefits their lawsuits.
In short, as HHS Secretary, Kennedy would have the power to make health care decisions that would affect millions of Americans — for working Americans, kids, seniors — on everything from vaccines to abortion to life-saving drugs. Kennedy would have the capacity, as head of HHS, to make it easier to sue vaccine manufacturers. And in an area where the profit margins on vaccines are quite modest, if those lawsuits mount up, vaccines could simply disappear from the market altogether. Manufacturers could decide, “you know, it’s just not worth the lawsuits. We’ll go produce other drugs.”

Those kinds of decisions are critically important, and the consequences are grave. For many Americans, they may be the difference between life and death. And they can change lives forever.

So, while you and your family are forced to deal with the grave consequences of Kennedy’s conspiracy-driven health care decisions, Kennedy could set himself up to make millions of dollars off his anti-vaccine crusade – just like he’s been doing for decades.

Remember, the very first ethics agreement that Kennedy submitted to us on the Senate Finance Committee, he said that even while serving as HHS Secretary, he planned to keep his financial stake in ongoing litigation — including vaccine-related litigation. That means that from the jump, Kennedy’s plan was to keep making money off the backs of lawsuits against vaccine manufacturers, some of which directly related to the very products he would have the power to regulate as Secretary of HHS. So, there he is. He has the power to regulate these drugs. He has the power to make life a little better or a little worse for the vaccine manufacturers. He has the power to make it more likely that lawsuits against vaccine manufacturers would succeed. And his initial plan was even while he sat there as Secretary of HHS, he was going to keep on making money from that.

This was a damning conflict of interest, so we called it out. Kennedy told us okay, okay, he would submit an updated ethics agreement. Sounds good? What was his update?

Well, he said instead of personally keeping the millions he’d make off these ongoing lawsuits… he would hand that money directly to his son. Later, he confirmed that the son he’s handing his interests off to is the one who works at Wisner Baum—the same law firm that Kennedy has maintained his very lucrative arrangement with over years, so far netting him a reported $2.5 million just in the last few years. And Kennedy has made clear that he can use his tools as HHS Secretary to open up the door for more anti-vax litigation, and once he’s through as Secretary of HHS, go right back to Wisner Baum and cash in on the new flood of cases that Kennedy himself has unleashed.

So that is Kennedy’s idea of “fixing” an ethics issue.

And beyond that, Kennedy has flip-flopped countless times in his answers to the Finance Committee. He is untrustworthy. He has made so many contradictory statements that it’s come to the point it is hard to believe anything he says is true.

For example, Kennedy originally said he was not an attorney of record in any of these vaccine-related lawsuits. But we did a little homework and we found at least five cases related to the vaccine litigation that hadn’t been disclosed where Kennedy seems to be an attorney of record. That is important because what it means is that Kennedy is a lot closer to these cases than he’s revealing — cases that he and his family will be able to make bank off even as he serves as HHS Secretary.

The importance of this litigation can’t be overstated. Just 20 years ago, we watched vaccine makers pull their products off the market because they didn’t have protection from these kinds of lawsuits. The consequence of Kennedy’s ability to make those lawsuits easier is also the ability to shut down access and manufacturing for vaccines for every one of us. And I think that is a terrible mistake.

Kennedy claims that he is taking on Big Pharma, but that is the lie he is peddling to hide his conflicts. I pressed him on real ways to take on the industry, including using marching-in on Big Pharma’s patents when they use taxpayer funds to bring drugs to market and then turn around and jack up prices on hardworking Americans, and by having the government negotiate prices directly with Big Pharma on behalf of Medicare beneficiaries. But Kennedy, after talking a big game about taking on Big Pharma, said no, he doesn’t support march-in rights and no, he didn’t want to commit to defending Medicare price negotiations, two proven methods to take on the drug industry and put money back into Americans’ pockets. So whose side is he on?

Well, one thing is for sure: RKF Jr. is on the side of his own bottom line. He has also refused to share a list of cases that he stands to benefit from. Now, I told you. He said nope, he was not attorney of record on any cases. We dug around and we found five. How many more are there? Well, here’s what Kennedy said when we said, just give us a list of the cases that you’re participating in so we can take a look at the possible conflicts. His answer? The list is so long and the conflicts so clear that, evidently, it would be more damning than what we already know.

Kennedy’s list of ethics issues and financial issues are a mile long—and there’s still too much that he refuses to reveal. Think about this. He’s already told us enough about his conflicts, about how he plans to keep making money, even while he was Secretary of HHS. He revealed all that right upfront. He said “Yep, I’m going to make money while I’m Secretary of HHS.”

And yet on basic questions like can you just give us a list of the cases that you participated in? He says, “No, I can’t do that,” which really makes you ask what on Earth is he hiding? He is dodging questions from the Senate, he is contradicting himself, and he keeps changing his answers in order to muddy the waters and really make it hard to understand what’s going on.

Look, no one is fooled about what is happening here. Kennedy has said he’ll, “slam shut the revolving door,” between government agencies and the companies they regulate. But what he won’t agree to is cut off his own family’s steady stream of money flowing in from lawsuits that he personally can directly affect while he is Secretary of HHS.

Kennedy knows that these conflicts are serious. And that’s why he scrambled to update his ethics agreement and hand off his interests to his son in a desperate attempt to “fix” things.

Video of Senator Warren’s full remarks can be found here.
MIL OSI USA News –
February 13, 2025
MIL-OSI Security: Albany Woman Pleads Guilty to Unemployment Insurance Fraud and Gun and Drug Charges

Source: Office of United States Attorneys

ALBANY, NEW YORK – Niesha Goodwin, age 37, of Albany, pled guilty today to mail fraud and aggravated identity theft charges for fraudulently obtaining pandemic-related unemployment insurance benefits in the names of other people. Goodwin also pled guilty to firearm and drug distribution charges for a firearm and cocaine base recovered during a search of her residence.

The announcement was made by United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, Northeast Region, United States Department of Labor, Office of Inspector General (USDOL-OIG); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); and Erin Keegan, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

Goodwin admitted that from about July 2020 through March 2021, she fraudulently obtained unemployment insurance benefits worth more than $150,000 by submitting applications for benefits in the names of five other people, including by using stolen personal identifying information. Goodwin agreed to pay $151,783 in restitution to the New York State Department of Labor.

Goodwin also admitted to possessing a loaded 9mm semi-automatic pistol and cocaine base (a/k/a crack cocaine) with the intent to distribute in November 2022. As a result of her prior conviction for robbery, Goodwin could not lawfully possess the pistol. Goodwin has agreed to forfeit the firearm and to abandon seven rounds of ammunition that were found in the firearm.

Goodwin faces at least 2 years in prison, a fine of up to $1.75 million, and a term of supervised release of at least 3 years when she is sentenced on June 12, 2025 by United States District Judge Mae A. D’Agostino.

The case was investigated by USDOL-OIG, USPIS, and HSI, with assistance from the Albany Police Department. Assistant U.S. Attorneys Matthew M. Paulbeck, Joseph S. Hartunian, and Joshua R. Rosenthal are prosecuting the case.

MIL Security OSI –

February 13, 2025
MIL-OSI Security: U.S. Attorney Tara McGrath Concludes Tenure as Chief Law Enforcement Officer in Southern District of California
Source: Office of United States Attorneys

SAN DIEGO – The U.S. Attorney’s Office for the Southern District of California announced that U.S. Attorney Tara McGrath’s tenure as the chief federal law enforcement official for San Diego and Imperial counties ended today, February 12, 2025.

As a Presidential appointee, Ms. McGrath was informed of her termination in a communication from the White House, at the direction of the President of the United States. The White House also thanked Ms. McGrath for her service to the nation.

“It has been an honor to serve as U.S. Attorney, working alongside an exceptional team in this office and forging strong partnerships with our law enforcement agencies and communities in pursuit of justice,” Ms. McGrath said. “As I step down from a decades-long career in public service, I remain inspired by dedicated public servants across this district and am proud of all we achieved together.”

Ms. McGrath was confirmed by the U.S. Senate after nomination by President Biden. She was sworn in as the district’s top federal law enforcement official on October 5, 2023. She oversaw one of the nation’s busiest United States Attorney’s Offices, which has a staff of about 300 and serves approximately 3.5 million residents in San Diego and Imperial counties.

During her tenure, Ms. McGrath prioritized protecting the community from the deadly scourge of fentanyl; investigating and prosecuting scammers targeting vulnerable populations; getting firearms out of the hands of felons and violent offenders; bringing cases to root out corruption and enforce civil rights; and using the legal tools available to safeguard the environment. The office also successfully prosecuted cases involving Mexican drug cartels and drug trafficking — leading the nation in the number of drug trafficking cases prosecuted — as well as firearms trafficking and violent crime; complex financial frauds; national security and cybersecurity; and human smuggling and trafficking.

Some key accomplishments of the U.S. Attorney’s Office under Ms. McGrath’s leadership:
- Became first in the nation to charge defendants for smuggling potent greenhouse gases across the U.S.-Mexico border, in violation of U.S. environmental laws.
- Secured sentences of six consecutive life terms and 45 years, respectively, for brothers convicted of murdering their American half-sister, her three children, and her partner in Tijuana.
- Reinforced the region’s Elder Justice Task Force in partnership with the FBI and San Diego County District Attorney’s Office, recovering approximately $4.5 million stolen from elderly victims through sophisticated scams.
- Charged 40 individuals with stealing public-assistance benefits from low-income families, as part of an ongoing effort targeting thieves who exploit the government’s electronic payment system.
- Negotiated a $130,131,645 forfeiture settlement with Wynn Las Vegas for criminal conspiracy involving unlicensed money transmitting businesses worldwide. Achieved what is believed to be the largest forfeiture by a casino based on admissions of criminal wrongdoing.
- Secured conviction at trial against a defendant on 25 counts of securities fraud, bank fraud, and money laundering in connection with a $35 million investment and COVID-relief fraud scheme. Highlighted victim impact during the trial, including the defendant’s immigrant uncle who’d been swindled out of $4.5 million and many other victims who collectively lost millions of dollars.
- Facilitated the extradition of Michael Pratt, the alleged mastermind behind the GirlsDoPorn commercial sex trafficking ring, following his arrest in Spain after more than three years as an international fugitive.
Ms. McGrath also oversaw key civil cases, including successful defensive litigation on behalf of the United States, and led efforts to recover millions of dollars from individuals and companies involved in fraud and civil rights violations.

Since Ms. McGrath took the helm, the U.S. Attorney’s Office has obtained settlements and recoveries in excess of $41 million. This includes cases brought under the False Claims Act across a broad spectrum of program areas including health care, defense procurement, and the Paycheck Protection Program enacted in response to the COVID-19 pandemic. These substantial recoveries also involved matters investigated under the Controlled Substances Act in response to the opioid epidemic, including those against a large-scale pharmacy and other DEA registrants for failing to meet their obligations to properly handle and dispense opioids and other dangerous controlled substances.

Pursuant to the Vacancies Reform Act, career prosecutor and current First Assistant U.S. Attorney, Andrew R. Haden, has taken over as the Acting United States Attorney, effective today.

For more information about Ms. McGrath, please see Tara McGrath Sworn In

MIL Security OSI –
February 13, 2025
MIL-OSI Economics: Q&A: Transforming ADB’s Gender Mainstreaming Approaches
Source: Asia Development Bank

Article | 13 February 2025

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ADB’s exceptional performance on corporate gender targets provides an opportunity to raise its ambition in deepening the bank’s impact on gender equality in Asia and the Pacific.

With the gender updates to its corporate results framework, ADB is ensuring that its public and private sector operations focus on closing gender gaps and supporting women’s empowerment.

ADB’s updated gender mainstreaming approach brings a stronger focus on addressing challenges within developing member countries, with ADB prioritizing transformative gender actions aligned with SDG 5.

Since 1 January 2025, ADB started to apply an updated approach to its corporate gender targets and project gender categorization system. This is part of the bank’s recently approved Corporate Results Framework (CRF) 2025-2030. Given that ADB has significantly surpassed Strategy 2030’s gender mainstreaming targets, the bank is raising its ambition to further accelerate progress and promote more transformative approaches to gender equality. This is aligned with ADB’s thematic evaluation on gender which highlighted the need to revise its gender mainstreaming categorization system and its application.

Samantha Hung, Director, Gender Equality Division, ADB

Why is ADB updating its gender mainstreaming approaches?

ADB significantly surpassed the corporate gender mainstreaming targets set in 2019 under Strategy 2030. These changes are intended to further strengthen ADB’s efforts to proactively design projects that advance progress in gender equality and women’s empowerment. It also aims to promote gender transformative approaches in line with Sustainable Development Goal 5 (SDG 5).

In addition, ADB is enhancing its efforts to address evolving and emerging gender challenges. The COVID-19 pandemic, along with the resulting socioeconomic instability and polycrises, has intensified gender inequalities. Women have faced disproportionate job losses, increased rates of gender-based violence, and a greater burden of unpaid care work within households.

What are the key changes in ADB’s corporate gender targets and project gender categorization system?

In ADB’s new corporate results framework, key gender updates include the following:

Updated definition of a gender performance indicator that contributes towards a project gender mainstreaming category. Under the previous project gender mainstreaming categorization system, a gender performance indicator includes a wide range of direct and indirect gender equality measures. Starting in 2025, ADB is streamlining its definition of a gender performance indicator considering only those that directly contribute to closing gender gaps and inequalities and/or support women’s empowerment. This goes beyond indicators that focus on participation and inclusion (e.g. participation of women and girls in training workshops) and universal infrastructure designs (e.g. street lighting, sidewalks). The indicator should be specific, measurable, achievable, relevant, and time-bound (SMART), with explicitly stated quantitative baselines and targets.

Renaming of gender mainstreaming categories. Depending on the gender performance indicators included in the project design and monitoring framework, ADB assigns its projects into one of four categories, namely Gender Equity Theme (GEN), Effective Gender Mainstreaming (EGM), Some Gender Elements (SGE), and No Gender Elements (NGE). Starting in 2025, ADB is renaming GEN to Gender Equality Objective. This transition from “gender equity” to “gender equality” shifts the emphasis from the process of reducing gender disparities to ADB’s primary objective of achieving equal outcomes for all. NGE is also now renamed to Indirect Gender Benefits (IGB). While there are no gender performance indicators in an IGB project, this shift reflects how all ADB projects and programs address gender equality concerns, albeit indirectly or as part of safeguarding measures. There are no changes to the EGM and SGE categories.

New corporate target of 60% of committed operations classified as GEN or EGM. Considering the updated definition of gender performance indicator, ADB aims for 60% of its operations to be classified as GEN or EGM by 2030. This target aims to be both ambitious and realistic as ADB adjusts to the revised criteria. The target is also 5 percentage points higher than the original forecasted target of 55% originally set in 2019 under the previous CRF.

What is the importance of these updates to ADB projects and partners?

This approach raises ADB’s ambitions for gender equality in its public and private sector operations, guiding the bank to focus on more meaningful and transformative project designs. While addressing gendered challenges in developing member countries, this initiative also enhances the bank’s capacity to deliver impactful results, contribute to the achievement of SDG 5 in the region, and support partners to deliver greater gender outcomes.

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MIL OSI Economics –
February 13, 2025
MIL-OSI USA: Cantwell Votes NO On Advancing RFK Jr. for HHS Secretary: “The Kind Of Research We’re Talking About Here Is The Kind That Saves Lives”

US Senate News:

Source: United States Senator for Washington Maria Cantwell

02.12.25

Cantwell Votes NO On Advancing RFK Jr. for HHS Secretary: “The Kind Of Research We’re Talking About Here Is The Kind That Saves Lives”

In Senate floor speech, says RFK Jr.’s anti-science views put U.S. medical innovation leadership at risk; would hinder response to health crises like avian flu; Trump Administration plans to slash NIH funding put lifesaving research – and 12k jobs – in WA state at risk

WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA), a senior member of the Senate Finance Committee and ranking member of the Senate Committee on Commerce, Science, and Transportation, voted against closing debate on Robert F. Kennedy Jr. – President Trump’s nominee to serve as Secretary of Health and Human Services – and advancing toward his final confirmation vote.

In a speech delivered on the Senate floor, Sen. Cantwell urged her colleagues to follow suit, cautioning that “President Trump’s nominee would get us stuck in conspiracy theories that would cost us lives.”

“Now we are at the possibility of the beginning of another crisis, the avian flu. This crisis is yet another reminder of the importance of medical research and collaboration,” Sen. Cantwell said. “Does it make sense to cut science at the time we might have another pandemic? Does it make sense to continue to cut the collaborative efforts of research?”

“My state is a global leader in medical innovation. From research, to biotech, to getting drugs to the market — in 2023 the National Institutes of Health awarded $1.2 billion in highly competitive grants to 65 different organizations in the State of Washington. This supported about 12,000 jobs and generated close to $3 billion in economic activity. So yes, we know a little something about global health and innovation,” Sen. Cantwell continued. “The kind of research we’re talking about here is the kind that saves lives. And this, ultimately, is about making an investment in saving the lives of people.”

The Senate ultimately voted to invoke cloture on RFK Jr.’s nomination, 53-47. His final confirmation vote is currently scheduled for tomorrow morning.

Last week, Sen. Cantwell voted no on advancing RFK Jr.’s nomination out of the Senate Finance Committee, citing his waffling on the safety of vaccines. Her no vote followed a committee hearing in January, when Sen. Cantwell grilled him on his anti-science and anti-vaccine views, and his promise to cut 600 employees from the National Institutes of Health.

For decades, Sen. Cantwell has remained a staunch supporter of medical innovation and evidence-based science, including treatments for fentanyl addiction, abortion, vaccinations, stem cell research, and more.

Video of Sen. Cantwell’s speech on the Senate floor today is available HERE, audio HERE, and transcript HERE.

MIL OSI USA News –

February 13, 2025
MIL-OSI Russia: Building Resilience and Boosting Growth in Asia

Source: IMF – News in Russian

Opening Remarks by Deputy Managing Director Kenji Okamura at the 7th IMF-JICA Conference, Tokyo, Japan

February 13, 2025

Honorable Ministers and Governors, President Tanaka, Vice Minister Mimura, and Ladies and Gentlemen:

Welcome to the 7^th IMF-JICA Conference. I am so pleased to be here. Let me first express my gratitude to our co-organizer, JICA, and to the Japanese authorities for their generous support. My thanks also to the JICA and IMF staff who have been working for months to organize this event.

Let me start with the good news. Despite the shocks of recent years, the global economy has remained surprisingly resilient. Our global projections released in January suggest global growth will hold steady at 3.3 percent this year and next.

Having said that, divergences across countries are widening. The U.S. is outperforming its advanced economy peers with stronger growth than projected. By contrast, growth in the Euro area will increase only modestly due to weak momentum and high energy prices.

For emerging market economies, growth projections remain at 4.2 percent and 4.3 percent this year and next. We revised up our growth forecast for China slightly for this year and next. But growth remains slower than in past years and is now more like that of other emerging market economies.

These forecasts could easily change. There is tremendous uncertainty. The world is changing rapidly: global trade and capital flows are shifting; AI is fast advancing.

Policymakers will need to be agile and focused on building resilience and lifting growth, which is key to raising living standards and creating jobs. We will discuss how to do that in some of the topics covered today but let me focus on three priorities.

First, implementing reforms to lift productivity. There is no one-size-fits-all approach, but measures that improve the business environment and encourage entrepreneurship, like cutting red tape and deepening capital markets are important. And through our surveillance, we will work with you to identify the right approach with granular and tailored policy advice.

The second priority is to rebuild fiscal buffers. Public debt and debt servicing ratios in Asia are well above pre-pandemic levels, especially in many Pacific Island countries and emerging markets. Well-designed and growth-friendly fiscal consolidation can reduce debt risks, and create the fiscal space needed to deal with shocks and challenges like ageing or climate change. The Fund can provide useful capacity development in this area, including through peer-to-peer learning.

Finally, strengthening cooperation. By working together, Asian countries can leverage their collective strengths. In a changing world, this can help buffer against shocks and heightened uncertainty.

Among Asian countries, cooperation in the areas of AI, digital connectivity, and cross-border digital payments is moving fast, and could be a big boost to growth.

Let me add one more point as an important message from my end. The IMF continues to play its part at the center of the Global Financial Safety Net (GFSN). My goal—as the Deputy Managing Director that oversees the Fund’s finances—is to ensure that the IMF remains financially strong and sound well into the future. We are also committed to helping Regional Financing Arrangements (RFAs) in Asia be important elements of the GFSN.

In conclusion, I hope that today’s sessions can contribute to strengthening our ties, as we all navigate these uncertain times together.

Thank you.

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER:

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

@IMFSpokesperson

https://www.imf.org/en/News/Articles/2025/02/13/sp021325-building-resilience-and-boosting-growth-in-asia

MIL OSI

MIL OSI Russia News –

February 13, 2025
MIL-OSI USA: Duckworth Holds Senate Floor to Protest HHS Nominee Robert F. Kennedy Jr., Underscores How RFK’s Extreme Views Would Endanger the Health of Millions of Middle-Class Americans
US Senate News:
Source: United States Senator for Illinois Tammy Duckworth

February 12, 2025

[WASHINGTON, D.C.] – Today, U.S. Senator Tammy Duckworth (D-IL) joined Senate Democrats’ protest opposing Robert F. Kennedy Jr.’s nomination to serve as the Director of the Department of Health and Human Services (HHS) under President Trump. In her remarks, Duckworth underscored just how unqualified Kennedy is for the job and how his long-held, well-established extreme views would put programs and services that millions of middle-class Americans rely on—like Medicaid—at risk. Video of Duckworth’s full speech can be found on the Senator’s YouTube, Twitter/X and Facebook.

Key quotes:
- “Next month will mark the five-year anniversary of when COVID shut down our nation. In this moment, it is dangerous, reckless and heartless to everyone who lost a loved one in the pandemic to even consider nominating a guy who has stated that, quote, ‘no vaccine is safe and effective.’ And if our HHS Secretary refuses to ensure children are protected against preventable-yet-deadly diseases—like measles, RSV, whooping cough or polio—it will be our kids, not Mr. Kennedy, who pay the price.”
- “The only reason Kennedy is even up for confirmation is because he, like Elon Musk, decided to throw his dignity to the wind and bow down at Trump’s altar. And because of that, he gets to be yet another rich guy with too few qualifications and too much power somehow now charged with leading our government… So why would any of us ever think that he’d have the courage to stand up to Trump if the President issues an order that actively harms everyday Americans? How could any of us actually believe that Kennedy would fight back against Trump’s worst instincts, when Kennedy has proven time and again that he believes more in sycophancy than science?”
- “Americans are going be the ones to suffer. Because now, with Kennedy’s confirmation, even programs as popular, effective and vital as Medicaid will be in even greater danger… Medicaid is a lifeline for kids, pregnant women, people in nursing homes and Americans with disabilities. But Republicans don’t seem to care about any of that. It’s obvious that Donald Trump has never stayed up late at night hunched over the kitchen table, with a calculator in one hand and a medical bill in the other, praying to figure out a way to afford his child’s insulin.”
- “To my colleagues on the other side of the aisle: I am sure many of you have faced health crises of your own. I’m sure many of you have had a parent who’s been sick or a nephew who’s been in a car crash, a spouse who’s needed an emergency C-section or a child who’s relied on an autoimmune injector. Imagine if your loved one hadn’t had care they could rely on in that moment. Then ask yourself how you can sleep soundly tonight if you vote to further the agenda of a couple rich guys who so clearly don’t care about making America healthy—they only care about tipping it even more in favor of the wealthy. They’re not bringing back the good ole days of Reagan. They’re just bringing back the days of dying from the measles. And they’re certainly not making America great again. They’re making America sick again. That’s the Trump-Kennedy promise.”
Duckworth’s opening remarks as prepared below:

You know, if you go back exactly 20 years ago today, I could tell you exactly where I was. I was in Walter Reed Medical Center. I was staring at the beige colored walls. And amidst the pain in every inch of my body, I was trying to muster the strength to sit up, or to take a step, or even just to take a breath.

I spent months and months and months in that room. Hooked up to machines, getting wheeled in and out of surgeries, learning how to live again in my new, post-shootdown world. But despite it all, looking back, I consider every one of those days in that hospital room lucky.

Because when the worst happened to me—when that RPG exploded in my lap in Iraq and I needed serious, sustained medical attention to survive the hour, the day, the year—I had health care I could rely on.

The same cannot be said for countless Americans.

Americans whose health care costs have already been too high, and whose access to care is in even greater danger if this Chamber is foolish enough to confirm Robert F. Kennedy Jr. as our next Secretary of HHS. Put simply, Mr. Kennedy cannot be trusted with the grave, grave responsibility that comes with this job.

He cannot be trusted with our lives. He is focused on pushing his agenda—regardless of the cost to middle-class Americans. And if this man is confirmed, more Americans will die preventable deaths because of his policies.

Next month will mark the five-year anniversary of when COVID shut down our nation. In this moment, it is dangerous, reckless and heartless to everyone who lost a loved one in the pandemic to even consider nominating a guy who has stated that, quote, “no vaccine is safe and effective.”

And if our HHS Secretary refuses to ensure children are protected against preventable-yet-deadly diseases—like measles, RSV, whooping cough or polio—it will be our kids, not Mr. Kennedy, who pay the price.

I’ve gotten letter after letter from my constituents, begging me to try to reason with my colleagues, to do whatever I can to prevent a man so ignorant of all things science and medicine from holding a position of such power over our child’s next breath.

One pediatrician from Illinois wrote to me: I will always remember the 9-month-old infant with whooping cough who could not be saved despite every high-tech ventilator and medication we had available.” Another said: “I recall a father screaming and punching a hole in the wall when his 4-year-old son died of chicken pox.” The stories, the letters, the avoidable tragedies go on and on. Imagine how much worse the heartbreak will become under a guy who acts like the term “vaccine” is a swear word.

Look, the only reason Kennedy is even up for confirmation is because he, like Elon Musk, decided to throw his dignity to the wind and bow down at Trump’s altar.

And because of that, he gets to be yet another rich guy with too few qualifications and too much power, somehow now charged with leading our government.

Trump is running this country like the mob: Kiss his ring, pledge your unyielding loyalty, get made—it’s just this time, you get made into a Cabinet Secretary. Well, Kennedy has given Trump his fealty. So why would any of us ever think that he’d have the courage to stand up to Trump if the President issues an order that actively harms everyday Americans? How could any of us actually believe that Kennedy would fight back against Trump’s worst instincts, when Kennedy has proven time and again that he believes more in sycophancy than science?

Now, Americans are going be the ones to suffer. Because now, with Kennedy’s confirmation, even programs as popular, effective and vital as Medicaid will be in even greater danger. Republicans told us in Project 2025 that they would come for Medicaid—and this is the rare case when the GOP has actually kept its word, putting at risk the roughly 80 million Americans who rely on it. Americans in red states and blue, in big cities and small towns—folks who may have never heard of RFK Jr., but who will certainly feel the effect when he rips away the care their family so desperately needs.

Medicaid is a lifeline for kids, for pregnant women, for people in nursing homes, for Americans with disabilities. But Republican’s don’t seem to care about any of that. It’s obvious that Donald Trump has never stayed up late at night hunched over the kitchen table, with a calculator in one hand and a medical bill in the other, praying to figure out a way to afford his child’s insulin.

No. Of course not.

With every passing day, it becomes clearer and clearer that Republicans care more about tax breaks for the billionaires they pal around with on the golf course than prescriptions for the middle-class folks who actually work at Mar-a-Lago.

And while that teacher in Peoria lays awake at night, trying to work out how she can afford her father’s home care now that he can no longer get those services through Medicaid… While that new mom in Chicago who’s just learned she has stage 3 cancer is trying to find a second job so she can afford both diapers for her newborn and her own chemotherapy… Donald Trump and Elon Musk will be too busy lining their already-full pockets to care.

To my colleagues on the other side of the aisle: I am sure many of you have faced health crises of your own. I’m sure many of you have had a parent who’s been sick or a nephew who’s been in a car crash… a spouse who’s needed an emergency C-section or a child who’s relied on an autoimmune injector. Imagine if your loved one hadn’t had care they could rely on in that moment.

Then ask yourself how you can sleep soundly tonight if you vote to further the agenda of a couple rich guys who so clearly don’t care about making America healthy—they only care about tipping it even more in favor of the wealthy. They’re not bringing back the good ole days of Reagan. They’re just bringing back the days of dying from the measles.

And they’re certainly not making America great again. They’re making America sick again. That’s the Trump-Kennedy promise.

I care about my constituents’ ability to afford their prescription meds. Their ability to get the vaccines that’ll keep them alive through the next pandemic. Their ability to survive those worst-case-scenario health moments without going broke in the process.

So for all those reasons and a thousand more, I will be voting no on Robert F. Kennedy Jr’s nomination. If my Republican colleagues care about any one of those things, too, then they will have no choice but to do the same. Thank you.

-30-
MIL OSI USA News –
February 13, 2025
MIL-OSI USA: In Forceful Senate Floor Speech, Murray Lays Out Real Dangers of Confirming RFK Jr., Calls on Colleagues to “Show Some Courage,” Reject Anti-Vaccine Conspiracy Theorist as Top Health Official

US Senate News:

Source: United States Senator for Washington State Patty Murray
Murray: “If you think RFK Jr. will change who he is, you are lying to yourself… If you do not draw a line somewhere, you will cross every line you could ever imagine. You will be pushed further and further into accepting things you never thought you would—things you never thought you could.”
ICYMI: In Senate Hearing, RFK Jr. Refuses to Say HPV Vaccine is Safe to Sen. Patty Murray, Pressed on Credible Accusation of Sexual Assault
Murray, a longtime congressional leader on health care who has led hearings on addressing vaccine hesitancy, has been a leading vocal opponent of RFK Jr.’s nomination—speaking out on the Senate floor, holding events, raising the alarm after meeting with him
*** VIDEO of Senator Murray’s floor speech HERE***
Washington, D.C. — Today, U.S. Senator Patty Murray (D-WA), a senior member and former Chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, took to the Senate floor to warn of the very real dangers that lie ahead if Republicans insist on confirming RFK Jr. as Secretary of the U.S. Department of Health and Human Services (HHS) and urge her colleagues to “show some courage… show some conscience” and vote against this nomination.
Murray laid out the many ways RFK Jr. could undermine vaccines as HHS Secretary—as well as so much else that’s at stake with his confirmation. Murray pointed out that, if confirmed, there will be nothing stopping RFK Jr. from firing the CDC’s entire vaccine advisory committee—responsible for making recommendations about vaccines and indirectly determines which vaccines must be covered by insurance—and replacing them all with vaccine skeptics. RFK Jr. will also oversee FDA, another agency he has repeatedly tried to discredit and attack—and where he has said he plans to fire hundreds of scientists on Day One.
“My colleagues should know better. They do know better,” said Murray on the Senate floor. “But they are looking the other way. They are choosing to pretend like it is in any way believable that RFK Jr. won’t use his new power to do exactly the thing he has been trying to do for decades—undermine vaccines.”
Murray spoke about how RFK Jr. will also have jurisdiction over NIH, where he could redirect funds away from promising cures, or make good on his plan to fire hundreds of researchers and pause infectious disease research. Pointing to Donald Trump and Elon Musk’s’ recent attacks on NIH biomedical research funding, Murray said: “At a time when lifesaving research like this is already under attack from the President and the richest man in the world, no one who truly values medical research should vote to install one of the biggest attackers of medical science as the Secretary of Health and Human Services.”
Murray also spoke about health insurance—another huge responsibility for HHS. “Last time Trump was in office, we saw millions of people lose their health coverage,” Murray said. “The uninsured rate went up after years of hard-won progress, and we all know he still wants to rip up the Affordable Care Act—driving up costs and kicking people off their coverage. And there’s no reason to think Mr. Kennedy will stand up to that effort. Indeed, there is no reason to think he has the experience and understanding of the system to do so. During his committee hearings, RFK Jr. confused Medicare and Medicaid—basic stuff—and failed to describe the components of Medicare.”
Murray also hammered how RFK Jr. poses an enormous risk to reproductive health care in America—pointing out that not only did RFK Jr. confess to having no real understanding of the Department’s role in enforcing Americans’ right to emergency care, but he showed he will be totally open to Republicans’ efforts to rip away access to medication abortion nationwide.
Also noting the danger of putting RFK Jr. in charge of pandemic threats, Murray emphasized that “We cannot take this man at his word—something he has changed and gone back and forth on time and again. But we can take him at his record—which is that he has consistently undermined vaccine confidence and even profited from it.”
“I cannot tell my colleagues enough: this isn’t a game, this is not a political role without consequence, the Health Secretary has real power over whether Americans can get basic information and care that impacts whether they live or die,” Murray continued.
“So if my colleagues are feeling the pressure from President Trump or if they are feeling the weight of the richest man in the world on their backs, I would warn them: this will certainly not be the last test we face here in the Senate… If you do not draw a line somewhere, you will cross every line you could ever imagine. You will be pushed further and further into accepting things you never thought you would—things you never thought you could.
“I think most of my colleagues know what is really at stake here. I think most of my colleagues know what sort of man RFK Jr. is and what sort of damage he could do if confirmed. There are political realities, we all get that—but there is also right and wrong… So, I urge all my colleagues to show some courage. I urge them to show some conscience. I urge them to join me in voting NO on RFK Jr.’s nomination,” Murray concluded.
When President-elect Donald J. Trump first announced his intention to select Robert F. Kennedy Jr. as Secretary of HHS, Murray immediately and forcefully condemned the move—and she has consistently spoken out and laid out for her colleagues the case against his nomination since, including in a lengthy Senate floor speech earlier this month—VIDEO HERE. Murray met with RFK Jr. on January 15th and released a statement afterward reiterating her opposition to his nomination and urging her colleagues, “to be honest with themselves about the stakes of putting one of the anti-vaccine movement’s loudest, proudest champions in charge of HHS and join me in opposing RFK Jr.’s nomination.” In December, Murray held a roundtable discussion at UW Medicine on the importance of scientific research and vaccines—especially for children—and spoke about how having RFK Jr. lead HHS would threaten Americans’ health and safety. At the hearing on his nomination before the Senate HELP Committee, Senator Murray pressed RFK Jr. to acknowledge that the HPV vaccine was safe and effective—he would not—and respond to credible accusations of sexual assault.
As a longtime appropriator and former Chair of the Senate HELP Committee, Murray has long fought to boost biomedical research, strengthen public health infrastructure, and make health care more affordable and accessible. Over her years as a senior member of the Appropriations Committee, she has secured billions of dollars in increases for biomedical research at the National Institutes of Health, and during her time as Chair of the HELP Committee she established the new ARPA-H research agency as part of her PREVENT Pandemics Act to advance some of the most cutting-edge research in the field. As Chair of the HELP Committee, Murray was also instrumental in crafting the American Rescue Plan Act, including its landmark investments in public health and health care. Senator Murray was also the lead Democratic negotiator of the bipartisan 21st Century Cures Act, which delivered a major federal investment to boost NIH research, among many other investments. Murray is also the lead sponsor of the Public Health Infrastructure Saves Lives Act (PHISLA), legislation to establish $4.5 billion in dedicated, annual funding for a grant program to build up and maintain the nation’s public health system across the board.
In 2019, Senator Murray co-led a bipartisan hearing in the HELP Committee on vaccine hesitancy and spoke about the importance of addressing vaccine skepticism and getting people the facts they need to keep their families and communities safe and healthy. Ahead of the hearing, as multiple states were facing measles outbreaks in under-vaccinated areas, Murray sent a bipartisan letter with former HELP Committee Chair Lamar Alexander (R-TN) pressing the Centers for Disease Control and Prevention (CDC) Director and HHS Assistant Secretary for Health on their efforts to promote vaccination and vaccine confidence.
Senator Murray’s full remarks on the Senate floor, as delivered are below and HERE:
“Mr. President, the American people are watching now with alarm—because the vast majority of people know: vaccines are safe, they’re effective, they are lifesaving.
But we are now on the verge of confirming, as our nation’s highest health official, a man who has spent considerable time, money, and effort undermining that basic fact.
“A man who has abused his platform by refusing to acknowledge the well-established science that shows that vaccines arenot linked to autism. Fear about that point—fueled by RFK Jr. and others peddling misinformation—is a leading reason that parents do not get their kids vaccinated against preventable, dangerous diseases.
“That’s why elevating a man like RFK Jr. to lead HHS would be so dangerous. Just giving him any platform to spread vaccine doubt is dangerous. But to give him one of the biggest megaphones in the world? It is truly shameful that we even are debating this.
“My colleagues should know better. They actually do know better. They are looking the other way. They are choosing to pretend like it is in any way believable that RFK Jr. won’t use his new power to do exactly the thing he has been trying to do for decades—undermine vaccines.
“Never mind the fact that CDC has already modified webpages with information about vaccines and other vital public health information—which a federal judge has now ordered the Trump Administration to restore.
“Never mind that the Trump administration is also, reportedly, planning widespread and significant layoffs—layoffs—at CDC and across HHS.
“This is how RFK Jr. substitutes his own beliefs for science. So, when the vaccine conspiracies start swirling—and RFK Jr. turns HHS into ground zero for misinformation—‘I had no idea’ is not going to be an excuse for confirming him.
“Because at the HELP Committee hearing, the Chair pressed him repeatedly about the debunked claim that vaccines cause autism. And when RFK Jr. said he needed to ‘see the evidence,’ he was shown the evidence. But, to no one’s surprise, he did not keep his word, admit he’d been wrong, and spread the good news that vaccines do not cause autism.
“He has had two weeks since that hearing to look at the same settled science as everyone else—crickets. But he won’t hesitate to quote the latest anti-vax conspiracy. He is totally up to speed on that front.
“Are my colleagues really buying this guy will take an impartial look at the science?
“If you think RFK Jr. will change who he is, you are lying to yourself. He has given no evidence to suggest that—and all the evidence in the world to the contrary.
“Given his long, and growing track record, we cannot just pretend if RFK Jr. finally gets power to undermine vaccines—a cause that he has dedicated a considerable amount of time and effort to—that he’ll just give it up. That is not believable.
“And I know I’ve been talking a lot about vaccines—because it is so obviously alarming—but the responsibility he would have goes far beyond that.
“So, let’s break some of this down—both the ways he could undermine vaccines as HHS Secretary, and the other responsibilities that would be at stake.
“To start with, the CDC is under HHS. That means that the Secretary directly appoints people to CDC’s vaccine advisory board. That board is responsible for making recommendations about vaccines—and it is those recommendations that determine whether or not certain vaccines have to be covered by insurance.
“So, simply put: changing those recommendations will change what vaccines millions of Americans, including kids, will be able to get from their health care provider.
“If he is confirmed, there would be nothing stopping RFK Jr. from firing the entire board and replacing them all with vaccine skeptics.
“After all, he has said many times, and in many ways, he thinks CDC is corrupt and bought by pharma—as usual, by the way, without any evidence.
“RFK. Jr. would also oversee the Food and Drug Administration; that is another agency he has repeatedly tried to discredit and attack—where he says he plans to fire—fire!—hundreds of scientists on Day One. And an agency that plays the crucial role of making sure our drugs and our treatments—including vaccines—are safe and effective.
“Not only would Mr. Kennedy have a key perch from which he could undermine vaccines on a scale like never seen before, he could also use his platform to peddle quack treatments with no basis in science.
“RFK Jr. would also have jurisdiction over NIH. That alone means influence over billions of dollars in medical research—research that is responsible for a significant portion of our economy, and more importantly, research that patients are desperately hoping will help them find cures.
“But RFK Jr. could redirect those funds to promote his favorite pet conspiracies instead of promising cures.
“Or he could make good on his plan to fire hundreds of researchers and pause infectious disease research—for eight years. It should go without saying: viruses aren’t going to take a break.
“And here’s the thing—the attacks on medical research are now already happening under Trump. From his day one Executive Orders, President Trump has already been threatening medical research.
“Suddenly, all of our grants are at risk because they are looking at addressing ‘barriers to care’ or understanding why Black and Native American women have higher maternal death rates.
“And now—President Trump also is trying to illegally, arbitrarily, and suddenly change NIH guidelines to set an unrealistically low cap on indirect cost rates. That would mean researchers are laid off, studies canceled—including lifesaving clinical trials—and kids are not able to get the treatment they need.
“All because President Trump and Elon Musk don’t seem to understand how we actually fund important research, and couldn’t even be bothered to find out before taking an axe to medical research labs.
“At a time when lifesaving research like this is already under attack from the President, and the richest man in the world, no one who truly values medical research should vote to install one of the biggest attackers of medical science as the Secretary of Health and Human Services.
“And, M. President, insurance is another huge portfolio for HHS. Last time Trump was in office, we saw millions of people lose their health care coverage. The uninsured rate went up after years of hard-won progress, and we all know he still wants to rip up the Affordable Care Act—which will drive up costs and kick people off their coverage.
“There’s no reason to think Mr. Kennedy will stand up to that effort. Indeed, there is no reason to think he has the experience and understanding of the system to actually do so.
“During his committee hearings, RFK Jr. confused Medicare and Medicaid—this is basic stuff! He failed to describe the components of Medicare.
“And yes, Mr. President, I also absolutely have to talk about abortion care. This is of grave importance—especially right now.
“In his hearings, not only did RFK Jr. confess to having no real understanding of EMTALA—that is a law which requires patients have access to lifesaving emergency care including, in some cases, abortion care—he also showed that he will be totally open to Republicans’ fact-free efforts to rip away access to medication abortion.
“Like so many other issues that RFK Jr. is simply wrong about, the science on that has been settled for many years now.
“Mr. Kennedy made clear though, he is very open to revisiting access to the abortion pill, based on a Republican argument against the science that basically boils down to: ‘Nuh uh, nuh uh!’
“Putting up barriers to accessing the abortion pill—or ripping it off the market completely, as Republicans have made very clear they want to do—would be absolutely devastating.
“And let’s not forget about pandemic threats. The lies that RFK Jr. spread during the last pandemic already make clear he is not the man to do this job. But if that weren’t enough, when there was a pandemic threat response planning session for this new Administration—he skipped it! He didn’t go! It would almost be comical if this wasn’t so serious.
“Mr. President, everywhere you look, everything about this nominee is so concerning.
“We cannot take this man at his word—something he has changed and gone back and forth on time and time again. But we can take him on his record—which is that he has consistently undermined vaccine confidence and, by the way, note: he even profited from that.
“And we can take the threat of what he might do seriously, especially given the alarming things that are already happening.
“If RFK Jr. gives you his word of honor, that he won’t freeze research—well guess what? We are already seeing the Trump Administration totally upend medical research. Thanks to the Trump funding freeze, NIH hasn’t issued any grant awards in weeks!
“If RFK Jr. swears that he is not going to take down information about vaccines, that he is not going to silence experts, well don’t look now—but the Trump Administration has already taken down or changed CDC pages about vaccines. They have already silenced public health experts.
“If RFK Jr. pinky promises you that he won’t undermine medical science or studies, and he won’t ignore global health threats, well, you might want to sit down for this—but President Trump has completely demolished our global health aid work. He has already completely demolished it.
“The fallout is utterly heart wrenching. Already we know of a woman who died—because the USAID-supported hospital she went to for oxygen was forced to discharge her because they got a ‘stop-work’ order from the Trump administration.
“It is not clear if she was the first death caused by Trump’s complete freeze, but there is no question, she will not be the last.
“And Mr. President—let me make a really important point here: it is not just people across the world who will be affected by this.
“There was a study being done on a new HIV treatment with thousands of volunteers, a study being done already having a thousand volunteers doing the treatment. But now, without their regular injections, which are cut off because of Trump’s move, there is going to be too little of the drug in their system to protect those people from HIV—but enough of the drug that if they contract HIV, it could mutate to become drug resistant.
“So, for all the absolutely unhinged conspiracies we have heard about medical research from RFK Jr. and the like, where is the concern for this actual risk, in this actual study, happening right now all because President Trump cut off foreign assistance?
“RFK Jr. has been silent about that risk, silent about how wrong that is—and so, even as he is making these empty promises on one hand to some of our colleagues, he is already standing by as President Trump breaks them on the other hand.
“Oh, and here’s one more—if RFK Jr. says he is going to consult you on health care personnel, please do not be fooled.
“Look, I don’t know why my colleagues need me to tell them this—I like to think we have some pretty smart people around here—but this vote, RFK Jr.’s own nomination, this is your consultation on health care personnel. Not some made up promise for later. This is the point you have the most power.
“Whatever he might say, you don’t get to choose who RFK Jr. will appoint to this or that—heck, he doesn’t get to choose who President Trump appoints.
“The decision you get to make, all of us on this floor get to make, is the decision on this floor before us right now. You get to choose who you vote to confirm. And you will have to live with that decision.
“And, if you ignore the warning signs, and confirm RFK Jr.—then, when the wheels fall off the wagon, you may try to tell yourself you were lied to, but you knew who you were dealing with. You knew who you were dealing with. You knew what he has said before, and what he has refused to say.
“You had all the knowledge you needed to do the right thing.
“I cannot tell my colleagues enough: this is not a game, this is not a political role without consequence. The Health Secretary has real power over whether Americans can get basic information and care that impacts whether they live or die.
“As I have tried to drive home throughout this process—vaccines save lives. That is not a question. It is not a slogan. It is a fact.
“If, when parents look to you, worried about their newborn, wanting to do what is best for their baby, and trusting your advice as a public health leader—if you cannot tell them the same truth that centuries of science and experience tells us, which is that vaccines are safe, effective, and lifesaving, then you have absolutely no business leading the Department of Health and Human Services. None.
“And so, just as I did at the hearing, I want to warn all of my colleagues: by merely voting to confirm Mr. Kennedy, we would be telling our constituents he is worth listening to on vaccines. That alone will get people killed—before he even lifts a finger.
“Because he does not even need the levers of power to get people killed—all he needs is a megaphone.
“To affirm his views by voting to confirm him as our highest health official—let’s not mince words about what that will mean.
“When babies die from whooping cough because parents weren’t sure the vaccine was safe—will you be able to look them in the eye? When the flu sweeps our nursing homes, when measles sweeps through our communities—will it be worth it?
“Mr. President, I will end on this—I’m sure there are plenty of members who know perfectly well just how dangerous it would be to confirm RFK Jr. They don’t need to hear it from me—in fact, some of them may even know the danger better than I do.
“But here’s what I do know: conscience is a muscle. Courage is a muscle. The less you use them, the more they fade away.
“So if my colleagues are feeling the pressure from President Trump or if they are feeling the weight of the richest man in the world on their backs on this vote, I would warn them: this will certainly not be the last test we face here in the Senate.
“Giving into pressure now won’t make it go away. It won’t soften the pressure you face later, and it will not strengthen your resolve when the stakes are higher. It will just show: pressure works.
“If you do not draw a line somewhere, you will cross every line you could ever imagine. You will be pushed further and further into accepting things you never thought you would—things you thought you never could.
“I think most of my colleagues know what is really at stake here. I think most of my colleagues knowwhat sort of man RFK Jr. is, and what sort of damage he could do if confirmed.
“There are political realities, we all get that—but there is also right and wrong. There is also fact and fiction.
“There is people staying healthy, and people dying pointlessly—kids dying pointlessly—from diseases that we can prevent, because they thought Congress took its job vetting our health secretary seriously.
“So, M. President, I urge all my colleagues to show some courage. I urge them to show some conscience. I urge them to vote NO on RFK Jr.’s nomination.”

MIL OSI USA News –

February 13, 2025
MIL-OSI: Partners Value Investments Inc. Announces Normal Course Issuer Bids

Source: GlobeNewswire (MIL-OSI)

TORONTO, Feb. 12, 2025 (GLOBE NEWSWIRE) — Partners Value Investments Inc. (the “Corporation”) (TSXV: PVF.WT. PVF.PR.V), a subsidiary of Partners Value Investments L.P. announced today that it has received approval from the TSX Venture Exchange (the “Exchange”) for normal course issuer bids (the “Bids”) to purchase up to 1,396,407 of its share purchase warrants (the “Warrants”), representing approximately 5% of its currently outstanding Warrants; and to purchase up to 3,533,558 of its Class A preferred shares, series 1 (the “Preferred Shares”), representing approximately 5% of its currently outstanding Preferred Shares. The Bids will be effective from February 14, 2025 to February 13, 2026, or such earlier date that the Corporation completes its purchases.

Purchases by the Corporation pursuant to the Bids will be made by its designated broker, RBC Capital Markets, through the facilities of the Exchange, other designated exchanges and alternative trading systems in Canada. The price which the Corporation will pay for any Warrants or Preferred Shares purchased will be the market price of the Warrants and Preferred Shares at the time of acquisition. Any Warrants and Preferred Shares acquired through the Bids will be cancelled. As of January 31, 2025, there were 27,928,149 Warrants and 70,671,137 Preferred Shares outstanding.

The Corporation believes that, from time to time, the market price of the Warrants and Preferred Shares may not adequately reflect their value. In such circumstances, the Corporation believes that its outstanding Warrants and Preferred Shares may represent an appropriate and desirable use of its available funds.

In connection with the Bids, the Corporation will enter into an automatic purchase plan with its designated broker on February 13, 2025. The automatic purchase plan will allow for the purchase of Warrants and Preferred Shares when the Corporation would not ordinarily be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Outside of these periods, Warrants and Preferred Shares will be repurchased in accordance with management’s discretion and in compliance with applicable law.

For further information, contact Investor Relations at ir@pvii.ca or 416‐643-7621.

Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. Expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking information and forward-looking statements.

Although the Corporation believes that its anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond its control, which may cause the actual results, performance or achievements of the Corporation to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements and information include, but are not limited to: the financial performance of Brookfield Corporation and Brookfield Asset Management Ltd., the impact or unanticipated impact of general economic, political and market factors; the behavior of financial markets, including fluctuations in interest and foreign exchanges rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation; changes in tax laws, catastrophic events, such as earthquakes, hurricanes, or pandemics/epidemics; the possible impact of international conflicts and other developments including terrorist acts; and other risks and factors detailed from time to time in the Partnership’s documents filed with the securities regulators in Canada.

The Corporation cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on the Corporation’s forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statements and information, whether written or oral, that may be as a result of new information, future events or otherwise.

The MIL Network –

February 13, 2025
MIL-OSI Australia: School year starts with safer school zones across regional NSW
Source: Australian Executive Government Ministers

As the new school year gets underway, parents and students across regional NSW can feel reassured knowing that hundreds of school zones are now safer following upgrades delivered through the School Zone Infrastructure Sub Program.

Since its launch in 2020, this over $40 million investment by the Australian and NSW governments has enabled the NSW Government and local councils to implement 474 critical safety improvements on roads near schools in regional and rural areas.

These improvements have enhanced safety and accessibility in school zones, making it easier for both drivers and pedestrians to navigate these areas.

In towns and communities across regional NSW, these upgrades include:
- raising pedestrian ‘wombat’ crossings and pedestrian ‘blisters’
- creation of “kiss and drop” locations along with installing signage
- installation of pedestrian refuges and zebra crossings
- installation of new kerb ramps, pedestrian fencing and lighting
- installation of traffic signals
- installation and upgrades of footpaths and shared paths
- signage upgrades
- repainting and replenishing faded “Dragon’s Teeth” markings on roadways
- guttering and pathway to provide safe access between bus stop and school.
From Bega to Broken Hill and the Richmond Valley, these road safety infrastructure projects have delivered significant improvements to local schools across regional NSW.

The School Zone Infrastructure Sub Program is part of a broader $1.18 billion investment from the Australian and NSW Governments under the Road Safety Program and has played a crucial role in enhancing safety.

These projects were designed to protect vulnerable road users, reduce road trauma and save lives, and supported more than 2,500 direct and indirect jobs, as the economy recovered from the COVID-19 pandemic.

For more information visit the Transport for NSW website here.

Quotes attributable to Federal Assistant Minister for Regional Development, Anthony Chisholm:

“Important investments like these will keep students and parents safe on the streets that surround NSW schools, and are part of our collective commitment to significantly reduce the number of incidents on our roads.

“I’d like to thank the NSW Government for working constructively with us on road safety projects such as these, which are critical to helping bring down the number of lives lost on NSW roads.

“These upgrades form part of the Federal Government’s commitment under the Road Safety Program to work in partnership with the states and territories to fund priority road safety works across the nation.”

Quotes attributable to NSW Minister for Regional Transport and Roads, Jenny Aitchison:

“Ensuring the safety of our students as they travel to and from school is a high priority for the NSW Government. The enhancements made through the School Zone Infrastructure Sub Program will not only protect our young road users but also provide peace of mind for parents and caregivers.

“Our collaboration with the Federal Government and local councils has been instrumental in delivering these vital safety improvements. From raising pedestrian crossings to installing new signage, every enhancement is designed to make our roads safer for everyone.

“As we welcome students back to school, let’s remember that road safety is a shared responsibility. I urge all drivers to stay vigilant in school zones, ensuring our children arrive at school safely.”

MIL OSI News –
February 13, 2025
MIL-OSI United Nations: Policies to Bolster Social Resilience in Context of More Frequent, Complex Crises among Topics Discussed, as Commission for Social Development Continues Session

Source: United Nations General Assembly and Security Council

During one of two round-table discussions held today by the Commission for Social Development, panelists emphasized the importance of governance, preparedness and investment in human capital to strengthen “social resilience” — the ability of individuals and societies to prevent, absorb, adapt and recover positively from crises.

The Commission — established in 1946 by the Economic and Social Council as one of its functional commissions — advises the United Nations on social development issues, and its sixty-third session will run through 14 February.

The first panel discussion, titled “Policies to bolster social resilience in the context of more frequent and complex crises”, featured presentations that together offered a comprehensive understanding of the multidimensional nature of resilience and the policy actions needed to reinforce it.

“The sixty-third session of the Commission for Social Development comes at a pivotal time as we reflect on the legacies of the World Summit for Social Development held three decades ago in Copenhagen,” said Moderator Angela Kawandami, Permanent Secretary at the Ministry of Community Development and Social Services of Zambia. While the principles of social inclusion, poverty eradication and equity remain as vital as possible, the global landscape has transformed significantly, presenting new and compounding challenges that demand urgent and innovative solutions today, she said, adding that crises — more frequent, interconnected and complex, spanning geopolitical, economic, health and environmental spheres — are testing the resilience of societies and institutions.

Meir Bing, Chief Executive Officer at the Open University of Israel, presented a case study of building resilience in minority populations in his country, where the number of minority students in higher education more than doubled in the last decade. He said that a year ago, he was General Director of the Ministry of Social Equality in charge of minorities. Of the 10 million people in his country, 2 million are religious and ethnical minority groups, including Muslim, Christian and Druze, he said, adding that many of them are young and face socioeconomic challenges.

He highlighted the three keys to building resilience in vulnerable populations: fostering trust between Government and social and business sectors; enhancing infrastructure and public services; and creating communities. Sharing how educational and other infrastructure and socioeconomic projects are expanded in the country’s local communities, he said that the percentage of students from minority groups in bachelor’s degree programmes increased from 10 per cent in 2010 to nearly 20 per cent in 2023.

Marek Kamiński, explorer and founder of the Kaminski Foundation, said that during his expeditions, he learned that physical strength isn’t enough, stating: “The real fight happens in the mind, with fear and doubt. We all need to ask, are we strong enough inside to face the challenges ahead?” Today’s world needs practical solutions to help people handle crises. That’s why he created LifePlan Academy, a programme that teaches mental resilience, stress management and how to adapt to challenges. It’s a practical tool that works in any country with any culture, he said, stressing: “With the right tools and support, anyone can overcome challenges and achieve their goals.”

Michael Woolcock, Lead Social Scientist in the Development Research Group at the World Bank, said that development policies are as effective as the shared legitimacy they enjoy. Development policies will struggle, where societal groups despise one another, where elite factions use lies and violence to secure power, where there is little coherence or trust between local and national authority, and where Governments reject international law and covenants to which they are a signatory. “So all these nice policies that we come up with — unless they can engage with these local contexts and imbue them with the legitimacy they need to do their difficult work — are probably going to struggle,” he said.

Obiageli Ezekwesili, President of Human Capital Africa, founder of the School of Politics Policy and Governance, and Senior Economic Adviser at the Africa Economic Development Policy Initiative, said that “democracy is in crisis more than it had ever been”. The power of society to be resilient depends on how everyone feels cared for within society. Today’s democratic processes are exclusionary in many ways. That’s because the tiny fraction of people who exercise political leadership in many countries have become monopoly democrats. “We must fix politics,” she said, noting a strong correlation between the quality of politics and economic performance. “Let’s keep an eye on the United States of America,” she added.

Michael Woolcock, Lead Social Scientist, World Bank, served as moderator for the second panel, which focused on “Universal rights-based social protection systems that adapt to evolving risks and support social resilience”. “For our present purposes, we are going to recognize that social resilience refers to the capacity of individuals and societies to prevent, resist, absorb, adapt, respond and recover positively, efficiently and effectively when faced with a wide range of long-term prospects for sustainable development, peace and security, human rights and well-being for all,” he said before commencing the panel discussion.

Danilo Türk, President of Club de Madrid and former President of Slovenia, stressed the need to make sure that social development is guided in a way that promotes the full realization of human rights. “This means adopting an approach which anticipates and addresses the vulnerabilities of people,” he went on to stress. That must include the consequences of climate change and its effect on populations, especially those vulnerable to displacement. Innovations like digital cash transfers, mobile health services and data driven risk assessment can significantly improve service delivery, particularly for marginalized and remote populations. Social protection systems must consider the interests of vulnerable segments of societies, particularly women, youth, older people and persons with disabilities.

Angela Chomba Kawandami, Permanent Secretary at the Ministry of Community Development and Social Services, Zambia, said that social protection systems are central to addressing vulnerabilities, reducing poverty and mitigating the impacts of various risks such as climate change, pandemics and economic crises. “Social protection systems in Zambia are designed to address both short-term needs and long-term vulnerabilities,” she added. These systems include cash transfers, food assistance and social insurance schemes. “The goal is to ensure that individuals, especially those in our rural areas, older persons, persons with disabilities and other vulnerable groups, have access to basic services and support mechanisms,” she emphasized. Zambia’s social protection programmes aim to reduce vulnerability by providing financial support to households living below the poverty line. Climate change is also included into Zambia’s protection system as the phenomenon poses an increasing threat with more frequent droughts and floods.

Héctor Ramón Cárdenas Molinas, Executive Director of the Technical Unit of the Social Cabinet of the President of Paraguay, said that extreme weather events cause major damage and loss. “Most of them are linked to climate events,” he said, noting their high economic and social impact. Exposure depends not only on geographic location but also on the development policies and adaptation measures taken to mitigate the risks of climate change. “It is absolutely essential that we integrate policies and strategies that promote sustainable and resilient development,” he said. Underscoring other initiatives in health, education and poverty eradication, he said Paraguay aims to ensure that services meet very high standards in terms of efficiency and effectiveness. “The main challenge remains financing,” he added.

Edgilson Tavares de Araújo, Ministry of Development and Social Assistance, Brazil, said that Brazil’s social protection system is based on the principles of universality, equity and democracy. “Since 2023, we have seen a drop of 84 per cent in severe food insecurity, according to a 2024 UN survey,” he added. With the creation of a global alliance to fight hunger and poverty, Brazil hopes to continue to make progress. A strong State working with a healthy civil society must be resilient to truly transform society. “We are increasing our budgetary commitments and broadening our global alliance to combat hunger and poverty,” he went on to say. Brazil is committed to providing decent employment and “an economy of solidarity” which can help build social resilience. “Being protected means having someone to rely on,” he added.

MIL OSI United Nations News –

February 13, 2025

MIL-OSI: Farmers & Merchants Bancorp, Inc. Reports 2024 Fourth-Quarter and Full-Year Financial Results

Source: GlobeNewswire (MIL-OSI)

ARCHBOLD, Ohio, Feb. 12, 2025 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2024 fourth quarter and twelve months ended December 31, 2024.

2024 Fourth Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):

87 consecutive quarters of profitability
Net income increased 51.2% to $8.4 million, or $0.61 per basic and diluted share, from $5.5 million, or $0.41 per basic and diluted share
Asset quality remains at historically strong levels with nonperforming loans of only $3.1 million at December 31, 2024, compared to $22.4 million at December 31, 2023
Net charge-offs to average loans were 0.00%
Allowance for credit losses was 826.70% of nonperforming loans
Tier 1 leverage ratio was 8.12%
Net interest margin increased 27 basis points to 2.84%
Efficiency ratio improved to 59.82%, compared to 69.23% for the same period a year ago

2024 Full-Year Financial Highlights Include (on a year-over-year basis unless noted):

Total loans, net were $2.56 billion at December 31, 2024, compared to $2.58 billion at December 31, 2023 and $2.54 billion at September 30, 2024
Total assets increased 2.5% to $3.36 billion
Deposits increased 3.0% to a record $2.69 billion
Stockholders’ equity increased 5.9% to $335.2 million
Net interest income after provision for credit losses increased 7.5% to $85.6 million
Return on average tangible equity was 8.91%
F&M ended 2024 with excellent liquidity levels, and over $690 million in contingent funding sources, and a cash-to-assets ratio of 5.3%, compared to 4.3% at December 31, 2023
Dividend raised 3.8% year-over-year, representing the 30^th consecutive annual increase in the Company’s regular dividend payment since 1994

Lars B. Eller, President and Chief Executive Officer, stated, “Our strong 2024 financial performance reflects solid execution of our multi-year strategic plan, as we have remained focused on continual improvements, managing the items under our control, and providing our customers and communities with outstanding, and local financial services. Thanks to the unwavering dedication of our team and the trust of our customers, F&M’s financial and operating results strengthened throughout 2024. This performance creates a solid foundation and further solidifies F&M’s position as a leading community bank in the Ohio, Indiana and Michigan markets we serve.”

Mr. Eller continued, “Strong earnings growth in 2024 was driven by the success of ongoing strategies aimed at expanding our net interest margin, maintaining excellent asset quality, and driving efficiencies across our business. Core earnings for the 2024 fourth quarter were strong as net interest income after provision for credit losses increased 16.1% year-over-year to a quarterly record of $22.6 million, and noninterest income expanded 4.1% year-over-year to $4.0 million. We believe these trends highlight the improvements we have made to profitability, and we expect these trends to continue in the second half 2025.”

Income Statement
Net income for the 2024 fourth quarter ended December 31, 2024, was $8.4 million, compared to $5.5 million for the same period last year. Net income per basic and diluted share for the 2024 fourth quarter was $0.61, compared to $0.41 for the same period last year. Net income for the 2024 twelve months ended December 31, 2024, was $25.9 million, compared to $22.8 million for the same period last year. Net income per basic and diluted share for the 2024 twelve months was $1.90, compared to $1.67 for the same period last year.

Deposits
At December 31, 2024, total deposits were a record $2.69 billion, an increase of 3.0% from December 31, 2023. The Company’s cost of interest-bearing liabilities was 3.01% for the quarter ended December 31, 2024, compared to 3.02% for the quarter ended December 31, 2023. For the 2024 twelve months ended December 31, 2024, F&M’s cost of interest-bearing liabilities was 3.12%, compared to 2.53% in the prior year reflecting the higher rate environment and growth in interest-bearing checking and savings accounts.

Mr. Eller commented, “Throughout 2024, we pursued strategies aimed at optimizing our deposit base and growing low-cost checking (DDA) deposits. Since the beginning of 2024, we added nearly 7,500 new checking accounts, and benefited from new and expanded relationships at offices that were opened in 2023. As a result, we ended 2024 with a loan-to-deposit ratio of 94.4%, compared to 98.0% at December 31, 2023.”

Loan Portfolio and Asset Quality
“While the demand for loans is high across our markets, our approach to risk and pricing remains prudent. This strategy has contributed to historically strong asset quality over the past two quarters and is a testament to F&M’s risk, lending, and compliance capabilities and high-performing teams. We expect loan growth to increase modestly in 2025, with growth weighted in the back half of the year. In addition, 31.4% of our loan portfolio is subject to reprice in the next 12 months. We believe these favorable trends will contribute to higher net interest income in 2025,” continued Mr. Eller.

Total loans, net at December 31, 2024, decreased 0.7%, or by $19.3 million to $2.56 billion, compared to $2.58 billion at December 31, 2023. The year-over-year decline was driven primarily by lower consumer real estate, consumer, and agricultural real estate loans, partially offset primarily by higher commercial and industrial and agricultural loans. Compared to the quarter ended September 30, 2024, total loans, net at December 31, 2024 increased by 0.9% or $23.5 million.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $3.1 million, or 0.12% of total loans at December 31, 2024, compared to $22.4 million, or 0.87% of total loans at December 31, 2023, and $2.9 million, or 0.11% at September 30, 2024.

F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.2% of the Company’s total loan portfolio at December 31, 2024. In addition, F&M’s commercial real estate office credit exposure represented 5.2% of the Company’s total loan portfolio at December 31, 2024, with a weighted average loan-to-value of approximately 64% and an average loan of approximately $958,100.

F&M’s CRE portfolio included the following categories at December 31, 2024:

CRE Category	Dollar Balance		Percent of CRE Portfolio⁽^*)	Percent of Total Loan Portfolio⁽^*)

Industrial	$	269,315	20.6%	10.5%
Multi-family		233,868	17.8%	9.1%
Retail		219,395	16.7%	8.6%
Hotels		141,514	10.8%	5.5%
Office		134,139	10.2%	5.2%
Gas Stations		70,767	5.4%	2.8%
Food Service		49,246	3.8%	1.9%
Senior Living		31,799	2.4%	1.3%
Development		29,491	2.3%	1.2%
Auto Dealers		28,081	2.1%	1.1%
Other		103,196	7.9%	4.0%
Total CRE	$	1,310,811	100.0%	51.2%

* Numbers have been rounded

At December 31, 2024, the Company’s allowance for credit losses to nonperforming loans was 826.70%, compared to 111.95% at December 31, 2023. The allowance to total loans was 1.07% at December 31, 2024, compared to 1.06% at December 31, 2023. Including accretable yield adjustments, associated with the Company’s prior acquisitions, F&M’s allowance for credit losses to total loans was 1.08% at December 31, 2024, compared to 1.13% at December 31, 2023.

Mr. Eller concluded, “Throughout the new year, we will leverage F&M’s strong banking platform, while continuing to make strategic investments that expanded our operations, capabilities, and services. We believe this will expand operating efficiencies and produce better outcomes for our customers. I am proud of our strong performance in 2024, and expect 2025 to be another good year for F&M.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 5.9% to $335.2 million, or $24.47 per share at December 31, 2024, from $316.5 million, or $23.17 per share at December 31, 2023. The Company’s Tier 1 leverage ratio of 8.12%, remained stable compared to December 31, 2023.

Tangible stockholders’ equity increased to $270.0 million at December 31, 2024, compared to $254.2 million at December 31, 2023. On a per share basis, tangible stockholders’ equity at December 31, 2024, was $17.74 per share, compared to $16.29 per share at December 31, 2023.

For the twelve months ended December 31, 2024, the Company declared cash dividends of $0.8825 per share, representing a 3.8% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 30 consecutive years. For the twelve months ended December 31, 2024, the dividend payout ratio was 46.07% compared to 50.65% for the same period last year.

About Farmers & Merchants State Bank:
F&M Bank is a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in Troy, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

Safe Harbor Statement
Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

Non-GAAP Financial Measures
This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME (Unaudited) (in thousands of dollars, except per share data)

	Three Months Ended															Twelve Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Interest Income
Loans, including fees	$	36,663		$	36,873		$	36,593		$	35,200		$	34,493		$	145,329		$	129,344
Debt securities:
U.S. Treasury and government agencies	1,882			1,467			1,148			1,045			987			5,542			4,090
Municipalities	384			387			389			394			397			1,554			1,598
Dividends	367			334			327			333			365			1,361			882
Federal funds sold	24			7			7			7			8			45			44
Other	2,531			2,833			2,702			1,675			2,020			9,741			3,850
Total interest income	41,851			41,901			41,166			38,654			38,270			163,572			139,808
Interest Expense
Deposits	15,749			16,947			16,488			15,279			15,015			64,463			46,923
Federal funds purchased and securities sold under agreements to repurchase	274			277			276			284			293			1,111			1,474
Borrowed funds	2,713			2,804			2,742			2,689			2,742			10,948			8,876
Subordinated notes	285			284			285			284			285			1,138			1,138
Total interest expense	19,021			20,312			19,791			18,536			18,335			77,660			58,411
Net Interest Income – Before Provision for Credit Losses	22,830			21,589			21,375			20,118			19,935			85,912			81,397
Provision for (Recovery of) Credit Losses – Loans	346			282			605			(289		)	278			944			1,698
Provision for (Recovery of) Credit Losses – Off Balance Sheet Credit Exposures	(120		)	(267		)	(18		)	(266		)	189			(671		)	46
Net Interest Income After Provision for Credit Losses	22,604			21,574			20,788			20,673			19,468			85,639			79,653
Noninterest Income
Customer service fees	237			300			189			598			415			1,324			1,332
Other service charges and fees	1,176			1,155			1,085			1,057			1,090			4,473			4,343
Interchange income	1,322			1,315			1,330			1,429			1,310			5,396			5,318
Loan servicing income	771			710			513			539			666			2,533			4,405
Net gain on sale of loans	223			215			314			107			230			859			699
Increase in cash surrender value of bank owned life insurance	248			265			236			216			216			965			834
Net gain (loss) on sale of other assets owned	22			–			49			–			(86		)	71			(135		)
Net loss on sale of available-for-sale securities	–			–			–			–			–			–			(891		)
Total noninterest income	3,999			3,960			3,716			3,946			3,841			15,621			15,905
Noninterest Expense
Salaries and wages	7,020			7,713			7,589			7,846			6,981			30,168			26,915
Employee benefits	2,148			2,112			2,112			2,171			1,218			8,543			7,520
Net occupancy expense	1,072			1,054			999			1,027			1,187			4,152			3,833
Furniture and equipment	1,032			1,472			1,407			1,353			1,370			5,264			5,022
Data processing	160			339			448			500			785			1,447			3,147
Franchise taxes	312			410			265			555			308			1,542			1,487
ATM expense	328			472			397			473			665			1,670			2,611
Advertising	498			597			519			530			397			2,144			2,606
FDIC assessment	505			516			507			580			594			2,108			1,982
Servicing rights amortization – net	244			219			187			168			182			818			611
Loan expense	236			244			251			229			246			960			1,055
Consulting fees	242			251			198			186			192			877			832
Professional fees	368			453			527			445			331			1,793			1,430
Intangible asset amortization	446			445			444			445			446			1,780			1,780
Other general and administrative	1,465			1,128			1,495			1,333			1,532			5,421			6,373
Total noninterest expense	16,076			17,425			17,345			17,841			16,434			68,687			67,204
Income Before Income Taxes	10,527			8,109			7,159			6,778			6,875			32,573			28,354
Income Taxes	2,146			1,593			1,477			1,419			1,332			6,635			5,567
Net Income	8,381			6,516			5,682			5,359			5,543			25,938			22,787
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities	(7,403		)	11,664			2,531			(1,995		)	13,261			4,797			10,781
Reclassification adjustment for realized loss on sale of available-for-sale securities	–			–			–			–			–			–			891
Net unrealized gain (loss) on available-for-sale securities	(7,403		)	11,664			2,531			(1,995		)	13,261			4,797			11,672
Tax expense (benefit)	(1,554		)	2,449			531			(418		)	2,784			1,008			2,451
Other comprehensive income (loss)	(5,849		)	9,215			2,000			(1,577		)	10,477			3,789			9,221
Comprehensive Income	$	2,532		$	15,731		$	7,682		$	3,782		$	16,020		$	29,727		$	32,008
Basic Earnings Per Share	$	0.61		$	0.48		$	0.42		$	0.39		$	0.41		$	1.90		$	1.67
Diluted Earnings Per Share	$	0.61		$	0.48		$	0.42		$	0.39		$	0.41		$	1.90		$	1.67
Dividends Declared	$	0.22125		$	0.22125		$	0.22		$	0.22		$	0.22		$	0.88250		$	0.85

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands of dollars, except per share data)

	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
				(Unaudited)			(Unaudited)			(Unaudited)
Assets
Cash and due from banks	$	174,855		$	244,572		$	191,785		$	186,541		$	140,917
Federal funds sold	1,496			932			1,283			1,241			1,284
Total cash and cash equivalents	176,351			245,504			193,068			187,782			142,201

Interest-bearing time deposits	2,482			2,727			3,221			2,735			2,740
Securities – available-for-sale	426,556			404,881			365,209			347,516			358,478
Other securities, at cost	14,400			15,028			14,721			14,744			17,138
Loans held for sale	2,996			1,706			1,628			2,410			1,576
Loans, net of allowance for credit losses of $25,826 12/31/24 and $25,024 12/31/23	2,536,043			2,512,852			2,534,468			2,516,687			2,556,167
Premises and equipment	33,828			33,779			34,507			35,007			35,790
Construction in progress	–			35			38			9			8
Goodwill	86,358			86,358			86,358			86,358			86,358
Loan servicing rights	5,656			5,644			5,504			5,555			5,648
Bank owned life insurance	34,872			34,624			34,359			34,123			33,907
Other assets	45,181			46,047			49,552			54,628			43,218
Total Assets	$	3,364,723		$	3,389,185		$	3,322,633		$	3,287,554		$	3,283,229

Liabilities and Stockholders’ Equity
Liabilities
Deposits
Noninterest-bearing	$	516,904		$	481,444		$	479,069		$	510,731		$	528,465
Interest-bearing
NOW accounts	850,462			865,617			821,145			829,236			816,790
Savings	671,818			661,565			673,284			635,430			599,191
Time	647,581			676,187			667,592			645,985			663,017
Total deposits	2,686,765			2,684,813			2,641,090			2,621,382			2,607,463

Federal funds purchased and securities
sold under agreements to repurchase	27,218			27,292			27,218			28,218			28,218
Federal Home Loan Bank (FHLB) advances	246,056			263,081			266,102			256,628			265,750
Subordinated notes, net of unamortized issuance costs	34,818			34,789			34,759			34,731			34,702
Dividend payable	2,996			2,998			2,975			2,975			2,974
Accrued expenses and other liabilities	31,659			40,832			27,825			25,930			27,579
Total liabilities	3,029,512			3,053,805			2,999,969			2,969,864			2,966,686

Commitments and Contingencies

Stockholders’ Equity
Common stock – No par value 20,000,000 shares authorized; issued
14,564,425 shares 12/31/24 and 12/31/23; outstanding 13,699,536	135,565			135,193			135,829			135,482			135,515
shares 12/31/24 and 13,664,641 shares 12/31/23
Treasury stock – 864,889 shares 12/31/24 and 899,784 shares 12/31/23	(10,985		)	(10,904		)	(11,006		)	(10,851		)	(11,040		)
Retained earnings	235,854			230,465			226,430			223,648			221,080
Accumulated other comprehensive loss	(25,223		)	(19,374		)	(28,589		)	(30,589		)	(29,012		)
Total stockholders’ equity	335,211			335,380			322,664			317,690			316,543

Total Liabilities and Stockholders’ Equity	$	3,364,723		$	3,389,185		$	3,322,633		$	3,287,554		$	3,283,229

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES SELECT FINANCIAL DATA

	For the Three Months Ended										For the Twelve Months Ended
Selected financial data	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Return on average assets		0.99%		0.78%		0.69%		0.66%		0.67%		0.78%		0.71%
Return on average equity		10.00%		7.93%		7.13%		6.76%		7.27%		7.98%		7.46%
Yield on earning assets		5.20%		5.27%		5.22%		5.00%		4.93%		5.17%		4.67%
Cost of interest bearing liabilities		3.01%		3.21%		3.18%		3.06%		3.02%		3.12%		2.53%
Net interest spread		2.19%		2.06%		2.04%		1.94%		1.91%		2.05%		2.14%
Net interest margin		2.84%		2.71%		2.71%		2.60%		2.57%		2.72%		2.72%
Efficiency		59.82%		67.98%		69.03%		74.08%		69.23%		67.54%		68.48%
Dividend payout ratio		35.75%		45.99%		52.35%		55.52%		54.23%		46.07%		50.65%
Tangible book value per share	$	17.74	$	17.72	$	16.79	$	16.39	$	16.29
Tier 1 leverage ratio		8.12%		8.04%		8.02%		8.40%		8.20%
Average shares outstanding		13,699,869		13,687,119		13,681,501		13,671,166		13,665,773		13,679,955		13,641,336

Loans	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
(Dollar amounts in thousands)
Commercial real estate	$	1,310,811	$	1,301,160	$	1,303,598	$	1,304,400	$	1,337,766
Agricultural real estate		216,401		220,328		222,558		227,455		223,791
Consumer real estate		520,114		524,055		525,902		525,178		521,895
Commercial and industrial		275,152		260,732		268,426		256,051		254,935
Agricultural		152,080		137,252		142,909		127,670		132,560
Consumer		63,009		67,394		70,918		74,819		79,591
Other		24,978		25,916		26,449		26,776		30,136
Less: Net deferred loan fees, costs and other ⁽¹⁾		(676)		1,499		(1,022)		(982)		517
Total loans, net	$	2,561,869	$	2,538,336	$	2,559,738	$	2,541,367	$	2,581,191


Asset quality data	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
(Dollar amounts in thousands)
Nonaccrual loans	$	3,124	$	2,898	$	2,487	$	19,391	$	22,353
90 day past due and accruing	$	–	$	–	$	–	$	–	$	–
Nonperforming loans	$	3,124	$	2,898	$	2,487	$	19,391	$	22,353
Other real estate owned	$	–	$	–	$	–	$	–	$	–
Nonperforming assets	$	3,124	$	2,898	$	2,487	$	19,391	$	22,353


Allowance for credit losses	$	25,826	$	25,484	$	25,270	$	24,680	$	25,024
Allowance for unfunded		1,541		1,661		1,928		1,946		2,212
Total allowance for credit losses	$	27,367	$	27,145	$	27,198	$	26,626	$	27,236
Total allowance for credit losses/total loans		1.07%		1.07%		1.06%		1.05%		1.06%
Adjusted credit losses with accretable yield/total loans		1.08%		1.10%		1.10%		1.11%		1.13%
Net charge-offs:
Quarter-to-date	$	4	$	68	$	15	$	55	$	531
Year-to-date	$	142	$	138	$	70	$	55	$	551
Net charge-offs to average loans
Quarter-to-date		0.00%		0.00%		0.00%		0.00%		0.02%
Year-to-date		0.01%		0.01%		0.00%		0.00%		0.02%
Nonperforming loans/total loans		0.12%		0.11%		0.10%		0.76%		0.87%
Allowance for credit losses/nonperforming loans		826.70%		879.37%		1016.08%		127.28%		111.95%
NPA coverage ratio		826.70%		879.37%		1016.08%		127.28%		111.95%

⁽¹⁾ Includes carrying value adjustments of $1.1 million as of December 31, 2024, $3.0 million as of September 30, 2024, $612 thousand as of June 30, 2024, $969 thousand as of March 31, 2024 and $2.7 million as of December 31, 2023 related to interest rate swaps

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (in thousands of dollars, except percentages)

	For the Three Months Ended						For the Three Months Ended
	December 31, 2024						December 31, 2023
Interest Earning Assets:	Average Balance		Interest/ Dividends		Annualized Yield/Rate		Average Balance		Interest/ Dividends		Annualized Yield/Rate
Loans	$	2,543,628	$	36,663	5.77	%	$	2,553,023	$	34,493	5.41	%
Taxable investment securities	450,648		2,554		2.27	%	386,931		1,660		1.72	%
Tax-exempt investment securities	18,571		79		2.15	%	24,145		89		1.87	%
Fed funds sold & other	209,307		2,555		4.88	%	142,642		2,028		5.69	%
Total Interest Earning Assets	3,222,154		$	41,851	5.20	%	3,106,741		$	38,270	4.93	%

Nonearning Assets	174,172						189,202

Total Assets	$	3,396,326					$	3,295,943

Interest Bearing Liabilities:
Savings deposits	$	1,548,638	$	9,459	2.44	%	$	1,392,304	$	8,570	2.46	%
Other time deposits	666,896		6,290		3.77	%	701,347		6,445		3.68	%
Other borrowed money	255,490		2,713		4.25	%	265,948		2,742		4.12	%
Fed funds purchased & securities
sold under agreement to repurchase	27,341		274		4.01	%	28,739		293		4.08	%
Subordinated notes	34,799		285		3.28	%	34,683		285		3.29	%
Total Interest Bearing Liabilities	$	2,533,164	$	19,021	3.01	%	$	2,423,021	$	18,335	3.02	%

Noninterest Bearing Liabilities	527,751						567,813

Stockholders’ Equity	$	335,411					$	305,109

Net Interest Income and Interest Rate Spread			$	22,830	2.19	%			$	19,935	1.91	%

Net Interest Margin					2.84	%					2.57	%

Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts


	For the Twelve Months Ended						For the Twelve Months Ended
	December 31, 2024						December 31, 2023
Interest Earning Assets:	Average Balance		Interest/ Dividends		Annualized Yield/Rate		Average Balance		Interest/ Dividends		Annualized Yield/Rate
Loans	$	2,557,213	$	145,329	5.68	%	$	2,491,502	$	129,344	5.19	%
Taxable investment securities	410,764		8,129		1.98	%	394,424		6,204		1.57	%
Tax-exempt investment securities	20,154		328		2.06	%	24,686		366		1.88	%
Fed funds sold & other	176,307		9,786		5.55	%	85,018		3,894		4.58	%
Total Interest Earning Assets	3,164,438		$	163,572	5.17	%	2,995,630		$	139,808	4.67	%

Nonearning Assets	164,464						197,726

Total Assets	$	3,328,902					$	3,193,356

Interest Bearing Liabilities:
Savings deposits	$	1,502,365	$	39,750	2.65	%	$	1,376,318	$	27,424	1.99	%
Other time deposits	663,320		24,713		3.73	%	640,390		19,499		3.04	%
Other borrowed money	262,094		10,948		4.18	%	220,175		8,876		4.03	%
Fed funds purchased & securities
sold under agreement to repurchase	27,750		1,111		4.00	%	35,421		1,474		4.16	%
Subordinated notes	34,755		1,138		3.27	%	34,640		1,138		3.29	%
Total Interest Bearing Liabilities	$	2,490,284	$	77,660	3.12	%	$	2,306,944	$	58,411	2.53	%

Noninterest Bearing Liabilities	513,588						580,931

Stockholders’ Equity	$	325,030					$	305,481

Net Interest Income and Interest Rate Spread			$	85,912	2.05	%			$	81,397	2.14	%

Net Interest Margin					2.72	%					2.72	%

Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (in thousands of dollars, except percentages)

	For the Three Months Ended December 31, 2024													For the Three Months Ended December 31, 2023
	As Reported				Excluding Acc/Amort				Difference					As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$			Yield		$		Yield		$		Yield		$			Yield
Interest Earning Assets:
Loans	$	36,663	5.77	%	$	36,039	5.67	%	$	624		0.10	%	$	34,493	5.41	%	$	33,769	5.29	%	$	724		0.12	%
Taxable investment securities	2,554		2.27	%	2,554		2.27	%	–			0.00	%	1,660		1.72	%	1,660		1.72	%	–			0.00	%
Tax-exempt investment securities	79		2.15	%	79		2.15	%	–			0.00	%	89		1.87	%	89		1.87	%	–			0.00	%
Fed funds sold & other	2,555		4.88	%	2,555		4.88	%	–			0.00	%	2,028		5.69	%	2,028		5.69	%	–			0.00	%
Total Interest Earning Assets	41,851		5.20	%	41,227		5.12	%	624			0.08	%	38,270		4.93	%	37,546		4.84	%	724			0.09	%

Interest Bearing Liabilities:
Savings deposits	$	9,459	2.44	%	$	9,459	2.44	%	$ –			0.00	%	$	8,570	2.46	%	$	8,570	2.46	%	$ –			0.00	%
Other time deposits	6,290		3.77	%	6,290		3.77	%	–			0.00	%	6,445		3.68	%	6,381		3.64	%	64			0.04	%
Other borrowed money	2,713		4.25	%	2,710		4.24	%	3			0.01	%	2,742		4.12	%	2,760		4.15	%	(18		)	-0.03	%
Federal funds purchased and
securities sold under agreement to
repurchase	274		4.01	%	274		4.01	%	–			0.00	%	293		4.08	%	293		4.08	%	–			0.00	%
Subordinated notes	285		3.28	%	285		3.28	%	–			0.00	%	285		3.29	%	285		3.29	%	–			0.00	%
Total Interest Bearing Liabilities	19,021		3.01	%	19,018		3.00	%	3			0.01	%	18,335		3.02	%	18,289		3.02	%	46			0.00	%

Interest/Dividend income/yield	41,851		5.20	%	41,227		5.12	%	624			0.08	%	38,270		4.93	%	37,546		4.84	%	724			0.09	%
Interest Expense / yield	19,021		3.01	%	19,018		3.00	%	3			0.01	%	18,335		3.02	%	18,289		3.02	%	46			0.00	%
Net Interest Spread	22,830		2.19	%	22,209		2.12	%	621			0.07	%	19,935		1.91	%	19,257		1.82	%	678			0.09	%
Net Interest Margin			2.84	%			2.76	%				0.08	%			2.57	%			2.48	%				0.09	%

	For the Twelve Months Ended December 31, 2024													For the Twelve Months Ended December 31, 2023
	As Reported				Excluding Acc/Amort				Difference					As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$			Yield		$		Yield		$		Yield		$			Yield
Interest Earning Assets:
Loans	$	145,329	5.68	%	$	142,627	5.58	%	$	2,702		0.10	%	$	129,344	5.19	%	$	126,133	5.06	%	$	3,211		0.13	%
Taxable investment securities	8,129		1.98	%	8,129		1.98	%	–			0.00	%	6,204		1.57	%	6,204		1.57	%	–			0.00	%
Tax-exempt investment securities	328		2.06	%	328		2.06	%	–			0.00	%	366		1.88	%	366		1.88	%	–			0.00	%
Fed funds sold & other	9,786		5.55	%	9,786		5.55	%	–			0.00	%	3,894		4.58	%	3,894		4.58	%	–			0.00	%
Total Interest Earning Assets	163,572		5.17	%	160,870		5.09	%	2,702			0.08	%	139,808		4.67	%	136,597		4.57	%	3,211			0.10	%

Interest Bearing Liabilities:
Savings deposits	$	39,750	2.65	%	$	39,750	2.65	%	$ –			0.00	%	$	27,424	1.99	%	$	27,424	1.99	%	$ –			0.00	%
Other time deposits	24,713		3.73	%	24,713		3.73	%	–			0.00	%	19,499		3.04	%	19,839		3.10	%	(340		)	-0.06	%
Other borrowed money	10,948		4.18	%	10,964		4.18	%	(16		)	0.00	%	8,876		4.03	%	8,947		4.06	%	(71		)	-0.03	%
Federal funds purchased and
securities sold under agreement to
repurchase	1,111		4.00	%	1,111		4.00	%	–			0.00	%	1,474		4.16	%	1,474		4.16	%	–			0.00	%
Subordinated notes	1,138		3.27	%	1,138		3.27	%	–			0.00	%	1,138		3.29	%	1,138		3.29	%	–			0.00	%
Total Interest Bearing Liabilities	77,660		3.12	%	77,676		3.12	%	(16		)	0.00	%	58,411		2.53	%	58,822		2.55	%	(411		)	-0.02	%

Interest/Dividend income/yield	163,572		5.17	%	160,870		5.09	%	2,702			0.08	%	139,808		4.67	%	136,597		4.57	%	3,211			0.10	%
Interest Expense / yield	77,660		3.12	%	77,676		3.12	%	(16		)	0.00	%	58,411		2.53	%	58,822		2.55	%	(411		)	-0.02	%
Net Interest Spread	85,912		2.05	%	83,194		1.97	%	2,718			0.08	%	81,397		2.14	%	77,775		2.02	%	3,622			0.12	%
Net Interest Margin			2.72	%			2.63	%				0.09	%			2.72	%			2.60	%				0.12	%

Company Contact:	Investor and Media Contact:
Lars B. Eller President and Chief Executive Officer Farmers & Merchants Bancorp, Inc. (419) 446-2501 leller@fm.bank	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

The MIL Network –

February 13, 2025

MIL-OSI: MKS Instruments Reports Fourth Quarter and Full-Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

Quarterly revenue of $935 million, above the midpoint of guidance
Quarterly GAAP net income of $90 million and net income per diluted share of $1.33
Quarterly Adjusted EBITDA of $237 million and Non-GAAP net earnings per diluted share of $2.15, above the midpoint of guidance

ANDOVER, Mass., Feb. 12, 2025 (GLOBE NEWSWIRE) — MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported fourth quarter and full year 2024 financial results.

“MKS delivered revenue and adjusted EBITDA above the midpoint of our outlook, closing out 2024 on an impressive note against a mixed demand backdrop,” said John T.C. Lee, President and Chief Executive Officer. “Our broad and deep technology portfolio serving an array of semiconductor, electronics and industrial applications enables us to address key demand opportunities as broader end market recovery begins to develop.”

Mr. Lee added, “We enter 2025 in a strong position, highlighted by increasing customer engagement with our World Class Optics solutions, as well as solid trends in our chemistry business as we demonstrate the pivotal role we play in advanced electronics.”

“Our revenue and profitability remained robust in the fourth quarter as our team executed well,” said Ram Mayampurath, Executive Vice President, Chief Financial Officer and Treasurer.

Mr. Mayampurath added, “We delivered continued healthy gross margin, earnings per share growth and increased operating cash flow in 2024. This underscores the value customers see in our technology portfolio as well as our strong focus on both cost management and cash generation. We also continue to make good progress proactively managing our leverage, completing another repricing of our term loan B and making a voluntary principal prepayment of $100 million in January.”

First Quarter 2025 Guidance

For the first quarter of 2025, the Company expects revenue of $910 million, plus or minus $40 million, GAAP net income of $43 million, plus or minus $19 million, Adjusted EBITDA of $217 million, plus or minus $23 million, GAAP net income per diluted share of $0.63, plus or minus $0.28, and Non-GAAP net earnings per diluted share of $1.40, plus or minus $0.27. The guidance for the first quarter is based on the current business environment, including the immaterial impact of the recently announced U.S. import tariffs up through but not including the date of this release. This guidance does not reflect the imposition of any other import tariffs by the United States or potential retaliatory actions taken by other countries. The Company will continue to monitor and adapt to changes in the business environment as needed.

Conference Call Details

A conference call with management will be held on Thursday, February 13, 2025 at 8:30 a.m. (Eastern Time). To participate in the call by phone, participants should visit the Investor Relations section of MKS’ website at investor.mks.com and click on Events & Presentations, where you will be able to register online and receive dial-in details. We encourage participants to register and dial in to the conference call at least 15 minutes before the start of the call to ensure a timely connection. A live and archived webcast and related presentation materials will be available on the Investor Relations section of the MKS website.

About MKS Instruments

MKS Instruments enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world’s leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.

Use of Non-GAAP Financial Results

This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported results under U.S. generally accepted accounting principles (“GAAP”), and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

Selected GAAP and Non-GAAP Financial Measures
(In millions, except per share data)

	Quarter									Full Year
	Q4 2024			Q3 2024			Q4 2023				2024			2023
Net Revenues
Semiconductor	$	400		$	378		$	362		$	1,498		$	1,479
Electronics & Packaging		254			231			226		$	922		$	916
Specialty Industrial		281			287			305		$	1,166		$	1,227
Total net revenues	$	935		$	896		$	893		$	3,586		$	3,622
GAAP Financial Measures
Gross margin		47.2	%		48.2	%		46.0	%		47.6	%		45.3	%
Operating margin		14.5	%		14.3	%		2.7	%		13.9	%		(42.9	%)
Net income (loss)	$	90		$	62		$	(68	)	$	190		$	(1,841	)
Diluted income (loss) per share	$	1.33		$	0.92			(1.02	)	$	2.81		$	(27.54	)
Non-GAAP Financial Measures
Gross margin		47.2	%		48.2	%		46.0	%		47.6	%		45.7	%
Operating margin		21.3	%		21.8	%		20.3	%		21.3	%		19.5	%
Net earnings	$	146		$	116		$	78		$	444		$	297
Diluted earnings per share	$	2.15		$	1.72		$	1.17		$	6.58		$	4.43

Additional Financial Information

At December 31, 2024, the Company had $714 million in cash and cash equivalents, $3.2 billion of secured term loan principal outstanding, $1.4 billion of convertible senior notes outstanding and up to $675 million of additional borrowing capacity under a revolving credit facility, subject to certain leverage ratio requirements. During the fourth quarter of 2024, the Company paid a cash dividend of $15 million or $0.22 per diluted share and made a voluntary principal prepayment of €200 million, which equated to $216 million, on its EUR term loan B.

In January 2025, the Company completed the repricing of its USD term loan B and EUR term loan B and made a voluntary principal prepayment of $100 million on its USD term loan B.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financial performance, business prospects and growth of MKS Instruments, Inc. (“MKS,” the “Company,” “our,” or “we”). These statements are only predictions based on current assumptions and expectations. Any statements that are not statements of historical fact (including statements containing the words “will,” “projects,” “intends,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “forecasts,” “continues” and similar expressions) should be considered to be forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements that we make are the level and terms of our substantial indebtedness and our ability to service such debt; our entry into the chemicals technology business through our acquisition of Atotech Limited (“Atotech”) in August 2022 (the “Atotech Acquisition”), which has exposed us to significant additional liabilities; the risk that we are unable to realize the anticipated benefits of the Atotech Acquisition; legal, reputational, financial and contractual risks resulting from the ransomware incident we identified in February 2023, and other risks related to cybersecurity, data privacy and intellectual property; competition from larger, more advanced or more established companies in our markets; the ability to successfully grow our business, including through growth of the Atotech business and growth of the Electro Scientific Industries, Inc. business, which we acquired in February 2019, and financial risks associated with those and potential future acquisitions, including goodwill and intangible asset impairments; manufacturing and sourcing risks, including those associated with limited and sole source suppliers and the impact and duration of supply chain disruptions, component shortages, and price increases; changes in global demand; the impact of a pandemic or other widespread health crisis; risks associated with doing business internationally, including geopolitical conflicts, such as the conflict in the Middle East, trade compliance, trade protection measures, such as import tariffs by the United States or retaliatory actions taken by other countries, regulatory restrictions on our products, components or markets, particularly the semiconductor market, and unfavorable currency exchange and tax rate fluctuations, which risks become more significant as we grow our business internationally and in China specifically; conditions affecting the markets in which we operate, including fluctuations in capital spending in the semiconductor, electronics manufacturing and automotive industries, and fluctuations in sales to our major customers; disruptions or delays from third-party service providers upon which our operations may rely; the ability to anticipate and meet customer demand; the challenges, risks and costs involved with integrating or transitioning global operations of the companies we have acquired; risks associated with the attraction and retention of key personnel; potential fluctuations in quarterly results; dependence on new product development; rapid technological and market change; acquisition strategy; volatility of stock price; risks associated with chemical manufacturing and environmental regulation compliance; risks related to defective products; financial and legal risk management; and the other important factors described under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequent Quarterly Reports on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, even if subsequent events cause our views to change, after the date of this press release. Amounts reported in this press release are preliminary and subject to finalization prior to the filing of our Annual Report on Form 10-K for the year ended December 31, 2024.

Company Contact:
Paretosh Misra
Vice President, Investor Relations
Telephone: (978) 284-4705
Email: paretosh.misra@mks.com

MKS Instruments, Inc.
Unaudited Consolidated Statements of Operations
(In millions, except per share data)

	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Net revenues:
Products	$	824		$	776		$	785		$	3,124		$	3,200
Services		111			120			108			462			422
Total net revenues		935			896			893			3,586			3,622
Cost of revenues:
Products		443			410			423			1,662			1,748
Services		51			54			59			216			232
Total cost of revenues (exclusive of amortization shown separately below)		494			464			482			1,878			1,980
Gross profit		441			432			411			1,708			1,642
Research and development		65			70			70			271			288
Selling, general and administrative		176			167			160			674			675
Acquisition and integration costs		3			3			3			9			16
Restructuring and other		1			1			7			6			20
Fees and expenses related to the repricing of Term Loan Facility		—			2			2			5			2
Amortization of intangible assets		61			61			70			245			295
Goodwill and intangible asset impairment		—			—			75			—			1,902
Gain on sale of long-lived assets		—			—			—			—			(2	)
Income (loss) from operations		135			128			24			498			(1,554	)
Interest income		(5	)		(6	)		(7	)		(21	)		(17	)
Interest expense		54			64			90			284			356
Loss on extinguishment of debt		4			5			8			57			8
Other expense (income), net		3			5			12			(2	)		27
Income (loss) before income taxes		79			60			(79	)		180			(1,928	)
(Benefit) provision for income taxes		(11	)		(2	)		(11	)		(10	)		(87	)
Net income (loss)	$	90		$	62		$	(68	)	$	190		$	(1,841	)
Net income (loss) per share:
Basic	$	1.34		$	0.92		$	(1.02	)	$	2.82		$	(27.54	)
Diluted	$	1.33		$	0.92		$	(1.02	)	$	2.81		$	(27.54	)
Cash dividends per common share	$	0.22		$	0.22		$	0.22		$	0.88		$	0.88
Weighted average shares outstanding:
Basic		67.4			67.4			66.9			67.3			66.8
Diluted		67.7			67.6			66.9			67.6			66.8

MKS Instruments, Inc.
Unaudited Consolidated Balance Sheets
(In millions)


	December 31,			December 31,
		2024			2023
ASSETS
Cash and cash equivalents	$	714		$	875
Trade accounts receivable, net		615			603
Inventories		893			991
Other current assets		252			227
Total current assets		2,474			2,696
Property, plant and equipment, net		771			784
Right-of-use assets		238			225
Goodwill		2,479			2,554
Intangible assets, net		2,272			2,619
Other assets		356			240
Total assets	$	8,590		$	9,118
LIABILITIES AND STOCKHOLDERS’ EQUITY
Short-term debt	$	50		$	93
Accounts payable		341			327
Other current liabilities		384			428
Total current liabilities		775			848
Long-term debt, net		4,488			4,696
Non-current deferred taxes		504			640
Non-current accrued compensation		141			151
Non-current lease liabilities		211			205
Other non-current liabilities		149			106
Total liabilities		6,268			6,646
Stockholders’ equity:
Common stock		—			—
Additional paid-in capital		2,067			2,195
Retained earnings		503			373
Accumulated other comprehensive loss		(248	)		(96	)
Total stockholders’ equity		2,322			2,472
Total liabilities and stockholders’ equity	$	8,590		$	9,118

MKS Instruments, Inc.
Unaudited Consolidated Statements of Cash Flows
(In millions)

	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 (loss)	$	90		$	62		$	(68	)	$	190		$	(1,841	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		87			87			95			348			397
Goodwill and intangible asset impairments		—			—			75			—			1,902
Unrealized loss (gain) on derivatives not designated as hedging instruments		11			2			10			13			32
Amortization of debt issuance costs and original issue discount		7			7			10			30			33
Loss on extinguishment of debt		4			5			8			57			8
Gain on sale of long-lived assets		—			—			—			—			(2	)
Stock-based compensation		11			11			11			48			54
Provision for excess and obsolete inventory		15			16			10			56			64
Deferred income taxes		(58	)		(72	)		(61	)		(226	)		(234	)
Other		2			2			—			8			5
Changes in operating assets and liabilities, net of acquired assets and liabilities		7			43			90			4			(99	)
Net cash provided by operating activities		176			163			180			528			319
Cash flows from investing activities:
Proceeds from sale of long-lived assets		—			1			—			1			3
Purchases of property, plant and equipment		(51	)		(22	)		(34	)		(118	)		(87	)
Net cash used in investing activities		(51	)		(21	)		(34	)		(117	)		(84	)
Cash flows from financing activities:
Proceeds from borrowings		—			—			214			2,161			216
Payments of borrowings		(229	)		(123	)		(336	)		(2,427	)		(403	)
Purchase of capped calls related to Convertible Notes		—			—			—			(167	)		—
Payments of deferred financing fees		—			—			(9	)		(33	)		(9	)
Dividend payments		(15	)		(15	)		(15	)		(59	)		(59	)
Net proceeds (payments) related to employee stock awards		3			(1	)		4			(9	)		(1	)
Other financing activities		(5	)		(5	)		(1	)		(15	)		(3	)
Net cash used in financing activities		(246	)		(144	)		(143	)		(549	)		(259	)
Effect of exchange rate changes on cash and cash equivalents		(26	)		13			13			(23	)		(10	)
(Decrease) increase in cash and cash equivalents		(147	)		11			16			(161	)		(34	)
Cash and cash equivalents at beginning of period		861			850			859			875			909
Cash and cash equivalents at end of period	$	714		$	861			875		$	714		$	875

The following supplemental Non-GAAP earnings information is presented to aid in understanding MKS’ operating results:

MKS Instruments, Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions, except per share data)


	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Net income (loss)	$	90		$	62		$	(68	)	$	190		$	(1,841	)
Acquisition and integration costs (Note 1)		3			3			3			9			16
Restructuring and other (Note 2)		1			1			7			6			20
Amortization of intangible assets		61			61			70			245			295
Loss on debt extinguishment (Note 3)		4			5			8			57			8
Amortization of debt issuance costs (Note 4)		5			5			7			21			24
Fees and expenses related to repricing of Term Loan Facility (Note 5)		—			2			2			5			2
Goodwill and intangible asset impairment (Note 6)		—			—			75			—			1,902
Gain on sale of long-lived assets (Note 7)		—			—			—			—			(2	)
Ransomware incident (Note 8)		—			—			1			—			15
Excess and obsolete charge from discontinued product line (Note 9)		—			—			—			—			13
Tax effect of Non-GAAP adjustments (Note 10)		(18	)		(23	)		(26	)		(89	)		(156	)
Non-GAAP net earnings	$	146		$	116		$	78		$	444		$	297
Non-GAAP net earnings per diluted share	$	2.15		$	1.72		$	1.17		$	6.58		$	4.43
Weighted average diluted shares outstanding		67.7			67.6			67.1			67.6			67.0

Net cash provided by operating activities	$	176		$	163		$	180		$	528		$	319
Purchases of property, plant and equipment		(51	)		(22	)		(34	)		(118	)		(87	)
Free cash flow	$	125		$	141		$	146		$	410		$	232

MKS Instruments, Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions)

	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Gross profit	$	441		$	432		$	411		$	1,708		$	1,642
Gross margin		47.2	%		48.2	%		46.0	%		47.6	%		45.3	%
Excess and obsolete charge from discontinued product line (Note 9)		—			—			—			—			13
Non-GAAP gross profit	$	441		$	432		$	411		$	1,708		$	1,655
Non-GAAP gross margin		47.2	%		48.2	%		46.0	%		47.6	%		45.7	%
Operating expenses	$	306		$	304		$	387		$	1,210		$	3,196
Acquisition and integration costs (Note 1)		3			3			3			9			16
Restructuring and other (Note 2)		1			1			7			6			20
Amortization of intangible assets		61			61			70			245			295
Fees and expenses related to repricing of Term Loan Facility (Note 5)		—			2			2			5			2
Goodwill and intangible asset impairment (Note 6)		—			—			75			—			1,902
Gain on sale of long-lived assets (Note 7)		—			—			—			—			(2	)
Ransomware incident (Note 8)		—			—			1			—			15
Non-GAAP operating expenses	$	242		$	237		$	229		$	945		$	948
Income (loss) from operations	$	135		$	128		$	24		$	498		$	(1,554	)
Operating margin		14.5	%		14.3	%		2.7	%		13.9	%		(42.9	%)
Acquisition and integration costs (Note 1)		3			3			3			9			16
Restructuring and other (Note 2)		1			1			7			6			20
Amortization of intangible assets		61			61			70			245			295
Fees and expenses related to repricing of Term Loan Facility (Note 5)		—			2			2			5			2
Goodwill and intangible asset impairment (Note 6)		—			—			75			—			1,902
Gain on sale of long-lived assets (Note 7)		—			—			—			—			(2	)
Ransomware incident (Note 8)		—			—			1			—			15
Excess and obsolete charge from discontinued product line (Note 9)		—			—			—			—			13
Non-GAAP income from operations	$	199		$	195		$	182		$	763		$	707
Non-GAAP operating margin		21.3	%		21.8	%		20.3	%		21.3	%		19.5	%
Interest expense, net	$	49		$	58		$	83		$	263		$	339
Amortization of debt issuance costs (Note 4)		5			5			7			21			24
Non-GAAP interest expense, net	$	45		$	53		$	76		$	242		$	315
Net income (loss)	$	90		$	62		$	(68	)	$	190		$	(1,841	)
Interest expense, net		49			58			83			263			339
Other expense (income), net		3			5			12			(2	)		27
(Benefit) provision for income taxes		(11	)		(2	)		(11	)		(10	)		(87	)
Depreciation		26			26			25			103			102
Amortization		61			61			70			245			295
Stock-based compensation		11			11			11			48			54
Acquisition and integration costs (Note 1)		3			3			3			9			16
Restructuring and other (Note 2)		1			1			7			6			20
Loss on debt extinguishment (Note 3)		4			5			8			57			8
Fees and expenses related to repricing of Term Loan Facility (Note 5)		—			2			2			5			2
Goodwill and intangible asset impairment (Note 6)		—			—			75			—			1,902
Gain on sale of long-lived assets (Note 7)		—			—			—			—			(2	)
Ransomware incident (Note 8)		—			—			1			—			15
Excess and obsolete charge from discontinued product line (Note 9)		—			—			—			—			13
Adjusted EBITDA	$	237		$	232		$	218		$	914		$	863
Adjusted EBITDA margin		25.3	%		25.9	%		24.4	%		25.5	%		23.8	%

MKS Instruments, Inc.
Reconciliation of GAAP Income Tax Rate to Non-GAAP Income Tax Rate
(In millions)


	Three Months Ended December 31, 2024							Three Months Ended December 31, 2023
	Income Before		(Benefit) Provision			Effective		(Loss) Income Before			(Benefit) Provision			Effective
	Income Taxes		for Income Taxes			Tax Rate		Income Taxes			for Income Taxes			Tax Rate

GAAP	$	79	$	(11	)	(14.5	%)	$	(79	)	$	(11	)	14.2	%
Acquisition and integration costs (Note 1)		3		—					3			—
Restructuring and other (Note 2)		1		—					7			—
Amortization of intangible assets		61		—					70			—
Loss on debt extinguishment (Note 3)		4		—					8			—
Amortization of debt issuance costs (Note 4)		5		—					7			—
Fees and expenses related to repricing of Term Loan Facility (Note 5)		—		—					2			—
Goodwill and intangible asset impairment (Note 6)		—		—					75			—
Ransomware incident (Note 8)		—		—					1			—
Tax effect of Non-GAAP adjustments (Note 10)		—		18					—			26
Non-GAAP	$	153	$	7		4.0	%	$	94		$	15		15.6	%

	Three Months Ended September 30, 2024
	Income Before		(Benefit) Provision			Effective
	Income Taxes		for Income Taxes			Tax Rate
GAAP	$	60	$	(2	)	(4.0	%)
Acquisition and integration costs (Note 1)		3		—
Restructuring and other (Note 2)		1		—
Amortization of intangible assets		61		—
Loss on debt extinguishment (Note 3)		5		—
Amortization of debt issuance costs (Note 4)		5		—
Fees and expenses related to repricing of Term Loan Facility (Note 5)		2		—
Tax effect of Non-GAAP adjustments (Note 10)		—		23
Non-GAAP	$	137	$	21		15.1	%

	Twelve Months Ended December 31, 2024							Twelve Months Ended December 31, 2023
	Income Before		(Benefit) Provision			Effective		(Loss) Income Before			(Benefit) Provision			Effective
	Income Taxes		for Income Taxes			Tax Rate		Income Taxes			for Income Taxes			Tax Rate
GAAP	$	180	$	(10	)	(5.7	%)	$	(1,928	)	$	(87	)	4.5	%
Acquisition and integration costs (Note 1)		9		—					16			—
Restructuring and other (Note 2)		6		—					20			—
Amortization of intangible assets		245		—					295			—
Loss on debt extinguishment (Note 3)		57		—					8			—
Amortization of debt issuance costs (Note 4)		21		—					24			—
Fees and expenses related to repricing of Term Loan Facility (Note 5)		5		—					2			—
Goodwill and intangible asset impairment (Note 6)		—		—					1,902			—
Gain on sale of long-lived assets (Note 7)		—		—					(2	)		—
Ransomware incident (Note 8)		—		—					15			—
Excess and obsolete charge from discontinued product line (Note 9)		—		—					13			—
Tax effect of Non-GAAP adjustments (Note 10)		—		89					—			156
Non-GAAP	$	523	$	78		14.8	%	$	366		$	69		18.9	%

MKS Instruments, Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures – Q1’25 Guidance
(In millions, except per share data)


	Three Months Ending March 31, 2025
	$ Amount			Per Share
GAAP net income and net income per share	$	43		$	0.63
Amortization of intangible assets		60
Loss on debt extinguishment		3
Amortization of debt issuance costs		4
Fees and expenses related to repricing of Term Loan Facility		2
Tax effect of Non-GAAP adjustments		(17	)
Non-GAAP net earnings and net earnings per share	$	95		$	1.40
Estimated weighted average diluted shares		67.8

GAAP operating expenses	$	317
Amortization of intangible assets		(60	)
Fees and expenses related to repricing of Term Loan Facility		(2	)
Non-GAAP operating expenses	$	255

GAAP net income		43
Interest expense, net		50
Provision for income taxes		10
Depreciation		26
Amortization of intangible assets		60
Stock-based compensation		23
Loss on debt extinguishment		3
Fees and expenses related to repricing of Term Loan Facility		2
Adjusted EBITDA	$	217

MKS Instruments, Inc.
Notes on Our Non-GAAP Financial Information

Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

Note 1: Acquisition and integration costs related to the Atotech Acquisition.

Note 2: Restructuring costs primarily related to severance costs due to global cost-saving initiatives. Other costs related to certain legal matters.

Note 3: During the three and twelve months ended December 31, 2024, we recorded charges to write-off deferred financing fees and original issue discount costs related to voluntary principal prepayments on our USD term loan B. During the three months ended September 30, 2024 and the twelve months ended December 31, 2024, we recorded charges to write-off deferred financing fees and original issue discount costs related to the repricing of our USD term loan B and EUR term loan B. Additionally, during the twelve months ended December 31, 2024, we recorded charges to (i) write-off deferred financing fees and original issue discount costs related to voluntary principal prepayments on our EUR term loan B and (ii) write-off deferred financing fees related to the extinguishment of our term loan A. During the three and twelve months ended December 31, 2023, we recorded a charge to write-off deferred financing fees and original issue discount costs related to the repricing of our USD term loan B and the voluntary prepayment on our USD Tranche A loan.

Note 4: We recorded additional interest expense related to the amortization of deferred financing costs associated with our term loan facility.

Note 5: During the twelve months ended December 31, 2024 and the three months ended September 30, 2024, we recorded fees and expenses related to the repricing of our USD term loan B and EUR term loan B. During the twelve months ended December 31, 2024, we also recorded fees and expenses related to an amendment to our term loan facility where we borrowed additional amounts under our USD term loan B and EUR term loan B and fully repaid our term loan A. During the three and twelve months ended December 31, 2023, we recorded fees and expenses related to the repricing of our USD term loan B.

Note 6: During the twelve months ended December 31, 2023, we noted softer industry demand, particularly in the personal computer and smartphone markets and concluded there was a triggering event at our Materials Solutions Division, which represents the former Atotech business, and Equipment Solutions Business, which represents the former Electro Scientific Industries business and is a reporting unit of our Photonics Solutions Division. We performed a quantitative assessment which resulted in an impairment of $1.3 billion for our Materials Solutions Division and $0.5 billion for our Equipment Solutions Business. In addition, during the three months ended December 31, 2023, as part of our annual goodwill and intangible asset impairment analysis, we recorded additional impairment charges of $62 million for our Materials Solutions Division and $13 million for our Equipment Solutions Business.

Note 7: We recorded a gain on the sale of a minority interest investment in a private company.

Note 8: We recorded costs, net of recoveries, associated with the ransomware incident we identified on February 3, 2023. These costs were primarily comprised of various third-party consulting services, including forensic experts, restoration experts, legal counsel, and other information technology and accounting professional expenses, enhancements to our cybersecurity measures, and costs to restore our systems and access our data.

Note 9: We recorded an excess and obsolescence inventory charge related to a product line that was discontinued.

Note 10: Non-GAAP adjustments are tax effected at applicable statutory rates resulting in a difference between the GAAP and Non-GAAP tax rates.

The MIL Network –

February 13, 2025

MIL-OSI: Birchcliff Energy Ltd. Announces Unaudited 2024 Full-Year and Fourth Quarter Results and 2024 Reserves Highlights

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Feb. 12, 2025 (GLOBE NEWSWIRE) — Birchcliff Energy Ltd. (“Birchcliff” or the “Corporation”) (TSX: BIR) is pleased to announce its unaudited 2024 full-year and fourth quarter financial and operational results and highlights from its independent reserves evaluation effective December 31, 2024.

“Due to the success of our 2024 capital program and driven by our improved capital efficiencies, we delivered annual average production of 76,695 boe/d and adjusted funds flow⁽¹⁾ of $236.8 million and returned $107.8 million to shareholders through common share dividends in 2024,” commented Chris Carlsen, President and Chief Executive Officer of Birchcliff. “The 27 wells we brought on production as part of the 2024 capital program delivered strong PDP reserves additions of 34.1 MMboe, which highlights the quality of our assets. We believe that there is significant intrinsic shareholder value embedded in Birchcliff’s asset base that is not reflected in our current share price, as demonstrated by our PDP reserves net asset value per common share⁽²⁾ of $6.35 and $13.79 and $18.09 for our proved and proved plus probable reserves, respectively.⁽³⁾ In addition, our Elmworth asset, which is largely unbooked from a reserves basis, provides us with significant inventory and a large potential future development area consisting of approximately 145 net sections of Montney lands.”

“Our strategy for 2025 builds off of the operational momentum from 2024, maintaining our focus on capital efficiency improvements and further driving down costs. Our 2025 capital program has been designed to ensure that our capital is strategically deployed throughout the year, providing us with the flexibility to adjust our capital spending if necessary in response to the commodity price volatility we expect during 2025, including as a result of the potential for U.S. and Canadian tariffs and the start-up of LNG Canada.”

2024 Financial and Operational Highlights

Delivered annual average production of 76,695 boe/d (82% natural gas and 18% liquids) in 2024 and quarterly average production of 77,623 boe/d (82% natural gas and 18% liquids) in Q4 2024.
Generated annual adjusted funds flow of $236.8 million in 2024 and quarterly adjusted funds flow of $71.8 million in Q4 2024. Cash flow from operating activities was $203.7 million in 2024 and $45.6 million in Q4 2024.
Reported annual net income to common shareholders of $56.1 million in 2024 and quarterly net income to common shareholders of $35.2 million in Q4 2024.
F&D capital expenditures were $273.1 million in 2024 and $58.3 million in Q4 2024. Birchcliff drilled 29 (29.0 net) wells and brought 27 (27.0 net) wells on production in 2024.
Returned $107.8 million to shareholders in 2024 through common share dividends.

2024 Reserves Highlights⁽⁴⁾

Birchcliff brought 27 new wells on production as part of its 2024 F&D capital program with strong PDP reserves additions of 34.1 MMboe (1.26 MMboe per well) and delivered PDP F&D costs⁽⁵⁾ of $8.01/boe, resulting in a PDP F&D operating netback recycle ratio⁽²⁾ of 1.4x in 2024 on such additions.
Birchcliff added an aggregate of 23.7 MMboe of PDP reserves on an F&D basis in 2024, after adding back 2024 actual production of 28.1 MMboe⁽⁶⁾ and including all other applicable PDP reserves adjustments in 2024. Birchcliff’s PDP reserves totalled 217.1 MMboe at December 31, 2024.
Birchcliff delivered PDP F&D costs of $11.52/boe and a PDP F&D operating netback recycle ratio of 1.0x on its aggregate 23.7 MMboe of PDP reserves additions, notwithstanding $18.8 million in F&D capital expenditures spent on strategic priorities in Elmworth for which there was no production or reserves assigned at year-end 2024.
At December 31, 2024, the net present value of future net revenue (before income taxes, discounted at 10%) was $2.3 billion for Birchcliff’s PDP reserves, $4.4 billion for its proved reserves and $5.6 billion for its proved plus probable reserves.
The net asset value per common share of Birchcliff’s PDP, proved and proved plus probable reserves at December 31, 2024 was $6.35, $13.79 and $18.09, respectively, which is 9%, 136% and 210% higher than the closing price of its common shares on the TSX on February 10, 2025 of $5.84.
Reserves life index⁽⁵⁾ at December 31, 2024 of 7.7 years on a PDP basis, 23.6 years on a proved basis and 34.3 years on a proved plus probable basis.

Birchcliff anticipates filing its annual information form and audited financial statements and related management’s discussion and analysis for the year ended December 31, 2024 on March 12, 2025.

^{This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. For further information regarding the forward-looking statements and forward-looking information contained herein, see “Advisories – Forward-Looking Statements”. With respect to the disclosure of Birchcliff’s reserves and related reserves metrics contained in this press release, see “2024 Year-End Reserves”, “Presentation of Oil and Gas Reserves” and “Advisories – Oil and Gas Metrics”. With respect to the disclosure of Birchcliff’s production contained in this press release, unless otherwise stated herein, production volumes have been disclosed on a “gross” basis as such term is defined in National Instrument 51-101– Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). For further information regarding the disclosure of Birchcliff’s production contained herein, see “Advisories – Production”. In addition, this press release uses various “non-GAAP financial measures”, “non-GAAP ratios” and “capital management measures” as such terms are defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”). Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under GAAP and might not be comparable to similar financial measures disclosed by other issuers. For further information regarding the non-GAAP and other financial measures used in this press release, see “Non-GAAP and Other Financial Measures”.}

______________________________

^{(1) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures”.}

^{(2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.}

^{(3) Net asset value per common share is at December 31, 2024 and before income taxes (discounted at 10%). See “2024 Year-End Reserves – Net Asset Value”.}

^{(4) Deloitte LLP (“Deloitte”) prepared an independent evaluation of the Corporation’s reserves effective December 31, 2024 as contained in their report dated February 12, 2025 (the “Deloitte Report”). The forecast commodity prices, inflation and exchange rates utilized in the Deloitte Report were computed using the average of forecasts from Deloitte, McDaniel & Associates Consultants Ltd. (“McDaniel”), GLJ Ltd. (“GLJ”) and Sproule Associates Limited (“Sproule”) effective January 1, 2025 (the “2024 Price Forecast”). See “2024 Year-End Reserves” and “Presentation of Oil and Gas Reserves”.}

^{(5) See “Advisories – Oil and Gas Metrics”.}

^{(6) Consists of 738.2 Mbbls of light oil, 1,619.6 Mbbls of condensate, 2,591.3 Mbbls of NGLs and 138,728.6 MMcf of natural gas.}

2024 UNAUDITED FINANCIAL AND OPERATIONAL SUMMARY

	Three months ended December 31,				Twelve months ended December 31,
	2024		2023		2024		2023
OPERATING
Average production
Light oil (bbls/d)	1,993		1,649		2,017		1,849
Condensate (bbls/d)	4,310		5,145		4,425		5,202
NGLs (bbls/d)	7,748		7,653		7,080		6,306
Natural gas (Mcf/d)	381,433		372,594		379,040		374,052
Total (boe/d)	77,623		76,546		76,695		75,699
Average realized sales prices (CDN$)⁽¹⁾
Light oil (per bbl)	95.18		100.07		98.90		99.07
Condensate (per bbl)	95.79		103.80		99.66		103.76
NGLs (per bbl)	26.20		26.95		26.37		26.92
Natural gas (per Mcf)	2.27		2.92		2.05		3.03
Total (per boe)	21.53		26.02		20.90		26.79

NETBACK AND COST ($/boe)
Petroleum and natural gas revenue⁽¹⁾	21.53		26.03		20.91		26.80
Royalty expense	(1.26	)	(2.75	)	(1.41	)	(2.54	)
Operating expense	(2.91	)	(3.81	)	(3.24	)	(3.83	)
Transportation and other expense⁽²⁾	(5.26	)	(5.53	)	(5.24	)	(5.69	)
Operating netback⁽²⁾	12.10		13.94		11.02		14.74
G&A expense, net	(2.00	)	(1.80	)	(1.45	)	(1.52	)
Interest expense	(1.40	)	(0.95	)	(1.31	)	(0.74	)
Lease interest expense	(0.33	)	–		(0.16	)	–
Realized gain (loss) on financial instruments	1.68		(0.38	)	0.33		(1.35	)
Other cash income (expense)	0.01		0.01		0.01		(0.03	)
Adjusted funds flow⁽²⁾	10.06		10.82		8.44		11.10
Depletion and depreciation expense	(8.96	)	(8.44	)	(8.79	)	(8.20	)
Unrealized gain (loss) on financial instruments	5.95		(1.58	)	3.51		(1.38	)
Other expenses⁽³⁾	(0.75	)	(1.88	)	(0.52	)	(0.95	)
Deferred income tax (expense) recovery	(1.37	)	0.29		(0.64	)	(0.22	)
Net income (loss) to common shareholders	4.93		(0.79	)	2.00		0.35

FINANCIAL
Petroleum and natural gas revenue ($000s)⁽¹⁾	153,741		183,295		586,856		740,359
Cash flow from operating activities ($000s)	45,641		79,006		203,710		320,529
Adjusted funds flow ($000s)⁽⁴⁾	71,838		76,215		236,794		306,827
Per basic common share ($)⁽²⁾	0.27		0.29		0.88		1.15
Free funds flow ($000s)⁽⁴⁾	13,528		18,049		(36,290	)	2,190
Per basic common share ($)⁽²⁾	0.05		0.07		(0.13	)	0.01
Net income (loss) to common shareholders ($000s)	35,216		(5,533	)	56,100		9,780
Per basic common share ($)	0.13		(0.02	)	0.21		0.04
End of period basic common shares (000s)	271,304		267,156		271,304		267,156
Weighted average basic common shares (000s)	270,185		266,667		269,081		266,465
Dividends on common shares ($000s)	27,126		53,390		107,833		213,344
F&D capital expenditures ($000s)⁽⁵⁾	58,310		58,166		273,084		304,637
Total capital expenditures ($000s)⁽⁴⁾	66,673		59,541		282,745		307,916
Revolving term credit facilities ($000s)	566,857		372,097		566,857		372,097
Total debt ($000s)⁽⁶⁾	535,557		382,306		535,557		382,306

^{(1) Excludes the effects of financial instruments but includes the effects of any physical delivery contracts.}

^{(2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.}

^{(3) Includes non-cash items such as compensation, accretion, amortization of deferred financing fees and other gains and losses.}

^{(4) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures”.}

^{(5) See “Advisories – F&D Capital Expenditures”.}

^{(6) Capital management measure. See “Non-GAAP and Other Financial Measures”.}

FULL-YEAR AND Q4 2024 UNAUDITED FINANCIAL AND OPERATIONAL RESULTS

Production

Birchcliff’s production averaged 76,695 boe/d in 2024, a 1% increase from 2023. Production averaged 77,623 boe/d in Q4 2024, a 1% increase from Q4 2023. Birchcliff’s annual average production for 2024 was at the high-end of its guidance range of 75,000 to 77,000 boe/d.
The increases were primarily due to the strong performance of the Corporation’s capital program and the successful drilling of new Montney/Doig wells brought on production, partially offset by natural production declines. Full-year production in 2023 was negatively impacted by an unplanned system outage on Pembina’s Northern Pipeline system, which reduced the Corporation’s NGLs sales volumes in 2023.
Liquids accounted for 18% of Birchcliff’s total production in both 2024 and 2023, which was in line with Birchcliff’s guidance of 19%. Liquids accounted for 18% of Birchcliff’s total production in Q4 2024 as compared to 19% in Q4 2023.

Adjusted Funds Flow and Cash Flow From Operating Activities

Birchcliff generated adjusted funds flow of $236.8 million in 2024, or $0.88 per basic common share, both of which decreased by 23% from 2023. Adjusted funds flow was $71.8 million in Q4 2024, or $0.27 per basic common share, a 6% and 7% decrease from Q4 2023, respectively. Birchcliff’s full-year adjusted funds flow in 2024 was higher than its guidance of $230 million primarily due to lower than expected royalty and G&A expenses.
Birchcliff’s cash flow from operating activities was $203.7 million in 2024, a 36% decrease from 2023. Cash flow from operating activities was $45.6 million in Q4 2024, a 42% decrease from Q4 2023.
The decreases in adjusted funds flow and cash flow from operating activities were primarily due to lower natural gas revenue, which was largely the result of a 32% and 22% decrease in the average realized sales price Birchcliff received for its natural gas production in the full-year and Q4 2024, respectively, as compared to 2023, and higher interest expenses. Birchcliff’s adjusted funds flow and cash flow from operating activities were positively impacted by lower royalty expenses and realized gains on financial instruments of $9.3 million and $12.0 million in the full-year and Q4 2024, respectively, as compared to realized losses on financial instruments of $37.3 million and $2.6 million in 2023.

Net Income (Loss) to Common Shareholders

Birchcliff earned net income to common shareholders of $56.1 million in 2024, or $0.21 per basic common share, as compared to $9.8 million and $0.04 per basic common share in 2023. The increases were primarily due to an unrealized mark-to-market gain on financial instruments of $98.6 million in 2024 as compared to an unrealized mark-to-market loss on financial instruments of $38.2 million in 2023, partially offset by lower adjusted funds flow in 2024.
Birchcliff earned net income to common shareholders of $35.2 million in Q4 2024, or $0.13 per basic common share, as compared to a net loss to common shareholders of $5.5 million and $0.02 per basic common share in Q4 2023. The change to a net income position was primarily due to an unrealized mark-to-market gain on financial instruments of $42.5 million in Q4 2024 as compared to an unrealized mark-to-market loss on financial instruments of $11.1 million in Q4 2023.

Debt and Credit Facilities

Total debt at December 31, 2024 was $535.6 million, a 40% increase from December 31, 2023. Birchcliff’s 2024 year-end total debt was at the high-end of its guidance range of $515 million to $535 million.
At December 31, 2024, Birchcliff had a balance outstanding under its extendible revolving credit facilities (the “Credit Facilities”) of $570.9 million (December 31, 2023: $374.1 million) from available Credit Facilities of $850.0 million (December 31, 2023: $850.0 million), leaving the Corporation with $279.1 million (33%) of unutilized credit capacity after adjusting for outstanding letters of credit and unamortized deferred financing fees. This unutilized credit capacity provides Birchcliff with significant financial flexibility and available capital resources. The Credit Facilities have a maturity date of May 11, 2027 and do not contain any financial maintenance covenants.

Marketing and Natural Gas Market Diversification

Birchcliff’s physical natural gas sales exposure primarily consists of the AECO, Dawn and Alliance markets. In addition, the Corporation has various financial instruments outstanding that provide it with exposure to NYMEX HH pricing.

The following table sets forth Birchcliff’s effective sales, production and average realized sales price for natural gas and liquids for Q4 2024, after taking into account the Corporation’s financial instruments:

Three months ended December 31, 2024
	Effective sales (CDN$000s)	Percentage of total sales (%)	Effective production (per day)	Percentage of total natural gas production (%)	Percentage of total corporate production (%)	Effective average realized sales price (CDN$)
Market
AECO⁽¹⁾⁽²⁾	11,831	6	82,345 Mcf	21	18	1.56/Mcf
Dawn⁽³⁾	48,281	26	162,555 Mcf	43	35	3.23/Mcf
NYMEX HH⁽¹⁾⁽⁴⁾	53,015	28	136,533 Mcf	36	29	4.22/Mcf
Total natural gas⁽¹⁾	113,127	60	381,433 Mcf	100	82	3.22/Mcf
Light oil	17,450	10	1,993 bbls		3	95.18/bbl
Condensate	37,985	20	4,310 bbls		5	95.79/bbl
NGLs	18,679	10	7,748 bbls		10	26.20/bbl
Total liquids	74,114	40	14,051 bbls		18	57.33/bbl
Total corporate⁽¹⁾	187,241	100	77,623 boe		100	26.22/boe

^{(1) Effective sales and effective average realized sales price on a total natural gas and total corporate basis and for the AECO and NYMEX HH markets are non-GAAP financial measures and non-GAAP ratios, respectively. See “Non-GAAP and Other Financial Measures”.}

^{(2) Birchcliff has short-term physical sales agreements with third-party marketers to sell and deliver into the Alliance pipeline system. All of Birchcliff’s short-term physical Alliance sales and production during Q4 2024 received AECO premium pricing and have therefore been included as effective sales and production in the AECO market.}

^{(3) Birchcliff has agreements for the firm service transportation of an aggregate of 175,000 GJ/d of natural gas on TransCanada PipeLines’ Canadian Mainline, whereby natural gas is transported to the Dawn trading hub in Southern Ontario.}

^{(4) NYMEX HH effective sales and production include financial NYMEX HH/AECO 7A basis swap contracts for an aggregate of 147,500 MMBtu/d at an average contract price of NYMEX HH less US$1.12/MMBtu during Q4 2024.
Birchcliff’s effective average realized sales price for NYMEX HH of CDN$4.22/Mcf (US$2.76/MMBtu) was determined on a gross basis before giving effect to the average NYMEX HH/AECO 7A fixed contract basis differential price of CDN$1.71/Mcf (US$1.12/MMBtu) and includes any realized gains and losses on financial NYMEX HH/AECO 7A basis swap contracts during Q4 2024.
After giving effect to the NYMEX HH/AECO 7A fixed contract basis differential price and including any realized gains and losses on financial NYMEX HH/AECO 7A basis swap contracts during Q4 2024, Birchcliff’s effective average realized net sales price for NYMEX HH was CDN$2.51/Mcf (US$1.64/MMBtu) in Q4 2024.}

The following table sets forth Birchcliff’s physical sales, production, average realized sales price, transportation costs and natural gas sales netback by natural gas market for the periods indicated, before taking into account the Corporation’s financial instruments:

Three months ended December 31, 2024
Natural gas market	Natural gas sales⁽¹⁾ (CDN$000s)	Percentage of natural gas sales (%)	Natural gas production (Mcf/d)	Percentage of natural gas production (%)	Average realized natural gas sales price⁽¹⁾ (CDN$/Mcf)	Natural gas transportation costs⁽²⁾ (CDN$/Mcf)	Natural gas sales netback⁽³⁾ (CDN$/Mcf)
AECO	31,027	39	216,321	57	1.57	0.38	1.19
Dawn	48,281	60	162,555	42	3.23	1.43	1.80
Alliance⁽⁴⁾	307	1	2,557	1	1.30	–	1.30
Total	79,615	100	381,433	100	2.27	0.83	1.44
Three months ended December 31, 2023
Natural gas market	Natural gas sales⁽¹⁾ (CDN$000s)	Percentage of natural gas sales (%)	Natural gas production (Mcf/d)	Percentage of natural gas production (%)	Average realized natural gas sales price⁽¹⁾ (CDN$/Mcf)	Natural gas transportation costs⁽²⁾ (CDN$/Mcf)	Natural gas sales netback⁽³⁾ (CDN$/Mcf)
AECO	50,508	51	203,024	55	2.72	0.38	2.33
Dawn	47,433	47	161,119	43	3.20	1.42	1.78
Alliance⁽⁴⁾	2,016	2	8,451	2	2.59	–	2.59
Total	99,957	100	372,594	100	2.92	0.83	2.09

^{(1) Excludes the effects of financial instruments but includes the effects of any physical delivery contracts.}

^{(2) Reflects costs to transport natural gas from the field receipt point to the delivery sales trading hub.}

^{(3) Natural gas sales netback denotes the average realized natural gas sales price less natural gas transportation costs.}

^{(4) Birchcliff has short-term physical sales agreements with third-party marketers to sell and deliver into the Alliance pipeline system. Alliance sales are recorded net of transportation tolls.}

Capital Activities and Investment

F&D capital expenditures were $273.1 million in 2024, as compared to Birchcliff’s guidance of $250 million to $270 million.
In 2024, the Corporation achieved a significant year-over-year improvement in capital efficiency⁽⁷⁾ for its wells of approximately 24% compared to 2023. The following table sets forth the wells that were drilled and brought on production in 2024:

			Number of wells drilled in 2024⁽¹⁾	Number of wells brought on production in 2024
Pouce Coupe

	04-30 (5-well pad)	Montney D1	0⁽²⁾	5

	16-17 (5-well pad)	BD/UM	1	1
		Montney D1	3	3
		Montney D4	1	1

	16-15 (6-well pad)	Montney D1	6	6

	10-22 (5-well pad)	Montney D1	5	5

	04-05 (5-well pad)	Montney D1	5	0⁽³⁾

Gordondale

	02-27 (2-well pad)	Montney D1	1	1
		Montney D2	1	1

	01-10 (4-well pad)	Montney D1	4	4

Elmworth

	13-09 vertical	Montney	1	0

	01-28 horizontal	Montney	1	0

TOTAL			29	27

^{(1) All wells are natural gas wells, except for the 4-well 01-10 pad, which are light oil wells.}

^{(2) The five wells drilled on the 04-30 pad were drilled in December 2023.}

^{(3) The five wells drilled on the 04-05 pad are scheduled to come on production later in February 2025.}

^{______________________________}

^{(7) See “Advisories – Oil and Gas Metrics”.}

UPDATE ON 2025 CAPITAL PROGRAM

As disclosed in Birchcliff’s press release dated January 22, 2025, the Corporation’s board of directors (the “Board”) approved a disciplined F&D capital budget of $260 million to $300 million for 2025. Benefitting from the learnings gained from the Corporation’s 2024 capital program, the wells in Birchcliff’s 2025 capital program are expected to yield strong production, using the Corporation’s latest field development practices and wellbore design, which incorporates longer lateral lengths, reduced cluster spacing and increased proppant loading where appropriate.
The Corporation successfully completed drilling its 5-well 04-05 pad in Pouce Coupe in December 2024. Completions operations are currently underway on the pad, with the wells scheduled to come on production later in February 2025. The pad was drilled in the Lower Montney targeting high-rate natural gas wells.
The Corporation is currently drilling its 3-well 07-10 pad in Pouce Coupe. The pad is targeting condensate-rich natural gas wells in the Lower Montney. The wells are anticipated to be brought on production at the end of Q1 2025.
The Corporation successfully completed drilling its 4-well 02-27 pad in Gordondale in February 2025, with completions operations scheduled to begin in March 2025. The pad is targeting condensate-rich natural gas wells in the Lower Montney. The wells are anticipated to be brought on production in early Q2 2025.
In Elmworth, the Corporation completed a horizontal land retention well and has commenced a short clean-up test. As disclosed in the Corporation’s press release on January 22, 2025, this well is not currently planned to be tied in.

U.S. AND CANADIAN TARIFFS

While Birchcliff hopes that there will not be a trade dispute between the United States and Canada, the Corporation believes that Canada’s over-reliance on exporting its energy into the U.S. must be addressed through the reduction of red tape and government interference in the construction of critical infrastructure such as oil and gas pipelines to the east and west coasts of Canada, LNG terminals on each coast and an increase in refining capacity within Canada, in order to diversify Canada’s energy export market. The Corporation continues to actively monitor this situation.
Birchcliff believes that its ongoing strategy of maintaining significant natural gas market diversification for 2025 will continue to protect the Corporation from volatility in the North American natural gas pricing environment, including as it relates to potential tariffs. Approximately 41% of Birchcliff’s natural gas production is physically delivered to the Dawn trading hub in Ontario, which is priced in U.S. dollars, and the Corporation also has U.S. denominated financial contracts that expose approximately 35% of its natural gas production to NYMEX HH pricing on a financial basis, without physical delivery into the United States.

2024 YEAR-END RESERVES

The reserves data set forth below at December 31, 2024 is based upon the Deloitte Report, which has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) and NI 51-101.

The reserves data provided in this press release presents only a portion of the disclosure required under NI 51-101. The disclosure required under NI 51-101 will be contained in Birchcliff’s annual information form for the year ended December 31, 2024, which is expected to be filed on SEDAR+ (www.sedarplus.ca) on March 12, 2025.

In some of the tables below, numbers may not add due to rounding. The estimates of future net revenue contained herein do not represent fair market value. For additional information regarding the presentation of Birchcliff’s reserves disclosure contained herein, see “Presentation of Oil and Gas Reserves” and “Advisories” in this press release.

Reserves Summary

The following table summarizes the estimates of Birchcliff’s gross reserves at December 31, 2024 and December 31, 2023, estimated using the forecast price and cost assumptions in effect as at the effective date of the applicable reserves evaluation:

Reserves Category	December 31, 2024 (Mboe)	December 31, 2023⁽¹⁾ (Mboe)	% Change
Proved Developed Producing	217,076	220,536	(2)
Total Proved	667,390	691,886	(4)
Total Proved Plus Probable	969,636	993,897	(2)

^{(1) Deloitte prepared an independent evaluation of the Corporation’s reserves effective December 31, 2023 as contained in their report dated February 14, 2024 (the “2023 Deloitte Report”). The forecast commodity prices, inflation and exchange rates utilized in the 2023 Deloitte Report were computed using the average of forecasts from Deloitte, McDaniel, GLJ and Sproule effective January 1, 2024 (the “2023 Price Forecast”).}

The following table sets forth Birchcliff’s light crude oil and medium crude oil, conventional natural gas, shale gas and NGLs reserves at December 31, 2024, estimated using the 2024 Price Forecast:

Reserves Category		Light Crude Oil and Medium Crude Oil		Conventional Natural Gas		Shale Gas		NGLs⁽¹⁾		Total Oil Equivalent
Reserves Category		*Gross* (Mbbls)	*Net* (Mbbls)	*Gross* (MMcf)	*Net* (MMcf)	*Gross* (MMcf)	*Net* (MMcf)	*Gross* (Mbbls)	*Net* (Mbbls)	*Gross* (Mboe)	*Net* (Mboe)
Proved
	Developed Producing	4,889	3,946	6,051	5,707	1,053,238	971,102	35,639	29,058	217,076	195,805
	Developed Non-Producing	9	9	0	0	4,840	4,537	239	203	1,054	968
	Undeveloped	7,089	5,747	2,858	2,625	2,320,235	2,094,569	54,988	42,966	449,259	398,246
Total Proved		11,987	9,701	8,909	8,332	3,378,312	3,070,208	90,866	72,227	667,390	595,019
Total Probable		9,083	6,933	5,270	4,911	1,442,846	1,272,820	51,811	39,640	302,246	259,529
Total Proved Plus Probable		21,070	16,635	14,179	13,243	4,821,158	4,343,028	142,676	111,868	969,636	854,547

^{(1) NGLs includes condensate.}

Net Present Values of Future Net Revenue

The following table sets forth the net present values of future net revenue attributable to Birchcliff’s reserves at December 31, 2024, estimated using the 2024 Price Forecast, before deducting future income tax expenses and calculated at various discount rates:

Reserves Category	Before Income Taxes Discounted At (%/year)					Unit Value Discounted at 10%/year ($/boe)⁽¹⁾
Reserves Category	0 ($000s)	5 ($000s)	10 ($000s)	15 ($000s)	20 ($000s)	Unit Value Discounted at 10%/year ($/boe)⁽¹⁾
Proved
Developed Producing	3,670,971	2,851,081	2,277,750	1,892,104	1,621,811	11.63
Developed Non-Producing	13,717	9,900	7,499	5,888	4,750	7.75
Undeveloped	7,083,864	3,707,943	2,073,919	1,199,557	694,944	5.21
Total Proved	10,768,552	6,568,924	4,359,168	3,097,549	2,321,504	7.33
Total Probable	6,210,051	2,553,082	1,204,663	632,630	361,133	4.64
Total Proved Plus Probable	16,978,602	9,122,005	5,563,831	3,730,179	2,682,638	6.51

^{(1) Unit values are based on net reserves volumes.}

Net Asset Value

Net asset value reflects the estimated long-term fair value of Birchcliff’s underlying reserves assets after settling its outstanding financial obligations at a point in time. The net present value of the Corporation’s reserves can vary significantly depending on the oil and natural gas price assumptions used by Deloitte and assumes only the reserves identified in the applicable reserves report, with no further acquisitions or incremental development.

The following table sets forth Birchcliff’s net asset value for its PDP, total proved and total proved plus probable reserves for the periods indicated:

($000s, except per share amounts)	Proved Developed Producing						Total Proved						Total Proved Plus Probable
As at December 31,		2024			2023			2024			2023			2024			2023
Reserves, NPV10%⁽¹⁾		2,277,750			2,620,064			4,359,168			5,405,617			5,563,831			6,835,417
Total debt⁽²⁾		(535,557	)		(382,306	)		(535,557	)		(382,306	)		(535,557	)		(382,306	)
Unexercised securities⁽³⁾		34,961			16,717			34,961			16,717			34,961			16,717
Net asset value⁽⁴⁾⁽⁵⁾		1,777,154			2,254,475			3,858,572			5,040,028			5,063,235			6,469,828
Net asset value (per common share)^(4)(5)(6)	$6.35			$8.22			$13.79			$18.38			$18.09			$23.60

^{(1) Represents the net present value of the future net revenue (before income taxes, discounted at 10%) of Birchcliff’s PDP, total proved and total proved plus probable reserves, as applicable, as estimated by Deloitte effective December 31, 2024 and December 31, 2023, using forecast prices and costs.}

^{(2) Capital management measure. See “Non-GAAP and Other Financial Measures”.}

^{(3) Represents the value of unexercised in-the-money stock options and performance warrants outstanding at the end of the year. The closing trading price on the TSX of Birchcliff’s common shares on December 31, 2024 and December 29, 2023 was $5.42 and $5.78, respectively.}

^{(4) Excludes any value from undeveloped land and seismic.}

^{(5) Net asset value is a non-GAAP financial measure and net asset value per common share is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.}

^{(6) For 2024, based on 279.9 million common shares, which includes 271.3 million basic common shares outstanding at December 31, 2024 and 8.6 million dilutive common shares from unexercised in-the-money stock options and performance warrants outstanding at December 31, 2024. For 2023, based on 274.2 million common shares, which includes 267.2 million basic common shares outstanding at December 31, 2023 and 7.0 million dilutive common shares from unexercised in-the-money stock options and performance warrants outstanding at December 31, 2023.}

Net asset value decreased in all categories of reserves in 2024 as compared to 2023 primarily due to lower forecast prices in the 2024 Price Forecast compared to the 2023 Price Forecast, including an AECO price decrease of approximately 20% for 2025 through 2027 and approximately 11% thereafter.

Pricing Assumptions

The following table sets forth the 2024 Price Forecast used in the Deloitte Report:

Year	Crude Oil		Natural Gas⁽¹⁾		NGLs					Currency Exchange Rate (US$/CDN$)	Price and Cost Inflation Rates (%)

	WTI at Cushing Oklahoma (US$/bbl)	Edmonton City Gate (CDN$/bbl)	Alberta AECO Average Price (CDN$/Mcf)	Ontario Dawn Reference Point (CDN$/Mcf)	NYMEX Henry Hub (US$/Mcf)	Edmonton Ethane (CDN$/bbl)	Edmonton Propane (CDN$/bbl)	Edmonton Butane (CDN$/bbl)	Edmonton Pentanes + Condensate (CDN$/bbl)
2025	71.19	94.00	2.35	4.28	3.30	7.27	32.05	48.68	98.02	0.714	0.0
2026	73.20	94.84	3.32	4.83	3.76	10.40	31.19	47.43	97.60	0.731	2.0
2027	74.54	95.28	3.52	4.94	3.93	11.04	31.28	47.63	97.43	0.736	2.0
2028	76.28	96.40	3.69	5.05	4.01	11.61	31.70	48.26	98.60	0.758	2.0
2029	77.81	98.33	3.77	5.14	4.10	11.85	32.33	49.22	100.58	0.758	2.0
2030	79.37	100.30	3.84	5.25	4.17	12.08	32.98	50.20	102.57	0.758	2.0
2031	80.96	102.31	3.92	5.34	4.25	12.34	33.64	51.21	104.63	0.758	2.0
2032	82.57	104.36	3.99	5.46	4.34	12.58	34.31	52.24	106.73	0.758	2.0
2033	84.22	106.44	4.08	5.58	4.43	12.85	35.00	53.27	108.86	0.758	2.0
2034	85.91	108.57	4.16	5.68	4.52	13.10	35.69	54.35	111.04	0.758	2.0
2035	87.63	110.74	4.24	5.80	4.61	13.37	36.41	55.43	113.27	0.758	2.0
2036	89.38	112.95	4.33	5.93	4.69	13.64	37.14	56.54	115.52	0.758	2.0
2037	91.17	115.21	4.42	6.03	4.79	13.91	37.88	57.67	117.84	0.758	2.0
2038	92.99	117.51	4.51	6.14	4.88	14.19	38.63	58.83	120.20	0.758	2.0
2039	94.85	119.86	4.59	6.28	4.99	14.47	39.41	60.00	122.60	0.758	2.0
2040	96.75	122.26	4.68	6.41	5.09	14.76	40.20	61.20	125.05	0.758	2.0
2041	98.69	124.71	4.78	6.54	5.19	15.05	41.00	62.43	127.56	0.758	2.0
2042	100.66	127.20	4.87	6.67	5.29	15.35	41.82	63.68	130.10	0.758	2.0
2043	102.67	129.75	4.97	6.81	5.39	15.66	42.66	64.94	132.71	0.758	2.0
2044	104.72	132.34	5.07	6.93	5.51	15.98	43.51	66.24	135.36	0.758	2.0
2044+	2.0%	2.0%	2.0%	2.0%	2.0%	2.0%	2.0%	2.0%	2.0%	0.758	2.0

^{(1) 1 Mcf = 1 MMBtu.}

Reconciliation of Changes in Reserves

The following table sets forth the reconciliation of Birchcliff’s gross reserves at December 31, 2024 as set forth in the Deloitte Report, estimated using the 2024 Price Forecast, to Birchcliff’s gross reserves at December 31, 2023:

Factors	Light Crude Oil and Medium Crude Oil (Mbbls)		Conventional Natural Gas (MMcf)		Shale Gas (MMcf)		NGLs⁽⁸⁾ (Mbbls)		Oil Equivalent (Mboe)
GROSS TOTAL PROVED
Opening balance December 31, 2023	14,460		10,251		3,493,022		93,547		691,886
Extensions and Improved Recovery⁽¹⁾	0		0		58,875		2,287		12,099
Technical Revisions⁽²⁾	(1,724	)	2,244		(37,966	)	(2,022	)	(9,699	)
Discoveries⁽³⁾	0		0		0		0		0
Acquisitions⁽⁴⁾	0		0		18,193		1,633		4,665
Dispositions⁽⁵⁾	0		0		0		0		0
Economic Factors⁽⁶⁾	(12	)	(2,746	)	(15,923	)	(367	)	(3,491	)
Production⁽⁷⁾	(738	)	(840	)	(137,889	)	(4,211	)	(28,070	)
Closing balance December 31, 2024	11,987		8,909		3,378,312		90,866		667,390
GROSS TOTAL PROBABLE
Opening balance December 31, 2023	10,088		5,666		1,438,587		51,213		302,011
Extensions and Improved Recovery⁽¹⁾	0		0		9,320		1,602		3,155
Technical Revisions⁽²⁾	(1,003	)	(2,604	)	(33,104	)	(3,347	)	(10,301	)
Discoveries⁽³⁾	0		0		0		0		0
Acquisitions⁽⁴⁾	0		0		24,508		2,296		6,381
Dispositions⁽⁵⁾	0		0		0		0		0
Economic Factors⁽⁶⁾	(2	)	2,208		3,535		45		1,000
Production⁽⁷⁾	0		0		0		0		0
Closing balance December 31, 2024	9,083		5,270		1,442,846		51,811		302,246
GROSS TOTAL PROVED PLUS PROBABLE
Opening balance December 31, 2023	24,549		15,917		4,931,609		144,760		993,897
Extensions and Improved Recovery⁽¹⁾	0		0		68,195		3,888		15,254
Technical Revisions⁽²⁾	(2,727	)	(361	)	(71,069	)	(5,369	)	(20,000	)
Discoveries⁽³⁾	0		0		0		0		0
Acquisitions⁽⁴⁾	0		0		42,701		3,929		11,046
Dispositions⁽⁵⁾	0		0		0		0		0
Economic Factors⁽⁶⁾	(14	)	(538	)	(12,389	)	(322	)	(2,490	)
Production⁽⁷⁾	(738	)	(840	)	(137,889	)	(4,211	)	(28,070	)
Closing balance December 31, 2024	21,070		14,179		4,821,158		142,676		969,636

^{(1) Additions to volumes resulting from capital expenditures for: (i) step-out drilling in previously discovered reservoirs; (ii) infill drilling in previously discovered reservoirs that were not drilled as part of an enhanced recovery scheme; and (iii) the installation of improved recovery schemes.}

^{(2) Positive or negative volume revisions to an estimate resulting from new technical data or revised interpretations on previously assigned volumes, performance and operating costs. This category also includes revisions resulting from well locations combined or removed as part of an updated development plan.}

^{(3) Additions to volumes in reservoirs where no reserves were previously booked.}

^{(4) Positive additions to volume estimates because of purchasing interests in oil and gas properties.}

^{(5) Reductions in volume estimates because of selling all or a portion of an interest in oil and gas properties.}

^{(6) Changes to volumes resulting from different price forecasts, inflation rates and regulatory changes.}

^{(7) Reductions in the volume estimates due to actual production.}

^{(8) NGLs includes condensate.}

Key highlights include the following:

Extensions and Improved Recovery
- Reserves were added from 27 wells brought on production pursuant to the Corporation’s successful 2024 capital program. The 2024 program was focused in Birchcliff’s core areas in Pouce Coupe and Gordondale, converting proved and probable undeveloped reserves into PDP reserves.

Technical Revisions
- The technical revisions in all reserves categories for light crude oil and medium crude oil were primarily the result of: (i) higher gas-to-oil ratios for existing producing oil wells in the southeast area in Gordondale; and (ii) potential future drilling location adjustments based on offsetting well performance.
- The technical revisions in all reserves categories for conventional natural gas were primarily the result of existing well performance.
- The technical revisions in all reserves categories for shale gas were primarily the result of:

(i) an updated reserves forecast for existing wells based on historical performance, which included a reduction in the reserves attributable to 56 existing high-density producing wells that were drilled from 2019 to 2023. The Corporation does not expect that the technical revisions relating to these wells will negatively impact future reserves booked for other existing or future wells;

(ii) an updated full-field development plan, which included the combining or removal of multiple proved and probable potential future drilling locations, resulting in the removal of 10 proved undeveloped locations and 3 probable locations; and

(iii) an updated reserves forecast for various potential future drilling locations in the Lower Montney in Gordondale as a result of an increase in the reserves attributable to such future locations due to the continued outperformance of existing wells in the area.

The technical revisions in all reserves categories for NGLs were primarily the result of: (i) a reduction in shale gas volumes; and (ii) reduced NGLs recoveries at the Corporation’s owned and/or operated natural gas processing plants in Pouce Coupe and Gordondale. The reduced NGLs recoveries were partially offset by reduced natural gas shrinkage.

Acquisitions
- Changes were the result of various accretive acquisitions completed by Birchcliff in the Pouce Coupe and Gordondale areas in 2024.
Economic Factors
- The forecast prices for each product type were generally lower in the 2024 Price Forecast than the 2023 Price Forecast, which resulted in the economic limit at the end of a well’s life being achieved earlier and therefore a reduction of the reserves volumes in the total proved and total proved plus probable categories.

Future Development Costs

Future development costs (“FDC”) reflect Deloitte’s best estimate of what it will cost to bring the proved and proved plus probable reserves on production. Changes in forecast FDC occur annually as a result of development activities, acquisition and disposition activities and capital cost estimates. The following table sets forth development costs deducted in the estimation of Birchcliff’s future net revenue attributable to the reserves categories noted below, estimated using the 2024 Price Forecast:

Year	Proved ($000s)	Proved Plus Probable ($000s)
2025	198,395	215,960
2026	355,662	374,083
2027	424,921	455,059
2028	895,366	895,366
2029	644,546	645,166
Thereafter	849,599	2,299,368
Total undiscounted	3,368,489	4,885,002

FDC for proved reserves on an FD&A basis decreased to $3.37 billion at December 31, 2024 from $3.46 billion at December 31, 2023. FDC for proved plus probable reserves on an FD&A basis decreased to $4.89 billion at December 31, 2024 from $4.97 billion at December 31, 2023. The FDC to drill, case, complete, equip and tie-in for future locations in Birchcliff’s Pouce Coupe and Gordondale areas ($5.9 million per well) did not change from December 31, 2023 to December 31, 2024.

The FDC for both proved and proved plus probable reserves are primarily the capital costs required to drill, case, complete, equip and tie-in the net undeveloped locations. The estimates of FDC on a proved and proved plus probable basis also include approximately $320 million (unescalated) for the continued expansion of the Pouce Coupe Gas Plant from the existing 340 MMcf/d to 660 MMcf/d of total throughput. The FDC for the expansion of the Pouce Coupe Gas Plant also include the costs of the related gathering pipelines and maintenance capital.

F&D and FD&A Costs

The following table sets forth Birchcliff’s F&D and FD&A costs for its PDP, total proved and total proved plus probable reserves for the three previous financial years, including FDC:

	2024⁽²⁾	2023	2022	3-Year Average
F&D costs ($/boe)⁽¹⁾
Proved Developed Producing	11.52⁽³⁾	13.16	10.24	11.43
Total Proved	n/a⁽⁴⁾	16.02	82.02	29.43
Total Proved Plus Probable	n/a⁽⁴⁾	24.90	n/a⁽⁵⁾	110.72
FD&A costs ($/boe)⁽¹⁾
Proved Developed Producing	11.42⁽⁶⁾	13.06	10.25	11.38
Total Proved	53.86⁽⁷⁾	13.79	78.96	23.24
Total Proved Plus Probable	50.39⁽⁸⁾	20.97	n/a⁽⁵⁾	49.27

^{(1) See “Advisories – Oil and Gas Metrics” for a description of the methodology used to calculate F&D and FD&A costs.}

^{(2) Birchcliff’s F&D and FD&A capital expenditures were $273.1 million and $281.0 million, respectively, in 2024. Birchcliff’s F&D and FD&A capital expenditures included $18.8 million spent on strategics priorities in the Corporation’s Elmworth area for which there was no production or reserves assigned at year-end 2024.}

^{(3) Birchcliff added 23.7 MMboe of PDP reserves in 2024, after adding back 2024 actual production of 28.1 MMboe and including all other PDP reserves adjustments in 2024, excluding acquisitions and dispositions.}

^{(4) Birchcliff’s proved and proved plus probable reserves decreased in 2024, after adding back 2024 actual production of 28.1 MMboe. As a result of the year-over-year decrease in proved and proved plus probable reserves, the calculation for F&D costs for these reserves categories was not applicable in 2024.}

^{(5) Birchcliff’s proved plus probable reserves decreased in 2022, after adding back 2022 actual production of 28.1 MMboe. As a result of the year-over-year decrease in proved plus probable reserves, the calculations for F&D and FD&A costs for this reserves category were not applicable in 2022.}

^{(6) Birchcliff added 24.6 MMboe of PDP reserves in 2024, after adding back 2024 actual production of 28.1 MMboe and including all other PDP reserves adjustments in 2024.}

^{(7) Includes the 2024 decrease in FDC from 2023 of $88.5 million on a proved basis. Birchcliff added 3.6 MMboe of proved reserves in 2024, after adding back 2024 actual production of 28.1 MMboe and including all other proved reserves adjustments in 2024.}

^{(8) Includes the 2024 decrease in FDC from 2023 of $89.0 million on a proved plus probable basis. Birchcliff added 3.8 MMboe of proved plus probable reserves in 2024, after adding back 2024 actual production of 28.1 MMboe and including all other proved plus probable reserves adjustments in 2024.}

Recycle Ratios

The following table sets forth Birchcliff’s F&D and FD&A operating netback recycle ratios for its PDP, total proved and total proved plus probable reserves for the three previous financial years, including FDC:

	2024	2023	2022	3-Year Average
F&D operating netback recycle ratio⁽¹⁾⁽²⁾
Proved Developed Producing	1.0x	1.1x	3.2x	1.7x
Total Proved	n/a⁽³⁾	0.9x	0.4x	0.7x
Total Proved Plus Probable	n/a⁽³⁾	0.6x	n/a⁽⁴⁾	0.2x
FD&A operating netback recycle ratio⁽¹⁾⁽²⁾
Proved Developed Producing	1.0x	1.1x	3.2x	1.7x
Total Proved	0.2x	1.1x	0.4x	0.8x
Total Proved Plus Probable	0.2x	0.7x	n/a⁽⁴⁾	0.4x

^{(1) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.}

^{(2) Birchcliff’s operating netback was $11.02/boe in 2024 as compared to $14.74/boe in 2023 and $32.85/boe in 2022. Operating netback is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.}

^{(3) As a result of the year-over-year decrease in proved and proved plus probable reserves, the calculation for F&D operating netback recycle ratio for these reserves categories was not applicable in 2024.}

^{(4) As a result of the year-over-year decrease in proved plus probable reserves, the calculations for F&D and FD&A operating netback recycle ratio for this reserves category were not applicable in 2022.}

Reserves Replacement

The following table sets forth Birchcliff’s 2024 reserves replacement on an F&D and FD&A basis for its PDP, total proved and total proved plus probable reserves:

Reserves Category	2024 F&D Reserves Replacement⁽¹⁾		2024 FD&A Reserves Replacement⁽¹⁾
Proved Developed Producing	84	%	88	%
Total Proved	n/a⁽²⁾		13	%
Total Proved Plus Probable	n/a⁽²⁾		14	%

^{(1) See “Advisories – Oil and Gas Metrics” for a description of the methodology used to calculate reserves replacement.}

^{(2) As a result of the 1.1 MMboe and 7.2 MMboe decrease in Birchcliff’s proved and proved plus probable reserves, respectively, in 2024, after adding back 2024 actual production of 28.1 MMboe, the calculation for F&D reserves replacement for theses reserves categories was not applicable in 2024.}

Reserves Life Index

The following table sets forth Birchcliff’s reserves life index for its PDP, total proved and total proved plus probable reserves at December 31, 2024:

Reserves Category	Reserves Life Index⁽¹⁾
Proved Developed Producing	7.7 years
Total Proved	23.6 years
Total Proved Plus Probable	34.3 years

^{(1) See “Advisories – Oil and Gas Metrics” for a description of the methodology used to calculate reserves life index.}

ABBREVIATIONS

AECO	benchmark price for natural gas determined at the AECO ‘C’ hub in southeast Alberta
bbl	barrel
bbls	barrels
bbls/d	barrels per day
BD/UM	Basal Doig/Upper Montney
boe	barrel of oil equivalent
boe/d	barrel of oil equivalent per day
condensate	pentanes plus (C5+)
F&D	finding and development
FD&A	finding, development and acquisition
G&A	general and administrative
GAAP	generally accepted accounting principles for Canadian public companies, which are currently International Financial Reporting Standards as issued by the International Accounting Standards Board
GJ/d	gigajoules per day
HH	Henry Hub
IP	initial production
LNG	liquefied natural gas
Mbbls	thousand barrels
Mboe	thousand barrels of oil equivalent
Mcf	thousand cubic feet
Mcf/d	thousand cubic feet per day
MMboe	million barrels of oil equivalent
MMBtu	million British thermal units
MMBtu/d	million British thermal units per day
MMcf	million cubic feet
MMcf/d	million cubic feet per day
NGLs	natural gas liquids consisting of ethane (C2), propane (C3) and butane (C4) and, except where otherwise noted, excludes condensate
NPV	net present value
NYMEX	New York Mercantile Exchange
OPEC	Organization of the Petroleum Exporting Countries
PDP	proved developed producing
Q	quarter
TSX	Toronto Stock Exchange
WTI	West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma, for crude oil of standard grade
000s	thousands
$000s	thousands of dollars

NON-GAAP AND OTHER FINANCIAL MEASURES

This press release uses various “non-GAAP financial measures”, “non-GAAP ratios” and “capital management measures” (as such terms are defined in NI 52-112), which are described in further detail below.

Non-GAAP Financial Measures

NI 52-112 defines a non-GAAP financial measure as a financial measure that: (i) depicts the historical or expected future financial performance, financial position or cash flow of an entity; (ii) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity; (iii) is not disclosed in the financial statements of the entity; and (iv) is not a ratio, fraction, percentage or similar representation. The non-GAAP financial measures used in this press release are not standardized financial measures under GAAP and might not be comparable to similar measures presented by other companies. Investors are cautioned that non-GAAP financial measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP financial measures as indicators of Birchcliff’s performance. Set forth below is a description of the non-GAAP financial measures used in this press release.

Adjusted Funds Flow and Free Funds Flow

Birchcliff defines “adjusted funds flow” as cash flow from operating activities before the effects of decommissioning expenditures, retirement benefit payments and changes in non-cash operating working capital. Birchcliff eliminates settlements of decommissioning expenditures from cash flow from operating activities as the amounts can be discretionary and may vary from period to period depending on its capital programs and the maturity of its operating areas. The settlement of decommissioning expenditures is managed with Birchcliff’s capital budgeting process which considers available adjusted funds flow. Birchcliff eliminates retirement benefit payments from cash flow from operating activities as such payments reflect costs for past service and contributions made by eligible executives under the Corporation’s post-employment benefit plan, which are not indicative of the current period. Changes in non-cash operating working capital are eliminated in the determination of adjusted funds flow as the timing of collection and payment are variable and by excluding them from the calculation, the Corporation believes that it is able to provide a more meaningful measure of its operations and ability to generate cash on a continuing basis. Management believes that adjusted funds flow assists management and investors in assessing Birchcliff’s financial performance after deducting all operating and corporate cash costs, as well as its ability to generate the cash necessary to fund sustaining and/or growth capital expenditures, repay debt, settle decommissioning obligations, buy back common shares and pay dividends.

Birchcliff defines “free funds flow” as adjusted funds flow less F&D capital expenditures. Management believes that free funds flow assists management and investors in assessing Birchcliff’s ability to generate shareholder value and returns through a number of initiatives, including but not limited to, debt repayment, common share buybacks, the payment of common share dividends, acquisitions and other opportunities that would complement or otherwise improve the Corporation’s business and enhance long-term shareholder value.

The most directly comparable GAAP financial measure to adjusted funds flow and free funds flow is cash flow from operating activities. The following table provides a reconciliation of cash flow from operating activities to adjusted funds flow and free funds flow for the periods indicated:

	Three months ended December 31,				Twelve months ended December 31,
($000s)	2024		2023		2024		2023
Cash flow from operating activities	45,641		79,006		203,710		320,529
Change in non-cash operating working capital	25,278		(6,248	)	17,269		(19,477	)
Decommissioning expenditures	919		1,457		1,964		3,775
Retirement benefit payments	–		2,000		13,851		2,000
Adjusted funds flow	71,838		76,215		236,794		306,827
F&D capital expenditures	(58,310	)	(58,166	)	(273,084	)	(304,637	)
Free funds flow	13,528		18,049		(36,290	)	2,190

Transportation and Other Expense

Birchcliff defines “transportation and other expense” as transportation expense plus marketing purchases less marketing revenue. Birchcliff may enter into certain marketing purchase and sales arrangements with the objective of reducing any unused transportation or fractionation fees associated with its take-or-pay commitments and/or increasing the value of its production through value-added downstream initiatives. Management believes that transportation and other expense assists management and investors in assessing Birchcliff’s total cost structure related to transportation and marketing activities.

The most directly comparable GAAP financial measure to transportation and other expense is transportation expense. The following table provides a reconciliation of transportation expense to transportation and other expense for the periods indicated:

	Three months ended December 31,				Twelve months ended December 31,
($000s)	2024		2023		2024		2023
Transportation expense	36,722		38,509		149,534		152,828
Marketing purchases	14,905		8,928		51,496		34,772
Marketing revenue	(14,083	)	(8,532	)	(54,069	)	(30,521	)
Transportation and other expense	37,544		38,905		146,961		157,079

Operating Netback

Birchcliff defines “operating netback” as petroleum and natural gas revenue less royalty expense, operating expense and transportation and other expense. Management believes that operating netback assists management and investors in assessing Birchcliff’s operating profits after deducting the cash costs that are directly associated with the sale of its production, which can then be used to pay other corporate cash costs or satisfy other obligations.

The following table provides a breakdown of Birchcliff’s operating netback for the periods indicated:

	Three months ended				Twelve months ended
	December 31,				December 31,
($000s)	2024		2023		2024		2023		2022
Petroleum and natural gas revenue	153,741		183,295		586,856		740,359		1,340,180
Royalty expense	(9,033	)	(19,400	)	(39,608	)	(70,257	)	(161,226	)
Operating expense	(20,758	)	(26,808	)	(90,890	)	(105,809	)	(101,581	)
Transportation and other expense	(37,544	)	(38,905	)	(146,961	)	(157,079	)	(154,924	)
Operating netback	86,406		98,182		309,397		407,214		922,449

FD&A and Total Capital Expenditures

Birchcliff defines “FD&A capital expenditures” as exploration and development expenditures, less dispositions, plus acquisitions (if any). Birchcliff defines “total capital expenditures” as FD&A capital expenditures plus administrative assets. Management believes that FD&A capital expenditures and total capital expenditures assist management and investors in assessing Birchcliff’s overall capital cost structure associated with its petroleum and natural gas activities.

The most directly comparable GAAP financial measure to FD&A capital expenditures and total capital expenditures is exploration and development expenditures. The following table provides a reconciliation of exploration and development expenditures to FD&A capital expenditures and total capital expenditures for the periods indicated:

	Three months ended				Twelve months ended
	December 31,				December 31,
($000s)	2024		2023		2024		2023
Exploration and development expenditures⁽¹⁾	58,310		58,166		273,084		304,637
Acquisitions	8,076		2		8,169		190
Dispositions	(100	)	(10	)	(258	)	(87	)
FD&A capital expenditures	66,286		58,158		280,995		304,740
Administrative assets	387		1,383		1,750		3,176
Total capital expenditures	66,673		59,541		282,745		307,916

^{(1) Disclosed as F&D capital expenditures elsewhere in this press release. See “Advisories – F&D Capital Expenditures”.}

Net Asset Value

Birchcliff defines “net asset value” as property, plant and equipment, plus reserves premium adjustment (less reserves discount adjustment) for its PDP, total proved and total proved plus probable reserves (as the case may be), less total debt and plus the value of unexercised in-the-money stock options and performance warrants outstanding at the end of the period. Management believes that net asset value assists management and investors in assessing the long-term fair value of Birchcliff’s underlying reserves assets after settling its outstanding financial obligations.

The most directly comparable GAAP financial measure to net asset value is property, plant and equipment. The following table provides a reconciliation of property, plant and equipment to net asset value for the periods indicated:

	Proved Developed Producing				Total Proved				Total Proved Plus Probable
As at December 31, ($000s)	2024		2023		2024		2023		2024		2023
Property, plant and equipment	3,218,506		3,055,958		3,218,506		3,055,958		3,218,506		3,055,958
Reserves premium (discount) adjustment⁽¹⁾	(940,756	)	(435,894	)	1,140,662		2,349,659		2,345,325		3,779,459
Total debt	(535,557	)	(382,306	)	(535,557	)	(382,306	)	(535,557	)	(382,306	)
Unexercised securities	34,961		16,717		34,961		16,717		34,961		16,717
Net asset value	1,777,154		2,254,475		3,858,572		5,040,028		5,063,235		6,469,828

^{(1) Represents the premium or discount, as the case may be, between the net present value of future net revenue (before income taxes, discounted at 10%) of Birchcliff’s PDP, total proved and total proved plus probable reserves, as the case may be, and the property, plant and equipment disclosed on the financial statements.}

Effective Sales – Total Corporate, Total Natural Gas, AECO Market and NYMEX HH Market

Birchcliff defines “effective sales” in the AECO market and NYMEX HH market as the sales amount received from the production of natural gas that is effectively attributed to the AECO and NYMEX HH market pricing, respectively, and does not consider the physical sales delivery point in each case. Effective sales in the NYMEX HH market includes realized gains and losses on financial instruments and excludes the notional fixed basis costs associated with the underlying financial contract in the period. Birchcliff defines “effective total natural gas sales” as the aggregate of the effective sales amount received in each natural gas market. Birchcliff defines “effective total corporate sales” as the aggregate of the effective total natural gas sales and the sales amount received from the production of light oil, condensate and NGLs. Management believes that disclosing the effective sales for each natural gas market assists management and investors in assessing Birchcliff’s natural gas diversification and commodity price exposure to each market.

The most directly comparable GAAP financial measure to effective total natural gas sales and effective total corporate sales is natural gas sales. The following table provides a reconciliation of natural gas sales to effective total natural gas sales and effective total corporate sales for the periods indicated:

	Three months ended
	December 31,
($000s)	2024	2023
Natural gas sales	79,615	99,957
Realized gain (loss) on financial instruments	12,022	(2,583	)
Notional fixed basis costs⁽¹⁾	21,490	20,802
Effective total natural gas sales	113,127	118,176
Light oil sales	17,450	15,180
Condensate sales	37,985	49,135
NGLs sales	18,679	18,977
Effective total corporate sales	187,241	201,468

^{(1) Reflects the aggregate notional fixed basis cost associated with Birchcliff’s financial and physical NYMEX HH/AECO 7A basis swap contracts in the period.}

Non-GAAP Ratios

NI 52-112 defines a non-GAAP ratio as a financial measure that: (i) is in the form of a ratio, fraction, percentage or similar representation; (ii) has a non-GAAP financial measure as one or more of its components; and (iii) is not disclosed in the financial statements of the entity. The non-GAAP ratios used in this press release are not standardized financial measures under GAAP and might not be comparable to similar measures presented by other companies. Set forth below is a description of the non-GAAP ratios used in this press release.

Adjusted Funds Flow Per Boe and Adjusted Funds Flow Per Basic Common Share

Birchcliff calculates “adjusted funds flow per boe” as aggregate adjusted funds flow in the period divided by the production (boe) in the period. Management believes that adjusted funds flow per boe assists management and investors in assessing Birchcliff’s financial profitability and sustainability on a cash basis by isolating the impact of production volumes to better analyze its performance against prior periods on a comparable basis.

Birchcliff calculates “adjusted funds flow per basic common share” as aggregate adjusted funds flow in the period divided by the weighted average basic common shares outstanding at the end of the period. Management believes that adjusted funds flow per basic common share assists management and investors in assessing Birchcliff’s financial strength on a per common share basis.

Free Funds Flow Per Basic Common Share

Birchcliff calculates “free funds flow per basic common share” as aggregate free funds flow in the period divided by the weighted average basic common shares outstanding at the end of the period. Management believes that free funds flow per basic common share assists management and investors in assessing Birchcliff’s financial strength and its ability to deliver shareholder returns on a per common share basis.

Transportation and Other Expense Per Boe

Birchcliff calculates “transportation and other expense per boe” as aggregate transportation and other expense in the period divided by the production (boe) in the period. Management believes that transportation and other expense per boe assists management and investors in assessing Birchcliff’s cost structure as it relates to its transportation and marketing activities by isolating the impact of production volumes to better analyze its performance against prior periods on a comparable basis.

Operating Netback Per Boe

Birchcliff calculates “operating netback per boe” as aggregate operating netback in the period divided by the production (boe) in the period. Operating netback per boe is a key industry performance indicator and one that provides investors with information that is commonly presented by other oil and natural gas producers. Management believes that operating netback per boe assists management and investors in assessing Birchcliff’s operating profitability and sustainability by isolating the impact of production volumes to better analyze its performance against prior periods on a comparable basis.

Operating Netback Recycle Ratio

Birchcliff calculates “operating netback recycle ratio” as operating netback per boe in the period divided by F&D or FD&A costs, as the case may be, for its PDP, proved and proved plus probable reserves, as the case may be, in the period. Management believes that operating netback recycle ratio assists management and investors in assessing Birchcliff’s ability to profitably find and develop its PDP, proved and proved plus probable reserves.

Net Asset Value Per Common Share

Birchcliff calculates “net asset value per common share” as the net asset value in each category of reserves divided by the aggregate of the basic common shares outstanding and in-the-money dilutive common shares attributable to stock options and performance warrants outstanding at the end of the period. Management believes that net asset value per common share assists management and investors in comparing Birchcliff’s common share trading price to the underlying fair market value of its net assets on a per common share basis.

Effective Average Realized Sales Price – Total Corporate, Total Natural Gas, AECO Market and NYMEX HH Market

Birchcliff calculates “effective average realized sales price” as effective sales, in each of total corporate, total natural gas, AECO market and NYMEX HH market, as the case may be, divided by the effective production in each of the markets during the period. Management believes that disclosing the effective average realized sales price for each natural gas market assists management and investors in comparing Birchcliff’s commodity price realizations in each natural gas market on a per unit basis.

Capital Management Measures

NI 52-112 defines a capital management measure as a financial measure that: (i) is intended to enable an individual to evaluate an entity’s objectives, policies and processes for managing the entity’s capital; (ii) is not a component of a line item disclosed in the primary financial statements of the entity; (iii) is disclosed in the notes to the financial statements of the entity; and (iv) is not disclosed in the primary financial statements of the entity. Set forth below is a description of the capital management measure used in this press release.

Total Debt

Birchcliff calculates “total debt” at the end of the period as the amount outstanding under the Corporation’s Credit Facilities plus working capital deficit (less working capital surplus) plus the fair value of the current asset portion of financial instruments less the fair value of the current liability portion of financial instruments and less the current portion of other liabilities discounted to the end of the period. The current portion of other liabilities has been excluded from total debt as these amounts have not been incurred and reflect future commitments in the normal course of operations. Management believes that total debt assists management and investors in assessing Birchcliff’s overall liquidity and financial position at the end of the period. The following table provides a reconciliation of the amount outstanding under the Credit Facilities, as determined in accordance with GAAP, to total debt for the periods indicated:

As at December 31, ($000s)	2024		2023
Revolving term credit facilities	566,857		372,097
Working capital deficit (surplus)⁽¹⁾	(88,953	)	10,522
Fair value of financial instruments – asset⁽²⁾	71,038		3,588
Fair value of financial instruments – liability⁽²⁾	–		(1,394	)
Other liabilities⁽²⁾	(13,385	)	(2,507	)
Total debt	535,557		382,306

^{(1) Current liabilities less current assets.}

^{(2) Reflects the current portion only.}

PRESENTATION OF OIL AND GAS RESERVES

Deloitte prepared the Deloitte Report and the 2023 Deloitte Report. In addition, Deloitte prepared a reserves evaluation in respect of Birchcliff’s oil and natural gas properties effective December 31, 2022. Such evaluations were prepared in accordance with the standards contained in NI 51-101 and the COGE Handbook that were in effect at the relevant time. Reserves estimates stated herein are extracted from the relevant evaluation.

There are numerous uncertainties inherent in estimating quantities of oil, natural gas and NGLs (including condensate) reserves and the future net revenue attributed to such reserves. The reserves and associated future net revenue information set forth in this press release are estimates only. In general, estimates of economically recoverable oil, natural gas and NGLs reserves and the future net revenue therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserves recovery, the timing and amount of capital expenditures, marketability of oil, natural gas and NGLs, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially from actual results. For these reasons, estimates of the economically recoverable oil, natural gas and NGLs reserves attributable to any particular group of properties, the classification of such reserves based on risk of recovery and estimates of future net revenue associated with reserves prepared by different engineers, or by the same engineer at different times, may vary. Birchcliff’s actual production, revenue, taxes and development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material.

It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to the Corporation’s reserves estimated by the Corporation’s independent qualified reserves evaluator represent the fair market value of those reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. Actual oil, natural gas and NGLs reserves may be greater than or less than the estimates provided herein and variances could be material.

In this press release, unless otherwise stated all references to “reserves” are to Birchcliff’s gross company reserves, meaning Birchcliff’s working interest (operating or non-operating) share before the deduction of royalties and without including any royalty interests of Birchcliff.

The information set forth in this press release relating to the reserves, future net revenue and future development costs of Birchcliff constitutes forward-looking statements and is subject to certain risks and uncertainties. See “Advisories – Forward-Looking Statements”.

Certain terms used herein but not defined are defined in NI 51-101, CSA Staff Notice 51-324 – Revised Glossary to NI 51-101 Standards of Disclosure for Oil and Gas Activities (“CSA Staff Notice 51-324”) and/or the COGE Handbook and, unless the context otherwise requires, shall have the same meanings herein as in NI 51-101, CSA Staff Notice 51-324 and the COGE Handbook, as the case may be.

ADVISORIES

Unaudited Information

All financial information contained in this press release for the fourth quarter and year ended December 31, 2024 is based on unaudited estimated financial information which has been disclosed in accordance with GAAP. These estimated results have not been reviewed by the Corporation’s auditor and are subject to change upon completion of the audited financial statements for the year ended December 31, 2024, and changes could be material. Birchcliff anticipates filing its audited financial statements and related management’s discussion and analysis for the year ended December 31, 2024 on SEDAR+ on March 12, 2025.

Currency

Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars, all references to “$” and “CDN$” are to Canadian dollars and all references to “US$” are to United States dollars.

Boe Conversions

Boe amounts have been calculated by using the conversion ratio of 6 Mcf of natural gas to 1 bbl of oil. Boe amounts may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

MMBtu Pricing Conversions

$1.00 per MMBtu equals $1.00 per Mcf based on a standard heat value Mcf.

Oil and Gas Metrics

This press release contains metrics commonly used in the oil and natural gas industry, including F&D costs, FD&A costs, reserves replacement, reserves life index, capital efficiency, operating netback, operating netback recycle ratio, net asset value and net asset value per common share, which have been determined by Birchcliff as set out below. These oil and gas metrics do not have any standardized meanings or standard methods of calculation and therefore may not be comparable to similar measures presented by other companies. As such, they should not be used to make comparisons. Management uses these oil and gas metrics for its own performance measurements and to provide investors with measures to compare Birchcliff’s performance over time; however, such measures are not reliable indicators of Birchcliff’s future performance, which may not compare to Birchcliff’s performance in previous periods, and therefore should not be unduly relied upon.

With respect to F&D and FD&A costs:
- F&D costs for PDP, proved or proved plus probable reserves, as the case may be, are calculated by taking the sum of: (i) exploration and development expenditures (F&D capital expenditures) incurred in the period; and (ii) where appropriate, the change during the period in FDC for the reserves category; divided by the applicable additions to the reserves category after adding back production in the period. F&D costs exclude the effects of acquisitions and dispositions.
- FD&A costs for PDP, proved or proved plus probable reserves, as the case may be, are calculated by taking the sum of: (i) FD&A capital expenditures incurred in the period; and (ii) where appropriate, the change during the period in FDC for the reserves category; divided by the applicable additions to the reserves category after adding back production in the period.
- In determining the F&D and FD&A costs for PDP, proved or proved plus probable reserves, as the case may be, the estimated reserves additions during the period and the change during the period in estimated FDC are based upon the evaluations of Birchcliff’s reserves prepared by its independent qualified reserves evaluator effective December 31 of such year.
- The aggregate of the F&D and FD&A capital expenditures incurred in the most recent financial year and the change during that year in estimated FDC generally will not reflect total F&D and FD&A costs related to reserves additions for that year.
- F&D and FD&A costs may be used as a measure of the Corporation’s efficiency with respect to finding and developing its reserves.
Reserves replacement on an F&D basis is calculated by dividing PDP, proved or proved plus probable reserves additions, as the case may be, before production by the total annual production in the applicable period. Reserves replacement on an FD&A basis is calculated in the same manner as F&D reserves replacement, but include the effects of acquisitions and dispositions. Reserves replacement may be used as a measure of the Corporation’s sustainability and its ability to replace its PDP, proved or proved plus probable reserves, as the case may be.
Reserves life index is calculated by dividing PDP, proved or proved plus probable reserves, as the case may be, estimated by Deloitte at December 31, 2024, by 77,500 boe/d (which represents the mid-point of Birchcliff’s annual average production guidance range for 2025) determined on an annualized basis. Reserves life index may be used as a measure of the Corporation’s sustainability.
Capital efficiency is calculated on an average well basis as drill, case, complete and equip capital expenditures divided by the IP365 boe/d for the applicable well(s). Birchcliff defines “IP365 boe/d” as the estimated average daily field production in the first 365 days a well is on-stream. Where field production data is not available for a well, Birchcliff uses the forecasted production data for that well. Capital efficiency is determined at the individual well level and then aggregated and averaged for the year. Management believes that capital efficiency assists management and investors in assessing Birchcliff’s asset performance, execution and ability to generate shareholder value.
For information regarding operating netback, operating netback recycle ratio, net asset value and net asset value per common share and how such metrics are calculated, see “Non-GAAP and Other Financial Measures”.

Production

With respect to the disclosure of Birchcliff’s production contained in this press release: (i) references to “light oil” mean “light crude oil and medium crude oil” as such term is defined in NI 51-101; (ii) references to “liquids” mean “light crude oil and medium crude oil” and “natural gas liquids” (including condensate) as such terms are defined in NI 51-101; and (iii) references to “natural gas” mean “shale gas”, which also includes an immaterial amount of “conventional natural gas”, as such terms are defined in NI 51-101. In addition, NI 51-101 includes condensate within the product type of natural gas liquids. In certain cases, Birchcliff has disclosed condensate separately from other natural gas liquids as the price of condensate as compared to other natural gas liquids is currently significantly higher and Birchcliff believes presenting the two commodities separately provides a more accurate description of its operations and results therefrom.

With respect to the disclosure of Birchcliff’s production contained in this press release, all production volumes have been disclosed on a “gross” basis as such term is defined in NI 51-101, meaning Birchcliff’s working interest (operating or non-operating) share before the deduction of royalties and without including any royalty interests of Birchcliff.

F&D Capital Expenditures

Unless otherwise stated, references in this press release to “F&D capital expenditures” denotes exploration and development expenditures as disclosed in the Corporation’s financial statements in accordance with GAAP, and is primarily comprised of capital for land, seismic, workovers, drilling and completions, well equipment and facilities and capitalized G&A costs and excludes any acquisitions, dispositions, administrative assets and the capitalized portion of cash incentive payments that have not been approved by the Board. Management believes that F&D capital expenditures assists management and investors in assessing Birchcliff’s capital cost outlay associated with its exploration and development activities for the purposes of finding and developing its reserves.

Forward-Looking Statements

Certain statements contained in this press release constitute forward‐looking statements and forward-looking information (collectively referred to as “forward‐looking statements”) within the meaning of applicable Canadian securities laws. The forward-looking statements contained in this press release relate to future events or Birchcliff’s future plans, strategy, operations, performance or financial position and are based on Birchcliff’s current expectations, estimates, projections, beliefs and assumptions. Such forward-looking statements have been made by Birchcliff in light of the information available to it at the time the statements were made and reflect its experience and perception of historical trends. All statements and information other than historical fact may be forward‐looking statements. Such forward‐looking statements are often, but not always, identified by the use of words such as “seek”, “plan”, “focus”, “future”, “outlook”, “position”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “forecast”, “guidance”, “potential”, “proposed”, “predict”, “budget”, “continue”, “targeting”, “may”, “will”, “could”, “might”, “should”, “would”, “on track”, “maintain”, “deliver” and other similar words and expressions.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking statements. Accordingly, readers are cautioned not to place undue reliance on such forward-looking statements. Although Birchcliff believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct and Birchcliff makes no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking statements.

In particular, this press release contains forward‐looking statements relating to:

Birchcliff’s plans and other aspects of its anticipated future financial performance, results, operations, focus, objectives, strategies, opportunities, priorities and goals, including: Birchcliff’s belief that there is significant intrinsic shareholder value embedded in Birchcliff’s asset base that is not reflected in its current share price, as demonstrated by its PDP reserves net asset value per common share of $6.35 and $13.79 and $18.09 per share for its proved and proved plus probable reserves, respectively; that Birchcliff’s Elmworth asset provides Birchcliff with significant inventory and a large potential future development area; that Birchcliff’s strategy for 2025 builds off of the operational momentum from 2024, maintaining the Corporation’s focus on capital efficiency improvements and further driving down costs; that the Corporation’s 2025 capital program has been designed to ensure that its capital is strategically deployed throughout the year, providing it with the flexibility to adjust its capital spending if necessary in response to the commodity price volatility expected during 2025, including as a result of the potential for U.S. and Canadian tariffs and the start-up of LNG Canada; that the unutilized credit capacity under its Credit Facilities provides Birchcliff with significant financial flexibility and available capital resources; that Birchcliff believes its ongoing strategy of maintaining significant natural gas market diversification for 2025 will continue to protect the Corporation from volatility in the North American natural gas pricing environment, including as it relates to potential tariffs; and estimates of Birchcliff’s 2025 market diversification (including that approximately 41% of Birchcliff’s natural gas production is physically delivered to the Dawn trading hub in Ontario and that Birchcliff has U.S. denominated financial contracts that expose approximately 35% of its natural gas production to NYMEX HH pricing on a financial basis);
the information set forth under the heading “Update on 2025 Capital Program” and elsewhere in this press release regarding Birchcliff’s 2025 capital program and its exploration, production and development activities and the timing thereof, including: estimates of the Corporation’s 2025 F&D capital expenditures; that the wells in Birchcliff’s 2025 capital program are expected to yield strong production, using the Corporation’s latest field development practices and wellbore design, which incorporates longer lateral lengths, reduced stage spacing and increased proppant loading where appropriate; that the land retention well drilled and completed by the Corporation in Elmworth is not currently planned to be tied in; the targeted product types; and the expected timing for wells to be drilled, completed and brought on production;
statements regarding U.S. and Canadian tariffs, including that the Corporation believes that Canada’s over-reliance on exporting its energy into the U.S. must be addressed through the reduction of red tape and government interference in the construction of critical infrastructure such as oil and gas pipelines to the east and west coasts of Canada, LNG terminals on each coast and an increase in refining capacity within Canada, in order to diversify Canada’s energy export market; and that the Corporation continues to actively monitor this situation;
the information set forth under the heading “2024 Year-End Reserves” and elsewhere in this press release regarding the Corporation’s reserves, including: estimates of reserves; estimates of the net present values of future net revenue associated with Birchcliff’s reserves; forecasts of prices, inflation and exchange rates; FDC; reserves life index; and that the Corporation does not expect that the technical revisions relating to the 56 high-density wells drilled from 2019 to 2023 will negatively impact future reserves booked for other existing or future wells;
the performance and other characteristics of Birchcliff’s oil and natural gas properties and expected results from its assets, including statements regarding the potential or prospectivity of Birchcliff’s properties; and
that Birchcliff anticipates filing its annual information form and audited financial statements and related management’s discussion and analysis for the year ended December 31, 2024 on March 12, 2025.

Information relating to reserves is forward-looking as it involves the implied assessment, based on certain estimates and assumptions, that the reserves exist in the quantities predicted or estimated and that the reserves can profitably be produced in the future. See “Presentation of Oil and Gas Reserves”.

With respect to the forward-looking statements contained in this press release, assumptions have been made regarding, among other things: prevailing and future commodity prices and differentials, exchange rates, interest rates, inflation rates, royalty rates and tax rates; the state of the economy, financial markets and the exploration, development and production business; the political environment in which Birchcliff operates; the regulatory framework regarding royalties, taxes, environmental, climate change and other laws; the Corporation’s ability to comply with existing and future laws; future cash flow, debt and dividend levels; future operating, transportation, G&A and other expenses; Birchcliff’s ability to access capital and obtain financing on acceptable terms; the timing and amount of capital expenditures and the sources of funding for capital expenditures and other activities; the sufficiency of budgeted capital expenditures to carry out planned operations; the successful and timely implementation of capital projects and the timing, location and extent of future drilling and other operations; results of operations; Birchcliff’s ability to continue to develop its assets and obtain the anticipated benefits therefrom; the performance of existing and future wells; reserves volumes and Birchcliff’s ability to replace and expand reserves through acquisition, development or exploration; the impact of competition on Birchcliff; the availability of, demand for and cost of labour, services and materials; the approval of the Board of future dividends; the ability to obtain any necessary regulatory or other approvals in a timely manner; the satisfaction by third parties of their obligations to Birchcliff; the ability of Birchcliff to secure adequate processing and transportation for its products; Birchcliff’s ability to successfully market natural gas and liquids; the results of the Corporation’s risk management and market diversification activities; and Birchcliff’s natural gas market exposure. In addition to the foregoing assumptions, Birchcliff has made the following assumptions with respect to certain forward-looking statements contained in this press release:

Birchcliff’s forecast of F&D capital expenditures assumes that the Corporation’s 2025 capital program will be carried out as currently contemplated and excludes any potential acquisitions, dispositions and the capitalized portion of cash incentive payments that have not been approved by the Board. The amount and allocation of capital expenditures for exploration and development activities by area and the number and types of wells to be drilled and brought on production is dependent upon results achieved and is subject to review and modification by management on an ongoing basis throughout the year. Actual spending may vary due to a variety of factors, including commodity prices, economic conditions, results of operations and costs of labour, services and materials.
With respect to estimates of reserves volumes and the net present values of future net revenue associated with Birchcliff’s reserves, the key assumption is the validity of the data used by Deloitte in the Deloitte Report.
With respect to statements regarding future wells to be drilled or brought on production, such statements assume: the continuing validity of the geological and other technical interpretations performed by Birchcliff’s technical staff, which indicate that commercially economic volumes can be recovered from Birchcliff’s lands as a result of drilling future wells; and that commodity prices and general economic conditions will warrant proceeding with the drilling of such wells.

Birchcliff’s actual results, performance or achievements could differ materially from those anticipated in the forward-looking statements as a result of both known and unknown risks and uncertainties including, but not limited to: general economic, market and business conditions which will, among other things, impact the demand for and market prices of Birchcliff’s products and Birchcliff’s access to capital; volatility of crude oil and natural gas prices; risks associated with increasing costs, whether due to high inflation rates, supply chain disruptions or other factors; fluctuations in exchange and interest rates; an inability of Birchcliff to generate sufficient cash flow from operations to meet its current and future obligations; an inability to access sufficient capital from internal and external sources on terms acceptable to the Corporation; risks associated with Birchcliff’s Credit Facilities, including a failure to comply with covenants under the agreement governing the Credit Facilities and the risk that the borrowing base limit may be redetermined; fluctuations in the costs of borrowing; operational risks and liabilities inherent in oil and natural gas operations; the risk that weather events such as wildfires, flooding, droughts or extreme hot or cold temperatures forces the Corporation to shut-in production or otherwise adversely affects the Corporation’s operations; the occurrence of unexpected events such as fires, explosions, blow-outs, equipment failures, transportation incidents and other similar events; an inability to access sufficient water or other fluids needed for operations; the risks associated with supply chain disruptions; uncertainty that development activities in connection with Birchcliff’s assets will be economic; an inability to access or implement some or all of the technology necessary to operate its assets and achieve expected future results; geological, technical, drilling, construction and processing problems; uncertainty of geological and technical data; horizontal drilling and completions techniques and the failure of drilling results to meet expectations for reserves or production; uncertainties related to Birchcliff’s future potential drilling locations; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production, revenue, costs and reserves; the accuracy of cost estimates and variances in Birchcliff’s actual costs and economic returns from those anticipated; incorrect assessments of the value of acquisitions and exploration and development programs; the risks posed by pandemics, epidemics and global conflict and their impacts on supply and demand and commodity prices; actions taken by OPEC and other major producers of crude oil and the impact such actions may have on supply and demand and commodity prices; stock market volatility; loss of market demand; changes to the regulatory framework in the locations where the Corporation operates, including changes to tax laws, Crown royalty rates, environmental laws, climate change laws, carbon tax regimes, incentive programs and other regulations that affect the oil and natural gas industry (including uncertainty with respect to the interpretation of Bill C-59 and the related amendments to the Competition Act (Canada)); political uncertainty and uncertainty associated with government policy changes, including the risk of U.S. tariffs on goods exported from Canada and any retaliatory tariffs implemented; actions by government authorities; an inability of the Corporation to comply with existing and future laws and the cost of compliance with such laws; dependence on facilities, gathering lines and pipelines; uncertainties and risks associated with pipeline restrictions and outages to third-party infrastructure that could cause disruptions to production; the lack of available pipeline capacity and an inability to secure adequate and cost-effective processing and transportation for Birchcliff’s products; an inability to satisfy obligations under Birchcliff’s firm marketing and transportation arrangements; shortages in equipment and skilled personnel; the absence or loss of key employees; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, equipment and skilled personnel; management of Birchcliff’s growth; environmental and climate change risks, claims and liabilities; potential litigation; default under or breach of agreements by counterparties and potential enforceability issues in contracts; claims by Indigenous peoples; the reassessment by taxing or regulatory authorities of the Corporation’s prior transactions and filings; unforeseen title defects; third-party claims regarding the Corporation’s right to use technology and equipment; uncertainties associated with the outcome of litigation or other proceedings involving Birchcliff; uncertainties associated with counterparty credit risk; risks associated with Birchcliff’s risk management and market diversification activities; risks associated with the declaration and payment of future dividends, including the discretion of the Board to declare dividends and change the Corporation’s dividend policy and the risk that the amount of dividends may be less than currently forecast; the failure to obtain any required approvals in a timely manner or at all; the failure to complete or realize the anticipated benefits of acquisitions and dispositions and the risk of unforeseen difficulties in integrating acquired assets into Birchcliff’s operations; negative public perception of the oil and natural gas industry and fossil fuels; the Corporation’s reliance on hydraulic fracturing; market competition, including from alternative energy sources; changing demand for petroleum products; the availability of insurance and the risk that certain losses may not be insured; breaches or failure of information systems and security (including risks associated with cyber-attacks); risks associated with the ownership of the Corporation’s securities; the accuracy of the Corporation’s accounting estimates and judgments; and the risk that any of the Corporation’s material assumptions prove to be materially inaccurate.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other risk factors that could affect Birchcliff’s results of operations, financial performance or financial results are included in Birchcliff’s annual information form and annual management’s discussion and analysis for the financial year ended December 31, 2023 under the heading “Risk Factors” and in other reports filed with Canadian securities regulatory authorities.

This press release contains information that may constitute future-oriented financial information or financial outlook information (collectively, “FOFI”) about Birchcliff’s prospective financial performance, financial position or cash flows, all of which is subject to the same assumptions, risk factors, limitations and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on FOFI. Birchcliff’s actual results, performance and achievements could differ materially from those expressed in, or implied by, FOFI. Birchcliff has included FOFI in order to provide readers with a more complete perspective on Birchcliff’s future operations and management’s current expectations relating to Birchcliff’s future performance. Readers are cautioned that such information may not be appropriate for other purposes.

Management has included the above summary of assumptions and risks related to forward-looking statements provided in this press release in order to provide readers with a more complete perspective on Birchcliff’s future operations and management’s current expectations relating to Birchcliff’s future performance. Readers are cautioned that this information may not be appropriate for other purposes.

The forward-looking statements and FOFI contained in this press release are expressly qualified by the foregoing cautionary statements. The forward-looking statements and FOFI contained herein are made as of the date of this press release. Unless required by applicable laws, Birchcliff does not undertake any obligation to publicly update or revise any forward-looking statements or FOFI, whether as a result of new information, future events or otherwise.

ABOUT BIRCHCLIFF:

Birchcliff is an intermediate oil and natural gas company based in Calgary, Alberta with operations focused on the Montney/Doig Resource Play in Alberta. Birchcliff’s common shares are listed for trading on the TSX under the symbol “BIR”.

For further information, please contact:

Birchcliff Energy Ltd.
Suite 1000, 600 – 3^rd Avenue S.W.
Calgary, Alberta T2P 0G5
Telephone: (403) 261-6401
Email: birinfo@birchcliffenergy.com
www.birchcliffenergy.com

Chris Carlsen – President and Chief Executive Officer

Bruno Geremia – Executive Vice President and Chief Financial Officer

The MIL Network –

February 13, 2025

MIL-OSI New Zealand: Speech to New Zealand Economics Forum

Source: New Zealand Government

Tēna koutou katoa. Greetings everyone.
Thank you Matt for the introduction and can I acknowledge the presence of former Australian Prime Minister Scott Morrison. It’s a pleasure to have you back in the country.
It’s also a pleasure to be here to speak at this event for the third year in a row.
The world is changing. Fast. Orthodoxies are being challenged. De-globalisation, tariffs, counter tariffs, artificial intelligence, conflict, cynicism about national institutions, extreme climatic events, increasing competition for food, energy, minerals and other resources.
Leaders around the world are being compelled to act more boldly than they have for several decades.
Where once countries could take for granted their position in the world, it is now unquestionable that we need to place ourselves in the driver’s seat for our national interests.
These issues are not just the concern of diplomats, leaders and elites.
People the world over are increasingly feeling the effects of declining living standards, soaring prices, unaffordable housing and incomes that are not keeping up.
Is it any wonder that there is a growing sense that the benefits of progress are not being evenly shared or that citizens are questioning the institutions and conventions they were raised to rely on?
It’s hard not to look back on the past few decades and see complacency.
Where once there was an assumption about the inevitability of economic growth – a given to be traded off against a host of other values – that stance now seems blissfully naïve.
From the United Kingdom, to the European Union, to China, to the United States, there is a growing realisation that growth must be fought for and that, even once achieved, can easily slide away.
We in New Zealand are not immune to these trends. In fact, we are at a moment of inflection.
After three years of struggle, many Kiwis feel poorer, less financially secure and less hopeful about their futures. The cost of living is a daily concern.
New Zealanders have been through the wringer. Where once there was triumphalism about our response to, and recovery, from the COVID-19 pandemic, there is now a realisation that we are still paying the economic price for the disruption it wreaked.
The aftershocks of extended lock-downs included a generational spike in inflation and the cost of living, extraordinary interest rate hikes, ongoing disruption to migration flows, massive increases in Government debt and a structural deficit in the government books.
These blows landed on an economy that had being showing cracks for decades.
New Zealand already faced longstanding issues of low productivity growth, low capital intensity in our firms, low levels of competition in many sectors, challenges in attracting and retaining skills and talent, low uptake of innovation, declining housing affordability and a growing tail of New Zealanders leaving school without basic skills. Today, as Kiwis suffer the real-life effects of economic problems, it’s become even more urgent that we address these complex challenges.
For the economists in this room these observations about our economic problems can be understood as data points.
For many Kiwis, it is more personal, more visceral and far harder to stomach. The cost of living is too high and they need to see a path out.
Despite falling inflation and interest rates and rising business and consumer confidence, many New Zealanders tell me they still can’t get on top of their bills – even though they’re working harder than ever, that they are worried about whether they’ve saved enough for their retirement, and are concerned about their kids’ prospects should they stay in New Zealand.
My message to those New Zealanders is this: it’s tough right now, but our country has far better years ahead of it.
It’s easy to lose sight of the reasons to be optimistic, but let’s be confident about how great New Zealand’s potential is.
In a world facing multiple challenges, we have some extraordinary advantages. We’re a safe, secure country with established trading relationships and a reputation as a good place to do business. We are blessed with abundant natural resources – everything from ocean to freshwater, fertile land to minerals and temperate weather.
In a world worried about food security, we have the world’s best farmers, feeding more than 40 million people with levels of efficiency and sustainability that are the envy of the world. We have a long history of stable democracy, strong institutions and rule of law. We’ve produced world-leading scientific breakthroughs from splitting the atom to the Hamilton Jet Boat. Our entrepreneurs and innovators have converted their ideas into world-beating successes – from Oscar-winning digital effects to rockets in space.
New Zealand has what it takes to succeed, but for too long we’ve put up stop signs and road cones when we should have been putting our pedal to the metal.
Our Government’s mission is to make the most of New Zealand’s potential so we can grow the economy and ease the cost of living for New Zealanders.
Our plan is simple: remove the barriers that have held back growth and create the conditions that will allow businesses to create better paying jobs, more financial security for our families, and more income to pay for world-class education and health services.
Today I am releasing a document that shows how our Government is putting that plan into action. “Going for Growth” is a snapshot of the Government’s activity in five key areas, all designed to ease the cost of living and grow our economy.
The document identifies more than 80 separate initiatives that have been completed or are underway. Don’t worry, I’m not about to list them all.
But I do encourage you to give it a read. Going for Growth will be updated on a regular basis and we are actively seeking your feedback on its content and any actions you think should be added or prioritized.
The document focusses on five areas which are essential to improving the performance of the New Zealand economy.

Developing talent by lifting education and skills: Too many of our kids have been leaving school without the basics they need to succeed in an increasingly demanding world. This is a moral failure. It’s also a fiscal and economic timebomb. Our Government is improving our education system to deliver a better deal for Kiwi kids.
Competitive business settings: Excessive and badly-designed regulations have slowed New Zealand down, added costs and prevented too many good ideas from become reality. Several of our major sectors lack competition and consumers are paying the price. Our Government is removing red tape, reducing compliance costs and promoting competition to deliver a better deal for Kiwi consumers.
Promoting global trade and investment: New Zealand is a small country, geographically distant from many of the world’s large economies. We need to keep pursuing trade relationships and international connections not only to get good prices for our exports, but also to keep up with emerging technologies and to access the world’s talent and capital. Our Government is growing our trade relationships and rolling out the welcome mat for international investment so we can deliver better paying jobs for Kiwis.
Innovation, technology and science: New Zealand’s science system is not geared up for the future economy. Our businesses have often been slow to invest in the technology needed to make them more productive. We’re modernizing our science and innovation system so we can deliver a better deal for Kiwi businesses who want to use science and tech to grow.
Infrastructure for growth: New Zealand’s Resource Management system has been weaponised against development, adding cost, slowing things down and stopping too many projects. Despite abundant land, housing remains unaffordable for too many. Major infrastructure projects are too slow, too expensive and too few. Our Government is removing roadblocks to delivery of housing and infrastructure and fast-tracking major developments so we can deliver better living standards for New Zealanders.

Some of you will be familiar with the work we already have underway in each of these areas. Today I want to share some thoughts about a few areas where I think more reform is needed.
Number One. Driving greater competition in sectors that are vital to our national interests, including banking, grocery and electricity.
The economic impetus for this is clear. Strong competition protects consumer interests, it puts downward pressure on costs, it incentivises innovation and investment, it supports efficient allocation of resources and it drives productivity.
When I look around the business landscape today I see too many sectors where market power has been entrenched to the detriment of everyday people.
New Zealand has seen significant mergers and consolidation across major industries. Big fish have been swallowing the little fish and regulatory barriers have stopped new fish from entering the pond.
While many super-sized businesses have flourished, in too many cases the Kiwis they sell to have experienced higher prices, fewer choices and a worse deal all round.
In my view, law-makers and regulators have been far too complacent about diminishing levels of competition in vital areas. Large-scale mergers have been repeatedly allowed in major industries, with so-called efficiency prioritised over the interests of consumers.
Well-intended regulations have become a moat, stopping challengers from disrupting the status quo.
The result? A raw deal for Kiwi consumers.
The dominance of big fish has also made it difficult for many small businesses to grow into larger businesses.
We see it in the banking industry which the Commerce Commission has described as a highly profitable, two-tier oligopoly. The Government is taking action to address this.
And we see it in the supermarket sector in which three large entities, two of whom don’t compete in the same island, effectively control 82 per cent of the market.
The result, as the Commerce Commission reported in 2022, is that competition between grocery retailers is muted, profits are high, product ranges are limited and shoppers pay higher prices than people in many other countries.
In this environment it is almost impossible for a new entrant to establish a foothold in the New Zealand market.
Even if they are able to battle their way through the thicket of resource management and overseas investment regulation, they are confronted in many cases by an absence of suitable land for new supermarket developments. It has been land-banked by the established players.
Some of our best food producers also tell me they are struggling because of the duopolistic practices of the major players.
If Kiwi food producers can’t afford to keep their products on New Zealand supermarket shelves, how are they ever going to grow to the point where they can export overseas?
The supermarket lobby will find 1000 different ways to say this is not the case, but it is.
The OECD has this to say about the New Zealand supermarket sector:
“Two major players dominate the market through their portfolio of different brands. As a result, they can extract higher prices from consumers (oligopoly power) but also exert ‘oligopsony power’ on their suppliers, passing on costs and uncertainty to them, with the threat of removing products from shelves if suppliers disagree”
Studies have shown that New Zealand supermarkets were the most expensive for kitchen staples compared with the UK, Ireland and Australia.
If you doubt the findings of the OECD, research papers, or the Commerce Commission, just ask the everyday Mums and Dads at the checkout:
Kiwi shoppers feel ripped-off.
I think of PK, the Kiwi man who went viral on Tik Tok, sharing how he cried when he discovered how much cheaper the food was when he moved to Australia. I think of the parents in the supermarket aisle, putting back the chocolate biscuits as the weekly shop blows their budget – again. And I think of all those people who endure gut-wrenching anxiety as they watch their items being scanned and the numbers tallying up on the till.
The weekly supermarket shop makes up a significant proportion of most people’s weekly budget and contributes massively to their cost of living.
They deserve to know they are getting a fair deal.
Right now, I don’t think they are. I’m ready to pull out all the stops to get them a fairer deal.
The supermarkets will fight back I’m sure. It’s a fight worth having.
So what can the Government do?
Let me reassure you, we are not going to open our own grocery chain. There will be no KiwiShop.
Instead I’d like to see another competitor enter the supermarket scene to disrupt the major players, drive down prices and increase options for Kiwi shoppers.
Over the past 12 months, international supermarket chains and local investors have expressed interest in entering the New Zealand grocery market.
I want to help them succeed.
We owe it to Kiwi shoppers to help remove the barriers that could get in the way of a new entrant.
That could include removing unnecessary regulatory hurdles in the Overseas Investment Act, Resource Management Act and the entire regulatory maze; helping them to access suitable land and properties for development; helping them to attract capital; cracking down on predatory pricing and ensuring they have fair access to products.
If a new grocery chain opened up here it would deliver massive gains for Kiwi shoppers. So I’m up for actions needed to help make it happen.
At the same time, the Government must continue our efforts to hold the existing supermarket chains accountable to their customers and suppliers.
That means enhancing consumer protections and correcting power imbalances between suppliers and supermarkets. It means strengthening the Grocery Supply Code, enforcing action against non-compliance and illegal conduct, introducing a Wholesale Code to enhance access for smaller retailers, introducing disclosure standards for consumer complaints and responding to further recommendations the Commerce Commission makes.
Commerce Minister Andrew Bayly has already been pushing hard in this space. This year we’re dialling up the pressure.
The major supermarket chains should listen up: our Government is on the side of Kiwi shoppers and we will act to defend their interests.
Number two: The Government’s approach to procurement.
The Government is a huge player in the New Zealand economy. Every year it procures billions of dollars worth of goods and services.
Those doing the procuring understandably play close attention to prices. That is as it should be. We want value for money.
But getting value is not just about cost. Getting value is also about assessing the contribution particular contracts can make to New Zealand as a whole.
The Government wants the Government agencies doing the procuring to assess the value as well as the cost of contracts.
Small and medium-sized businesses say that too often they can’t effectively bid for Government contracts because of the complexity of official procurement processes.
I am reviewing the Government procurement rules that cause this and will soon be recommending changes to Cabinet. I want to ensure value to New Zealand is properly considered when government agencies are picking suppliers, ensuring a more level playing field, improving the ability of smaller businesses to bid and giving more small and medium sized Kiwi businesses the opportunity to grow and become global players.
Third, tax settings.
New Zealand must ensure our tax settings are competitive with other countries who seek to lure our talent, ideas and jobs.
We need to ensure the New Zealand tax system does not discourage businesspeople from investing in their businesses and does not deter foreign investment.
I am considering a range of proposals to make our tax settings more competitive over time.
Fourth, affordable energy.
Alongside the supermarket bill, electricity prices are a major pain point for Kiwi households. Spiking prices and uncertain supply are also a major barrier to industry and the jobs it supports.
As we look out to the world, it’s clear that those choosing to invest in manufacturing, data centers and technological parks will increasingly ask themselves: does the country that we want to invest in have secure, affordable and renewable energy?
New Zealand is pretty well-positioned for that. We already have abundant levels of renewable energy.
The question is, are we well positioned to bring on new generation at the pace needed to keep both security of supply and affordability?
That’s a question the Government is very much engaged in.
The Energy Competition Task Force has published proposals to give consumers more control over energy costs. In addition, independent reviewers will report to Ministers in the middle of the year on the performance of the energy market.
My view is that the world’s surging demand for renewable energy has changed the game. It’s time to think much more boldly about the actions the Government may need to take to incentivise new generation, security of supply and affordable electricity.
Fifth, savings.
Finally, I want to see KiwiSaver working as well as possible for New Zealanders. Commerce Minister Andrew Bayly already has work underway to enable Kiwisaver providers to make greater investments in private assets, to generate good returns for savers and ensure more Kiwi savings can be deployed for investment here at home.
I want to see KiwiSaver balances grow, both to make Kiwis better off in retirement and to grow our collective national savings. I am taking advice on options for achieving that with a view to taking recommendations to Cabinet.
Let me finish by providing you with some perspective.
Our domestic context is challenging. Internationally we are arguably operating in a more complex, faster changing world than at any time in history.
But, when I look around the world, there is nowhere I would rather build a business or raise a family than here in New Zealand.
But the world doesn’t owe us a living. We have to compete hard to deliver for our national interests and the interests of New Zealanders.
Our Government’s plan to grow the economy is about making the most of New Zealand’s many advantages, removing barriers that are holding Kiwis back and competing for our share of the world’s wealth.
This is not an abstract mission. It goes to the heart of what matters to New Zealanders.
To create better paying jobs and make Kiwis more financially secure, we must grow our economy.
To deliver better health services and schools, we must grow our economy.
To make New Zealand more resilient to global challenges, we must grow our economy.
This Government backs New Zealanders to succeed. I know you do too. I wish you a successful conference and look forward to hearing your ideas. Let’s go for growth.

MIL OSI New Zealand News –

February 13, 2025
MIL-OSI Economics: r* in the monetary policy universe: navigational star or dark matter? | Lecture at the London School of Economics and Political Science
Source: Bundesbank

Check against delivery.
1 Introduction

Ladies and gentlemen, It’s a pleasure and an honour for me to speak here before such a distinguished audience.

Remember to look up at the stars and not down at your feet. This was advice from Stephen Hawking, the famous English physicist and author of numerous books on the cosmos. And who would want to contradict the genius?

So today I invite you to join me on a stargazing tour. If you don’t have a telescope with you, no worries. However, I should add a disclaimer here: When a couple look up at the stars, things could get romantic. When astronomers observe the stars, impressive images can come into view. When economists talk about stars, it usually gets complicated. Now you know what you’re getting into!

I’m sure you’ve already guessed what topic I have in mind: the natural rate of interest – also known as r-star. It is a concept that economists have been grappling with for more than 125 years.[1] And it has perhaps never received more attention than in the current era of monetary policy.

From a central banker’s perspective, I would like to discuss what role r-star can and should play in the monetary policy universe. I will structure my lecture around four key questions: What is r-star and why is it of interest for monetary policy? How have estimates for r-star evolved over the past decades? What drives uncertainty about current estimates and the future evolution of r-star? What conclusions should monetary policy draw from this?

2 Definition of r-star and use for monetary policy

Let’s start with the definition. The natural rate is the real interest rate that would prevail if the economy were operating at its potential and prices were stable. R-star is commonly thought to be driven by real forces that structurally affect the balance between saving and investment. Think of technological progress and demographics, for example. This also means that r-star should, by definition, be independent of monetary policy. The latter follows from the widely held belief that monetary policy can affect real variables only temporarily, but is neutral in the long term.

At first glance, the natural rate could be a guiding star for the conduct of monetary policy. If a central bank sets its policy rates so that the real interest rate is above r-star, monetary policy is restrictive or “tight”. Consequently, economic activity slows and the inflation rate should decrease. If the real rate is below r-star, monetary policy is expansionary or “loose”. It provides incentives for consumers to purchase more and for enterprises to step up investment and output. Hence, this should result in more economic activity and a higher inflation rate.

However, the idea of the natural rate serving as a guiding star for monetary policy comes with profound challenges. Perhaps the name r-star evokes associations with astronomy and navigation. But these would be misleading. If r-star were like a star in the sky, it would be relatively easy to locate. Stars emit light and are therefore observable.

The natural rate is a theoretical concept. It is based on a hypothetical state of the world. That means the natural rate is, by nature, unobservable. It can only be estimated. For example, models use assumptions about the relationship between measurable variables and r-star. In this respect, the natural rate is not so much like a star shining brightly in the sky. It is more a case of dark matter. As it is invisible, astronomers infer dark matter indirectly by observing its gravitational effects.

If something is hard to find, it only spurs researchers to look even harder – whether they are astronomers or economists. Therefore, we can draw on a variety of estimation methods for the evolution of the natural rate.

3 Estimates for r-star over time

Since around the 1980s various estimates of different types have been pointing to a downward trend for r-star over several decades and across many advanced economies.[2] In the wake of the global financial crisis, the estimates slumped to exceptionally low levels.[3] This development was roughly in line with the observed trajectory of actual real interest rates of short- and long-term government bonds during this period. And no wonder: In the long run, both should be driven by the same fundamental forces affecting the balance between saving and investment.

So the question is this: what has lifted saving and depressed investment? A simple answer would be: in the long term, the most important driver is potential growth. But this finding is not very enlightening. Potential growth is also not observable. It is determined by underlying forces such as demographics and technological progress. This is where we need to look for the causes.

Indeed, according to a number of recent studies, waning productivity growth and population ageing were the key factors in pushing saving up and investment down.[4] Lower productivity reduces the return on investment, so people are less willing to invest. As they expect to live longer, they are more willing to save.

In addition, inequality, risk aversion and fiscal policy could be other factors. For example, growing inequality raises saving, as richer households save a larger share of their income. Similarly, higher risk aversion leads to higher saving, especially in safe assets, while lowering investment.[5]

Many of the estimates for r-star reached their lowest point in the pandemic years 2020 and 2021. After that, there were signs of a partial reversal. A recent analysis by Eurosystem economists across a suite of models and data up to the end of 2024 suggests that estimates of r-star range from − ½ % to ½ % in real terms. In nominal terms, they find that it ranges between 1¾ % and 2¼ %.[6]

It is clear that these ranges depend on the estimating approaches considered. Taking into account an even wider array of measures, Bundesbank staff calculations using data up to the end of 2024 reveal a range of 1.8 % to 2.5 %.[7] And the ECB found for the third quarter of 2024: When three estimates derived from versions of the Holston-Laubach-Williams model are factored in, the range of real r-star is − ½ % to 1 % and the nominal range is 1¾ % to 3 %.

All in all, the results suggest that the range of r-star estimates most likely increased by about one percentage point from their lows. The latest estimates by economists from the Bank for International Settlements come to similar findings.[8]

The reasons for the increase after the pandemic are not yet fully clear. For example, high fiscal spending with rising public debt levels could play a role. Or higher needs for capital, as companies make their value chains more resilient by duplicating structures and increasing stock levels.

4 Uncertainties around r-star estimates

Stargazing tours in economics are a journey into the uncertain. This is also and especially true for r-star. Estimates of the natural rate of interest are subject to major uncertainties, shaped by three M’s: megatrends, methodology and monetary policy.

First, we are facing a number of megatrends. Think of climate change, ageing societies, digitalisation, and the risks of de-globalisation and increasing geopolitical divisions. The effects of these megatrends on natural rates are difficult to gauge and may change over time.

On the one hand, they could contribute to a higher natural rate. Here are some examples: The widespread uptake of artificial intelligence could boost productivity growth. The green transition could lead to higher investment. Fiscal deficits could persist at an elevated level due to higher defence spending given geopolitical tensions. The entry of the baby boomer generation into retirement could reduce savings.

On the other hand, life expectancy is predicted to keep rising; the high hopes for the productivity-enhancing effect of AI could turn out to be too optimistic; and given high public debt levels, fiscal space for additional spending is limited in many countries. Overall, it is virtually impossible to predict which developments will prevail in affecting r-star.

The second factor of uncertainty is methodology. The methods used to define and estimate r-star differ in important ways, especially in terms of time and risk.

Ricardo Reis demonstrates this impressively in a recent paper.[9] He presents four different “r-stars”. They are based on four different conceptual approaches. And they developed quite differently between 1995 and 2019.

One major difference is the risk dimension. Knut Wicksell’s original definition of the natural rate was the rate of return on physical capital in equilibrium.[10] The rate of return on physical capital is the return on investment in the real economy. And this rate is very much associated with risks.

However, this perspective has been lost in virtually all of the model approaches. Generally, they use rather secure government bond yields as a starting point. Again, with regard to the real economy, a risky return on capital would be a more appropriate yardstick. When we look at measures for the return on private capital, we see a strong contrast with risk-free rates. Returns on private capital have remained broadly stable over the last decades in the US,[11] Germany[12] and the euro area as a whole.[13]

From these observations, Ricardo Reis draws the following conclusion: focusing exclusively on the return on government bonds as the measure of r-star, while neglecting the return on private capital, leads to the wrong policy advice.[14]

Another case in point is the time horizon that is considered. Commonly cited estimates seek to assess the real rate that prevails in the longer run, when all shocks have dissipated. Most of these estimates are highly imprecise. Many methods simply project the current or the historical level of real rates into the future. This may confound permanent trends with cyclical factors, which may not be representative for the future. As a result, such methods could miss important turning points in real rate trends.

Other approaches characterise a short-run real rate in a hypothetical world without frictions. While interesting, this concept is of limited value for actual policymaking in the real world. Methods based on a short-term equilibrium tend to produce more volatile estimates of r-star.

There is a third reason for caution: monetary policy itself may play a role in shaping the natural rate or its estimates. A number of studies challenge the view that money is neutral in the long run.[15]

There are different channels through which monetary policy could have lasting effects on real interest rates. Prolonged tight monetary policy, for example, may lower investment, innovation and productivity growth.[16] By contrast, persistent monetary easing could fuel financial imbalances and contribute to zombification.[17]

Moreover, recent research suggests that central bank announcements provide guidance about the trend in real rates. For instance, a narrow window around Fed meetings captures most of the trend decline in US real long-term yields since 1980.[18] This could mean: when central banks look for r-star in financial market prices, they might actually be looking in a mirror.[19] Feedback loops between monetary policy and markets could unduly reinforce their perceptions about r-star. And shifts in perceived r-star could affect actual r-star as it influences saving and investment decisions.

5 Conclusions for monetary policy

Against the backdrop of these major uncertainties, the final key question of my speech is this: what role can and should r-star play for monetary policy in practice?

Let’s approach the answer with a thought experiment: Put yourself in the shoes of a monetary policymaker who only looks at r-star. The relevant interest rate with which you steer the monetary policy stance is currently 2.75 %. After a previous series of interest rate cuts, you consider whether a further cut would be appropriate.

Your staff inform you that various point estimates of r-star range from around 1.8 % to 2.5 % in nominal terms. If r-star were at the upper end of the estimates, the policy rate would become neutral with the next rate cut. Things would be different if r-star were at the lower end of the estimates: Monetary policy would continue to be restrictive, even after several further rate cuts.

So how would you proceed, given a certain stance you want to achieve? Beware: If you rely on a wrong estimate, your decision may have a different effect on inflation than you intended. Simply choosing the middle of the range might not be a happy medium. Around the point estimates, there are often uncertainty bands of different sizes and with asymmetries.

As you have probably guessed: It is no coincidence that I have described this particular decision-making situation. It looks similar in the euro area ahead of the next monetary policy meeting of the ECB Governing Council at the beginning of March. After several rate cuts, the neutral rate could already be near – or there may still be some way to go.

The President of the New York Fed, John Williams, put the problem in a nutshell when he said: as we have gotten closer to the range of estimates of neutral, what appeared to be a bright point of light is really a fuzzy blur.[20]

The bottom line here is this: The closer we get to the neutral rate, the more appropriate it becomes to take a gradual approach. For this purpose, r-star is a helpful concept: it indicates when we need to be more cautious with policy rate moves so that we don’t take a wrong step.

At the same time, the limits of the concept are also clear: it would be risky to base decisions mainly on r-star estimates. Much more is needed to assess the current monetary policy stance and the optimal policy path for the near future.

That is why the Eurosystem uses a variety of financial, real economic and other indicators along the monetary policy transmission mechanism. We want the fullest picture possible. And, of course, r-star also has a place in this picture. For instance, r-star is included in model-based optimal policy projections that we use in the decision-making process.

In my opinion, proceeding in a data-driven and gradual manner has served the ECB Governing Council well. There is no reason to act hastily in the present uncertain environment. The data will tell us where we need to go.

Away from day-to-day monetary policymaking, the concept of the natural rate of interest provides a useful framework. This is also exemplified in the policy scenarios that Ricardo Reis presented last week in Brussels.[21]

He works with the assumption that government bond rates remain around current levels. I would add the assumption that inflation stays on target – actually, that is what I am in office for and committed to. Assuming output is at capacity, policy rates would be persistently higher than in the past. But the recommendations on actual monetary policy depend on the driving forces: is the new setting caused by less demand for safe and liquid assets or by an increase in productivity? And he has two more scenarios in his paper!

That provides a good example of why we should take a close look at the factors behind r-star estimates. Here it is important to even better understand the forces that are shifting real interest rate trends. We need to find out how these forces and trends affect our work to ensure price stability.

Reviewing our monetary policy strategy from time to time is therefore vital. That is precisely what we are doing right now in the Eurosystem. And, of course, in this process, we look at all the questions I mentioned about r-star.

Our stargazing tour is drawing to a close. It turns out we were dealing more with dark matter than with a shining star. Just as dark matter is an exciting field for astronomers, r-star is a rewarding topic for economists.

Using r-star alone to navigate the monetary policy universe could be like flying almost blind. But having it as one of many instruments in your cockpit is highly useful.

I would like to end by quoting Stephen Hawking again: Mankind’s greatest achievements have come about by talking, and its greatest failures by not talking.

Footnotes:

Wicksell, K. (1898), Geldzins und Güterpreise: eine Studie über die den Tauschwert des Geldes bestimmenden Ursachen, Jena, G. Fischer (English version as ibid. (1936), Interest and prices: a study of the causes regulating the value of money, London, Macmillan).

Obstfeld, M., Natural and Neutral Real Interest Rates: Past and Future, NBER Working Paper, No 31949, December 2023.

Brand, C., M. Bielecki and A. Penalver (2018), The natural rate of interest: estimates, drivers, and challenges to monetary policy, ECB Occasional Paper, No 217.

Cesa-Bianchi, A., R. Harrison and R. Sajedi (2023), Global R*, CEPR Discussion Paper No 18518; Davis, J., C. Fuenzalida, L. Huetsch, B. Mills and A. M. Taylor (2024), Global natural rates in the long run: Postwar macro trends and the market-implied r* in 10 advanced economies, Journal of International Economics, Vol. 149; International Monetary Fund (2023), The natural rate of interest: drivers and implications for policy, World Economic Outlook, April, Chapter 2.

On the development of risk appetite in financial markets, see Deutsche Bundesbank, Risk appetite in financial markets and monetary policy, Monthly Report, January 2025.

Brand, C., N. Lisack and F. Mazelis (2025), Natural rate estimates for the euro area: insights, uncertainties and shortcomings, ECB Economic Bulletin, 1/2025.

Additional models would also provide values outside this range, but are currently not deemed sufficiently robust.

Benigno, G., B. Hofmann, G. Nuño and D. Sandri (2024), Quo vadis, r*? The natural rate of interest after the pandemic, BIS Quarterly Review, March.

Reis, R. (2025), The Four R-stars: From Interest Rates to Inflation and Back, draft working paper.

Wicksell, K. (1898), op. cit.

Caballero, R., E. Farhi and P.-O. Gourinchas (2017), Rents, Technical Change, and Risk Premia Accounting for Secular Trends in Interest Rates, Returns on Capital, Earning Yields, and Factor Shares, American Economic Review: Papers & Proceedings 107(5), pp. 614‑620.

Deutsche Bundesbank, The natural rate of interest, Monthly Report, October 2017.

Brand, C., M. Bielecki and A. Penalver (2018), The natural rate of interest: estimates, drivers, and challenges to monetary policy, ECB Occasional Paper, No 217.

Reis, R., Which r-star, public bonds or private investment? Measurement and policy implications, Unpublished manuscript, September 2022.

Jordà, Ò., S. Singh and A. Taylor, The long-run effects of monetary policy, NBER Working Papers, No 26666, January 2020, revised September 2024; Benigno, G., B. Hofmann, G. Nuño and D. Sandri (2024), Quo vadis, r*? The natural rate of interest after the pandemic, BIS Quarterly Review, March.

Baqaee, D., E. Farhi and K. Sangani, The supply-side effects of monetary policy, NBER Working Paper, No 28345, January 2021, revised March 2023; Ma, Y. and K. Zimmermann, Monetary Policy and Innovation, NBER Working Paper, No 31698, September 2023.

Borio, C., P. Disyatat, M. Juselius and P. Rungcharoenkitkul (2022), Why so low for so long? A long-term view of real interest rates, International Journal of Central Banking, Vol. 18, No 3.

Hillenbrand, S. (2025), The Fed and the Secular Decline in Interest Rates, The Review of Financial Studies, forthcoming.

Williams, J. C. (2017), Comment on “Safety, Liquidity, and the Natural Rate of Interest”, by M. Del Negro, M. P. Giannoni, D. Giannone, and A. Tambalotti, Brookings Papers on Economic Activity, Vol. 1, pp. 235‑316; Rungcharoenkitkul, P. and F. Winkler, The natural rate of interest through a hall of mirrors, BIS Working Paper No 974, November 2021.

Williams, J. C., Remarks at the 42nd Annual Central Banking Seminar, Federal Reserve Bank of New York, New York City, 1 October 2018.

Reis, R. (2025), op. cit.
MIL OSI Economics –
February 13, 2025

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1 Introduction

2 Definition of r-star and use for monetary policy

3 Estimates for r-star over time

4 Uncertainties around r-star estimates

5 Conclusions for monetary policy