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Category: Russian Federation

  • MIL-OSI Global: Trump takes first swing states after voting passes peacefully

    Source: The Conversation – UK – By Dafydd Townley, Teaching Fellow in International Security, University of Portsmouth

    Donald Trump looked poised to take some key battleground states this morning as votes continue to be counted. The Republicans were also being predicted to take control of the Senate.

    North Carolina with its 16 electoral college votes was called for Trump in the early hours of the morning, and another key east coast state, Georgia and its 16 electoral college votes, was also predicted to have been gained by Trump. Trump won other major states, from Iowa to Texas, with a strong showing at the polls.

    As well as this, Republicans have taken back control of the Senate as they were forecast to, after Democrats lost their slender lead. If Trump is victorious, this will provide him with the congressional support he needs to get his appointees ratified and pass laws without obstruction.

    Turnout has been impressive and initial speculation is that Trump has surpassed his rural support from 2020 while Democrat Kamala Harris only matched the suburban numbers that Biden achieved four years ago. NBC exit polls also showed Trump had more support from voters under 30 than any Republican candidate since 2008.

    The BBC reported that early exit polls indicated that voters were most concerned with the state of the democracy (35%) with the economy coming a close second (31%).

    These concerns have led to a turnout that will be just below the 2020 figures, according to Professor Michael McDonald, of the University of Florida.

    In too-close-to-call battleground state Pennsylvania, it was reported that voters were queueing in their hundreds over an hour before the polls opened at 7am.

    In Michigan, another key state in the election, officials said that those voters who had voted early – both the absentee and in-person votes – numbered almost as many as the total votes for the 2020 election.

    Michigan’s Secretary of State, Jocelyn Benson, said that the state was “on pace to see another high turnout election with voters all across the state enthusiastic and engaged”. And much of it was done in a good atmosphere with election chairperson Jennifer Jenkins telling reporters that it was “good vibes all around”.

    Safety concerns

    Concerns about whether election day would pass peacefully have not kept voters away.

    As revealed in a memo obtained by the non-partisan group, Property of the People, the Department of Homeland Security had issued a warning in September that election infrastructure was “an attractive target for some domestic violent extremists” particularly those with “election-related grievances” who seek to disrupt the democratic process and election operations.

    In the nation’s capital, Washington DC, police arrested a man who was stopped during the screening process at the US Capitol visitor centre. Authorities stated that he smelled like gasoline and had a torch lighter, flare gun and papers he intended to deliver to Congress.

    Capitol Police Chief J. Thomas Manger, speaking at a press conference shortly after the incident, stated that “there is no indication right now that it had anything to do with the election”.

    The greatest threat to the smooth running of the election on polling day seemed not to come from domestic perpetrators but from foreign interference, particularly in the crucial swing state races.

    Several polling stations in Georgia, Michigan, Arizona and Wisconsin were the victims of hoax bomb threats that caused temporary closures of the sites. The threats were believed to be sent by emails that were traced back to Russian email domains.

    In Navajo County in Arizona, four polling stations were the target of bomb threats. Arizona Secretary of State Adrian Fontes told reporters that election officials in the state had “no reason to believe that any of our voters or any of our polling places are in any sort of jeopardy.”

    “We also have reason to believe, although I won’t get into specifics, that this comes from one of our foreign enemies, namely Russia,” he continued.

    In Pennsylvania, Governor Josh Shapiro announced at a press conference that there had been multiple bomb threats at polling stations and municipal centres across the state.

    Shapiro, who was at one time thought of as a potential running mate for Harris, revealed that “state and local law enforcement – along with the FBI – are investigating these threats and thus far, there is no credible threat to the public”.

    This came after reports emerged of at least ten polling locations in Philadelphia and in surrounding areas were sent a bomb threat via email at 6pm local time.

    Republican Georgia Secretary of State Brad Raffensperger accused Russia of being the cause of the threats aimed at polling locations in the southern state. “They don’t want us to have a smooth, fair and accurate election, and if they can get us to fight among ourselves, they can count that as a victory,” he told reporters.

    The FBI stated that it was aware of the threats and that many appeared “to originate from Russian email domains”. The Russian embassy in Washington denied the threats.

    Last Thursday, Georgia was also the subject of what the US intelligence community called a disinformation campaign designed to cast doubt on the legitimacy of the election result through an online video that “depicted individuals claiming to be from Haiti and voting illegally in multiple counties in Georgia”.

    Researchers at Clemson University in South Carolina identified the work as being that of Russian disinformation group Storm-1516. Darren Linvill of Clemson University, stated that Russian group had “turned their focus squarely on the US election.”

    And the integrity of this election took a further hit when Republican candidate Donald Trump made unfounded accusations on social media platform Truth Social of election fraud in Philadelphia, a must-win state for the former president.

    Philadelphia District Attorney Larry Krasner said through a spokesperson that “the only talk about massive cheating has come from one of the candidates, Donald J. Trump. There is no factual basis whatsoever within law enforcement to support this wild allegation”.

    Experts have warned that such campaigns could give momentum to accusations that the election is not legitimate and that this, in turn, could trigger post-election violence.

    As the results come in, America holds it breath that any potential transition of power will be more peaceful than four years ago.

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

    – ref. Trump takes first swing states after voting passes peacefully – https://theconversation.com/trump-takes-first-swing-states-after-voting-passes-peacefully-242716

    MIL OSI – Global Reports –

  • MIL-OSI Russia: Polytechnicians are winners and prize winners of the Olympiad in engineering and computer graphics

    Translation. Region: Russian Federation –

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

    A team of students from the Polytechnic University took part in the All-Russian and regional Olympiads in engineering and computer graphics (descriptive geometry).

    The 23rd All-Russian Student Olympiad in Descriptive Geometry, Engineering and Computer Graphics “Geometryada” was held in Moscow at the Department of Engineering and Computer Graphics of the Russian Technological University – MIREA. Representatives of 22 Russian universities competed for the victory, including three from St. Petersburg – SPbPU, BSTU “VOENMEKH” named after D. F. Ustinov and SPbSUT named after prof. M. A. Bonch-Bruevich.

    The Polytechnic University team participated in the Olympiad for the first time. The team included IMMiT students Kirill Khitushkin, Aidar Ibragimov, Matvey Leontyev, Anton Izyumov and Artem Doronin. In the team standings in the “Descriptive Geometry” section, the Polytechnics took third place. In the individual standings, Kirill Khitushkin also came in third. In the “Engineering Graphics” section, the SPbPU team entered the top ten.

    The event was organized at the highest level. The opening ceremony left the most pleasant impressions. We successfully completed the tasks and gained valuable experience. We will look forward to participating next year to improve the result, – shared Matvey Leontiev.

    The first experience of participation of the polytechnics can be considered definitely successful. A special role in such a significant result was played by serious regular training, which was provided by Associate Professor Tatyana Markova, who conducted systematic classes with candidates for the team, – noted Associate Professor of the Higher School of Design and Architecture of the Institute of Social Sciences Mikhail Kokorin, the head of the team.

    Also, the regional student Olympiad in engineering and computer graphics (descriptive geometry) was held at BSTU “Voenmekh”, organized by the Committee for Science and Higher Education of St. Petersburg. The event was attended by 75 students from 12 St. Petersburg universities.

    The Polytechnic University was represented by students of the Civil Engineering Institute majoring in Architectural Environment Design A. Glukhova and D. Otinova, as well as students of the Institute of Metallurgy and Metallurgy K. Khitushkin, A. Ibragimov, M. Leontyev, A. Izyumov and I. Zaborovsky. The team leader is Associate Professor of the Higher School of Design and Architecture of the Civil Engineering Institute Tatyana Markova.

    The interuniversity jury checked and assessed the works, summed up the results. It included associate professors of the Higher School of Design and Architecture of the Institute of Social Sciences Mikhail Kokorin and Elena Knyazeva.

    Polytechnician Kirill Khitushkin won the individual championship (29.63 points out of 30), Aidar Ibragimov took second place (28.5 points out of 30).

    The Olympiad was memorable for its diverse tasks and the exciting search for solutions. It can be compared to solving a crossword or sudoku. The event flew by unnoticed, I wanted to stay longer and rack my brains, – said Daria Otinova.

    As a result, the Polytechnic University was awarded second place. The victory in the Olympiad was won by the BSTU “Voenmekh” team, and the third place went to the A.F. Mozhaisky VKA.

    The tasks were of a high level of complexity, but our students coped with them perfectly. We are proud of the guys and wish them further success in all their endeavors, – shared Elena Knyazeva.

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

    MIL OSI Russia News –

  • MIL-OSI Russia: VDNKh invites you to free lectures as part of the International Week of Science and Peace

    Translation. Region: Russian Federation –

    Source: Moscow Government – Government of Moscow –

    November 9 marks the beginning of the International Week of Science and Peace. On this day, free lectures for all comers will be held in the congress hall of the Cosmonautics and Aviation Center at VDNKh.

    At 14:00 guests are invited to a lecture “Closed space: you can’t quarrel, you can’t come to an agreement”. They will tell you how people with different views can live together, whether it is possible to never quarrel, and how to prevent conflict from developing. The speaker will be Anna Yusupova, a leading researcher at the Laboratory of Social and Cognitive Psychology at the Institute of Medical and Biological Problems of the Russian Academy of Sciences (RAS). In addition, the lecture will discuss self-regulation and self-help techniques, formulate a personal roadmap – try to define topics, criteria and points of no return for yourself.

    There will be a lecture at 16:00 “Achievements of Modern Physics”. Blogger, writer and popularizer of science Dmitry Pobedinsky will tell whether it is possible to meet life on other planets, create a code that cannot be deciphered and then crack it, and also what the Higgs boson hides. Guests will learn why the Universe is expanding. And there will also be talk about quantum computers, materials of the future and mysterious dark energy.

    The lecture will start at 18:00 “Asteroids. Small bodies of the Solar system”. It will be read by Leonid Elenin, a research fellow at the Keldysh Institute of Applied Mathematics of the Russian Academy of Sciences and a discoverer of comets and asteroids. Asteroids are objects in the Solar System discovered in the 19th century by the Italian astronomer Giuseppe Piazzi. There are now more than a million of them known. Among the asteroids, there are some that can pose a serious threat to the Earth. Listeners will learn where they came from, how astronomers discovered the distant Edgeworth-Kuiper Belt, what connects these cosmic bodies with comets, how to deliver a particle of their relict matter to Earth, and whether it is possible to extract minerals from them.

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

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

    http://vvv.mos.ru/nevs/item/146215073/

    MIL OSI Russia News –

  • MIL-OSI Russia: “Culture of Moscow”: a guide to highlights has appeared on the mos.ru portal

    Translation. Region: Russian Federation –

    Source: Moscow Government – Government of Moscow –

    A section has opened on the mos.ru portal “Culture of Moscow”. It contains news, announcements of upcoming events, useful services and information about creative institutions. This was reported by Natalia Sergunina, Deputy Mayor of Moscow.

    “The new online project has already combined information on more than 800 city sites: parks, libraries, theaters, museums and other spaces,” noted Natalia Sergunina.

    The main page contains the main thematic blocks. One of them is “Events”.

    “Here users can choose concerts, excursions or performances that interest them and immediately buy tickets. Currently, the poster presents more than 15 thousand events. The list will be constantly updated and supplemented,” said Natalia Sergunina.

    The page has a convenient search system: by area, date and location of the institution. Here you can also find author’s selections, for example, “Five romantic performances” or “Six main exhibitions of autumn”.

    Offers for children and teenagers are placed in a separate category. In the block “Education”There is information about creative educational institutions and various courses.

    On the page “Libraries”Those interested can apply for a single library card, find the nearest library, look through the book catalogue and reserve publications.

    In addition, in the section “Culture of Moscow”will regularly talk about famous Muscovites, as well as about city programs, special projects and promotions.

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

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

    http://vvv.mos.ru/nevs/item/146227073/

    MIL OSI Russia News –

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

    Source: NATO

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

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

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

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

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

    alignment of China, Russia, North Korea and Iran.

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

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

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

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

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

    MIL Security OSI –

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

    Translation. Region: Russian Federation –

    Source: Bank “ROSSIA” Russia Bank –

    Press Releases and Events

    06.11.2024

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

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

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

    Reference

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

    Back to list

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

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

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

    MIL OSI Russia News –

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

    Translation. Region: Russian Federation –

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

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

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

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

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

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

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

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

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

    Full photo album.

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

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

    MIL OSI Russia News –

  • MIL-OSI Russia: Challenge accepted! Polytechnic hosted a festival for schoolchildren

    Translation. Region: Russian Federation –

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

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

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

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

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

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

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

    MIL OSI Russia News –

  • MIL-OSI Economics: Frank Elderson: The first decade of European supervision: taking stock and looking ahead

    Source: European Central Bank

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

    Frankfurt am Main, 4 November 2024

    Introduction

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

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

    But that day ten years ago was anything but typical.

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

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

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

    There is, however, no room for complacency.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Highly complex, volatile and challenging risk landscape

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

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

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

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

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

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

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

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

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

    Ensuring bank resilience in the era of polycrises

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

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

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

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

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

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

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

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

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

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

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

    Deregulation and lenient supervision would compromise resilience

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

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

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

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

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

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

    Conclusion

    Let me conclude.

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

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

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

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

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

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

    MIL OSI Economics –

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

    Source: WTO

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

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

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    MIL OSI Economics –

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

    MIL OSI – Global Reports –

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

    Source: GlobeNewswire (MIL-OSI)

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

    THIRD QUARTER HIGHLIGHTS

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

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

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

    FINANCIAL UPDATE

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

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

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

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

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

    THIRD QUARTER 2024 CASH DIVIDEND & CAPITAL RETURN PROGRAM

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

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

    OPERATIONS UPDATE

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

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

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

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

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

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

    GUIDANCE UPDATE

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

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

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

    CONFERENCE CALL

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

    About Viper Energy, Inc.

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

    About Diamondback Energy, Inc.

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

    Forward-Looking Statements

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

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

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

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

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

    NON-GAAP FINANCIAL MEASURES

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

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

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

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

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

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

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

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

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

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

    RECONCILIATION OF LONG-TERM DEBT TO NET DEBT

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

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

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

    Derivatives

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

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

    Investor Contact:

    Austen Gilfillian
    +1 432.221.7420
    agilfillian@viperenergy.com 

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

    THIRD QUARTER 2024 HIGHLIGHTS

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

    TRP ENERGY (“TRP”) TRADE

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

    OPERATIONS UPDATE

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

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

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

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

    FINANCIAL UPDATE

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

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

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

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

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

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

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

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

    DIVIDEND DECLARATIONS

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

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

    COMMON STOCK REPURCHASE PROGRAM

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

    UPDATED 2024 GUIDANCE

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

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

    CONFERENCE CALL

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

    About Diamondback Energy, Inc.

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

    Forward-Looking Statements

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

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

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

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

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


    NON-GAAP FINANCIAL MEASURES

    ADJUSTED EBITDA

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

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

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


    ADJUSTED NET INCOME

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

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

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

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


    OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES AND FREE CASH FLOW

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

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

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

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

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


    NET DEBT

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

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

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


    DERIVATIVES

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

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

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

    Diamondback Stockholders,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Forward-Looking Statements:

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

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

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

    Non-GAAP Financial Measures

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

    The MIL Network –

  • MIL-OSI: NXP Semiconductors Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    EINDHOVEN, The Netherlands, Nov. 04, 2024 (GLOBE NEWSWIRE) — NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the third quarter, which ended September 29, 2024. “NXP delivered quarterly revenue of $3.25 billion, in-line with our overall guidance. While we experienced some strength against our expectations in the Communication Infrastructure, Mobile and Automotive end markets, we were confronted with increasing macro related weakness in the Industrial & IoT market. Our guidance for the fourth quarter reflects broader macro weakness especially in Europe and the Americas. We focus on managing what is in our control enabling NXP to drive resilient profitability and earnings in an uncertain demand environment,” said Kurt Sievers, NXP President and Chief Executive Officer.

    Key Highlights for the Third Quarter 2024:

    • Revenue was $3.25 billion, down 5 percent year-on-year;
    • GAAP gross margin was 57.4 percent, GAAP operating margin was 30.5 percent and GAAP diluted Net Income per Share was $2.79;
    • Non-GAAP gross margin was 58.2 percent, non-GAAP operating margin was 35.5 percent, and non-GAAP diluted Net Income per Share was $3.45;
    • Cash flow from operations was $779 million, with net capex investments of $186 million, resulting in non-GAAP free cash flow of $593 million;
    • During the third quarter of 2024, NXP continued to execute its capital return policy with the payment of $259 million in cash dividends, and the repurchase of $305 million of its common shares. The total capital return of $564 million in the quarter represented 95 percent of third quarter non-GAAP free cash flow. On a trailing twelve month basis, capital return to shareholders represented $2.4 billion or 87 percent of non-GAAP free cash flow. The interim dividend for the third quarter 2024 was paid in cash on October 9, 2024 to shareholders of record as of September 12, 2024. On August 29th, the NXP board of directors authorized an additional $2.0 billion for share repurchases, resulting in a $2.64 billion share repurchase balance at the end of the third quarter. Subsequent to the end of the third quarter, between September 30, 2024 and November 1, 2024, NXP executed via a 10b5-1 program additional share repurchases totaling $117 million;
    • On August 20, 2024, ESMC, the previously announced manufacturing joint venture between TSMC, Robert Bosch GmbH, Infineon Technologies AG and NXP Semiconductors N.V. held a groundbreaking ceremony to mark the initial phase of construction of its first semiconductor fab in Dresden, Germany;
    • On September 4, 2024, Vanguard International Semiconductor Corporation and NXP Semiconductors N.V. announced the receipt of all necessary governmental approvals from relevant authorities and injected capital to officially establish the previously announced VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC) manufacturing joint venture. The company will now proceed with the planned construction of VSMC’s first 300mm wafer manufacturing facility;
    • On September 10, 2024, NXP announced the Trimension® SR250, the industry’s first single-chip, UWB solution to enable Industrial and IoT applications that integrates on-chip processing capabilities with both short-range UWB-based radar and secure ranging;
    • On September 17, 2024, NXP announced the MC33777, the world’s first electric vehicle battery junction box IC that consolidates essential BMS functions into a single device; and
    • On September 24, 2024, NXP announced the new i.MX RT700 crossover MCU family, designed to power smart AI-enabled edge devices, such as wearables, consumer medical devices, smart home devices and HMI platforms.

    Summary of Reported Third Quarter 2024 ($ millions, unaudited) (1)

      Q3 2024
    		   Q2 2024
    		   Q3 2023    Q – Q   Y – Y
    Total Revenue $ 3,250     $ 3,127     $ 3,434     4%   -5%
    GAAP Gross Profit $ 1,866     $ 1,792     $ 1,965     4%   -5%
    Gross Profit Adjustments(i) $ (26 )   $ (41 )   $ (45 )        
    Non-GAAP Gross Profit $ 1,892     $ 1,833     $ 2,010     3%   -6%
    GAAP Gross Margin   57.4 %     57.3 %     57.2 %        
    Non-GAAP Gross Margin   58.2 %     58.6 %     58.5 %        
    GAAP Operating Income (Loss) $ 990     $ 896     $ 992     10%   —%
    Operating Income Adjustments(i) $ (163 )   $ (175 )   $ (211 )        
    Non-GAAP Operating Income $ 1,153     $ 1,071     $ 1,203     8%   -4%
    GAAP Operating Margin   30.5 %     28.7 %     28.9 %        
    Non-GAAP Operating Margin   35.5 %     34.3 %     35.0 %        
    GAAP Net Income (Loss) attributable to Stockholders $ 718     $ 658     $ 787          
    Net Income Adjustments(i) $ (172 )   $ (171 )   $ (178 )        
    Non-GAAP Net Income (Loss) Attributable to Stockholders $ 890     $ 829     $ 965          
    GAAP diluted Net Income (Loss) per Share(ii) $ 2.79     $ 2.54     $ 3.01          
    Non-GAAP diluted Net Income (Loss) per Share(ii) $ 3.45     $ 3.20     $ 3.70          
    Additional information
      Q3 2024
    		   Q2 2024
    		   Q3 2023
    		   Q – Q   Y – Y
    Automotive $ 1,829     $ 1,728     $ 1,891     6%   -3%
    Industrial & IoT $ 563     $ 616     $ 607     -9%   -7%
    Mobile $ 407     $ 345     $ 377     18%   8%
    Comm. Infra. & Other $ 451     $ 438     $ 559     3%   -19%
    DIO   149       148       134          
    DPO   60       64       60          
    DSO   30       27       25          
    Cash Conversion Cycle   119       111       99          
    Channel Inventory (weeks / months)   8 / 1.9       7 / 1.7       7 / 1.5          
    Gross Financial Leverage(iii)   1.9x       1.9x       2.1x          
    Net Financial Leverage(iv)   1.3x       1.3x       1.3x          
                                   
    1. Additional Information for the Third Quarter 2024:
      1. For an explanation of GAAP to non-GAAP adjustments, please see “Non-GAAP Financial Measures”.
      2. Refer to Table 1 below for the weighted average number of diluted shares for the presented periods.
      3. Gross financial leverage is defined as gross debt divided by trailing twelve months adjusted EBITDA.
      4. Net financial leverage is defined as net debt divided by trailing twelve months adjusted EBITDA.

    Guidance for the Fourth Quarter 2024: ($ millions, except Per Share data) (1)

                  Guidance Range              
      GAAP   Reconciliation   non-GAAP
      Low   Mid   High       Low   Mid   High
    Total Revenue $3,000   $3,100   $3,200       $3,000   $3,100     $3,200
    Q-Q -8%   -5%   -2%       -8%   -5     -2%
    Y-Y -12%   -9%   -6%       -12%   -9     -6%
    Gross Profit $1,674   $1,746   $1,820   $(35)   $1,709   $1,781     $1,855
    Gross Margin 55.8%   56.3%   56.9%       57.0%   57.5%     58.0%
    Operating Income (loss) $810   $872   $936   $(184)   $994   $1,056     $1,120
    Operating Margin 27.0%   28.1%   29.3%       33.1%   34.1%     35.0%
    Financial Income (expense) $(87)   $(87)   $(87)   $(10)   $(77)   $(77)     $(77)
    Tax rate 17.2%-18.2%       16.3%-17.3%
    NCI & Other $(14)   $(14)   $(14)   $(3)   $(11)   $(11)     $(11)
    Shares – diluted 257.0   257.0   257.0       257.0   257.0     257.0
    Earnings Per Share – diluted $2.26   $2.46   $2.66       $2.93   $3.13     $3.33
                                 

    Note (1) Additional Information:

    1. GAAP Gross Profit is expected to include Purchase Price Accounting (“PPA”) effects, $(10) million; Share-based Compensation, $(15) million; Other Incidentals, $(10) million;
    2. GAAP Operating Income (loss) is expected to include PPA effects, $(39) million; Share-based Compensation, $(118) million; Restructuring and Other Incidentals, $(27) million;
    3. GAAP Financial Income (expense) is expected to include Other financial expense $(10) million;
    4. GAAP Non-Controlling Interest (NCI) and Other is expected to include results relating to non-foundry equity-accounted investees $(3) million;
    5. GAAP diluted EPS is expected to include the adjustments noted above for PPA effects, Share-based Compensation, Restructuring and Other Incidentals in GAAP Operating Income (loss), the adjustment for Other financial expense, the adjustment for Non-controlling interest & Other and the adjustment on Tax due to the earlier mentioned adjustments.

    NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP’s control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding “Non-GAAP Financial Measures” below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding “Forward-looking Statements.” We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances.

    Non-GAAP Financial Measures

    In managing NXP’s business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures, that are not in accordance with, nor an alternative to, U.S. generally accepted accounting principles (“GAAP”). In measuring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing our gross margin and operating margin and when assessing appropriate levels of research and development efforts. In addition, management relies upon these non-GAAP financial measures when making decisions about product spending, administrative budgets, and other operating expenses. We believe that these non-GAAP financial measures, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company’s results of operations and the factors and trends affecting NXP’s business. We believe that they enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to core operating performance, certain non-cash expenses and share-based compensation expense, which may obscure trends in NXP’s underlying performance. This information also enables investors to compare financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management.

    These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The presentation of these and other similar items in NXP’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled “Financial Reconciliation of GAAP to non-GAAP Results (unaudited).” Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at https://investors.nxp.com for additional information related to our rationale for using these non-GAAP financial measures, as well as the impact of these measures on the presentation of NXP’s operations.

    In addition to providing financial information on a basis consistent with GAAP, NXP also provides the following selected financial measures on a non-GAAP basis: (i) Gross profit, (ii) Gross margin, (iii) Research and development, (iv) Selling, general and administrative, (v) Amortization of acquisition-related intangible assets, (vi) Other income, (vii) Operating income (loss), (viii) Operating margin, (ix) Financial Income (expense), (x) Income tax benefit (provision), (xi) Results relating to non-foundry equity-accounted investees, (xii) Net income (loss) attributable to stockholders, (xiii) Earnings per Share – Diluted, (xiv) EBITDA, adjusted EBITDA and trailing 12 month adjusted EBITDA, and (xv) free cash flow, trailing 12 month free cash flow and trailing 12 month free cash flow as a percent of Revenue. The non-GAAP information excludes, where applicable, the amortization of acquisition related intangible assets, the purchase accounting effect on inventory and property, plant and equipment, merger related costs (including integration costs), certain items related to divestitures, share-based compensation expense, restructuring and asset impairment charges, extinguishment of debt, foreign exchange gains and losses, income tax effect on adjustments described above and results from non-foundry equity-accounted investments.

    The difference in the benefit (provision) for income taxes between our GAAP and non-GAAP results relates to the income tax effects of the GAAP to non-GAAP adjustments that we make and the income tax effect of any discrete items that occur in the interim period. Discrete items primarily relate to unexpected tax events that may occur as these amounts cannot be forecasted (e.g., the impact of changes in tax law and/or rates, changes in estimates or resolved tax audits relating to prior year tax provisions, the excess or deficit tax effects on share-based compensation, etc.).

    Conference Call and Webcast Information

    The company will host a conference call with the financial community on Tuesday, November 5, 2024 at 8:00 a.m. U.S. Eastern Standard Time (EST) to review the third quarter 2024 results in detail.

    Interested parties may preregister to obtain a user-specific access code for the call here.

    The call will be webcast and can be accessed from the NXP Investor Relations website at www.nxp.com. A replay of the call will be available on the NXP Investor Relations website within 24 hours of the actual call.

    About NXP Semiconductors

    NXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP’s “Brighter Together” approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $13.28 billion in 2023. Find out more at www.nxp.com.

    Forward-looking Statements

    This document includes forward-looking statements which include statements regarding NXP’s business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which NXP’s products are incorporated; trade disputes between the U.S. and China, potential increase of barriers to international trade and resulting disruptions to NXP’s established supply chains; the impact of government actions and regulations, including restrictions on the export of US-regulated products and technology; increasing and evolving cybersecurity threats and privacy risks, including theft of sensitive or confidential data; the ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity to meet both NXP’s debt service and research and development and capital investment requirements; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers to meet demand; our access to production capacity from third-party outsourcing partners, and any events that might affect their business or NXP’s relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and to successfully cooperate with our alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in customers’ equipment and products; the ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia and the continued hostilities and the armed conflict in the Middle East, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; the ability to maintain good relationships with NXP’s suppliers; and a change in tax laws could have an effect on our estimated effective tax rate. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.

    For further information, please contact:
       
    Investors: Media:
    Jeff Palmer Paige Iven
    jeff.palmer@nxp.com paige.iven@nxp.com
    +1 408 205 0687  +1 817 975 0602

    NXP-CORP

    NXP Semiconductors
    Table 1: Condensed consolidated statement of operations (unaudited)

    ($ in millions except share data) Three months ended
      September 29, 2024   June 30, 2024   October 1, 2023
               
    Revenue $ 3,250     $ 3,127     $ 3,434  
    Cost of revenue   (1,384 )     (1,335 )     (1,469 )
    Gross profit   1,866       1,792       1,965  
    Research and development   (577 )     (594 )     (601 )
    Selling, general and administrative   (265 )     (270 )     (294 )
    Amortization of acquisition-related intangible assets   (29 )     (28 )     (71 )
    Total operating expenses   (871 )     (892 )     (966 )
    Other income (expense)   (5 )     (4 )     (7 )
    Operating income (loss)   990       896       992  
    Financial income (expense):          
    Extinguishment of debt   —       —       —  
    Other financial income (expense)   (82 )     (75 )     (75 )
    Income (loss) before income taxes   908       821       917  
    Benefit (provision) for income taxes   (173 )     (154 )     (123 )
    Results relating to equity-accounted investees   (6 )     (3 )     (2 )
    Net income (loss)   729       664       792  
    Less: Net income (loss) attributable to non-controlling interests   11       6       5  
    Net income (loss) attributable to stockholders   718       658       787  
               
    Earnings per share data:          
    Net income (loss) per common share attributable to stockholders in $
    Basic $ 2.82     $ 2.58     $ 3.06  
    Diluted $ 2.79     $ 2.54     $ 3.01  
               
    Weighted average number of shares of common stock outstanding during the period (in thousands):
    Basic   254,458       255,478       257,488  
    Diluted   257,717       258,732       261,095  
               

    NXP Semiconductors
    Table 2: Condensed consolidated balance sheet (unaudited)

    ($ in millions) As of
      September 29, 2024   June 30, 2024   October 1, 2023
    ASSETS          
    Current assets:          
    Cash and cash equivalents $ 2,748     $ 2,859     $ 4,042  
    Short-term deposits   400       400       —  
    Accounts receivable, net   1,070       927       939  
    Inventories, net   2,234       2,148       2,140  
    Other current assets   574       546       495  
    Total current assets   7,026       6,880       7,616  
               
    Non-current assets:          
    Other non-current assets   2,641       2,290       2,236  
    Property, plant and equipment, net   3,309       3,289       3,197  
    Identified intangible assets, net   735       796       1,010  
    Goodwill   9,958       9,941       9,937  
    Total non-current assets   16,643       16,316       16,380  
               
    Total assets   23,669       23,196       23,996  
               
    LIABILITIES AND EQUITY          
    Current liabilities:          
    Accounts payable   899       929       959  
    Restructuring liabilities-current   52       62       16  
    Other current liabilities   1,542       1,622       1,990  
    Short-term debt   499       499       999  
    Total current liabilities   2,992       3,112       3,964  
               
    Non-current liabilities:          
    Long-term debt   9,683       9,681       10,173  
    Restructuring liabilities   4       7       3  
    Deferred tax liabilities   57       48       44  
    Other non-current liabilities   1,189       1,003       1,014  
    Total non-current liabilities   10,933       10,739       11,234  
               
    Non-controlling interests   338       327       310  
    Stockholders’ equity   9,406       9,018       8,488  
    Total equity   9,744       9,345       8,798  
               
    Total liabilities and equity   23,669       23,196       23,996  
               

    NXP Semiconductors
    Table 3: Condensed consolidated statement of cash flows (unaudited)

    ($ in millions) Three months ended
      September 29, 2024   June 30, 2024   October 1, 2023
    Cash flows from operating activities:          
    Net income (loss) $ 729     $ 664     $ 792  
    Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:          
    Depreciation and amortization   218       213       273  
    Share-based compensation   115       114       103  
    Amortization of discount (premium) on debt, net   —       1       1  
    Amortization of debt issuance costs   2       1       2  
    Results relating to equity-accounted investees   6       3       2  
    (Gain) loss on equity securities, net   7       3       4  
    Deferred tax expense (benefit)   (40 )     (23 )     (33 )
    Changes in operating assets and liabilities:          
    (Increase) decrease in receivables and other current assets   (167 )     10       40  
    (Increase) decrease in inventories   (86 )     (46 )     (34 )
    Increase (decrease) in accounts payable and other liabilities   118       (220 )     (128 )
    (Increase) decrease in other non-current assets   (134 )     40       (49 )
    Exchange differences   7       5       5  
    Other items   4       (4 )     10  
    Net cash provided by (used for) operating activities   779       761       988  
    Cash flows from investing activities:          
    Purchase of identified intangible assets   (26 )     (55 )     (42 )
    Capital expenditures on property, plant and equipment   (186 )     (185 )     (200 )
    Proceeds from the disposals of property, plant and equipment   —       1       —  
    Purchase of investments   (159 )     —       (31 )
    Net cash provided by (used for) investing activities   (371 )     (239 )     (273 )
    Cash flows from financing activities:          
    Dividends paid to common stockholders   (259 )     (260 )     (262 )
    Proceeds from issuance of common stock through stock plans   39       3       36  
    Purchase of treasury shares and restricted stock unit
    withholdings    		   (305 )     (310 )     (306 )
    Other, net   (1 )     —       (1 )
    Net cash provided by (used for) financing activities   (526 )     (567 )     (533 )
    Effect of changes in exchange rates on cash positions   7       (4 )     (3 )
    Increase (decrease) in cash and cash equivalents   (111 )     (49 )     179  
    Cash and cash equivalents at beginning of period   2,859       2,908       3,863  
    Cash and cash equivalents at end of period   2,748       2,859       4,042  
               
    Net cash paid during the period for:          
    Interest   27       86       38  
    Income taxes, net of refunds   196       193       165  
    Net gain (loss) on sale of assets:          
    Cash proceeds from the sale of assets   —       1       —  
    Book value of these assets   —       (1 )     —  
    Non-cash investing activities:          
    Non-cash capital expenditures   125       166       167  
               

    NXP Semiconductors
    Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)

    ($ in millions except share data) Three months ended
      September 29, 2024   June 30, 2024   October 1, 2023
    GAAP Gross Profit $ 1,866     $ 1,792     $ 1,965  
    PPA Effects   (12 )     (12 )     (13 )
    Restructuring   —       (4 )     —  
    Share-based compensation   (14 )     (15 )     (14 )
    Other incidentals   —       (10 )     (18 )
    Non-GAAP Gross Profit $ 1,892     $ 1,833     $ 2,010  
    GAAP Gross margin   57.4 %     57.3 %     57.2 %
    Non-GAAP Gross margin   58.2 %     58.6 %     58.5 %
    GAAP Research and development $ (577 )   $ (594 )   $ (601 )
    Restructuring   —       (4 )     4  
    Share-based compensation   (58 )     (58 )     (53 )
    Other incidentals   —       —       (2 )
    Non-GAAP Research and development $ (519 )   $ (532 )   $ (550 )
    GAAP Selling, general and administrative $ (265 )   $ (270 )   $ (294 )
    PPA effects   (1 )     (1 )     (1 )
    Restructuring   —       2       —  
    Share-based compensation   (43 )     (41 )     (36 )
    Other incidentals   (2 )     (2 )     (4 )
    Non-GAAP Selling, general and administrative $ (219 )   $ (228 )   $ (253 )
    GAAP Operating income (loss) $ 990     $ 896     $ 992  
    PPA effects   (42 )     (41 )     (85 )
    Restructuring   —       (6 )     4  
    Share-based compensation   (115 )     (114 )     (103 )
    Other incidentals   (6 )     (14 )     (27 )
    Non-GAAP Operating income (loss) $ 1,153     $ 1,071     $ 1,203  
    GAAP Operating margin   30.5 %     28.7 %     28.9 %
    Non-GAAP Operating margin   35.5 %     34.3 %     35.0 %
    GAAP Income tax benefit (provision) $ (173 )   $ (154 )   $ (123 )
    Income tax effect   9       15       45  
    Non-GAAP Income tax benefit (provision) $ (182 )   $ (169 )   $ (168 )
    GAAP Net income (loss) attributable to stockholders $ 718     $ 658     $ 787  
    PPA Effects   (42 )     (41 )     (85 )
    Restructuring   —       (6 )     4  
    Share-based compensation   (115 )     (114 )     (103 )
    Other incidentals   (6 )     (14 )     (27 )
    Other adjustments:          
    Adjustments to financial income (expense)   (12 )     (8 )     (10 )
    Income tax effect   9       15       45  
    Results relating to equity-accounted investees, excluding Foundry investees1   (6 )     (3 )     (2 )
    Non-GAAP Net income (loss) attributable to stockholders $ 890     $ 829     $ 965  
               
               
    Additional Information:          
    1. Refer to Table 7 below for further information regarding the results relating to equity-accounted investees.
               
    GAAP net income (loss) per common share attributable to stockholders – diluted $ 2.79     $ 2.54     $ 3.01  
    PPA Effects   (0.16 )     (0.16 )     (0.33 )
    Restructuring   —       (0.02 )     0.01  
    Share-based compensation   (0.45 )     (0.44 )     (0.40 )
    Other incidentals   (0.02 )     (0.06 )     (0.10 )
    Other adjustments:          
    Adjustments to financial income (expense)   (0.05 )     (0.03 )     (0.03 )
    Income tax effect   0.04       0.06       0.17  
    Results relating to equity-accounted investees, excluding Foundry investees1   (0.02 )     (0.01 )     (0.01 )
    Non-GAAP net income (loss) per common share attributable to stockholders – diluted $ 3.45     $ 3.20     $ 3.70  
               
               
    Additional Information:          
    1. Refer to Table 7 below for further information regarding the results relating to equity-accounted investees.

    NXP Semiconductors
    Table 5: Financial Reconciliation of GAAP to non-GAAP Financial income (expense) (unaudited)

    ($ in millions) Three months ended
      September 29, 2024   June 30, 2024   October 1, 2023
    GAAP Financial income (expense) $ (82 )   $ (75 )   $ (75 )
    Foreign exchange loss   (3 )     (2 )     (3 )
    Other financial expense   (9 )     (6 )     (7 )
    Non-GAAP Financial income (expense) $ (70 )   $ (67 )   $ (65 )
               

    NXP Semiconductors
    Table 6: Financial Reconciliation of GAAP to non-GAAP Other income (expense) (unaudited)

    ($ in millions) Three months ended
      September 29, 2024   June 30, 2024   October 1, 2023
    GAAP Other income (expense) $ (5 )   $ (4 )   $ (7 )
    Other incidentals   (4 )     (2 )     (3 )
    Non-GAAP Other income (expense) $ (1 )   $ (2 )   $ (4 )
               

    NXP Semiconductors
    Table 7: Financial Reconciliation of GAAP to non-GAAP Results relating to equity-accounted investees (unaudited)

    ($ in millions) Three months ended
      September 29, 2024   June 30, 2024   October 1, 2023
    GAAP Results relating to equity-accounted investees $ (6 )   $ (3 )   $ (2 )
    Results of equity-accounted investees, excluding Foundry investees1   (6 )     (3 )     (2 )
    Non-GAAP Results relating to equity-accounted investees $ —     $ —     $ —  
               
    Additional Information:
    1. We adjust our results relating to equity-accounted investees for those results from investments over which NXP has significant influence, but not control, and whose business activities are not related to the core operating performance of NXP. Our equity-investments in foundry partners are part of our long-term core operating performance and accordingly those results comprise the Non-GAAP Results relating to equity-accounted investees.

    NXP Semiconductors
    Table 8: Adjusted EBITDA and Free Cash Flow (unaudited)

    ($ in millions) Three months ended
      September 29, 2024   June 30, 2024   October 1, 2023
    GAAP Net income (loss) $ 729     $ 664     $ 792  
    Reconciling items to EBITDA (Non-GAAP)          
    Financial (income) expense   82       75       75  
    (Benefit) provision for income taxes   173       154       123  
    Depreciation   149       146       163  
    Amortization   69       67       110  
    EBITDA (Non-GAAP) $ 1,202     $ 1,106     $ 1,263  
    Reconciling items to adjusted EBITDA (Non-GAAP)          
    Results of equity-accounted investees, excluding Foundry investees1   6       3       2  
    Restructuring   —       6       (4 )
    Share-based compensation   115       114       103  
    Other incidental items   6       14       27  
    Adjusted EBITDA (Non-GAAP) $ 1,329     $ 1,243     $ 1,391  
    Trailing twelve month adjusted EBITDA (Non-GAAP)   5,235       5,297       5,384  
               
               
    Additional Information:          
    1. Refer to Table 7 above for further information regarding the results relating to equity-accounted investees.
               
               
    ($ in millions) Three months ended
      September 29, 2024   June 30, 2024   October 1, 2023
    Net cash provided by (used for) operating activities $ 779     $ 761     $ 988  
    Net capital expenditures on property, plant and equipment   (186 )     (184 )     (200 )
    Non-GAAP free cash flow $ 593     $ 577     $ 788  
    Trailing twelve month non-GAAP free cash flow $ 2,759     $ 2,954     $ 2,568  
    Trailing twelve month non-GAAP free cash flow as percent of Revenue   21 %     23 %     20 %
               

    The MIL Network –

  • MIL-OSI: Par Pacific Holdings Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Nov. 04, 2024 (GLOBE NEWSWIRE) — Par Pacific Holdings, Inc. (NYSE: PARR) (“Par Pacific” or the “Company”) today reported its financial results for the quarter ended September 30, 2024.

    • Net Income of $7.5 million, or $0.13 per diluted share
    • Adjusted Net Loss of $(5.5) million, or $(0.10) per diluted share
    • Adjusted EBITDA of $51.4 million
    • Record logistics financial results driven by record refining throughput
    • Liquidity increased by $112.1 million while repurchasing $21.9 million of common stock

    Par Pacific reported net income of $7.5 million, or $0.13 per diluted share, for the quarter ended September 30, 2024, compared to $171.4 million, or $2.79 per diluted share, for the same quarter in 2023. Third quarter 2024 Adjusted Net Loss was $(5.5) million, compared to Adjusted Net Income of $193.4 million in the third quarter of 2023. Third quarter 2024 Adjusted EBITDA was $51.4 million, compared to $255.7 million in the third quarter of 2023. A reconciliation of reported non-GAAP financial measures to their most directly comparable GAAP financial measures can be found in the tables accompanying this news release.

    “Our third quarter financial results reflect a challenging summer refining margin environment,” said Will Monteleone, President and Chief Executive Officer. “Despite the cyclical downturn, refining system throughput set a quarterly record, our retail and logistics segments delivered consistently strong financial results, and our Hawaii SAF project has entered the construction phase. We are focused on improving operating and capital efficiency while prioritizing safe and reliable operations.”

    Refining

    The Refining segment reported operating income of $19.0 million in the third quarter of 2024, compared to $194.8 million in the third quarter of 2023. Adjusted Gross Margin for the Refining segment was $142.2 million in the third quarter of 2024, compared to $350.6 million in the third quarter of 2023.

    Refining segment Adjusted EBITDA was $20.1 million in the third quarter of 2024, compared to $233.6 million in the third quarter of 2023.

    Hawaii
    The 3-1-2 Singapore Crack Spread was $11.00 per barrel in the third quarter of 2024, compared to $23.39 per barrel in the third quarter of 2023. Throughput in the third quarter of 2024 was 81 thousand barrels per day (Mbpd), compared to 82 Mbpd for the same quarter in 2023. Production costs were $4.58 per throughput barrel in the third quarter of 2024, compared to $4.50 per throughput barrel in the same period of 2023.

    The Hawaii refinery’s Adjusted Gross Margin was $6.10 per barrel during the third quarter of 2024, including a net price lag impact of approximately $5.1 million, or $0.68 per barrel, compared to $13.47 per barrel during the third quarter of 2023.

    Montana
    The RVO Adjusted USGC 3-2-1 Index averaged $14.14 per barrel in the third quarter of 2024, compared to $29.65 in the third quarter of 2023. The Montana refinery’s throughput in the third quarter of 2024 was 57 Mbpd, compared to 55 Mbpd for the same quarter in 2023. Production costs were $11.61 per throughput barrel, compared to $10.83 per throughput barrel in the same period of 2023.

    The Montana refinery’s Adjusted Gross Margin was $12.42 per barrel during the third quarter of 2024, compared to $26.49 per barrel during the third quarter of 2023.

    Washington
    The RVO Adjusted Pacific Northwest 3-1-1-1 Index averaged $15.48 per barrel in the third quarter of 2024, compared to $35.00 per barrel in the third quarter of 2023. The Washington refinery’s throughput was 41 Mbpd in the third quarter of 2024, compared to 41 Mbpd in the third quarter of 2023. Production costs were $3.50 per throughput barrel in the third quarter of 2024, compared to $3.77 per throughput barrel in the same period of 2023.

    The Washington refinery’s Adjusted Gross Margin was $1.76 per barrel during the third quarter of 2024, compared to $12.30 per barrel during the third quarter of 2023.

    Wyoming
    The RVO Adjusted USGC 3-2-1 Index averaged $14.14 per barrel in the third quarter of 2024, compared to $29.65 per barrel in the third quarter of 2023. The Wyoming refinery’s throughput was 19 Mbpd in the third quarter of 2024, compared to 20 Mbpd in the third quarter of 2023. Production costs were $7.00 per throughput barrel in the third quarter of 2024, compared to $6.46 per throughput barrel in the same period of 2023.

    The Wyoming refinery’s Adjusted Gross Margin was $13.65 per barrel during the third quarter of 2024, including a FIFO impact of approximately $(4.7) million, or $(2.63) per barrel, compared to $37.01 per barrel during the third quarter of 2023.

    Retail

    The Retail segment reported operating income of $18.3 million in the third quarter of 2024, compared to $13.3 million in the third quarter of 2023. Adjusted Gross Margin for the Retail segment was $42.6 million in the third quarter of 2024, compared to $38.2 million in the same quarter of 2023.

    Retail segment Adjusted EBITDA was $21.0 million in the third quarter of 2024, compared to $16.7 million in the third quarter of 2023. The Retail segment reported sales volumes of 31.2 million gallons in the third quarter of 2024, compared to 31.1 million gallons in the same quarter of 2023. Third quarter 2024 same store sales fuel volumes decreased by (1.4)% while merchandise revenue increased by 3.8%, compared to third quarter of 2023.

    Logistics

    The Logistics segment reported operating income of $26.2 million in the third quarter of 2024, compared to $20.7 million in the third quarter of 2023. Adjusted Gross Margin for the Logistics segment was $36.3 million in the third quarter of 2024, compared to $35.3 million in the same quarter of 2023.

    Logistics segment Adjusted EBITDA was $33.0 million in the third quarter of 2024, compared to $29.1 million in the third quarter of 2023.

    Liquidity

    Net cash provided by operations totaled $78.5 million for the three months ended September 30, 2024, including working capital inflows of $67.2 million and deferred turnaround expenditures of $(15.6) million. Excluding these items, net cash provided by operations was $26.9 million for the three months ended September 30, 2024. Net cash provided by operations was $269.2 million for the three months ended September 30, 2023. Net cash used in investing activities totaled $(28.3) million for the three months ended September 30, 2024, consisting primarily of capital expenditures, compared to $(5.7) million for the three months ended September 30, 2023. Net cash used in financing activities totaled $(46.8) million for the three months ended September 30, 2024, compared to $(92.9) million for the three months ended September 30, 2023.

    At September 30, 2024, Par Pacific’s cash balance totaled $183.0 million, gross term debt was $546.0 million, and total liquidity was $632.5 million. Net term debt was $363.0 million at September 30, 2024. In the third quarter of 2024, the Company repurchased $21.9 million of common stock.

    Laramie Energy

    In conjunction with Laramie Energy LLC’s (“Laramie’s”) refinancing and subsequent cash distribution to Par Pacific during the first quarter of 2023, we resumed the application of equity method accounting for our investment in Laramie effective February 21, 2023. During the third quarter of 2024, we recorded $(0.3) million of equity losses. Laramie’s total net loss was $(4.2) million in the third quarter of 2024, including unrealized losses on derivatives of $(0.4) million, compared to $(4.7) million in the third quarter of 2023. Laramie’s total Adjusted EBITDAX was $9.9 million in the third quarter of 2024, compared to $15.4 million in the third quarter of 2023.

    Conference Call Information

    A conference call is scheduled for Tuesday, November 5, 2024 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). To access the call, please dial 1-833-974-2377 inside the U.S. or 1-412-317-5782 outside of the U.S. and ask for the Par Pacific call. Please dial in at least 10 minutes early to register. The webcast may be accessed online through the Company’s website at http://www.parpacific.com on the Investors page. A telephone replay will be available until November 19, 2024 and may be accessed by calling 1-877-344-7529 inside the U.S. or 1-412-317-0088 outside the U.S. and using the conference ID 4223997.

    About Par Pacific

    Par Pacific Holdings, Inc. (NYSE: PARR), headquartered in Houston, Texas, is a growing energy company providing both renewable and conventional fuels to the western United States. Par Pacific owns and operates 219,000 bpd of combined refining capacity across four locations in Hawaii, the Pacific Northwest and the Rockies, and an extensive energy infrastructure network, including 13 million barrels of storage, and marine, rail, rack, and pipeline assets. In addition, Par Pacific operates the Hele retail brand in Hawaii and the “nomnom” convenience store chain in the Pacific Northwest. Par Pacific also owns 46% of Laramie Energy, LLC, a natural gas production company with operations and assets concentrated in Western Colorado. More information is available at www.parpacific.com.

    Forward-Looking Statements

    This news release (and oral statements regarding the subject matter of this news release, including those made on the conference call and webcast announced herein) includes certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements include, without limitation, statements about: expected market conditions; anticipated free cash flows; anticipated refinery throughput; anticipated cost savings; anticipated capital expenditures, including major maintenance costs, and their effect on our financial and operating results, including earnings per share and free cash flow; anticipated retail sales volumes and on-island sales; the anticipated financial and operational results of Laramie Energy, LLC; the amount of our discounted net cash flows and the impact of our NOL carryforwards thereon; our ability to identify, acquire, and develop energy, related retailing, and infrastructure businesses; the timing and expected results of certain development projects, as well as the impact of such investments on our product mix and sales; the anticipated synergies and other benefits of the Billings refinery and associated marketing and logistics assets (“Billings Acquisition”), including renewable growth opportunities, the anticipated financial and operating results of the Billings Acquisition and the effect on Par Pacific’s cash flows and profitability (including Adjusted EBITDA and Adjusted Net Income and Free Cash Flow per share); and other risks and uncertainties detailed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and any other documents that we file with the Securities and Exchange Commission. Additionally, forward-looking statements are subject to certain risks, trends, and uncertainties, such as changes to our financial condition and liquidity; the volatility of crude oil and refined product prices; the Russia-Ukraine war, Israel-Palestine conflict, Houthi attacks in the Red Sea, Iranian activities in the Strait of Hormuz and their potential impacts on global crude oil markets and our business; operating disruptions at our refineries resulting from unplanned maintenance events or natural disasters; environmental risks; changes in the labor market; and risks of political or regulatory changes. We cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. We do not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events, or otherwise. We further expressly disclaim any written or oral statements made by a third party regarding the subject matter of this news release.

    Contact:
    Ashimi Patel
    VP, Investor Relations & Sustainability
    (832) 916-3355
    apatel@parpacific.com

     
    Condensed Consolidated Statements of Operations
    (Unaudited)
    (in thousands, except per share data)
     
      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023       2024       2023  
    Revenues $ 2,143,933     $ 2,579,308     $ 6,142,236     $ 6,048,444  
    Operating expenses              
    Cost of revenues (excluding depreciation)   1,905,200       2,174,385       5,422,875       5,038,211  
    Operating expense (excluding depreciation)   147,049       145,183       444,389       330,146  
    Depreciation and amortization   31,879       35,311       96,679       87,887  
    General and administrative expense (excluding depreciation)   22,399       23,694       87,322       66,148  
    Equity earnings from refining and logistics investments   (3,008 )     (3,934 )     (12,846 )     (4,359 )
    Acquisition and integration costs   (23 )     4,669       68       17,213  
    Par West redevelopment and other costs   4,006       3,127       9,048       8,490  
    Loss on sale of assets, net   —       —       114       —  
    Total operating expenses   2,107,502       2,382,435       6,047,649       5,543,736  
    Operating income   36,431       196,873       94,587       504,708  
    Other income (expense)              
    Interest expense and financing costs, net   (23,402 )     (20,815 )     (61,720 )     (51,974 )
    Debt extinguishment and commitment costs   —       —       (1,418 )     (17,682 )
    Other income (loss), net   1,253       (43 )     (1,447 )     301  
    Equity earnings (losses) from Laramie Energy, LLC   (336 )     —       2,867       10,706  
    Total other expense, net   (22,485 )     (20,858 )     (61,718 )     (58,649 )
    Income before income taxes   13,946       176,015       32,869       446,059  
    Income tax expense   (6,460 )     (4,600 )     (10,496 )     (6,741 )
    Net income $ 7,486     $ 171,415     $ 22,373     $ 439,318  
    Weighted-average shares outstanding              
    Basic   55,729       60,223       57,283       60,241  
    Diluted   56,224       61,404       58,070       61,144  
                   
    Income per share              
    Basic $ 0.13     $ 2.85     $ 0.39     $ 7.29  
    Diluted $ 0.13     $ 2.79     $ 0.39     $ 7.18  
     
    Balance Sheet Data
    (Unaudited)
    (in thousands)
     
      September 30, 2024   December 31, 2023
    Balance Sheet Data      
    Cash and cash equivalents $ 182,977   $ 279,107
    Working capital (1)   542,690     190,042
    ABL Credit Facility   511,000     115,000
    Term debt (2)   546,021     550,621
    Total debt, including current portion   1,043,706     650,858
    Total stockholders’ equity   1,254,026     1,335,424

    ______________________________
    (1)   Working capital is calculated as (i) total current assets excluding cash and cash equivalents less (ii) total current liabilities excluding current portion of long-term debt. Total current assets include inventories stated at the lower of cost or net realizable value.
    (2)   Term debt includes the Term Loan Credit Agreement and other long-term debt.


    Operating Statistics

    The following table summarizes key operational data:

      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023       2024       2023  
    Total Refining Segment              
    Feedstocks throughput (Mbpd) (1)   198.4       198.2       186.3       164.6  
    Refined product sales volume (Mbpd) (1)   216.2       217.3       200.2       178.7  
                   
    Hawaii Refinery              
    Feedstocks throughput (Mbpd)   80.7       82.3       80.4       80.9  
                   
    Yield (% of total throughput)              
    Gasoline and gasoline blendstocks   25.6 %     26.5 %     26.0 %     26.7 %
    Distillates   38.3 %     42.1 %     38.1 %     40.8 %
    Fuel oils   32.0 %     26.5 %     32.0 %     28.0 %
    Other products   0.7 %     2.1 %     0.3 %     1.5 %
    Total yield   96.6 %     97.2 %     96.4 %     97.0 %
                   
    Refined product sales volume (Mbpd)   93.5       90.0       87.8       89.2  
                   
    Adjusted Gross Margin per bbl ($/throughput bbl) (2) $ 6.10     $ 13.47     $ 10.06     $ 14.74  
    Production costs per bbl ($/throughput bbl) (3)   4.58       4.50       4.66       4.46  
    D&A per bbl ($/throughput bbl)   0.25       0.65       0.47       0.68  
                   
    Montana Refinery              
    Feedstocks Throughput (Mbpd) (1)   57.2       55.4       49.2       57.1  
                   
    Yield (% of total throughput)              
    Gasoline and gasoline blendstocks   46.5 %     50.5 %     49.5 %     49.6 %
    Distillates   34.7 %     27.7 %     31.7 %     28.2 %
    Asphalt   11.0 %     14.7 %     9.3 %     14.4 %
    Other products   4.0 %     3.4 %     4.4 %     3.5 %
    Total yield   96.2 %     96.3 %     94.9 %     95.7 %
                   
    Refined product sales volume (Mbpd) (1)   60.3       63.5       53.4       62.5  
                   
    Adjusted Gross Margin per bbl ($/throughput bbl) (2) $ 12.42     $ 26.49     $ 14.15     $ 27.74  
    Production costs per bbl ($/throughput bbl) (3)   11.61       10.83       13.16       10.10  
    D&A per bbl ($/throughput bbl)   1.82       1.63       1.69       1.69  
                   
      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023       2024       2023  
    Washington Refinery              
    Feedstocks throughput (Mbpd)   41.1       41.0       37.9       40.5  
                   
    Yield (% of total throughput)              
    Gasoline and gasoline blendstocks   23.6 %     22.8 %     24.0 %     23.4 %
    Distillate   35.3 %     34.6 %     34.5 %     34.6 %
    Asphalt   17.4 %     20.1 %     18.6 %     19.4 %
    Other products   19.7 %     18.8 %     19.3 %     18.8 %
    Total yield   96.0 %     96.3 %     96.4 %     96.2 %
                   
    Refined product sales volume (Mbpd)   42.4       44.2       39.6       43.3  
                   
    Adjusted Gross Margin per bbl ($/throughput bbl) (2) $ 1.76     $ 12.30     $ 4.03     $ 9.91  
    Production costs per bbl ($/throughput bbl) (3)   3.50       3.77       4.28       4.00  
    D&A per bbl ($/throughput bbl)   1.81       1.79       2.00       1.81  
                   
    Wyoming Refinery              
    Feedstocks throughput (Mbpd)   19.4       19.5       18.8       17.7  
                   
    Yield (% of total throughput)              
    Gasoline and gasoline blendstocks   43.7 %     46.7 %     45.7 %     46.0 %
    Distillate   49.0 %     47.1 %     48.1 %     47.3 %
    Fuel oils   3.4 %     2.5 %     2.5 %     2.5 %
    Other products   2.3 %     1.7 %     2.2 %     1.7 %
    Total yield   98.4 %     98.0 %     98.5 %     97.5 %
                   
    Refined product sales volume (Mbpd)   20.0       19.6       19.4       18.3  
                   
    Adjusted Gross Margin per bbl ($/throughput bbl) (2) $ 13.65     $ 37.01     $ 14.42     $ 28.88  
    Production costs per bbl ($/throughput bbl) (3)   7.00       6.46       7.30       7.34  
    D&A per bbl ($/throughput bbl)   2.43       2.41       2.51       2.69  
                   
    Market Indices ($ per barrel)              
    3-1-2 Singapore Crack Spread (4) $ 11.00     $ 23.39     $ 14.04     $ 19.45  
    RVO Adj. Pacific Northwest 3-1-1-1 Index (5)   15.48       35.00       19.49       28.51  
    RVO Adj. USGC 3-2-1 Index (6)   14.14       29.65       17.79       25.96  
                   
    Crude Oil Prices ($ per barrel)              
    Brent $ 78.71     $ 85.92     $ 81.82     $ 81.93  
    WTI   75.27       82.22       77.61       77.28  
    ANS (7)   80.26       89.25       83.49       82.57  
    Bakken Clearbrook   74.41       83.58       76.22       79.38  
    WCS Hardisty   59.98       65.42       62.20       60.75  
    Brent M1-M3   1.31       1.27       1.22       0.74  
                   
    Retail Segment              
    Retail sales volumes (thousands of gallons)   31,232       31,137       91,186       87,710  

    ______________________________
    (1)   Feedstocks throughput and sales volumes per day for the Montana refinery for the three and nine months ended September 30, 2023 are calculated based on the 92 and 122-day periods for which we owned the Montana refinery during the three and nine months ended September 30, 2023, respectively. As such, the amounts for the total refining segment represent the sum of the Hawaii, Washington, and Wyoming refineries’ throughput or sales volumes averaged over the three and nine months ended September 30, 2023, plus the Montana refinery’s throughput or sales volumes averaged over the periods from July 1, 2023 to September 30, 2023 and June 1, 2023 to September 30, 2023, respectively. The 2024 amounts for the total refining segment represent the sum of the Hawaii, Montana, Washington, and Wyoming refineries’ throughput or sales volumes averaged over the three and nine months ended September 30, 2024.
    (2)   We calculate Adjusted Gross Margin per barrel by dividing Adjusted Gross Margin by total refining throughput. Adjusted Gross Margin for our Washington refinery is determined under the last-in, first-out (“LIFO”) inventory costing method. Adjusted Gross Margin for our other refineries is determined under the first-in, first-out (“FIFO”) inventory costing method.
    (3)   Management uses production costs per barrel to evaluate performance and compare efficiency to other companies in the industry. There are a variety of ways to calculate production costs per barrel; different companies within the industry calculate it in different ways. We calculate production costs per barrel by dividing all direct production costs, which include the costs to run the refineries including personnel costs, repair and maintenance costs, insurance, utilities, and other miscellaneous costs, by total refining throughput. Our production costs are included in Operating expense (excluding depreciation) on our condensed consolidated statements of operations, which also includes costs related to our bulk marketing operations and severance costs.
    (4)   We believe the 3-1-2 Singapore Crack Spread (or three barrels of Brent crude oil converted into one barrel of gasoline and two barrels of distillates (diesel and jet fuel)) is the most representative market indicator for our operations in Hawaii.
    (5)   We believe the RVO Adjusted Pacific Northwest 3-1-1-1 Index (or three barrels of WTI crude oil converted into one barrel of Pacific Northwest gasoline, one barrel of Pacific Northwest ULSD and one barrel of USGC VGO, less 100% of the RVO cost for gasoline and ULSD) is the most representative market indicator for our operations in Washington.
    (6)   We believe the RVO Adjusted USGC 3-2-1 Index (or three barrels of WTI crude oil converted into two barrels of USGC gasoline and one barrel of USGC ULSD, less 100% of the RVO cost) is the most representative market indicator for our operations in Montana and Wyoming.
    (7)   ANS crude price influences the Hawaii Refinery’s financial performance. Beginning in September 2024, the ANS index has been updated from a Platts marker to an Argus marker to better reflect the prompt ANS market.


    Non-GAAP Performance Measures

    Management uses certain financial measures to evaluate our operating performance that are considered non-GAAP financial measures. These measures should not be considered in isolation or as substitutes or alternatives to their most directly comparable GAAP financial measures or any other measure of financial performance or liquidity presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies since each company may define these terms differently.

    We believe Adjusted Gross Margin (as defined below) provides useful information to investors because it eliminates the gross impact of volatile commodity prices and adjusts for certain non-cash items and timing differences created by our inventory financing agreements and lower of cost and net realizable value adjustments to demonstrate the earnings potential of the business before other fixed and variable costs, which are reported separately in Operating expense (excluding depreciation) and Depreciation and amortization. Management uses Adjusted Gross Margin per barrel to evaluate operating performance and compare profitability to other companies in the industry and to industry benchmarks. We believe Adjusted Net Income (Loss) and Adjusted EBITDA (as defined below) are useful supplemental financial measures that allow investors to assess the financial performance of our assets without regard to financing methods, capital structure, or historical cost basis, the ability of our assets to generate cash to pay interest on our indebtedness, and our operating performance and return on invested capital as compared to other companies without regard to financing methods and capital structure. We believe Adjusted EBITDA by segment (as defined below) is a useful supplemental financial measure to evaluate the economic performance of our segments without regard to financing methods, capital structure, or historical cost basis.

    Beginning with financial results reported for the second quarter of 2023, Adjusted Gross Margin, Adjusted Net Income (Loss), and Adjusted EBITDA also exclude our portion of interest, taxes, and depreciation expense from our refining and logistics investments acquired on June 1, 2023, as part of the Billings Acquisition.

    Beginning with financial results reported for the fourth quarter of 2023, Adjusted Gross Margin, Adjusted Net Income (Loss), and Adjusted EBITDA excludes all hedge losses (gains) associated with our Washington ending inventory and LIFO layer increment impacts associated with our Washington inventory. In addition, we have modified our environmental obligation mark-to-market adjustment to include only the mark-to-market losses (gains) associated with our net RINs liability and net obligation associated with the Washington Climate Commitment Act (“Washington CCA”) and Clean Fuel Standard. This modification was made as part of our change in how we estimate our environmental obligation liabilities.

    Beginning with financial results reported for the fourth quarter of 2023, Adjusted Net Income (loss) excludes unrealized interest rate derivative losses (gains) and all Laramie Energy related impacts with the exception of cash distributions. We have recast Adjusted Net Income (Loss) for prior periods when reported to conform to the modified presentation.

    Beginning with financial results reported for the first quarter of 2024, Adjusted Net Income (loss) also excludes other non-operating income and expenses. This modification improves comparability between periods by excluding income and expenses resulting from non-operating activities.

    Adjusted Gross Margin

    Adjusted Gross Margin is defined as operating income (loss) excluding:

    •   operating expense (excluding depreciation);
    •   depreciation and amortization (“D&A”);
    •   Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments;
    •   impairment expense;
    •   loss (gain) on sale of assets, net;
    •   inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, hedge losses (gains) associated with our Washington ending inventory and intermediation obligation, purchase price allocation adjustments, and LIFO layer increment and decrement impacts associated with our Washington inventory);
    •   Environmental obligation mark-to-market adjustments (which represents the mark-to-market losses (gains) associated with our net RINs liability and net obligation associated with the Washington CCA and Clean Fuel Standard); and
    •   unrealized loss (gain) on derivatives.

    The following tables present a reconciliation of Adjusted Gross Margin to the most directly comparable GAAP financial measure, operating income (loss), on a historical basis, for selected segments, for the periods indicated (in thousands):

    Three months ended September 30, 2024 Refining   Logistics   Retail
    Operating income $ 19,005     $ 26,164   $ 18,274
    Operating expense (excluding depreciation)   122,054       3,334     21,661
    Depreciation and amortization   22,623       5,925     2,680
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments   658       861     —
    Inventory valuation adjustment   14,057       —     —
    Environmental obligation mark-to-market adjustments   (4,432 )     —     —
    Unrealized gain on commodity derivatives   (31,772 )     —     —
    Gain on sale of assets, net   —       —     —
    Adjusted Gross Margin (1) $ 142,193     $ 36,284   $ 42,615
    Three months ended September 30, 2023 Refining   Logistics   Retail
    Operating income $ 194,847     $ 20,736   $ 13,315
    Operating expense (excluding depreciation)   116,949       6,135     22,099
    Depreciation and amortization   24,278       7,708     2,766
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments   821       698     —
    Inventory valuation adjustment   72,823       —     —
    Environmental obligation mark-to-market adjustments   (50,153 )     —     —
    Unrealized gain on commodity derivatives   (8,995 )     —     —
    Adjusted Gross Margin (1) $ 350,570     $ 35,277   $ 38,180
    Nine Months Ended September 30, 2024 Refining   Logistics   Retail
    Operating income $ 82,811     $ 64,579   $ 45,323  
    Operating expense (excluding depreciation)   365,031       11,847     67,511  
    Depreciation and amortization   66,584       19,893     8,471  
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments   2,037       2,550     —  
    Inventory valuation adjustment   (6,419 )     —     —  
    Environmental obligation mark-to-market adjustments   (18,199 )     —     —  
    Unrealized loss on commodity derivatives   34,061       —     —  
    Loss (gain) on sale of assets, net   —       124     (10 )
    Adjusted Gross Margin (1) $ 525,906     $ 98,993   $ 121,295  
    Nine Months Ended September 30, 2023 Refining   Logistics   Retail
    Operating income $ 502,123     $ 54,035   $ 42,009
    Operating expense (excluding depreciation)   252,802       13,178     64,166
    Depreciation and amortization   59,827       17,801     8,577
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments   821       905     —
    Inventory valuation adjustment   126,799       —     —
    Environmental obligation mark-to-market adjustments   (174,111 )     —     —
    Unrealized gain on commodity derivatives   (487 )     —     —
    Adjusted Gross Margin (1) $ 767,774     $ 85,919   $ 114,752

    ______________________________
    (1)   For the three and nine months ended September 30, 2024 and 2023, there was no impairment expense in Operating income. For the three months ended September 30, 2024 and the three and nine months ended September 30, 2023, there was no (gain) loss on sale of assets recorded in Operating income.


    Adjusted Net Income (Loss) and Adjusted EBITDA

    Adjusted Net Income (Loss) is defined as Net income (loss) excluding:

    •   inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, hedge losses (gains) associated with our Washington ending inventory and intermediation obligation, purchase price allocation adjustments, and LIFO layer increment and decrement impacts associated with our Washington inventory);
    •   Environmental obligation mark-to-market adjustments (which represents the mark-to-market losses (gains) associated with our net RINs liability and net obligation associated with the Washington CCA and Clean Fuel Standard);
    •   unrealized (gain) loss on derivatives;
    •   acquisition and integration costs;
    •   redevelopment and other costs related to Par West;
    •   debt extinguishment and commitment costs;
    •   increase in (release of) tax valuation allowance and other deferred tax items;
    •   changes in the value of contingent consideration and common stock warrants;
    •   severance costs and other non-operating expense (income);
    •   (gain) loss on sale of assets;
    •   impairment expense;
    •   impairment expense associated with our investment in Laramie Energy; and
    •   Par’s share of equity (earnings) losses from Laramie Energy, LLC, excluding cash distributions.

    Adjusted EBITDA is defined as Adjusted Net Income (Loss) excluding:

    •   D&A;
    •   interest expense and financing costs, net, excluding unrealized interest rate derivative loss (gain);
    •   cash distributions from Laramie Energy, LLC to Par;
    •   Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments; and
    •   income tax expense (benefit) excluding the increase in (release of) tax valuation allowance.

    The following table presents a reconciliation of Adjusted Net Income (Loss) and Adjusted EBITDA to the most directly comparable GAAP financial measure, net income (loss), on a historical basis for the periods indicated (in thousands):        

      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023       2024       2023  
    Net income $ 7,486     $ 171,415     $ 22,373     $ 439,318  
    Inventory valuation adjustment   14,057       72,823       (6,419 )     126,799  
    Environmental obligation mark-to-market adjustments   (4,432 )     (50,153 )     (18,199 )     (174,111 )
    Unrealized loss (gain) on derivatives   (31,196 )     (9,116 )     33,756       (1,151 )
    Acquisition and integration costs   (23 )     4,669       68       17,213  
    Par West redevelopment and other costs   4,006       3,127       9,048       8,490  
    Debt extinguishment and commitment costs   —       —       1,418       17,682  
    Changes in valuation allowance and other deferred tax items (1)   5,707       —       9,238       —  
    Severance costs and other non-operating expense (2)   (1,490 )     615       14,648       1,685  
    Loss on sale of assets, net   —       —       114       —  
    Equity (earnings) losses from Laramie Energy, LLC, excluding cash distributions   336       —       (1,382 )     —  
    Adjusted Net Income (Loss) (3)   (5,549 )     193,380       64,663       435,925  
    Depreciation and amortization   31,879       35,311       96,679       87,887  
    Interest expense and financing costs, net, excluding unrealized interest rate derivative loss (gain)   22,826       20,936       62,025       52,638  
    Laramie Energy, LLC cash distributions to Par   —       —       (1,485 )     (10,706 )
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments   1,519       1,519       4,587       1,726  
    Income tax expense (benefit)   753       4,600       1,258       6,741  
    Adjusted EBITDA (3) $ 51,428     $ 255,746     $ 227,727     $ 574,211  

    ______________________________
    (1)   For the three and nine months ended September 30, 2024, we recognized a non-cash deferred tax expense of $5.7 million and $9.2 million, respectively, related to deferred state and federal tax liabilities. This tax benefit is included in Income tax expense (benefit) on our consolidated statements of operations. For the three and nine months ended September 30, 2023, we did not have any adjustments to our valuation allowance and other deferred tax items.
    (2)   For the nine months ended September 30, 2024, we incurred $13.1 million of stock-based compensation expenses associated with accelerated vesting of equity awards and modification of vested equity awards related to our CEO transition and $2.3 million for an estimated legal settlement unrelated to current operating activities.
    (3)   For the three and nine months ended September 30, 2024 and 2023, there was no change in value of contingent consideration, change in value of common stock warrants, impairment expense, impairments associated with our investment in Laramie Energy, or our share of Laramie Energy’s asset impairment losses in excess of our basis difference. Please read the Non-GAAP Performance Measures discussion above for information regarding changes to the components of Adjusted Net Income (Loss) and Adjusted EBITDA made during the reporting periods.

    The following table sets forth the computation of basic and diluted Adjusted Net Income (Loss) per share (in thousands, except per share amounts):

      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023     2024     2023
    Adjusted Net Income (Loss) $ (5,549 )   $ 193,380   $ 64,663   $ 435,925
    Plus: effect of convertible securities   —       —     —     —
    Numerator for diluted income (loss) per common share $ (5,549 )   $ 193,380   $ 64,663   $ 435,925
                   
    Basic weighted-average common stock shares outstanding   55,729       60,223     57,283     60,241
    Add dilutive effects of common stock equivalents (1)   —       1,181     787     903
    Diluted weighted-average common stock shares outstanding   55,729       61,404     58,070     61,144
                   
    Basic Adjusted Net Income (Loss) per common share $ (0.10 )   $ 3.21   $ 1.13   $ 7.24
    Diluted Adjusted Net Income (Loss) per common share $ (0.10 )   $ 3.15   $ 1.11   $ 7.13

    ______________________________
    (1)   Entities with a net loss from continuing operations are prohibited from including potential common shares in the computation of diluted per share amounts. We have utilized the basic shares outstanding to calculate both basic and diluted Adjusted Net Loss per common share for the three months ended September 30, 2024.


    Adjusted EBITDA by Segment

    Adjusted EBITDA by segment is defined as Operating income (loss) excluding:

    •   D&A;
    •   inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, hedge losses (gains) associated with our Washington ending inventory and intermediation obligation, purchase price allocation adjustments, and LIFO layer increment and decrement impacts associated with our Washington inventory);
    •   Environmental obligation mark-to-market adjustments (which represents the mark-to-market losses (gains) associated with our net RINs liability and net obligation associated with the Washington CCA and Clean Fuel Standard);
    •   unrealized (gain) loss on derivatives;
    •   acquisition and integration costs;
    •   redevelopment and other costs related to Par West;
    •   severance costs and other non-operating expense (income);
    •   (gain) loss on sale of assets;
    •   impairment expense; and
    •   Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments.

    Adjusted EBITDA by segment also includes Gain on curtailment of pension obligation and Other income (loss), net, which are presented below operating income (loss) on our condensed consolidated statements of operations.

    The following table presents a reconciliation of Adjusted EBITDA by segment to the most directly comparable GAAP financial measure, operating income (loss) by segment, on a historical basis, for selected segments, for the periods indicated (in thousands):

      Three Months Ended September 30, 2024
      Refining   Logistics   Retail   Corporate and Other
    Operating income (loss) by segment $ 19,005     $ 26,164   $ 18,274   $ (27,012 )
    Depreciation and amortization   22,623       5,925     2,680     651  
    Inventory valuation adjustment   14,057       —     —     —  
    Environmental obligation mark-to-market adjustments   (4,432 )     —     —     —  
    Unrealized gain on commodity derivatives   (31,772 )     —     —     —  
    Acquisition and integration costs   —       —     —     (23 )
    Par West redevelopment and other costs   —       —     —     4,006  
    Severance costs and other non-operating expense   —       —     —     (1,490 )
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments   658       861     —     —  
    Other income, net   —       —     —     1,253  
    Adjusted EBITDA (1) $ 20,139     $ 32,950   $ 20,954   $ (22,615 )
      Three Months Ended September 30, 2023
      Refining   Logistics   Retail   Corporate and Other
    Operating income (loss) by segment $ 194,847     $ 20,736   $ 13,315   $ (32,025 )
    Depreciation and amortization   24,278       7,708     2,766     559  
    Inventory valuation adjustment   72,823       —     —     —  
    Environmental obligation mark-to-market adjustments   (50,153 )     —     —     —  
    Unrealized gain on commodity derivatives   (8,995 )     —     —     —  
    Acquisition and integration costs   —       —     —     4,669  
    Par West redevelopment and other costs   —       —     —     3,127  
    Severance costs and other non-operating expenses   —       —     580     35  
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments   821       698     —     —  
    Other loss, net   —       —     —     (43 )
    Adjusted EBITDA (1) $ 233,621     $ 29,142   $ 16,661   $ (23,678 )
      Nine Months Ended September 30, 2024
      Refining   Logistics   Retail   Corporate and Other
    Operating income (loss) by segment $ 82,811     $ 64,579   $ 45,323     $ (98,126 )
    Depreciation and amortization   66,584       19,893     8,471       1,731  
    Inventory valuation adjustment   (6,419 )     —     —       —  
    Environmental obligation mark-to-market adjustments   (18,199 )     —     —       —  
    Unrealized loss on commodity derivatives   34,061       —     —       —  
    Acquisition and integration costs   —       —     —       68  
    Severance costs and other non-operating expenses   642       —     —       14,006  
    Par West redevelopment and other costs   —       —     —       9,048  
    Loss (gain) on sale of assets, net   —       124     (10 )     —  
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments   2,037       2,550     —       —  
    Other loss, net   —       —     —       (1,447 )
    Adjusted EBITDA (1) $ 161,517     $ 87,146   $ 53,784     $ (74,720 )
      Nine Months Ended September 30, 2023
      Refining   Logistics   Retail   Corporate and Other
    Operating income (loss) by segment $ 502,123     $ 54,035   $ 42,009   $ (93,459 )
    Depreciation and amortization   59,827       17,801     8,577     1,682  
    Inventory valuation adjustment   126,799       —     —     —  
    Environmental obligation mark-to-market adjustments   (174,111 )     —     —     —  
    Unrealized gain on commodity derivatives   (487 )     —     —     —  
    Acquisition and integration costs   —       —     —     17,213  
    Severance costs and other non-operating expenses   —       —     580     1,105  
    Par West redevelopment and other costs   —       —     —     8,490  
    Par’s portion of interest, taxes, and depreciation expense from refining and logistics investments   821       905     —     —  
    Other income, net   —       —     —     301  
    Adjusted EBITDA (1) $ 514,972     $ 72,741   $ 51,166   $ (64,668 )

    ________________________________________
    (1)   For the three and nine months ended September 30, 2024 and 2023, there was no change in value of contingent consideration, change in value of common stock warrants, impairment expense, or impairments associated with our investment in Laramie Energy. For three months ended September 30, 2024 and for the three and nine months ended September 30, 2023, there was no loss (gain) on sale of assets.


    Laramie Energy Adjusted EBITDAX

    Adjusted EBITDAX is defined as net income (loss) excluding commodity derivative loss (gain), loss (gain) on settled derivative instruments, interest expense, gain on extinguishment of debt, non-cash preferred dividend, depreciation, depletion, amortization, and accretion, exploration and geological and geographical expense, bonus accrual, equity-based compensation expense, loss (gain) on disposal of assets, phantom units, and expired acreage (non-cash). We believe Adjusted EBITDAX is a useful supplemental financial measure to evaluate the economic and operational performance of exploration and production companies such as Laramie Energy.

    The following table presents a reconciliation of Laramie Energy’s Adjusted EBITDAX to the most directly comparable GAAP financial measure, net income (loss) for the periods indicated (in thousands):

      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023       2024       2023  
    Net income (loss) $ (4,239 )   $ (3,479 )   $ (4,296 )   $ 54,048  
    Commodity derivative (income) loss   (5,234 )     1,889       (15,821 )     (32,951 )
    Gain (loss) on settled derivative instruments   5,584       2,775       14,220       (1,433 )
    Interest expense and loan fees   5,745       5,783       15,783       14,742  
    Gain on extinguishment of debt   —       (3,454 )     —       6,644  
    Non-cash preferred dividend   —       —       —       2,910  
    Depreciation, depletion, amortization, and accretion   8,128       9,248       24,683       22,465  
    Phantom units   (217 )     2,425       (503 )     3,171  
    Loss (gain) on sale of assets, net   (8 )     239       (8 )     307  
    Expired acreage (non-cash)   157       —       722       112  
    Total Adjusted EBITDAX (1) $ 9,916     $ 15,426     $ 34,780     $ 70,015  

    ______________________________
    (1)   For the three and nine months ended September 30, 2024 and 2023, there was no exploration and geological and geographical expense, bonus accrual, or equity-based compensation expense.

    The MIL Network –

  • MIL-OSI Europe: Press release – Hearing of Commissioner-designate Apostolos Tzitzikostas

    Source: European Parliament 3

    On Monday evening, the Transport and Tourism Committee questioned Apostolos Tzitzikostas, Greek candidate for the sustainable transport and tourism portfolio.

    The committee chair and political group coordinators will meet without delay to assess the performance and qualification of the Commissioner-designate.

    Competitive transport, which respects environment

    In his introductory speech, Mr Tzitzikostas stressed that if confirmed as Commissioner for sustainable transport and tourism he will focus on enhancing the competitiveness of the EU’s transport sector, sticking to the agreed timetable for its green and digital transitions, completing the Trans-European Transport (TEN-T) network by the established deadlines, enhancing transport safety, and ensuring the enforcement of current EU rules. To push for transport decarbonisation solutions, such as the production of sustainable fuels and the development of charging infrastructure, he committed to presenting a sustainable transport investment plan in 2025, while on competitiveness he pledged to develop an EU industrial action plan for automotive sector.

    On the modal shift, the Commissioner-designate said he would present a plan to connect EU capitals and large cities by high-speed rail, including night trains. In addition, Mr Tzitzikostas committed to presenting a single digital booking and ticketing option for rail in the first year of his mandate.

    On tourism, he said the EU must maintain its number one destination raking in the world. He committed to a strategy for sustainable tourism, to support the industry and preserve the well-being of local communities.

    European solutions, working conditions, modal shift

    Several MEPs asked the Commissioner-designate to support the EU’s transport and tourism sectors and look for solutions at the EU level. Cutting red tape, less reporting requirements and a pause on new proposals without undertaking an impact assessment were some of the demands presented by MEPs to Mr Tzitzikostas.

    MEPs also asked questions on working conditions in the transport sector, especially in aviation and maritime, and secured a commitment from Mr Tzitzikostas for a comprehensive evaluation of the situation in this area within his first 100 days.

    Members questioned Mr Tzitzikostas on the review of aviation service and air passenger right rules, the modal shift from road to rail, concrete proposals to encourage high-speed and night trains, the development of clean corporate fleet as well as additional measures to ensure transport safety.

    Mr Tzitzikostas was also quizzed on specific measures to rescue the EU’s automotive industry, on financial support needed to complete the TEN-T network as well as plans to ensure maritime security and the disruption of Russia’s shadow vessels fleet.

    You can watch the video recording of the full hearing here.

    Press point

    At the end of the hearing, the Chair of the Transport and Tourism Committee, Ms Elissavet Vozemberg, held a press point outside the meeting room: watch it here.

    Next steps

    Based on the committee recommendations, the Conference of Presidents (EP President Metsola and political group chairs) is set to conduct the final evaluation and declare the hearings closed on 21 November. Once the Conference of Presidents declares all hearings closed, the evaluation letters will be published.

    The election by MEPs of the full college of Commissioners (by a majority of the votes cast, by roll-call) is currently scheduled to take place during the 25-28 November plenary session in Strasbourg.

    MIL OSI Europe News –

  • MIL-OSI Security: NATO Secretary General in Berlin: “your support saves lives on the battlefield every day”

    Source: NATO

    During his first official visit to Berlin on Monday (4 November), NATO Secretary General Mark Rutte thanked Chancellor Olaf Scholz for Germany’s significant contributions to the Alliance and its ongoing support for Ukraine.

    The Secretary General praised Chancellor Scholz’s “personal leadership and commitment” to investing more in defence. “Germany now invests 2 percent of its GDP in defence for the first time in three decades. This is important for Germany and for NATO,” he said.
     
    The Secretary General highlighted Germany’s contributions to NATO, including its presence in the eastern part of the Alliance where it is stationing a full brigade in Lithuania. Mr Rutte welcomed the opening of Germany’s new naval headquarters in Rostock, which will help to protect key trade and supply routes, and critical infrastructure in the Baltic Sea.
     
    Mr Rutte also thanked Germany for being “the biggest European contributor of military aid” to Ukraine, underlining that Germany’s support “saves lives on the battlefield every day.” He also warned of more frequent Russian hybrid attacks against NATO Allies, saying “the shifting frontline in this war is no longer solely within Ukraine.”  Russia is interfering directly in Allies’ democracies, sabotaging industry and committing violence. “All of this to weaken us and to sow divisions, but NATO stands ready to deter and defend against these threats,” he said.
     
    On Monday, the Secretary General also met with German President Frank-Walter Steinmeier, Minister of Defence Boris Pistorius, and Chairman of the Defence Committee of the German Bundestag Marcus Faber.

    MIL Security OSI –

  • MIL-OSI USA: ICYMI—Hagerty Joins Mornings with Maria to Discuss Failed Economic and Foreign Policies of Biden-Harris Administration

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty
    NASHVILLE, TN—United States Senator Bill Hagerty (R-TN), a member of the Senate Banking and Foreign Relations Committees, today joined Mornings with Maria on Fox Business to discuss the failed economic and foreign policies of the Biden-Harris Administration and their sharp contrast with the successful policies of the Trump Administration. 

    *Click the photo above or here to watch*
    Partial TranscriptHagerty on the failed economic policies of the Biden-Harris Administration: “Well, the economic policies of this Administration under Kamala Harris have been an absolute disaster for America. If you look at it, 72 percent of American people think that this country is on the wrong track, and the number one issue, Maria, is the fact that real wages have gone down. Inflation has destroyed and devastated families here in America, and I think the only thing keeping the market up right now is the anticipation, and frankly, the sheer hope that President Trump gets reelected on Tuesday.”
    Hagerty on the failed foreign policies of the Biden-Harris Administration: “Well, if you look at the foreign policy of this Administration, it’s absolutely pathetic. Under President Trump, we had no wars. Under [Joe] Biden and [Kamala] Harris, this has been a complete disaster. It goes back to the failed withdrawal from Afghanistan where Kamala Harris was the quote, ‘last voice in the room.’ That was an absolute disgrace and a disaster that embarrassed our nation like nothing in our lifetimes, Maria. And that invited and precipitated, I think, and emboldened our adversaries around the world. You look at what happened with Iran: the day that this Administration came into office, they stopped enforcing sanctions against Iran. I worked very closely with President Trump and in his Administration to impose maximum sanctions on Iran, to put maximum pressures on them, to get our allies to stop buying oil from Iran. It worked. What we did was we made Iran basically broke. We stopped the funding of Hamas, stopped the funding of Hezbollah, the Houthis had no funds. We saw peace break out in the Middle East. President Trump was able to move our embassy to Jerusalem. He was able to take out Soleimani and Al-Baghdadi. He even did the Abraham Accords, which was the foundation, I think, of peace and prosperity in the Middle East. Iran could do nothing about it. As soon as [Joe] Biden comes into office, as soon as [Kamala] Harris comes into office, they start allowing the funds to flow, and we have terrible wars outbreaking in the Middle East.”
    Hagerty on Kamala Harris running conflicting advertisements on Israel stance: “Well, she wants to [have it both ways]. It’s a complete lack of integrity. And if you talk about having it both ways, we have seen her flip-flop on every major policy. It’s like an avatar, Maria. The media have helped support this. Again, the partisan media, not yourself, have helped support creation of a candidate that’s nowhere close to where Kamala Harris from San Francisco, the most liberal Senator in the United States Senate, has been for her entire political career. Now they’re trying to create something entirely different, entirely false. They send one message into Michigan. They’ll send a completely different message into Pennsylvania to try to appeal to Jewish voters. I think the American public can see right through this.”
    Hagerty on Iran changing its nuclear policy to produce nuclear weapons: “Well, I remind you, we wouldn’t be in a position for Iran to respond at all were President Trump in office because we brought Iran to its knees. That’s got to happen again. If Kamala Harris gets into office, I think Iran’s going to have free range to do whatever they want to do, because they’re going to continue to allow Iran to bring billions of dollars in. They’re going to continue to allow them to pump [oil]. They’re going to continue to allow Iran to sell weapons to Russia. Iran has had free reign under Kamala Harris, and at the same time, you see her bringing in people like Liz Cheney, others that all want to see war breakout in the Middle East. I think what we’ve got to do is look directly at what the past has shown us. We’ve got a track record with President Trump That has delivered peace and prosperity. We’ve got a track record with Kamala Harris that has delivered nothing but agony and war in the Middle East and around the world.”
    Hagerty on the top priority of a second Trump Administration: “Well, for me, Maria, our foreign policy is derived directly from the strength of our economy. We have the most amazing, the most prosperous economy in the world. Access to that economy is absolutely critical. President Trump understands that. Let’s get our economy moving again. That’s what the people of America need to see. We need to see security at our southern border. We have a national security risk like we’ve never seen before. No one’s better than you in reporting on this. But then we’ve got to turn around and deal with strength and credibility with our adversaries. No one in the world believes that Kamala Harris can deal with Vladimir Putin, can deal with Xi Jinping, can deal with the Ayatollah. She has no credibility whatsoever. President Trump has and will.”

    MIL OSI USA News –

  • MIL-OSI USA: Virginia Company and Two Senior Executives Charged with Illegally Exporting Millions of Dollars of U.S. Technology to Russia

    Source: US State Government of Utah

    Eleview International Inc., Oleg Nayandin, 54, of Fairfax, Virginia, and Vitaliy Borisenko, 39, of Vienna, Virginia, made their initial appearance today in the Eastern District of Virginia pursuant to a now unsealed complaint charging them with conspiracy to violate the Export Control Reform Act.

    “As alleged, the defendants — a Virginia company and two of its senior executives — conspired through three evasion schemes to circumvent the export restrictions imposed on Russia following its invasion of Ukraine,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “U.S. companies are responsible for complying with laws that protect our national security. The National Security Division is committed to holding accountable individuals and companies who violate these laws and place financial profit over our collective security.”

    “This company allegedly used not one, not two, but three different schemes to illegally transship sensitive American technology to Russia,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Department of Commerce, Bureau of Industry and Security (BIS). “Today’s charges, against both the company and two top executives, are a prime example of our work to bring to justice both the companies and the corporate executives alleged to have circumvented our rules in search of a fatter bottom line.”

    “We must not allow critical systems and technologies to be transferred to anyone who may use them against America and our global partners,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Guarding against these transfers is imperative, and violations of the laws that protect our national security will be met with ardent prosecution.”

    “Export control evasion schemes put the American public at risk by concealing the true recipient,” said Special Agent in Charge Derek W. Gordon of Homeland Security Investigations Washington, D.C. “In this instance, HSI, working in partnership with our colleagues at Department of Commerce’s Office of Export Enforcement, uncovered this scheme was supporting a sanctioned country, thus threatening our national security and the safety of other countries. HSI is dedicated to preventing technology with military applications from falling into the wrong hands.”

    According to the complaint, between approximately March 2022 and June 2023, Eleview International Inc. (Eleview), allegedly a Virginia-based company that operated a freight consolidation and forwarding business; Nayandin, the owner, president, and CEO of Eleview; and Borisenko, who oversaw the day-to-day operations of Eleview’s freight forwarding business, conspired to illegally export goods and technology from the United States to Russia by transshipping them through three countries bordering or near Russia.

    As alleged, the defendants operated an e-commerce website that allowed Russian customers to order U.S. goods and technology directly from U.S. retailers, who shipped the items to Eleview’s warehouse in Chantilly, Virginia. The defendants then consolidated the packages before shipping them to the Russian customers, often using other freight forwarders as intermediaries, in exchange for a fee. After the Department of Commerce imposed stricter export controls in response to Russia’s further invasion of Ukraine in February 2022, the defendants began shipping items to purported end users in Turkey, Finland, and Kazakhstan, knowing that the items were ultimately destined for end users in Russia. To facilitate these illegal exports, the defendants made numerous false statements to the Department of Commerce and other freight forwarders about the end users and ultimate consignees of the items in these shipments.

    As part of the conspiracy, the defendants engaged in three export-control evasion schemes, each specific to a different intermediary country. In the Turkey scheme, the defendants exported about $1.48 million worth of telecommunications equipment to a false end user in Turkey, knowing that the equipment was intended for a Russian telecommunications company that supplied the Russian government, including the Federal Security Service, or FSB. The telecommunications equipment that the defendants illegally exported as part of the Turkey scheme had military applications, including use by the Russian military to create and expand communication networks in its war effort against Ukraine.

    In the Finland scheme, the defendants exported about $3.45 million worth of goods purchased to Russia through Eleview’s e-commerce website to a false end user in Finland that neither purchased nor sold goods. Before consolidating the packages into larger pallets for shipment to Finland, the defendants affixed to each package a label with a Russian postal service tracking number so that the Russian postal service could easily ship the package to the customer in Russia. The goods that the defendants illegally exported as part of the Finland scheme included “high priority” items that the Department of Commerce has identified as particularly significant to Russian weaponry, including the same type of electronic component found on Russian “suicide” drones used to destroy Ukrainian tanks and jets.

    In the Kazakhstan scheme, the defendants exported about $1.47 million worth of goods to Russia through an entity in Kazakhstan that advertises its ability to deliver goods to Russia. The goods that the defendants illegally exported as part of the Kazakhstan scheme included controlled dual-use items.

    If convicted, Nayandin and Borisenko each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The BIS and Homeland Security Investigations are investigating the case.

    Assistant U.S. Attorneys Gavin R. Tisdale and Amanda St. Cyr for the Eastern District of Virginia and Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with past assistance provided by then-First Assistant U.S. Attorney Raj Parekh.

    The case is being coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Justice and Commerce Departments designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.

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

    MIL OSI USA News –

  • MIL-OSI USA: Pentagon Press Secretary Maj. Gen. Pat Ryder Holds Press Briefing

    Source: United States Department of Defense

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  All right. Good afternoon, everyone. Looks like there’s something wrong with this side of the room here since everybody’s on this side of the room, but OK. All right. Well, just a few things at the top and I’ll be glad to take your questions. So as many of you saw in the statement that we released on Friday, Secretary Austin ordered the deployment of additional ballistic missile defense destroyers, fighter squadrons, and tanker aircraft and several US Air Force B-52 long range strike bombers to the US Central Command area of responsibility.

    These forces will begin to arrive in the coming months as the USS Abraham Lincoln Carrier Strike Group prepares to depart, some of which have already begun to flow into theater as highlighted by the arrival of the B-52 bombers over the weekend. These deployments are in keeping with our commitments to the protection of US citizens and forces in the Middle East, the defense of Israel, and de-escalation through deterrence and diplomacy.

    These movements build on the recent decision to deploy the Terminal High Altitude Area Defense Missile Defense system to Israel, as well as DOD’s sustained Amphibious Ready Group / Marine Expeditionary Unit posture in the Eastern Mediterranean and demonstrate the flexible nature of US global defense posture and US capability to deploy worldwide on short notice to meet evolving national security threats.

    Secretary Austin continues to make clear that should Iran, its partners or its proxies, use this moment to target American personnel or interests in the region, the United States will take every measure necessary to defend our people.

    Shifting gears, tomorrow is Election Day and DOD stands prepared to support state and local authorities as required. Of note, Secretary Austin approved a request last week from the District of Columbia for D.C. National Guard troops to support the D.C. Fire and Emergency Medical Services from November 5 through 13. For those of you who have covered the defense beat for a while, you know that it is routine practice for the DOD to authorize the D.C. National Guard to support or augment security for large scale events in the district and activated Guardsmen will remain under the command and control of the D.C. National Guard.

    Similarly, around the nation, approximately 60 National Guardsmen from six states have been activated by their state governors and state active-duty status for election support with roughly another 600 Guardsmen from 17 states on standby if needed. Again, as you know, the National Guard has ongoing and long-standing relationships with local, state and federal agency partners and has assisted with national special security events like Election Day and Inauguration Day for many years. For more information about individual state responses and activations, I would direct you to the individual states.

    And finally, the Department is proud to celebrate National Native American Heritage Month. This November, we honor the contributions and sacrifices of native peoples who have served our country. The contributions of these fellow Americans have been pivotal in some of the most critical moments in our nation’s defense.

    As just one of many examples, the US Marine Corps Navajo code talkers using their native language to develop an unbreakable communication code during World War II, played a decisive role in the Battle of Iwo Jima. Their example of duty and honor continues to inspire current and future generations of Americans to serve with the same resolve and pride.

    And with that, I’ll be glad to take your questions. Start with AP, Lita.

    Q:  Thank you, Pat. Two things, one on Ukraine, North Korea. Can you say whether any North Korean troops have been observed in combat or over the line in Ukraine? And I believe State has said that the number is about 10,000. Is that what you believe are in the Kursk region right now? And then I have a—

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Sure, a couple updates. So we believe that there are now at least 10,000 DPRK forces in the Kursk Oblast. Recognizing that as we continue to assess DPRK presence on the ground, those numbers could go up slightly, in terms of the total number of DPRK troops in Russia. We’ve seen the press reports about alleged combat ops. We’re looking into those, but at this point cannot corroborate those reports. But as you heard Secretary Austin say last week, should these troops engage in combat support operations against Ukraine, they would become legitimate military targets.

    Q:  So have you seen any additional North Korean forces heading for eastern Russia? Do you see another wave of influx?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  I don’t know that I would call it a wave, but as we look at those numbers, we think that the total number of DPRK forces in Russia total could be closer to around 11,000 to 12,000, with about 10,000, at least 10,000 right now in the Kursk Oblast. OK. And you said you had a follow-up?

    Q:  Just on Iran, have you seen any movement indications or any suggestions that Iran has been taking steps to do any type of retaliatory action against Israel?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Yeah. So in terms of whether or not Iran does anything, I’m not going to speculate, nor will I discuss intelligence assessments from here. I think we as the US government have been very clear that we believe Iran should not respond to Israel’s retaliation if they choose to do so. We of course will support Israel and their defense.

    Natasha?

    Q:  Thanks, Pat. So senior Ukrainian officials have said that they are observing some very small, limited numbers of North Korean troops, things like engineers, for example, in the occupied territories in eastern Ukraine. Are you not prepared to corroborate that at this point?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Yeah. Again, we’re looking into all of that, but at this point, just can’t corroborate those reports.

    Q:  OK. And also, we’re about a week away from the deadline that was set by Secretary Austin and Secretary Blinken with regard to Gaza. The State Department just said that they have not yet seen enough being done in northern Gaza in terms of humanitarian aid. Does the Secretary agree with that?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Well, I think as you highlight, at the State Department on Thursday, when Secretary Blinken and Secretary Austin addressed this, both of them highlighted that we believe more needs to be done in terms of getting humanitarian assistance into Gaza and to the Palestinian people. I’d point you to Secretary Blinken’s remarks in terms of sort of the rundown of where things stand on that front.

    But even in his call last week on Thursday with Minister Gallant, Secretary Austin continues to reinforce how important it is to ensure that humanitarian assistance can flow and flow faster into Gaza. And so that will continue to be something that we will remain focused on. Constantin?

    Q:  Thanks, Pat. Just one follow up on the National Guard deployments. You said Guardsmen have been put on active orders from six states. Can you say what those six states are?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  I don’t have that list here in front of me. Let me just double check, Constantin, make sure. I don’t have that list here in front of me, but we can certainly get that for you.

    Q:  OK. And then sort of on the same vein, is the Department of Defense providing any cyber resources or capabilities for election monitoring or sort of anti-misinformation efforts?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Well, as you know, US Cyber Command does play a role in terms of supporting our elections. I’d refer you to them to go into details and there are National Guard elements that do support US Cyber Command, but they can provide you more details on that.

    Q:  Thank you.

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Thank you. Noah?

    Q:  A couple clean up questions on North Korea, the 11,000 to 12,000 number that you said, that leaves a bandwidth between those in Kursk and those still in eastern Russia. Do you expect those remaining troops to head toward Kursk in the coming days?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Yeah. I mean, again we fully expect, just based on what we’re seeing, that these forces will go to the Kursk region, that they will provide some kind of capability. All indications are that they will provide some type of combat or combat support capability. Again, remains to be seen exactly how they will be employed. I’d point you to the comments that were made on Thursday in terms of things like UAV ops, artillery, infantry. So again, should they be employed in combat, they will become legitimate military targets and we would fully expect that the Ukrainians would do what they need to do to defend themselves and their personnel.

    Q:  And do all of those in Kursk that are North Korean troops have Russian uniforms and equipment at this point as you understand?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  My understanding is that all of these forces are being issued Russian uniforms and Russian equipment.

    Q:  One more follow up on the Middle East. The deployments that were announced on Friday, are these based on new assessments of the threat that Iran may pose within a retaliation toward Israel or possibly American troops? Or is this simply about trying to reinforce the US force posture there given that the carrier will depart in the coming weeks?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Well, I think as we highlighted in our statement and as I highlighted at the top here, we are deploying these forces to the region to preserve our ability to protect our forces, support the defense of Israel and also act as a deterrent capability. And so out of due diligence in ensuring that we continue to be prepared to meet our commitments, deploying and rotating these forces in as we look ahead down the road and prepare for the departure of the Abe (sic).

    OK. Mike.

    Q:  Yeah, these North Korean units, do you know if the soldiers are filling blanks spots in the Russian line or will they be deploying and operating as their own particular units?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  So a couple of things. It’s TBD (sic). We’ll see exactly how these forces are integrated into Russian operations and how they’re committed to the battlefield, assuming that they are. In terms of replacement for Russian forces, I’d point you back again to what Secretary Austin highlighted in terms of the significant casualty rates that we’re seeing among Russian forces.

    So insomuch as that these are potentially forces that are coming in to replace the massive numbers of losses that Russia is experiencing, I think that’s probably a fair assessment and I certainly would not want to be a North Korean soldier.

    Q:  Right. But my point is, I mean, are they going to be inserted into already existing Russian units as just spare body, spare body, spare body, or will there be North Korean battalion fighting here and North Korean battalion here, or do you not know at this point?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Yeah, we don’t know at this point, and we’ll see. We anticipate in the relatively near future we will know more as we see how Russia and North Korea opt to employ these forces. OK. Charlie?

    Q:  Thank you, General. Adding to that, do you anticipate or are you even tracking whether or not this may just be the first of many North Koreans that will be headed to Russia? That’s my first question. My second question is regarding Iran’s threats of retaliation, they said that it will come from Iran or Iranian-backed militias, which we’ve already seen in Iraq.

    First of all, have you seen an uptick in the tempo of drone attacks from Iranian-backed militias there against Israel and or against US forces? Does it look orchestrated and how much of it is a concern that bigger stuff might be headed there like ballistic missiles?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Yeah, on your first question, that is definitely something that we’re keeping a close eye on. I don’t have anything right now to pass along in terms of whether or not DPRK will or won’t send additional forces. And I’m not going to speculate on whether they do, but definitely something we’re keeping a close eye on. As far as the threats that have been communicated in the press and in social media about the potential for Iran to launch attacks from Iraqi territory, what I would say is that over the last year, we’ve seen Iran backed militia groups sporadically launch missiles and one-way attack UAVs from Syria and Iraq towards Israel.

    The vast majority of those have been intercepted or fail in flight. And while we’ve recently observed an increase in one way attack UAVs assessed to be against Israel, at this stage, we would not characterize these as large numbers. And so we continue to remain vigilant, and we remain ready to defend US forces and Israel from these threats.

    Q:  And are you tracking any movement of ballistic missiles in and out of that region?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  I don’t have anything to pass along in terms of intelligence assessments from this podium, but again, we stand ready to support the defense of Israel and would encourage Iran not to launch any type of retaliatory attack.

    Luis?

    Q:  We’ve been talking about the 10,000 troops in Kursk, but can you give us some context please? This 10,000, how much will they augment the Russian presence there? Will they be a significant portion of the presence there in that particular oblast? Are they a very small component? Just something so that we can understand what adding 10,000 North Koreans to that battle space means.

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Sure. I think to do that, you have to go back in time a little bit. And if you recall, when Ukraine conducted their offensive into Russian territory into the Kursk Oblast and they continue to hold Russian territory in Kursk and they have made the decision to hold that territory at risk and continue to defend it. And so what we saw in the early days of that Ukrainian offensive was a very muddled Russian response in terms of trying to push the Ukrainians back. And for the most part, they have not been able to push the Ukrainians very far. They’ve taken some incremental amounts of territory back but nothing that we would categorize as significant. So placing these additional 10,000 to 11,000 to 12,000 forces in Kursk is definitely something from a combat capability standpoint that could be significant, but a lot of that will depend on how those forces are employed, how they’re integrated into the Russian command and control.

    And of course, if the Ukrainians—if the past is any indicator of the future, the Ukrainians are battle hardened veterans who know how to fight. And so every indication that they will continue to defend Ukrainian sovereignty and continued to defend Kursk, the territory that they’ve taken. And so we’ll see how that plays out.

    Q:  Numerically and size-wise, numerically, is it, the infusion of these 10,000 additional troops at a minimum, is that really significant to the force that you said have been making incremental gains?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Well, I think, again, if you want to talk numbers and again, numbers can be misleading because look what Ukraine did when Russia invaded Ukraine in 2022 and how a small number of forces to date have been able to largely defeat the strategic objectives of what was and is the largest army in Europe.

    So again, a lot of that just depends on how Russia opts to employ those forces, how well they’re integrated, what kind of combat experience they have. And so we’ll see. In the meantime, we continue to consult very closely with our allies and partners. And we also continue to ensure that we’re working with Ukraine and some 50 nations to rush security assistance to Ukraine, to defend Ukrainian sovereignty both here and elsewhere in the battlefield.

    Let me go to the phone real quick here. Let’s go to Dan Lamothe, Washington Post.

    Q:  Hey, General. Thanks for your time today. There’s often a perception in the Pentagon and across Washington that aircraft carriers deter Iran and the lack of one in the region, emboldens them. Two questions, I guess, related. Does Secretary Austin see these newly announced deployments on Friday to the region as sufficient to deter Iran with a carrier group potentially coming?

    And can you put this decision in context of how you’re looking at broader threats in the Pacific and other regions? Thanks.

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Yeah. Thanks, Dan. So when it comes to us force deployments around the world, while there’s understandable focus on particular types of equipment and vessels to include aircraft carriers, at the end of the day, it really comes down to our people and the capabilities that we provide. And so the capabilities that we’re deploying into the region will provide a significant amount of capability on par with what we’ve been doing in the Middle East region since the October 7th attacks over a year ago.

    And so certainly as we look at global force management and our national security commitments around the world, that’s always taking into account in terms of how we can meet those commitments and ensure we have what we need to protect our people. And in this case, also support the defense of Israel.

    Let me go to Jeff Schogol, Task and Purpose.

    Q:  Yeah. Thank you. Two separate questions. Now that the election is upon us, is the Defense Department satisfied that all overseas troops and their spouses have the access they need to federal absentee ballots? Also, how should one describe the coalition between North Korea and Russia? Is it an alliance or is it more friends with benefits?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Thanks, Jeff. Let me take your question on voting first. So first of all, we continue to recommend all voters register and request an absentee ballot. Those deadlines vary depending on states. And as you know, we do have a robust education program in terms of getting the word out on how service members and their families can obtain their absentee ballots no matter where you are, whether it’s overseas or whether it’s stationed outside of your state.

    Just speaking from personal experience as a Florida resident, I can tell you, I received multiple emails over many weeks, reminding me to register and to request my ballot. It arrived early. I had plenty of time to submit that. If a service member has requested a ballot and it hasn’t arrived, they can use the federal write-in absentee ballot immediately at FVAP.gov/FWAB, and this acts as a back-up ballot.

    And again, that information is provided on multiple occasions through multiple mechanisms. So again, encourage folks to get out and vote and make sure that their voice is heard. As far as the relationship between Russia and North Korea goes, we definitely continue to monitor this.

    The level of cooperation between the two remains concerning, but in many ways transactional. And so again, this is something we’ll keep a close eye on, and I’ll just leave it there. OK. Yes, sir.

    Q:  Thank you, General. Last week as you said that Secretary Austin all times (sic) he urged for a ceasefire in Lebanon as quickly as possible. So do you think we need more time, that Israel needs more time to stop this war to achieve their goals? How long do you believe that will take, this war? Is it, as you said before, it was a limited operations, but now almost a month starting this war, so do they need more weeks and months or maybe we’re going to see like what’s happened in Gaza like over a year for this war? Thank you.

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Yeah, I won’t speak for Israel. But Secretary Austin and others have been very clear that we believe that a ceasefire and the resolution of tensions in the region through diplomatic means are required as soon as possible. And so as you’ve seen with the State Department and the US envoy, Mr. Hochstein, going to the region, this continues to be something that is a top priority for the US, working with partners in the region to include Israel. And we’ll continue to communicate that to our Israeli counterparts.

    As you saw from our readout, this was also something that came up in the phone call between Secretary Austin and Minister Gallant last week. Thank you.

    OK. Let me go to Heather from USNI.

    Q:  Thank you so much. I was hoping you could give a couple more details about the plans with Abe (sic) and then whether or not it’s planning to leave within the next couple of weeks, the next week. And then Harry S. Truman is on its way over to the Middle East, Mediterranean area, but it’s making stops along its way.

    Is this an indication that we don’t feel that there needs to be an aircraft carrier in the region very quickly? What does this indicate in terms of how much the Houthi threat remains in the Middle East?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Yeah. Thanks, Heather. As far as deployment timelines go, as a matter of policy and operational security, we’re not going to talk specifics on when the Abraham Lincoln strike group will depart the US Central Command area of responsibility. As for the Truman, as you highlight, continues to operate in the North Atlantic.

    Again, I’m not going to get into its particular movements or forecast those. And in terms of the message it sends, it just demonstrates the flexibility and versatility of the US military and our ability to meet our national security commitments and provide robust capability around the world and flex as needed.

    And again highlighted by the fact that you have B-52 bombers that are now in the AOR, the CENTCOM AOR, that are multi-versatile and can provide an incredible amount of capability in support of those efforts. So again, it’s about capability and it’s about our people and we’re confident that we have the right force posture to support our national security requirements.

    Ashley?

    Q:  Just a quick follow up on the announcement on troops at the Middle East, are there any plans to send additional troops into Israel or to man assets there?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  I don’t have anything to announce at this point. Yeah. Thanks.

    Sir?

    Q:  Thank you. General. Do you anticipate any direct Israeli attack on Iranian paramilitary groups in Iraq as they continuously launch UAVs into Israel? I mean, did you send any message to these groups in Iraq?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  As I’m sure you can appreciate, I won’t speak for Israeli operations on what they may or may not do. I can tell you that what we’ve seen in the past is them—as I highlighted earlier, intercept threats that are heading towards Israel, but in terms of potential future military action by Israel, that’s a question for them to address. OK.

    Q:  Might that not be something that CENTCOM would engage in, the potential attack or if you want to call it a preemptive strike?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Well, again, without getting into hypotheticals or speaking to Israeli operations, US Central Command and the Department of Defense regularly have conversations with Israel as it relates to the defense of Israel and how we can work together to support that effort. And as I highlighted earlier, if we do see threats emanating from other regions, we’re prepared to support the defense of Israel and have, as we’ve demonstrated in the past.

    Howard Altman, War Zone.

    Q:  Hey. Thanks, Pat. A couple things I wanted to drill down a little bit on the North Koreans in Kursk. Images appeared online that shows a North Korean troop killed in that, in Kursk. And then my other question is, has there been any change in the US warship presence in the Red Sea to protect shipping commercial shipping?

    And if so, how has that changed? Any change in operation—I forget what the name is, the operation protecting ships in the Red Sea?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Thanks, Howard. On your first question, again, I’ve seen those press and social media reports. Again, we’re looking into them, but I cannot corroborate those reports at this time. As it relates to force posture in the Red Sea and elsewhere, I’m not going to get into specifics in terms of which ships are there and what their movement plans are, other than to say, yes, we do maintain robust capability to support Operation Prosperity Guardian and support our efforts to support freedom of navigation and the safety of mariners in the region. OK.

    Do one more. Yes, ma’am?

    Q:  Just a quick follow-up, Pat, on Luis’ questions. What’s the US estimate on the number of Russian forces in the Kursk region?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  I don’t have a number to provide to you.

    Q:  Ballpark?

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  I don’t even have a ballpark number other than to say, broadly speaking, what we saw in the past was essentially a conglomeration of various units on the Russian side to include territorial defense forces attempting to push the Ukrainians back.

    Q:  I think I was just trying to get a sense of kind of perspective, right? Is it now almost largely North Korean troops their equal number of both? I mean, I think that’s kind of what we’re trying to figure out.

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER:  Sure. And I just don’t have a number to pass along here. I mean, keeping in mind again that what we’re talking about here is Russian territory writ large, right? So I mean this is inside Russian interior lines and theoretically, Russia could have made the decision a long time ago to move large number of Russian forces to address this threat.

    But it demonstrates a couple of things. One, the fact that Russia has not made recovery of its sovereign territory a priority, and number two, the fact that Russia finds itself in a situation where they now have to hire out to get additional forces to deal with this issue, which as Secretary Austin has highlighted, is an indication of the dire straits they’re in when it comes to personnel.

    So thank you very much, everybody. Appreciate it.

    MIL OSI USA News –

  • MIL-OSI Canada: Prime Minister Justin Trudeau meets with United Nations High Commissioner for Refugees Filippo Grandi

    Source: Government of Canada – Prime Minister

    Today, Prime Minister Justin Trudeau met with the United Nations High Commissioner for Refugees, Filippo Grandi.

    Prime Minister Trudeau and High Commissioner Grandi discussed the unprecedented nature of the current global refugee crisis, which is fuelled by more intense and longer lasting conflicts and the growing effects of climate change. The Prime Minister recognized the valuable role that the High Commissioner and his office (UNHCR) play in providing protection and humanitarian assistance to refugees and other forcibly displaced people.

    Prime Minister Trudeau expressed his concern over the growing humanitarian impacts arising from the situation in the Middle East and acknowledged the important role that the UNHCR is playing in responding to the needs of those forcibly displaced in both Lebanon and Syria. The two leaders also discussed the human dimension of Russia’s war of aggression against Ukraine, including its impacts on internally displaced people and refugees. Additionally, Prime Minister Trudeau expressed his concern over the humanitarian impacts of the crisis in Sudan and underscored Canada’s support for those affected by it.

    The Prime Minister strongly underscored Canada’s commitment to the UNHCR and its support for the organization’s work to make a positive difference in the lives of refugees. Prime Minister Trudeau thanked the High Commissioner for the UNHCR’s dedication to protecting the most vulnerable in difficult circumstances.

    The two leaders reaffirmed the strong partnership between Canada and the UNHCR, and they agreed to stay in close contact.

    Associated Links 

    MIL OSI Canada News –

  • MIL-OSI Russia: The team of the Faculty of Information Technologies of NSU won the final of KubanCTF 2024

    Translation. Region: Russian Federation –

    Source: Novosibirsk State University – Novosibirsk State University – From October 24 to 25, the International Conference on Information Security “Kuban CSC 2024” and the competition in practical information security “Kuban CTF 2024” were held in Sirius on the territory of the Imeretinsky resort. Team Faculty of Information Technology NSU won the final of the practical information security competition. A total of 16 teams from all over Russia participated in the final.

    The team from NSU included:

    Roman Lebedev, senior lecturer at the Department of Computer Systems, FIT NSU; Vladimir Sitnov, postgraduate student, assistant at the Department of Computer Systems, FIT NSU; Vladislav Nikiforov, master’s student at FIT NSU.

    The Olympiad was held in two stages – a semi-final and a final. The stages were traditional Jeopardy (quiz) and Attack-Defense (CTF competition format, in which teams receive identical servers with a set of vulnerable services, to which the jury periodically sends private information – flags) competitions.

    — There are not many CTF competitions in Russia that are accessible not only to students, so we decided to take part. We were also attracted by the location of the event. In addition, it was an opportunity for us to get together as a team. The main thing we managed to learn was that the Kuban CTF 2024 final had a very good level of execution. We can recommend these competitions to our student teams in the future. Personally, I am pleased with the performance. Not only did we win, but we also had a good time, — Roman Lebedev shared his emotions.

    Such competitions are primarily good because they give participants the opportunity to test their knowledge and apply it in practice.

    Congratulations to the winners!

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

    MIL OSI Russia News –

  • MIL-OSI: International Petroleum Corporation Announces Third Quarter 2024 Financial and Operational Results

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Nov. 05, 2024 (GLOBE NEWSWIRE) — International Petroleum Corporation (IPC or the Corporation) (TSX, Nasdaq Stockholm: IPCO) today released its financial and operational results and related management’s discussion and analysis (MD&A) for the three and nine months ended September 30, 2024.

    William Lundin, IPC’s President and Chief Executive Officer, comments: “We are pleased to announce another positive quarter of operational performance. IPC achieved average net daily production during the third quarter of 45,000 barrels of oil equivalent per day (boepd), following planned maintenance shutdowns during the quarter. We also continue to purchase IPC common shares under the normal course issuer bid (NCIB). We have now almost completed the 2023/2024 NCIB, reducing the outstanding number of common shares by over 6% since the beginning of December 2023. We intend to seek Toronto Stock Exchange approval to renew the NCIB in December 2024. We are also pleased to report on the progress achieved at the Blackrod Phase 1 development in Canada, which remains on schedule and on budget.”

    Q3 2024 Business Highlights

    • Average net production of approximately 45,000 boepd for Q3 2024, in line with guidance (49% heavy crude oil, 17% light and medium crude oil and 34% natural gas).(1)
    • Successful completion of planned maintenance shutdowns at Onion Lake Thermal (OLT) in Canada and the Bertam field in Malaysia.
    • Drilling activity at the Suffield area in Canada continued with four wells drilled in Q3 2024 and completed by October 2024.
    • Development activities on Phase 1 of the Blackrod project continue to progress on schedule and on budget, with forecast first oil in late 2026.
    • 2.6 million IPC common shares purchased and cancelled during Q3 2024 under IPC’s normal course issuer bid (NCIB), on track to complete the 2023/2024 NCIB during November 2024.
    • IPC plans to seek Toronto Stock Exchange approval for the renewal of the NCIB in December 2024.

    Q3 2024 Financial Highlights

    • Operating costs per boe of USD 17.9 for Q3 2024, below guidance.(3)
    • Operating cash flow (OCF) and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of MUSD 73 and MUSD 68 respectively in line with guidance for Q3 2024.(3)
    • Capital and decommissioning expenditures of MUSD 102 for Q3 2024, in line with guidance.
    • Free cash flow (FCF) for Q3 2024 amounted to MUSD -38 (MUSD 44 pre-Blackrod Phase 1 project funding).(3)
    • Gross cash of MUSD 299 and net debt of MUSD 157 as at September 30, 2024.(3)
    • Net result of MUSD 23 for Q3 2024.

    Reserves and Resources

    • Total 2P reserves as at December 31, 2023 of 468 MMboe, with a reserves life index (RLI) of 27 years.(1)(2)
    • Contingent resources (best estimate, unrisked) as at December 31, 2023 of 1,145 MMboe.(1)(2)

    2024 Annual Guidance

    • Full year 2024 average net production guidance range maintained at 46,000 to 48,000 boepd.(1)
    • Full year 2024 operating costs guidance revised to below USD 18 per boe.(3)
    • Full year 2024 OCF guidance estimated at between MUSD 335 and 342, assuming Brent USD 70 to 80 per barrel for the remainder of 2024.(3)
    • Full year 2024 capital and decommissioning expenditures guidance forecast maintained at MUSD 437.
    • Full year 2024 FCF guidance estimated at between MUSD -140 and -133 (between MUSD 222 and 229 pre-Blackrod Phase 1 project funding), assuming Brent USD 70 to 80 per barrel for the remainder of 2024.(3)
      Three months ended
    September 30    		   Nine months ended
    September 30
    USD Thousands 2024   2023     2024   2023  
    Revenue 173,200   257,366     598,659   655,446  
    Gross profit 39,505   93,429     167,397   210,559  
    Net result 22,875   71,681     101,804   143,269  
    Operating cash flow (3) 72,589   119,142     263,831   279,414  
    Free cash flow (3) (38,269 ) 34,703     (74,021 ) 67,379  
    EBITDA (3) 68,313   123,054     259,304   284,334  
    Net cash/(debt) (3) (157,228 ) 83,097     (157,228 ) 83,097  
                       

    Oil prices softened in the third quarter with Brent prices averaging USD 80 per barrel compared with USD 85 per barrel in the second quarter. Volatility during the quarter was high with Brent prices ranging from USD 89 per barrel in July to USD 70 per barrel in September. Notwithstanding the volatility in prices, the crude market was in a deficit through the third quarter, aided by the proactive supply management by the OPEC+ group. The continued conflicts in the Middle East and Ukraine led to increased oil prices, though these were partially offset by concerns over global oil demand growth, in particular consumer and industrial demand in China. Despite some of these negative factors, the physical market remains tight with OECD crude stock levels below the five-year average, with oil demand expected to be at an all-time high in 2024 and continue to grow in 2025. Approximately 50% of IPC’s forecast 2024 oil production is hedged at USD 80 per barrel WTI or USD 85 per barrel Dated Brent through to the end of 2024.

    The third quarter 2024 WTI to Western Canadian Select (WCS) price differentials averaged just under USD 14 per barrel, in line with the second quarter and approximately USD 5 per barrel lower than the first quarter differential average of USD 19 per barrel. The Trans Mountain expansion (TMX) pipeline continues to support tighter differentials with the Western Canadian Sedimentary Basin (WCSB) now having excess spare pipeline capacity for the first time in more than a decade. Crude exports from the new TMX pipeline are flowing off the coast of British Columbia, with deliveries to the US West Coast and Asia creating new end destinations for Canadian heavy oil. Around 70% of our forecast 2024 Canadian WCS production volumes are hedged at a WTI/WCS differential of USD 15 per barrel.

    Natural gas prices in Canada remained suppressed in the third quarter, with AECO pricing averaging CAD 0.67 per Mcf during the period, compared to CAD 1.17 per Mcf average for the second quarter. This has led to some Canadian natural gas producers curtailing production as western Canada gas storage levels continue to sit above the five-year range. IPC implemented hedges during the third quarter for approximately 14,500 Mcf per day at CAD 1.57 per Mcf from August to year end 2024.

    Third Quarter 2024 Highlights and Full Year 2024 Guidance

    IPC delivered average daily production rates of 45,000 boepd for the third quarter. The average daily production for the first nine months of 2024 was 47,400 boepd and the full year Capital Markets Day (CMD) production guidance of 46,000 to 48,000 boepd is maintained. During the third quarter, planned maintenance shutdowns at the Onion Lake Thermal (OLT) asset in Canada and at the Bertam field in Malaysia were successfully completed. High uptimes were achieved across all major producing assets in our portfolio during the quarter and the business benefited from the oil wells drilled within our Southern Alberta assets and the new wells brought on stream from sustaining Pad L at the OLT asset.(1)

    Operating costs in the third quarter of 2024 were below forecast at USD 17.9 per boe. The lower costs were largely driven by lower energy input costs within our Canadian asset base. Full year 2024 operating costs guidance is revised to less than USD 18 per boe, below the CMD guidance range of USD 18 to 19 per boe.(3)

    Operating cash flow (OCF) for the third quarter of 2024 was USD 73 million in line with forecast. Full year 2024 OCF guidance is revised to USD 335 to 342 million (assuming Brent USD 70 to 80 per barrel for the remainder of 2024).(3)

    Capital and decommissioning expenditure for the third quarter was in line with plan at USD 102 million. Our full year 2024 capital and decommissioning expenditure guidance is unchanged at USD 437 million.

    Free cash flow (FCF) was USD -38 million (or USD 44 million pre-Blackrod Phase 1 development funding) during the third quarter of 2024. Full year 2024 FCF guidance is revised to USD -140 to -133 million (or USD 222 to 229 million pre-Blackrod Phase 1 development funding) assuming Brent USD 70 to 80 per barrel for the remainder of 2024.(3)

    Net debt was increased during the third quarter of 2024 by approximately USD 69 million to USD 157 million.(3) This is due to the growth capital expenditure at the Blackrod Phase 1 project and continued funding of the normal course issuer bid (NCIB) share repurchase program. The gross cash position as at September 30, 2024 was USD 299 million. In the third quarter, IPC enhanced its financing position by entering into a letter of credit facility in Canada to cover all of its existing operational letters of credit, giving full availability under IPC’s undrawn CAD 180 million Revolving Credit Facility.

    With a robust balance sheet and strong cashflow generation from the producing assets, IPC is strongly positioned to deliver on our three strategic pillars of organic growth, shareholder returns and pursue value-adding M&A.

    Blackrod Phase 1 Project

    The Blackrod asset is 100% owned by IPC and hosts the largest booked reserves and contingent resources within the IPC portfolio. After more than a decade of pilot operations, subsurface delineation and commercial engineering studies, IPC sanctioned the Phase 1 development in the first quarter of 2023. The Phase 1 development targets 218 MMboe of 2P reserves, with a multi-year forecast capital expenditure of USD 850 million to first oil planned in late 2026. The Phase 1 development is planned for plateau production of 30,000 bopd which is expected by early 2028.(1)(2)

    2024 marks a peak investment year at the Blackrod Phase 1 project for IPC, with USD 362 million planned to be spent in the year. Project progress has advanced according to plan, with approximately USD 245 million spent through the first nine months of 2024. All major third-party contracts have been executed, including but not limited to, the engineering, procurement and construction (EPC) agreements for the central processing facility (CPF) and well pad facilities, midstream agreements for the input fuel gas, diluent and oil blend pipelines, and drilling rig and stakeholder agreements. All major long lead items have been procured and pre-operations onboarding continues as the asset undergoes rapid change from a pilot steam assisted gravity drainage (SAGD) operation to a commercial SAGD operation. IPC’s core operational philosophy is to responsibly develop and commission projects with the staff that are going to manage and operate the asset to ensure the seamless transition from development to operations.

    As at the end of the third quarter of 2024, over half of the Blackrod Phase 1 development capital had been spent since the project sanction in early 2023. All major work streams are progressing as planned and the focus continues to be on executing the detailed sequencing of events as facility modules are safely delivered and installed at site. The total Phase 1 project guidance of USD 850 million capital expenditure to first oil in late 2026 is unchanged. IPC intends to fund the remaining Blackrod Phase 1 development costs with forecast cash flow generated by its operations and cash on hand.

    Stakeholder Returns: Normal Course Issuer Bid

    Under the current 2023/2024 NCIB, IPC has the ability to repurchase up to approximately 8.3 million common shares over the period of December 5, 2023 to December 4, 2024. IPC repurchased and cancelled approximately 7.5 million common shares up to the end of September 2024. The average price of common shares purchased under the 2023/2024 NCIB was SEK 132 / CAD 17 per share. IPC expects to complete the 2023/2024 NCIB during November 2024, resulting in the cancellation of 6.5% of the total number of common shares outstanding as at the beginning of December 2023.

    As at September 30, 2024, IPC had a total of 120,751,038 common shares issued and outstanding and IPC held 30,000 common shares in treasury. As at October 31, 2024, IPC had a total of 120,244,638 common shares issued and outstanding and IPC held 44,400 common shares in treasury.

    The IPC Board of Directors has approved, subject to acceptance by the Toronto Stock Exchange (TSX), the renewal of IPC’s NCIB for a further twelve months from December 2024 to December 2025. We expect that the 2024/2025 NCIB will permit IPC to purchase on the TSX and/or Nasdaq Stockholm, and cancel, up to a further approximately 7.5 million common shares, representing approximately 6.2% of the total outstanding common shares (or 10% of IPC’s “public float” under applicable TSX rules) following completion of the current 2023/2024 NCIB. IPC continues to believe that reducing the number of common shares outstanding while in parallel investing in material production growth at the Blackrod project will prove to be a winning formula for our stakeholders.

    Environmental, Social and Governance (ESG) Performance

    As part of IPC’s commitment to operational excellence and responsible development, its objective is to reduce risk and eliminate hazards to prevent occurrence of accidents, ill health, and environmental damage, as these are essential to the success of our business operations. During the third quarter of 2024, IPC recorded no material safety or environmental incidents.

    As previously announced, IPC targets a reduction of our net GHG emissions intensity by the end of 2025 to 50% of IPC’s 2019 baseline and IPC remains on track to achieve this reduction. During the first quarter of 2024, IPC announced the commitment to remain at end 2025 levels of 20 kg CO2/boe through to the end of 2028.(4)

    Notes:

    (1) See “Supplemental Information regarding Product Types” in “Reserves and Resources Advisory” below. See also the annual information form for the year ended December 31, 2023 (AIF) available on IPC’s website at www.international-petroleum.com and under IPC’s profile on SEDAR+ at www.sedarplus.ca.
    (2) See “Reserves and Resources Advisory“ below. Further information with respect to IPC’s reserves, contingent resources and estimates of future net revenue, including assumptions relating to the calculation of NPV, are described in the AIF.
    (3) Non-IFRS measures, see “Non-IFRS Measures” below and in the MD&A.
    (4) Emissions intensity is the ratio between oil and gas production and the associated carbon emissions, and net emissions intensity reflects gross emissions less operational emission reductions and carbon offsets.

    International Petroleum Corp. (IPC) is an international oil and gas exploration and production company with a high quality portfolio of assets located in Canada, Malaysia and France, providing a solid foundation for organic and inorganic growth. IPC is a member of the Lundin Group of Companies. IPC is incorporated in Canada and IPC’s shares are listed on the Toronto Stock Exchange (TSX) and the Nasdaq Stockholm exchange under the symbol “IPCO”.

    For further information, please contact:

    Rebecca Gordon
    SVP Corporate Planning and Investor Relations
    rebecca.gordon@international-petroleum.com
    Tel: +41 22 595 10 50    		       Or       Robert Eriksson
    Media Manager
    reriksson@rive6.ch
    Tel: +46 701 11 26 15
             

    This information is information that International Petroleum Corporation is required to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07:30 CET on November 5, 2024. The Corporation’s unaudited interim condensed consolidated financial statements (Financial Statements) and management’s discussion and analysis (MD&A) for the three and nine months ended September 30, 2024 have been filed on SEDAR+ (www.sedarplus.ca) and are also available on the Corporation’s website (www.international-petroleum.com).

    Forward-Looking Statements
    This press release contains statements and information which constitute “forward-looking statements” or “forward-looking information” (within the meaning of applicable securities legislation). Such statements and information (together, “forward-looking statements”) relate to future events, including the Corporation’s future performance, business prospects or opportunities. Actual results may differ materially from those expressed or implied by forward-looking statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Forward-looking statements speak only as of the date of this press release, unless otherwise indicated. IPC does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.

    All statements other than statements of historical fact may be forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, forecasts, guidance, budgets, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “forecast”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “budget” and similar expressions) are not statements of historical fact and may be “forward-looking statements”.

    Forward-looking statements include, but are not limited to, statements with respect to:

    • 2024 production ranges (including total daily average production), production composition, cash flows, operating costs and capital and decommissioning expenditure estimates;
    • Estimates of future production, cash flows, operating costs and capital expenditures that are based on IPC’s current business plans and assumptions regarding the business environment, which are subject to change;
    • IPC’s financial and operational flexibility to continue to react to recent events and navigate the Corporation through periods of volatile commodity prices;
    • The ability to fully fund future expenditures from cash flows and current borrowing capacity;
    • IPC’s intention and ability to continue to implement strategies to build long-term shareholder value;
    • The ability of IPC’s portfolio of assets to provide a solid foundation for organic and inorganic growth;
    • The continued facility uptime and reservoir performance in IPC’s areas of operation;
    • Development of the Blackrod project in Canada, including estimates of resource volumes, future production, timing, regulatory approvals, third party commercial arrangements, breakeven prices and net present value;
    • Current and future production performance, operations and development potential of the Onion Lake Thermal, Suffield, Brooks, Ferguson and Mooney operations, including the timing and success of future oil and gas drilling and optimization programs;
    • The potential improvement in the Canadian oil egress situation and IPC’s ability to benefit from any such improvements;
    • The ability to maintain current and forecast production in France and Malaysia;
    • The intention and ability of IPC to acquire further common shares under the NCIB, including the timing of any such purchases;
    • The ability of IPC to renew the NCIB and the number of common shares which may be purchased under a renewed NCIB;
    • The return of value to IPC’s shareholders as a result of the NCIB;
    • The ability of IPC to implement further shareholder distributions in addition to the NCIB;
    • IPC’s ability to implement its greenhouse gas (GHG) emissions intensity and climate strategies and to achieve its net GHG emissions intensity reduction targets;
    • IPC’s ability to implement projects to reduce net emissions intensity, including potential carbon capture and storage;
    • Estimates of reserves and contingent resources;
    • The ability to generate free cash flows and use that cash to repay debt;
    • IPC’s continued access to its existing credit facilities, including current financial headroom, on terms acceptable to the Corporation;
    • IPC’s ability to maintain operations, production and business in light of any future pandemics and the restrictions and disruptions related thereto, including risks related to production delays and interruptions, changes in laws and regulations and reliance on third-party operators and infrastructure;
    • IPC’s ability to identify and complete future acquisitions;
    • Expectations regarding the oil and gas industry in Canada, Malaysia and France, including assumptions regarding future royalty rates, regulatory approvals, legislative changes, and ongoing projects and their expected completion; and
    • Future drilling and other exploration and development activities.

    Statements relating to “reserves” and “contingent resources” are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and that the reserves and resources can be profitably produced in the future. Ultimate recovery of reserves or resources is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

    Although IPC believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because IPC can give no assurances that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks.

    These include, but are not limited to general global economic, market and business conditions; the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to reserves, resources, production, revenues, costs and expenses; health, safety and environmental risks; commodity price fluctuations; interest rate and exchange rate fluctuations; marketing and transportation; loss of markets; environmental and climate-related risks; competition; innovation and cybersecurity risks related to our systems, including our costs of addressing or mitigating such risks; the ability to attract, engage and retain skilled employees; incorrect assessment of the value of acquisitions; failure to complete or realize the anticipated benefits of acquisitions or dispositions; the ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals; geopolitical conflicts, including the war between Ukraine and Russia and the conflict in the Middle East, and their potential impact on, among other things, global market conditions; and changes in legislation, including but not limited to tax laws, royalties, environmental and abandonment regulations.

    Additional information on these and other factors that could affect IPC, or its operations or financial results, are included in the MD&A (See “Risk Factors”, “Cautionary Statement Regarding Forward-Looking Information” and “Reserves and Resources Advisory” therein), the Corporation’s Annual Information Form (AIF) for the year ended December 31, 2023, (See “Cautionary Statement Regarding Forward-Looking Information”, “Reserves and Resources Advisory” and “Risk Factors”) and other reports on file with applicable securities regulatory authorities, including previous financial reports, management’s discussion and analysis and material change reports, which may be accessed through the SEDAR+ website (www.sedarplus.ca) or IPC’s website (www.international-petroleum.com).

    Management of IPC approved the production, operating costs, operating cash flow, capital and decommissioning expenditures and free cash flow guidance and estimates contained herein as of the date of this press release. The purpose of these guidance and estimates is to assist readers in understanding IPC’s expected and targeted financial results, and this information may not be appropriate for other purposes.

    Non-IFRS Measures
    References are made in this press release to “operating cash flow” (OCF), “free cash flow” (FCF), “Earnings Before Interest, Tax, Depreciation and Amortization” (EBITDA), “operating costs” and “net debt”/”net cash”, which are not generally accepted accounting measures under International Financial Reporting Standards (IFRS) and do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with similar measures presented by other public companies. Non-IFRS measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.

    The definition of each non-IFRS measure is presented in IPC’s MD&A (See “Non-IFRS Measures” therein).

    Operating cash flow
    The following table sets out how operating cash flow is calculated from figures shown in the Financial Statements:

      Three months ended September 30   Nine months ended September 30
    USD Thousands 2024   2023     2024   2023  
    Revenue 173,200   257,366     598,659   655,446  
    Production costs (100,984 ) (130,765 )   (328,110 ) (364,889 )
    Current tax 373   (7,459 )   (6,718 ) (16,045 )
    Operating cash flow 72,589   119,142     263,831   274,512  
                       

    The operating cash flow for the nine months ended September 30, 2023 including the operating cash flow contribution of the Brooks assets acquisition from the effective date of January 1, 2023 to the completion date of March 3, 2023 amounted to USD 279,414 thousand.

    Free cash flow
    The following table sets out how free cash flow is calculated from figures shown in the Financial Statements:

      Three months ended September 30   Nine months ended September 30
    USD Thousands 2024   2023     2024   2023  
    Operating cash flow – see above 72,589   119,142     263,831   274,512  
    Capital expenditures (99,100 ) (76,844 )   (308,457 ) (183,904 )
    Abandonment and farm-in expenditures1 (2,575 ) (2,755 )   (4,938 ) (7,683 )
    General, administration and depreciation expenses before depreciation2 (3,903 ) (3,547 )   (11,245 ) (11,124 )
    Cash financial items3 (5,280 ) (1,293 )   (13,212 ) (3,593 )
    Free cash flow (38,269 ) 34,703     (74,021 ) 68,208  

    1 See note 16 to the Financial Statements
    2 Depreciation is not specifically disclosed in the Financial Statements
    3 See notes 4 and 5 to the Financial Statements

    The free cash flow for the nine months ended September 30, 2023 including the free cash flow contribution of the Brooks assets acquisition from the effective date of January 1, 2023 to the completion date of March 3, 2023 amounted to USD 67,379 thousand.

    EBITDA
    The following table sets out the reconciliation from net result from the consolidated statement of operations to EBITDA:

      Three months ended September 30   Nine months ended September 30
    USD Thousands 2024   2023     2024   2023  
    Net result 22,875   71,681     101,804   143,269  
    Net financial items 4,124   4,257     23,942   16,227  
    Income tax 8,257   25,451     29,473   50,671  
    Depletion and decommissioning costs 30,491   31,687     96,305   71,488  
    Depreciation of other tangible fixed assets 2,023   1,509     6,503   6,503  
    Exploration and business development costs 197   (24 )   344   2,007  
    Depreciation included in general, administration and depreciation expenses 1 346   405     933   1,180  
    Sale of Assets –   (11,912 )   –   (11,912 )
    EBITDA 68,313   123,054     259,304   279,433  

    1 Item is not shown in the Financial Statements

    The EBITDA for the nine months ended September 30, 2023 including the EBITDA contribution of the Brooks assets acquisition from the effective date of January 1, 2023 to the completion date of March 3, 2023 amounted to USD 284,334 thousand.

    Operating costs
    The following table sets out how operating costs is calculated:

      Three months ended September 30   Nine months ended September 30
    USD Thousands 2024   2023     2024   2023  
    Production costs 100,984   130,765     328,110   364,889  
    Cost of blending (29,818 ) (39,836 )   (116,699 ) (128,523 )
    Change in inventory position 2,755   (8,067 )   3,160   2,228  
    Operating costs 73,921   82,862     214,571   238,594  

    The operating costs for the nine months ended September 30, 2023 including the operating costs contribution of the Brooks assets acquisition from the effective date of January 1, 2023 to the completion date of March 3, 2023 amounted to USD 245,395 thousand.

    Net cash/(debt)
    The following table sets out how net cash/(debt) is calculated:

    USD Thousands September 30, 2024   December 31, 2023  
    Bank loans (6,431 ) (9,031 )
    Bonds1 (450,000 ) (450,000 )
    Cash and cash equivalents 299,203   517,074  
    Net cash/(debt) (157,228 ) 58,043  

    1 The bond amount represents the redeemable value at maturity (February 2027).

    Reserves and Resources Advisory
    This press release contains references to estimates of gross and net reserves and resources attributed to the Corporation’s oil and gas assets. For additional information with respect to such reserves and resources, refer to “Reserves and Resources Advisory” in the MD&A. Light, medium and heavy crude oil reserves/resources disclosed in this press release include solution gas and other by-products. Also see “Supplemental Information regarding Product Types” below.

    Reserve estimates, contingent resource estimates and estimates of future net revenue in respect of IPC’s oil and gas assets in Canada are effective as of December 31, 2023, and are included in the reports prepared by Sproule Associates Limited (Sproule), an independent qualified reserves evaluator, in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook (the COGE Handbook) and using Sproule’s December 31, 2023 price forecasts.

    Reserve estimates, contingent resource estimates and estimates of future net revenue in respect of IPC’s oil and gas assets in France and Malaysia are effective as of December 31, 2023, and are included in the report prepared by ERC Equipoise Ltd. (ERCE), an independent qualified reserves auditor, in accordance with NI 51-101 and the COGE Handbook, and using Sproule’s December 31, 2023 price forecasts.

    The price forecasts used in the Sproule and ERCE reports are available on the website of Sproule (sproule.com) and are contained in the AIF. These price forecasts are as at December 31, 2023 and may not be reflective of current and future forecast commodity prices.

    The reserve life index (RLI) is calculated by dividing the 2P reserves of 468 MMboe as at December 31, 2023 by the mid-point of the 2024 CMD production guidance of 46,000 to 48,000 boepd.

    IPC uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). A BOE conversion ratio of 6:1 is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a 6:1 conversion basis may be misleading as an indication of value.

    Supplemental Information regarding Product Types

    The following table is intended to provide supplemental information about the product type composition of IPC’s net average daily production figures provided in this press release:

      Heavy Crude Oil
    (Mbopd)    		 Light and Medium Crude Oil (Mbopd) Conventional Natural Gas (per day) Total
    (Mboepd)
    Three months ended        
    September 30, 2024 21.9 7.8 91.9 MMcf
    (15.3 Mboe)    		 45.0
    September 30, 2023 25.8 7.1 103.4 MMcf
    (17.3 Mboe)    		 50.2
    Nine months ended        
    September 30, 2024 23.7 7.9 94.8 MMcf
    (15.8 Mboe)    		 47.4
    September 30, 2023 25.9 8.6 102.4 MMcf
    (17.1 Mboe)    		 51.6
    Year ended        
    December 31, 2023 25.8 8.1 102.8 MMcf
    (17.1 Mboe)    		 51.1
             

    This press release also makes reference to IPC’s forecast total average daily production of 46,000 to 48,000 boepd for 2024. IPC estimates that approximately 50% of that production will be comprised of heavy oil, approximately 16% will be comprised of light and medium crude oil and approximately 34% will be comprised of conventional natural gas.

    Currency
    All dollar amounts in this press release are expressed in United States dollars, except where otherwise noted. References herein to USD mean United States dollars and to MUSD mean millions of United States dollars. References herein to CAD mean Canadian dollars.

    The MIL Network –

  • MIL-OSI: Valeura Energy Inc.: Completion of Internal Restructuring

    Source: GlobeNewswire (MIL-OSI)

    SINGAPORE, Nov. 05, 2024 (GLOBE NEWSWIRE) — Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) (“Valeura” or the “Company”) is pleased to announce the completion of an internal restructuring of its Thailand subsidiary companies. 

    Valeura’s working interests in all its Thai III fiscal contracts, covering the Nong Yao, Manora and Wassana fields, are now held by Valeura Energy (Thailand) Ltd, a wholly owned subsidiary of Valeura, which previously had only held an interest in the Wassana asset.  The Company anticipates that the new structure offers the potential to optimise various operational and financial aspects of these assets.  In particular, the Company anticipates realising efficiencies through ongoing contracting and procurement, as well as the pooling of future costs and historical tax loss carry-forwards associated with these assets.  As of September 30, 2024, the cumulative tax loss carry-forwards are estimated at US$397 million(1).  

    Dr. Sean Guest, President and CEO commented:

    “Today marks a milestone in delivering value for our shareholders, and completes the integration work we started after our Gulf of Thailand acquisitions in 2022 and 2023.  Early on, we identified the potential for greater efficiency by bringing our Thai III assets together through a re-organisation; our team recognised that together, these assets are worth more than the sum of their parts. 

    Pursuing this type of synergy strengthens our ability to re-invest in the business for the benefit of all stakeholders.  We intend to continue investing directly into the many organic growth opportunities inherent in our Thailand portfolio, and also seeking new ways to provide further value, including through acquisition-led growth.”

    Under Thailand’s income tax provisions, from today forward, petroleum income tax for the three subject assets will be assessed as a single entity. Tax obligations relating to the previous subsidiary company arrangement are required to be assessed immediately and settled within the next 30 days. Taxation arrangements for the Jasmine field, which is governed by a different vintage of fiscal terms (known as Thai I), and held in a separate subsidiary entity, will continue unchanged. 

    (1) Unaudited internal management estimate based on Thai baht exchange rate as of November 1, 2024, subject to review by tax advisors and auditors.

    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 Valeura

    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.

    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 potential to optimise various operational and financial aspects, relating to such matters as ongoing contracting and procurement, as well as the pooling of future costs and historical tax loss carry-forwards associated with these assets and statements with respect to the growth opportunities inherent in the Company’s Thailand portfolio and the Company seeking new ways to provide further value.

    Forward-looking information is based on management’s current expectations and assumptions regarding, among other things: the ability of the Company to obtain the anticipated benefits from the internal restructuring; 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; 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; royalty rates and taxes; 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; ability to attract a partner to participate in its tight gas exploration/appraisal play in Türkiye; future growth; the sufficiency of budgeted capital expenditures in carrying out planned activities; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions; global energy policies going forward; 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; 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, 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.

    The forward-looking information contained in this new 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 new release is expressly qualified by this cautionary statement.

    This announcement 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 announcement 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 –

  • MIL-OSI: Progress on share buyback programme

    Source: GlobeNewswire (MIL-OSI)

    Progress on share buyback programme

    ING announced today that, as part of our €2.0 billion share buyback programme announced on 31 October 2024, in total 4,016,274 shares were repurchased during the week of 31 October 2024 up to and including 1 November 2024.

    In line with the purpose of the programme to reduce the share capital of ING, the ordinary shares were repurchased at an average price of €15.64 for a total consideration of €62,798,086.93. To date approximately 3.14% of the maximum total value of the share buyback programme has been completed.

    For detailed information on the daily repurchased shares, individual share purchase transactions and weekly reports, see the ING website at www.ing.com/investorrelations.

    Note for editors

    For more on ING, please visit www.ing.com. Frequent news updates can be found in the Newsroom or via X @ING_news feed. Photos of ING operations, buildings and its executives are available for download at Flickr.

    ING PROFILE
    ING is a global financial institution with a strong European base, offering banking services through its operating company ING Bank. The purpose of ING Bank is: empowering people to stay a step ahead in life and in business. ING Bank’s more than 60,000 employees offer retail and wholesale banking services to customers in over 40 countries.

    ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).

    ING aims to put sustainability at the heart of what we do. Our policies and actions are assessed by independent research and ratings providers, which give updates on them annually. ING’s ESG rating by MSCI was reconfirmed by MSCI as ‘AA’ in August 2024 for the fifth year. As of December 2023, in Sustainalytics’ view, ING’s management of ESG material risk is ‘Strong’. Our current ESG Risk Rating, is 17.2 (Low Risk). ING Group shares are also included in major sustainability and ESG index products of leading providers. Here are some examples: Euronext, STOXX, Morningstar and FTSE Russell.

    Important legal information

    Elements of this press release contain or may contain information about ING Groep N.V. and/ or ING Bank N.V. within the meaning of Article 7(1) to (4) of EU Regulation No 596/2014 (‘Market Abuse Regulation’).

    ING Group’s annual accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS- EU’). In preparing the financial information in this document, except as described otherwise, the same accounting principles are applied as in the 2023 ING Group consolidated annual accounts. All figures in this document are unaudited. Small differences are possible in the tables due to rounding.

    Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to a number of factors, including, without limitation: (1) changes in general economic conditions and customer behaviour, in particular economic conditions in ING’s core markets, including changes affecting currency exchange rates and the regional and global economic impact of the invasion of Russia into Ukraine and related international response measures (2) changes affecting interest rate levels (3) any default of a major market participant and related market disruption (4) changes in performance of financial markets, including in Europe and developing markets (5) fiscal uncertainty in Europe and the United States (6) discontinuation of or changes in ‘benchmark’ indices (7) inflation and deflation in our principal markets (8) changes in conditions in the credit and capital markets generally, including changes in borrower and counterparty creditworthiness (9) failures of banks falling under the scope of state compensation schemes (10) non-compliance with or changes in laws and regulations, including those concerning financial services, financial economic crimes and tax laws, and the interpretation and application thereof (11) geopolitical risks, political instabilities and policies and actions of governmental and regulatory authorities, including in connection with the invasion of Russia into Ukraine and the related international response measures (12) legal and regulatory risks in certain countries with less developed legal and regulatory frameworks (13) prudential supervision and regulations, including in relation to stress tests and regulatory restrictions on dividends and distributions (also among members of the group) (14) ING’s ability to meet minimum capital and other prudential regulatory requirements (15) changes in regulation of US commodities and derivatives businesses of ING and its customers (16) application of bank recovery and resolution regimes, including write down and conversion powers in relation to our securities (17) outcome of current and future litigation, enforcement proceedings, investigations or other regulatory actions, including claims by customers or stakeholders who feel misled or treated unfairly, and other conduct issues (18) changes in tax laws and regulations and risks of non-compliance or investigation in connection with tax laws, including FATCA (19) operational and IT risks, such as system disruptions or failures, breaches of security, cyber-attacks, human error, changes in operational practices or inadequate controls including in respect of third parties with which we do business and including any risks as a result of incomplete, inaccurate, or otherwise flawed outputs from the algorithms and data sets utilized in artificial intelligence (20) risks and challenges related to cybercrime including the effects of cyberattacks and changes in legislation and regulation related to cybersecurity and data privacy, including such risks and challenges as a consequence of the use of emerging technologies, such as advanced forms of artificial intelligence and quantum computing (21) changes in general competitive factors, including ability to increase or maintain market share (22) inability to protect our intellectual property and infringement claims by third parties (23) inability of counterparties to meet financial obligations or ability to enforce rights against such counterparties (24) changes in credit ratings (25) business, operational, regulatory, reputation, transition and other risks and challenges in connection with climate change and ESG-related matters, including data gathering and reporting (26) inability to attract and retain key personnel (27) future liabilities under defined benefit retirement plans (28) failure to manage business risks, including in connection with use of models, use of derivatives, or maintaining appropriate policies and guidelines (29) changes in capital and credit markets, including interbank funding, as well as customer deposits, which provide the liquidity and capital required to fund our operations, and (30) the other risks and uncertainties detailed in the most recent annual report of ING Groep N.V. (including the Risk Factors contained therein) and ING’s more recent disclosures, including press releases, which are available on www.ING.com.

    This document may contain ESG-related material that has been prepared by ING on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. ING has not sought to independently verify information obtained from public and third-party sources and makes no representations or warranties as to accuracy, completeness, reasonableness or reliability of such information.

    Materiality, as used in the context of ESG, is distinct from, and should not be confused with, such term as defined in the Market Abuse Regulation or as defined for Securities and Exchange Commission (‘SEC’) reporting purposes. Any issues identified as material for purposes of ESG in this document are therefore not necessarily material as defined in the Market Abuse Regulation or for SEC reporting purposes. In addition, there is currently no single, globally recognized set of accepted definitions in assessing whether activities are “green” or “sustainable.” Without limiting any of the statements contained herein, we make no representation or warranty as to whether any of our securities constitutes a green or sustainable security or conforms to present or future investor expectations or objectives for green or sustainable investing. For information on characteristics of a security, use of proceeds, a description of applicable project(s) and/or any other relevant information, please reference the offering documents for such security.

    This document may contain inactive textual addresses to internet websites operated by us and third parties. Reference to such websites is made for information purposes only, and information found at such websites is not incorporated by reference into this document. ING does not make any representation or warranty with respect to the accuracy or completeness of, or take any responsibility for, any information found at any websites operated by third parties. ING specifically disclaims any liability with respect to any information found at websites operated by third parties. ING cannot guarantee that websites operated by third parties remain available following the publication of this document, or that any information found at such websites will not change following the filing of this document. Many of those factors are beyond ING’s control.

    Any forward-looking statements made by or on behalf of ING speak only as of the date they are made, and ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason.

    This document does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in the United States or any other jurisdiction.

    Attachment

    The MIL Network –

  • MIL-OSI Russia: Internship of Russian specialists in China has started

    Translation. Region: Russian Federation –

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

    On November 4, a group of Russian specialists – graduates of the Presidential Program, led by the Director of the Federal Resource Center Alexey Bunkin, arrived in the People’s Republic of China in Beijing to undergo an overseas internship in the areas of “Economic Cooperation in Mechanical Engineering” and “General Economic Cooperation”. 50 representatives of Russian business from 20 regions of the Russian Federation will undergo an intensive internship in the largest organizations in Beijing and Shanghai for a week.

    The rector of the State University of Management Vladimir Stroyev is taking part in the Russian business mission. Let us recall that the State University of Management has been the operator of the program for training Russian specialists abroad for the third year in a row, which is conducted for graduates of the Presidential Program for Training Management Personnel for Organizations of the National Economy of the Russian Federation.

    The business program of internship of Russian specialists in Beijing was opened by the director of the Federal State Budgetary Institution “FRC” Alexey Bunkin, emphasizing that the internship opens up great opportunities for business representatives to establish business contacts, get acquainted with the peculiarities of the organization and management of enterprises, and study the experience of high-tech production.

    Then, the rector of the State University of Management Vladimir Stroyev made a welcoming speech, noting that the program for training specialists abroad is a kind of driver for the development of trade and economic relations between the Russian Federation and other countries, providing participants with the opportunity to establish business contacts for the development of mutually beneficial economic ties and their own business, meet foreign partners, study the equipment and technologies offered, and negotiate with potential partners in specific areas and types of activities. Vladimir Stroyev also emphasized that internships are highly effective in terms of building horizontal ties and partnerships among Russian specialists. The rector of the State University of Management expressed confidence that the implementation of such projects will help form a new generation of entrepreneurs operating on the basis of specially formed competencies and practical skills in building international economic cooperation.

    After the completion of the official opening of the program, representatives of the Trade Mission of the Russian Federation in the People’s Republic of China, the Representative Office of the Ministry of Economic Development of the Russian Federation in the People’s Republic of China, and the Russian House in Beijing made presentations.

    The speakers talked about how to find a Chinese counterparty and start exporting your products to China, about the financial aspects of entering the Chinese market and checking the reliability of Chinese companies. The reports caused a lively discussion and a large block of questions.

    Representatives of Russian departments in China wished the interns fruitful work and successful completion of the program and once again emphasized their readiness to provide assistance and support in the implementation of business projects for the benefit of the interests of Russian-Chinese trade and economic relations.

    The first day’s program ended with an organizational meeting with the working group of the State University of Management under the leadership of Vice-Rector Dmitry Bryukhanov, during which they discussed in detail the upcoming events of the program, the specifics of representing Russian companies at meetings with representatives of the Chinese business community in terms of intercultural communication and the specifics of conducting negotiations with potential partners at B2B and individual meetings.

    Subscribe to the TG channel “Our GUU” Date of publication: 11/5/2024

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

    MIL OSI Russia News –

  • MIL-OSI Russia: Citywide contact center begins testing new AI-powered tool

    Translation. Region: Russian Federation –

    Source: Moscow Government – Government of Moscow –

    The citywide contact center (CCC) has begun using new domestically developed large language models (LLM) in pilot mode. This is a type of artificial intelligence that enables a voice assistant to quickly find the right option in the knowledge base, answer several questions from subscribers at once, and learn independently. Its use will help improve the quality and speed of providing consultations on hotlines, and will also give operators time to resolve more complex requests from residents.

    “The use of language models is being piloted on the Moscow Government’s unified helpline for two important tasks: providing consultations on incoming calls and classifying feedback based on service results. In combination, this approach allows not only to train the voice assistant without the help of operators, but also to improve the quality of consultations: the language model classifies residents’ feedback based on call results, which will further help improve the knowledge base and consultation scenarios, and, if necessary, improve the qualifications of operators,” said Andrey Savitsky, head of the citywide contact center.

    What are large language models?

    Large language models are a type of deep learning based on a neural network with many parameters. The large amount of data allows them to search for answers to several questions at once in a single query.

    For example, if a resident calls the line and asks how to obtain a Russian passport and which My Documents offices are near the desired metro station, and also asks to clarify the opening hours of the institution, then a large language model will be able to give a comprehensive answer to all questions at once, providing only the necessary information. In contrast, a regular voice assistant processes only one question, and the rest have to be repeated.

    A Million More Calls: How Digital Technologies Make City Hotlines More Accessible to MuscovitesThe citywide contact center’s voice assistant has handled over 135 million calls in 10 years

    How does this work

    The use of language models on the Moscow Government’s unified information service line is invisible to residents. When a person calls the line and asks a question, the speech recognition system is activated. With its help, the message is recorded, converted from audio format to text and sent to the language model. The latter, in turn, using additional filters, finds the necessary articles with information in the knowledge base, highlights the essence and then generates an answer that the voice assistant tells the subscriber. At the same time, the most accurate comprehensive answer to all the resident’s questions is formed without unnecessary information.

    Large language models can independently and in a split second find information on each new topic in the entire contact center knowledge base and voice it to the applicant. Unlike a standard voice assistant, which reads out the answer from the knowledge base, an assistant based on LLM can support a live dialogue, focusing on the intonation and manner of communication of the subscriber.

    In addition, a large language model based on a neural network trains the voice assistant. If previously operators had to manually upload new topics and answers in various variations to the virtual assistant, now LLM helps the voice assistant independently find the necessary information in the general knowledge base.

    The role of a human is not excluded. Some calls are still processed by operators, and the editors involved in the hotline work monitor the relevance of the information in the knowledge base. Thus, a neural network trains a neural network, but under the strict control of contact center specialists.

    Constant learning and love for people: DIT Moscow on the work of city hotline operators

    Feedback processing

    Another important area for using language models is a new approach to classifying feedback after service. The voice assistant can already collect feedback from residents on contact center lines, but the comments were still processed by contact center specialists. Now, thanks to the implementation of language models, when receiving an assessment from a resident or a comment after a consultation, the neural network ranks them as positive, negative, and neutral, allowing quality control department employees to quickly identify shortcomings and make the consultations provided even faster and more accurate.

    The use of large language models on the hotlines of the OKC to work on the quality of consultations complements the already implemented tools based on artificial intelligence. For example, digital audit, which has been operating since 2023, and speech analytics project, launched this year.

    The hotline of the unified reference service of the Moscow Government of the citywide contact center has been operating since 2015. It is available at the number: 7 495 777-77-77. Most often, residents call the line to clarify the work schedule and addresses of the My Documents government service centers and city departments, find out information about the issuance and replacement of Russian passports, and contact the portal’s technical support mos.ruand get advice on receiving government services electronically.

    The voice assistant has been working on the hotline for eight years. The virtual assistant takes 40 percent of incoming calls on almost 300 topics.

    The use of digital technologies and artificial intelligence to improve the quality of life of city residents is in line with the objectives of the national program “Digital Economy of the Russian Federation” and the Moscow regional project “Digital Public Administration”. More information about this and other national projects implemented in Moscow can be found Here.

    Help for residents and businesses: Moscow contact center voice assistant received almost 160 million callsHow domestic developments help the work of artificial intelligence in a citywide contact centerThe citywide contact center project received high praise from the jury of the Crystal Headset competition

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

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

    http://vvv.mos.ru/nevs/item/146187073/

    MIL OSI Russia News –

  • MIL-OSI Russia: Sergei Sobyanin spoke about the work of the Moscow Aviation Center

    Translation. Region: Russian Federation –

    Source: Moscow Government – Government of Moscow –

    In the capital, active assistance in emergency situations is provided to residents of the capital by aircraft crews. Since the beginning of 2024, medical helicopters Moscow Aviation Center (MAC) 308 injured and somatic patients were evacuated to city hospitals, and firefighting aircraft participated in the elimination of 11 major fires. This was reported by Sergei Sobyanin in his telegram channel.

    “To successfully perform their work, the aviation center’s specialists are constantly improving their qualifications. In 2022, it opened its own training center. Previously, employees had to travel to other cities, but now they can study without interrupting their main work,” the Moscow Mayor wrote.

    Source: Sergei Sobyanin’s Telegram channel @mos_sobyanin

    In the first year, employees could study in eight educational programs; today there are already 14. The main goal of the training is to prepare universal specialists who will act confidently in any situation.

    Two more programs are currently being developed that will allow train pilots operate both firefighting and medical helicopters.

    This year, more than 150 people have already completed the training. Among them are rescuers, pilots, flight mechanics, navigators, engineers and technicians.

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

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

    https://vvv.mos.ru/major/themes/11992050/

    MIL OSI Russia News –

  • MIL-Evening Report: Jonathan Cook: Israel kills the journalists. Western media kills the truth of genocide in Gaza

    Report by Dr David Robie – Café Pacific. –

    Western publics are being subjected to a campaign of psychological warfare, where genocide is classed as ‘self-defence’ and opposition to it ‘terrorism’. Jonathan Cook reports as the world marked the International Day to End Impunity for Crimes against Journalists at the weekend.

    ANALYSIS: By Jonathan Cook

    Israel knew that, if it could stop foreign correspondents from reporting directly from Gaza, those journalists would end up covering events in ways far more to its liking.

    They would hedge every report of a new Israeli atrocity – if they covered them at all – with a “Hamas claims” or “Gaza family members allege”. Everything would be presented in terms of conflicting narratives rather than witnessed facts. Audiences would feel uncertain, hesitant, detached.

    Israel could shroud its slaughter in a fog of confusion and disputation. The natural revulsion evoked by a genocide would be tempered and attenuated.

    For a year, the networks’ most experienced war reporters have stayed put in their hotels in Israel, watching Gaza from afar. Their human-interest stories, always at the heart of war reporting, have focused on the far more limited suffering of Israelis than the vast catastrophe unfolding for Palestinians.

    That is why Western audiences have been forced to relive a single day of horror for Israel, on October 7, 2023, as intensely as they have a year of greater horrors in Gaza — in what the World Court has judged to be a “plausible” genocide by Israel.

    That is why the media have immersed their audiences in the agonies of the families of some 250 Israelis — civilians taken hostage and soldiers taken captive — as much as they have the agonies of 2.3 million Palestinians bombed and starved to death week after week, month after month.

    That is why audiences have been subjected to gaslighting narratives that frame Gaza’s destruction as a “humanitarian crisis” rather than the canvas on which Israel is erasing all the known rules of war.

    Western media’s human-interest stories, always at the heart of war reporting, have focused on the far more limited suffering of Israelis than the vast catastrophe unfolding for Palestinians. Image: www.jonathan-cook.net

    While foreign correspondents sit obediently in their hotel rooms, Palestinian journalists have been picked off one by one — in the greatest massacre of journalists in history.

    Israel is now repeating that process in Lebanon. On the night of October 24, it struck a residence in south Lebanon where three journalists were staying. All were killed.

    In an indication of how deliberate and cynical Israel’s actions are, it put its military’s crosshairs on six Al Jazeera reporters last month, smearing them as “terrorists” working for Hamas and Islamic Jihad. They are reportedly the last surviving Palestinian journalists in northern Gaza, which Israel has sealed off while it carries out the so-called “General’s Plan”.

    Israel wants no one reporting its final push to ethnically cleanse northern Gaza by starving out the 400,000 Palestinians still there and executing anyone who remains as a “terrorist”.

    These six join a long list of professionals defamed by Israel in the interests of advancing its genocide — from doctors and aid workers to UN peacekeepers.

    Sympathy for Israel
     Perhaps the nadir of Israel’s domestication of foreign journalists was reached last month in a report by CNN. Back in February whistleblowing staff there revealed that the network’s executives have been actively obscuring Israeli atrocities to portray Israel in a more sympathetic light.

    In a story whose framing should have been unthinkable — but sadly was all too predictable — CNN reported on the psychological trauma some Israeli soldiers are suffering from time spent in Gaza, in some cases leading to suicide.

    Committing a genocide can be bad for your mental health, it seems. Or as CNN explained, its interviews “provide a window into the psychological burden that the war is casting on Israeli society”.

    In its lengthy piece, titled “He got out of Gaza, but Gaza did not get out of him”, the atrocities the soldiers admit committing are little more than the backdrop as CNN finds yet another angle on Israeli suffering. Israeli soldiers are the real victims — even as they perpetrate a genocide on the Palestinian people.

    One bulldozer driver, Guy Zaken, told CNN he could not sleep and had become vegetarian because of the “very, very difficult things” he had seen and had to do in Gaza.

    What things? Zaken had earlier told a hearing of the Israeli Parliament that his unit’s job was to drive over many hundreds of Palestinians, some of them alive.

    CNN reported: “Zaken says he can no longer eat meat, as it reminds him of the gruesome scenes he witnessed from his bulldozer in Gaza.”

    Doubtless some Nazi concentration camp guards committed suicide in the 1940s after witnessing the horrors there — because they were responsible for them. Only in some weird parallel news universe, would their “psychological burden” be the story.

    After a huge online backlash, CNN amended an editor’s note at the start of the article that originally read: “This story includes details about suicide that some readers may find upsetting.”

    Readers, it was assumed, would find the suicide of Israeli soldiers upsetting, but apparently not the revelation that those soldiers were routinely driving over Palestinians so that, as Zaken explained, “everything squirts out”.

    Banned from Gaza
     Finally, a year into Israel’s genocidal war, now rapidly spreading into Lebanon, some voices are being raised very belatedly to demand the entry of foreign journalists into Gaza.

    This week — in a move presumably designed, as November’s elections loom, to ingratiate themselves with voters angry at the party’s complicity in genocide — dozens of Democratic members of the US Congress wrote to President Joe Biden asking him to pressure Israel to give journalists “unimpeded access” to the enclave.

    Don’t hold your breath.

    Western media have done very little themselves to protest their exclusion from Gaza over the past year — for a number of reasons.

    Given the utterly indiscriminate nature of Israel’s bombardment, major outlets have not wanted their journalists getting hit by a 2000lb bomb for being in the wrong place.

    That may in part be out of concern for their welfare. But there are likely to be more cynical concerns.

    Having foreign journalists in Gaza blown up or executed by snipers would drag media organisations into direct confrontation with Israel and its well-oiled lobby machine.

    The response would be entirely predictable, insinuating that the journalists died because they were colluding with “the terrorists” or that they were being used as “human shields” — the excuse Israel has rolled out time and again to justify its targeting of doctors in Gaza and UN peacekeepers in Lebanon.

    But there’s a bigger problem. The establishment media have not wanted to be in a position where their journalists are so close to the “action” that they are in danger of providing a clearer picture of Israel’s war crimes and its genocide.

    The media’s current distance from the crime scene offers them plausible deniability as they both-sides every Israeli atrocity.

    In previous conflicts, western reporters have served as witnesses, assisting in the prosecution of foreign leaders for war crimes. That happened in the wars that attended the break-up of Yugoslavia, and will doubtless happen once again if Russian President Valdimir Putin is ever delivered to The Hague.

    But those journalistic testimonies were harnessed to put the West’s enemies behind bars, not its closest ally.

    The media do not want their reporters to become chief witnesses for the prosecution in the future trials of Israeli Prime Minister Benjamin Netanyahu and his Defence Minister, Yoav Gallant, at the International Criminal Court. The ICC’s Prosecutor, Karim Khan, is seeking arrest warrants for them both.

    After all, any such testimony from journalists would not stop at Israel’s door. They would implicate Western capitals too, and put establishment media organisations on a collision course with their own governments.

    The Western media does not see its job as holding power to account when the West is the one committing the crimes.

    Censoring Palestinians
     Journalist whistleblowers have gradually been coming forward to explain how establishment news organisations — including the BBC and the supposedly liberal Guardian — are sidelining Palestinian voices and minimising the genocide.

    An investigation by Novara Media recently revealed mounting unhappiness in parts of The Guardian newsroom at its double standards on Israel and Palestine.

    Its editors recently censored a commentary by preeminent Palestinian author Susan Abulhawa after she insisted on being allowed to refer to the slaughter in Gaza as “the holocaust of our times”.

    Senior Guardian columnists such as Jonathan Freedland made much during Jeremy Corbyn’s tenure as leader of the Labour party that Jews, and Jews alone, had the right to define and name their own oppression.

    That right, however, does not appear to extend to Palestinians.

    As staff who spoke to Novara noted, The Guardian’s Sunday sister paper, The Observer, had no problem opening its pages to British Jewish writer Howard Jacobson to smear as a “blood libel” any reporting of the provable fact that Israel has killed many, many thousands of Palestinian children in Gaza.

    One veteran journalist there said: “Is The Guardian more worried about the reaction to what is said about Israel than Palestine? Absolutely.”

    Another staff member admitted it would be inconceivable for the paper to be seen censoring a Jewish writer. But censoring a Palestinian one is fine, it seems.

    Other journalists report being under “suffocating control” from senior editors, and say this pressure exists “only if you’re publishing something critical of Israel”.

    According to staff there, the word “genocide” is all but banned in the paper except in coverage of the International Court of Justice, whose judges ruled nine months ago that a “plausible” case had been made that Israel was committing genocide. Things have got far worse since.

    Whistleblowing journalists
     Similarly, “Sara”, a whistleblower who recently resigned from the BBC newsroom and spoke of her experiences to Al Jazeera’s Listening Post, said Palestinians and their supporters were routinely kept off air or subjected to humiliating and insensitive lines of questioning.

    Some producers have reportedly grown increasingly reluctant to bring on air vulnerable Palestinians, some of whom have lost family members in Gaza, because of concerns about the effect on their mental health from the aggressive interrogations they were being subjected to from anchors.

    According to Sara, BBC vetting of potential guests overwhelmingly targets Palestinians, as well as those sympathetic to their cause and human rights organisations. Background checks are rarely done of Israelis or Jewish guests.

    She added that a search showing that a guest had used the word “Zionism” — Israel’s state ideology — in a social media post could be enough to get them disqualified from a programme.

    Even officials from one of the biggest rights group in the world, the New York-based Human Rights Watch, became persona non grata at the BBC for their criticisms of Israel, even though the corporation had previously relied on their reports in covering Ukraine and other global conflicts.

    Israeli guests, by contrast, “were given free rein to say whatever they wanted with very little pushback”, including lies about Hamas burning or beheading babies and committing mass rape.

    An email cited by Al Jazeera from more than 20 BBC journalists sent last February to Tim Davie, the BBC’s director-general, warned that the corporation’s coverage risked “aiding and abetting genocide through story suppression”.

    Upside-down values
     These biases have been only too evident in the BBC’s coverage, first of Gaza and now, as media interest wanes in the genocide, of Lebanon.

    Headlines — the mood music of journalism, and the only part of a story many of the audience read — have been uniformly dire.

    For example, Netanyahu’s threats of a Gaza-style genocide against the Lebanese people last month if they did not overthrow their leaders were soft-soaped by the BBC headline: “Netanyahu’s appeal to Lebanese people falls on deaf ears in Beirut.”

    Reasonable readers would have wrongly inferred both that Netanyahu was trying to do the Lebanese people a favour (by preparing to murder them), and that they were being ungrateful in not taking up his offer.

    It has been the same story everywhere in the establishment media. In another extraordinary, revealing moment, Kay Burley of Sky News announced last month the deaths of four Israeli soldiers from a Hezbollah drone strike on a military base inside Israel.

    With a solemnity usually reserved for the passing of a member of the British royal family, she slowly named the four soldiers, with a photo of each shown on screen. She stressed twice that all four were only 19 years old.

    Sky News seemed not to understand that these were not British soldiers, and that there was no reason for a British audience to be especially disturbed by their deaths. Soldiers are killed in wars all the time — it is an occupational hazard.

    And further, if Israel considered them old enough to fight in Gaza and Lebanon, then they were old enough to die too without their age being treated as particularly noteworthy.

    But more significantly still, Israel’s Golani Brigade to which these soldiers belonged has been centrally involved in the slaughter of Palestinians over the past year. Its troops have been responsible for many of the tens of thousands of children killed and maimed in Gaza.

    Each of the four soldiers was far, far less deserving of Burley’s sympathy and concern than the thousands of children who have been slaughtered at the hands of their brigade. Those children are almost never named and their pictures are rarely shown, not least because their injuries are usually too horrifying to be seen.

    It was yet more evidence of the upside-down world the establishment media has been trying to normalise for its audiences.

    It is why statistics from the United States, where the coverage of Gaza and Lebanon may be even more unhinged, show faith in the media is at rock bottom. Fewer than one in three respondents — 31 percent — said they still had a “great deal or fair amount of trust in mass media”.

    Crushing dissent
     Israel is the one dictating the coverage of its genocide. First by murdering the Palestinian journalists reporting it on the ground, and then by making sure house-trained foreign correspondents stay well clear of the slaughter, out of harm’s way in Tel Aviv and Jerusalem.

    And as ever, Israel has been able to rely on the complicity of its Western patrons in crushing dissent at home.

    Last week, a British investigative journalist, Asa Winstanley, an outspoken critic of Israel and its lobbyists in the UK, had his home in London raided at dawn by counter-terrorism police.

    Though the police have not arrested or charged him — at least not yet — they snatched his electronic devices. He was warned that he is being investigated for “encouragement of terrorism” in his social media posts.

    Police told Middle East Eye that his devices had been seized as part of an investigation into suspected terrorism offences of “support for a proscribed organisation” and “dissemination of terrorist documents”.

    The police can act only because of Britain’s draconian, anti-speech Terrorism Act.

    Section 12, for example, makes the expression of an opinion that could be interpreted as sympathetic to armed Palestinian resistance to Israel’s illegal occupation — a right enshrined in international law but sweepingly dismissed as “terrorism” in the West — itself a terrorism offence.

    Those journalists who haven’t been house-trained in the establishment media, as well as solidarity activists, must now chart a treacherous path across intentionally ill-defined legal terrain when talking about Israel’s genocide in Gaza.

    Winstanley is not the first journalist to be accused of falling foul of the Terrorism Act. In recent weeks, Richard Medhurst, a freelance journalist, was arrested at Heathrow airport on his return from a trip abroad. Another journalist-activist, Sarah Wilkinson, was briefly arrested after her home was ransacked by police.

    Their electronic devices were seized too.

    Meanwhile, Richard Barnard, co-founder of Palestine Action, which seeks to disrupt the UK’s supply of weapons to Israel’s genocide, has been charged over speeches he has made against the genocide.

    It now appears that all these actions are part of a specific police campaign targeting journalists and Palestinian solidarity activists: “Operation Incessantness”.

    The message this clumsy title is presumably supposed to convey is that the British state is coming after anyone who speaks out too loudly against the British government’s continuing arming and complicity in Israel’s genocide.

    Notably, the establishment media have failed to cover this latest assault on journalism and the role of a free press — supposedly the very things they are there to protect.

    The raid on Winstanley’s home and the arrests are intended to intimidate others, including independent journalists, into silence for fear of the consequences of speaking up.

    This has nothing to do with terrorism. Rather, it is terrorism by the British state.

    Once again the world is being turned upside down.

    Echoes from history
     The West is waging a campaign of psychological warfare on its populations: it is gaslighting and disorientating them, classing genocide as “self-defence” and opposition to it a form of “terrorism”.

    This is an expansion of the persecution suffered by Julian Assange, the Wikileaks founder who spent years locked up in London’s Belmarsh high-security prison.

    His unprecedented journalism — revealing the darkest secrets of Western states — was redefined as espionage. His “offence” was revealing that Britain and the US had committed systematic war crimes in Iraq and Afghanistan.

    Now, on the back of that precedent, the British state is coming after journalists simply for embarrassing it.

    Late last month I attended a meeting in Bristol against the genocide in Gaza at which the main speaker was physically absent after the British state failed to issue him an entry visa.

    The missing guest — he had to join us by zoom — was Mandla Mandela, the grandson of Nelson Mandela, who was locked up for decades as a terrorist before becoming the first leader of post-apartheid South Africa and a feted, international statesman.

    Mandla Mandela was until recently a member of the South African Parliament.

    A Home Office spokesperson told Middle East Eye that the UK only issued visas “to those who we want to welcome to our country”.

    Media reports suggest Britain was determined to exclude Mandela because, like his grandfather, he views the Palestinian struggle against Israeli apartheid as intimately linked to the earlier struggle against South Africa’s apartheid.

    The echoes from history are apparently entirely lost on officials: the UK is once again associating the Mandela family with terrorism. Before it was to protect South Africa’s apartheid regime. Now it is to protect Israel’s even worse apartheid and genocidal regime.

    The world is indeed turned on its head. And the West’s supposedly “free media” is playing a critical role in trying to make our upside-down world seem normal.

    That can only be achieved by failing to report the Gaza genocide as a genocide. Instead, Western journalists are serving as little more than stenographers. Their job: to take dictation from Israel.

    Jonathan Cook is an award-winning British journalist. He was based in Nazareth, Israel, for 20 years and returned to the UK in 2021. He is the author of three books on the Israel-Palestine conflict, including Disappearing Palestine: Israel’s Experiments in Human Despair (2008). In 2011, Cook was awarded the Martha Gellhorn Special Prize for Journalism for his work on Palestine and Israel. This article was first published in Middle East Eye and is republished with the author’s permission.

    This article was first published on Café Pacific.

    MIL OSI Analysis – EveningReport.nz –