MIL-OSI New Zealand: Evolution Traffic Management collapse highlights NZ’s impending infrastructure crisis

Source: First Union

Financial pressures, Government inaction and the changing nature of work have proved insurmountable for Evolution Traffic Management and have ultimately led to the company’s liquidation and the loss of over 100 jobs, FIRST Union said today.

Workers across three Evolution Traffic Management sites in Auckland, Hamilton and Taupo were informed on Friday last week that the business’s liquidation will result in job losses for over 100 employees, marking a difficult and uncertain future ahead.

“The company’s collapse is a direct casualty of the shutdown of rebuilds, the slowdown in roading and infrastructure development, and the sluggish pace of the National Government’s commitment to infrastructure,” said Justin Wallace, FIRST Union organiser.

“Delays in critical projects have forced hundreds of skilled and unskilled infrastructure workers to leave the country, creating a significant risk to New Zealand’s development and growth.”

Mr Wallace said the union is supporting members through the process and pursuing entitlements and redundancy compensation for workers as a first priority for the company ahead of any other creditors and commitments: “There’s a lot of stress and anxiety, and a real fear that workers will walk away with nothing if we don’t prioritise their wellbeing.”

Mr Wallace warned that Evolution Traffic Management will not be the last to fall.

“The slowdown in infrastructure investment is putting entire sectors at risk. The Government has already dropped the ball on manufacturing, and now it seems we’re letting infrastructure slip through our fingers as well,” said Mr Wallace.

“Across the industry, there is a clear and urgent warning: if the Government does not act to give infrastructure companies like Evolution some certainty about future projects and their financial viability, we will continue to lose more workers overseas where their experience and talent are more highly valued and compensated.”

“New Zealand is experiencing an exodus of workers who are seeking better opportunities abroad – a trend exacerbated by the Government’s failure to deliver on its “Back on Track” commitments to working New Zealanders.”

“Instead of putting the country back on track, the current trajectory looks more like an impending derailment.”

“The inability to secure and sustain critical infrastructure jobs is having long-term economic consequences that will take years to recover from if left unaddressed.”

“The loss of skilled workers, the stagnation of infrastructure development, and the ongoing economic instability pose a significant threat to the country’s future. It is time for this Government to get its priorities right to prevent further damage and restore confidence in the sector.”

MIL OSI New Zealand News –

February 25, 2025

MIL-OSI Australia: Botswana

Source: Australia Safe Travel Advisories

Heavy rains have caused severe flooding across Botswana. Some borders and roads have been temporarily closed due to the flooding. Take caution, seek local advice, monitor local media and check the Botswana Meteorological Services and Botswana Unified Revenue Service social media pages for up-to-date information on weather conditions and border crossing status prior to travel (see ‘Travel’).

MIL OSI News –

February 25, 2025

MIL-OSI USA: Warner, Moran Lead Introduction of Legislation to Prevent Taxation of Broadband Deployment Grants

US Senate News:

Source: United States Senator for Commonwealth of Virginia Mark R Warner

WASHINGTON – U.S. Sens. Mark R. Warner (D-VA) and Jerry Moran (R-KS) led 10 of their colleagues in introducing legislation to amend the Internal Revenue Code to make certain that federal broadband deployment funding will not be considered taxable income.

Grants awarded to broadband providers for the purposes of broadband deployment are currently factored into a company’s income and taxed as income. This bipartisan legislation moves to exclude broadband deployment grants awarded through certain federal programs from an organization’s income, ensuring the entirety of federal dollars awarded to companies for the purpose of deploying broadband around the country can be used for that purpose, rather than making their way back to the government through taxes.

The senators were joined by Sens. Dan Sullivan (R-AK), Tim Kaine (D-VA), Tommy Tuberville (R-AL), Mark Kelly (D-AZ), Shelley Moore Capito (R-WV), Angus King (I-ME), Roger Wicker (R-MS), Raphael Warnock (D-GA), Kevin Cramer (R-ND) and Deb Fischer (R-NE) in introducing this legislation.

“In order to fully reap the benefits of the Infrastructure Investment and Jobs Act and the American Rescue Plan, every dollar that was set aside to fund broadband expansion and deployment should be used for that purpose,” said Sen. Warner. “Taxing these broadband investments awards is counter-productive, and will ultimately diminish efforts to give more Americans access to high-speed internet.”

“Reliable, high-speed internet is more crucial than ever for Kansans to run their businesses, access telehealth or pursue an education,” said Sen. Moran. “This commonsense legislation would make certain federal grants provided for broadband deployment are not counted as taxable income to maximize the impact and success of these resources.”

“Broadband investments that I worked hard at securing in the bipartisan infrastructure bill will continue to unlock limitless possibilities in terms of telehealth, education and small business opportunities, and importantly, allow Alaskans to connect with one another,” said Sen. Sullivan. “However, taxing these investments weakens our efforts. This legislation ensures that funds directed by Congress are spent on deploying broadband, furthering my goal of connecting every single Alaskan.”

“We made tremendous federal investments, including through the Bipartisan Infrastructure Law, to build broadband infrastructure and help ensure Virginians can access reliable, high-speed internet, which is critical for school, work, and other opportunities,” said Sen. Kaine. “This legislation would ensure every dollar is used for this purpose by preventing broadband deployment grants from being taxed.”

“Rural communities are the backbone of our nation, and we want to ensure that Americans living in these communities have access to high-speed internet,” said Sen. Tuberville. “Taxing broadband grants would undermine federal efforts to prioritize rural broadband expansion. I am proud to support this legislation so that those living in rural America have internet needed to run their businesses, access health care, and pursue educational opportunities.”

“Taxing federal broadband grants as gross income undermines the intent for broadband deployment programs,” said Sen. Capito. “The Broadband Grant Tax Treatment Act would help make sure this doesn’t happen so we can continue our efforts to close the digital divide in the areas that need broadband connectivity the most.”

“In today’s digital age, access to high-speed, affordable broadband is critical for Maine people to live, work and stay connected with one another,” said Sen. King. “Every single dollar that is invested in broadband deployment is vital, and shouldn’t be clawed back by the government at the cost of connecting an extra community street or neighborhood that needs it. I want to thank my colleagues for coming together to help close the digital divide in rural and urban communities in Maine and across the nation.”

“It certainly won’t surprise North Dakotans to know that reliable, high-speed broadband brings our country together in many respects,” said Sen. Cramer. “Much like our integrated highway system and anchored by our interstate highway system, it connects large, rural states like ours to essential services like telemedicine, educational opportunities, and it strengthens, probably more than anything, our small businesses with e-commerce opportunities. By making every dollar for broadband expansion count, this bill really does pave the way for a much more connected future.”

MIL OSI USA News –

February 25, 2025

MIL-OSI USA: Sens. Moran, Warner Lead Introduction of Legislation to Prevent Taxation of Broadband Deployment Grants

US Senate News:

Source: United States Senator for Kansas – Jerry Moran

WASHINGTON – U.S. Senators Jerry Moran (R-Kan.) and Mark Warner (D-Va.) led 10 of their colleagues in introducing legislation to amend the Internal Revenue Code to make certain that federal broadband deployment funding will not be considered taxable income.

Grants awarded to broadband providers for the purposes of broadband deployment are currently factored into a company’s income and taxed as income. This bipartisan legislation moves to exclude broadband deployment grants awarded through certain federal programs from an organization’s income, ensuring the entirety of federal dollars awarded to companies for the purpose of deploying broadband around the country can be used for that purpose, rather than making their way back to the government through taxes.

The senators were joined by Sens. Dan Sullivan (R-Alaska), Tim Kaine (D-Va.), Tommy Tuberville (R-Ala.), Mark Kelly (D-Ariz.), Shelley Moore Capito (R-W.V.), Angus King (I-Maine), Roger Wicker (R-Miss.), Raphael Warnock (D-Ga.), Kevin Cramer (R-N.D.) and Deb Fischer (R-Neb.) in introducing this legislation.

“Reliable, high-speed internet is more crucial than ever for Kansans to run their businesses, access telehealth or pursue an education,” said Sen. Moran. “This commonsense legislation would make certain federal grants provided for broadband deployment are not counted as taxable income to maximize the impact and success of these resources.”

“In order to fully reap the benefits of the Infrastructure Investment and Jobs Act and the American Rescue Plan, every dollar that was set aside to fund broadband expansion and deployment should be used for that purpose,” said Sen. Warner. “Taxing these broadband investments awards is counter-productive, and will ultimately diminish efforts to give more Americans access to high-speed internet.”

“Broadband investments that I worked hard at securing in the bipartisan infrastructure bill will continue to unlock limitless possibilities in terms of telehealth, education and small business opportunities, and importantly, allow Alaskans to connect with one another,” said Sen. Sullivan. “However, taxing these investments weakens our efforts. This legislation ensures that funds directed by Congress are spent on deploying broadband, furthering my goal of connecting every single Alaskan.”

“We made tremendous federal investments, including through the Bipartisan Infrastructure Law, to build broadband infrastructure and help ensure Virginians can access reliable, high-speed internet, which is critical for school, work, and other opportunities,” said Sen. Kaine. “This legislation would ensure every dollar is used for this purpose by preventing broadband deployment grants from being taxed.”

“Rural communities are the backbone of our nation, and we want to ensure that Americans living in these communities have access to high-speed internet,” said Sen. Tuberville. “Taxing broadband grants would undermine federal efforts to prioritize rural broadband expansion. I am proud to support this legislation so that those living in rural America have internet needed to run their businesses, access health care, and pursue educational opportunities.”

“Taxing federal broadband grants as gross income undermines the intent for broadband deployment programs,” said Sen. Capito. “The Broadband Grant Tax Treatment Act would help make sure this doesn’t happen so we can continue our efforts to close the digital divide in the areas that need broadband connectivity the most.”

“In today’s digital age, access to high-speed, affordable broadband is critical for Maine people to live, work and stay connected with one another,” said Sen. King. “Every single dollar that is invested in broadband deployment is vital, and shouldn’t be clawed back by the government at the cost of connecting an extra community street or neighborhood that needs it. I want to thank my colleagues for coming together to help close the digital divide in rural and urban communities in Maine and across the nation.”

“It certainly won’t surprise North Dakotans to know that reliable, high-speed broadband brings our country together in many respects,” said Sen. Cramer. “Much like our integrated highway system and anchored by our interstate highway system, it connects large, rural states like ours to essential services like telemedicine, educational opportunities, and it strengthens, probably more than anything, our small businesses with e-commerce opportunities. By making every dollar for broadband expansion count, this bill really does pave the way for a much more connected future.”

MIL OSI USA News –

February 25, 2025

MIL-OSI Australia: Retail petrol prices lower across all capital cities and almost all regional locations in the December quarter

Source: Australian Competition and Consumer Commission

The quarterly average for retail petrol prices decreased in the December quarter 2024, hitting a three-year low in real (inflation adjusted) terms, the ACCC’s latest petrol monitoring report has found.

Click to enlarge

Average retail petrol prices across the five largest cities (Sydney, Melbourne, Brisbane, Adelaide and Perth) were 179.8 cents per litre (cpl), a decrease of 3.0 cpl from the previous quarter.

The decrease was largely due to lower international prices for refined petrol (Mogas 95). Mogas 95 prices are largely driven by international crude oil prices, which declined following slowing global oil demand together with increases in oil supply from Organisation of the Petroleum Exporting Countries (OPEC) members and some non-OPEC countries.

“A range of international factors which influence the prices of commodities like crude oil have led to prices at the bowser easing from the higher levels that were seen in early 2024,” ACCC Commissioner Anna Brakey said.

Lower average petrol prices in other capital cities and in regional locations

Average retail petrol prices in Canberra, Hobart and Darwin also fell in the December quarter 2024. Average prices in Darwin were 168.9 cpl, the lowest of the eight capital cities.

Average retail petrol prices across regional locations (in aggregate), fell to 179.5 cpl in the December quarter 2024, slightly below the average prices across the five largest cities. The ACCC monitors fuel prices of more than 190 regional locations across Australia.

“It is pleasing to see that motorists had some relief when filling up at petrol stations across the country,” Ms Brakey said.

Average petrol gross indicative retail differences increased

Gross indicative retail differences are a broad indicator of gross retail margins, including retail operating costs and profits. Average gross indicative retail differences across the five largest cities were 17.2 cpl in the December quarter 2024, an increase of 1.6 cpl from the previous quarter.

Quarterly average gross indicative retail differences can vary between cities, and were lowest in Perth (9.6 cpl) and highest in Brisbane (24.1 cpl).

In 2024, annual average gross indicative retail differences across the five largest cities were 16.3 cpl, which is slightly higher than pre-pandemic levels in real (inflation-adjusted) terms.

The following chart shows the changes in the components of average retail petrol prices across the five largest cities.

Components of quarterly average retail petrol prices across the five largest cities

Source: ACCC calculations based on data from Informed Sources, Argus Media, Ampol, bp, Mobil, Viva Energy, FuelWatch, the Reserve Bank of Australia and the Australian Taxation Office.

Notes: cents per litre change from the previous quarter.

* Excise and wholesale goods and services tax (65.4 cpl) excludes a component of retail goods and services tax (1.5 cpl) in the above chart. This is for consistency in reporting gross indicative retail difference figures throughout this report, which include a small component of goods and services tax. Total excise and goods and services tax for both wholesale and retail (66.9 cpl) is shown in the petrol bowser in the ‘December quarter 2024 – Petrol snapshot’.

Average diesel prices were lower in all capital cities, reflecting international trends

Quarterly average retail diesel prices across the five largest cities were 177.1 cpl in the December quarter 2024, down 8.4 cpl from the September quarter 2024. Average retail diesel prices were also lower in Canberra, Hobart and Darwin.

Retail diesel prices generally followed lower international diesel benchmark prices, which accounted for the largest component of retail diesel prices.

Quarterly average retail diesel prices in capital cities in the December quarter 2024

Source: ACCC calculations based on data from Informed Sources.

Note: cents per litre change from the previous quarter.

In real (inflation adjusted) terms, quarterly average retail diesel prices across the five largest cities were the lowest in over three years, when average diesel prices were 172.4 cpl in the September quarter 2021.

More consumers are using fuel price apps

Around two in five consumers (or 41 per cent) reported using fuel price apps to shop around for cheaper fuel in 2024, according to research published by the Australasian Convenience and Petroleum Marketers Association. This was up from 34 per cent in 2022.

“Taking advantage of the available information through apps and websites can be well worth it to find retailers with lower fuel prices in your area and to save money on fuel,” Ms Brakey said.

The ACCC also publishes up-to-date price charts, buying tips, and information on movements in the petrol price cycles that occur in Sydney, Melbourne, Brisbane, Adelaide and Perth, which can be helpful for consumers.

The ACCC has championed greater fuel price transparency for consumers for some time.

“We are aware that the Victorian Government recently announced a price transparency scheme to be phased in over 2025. Victoria is the only jurisdiction in Australia without a state or territory government fuel price transparency scheme,” Ms Brakey said.

Note to editors

‘Petrol’ means regular unleaded petrol unless otherwise specified.

Price changes are reported in nominal terms unless otherwise specified.

Singapore Mogas 95 Unleaded (Mogas 95) is the relevant international benchmark for the wholesale price of petrol in Australia. Singapore Gasoil with 10 parts per million sulphur content (Gasoil 10 ppm) is the international benchmark for the wholesale price of diesel.

Background

The ACCC has been monitoring retail prices in all capital cities and over 190 regional locations across Australia since 2007.

On 14 December 2022, the Treasurer issued a new direction to the ACCC to monitor the prices, costs and profits relating to the supply of petroleum products in the petroleum industry in Australia and produce a report every quarter for a further three years.

MIL OSI News –

February 25, 2025

MIL-OSI USA: News 02/24/2025 Blackburn Requests FBI Director Patel Release Complete, Unredacted Epstein Records

US Senate News:

Source: United States Senator Marsha Blackburn (R-Tenn)
WASHINGTON, D.C. – Today, U.S. Senator Marsha Blackburn (R-Tenn.) sent a letter to Federal Bureau of Investigation (FBI) Director Kash Patel and U.S. Attorney General Pam Bondi requesting that they promptly release the complete flight logs from Jeffrey Epstein’s private jet and helicopter, any records that were in Ghislaine Maxwell’s possession, including her “little black book,” and all video surveillance footage from Jeffrey Epstein’s residence in Palm Beach, Florida. During his confirmation hearing, Director Patel committed to working with Senator Blackburn to release the files and provide transparency.
Senator Blackburn also sent a letter to Internal Revenue Service (IRS) Acting Commissioner Douglas O’Donnell requesting the release of any and all information in his agency’s possession that will reveal Jeffrey Epstein’s associates and business dealings.
Blackburn: Americans Deserve to Know Exactly Who Was Affiliated with Epstein’s Network
“Congratulations on your recent confirmation as the 9th Director of the Federal Bureau of Investigation. I have no doubt that you will bring much-needed transparency to the FBI as you return the Bureau to its core mission of investigating crimes and keeping our nation safe. To that end, at your January 30, 2025, Senate Judiciary Committee confirmation hearing, you committed to working with me in illuminating the full extent and scope of Jeffrey Epstein’s international sex trafficking ring. The American people deserve to know exactly who was affiliated with this network.”
Blackburn Pushes for Release of Complete, Unredacted Epstein Records
“As you know, over the course of many years, Jeffrey Epstein built a heinous global sex trafficking network that caused irreparable harm to countless women. Since Mr. Epstein’s death in 2019, there is still much about this tragic case that is not known—including the names of his associates that are listed in the flight logs of his private jet and in Ghislaine Maxwell’s ‘little black book.’ While some redacted portions of Epstein’s flight logs and Maxwell’s ‘little black book’ have been released in various lawsuits, it is paramount that the FBI provide full transparency to the American people and immediately release the complete, unredacted records in this case.”
Blackburn’s Previous Efforts to Provide Transparency for the American People Were Stonewalled
“Your predecessor, Director Wray, was unwilling to provide this crucially important transparency. In fact, despite informing me during his December 2023 appearance before the Judiciary Committee that he would ‘get with [his] team and figure out if there’s more information we can provide’ on the Epstein matter, Director Wray never provided any such follow-up information. Over a year has elapsed since then, and we still do not have all of the necessary information regarding Jeffrey Epstein’s crimes. As noted above, you have committed to bringing transparency back to the FBI and rooting out the two-tiered system of justice that has operated there for far too long. Therefore, I respectfully request that you transmit to me and release to the American public the… records that are in the Bureau’s possession.”
View Senator Blackburn’s letter to the FBI here.
View Senator Blackburn’s letter to the IRS here.
RELATED

MIL OSI USA News –

February 25, 2025

MIL-OSI United Kingdom: £120 million to roll-out more electric vans, taxis and motorbikes

Source: United Kingdom – Executive Government & Departments

Press release

£120 million to roll-out more electric vans, taxis and motorbikes

We are making it easier, faster and cheaper for people across the UK to switch to electric vehicles.

government extends support to help drivers, businesses, fleets and cabbies make the switch to cleaner vehicles
red tape blocking businesses from switching to zero emission vans to be cut
part of £2.3 billion to help make a supported transition to zero emissions vehicles, creating jobs and delivering the Plan for Change

Drivers, cabbies and businesses are set to benefit from £120 million in government funding to make the switch to cleaner vans, wheelchair accessible vehicles and taxis easier, faster and cheaper.

Today (25 February 2025) Future of Roads Minister Lilian Greenwood confirmed that the department is extending the Plug-in van grant for another year, to help van drivers and businesses transition to zero emission vehicles.

The extension will mean businesses and van drivers can receive grants up to £2,500 when buying small vans up to 2.5 tonnes and up to £5,000 for larger vans up to 4.25 tonnes.

The Plug-in van grant has helped sell over 80,000 electric and zero emission vans since its launch, as the government continues to back businesses all over the country.

The department is also making it easier to switch to zero emission vans – which can be heavier than their petrol and diesel counterparts despite being of the same size – by removing the requirement for additional training that is currently in place only for zero emission vans but not their petrol and diesel equivalents.

This will help businesses by taking away training costs, cutting red tape and making it easier to hire drivers when operating electric vans.

Today’s funding is part of over £2.3 billion to help industry and consumers make a supported switch to electric vehicles (EVs). This is creating high paid jobs, supporting businesses up and down the country and tapping into a multi-billion pound industry to make the UK a clean energy superpower and deliver the government’s Plan for Change.

Future of Roads Minister, Lilian Greenwood, said:

From van drivers and businesses, to drivers with accessibility needs, bikers and cabbies, today we are making it easier, faster and cheaper for people to switch to electric vehicles.

By making the transition to zero emissions a success, we’re helping to drive growth all over the UK, putting more money in people’s pockets and rebuilding Britain to deliver our Plan for Change.

The department is also supporting taxi drivers make the switch to electric for another year, by making £4,000 available to buy an iconic zero emission black cab amongst other models, making journeys cleaner and more comfortable for passengers.

The Plug-in wheelchair accessible vehicle grant cap is also being increased from £35,000 to £50,000, giving consumers a wider choice of vehicle models and removing barriers for disabled passengers, so that they can get around more easily and with greater peace of mind.

Today is a positive day for bikers as well, who will continue to enjoy a £500 grant from government to buy an electric motorbike for another year.

Alongside this financial support, the government strengthened incentives to purchase zero emission vehicles in the Autumn Budget 2024 by maintaining generous ZEV incentives in the Company Car Tax regime.

The transition to electric continues at pace. With over 382,000 electric cars sold in 2024 – up a fifth on the previous year – there’s never been a better time to switch to EVs, with one in 3 used electric cars under £20,000 and 21 brand new electric cars RRP under £30,000.

Owning an electric car is also becoming increasingly cheaper, with drivers able to save up to £750 a year if they mostly charge at home compared to petrol.

There are now over 74,000 public chargers in the UK, with a record of nearly 20,000 added last year alone. With 24/7 helplines, contactless payments, and up-to-date chargepoint locations, charging has become easier than ever.

With £200 million announced in the budget to continue powering the chargepoint rollout and £6 billion of private investment in the pipeline, the UK’s charging network will continue to see tens of thousands of chargers added in the coming years so that EV owners can drive with the confidence that they’re never too far from a socket.

Last year saw record numbers of people making a supported switch to electric vehicles, with the UK leading Europe in sales, and growth of more than a fifth on the previous year. The government has been engaging closely with car manufacturers on how to support them to deliver the transition to electric vehicles with a consultation recently closing, which sought views from industry on how to deliver the manifesto commitment to restore the 2030 phase out date for new purely petrol and diesel cars.

The average range of a new electric car is now 236 miles – that’s about 2 weeks of driving for most people – all the while emitting just one-third of the greenhouse emissions of a petrol car during its lifetime.

Roads media enquiries

Media enquiries 0300 7777 878

Switchboard 0300 330 3000

Published 25 February 2025

MIL OSI United Kingdom –

February 25, 2025

MIL-OSI: Archrock Reports Fourth Quarter and Full Year 2024 Results and Provides 2025 Guidance

Source: GlobeNewswire (MIL-OSI)

HOUSTON, Feb. 24, 2025 (GLOBE NEWSWIRE) — Archrock, Inc. (NYSE: AROC) (“Archrock”) today reported results for the fourth quarter and full year 2024.

Fourth Quarter and Full Year 2024 Highlights

Revenue for the fourth quarter of 2024 was $326.4 million compared to $259.6 million in the fourth quarter of 2023. Revenue for 2024 was $1,157.6 million compared to $990.3 million in 2023.
Net income for the fourth quarter of 2024 was $59.8 million and EPS was $0.34, compared to $33.0 million and $0.21, respectively, in the fourth quarter of 2023. Net income for 2024 was $172.2 million and EPS was $1.05, compared to $105.0 million and $0.67, respectively, in 2023.
Adjusted net income (a non-GAAP measure defined below) for the fourth quarter of 2024 was $61.5 million and adjusted EPS (a non-GAAP measure defined below) was $0.35, compared to $33.0 million and $0.21, respectively, in the fourth quarter of 2023. Adjusted net income for 2024 was $185.2 million and adjusted EPS was $1.13 compared to $105.0 million and $0.67, respectively, in 2023.
Adjusted EBITDA (a non-GAAP measure defined below) for the fourth quarter of 2024 was $183.8 million compared to $120.3 million in the fourth quarter of 2023. Adjusted EBITDA for 2024 was $595.4 million compared to $450.4 million in 2023.
Declared a quarterly dividend of $0.19 per common share for the fourth quarter of 2024, approximately 15% higher compared to the fourth quarter of 2023, resulting in dividend coverage of 3.5x.

Management Commentary and Outlook

“Archrock’s outstanding fourth quarter performance rounded out a record-setting year of robust utilization and profitability,” said Brad Childers, Archrock’s President and Chief Executive Officer. “For 2024, we increased our contract operations adjusted gross margin by 500 basis points, improved our net income by over 60% and grew our adjusted EBITDA by more than 30% year over year. We maintained a prudent balance sheet, ending the year with a leverage ratio of 3.3x, and returned $124 million in capital to our shareholders through dividends and share buybacks. We achieved these milestones while concurrently completing a transformative acquisition that established our leadership position in electric motor drive compression.

“We are even more excited about what we are positioned to deliver in 2025. Archrock continues to perform at an exceptional level, reflecting consistent operational execution and the successful progression of our strategic initiatives. Our investment in high-quality assets, excellent customer service and implementation of innovative technology and processes are driving value for our customers and our shareholders.

“Moreover, we see the market opportunities provided by rising energy demand, and in particular, the natural gas required to support growing LNG exports and power generation, continuing into the foreseeable future. With sustained high utilization levels and a large and contracted backlog for 2025, we are booking units for 2026 delivery and believe we will continue to see strong customer demand for new equipment well into next year.

“This impressive and durable investment outlook for Archrock is further underpinned by our financial flexibility and returns-based capital allocation. We are investing in profitable, high-return growth in large midstream and electric motor drive compression to support our high-quality customers in premier, primarily associated gas, plays like the Permian. We also remain committed to consistent growth in shareholder returns and started the year with a 15% year-over-year increase to our quarterly dividend per share, while maintaining prudent dividend coverage and leverage ratios,” concluded Childers.

Fourth Quarter and Full Year 2024 Financial Results

Archrock’s fourth quarter 2024 net income of $59.8 million included a non-cash long-lived and other asset impairment of $1.2 million, transaction-related costs totaling $2.2 million and a non-cash unrealized decrease in the fair value of our investment in an unconsolidated affiliate of $1.5 million. Archrock’s fourth quarter 2023 net income of $33.0 million included a non-cash long-lived and other asset impairment of $3.7 million and a non-cash unrealized increase in the fair value of our investment in an unconsolidated affiliate of $1.0 million.

Fourth quarter 2024 selling, general, and administrative expenses of $42.2 million compared to $33.0 million for the fourth quarter of 2023 primarily reflect the increase in stock price throughout the year, which drove higher long-term incentive compensation, as well as other increases in performance-based short-term and long-term incentive compensation expense given the outperformance relative to earlier expectations in 2024.

Adjusted EBITDA for the fourth quarter of 2024 and 2023 included $12.7 million and $2.2 million, respectively, in net gains related to the sale of compression and other assets.

Archrock’s full year 2024 net income of $172.2 million included the following items: transaction-related costs totaling $13.2 million, a non-cash long-lived and other asset impairment of $10.7 million, a debt extinguishment loss of $3.2 million, and a non-cash unrealized decrease in the fair value of our investment in an unconsolidated affiliate of $1.5 million. Archrock’s full year 2023 net income of $105.0 million included the following items: a non-cash long-lived and other asset impairment of $12.0 million, restructuring charges of $1.8 million and a non-cash unrealized decrease in the fair value of our investment in an unconsolidated affiliate of $1.0 million.

Adjusted EBITDA for the full year 2024 and 2023 included $17.9 million and $10.2 million, respectively, in net gains related to the sale of compression and other assets.

Contract Operations

For the fourth quarter of 2024, contract operations segment revenue totaled $286.5 million, an increase of 34% compared to $213.0 million in the fourth quarter of 2023. Adjusted gross margin for the fourth quarter of 2024 was $200.2 million, up 46% from $137.1 million. Adjusted gross margin percentage for the fourth quarter of 2024 was 70%, compared to 64% in the fourth quarter of 2023. Total operating horsepower at the end of the fourth quarter of 2024 was 4.2 million compared to 3.6 million at the end of the fourth quarter of 2023. Utilization at the end of the fourth quarter of 2024 was 96%, consistent with the fourth quarter of 2023.

Aftermarket Services

For the fourth quarter of 2024, aftermarket services segment revenue totaled $40.0 million, compared to $46.6 million in the fourth quarter of 2023 due to seasonal delay in service activity. Adjusted gross margin for the fourth quarter of 2024 was $9.1 million, compared to $10.2 million in the fourth quarter of 2023. Adjusted gross margin percentage for the fourth quarter of 2024 was 23%, compared to 22% for the fourth quarter of 2023.

Balance Sheet

Long-term debt was $2.2 billion and our available liquidity totaled $688 million at December 31, 2024. Our leverage ratio was 3.3x as of December 31, 2024, down from 3.5x as of December 31, 2023.

Quarterly Dividend

Our Board of Directors recently declared a quarterly dividend of $0.19 per share of common stock, or $0.70 per share on an annualized basis for the year ended December 31, 2024. Dividend coverage in the fourth quarter of 2024 was 3.5x. The fourth quarter 2024 dividend was paid on February 19, 2025 to stockholders of record at the close of business on February 12, 2025.

2025 Annual Guidance

(in thousands, except percentages, per share amounts, and ratios)

	Full Year 2025 Guidance
		Low			High
Net income^{(1) (2)}	$	253,000		$	293,000
Adjusted EBITDA⁽³⁾		750,000			790,000
Cash available for dividend^{(4) (5)}		456,000			471,000

Segment
Contract operations revenue	$	1,200,000		$	1,235,000
Contract operations adjusted gross margin percentage		68	%		71	%
Aftermarket services revenue	$	190,000		$	210,000
Aftermarket services adjusted gross margin percentage		22	%		24	%

Selling, general and administrative	$	147,000		$	142,000

Capital expenditures
Growth capital expenditures	$	330,000		$	370,000
Maintenance capital expenditures		105,000			115,000
Other capital expenditures		35,000			50,000
__________________________________
⁽¹⁾ 2025 annual guidance for net income does not include the impact of long-lived and other asset impairment because due to its nature, it cannot be accurately forecasted. Long-lived and other asset impairment does not impact adjusted EBITDA or cash available for dividend, however it is a reconciling item between these measures and net income. Long-lived and other asset impairment for the years 2024 and 2023 was $10.7 million and $12.0 million, respectively.
⁽²⁾ Reflects an estimate of expenses to be incurred related to the acquisition of Total Operations and Production Services, LLC (the “TOPS Acquisition”).
⁽³⁾ Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.
⁽⁴⁾ Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.
⁽⁵⁾ A forward-looking estimate of cash provided by operating activities is not provided because certain items necessary to estimate cash provided by operating activities, including changes in assets and liabilities, are not estimable at this time. Changes in assets and liabilities were $(25.8) million and $(28.0) million for the years 2024 and 2023, respectively.

Summary Metrics

(in thousands, except percentages, per share amounts and ratios)

	Three Months Ended										Year Ended
	December 31,			September 30,				December 31,			December 31,				December 31,
	2024			2024				2023			2024				2023
Net income	$	59,758		$	37,516			$	33,002		$	172,231			$	104,998
Adjusted net income ⁽¹⁾	$	61,533		$	47,313			$	33,002		$	185,211			$	104,998
Adjusted EBITDA ⁽¹⁾	$	183,844		$	150,854			$	120,263		$	595,434			$	450,387

Contract operations revenue	$	286,466		$	245,420			$	213,022		$	980,405			$	809,439
Contract operations adjusted gross margin	$	200,245		$	165,610			$	137,062		$	657,353			$	502,691
Contract operations adjusted gross margin percentage		70	%		67		%		64	%		67		%		62		%

Aftermarket services revenue	$	39,950		$	46,741			$	46,571		$	177,186			$	180,898
Aftermarket services adjusted gross margin	$	9,054		$	12,346			$	10,239		$	41,737			$	38,627
Aftermarket services adjusted gross margin percentage		23	%		26		%		22	%		24		%		21		%

Selling, general, and administrative	$	42,234		$	34,059			$	33,007		$	139,121			$	116,639

Net cash provided by operating activities	$	124,338		$	96,900			$	71,719			429,591				310,187
Cash available for dividend⁽¹⁾	$	118,089		$	92,887			$	71,484		$	364,595			$	232,979
Cash available for dividend coverage ⁽²⁾		3.5	x		3.0		x		2.8	x		3.1		x		2.4		x

Adjusted free cash flow ^{(1) (3)}	$	68,945		$	(834,282	)		$	47,385			(730,472	)			77,696
Adjusted free cash flow after dividend ^{(1) (3)}	$	38,255		$	(862,147	)		$	23,195			(840,846	)			(18,100	)

Total available horsepower (at period end) ⁽⁴⁾		4,401			4,418				3,759			4,401				3,759
Total operating horsepower (at period end) ⁽⁵⁾		4,227			4,179				3,607			4,227				3,607
Horsepower utilization spot (at period end) ⁽⁶⁾		96	%		95		%		96	%		96		%		96		%
__________________________________
⁽¹⁾ Management believes adjusted net income, adjusted EBITDA, cash available for dividend, adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.
⁽²⁾ Defined as cash available for dividend divided by dividends declared for the period.
⁽³⁾ Reflects $866.2 million cash paid in TOPS Acquisition, net of cash acquired.
⁽⁴⁾ Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us.
⁽⁵⁾ Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue.
⁽⁶⁾ Defined as total available horsepower divided by total operating horsepower at period end.

Conference Call Details

Archrock will host a conference call on February 25, 2025, to discuss fourth quarter and full year 2024 financial results. The call will begin at 9:00 a.m. Eastern Time.

To listen to the call via a live webcast, please visit Archrock’s website at www.archrock.com. The call will also be available by dialing 1 (800) 715-9871 in the United States or 1 (646) 307-1963 for international calls. The access code is 4749623.

A replay of the webcast will be available on Archrock’s website for 90 days following the event.

Adjusted net income, a non-GAAP measure, is defined as net income (loss) excluding transaction-related costs and debt extinguishment loss adjusted for income taxes. A reconciliation of adjusted net income to net income, the most directly comparable GAAP measure, and a reconciliation of adjusted earnings per share to basic and diluted earnings per common share, the most directly comparable GAAP measure, appear below.

Adjusted EBITDA, a non-GAAP measure, is defined as net income (loss) excluding interest expense, income taxes, depreciation and amortization, long-lived and other asset impairment, unrealized change in fair value of investment in unconsolidated affiliate, restructuring charges, debt extinguishment loss, transaction-related costs, non-cash stock-based compensation expense, amortization of capitalized implementation costs and other items. A reconciliation of adjusted EBITDA to net income, the most directly comparable GAAP measure, and a reconciliation of our full year 2025 adjusted EBITDA guidance to net income appear below.

Adjusted gross margin, a non-GAAP measure, is defined as revenue less cost of sales, exclusive of depreciation and amortization. Adjusted gross margin percentage, a non-GAAP measure, is defined as adjusted gross margin divided by revenue. A reconciliation of adjusted gross margin to net income, the most directly comparable GAAP measure, and a reconciliation of adjusted gross margin percentage to gross margin appear below.

Cash available for dividend, a non-GAAP measure, is defined as net income (loss) excluding interest expense, income taxes, depreciation and amortization, long-lived and other asset impairment, unrealized change in fair value of investment in unconsolidated affiliate, restructuring charges, debt extinguishment loss, transaction-related costs, non-cash stock-based compensation expense, amortization of capitalized implementation costs and other items, less maintenance capital expenditures, other capital expenditures, cash taxes and cash interest expense. Reconciliations of cash available for dividend to net income and net cash provided by operating activities, the most directly comparable GAAP measures, and a reconciliation of our full year 2025 cash available for dividend guidance to net income appear below.

Adjusted free cash flow, a non-GAAP measure, is defined as net cash provided by operating activities plus net cash provided by (used in) investing activities. A reconciliation of adjusted free cash flow to net cash provided by operating activities, the most directly comparable GAAP measure, appears below.

Adjusted free cash flow after dividend, a non-GAAP measure, is defined as net cash provided by operating activities plus net cash provided by (used in) investing activities less dividends paid to stockholders. A reconciliation of adjusted free cash flow after dividend to net cash provided by operating activities, the most directly comparable GAAP measure, appears below.

About Archrock

Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how Archrock embodies its purpose, WE POWER A CLEANER AMERICA, visit www.archrock.com.

Forward–Looking Statements

All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Archrock. Forward-looking information includes, but is not limited to statements regarding: guidance or estimates related to Archrock’s results of operations or of financial condition; fundamentals of Archrock’s industry, including the attractiveness of returns and valuation, stability of cash flows, demand dynamics and overall outlook, and Archrock’s ability to realize the benefits thereof; Archrock’s expectations regarding future economic, geopolitical and market conditions and trends; Archrock’s operational and financial strategies, including planned growth, coverage and leverage reduction strategies, Archrock’s ability to successfully effect those strategies, and the expected results therefrom; Archrock’s financial and operational outlook; demand and growth opportunities for Archrock’s services; structural and process improvement initiatives, the expected timing thereof, Archrock’s ability to successfully effect those initiatives and the expected results therefrom; the operational and financial synergies provided by Archrock’s size; statements regarding Archrock’s dividend policy; the expected benefits of the TOPS Acquisition, including its expected accretion and the expected impact on Archrock’s leverage ratio; and plans and objectives of management for future operations.

While Archrock believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: risks related to macroeconomic conditions, including an increase in inflation and trade tensions; pandemics and other public health crises; ongoing international conflicts and tensions; risks related to our operations; competitive pressures; risks of acquisitions to reduce our ability to make distributions to our common stockholders; inability to make acquisitions on economically acceptable terms; risks related to our sustainability initiatives; uncertainty to pay dividends in the future; risks related to a substantial amount of debt and our debt agreements; inability to access the capital and credit markets or borrow on affordable terms to obtain additional capital; inability to fund purchases of additional compression equipment; vulnerability to interest rate increases; erosion of the financial condition of our customers; risks related to the loss of our most significant customers; uncertainty of the renewals for our contract operations service agreements; risks related to losing management or operational personnel; dependence on particular suppliers and vulnerability to product shortages and price increases; information technology and cybersecurity risks; tax-related risks; legal and regulatory risks, including climate-related and environmental, social and governance risks.

These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock’s Annual Report on Form 10-K for the year ended December 31, 2024, Archrock’s Quarterly Report on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024 and those set forth from time to time in Archrock’s filings with the Securities and Exchange Commission, which are available at www.archrock.com. Except as required by law, Archrock expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

SOURCE: Archrock, Inc.

For information, contact:

Megan Repine
VP of Investor Relations
281-836-8360
investor.relations@archrock.com


Archrock, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2024			2024			2023			2024			2023
Revenue:
Contract operations	$	286,466		$	245,420		$	213,022		$	980,405		$	809,439
Aftermarket services		39,950			46,741			46,571			177,186			180,898
Total revenue		326,416			292,161			259,593			1,157,591			990,337

Cost of sales, exclusive of depreciation and amortization
Contract operations		86,221			79,810			75,960			323,052			306,748
Aftermarket services		30,896			34,395			36,332			135,449			142,271
Total cost of sales, exclusive of depreciation and amortization		117,117			114,205			112,292			458,501			449,019

Selling, general and administrative		42,234			34,059			33,007			139,121			116,639
Depreciation and amortization		58,129			48,377			42,695			193,194			166,241
Long-lived and other asset impairment		1,203			2,509			3,658			10,681			12,041
Restructuring charges		—			—			221			—			1,775
Debt extinguishment loss		—			3,181			—			3,181			—
Interest expense		38,238			30,179			27,938			123,610			111,488
Transaction-related costs		2,247			9,220			—			13,249			—
Gain on sale of assets, net		(12,712	)		(2,218	)		(2,181	)		(17,887	)		(10,199	)
Other (income) expense, net		1,598			(304	)		(745	)		1,561			1,086
Income before income taxes		78,362			52,953			42,708			232,380			142,247
Provision for income taxes		18,604			15,437			9,706			60,149			37,249
Net income	$	59,758		$	37,516		$	33,002		$	172,231		$	104,998

Basic and diluted net income per common share ⁽¹⁾	$	0.34		$	0.22		$	0.21		$	1.05		$	0.67

Weighted-average common shares outstanding:
Basic		173,451			165,847			153,879			162,037			154,126
Diluted		173,848			166,173			154,177			162,375			154,344
__________________________________
⁽¹⁾ Basic and diluted net income per common share is computed using the two-class method to determine the net income per share for each class of common stock and participating security (restricted stock and stock-settled restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income attributable to participating securities from our calculation of basic and diluted net income per common share.

Archrock, Inc.
Unaudited Supplemental Information
(in thousands, except percentages, per share amounts and ratios)

	Three Months Ended													Year Ended
	December 31,				September 30,				December 31,				December 31,				December 31,
	2024				2024				2023				2024				2023
Revenue:
Contract operations	$	286,466			$	245,420			$	213,022			$	980,405			$	809,439
Aftermarket services		39,950				46,741				46,571				177,186				180,898
Total revenue	$	326,416			$	292,161			$	259,593			$	1,157,591			$	990,337

Adjusted gross margin:
Contract operations	$	200,245			$	165,610			$	137,062			$	657,353			$	502,691
Aftermarket services		9,054				12,346				10,239				41,737				38,627
Total adjusted gross margin ⁽¹⁾	$	209,299			$	177,956			$	147,301			$	699,090			$	541,318

Adjusted gross margin percentage:
Contract operations		70		%		67		%		64		%		67		%		62		%
Aftermarket services		23		%		26		%		22		%		24		%		21		%
Total adjusted gross margin percentage ⁽¹⁾		64		%		61		%		57		%		60		%		55		%

Selling, general and administrative	$	42,234			$	34,059			$	33,007			$	139,121			$	116,639
% of revenue		13		%		12		%		13		%		12		%		12		%

Adjusted EBITDA ⁽¹⁾	$	183,844			$	150,854			$	120,263			$	595,434			$	450,387
% of revenue		56		%		52		%		46		%		51		%		45		%

Capital expenditures	$	97,988			$	70,018			$	36,655			$	359,032			$	298,632
Proceeds from sale of property, plant and equipment and other assets		(43,387	)			(6,654	)			(17,543	)			(67,591	)			(72,206	)
Net capital expenditures	$	54,601			$	63,364			$	19,112			$	291,441			$	226,426

Total available horsepower (at period end) ⁽²⁾		4,401				4,418				3,759				4,401				3,759
Total operating horsepower (at period end) ⁽³⁾		4,227				4,179				3,607				4,227				3,607
Average operating horsepower		4,205				3,757				3,607				3,794				3,554
Horsepower utilization:
Spot (at period end) ⁽⁴⁾		96		%		95		%		96		%		96		%		96		%
Average ⁽⁴⁾		95		%		95		%		96		%		95		%		95		%

Dividend declared for the period per share	$	0.190			$	0.175			$	0.165			$	0.695			$	0.625
Dividend declared for the period to all stockholders	$	33,487			$	30,656			$	25,913			$	117,861			$	97,857
Cash available for dividend coverage ⁽⁵⁾		3.5		x		3.0		x		2.8		x		3.1		x		2.4		x

Adjusted free cash flow ^{(1) (6)}	$	68,945			$	(834,282	)		$	47,385			$	(730,472	)		$	77,696
Adjusted free cash flow after dividend ⁽¹⁾⁽⁶⁾	$	38,255			$	(862,147	)		$	23,195			$	(840,846	)		$	(18,100	)
__________________________________
⁽¹⁾ Management believes adjusted gross margin, adjusted EBITDA, adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.
⁽²⁾ Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us.
⁽³⁾ Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue.
⁽⁴⁾ Defined as total available horsepower divided by total operating horsepower at period end (spot) or over time (average).
⁽⁵⁾ Defined as cash available for dividend divided by dividends declared for the period.
⁽⁶⁾ Reflects $866.2 million cash paid in TOPS Acquisition, net of cash acquired.

	December 31,		September 30,		December 31,
	2024		2024		2023
Balance Sheet
Long-term debt ⁽¹⁾	$	2,198,376	$	2,236,131	$	1,584,869
Total equity		1,323,531		1,290,736		871,021
__________________________________
⁽¹⁾ Carrying values are shown net of unamortized premium and deferred financing costs.

Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Net Income to Adjusted Net Income and Earnings Per Share to Adjusted Earnings Per Share
(in thousands, except per share amounts)

	Three Months Ended								Year Ended
	December 31,			September 30,			December 31,		December 31,			December 31,
	2024			2024			2023		2024			2023
Net income	$	59,758		$	37,516		$	33,002	$	172,231		$	104,998
Transaction-related costs		2,247			9,220			—		13,249			—
Debt extinguishment loss		—			3,181			—		3,181			—
Tax effect of adjustments ⁽¹⁾		(472	)		(2,604	)		—		(3,450	)		—
Adjusted net income ⁽²⁾	$	61,533		$	47,313		$	33,002	$	185,211		$	104,998

Weighted-average common shares outstanding used in diluted earnings per common share		173,451			166,173			154,401		162,037			154,344

Basic and diluted earnings per common share ⁽³⁾	$	0.34		$	0.22		$	0.21		1.05			0.67
Transaction-related costs per share		0.01			0.06			—		0.08			—
Debt extinguishment loss per share		—			0.02			—		0.02			—
Tax effect of adjustments per share		(0.00	)		(0.02	)		—		(0.02	)		—
Adjusted earnings per share ⁽²⁾	$	0.35		$	0.28		$	0.21	$	1.13		$	0.67
__________________________________
⁽¹⁾ Represents tax effect of transaction-related costs and debt extinguishment loss based on statutory tax rate.
⁽²⁾ Management believes adjusted net income and adjusted earnings per share provides useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review our current period operating performance, comparability measure and performance measure for period-to-period comparisons without burdened earnings and earnings per share for non-recurring transactional costs.
⁽³⁾ Basic and diluted net income per common share is computed using the two-class method to determine the net income per share for each class of common stock and participating security (restricted stock and stock-settled restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income attributable to participating securities from our calculation of basic and diluted net income per common share.

Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Net Income to Adjusted EBITDA and Adjusted Gross Margin
(in thousands)

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2024			2024			2023			2024			2023
Net income	$	59,758		$	37,516		$	33,002		$	172,231		$	104,998
Depreciation and amortization		58,129			48,377			42,695			193,194			166,241
Long-lived and other asset impairment		1,203			2,509			3,658			10,681			12,041
Unrealized change in fair value of investment in unconsolidated affiliate		1,484			—			(1,023	)		1,484			973
Restructuring charges		—						221			—			1,775
Debt extinguishment loss		—			3,181			—			3,181			—
Interest expense		38,238			30,179			27,938			123,610			111,488
Transaction-related costs		2,247			9,220			—			13,249			—
Stock-based compensation expense		3,431			3,738			3,283			14,646			12,998
Amortization of capitalized implementation costs		750			697			783			3,009			2,624
Provision for income taxes		18,604			15,437			9,706			60,149			37,249
Adjusted EBITDA ⁽¹⁾		183,844			150,854			120,263			595,434			450,387
Selling, general and administrative		42,234			34,059			33,007			139,121			116,639
Stock-based compensation expense		(3,431	)		(3,738	)		(3,283	)		(14,646	)		(12,998	)
Amortization of capitalized implementation costs		(750	)		(697	)		(783	)		(3,009	)		(2,624	)
Gain on sale of assets, net		(12,712	)		(2,218	)		(2,181	)		(17,887	)		(10,199	)
Other (income) expense, net		1,598			(304	)		(745	)		1,561			1,086
Adjusted gross margin ⁽¹⁾	$	209,299		$	177,956		$	147,301		$	699,090		$	541,318
__________________________________
⁽¹⁾ Management believes adjusted EBITDA and adjusted gross margin provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Total Revenue to Adjusted Gross Margin
(in thousands)

	Three Months Ended															Year Ended
	December 31,					September 30,					December 31,					December 31,					December 31,
	2024					2024					2023					2024					2023
Total revenues	$	326,416				$	292,161				$	259,593				$	1,157,591				$	990,337
Cost of sales, exclusive of depreciation and amortization		(117,117	)				(114,205	)				(112,292	)				(458,501	)				(449,019	)
Depreciation and amortization		(58,129	)				(48,377	)				(42,695	)				(193,194	)				(166,241	)
Gross margin		151,170		46	%		129,579		44	%		104,606		40	%		505,896		44	%		375,077		38	%
Depreciation and amortization		58,129					48,377					42,695					193,194					166,241
Adjusted gross margin ⁽¹⁾	$	209,299		64	%	$	177,956		61	%	$	147,301		57	%	$	699,090		60	%		541,318		55	%
__________________________________
⁽¹⁾ Management believes adjusted gross margin provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend
(in thousands)

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2024			2024			2023			2024			2023
Net income	$	59,758		$	37,516		$	33,002		$	172,231		$	104,998
Depreciation and amortization		58,129			48,377			42,695			193,194			166,241
Long-lived and other asset impairment		1,203			2,509			3,658			10,681			12,041
Unrealized change in fair value of investment in unconsolidated affiliate		1,484			—			(1,023	)		1,484			973
Restructuring charges		—			—			221			—			1,775
Debt extinguishment loss		—			3,181			—			3,181			—
Interest expense		38,238			30,179			27,938			123,610			111,488
Transaction-related costs		2,247			9,220			—			13,249
Stock-based compensation expense		3,431			3,738			3,283			14,646			12,998
Amortization of capitalized implementation costs		750			697			783			3,009			2,624
Provision for income taxes		18,604			15,437			9,706			60,149			37,249
Adjusted EBITDA ⁽¹⁾		183,844			150,854			120,263			595,434			450,387
Less: Maintenance capital expenditures		(21,623	)		(21,190	)		(18,156	)		(87,753	)		(92,168	)
Less: Other capital expenditures		(7,023	)		(6,945	)		(3,193	)		(20,333	)		(16,164	)
Less: Cash tax (payment) refund		134			(404	)		(120	)		(2,209	)		(1,311	)
Less: Cash interest expense		(37,243	)		(29,428	)		(27,310	)		(120,544	)		(107,765	)
Cash available for dividend ⁽²⁾	$	118,089		$	92,887		$	71,484		$	364,595		$	232,979
__________________________________
⁽¹⁾ Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.
⁽²⁾ Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.

Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Net Cash Provided by Operating Activities to Cash Available for Dividend
(in thousands)

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2024			2024			2023			2024			2023
Net cash provided by operating activities	$	124,338		$	96,900		$	71,719		$	429,591		$	310,187
Inventory write-downs		18			(51	)		(164	)		(550	)		(545	)
Provision for credit losses		(286	)		(90	)		(458	)		(381	)		(224	)
Gain on sale of assets, net		12,712			2,218			2,181			17,887			10,199
Current income tax (benefit) provision		997			(146	)		459			2,059			1,591
Cash tax (payment) refund		134			(404	)		(120	)		(2,209	)		(1,311	)
Amortization of operating lease ROU assets		(1,063	)		(962	)		(831	)		(3,852	)		(3,319	)
Amortization of contract costs		(6,106	)		(6,046	)		(5,653	)		(23,877	)		(21,289	)
Deferred revenue recognized in earnings		5,294			4,101			5,421			15,001			16,464
Cash restructuring charges		—			—			211			—			1,554
Transaction-related costs		2,247			9,220			—			13,249			—
Changes in assets and liabilities		8,450			16,282			20,068			25,763			28,004
Maintenance capital expenditures		(21,623	)		(21,190	)		(18,156	)		(87,753	)		(92,168	)
Other capital expenditures		(7,023	)		(6,945	)		(3,193	)		(20,333	)		(16,164	)
Cash available for dividend ⁽¹⁾	$	118,089		$	92,887		$	71,484		$	364,595		$	232,979
__________________________________
⁽¹⁾ Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.

Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Net Cash Provided By Operating Activities to Adjusted Free Cash Flow
and Adjusted Free Cash Flow After Dividend
(in thousands)

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2024			2024			2023			2024			2023
Net cash provided by operating activities	$	124,338		$	96,900		$	71,719		$	429,591		$	310,187
Net cash used in investing activities ⁽¹⁾		(55,393	)		(931,182	)		(24,334	)		(1,160,063	)		(232,491	)
Adjusted free cash flow ^{(1) (2)}		68,945			(834,282	)		47,385			(730,472	)		77,696
Dividends paid to stockholders		(30,690	)		(27,865	)		(24,190	)		(110,374	)		(95,796	)
Adjusted free cash flow after dividend ^{(1) (2)}	$	38,255		$	(862,147	)	$	23,195		$	(840,846	)	$	(18,100	)
__________________________________
⁽¹⁾ Reflects $866.2 million cash paid in TOPS Acquisition, net of cash acquired.
⁽²⁾ Management believes adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend Guidance
(in thousands)

	Annual Guidance Range
	2025
	Low			High
Net income ⁽¹⁾	$	253,000		$	293,000
Interest expense		153,000			153,000
Provision for income taxes		101,000			101,000
Depreciation and amortization		219,000			219,000
Stock-based compensation expense		15,000			15,000
Amortization of capitalized implementation costs		4,000			4,000
Transaction-related costs ⁽²⁾		5,000			5,000
Adjusted EBITDA ⁽³⁾		750,000			790,000
Less: Maintenance capital expenditures		(105,000	)		(115,000	)
Less: Other capital expenditures		(35,000	)		(50,000	)
Less: Cash tax expense		(7,000	)		(7,000	)
Less: Cash interest expense		(147,000	)		(147,000	)
Cash available for dividend ⁽⁴⁾⁽⁵⁾	$	456,000		$	471,000
__________________________________
⁽¹⁾ 2025 annual guidance for net income does not include the impact of long-lived and other asset impairment because due to its nature, it cannot be accurately forecasted. Long-lived and other asset impairment does not impact Adjusted EBITDA or cash available for dividend, however it is a reconciling item between these measures and net income. Long-lived and other asset impairment for the years 2024 and 2023 was $10.7 million and $12.0 million, respectively.
⁽²⁾ Reflects an estimate of expenses to be incurred related to the TOPS acquisition.
⁽³⁾ Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.
⁽⁴⁾ Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.
⁽⁵⁾ A forward-looking estimate of cash provided by operating activities is not provided because certain items necessary to estimate cash provided by operating activities, including changes in assets and liabilities, are not estimable at this time. Changes in assets and liabilities were $(25.8) million and $(28.0) million for the years 2024 and 2023, respectively.

The MIL Network –

February 25, 2025

MIL-OSI USA: SCHUYLKILL COUNTY – Governor Shapiro to Visit Child Care Center to Highlight Proposed Investments to Recruit and Retain Child Care Workers, Expand Access to Quality Services

Source: US State of Pennsylvania

February 25, 2025 – Pottsville, PA

ADVISORY – SCHUYLKILL COUNTY – Governor Shapiro to Visit Child Care Center to Highlight Proposed Investments to Recruit and Retain Child Care Workers, Expand Access to Quality Services

Governor Josh Shapiro will visit The Perception Training Center to talk about the major investments in workforce development in his 2025-26 Budget Proposal and his plans for expanding Pennsylvania’s child care workforce and making child care more affordable.

During his first two years in office, Governor Shapiro signed into law a historic expansion of the Child and Dependent Care Enhancement Tax Credit and created a new tax credit for businesses who want to contribute to their employees’ child care costs. Those two initiatives helped make child care more affordable – and the Governor’s proposal this year would make child care more available through an investment of $55 million to support child care workforce recruitment and retention grants.

WHO:
Governor Josh Shapiro
Senator David Argall
Representative Tim Twardzik
Michelle Dallago, Owner and Executive Director of Perception Early Learning, Inc.
Bob Carl, President and CEO of the Schuylkill Chamber of Commerce
Meridith Driscoll, Parent

WHEN:
TOMORROW, Tuesday, February 25, 2025 at 10:15AM

WHERE:
The Perception Training Center, Inc.
1265 Laurel Boulevard,
Pottsville, PA 17901

LIVE STREAM:
pacast.com/live/gov
governor.pa.gov/live/

RSVP:
Press who are interested in attending must RSVP with the names and phone numbers for each member of their team to ra-gvgovpress@pa.gov.

MIL OSI USA News –

February 25, 2025

MIL-OSI New Zealand: Results – Port Marlborough reports strong half year performance for 2025

Source: Port Marlborough

Port Marlborough has filed its Half Year Report for the first half of the 2025 financial year, highlighting positive progress across its key focus areas: people, planet, prosperity, and partnerships.

The port continues to invest in workforce capability, with new marine cadetships, internal promotions, and leadership development programmes supporting career progression and workplace culture. Critical risk and fatigue risk management measures have been implemented, and the port’s strong focus on the Hauora (Health, Safety and Wellbeing) of all people in its workplaces remains a priority.

Environmental progress has also been a standout, with Marlborough Sounds Marinas becoming the first in New Zealand to achieve International Clean Marina accreditation, recognising high standards in marine biosecurity and environmental management. Across operations, 82% of waste has been diverted from landfill, and habitat restoration efforts continue, with thousands of native plants established in key areas.

Revenue has increased by 13% compared to the same period last year, driven by strong trade performance and increased uptake of berthage at Waikawa North West Marina. Forestry trade has grown by 18%, supported by the completion of the South Island’s first on-port debarking facility, in partnership with Pedersen Group and C3.

Port Marlborough Chief Executive Rhys Welbourn said the results reflect the company’s focus on sustainable growth and long-term investment.

“These results show the benefits of our continued investment in infrastructure, environmental initiatives, and workforce capability. We are seeing strong performance across key trade areas, our marinas remain in high demand, and our sustainability initiatives are delivering measurable outcomes. The International Clean Marina accreditation is a milestone achievement and highlights how seriously we take the importance of marine biosecurity across our operations.

“As we move into the second half of the financial year, we remain committed to delivering value for Marlborough, supporting and facilitating Marlborough’s key trades, and ensuring that our investment decisions contribute to the long-term success of the region.”

Port Marlborough’s partnerships with industry, iwi, and regional stakeholders remain a key focus, including hosting the launch of the Protect Our Paradise national biosecurity campaign and delivering community sponsorships that support local initiatives.The 2025 Half Year Report can be found here: LINK: https://portmarlborough.co.nz/strong-half-year-performance-for-2025/

MIL OSI New Zealand News –

February 25, 2025

MIL-OSI USA: SBA Administrator Loeffler Issues Memo on Day One Priorities

Source: United States Small Business Administration

WASHINGTON — Following her confirmation and swearing-in as the 28th Administrator of the U.S. Small Business Administration, Kelly Loeffler issued a Day One memo outlining her top priorities for the agency.

“Small businesses are the backbone of our nation, driving innovation, job creation, and prosperity – and there’s no stronger advocate for small business than President Trump or myself. But over the last four years, the SBA has burdened entrepreneurs with bureaucracy – with its programs becoming mired in fraud, waste, and abuse,” SBA Administrator Loeffler said. “That changes today. My first priority is rebuilding the SBA into an America First engine for free enterprise – by empowering small businesses and fueling economic growth.

“From day one, we will uphold the highest standards of accountability, performance, and integrity, where taxpayer dollars will be safeguarded, not squandered. We will streamline operations, drive efficiency, and ensure programs deliver real results. It’s a new day at the SBA, and I’m honored to lead a team that is committed to serving America’s job creators and citizens when disaster strikes.”

The following priorities have been distributed to all SBA staff as the agency prepares to carry out President Trump’s America First agenda and empower small businesses to thrive:

Supporting President Trump’s America First Agenda

Promoting “Made in America” with U.S. manufacturing: The vast majority of America’s manufacturers are small businesses, and SBA programs have powered tens of thousands of them. This agency is committed to supporting the America First agenda by rebuilding American supply chains and investing in manufacturing to strengthen our economy and national security. The agency will transform its Office of International Trade into the Office of Manufacturing and Trade – which will focus on promoting economic independence, job creation, and fair trade practices to power the next blue-collar boom. SBA will also partner across agencies to scale innovative manufacturing and technology startups that will help our nation return to “Made in America.”
Implementing President Trump’s executive orders: SBA will enforce all of President Trump’s executive orders including Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government, Ending Radical and Wasteful Government DEI Programs and Preferencing and Unleashing American Energy. To date, SBA has already taken the following actions:
- Eliminated the Office of Diversity, Equity, Inclusion, and Accessibility, placing DEIA employees on administrative leave.
- Paused grants across the agency that do not comply with President Trump’s executive orders.
- Paused the Green Lender Initiative to reverse the previous Administration’s favoritism for Green New Deal ventures that did not support America’s return to energy dominance.
Supporting the Department of Government Efficiency: SBA will continue working closely with President Trump’s DOGE as the federal government moves into a new era of accountability, transparency, and efficiency. SBA will prioritize eliminating fraud and waste within the agency, to ensure American taxpayer dollars are utilized in the most productive way possible to benefit small businesses and economic growth and resilience.
Mandating full-time, in-office work for SBA employees: Pursuant to President Trump’s Return to In-Person Work presidential memorandum, SBA will require all employees, unless exempt, to return to their respective duty stations five days a week as of today, Monday, Feb. 24, 2025.
Prioritizing workforce optimization: As part of the broader effort to support President Trump’s workforce optimization initiatives, SBA will continue to evaluate workforce reduction measures, including the overhaul of all advisory boards, to ensure the agency is operating with maximum efficiency to deliver results for U.S. taxpayers, small businesses, and those affected by disaster.
Cracking down on fraud: SBA’s loan programs should be a powerful tool for empowering small business formation and delivering critical aid to disaster victims. The prior Administration left these programs with unaddressed fraud – including an estimated $200 billion in pandemic-era fraud. Starting today, the SBA will institute a zero-tolerance policy for fraud and investigate fraud across all programs. The agency has established a Fraud Working Group and will appoint a Fraud Czar to identify, stop, and claw back criminally obtained funds on behalf of American taxpayers – working across agencies to prevent fraud.

Eliminating Wasteful Spending and Cracking Down on Fraud

Conducting an agency-wide financial audit: As fraud has risen, so too have delinquencies, defaults, and charge-offs on loan programs, exacerbated by the previous Administration’s lax loan underwriting, servicing, and collection efforts. As a result, SBA has not satisfactorily completed a financial audit for several consecutive years. Therefore, the agency will request an independent audit of its financials to address mismanagement, restore the credibility of financial statements, and preserve the solvency of public-private programs like the 7(a) lending program and the Small Business Investment Company program, which are designed to drive economic growth without taxpayer subsidy.
Protecting the solvency of loan programs and restoring underwriting standards: Likewise, SBA will review all options to protect the solvency of its lending programs, including revising practices that have jeopardized the zero-subsidy status of programs like 7(a). The agency will also restart its dormant collections programs effective immediately. Furthermore, SBA will restore its underwriting standards, ensuring taxpayer dollars only go to supporting eligible small businesses across America – by conducting a full review of current lending SOPs, ending the “Do What You Do” standard for lending, and enhancing oversight of non-bank lenders.
Banning illegal aliens from receiving SBA assistance: Programs funded by American citizens should only benefit American citizens. Consistent with President Trump’s Ending Taxpayer Subsidization of Open Borders executive order, the agency will implement a policy banning illegal aliens from receiving any taxpayer-funded assistance from SBA – putting U.S. citizens and America first.
Restricting hostile foreign nationals from accessing SBA assistance: Similarly, in the interest of national security, the agency will implement measures to prevent hostile foreign nationals, especially those with ties to the Chinese Communist Party, from accessing SBA assistance.

Empowering Small Businesses

Creating a strike force to cut regulation: For the first time in years, SBA will fully staff and empower the Office of Advocacy to utilize its power to identify and eliminate burdensome regulations promulgated by all federal agencies, as authorized by the Regulatory Flexibility Act, Small Business Regulatory Enforcement Fairness Act of 1996, the Congressional Review Act, and other statutes. The Administrator will work alongside the Chief Counsel for Advocacy to cut past and future regulations across the board and partner with all federal agencies to ensure they are working to reduce bureaucracy and costs for job creators and promote successful business formation.
Improving SBA customer service, technology, and cybersecurity: Respecting that small businesses must perform for their customers, the SBA must meet performance standards across our own operations. Working with DOGE, the SBA will review the agency’s multiple digital interfaces. To streamline and improve user experience across all platforms, the agency will also review its technology for cybersecurity, response times, and customer satisfaction – including by collaborating with the White House on the application of artificial intelligence.
Promoting fair competition by returning 8(a) contracting goals to statutory levels: The previous Administration increased the 8(a) federal contracting goal for Small Disadvantaged Businesses to an all-time high of 15%. This action unfairly tipped the scales against any small business that did not qualify as “disadvantaged,” negatively impacting many veteran-owned small businesses. As part of a broader effort to support competition and equal access to federal contracting for all small business owners, SBA has returned the 8(a) SDB contracting goal to its statutory level of 5%.
Relocating regional offices out of sanctuary cities: To better serve Main Streets across America, especially in rural areas, SBA will relocate regional offices currently based in sanctuary cities to less costly, more accessible locations in communities that comply with federal immigration law. Additionally, Administrator Loeffler commits to personally visiting SBA’s regional offices and district offices – to facilitate a continuous dialogue with small business owners and hear directly from local job creators about real-world challenges and opportunities to support growth and innovation.
Ending partisan voter registration activities: The SBA will end all taxpayer-funded voter registration activities – starting by rescinding the agency’s 2024 Memorandum of Understanding with the Michigan Secretary of State’s office, which forced SBA district offices to conduct partisan voter registration on behalf of the previous Administration. Instead, the agency will return its focus to its founding mission of empowering job creators, delivering disaster relief, and driving economic growth.

# # #

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

MIL OSI USA News –

February 25, 2025

MIL-OSI: BlackRock® Canada Announces Final February Cash Distributions for the iShares® Premium Money Market ETF

Source: GlobeNewswire (MIL-OSI)

TORONTO, Feb. 24, 2025 (GLOBE NEWSWIRE) — BlackRock Asset Management Canada Limited (“BlackRock Canada”), an indirect, wholly-owned subsidiary of BlackRock, Inc. (NYSE: BLK), today announced the final February 2025 cash distributions for the iShares Premium Money Market ETF. Unitholders of record on February 25, 2025 will receive cash distributions payable on February 28, 2025.

Details regarding the final “per unit” distribution amounts are as follows:

Fund Name	Fund Ticker	Cash Distribution Per Unit
iShares Premium Money Market ETF	CMR	$0.123

Further information on the iShares ETFs can be found at http://www.blackrock.com/ca.

About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @BlackRockCA

About iShares ETFs
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1500+ exchange traded funds (ETFs) and US$4.2 trillion in assets under management as of December 31, 2024, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.

iShares^® ETFs are managed by BlackRock Asset Management Canada Limited.

Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares ETFs. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.

Contact for Media:
Sydney Punchard
Email: Sydney.Punchard@blackrock.com

The MIL Network –

February 25, 2025

MIL-OSI United Kingdom: Council agrees extra funding for vital care services in 2025/26 budget

Source: City of Plymouth

An annual budget that injects more than £30 million of additional funding to meet ongoing cost and demand pressures in essential social care and homelessness services has been agreed by Plymouth City Council.

The additional funds have been included in the £253.4 million revenue budget for 2025/26 approved by at the Full Council meeting on Monday (24 February).

Council Leader Tudor Evans said: “Despite the huge financial challenges we continue to face, we have not only managed to balance the books but also delivered a budget that remains hugely ambitious for growing Plymouth’s prosperity and delivering what Plymouth residents say matters most – creating jobs, more affordable housing, improving health, increasing safety and most importantly, supporting the elderly and protecting the most vulnerable children in Plymouth.

“It is also a budget that protects and enhances valued services such as libraries, grass cutting, street cleansing and repairing our roads and pavements.

“This is a budget that allow Plymouth to continue to do remarkable things in difficult circumstances.”

The additional funding includes £16 million additional funding for protecting vulnerable children, £2 million for school transport for children with a Special Education Needs and Disability (SEND), £12 million for adult social care and £724,000 to support the homeless.

An extra £770,000 has also been allocated to help reduce the Education Health and Care Plan (EHCP) waiting list.

The additional funding means that 83 per centof the Council’s total revenue budget is now spent on social care services.

The 2025/26 budget also maintains a £300,000 uplift in the grass cutting budget and an additional £425,000 to increase the staff resource in the Street Services team, which manages grass cutting, street cleansing and waste collection services.

It also includes an additional £250,000 to support funding the Council’s Net Zero commitment, an extra £141,000 to support the Council’s leisure provider Plymouth Active Leisure and £226,000 to support foster carers with an additional allowance.

To deliver a balanced budget the Council needs to continue to transform how it operates to increase efficiency and reduce cost. The agreed budget requires that a total of £9.6 million savings need to be delivered by all Council departments.

They include £3.1 million of savings plans through the ongoing transformation of Children’s Services and £2.7 million of savings in the Adults, Health and Communities directorate through its modernisation plans and contract savings.

To support the budget a Council Tax increase of 2.99 per cent and a two per cent precept to support adult social care services was agreed.

The full council also agreed a capital programme of £395.8 million for 2024/25 to 2028/29.

This includes funding for the transport improvement schemes, such as the Woolwell to The George scheme; the rail station regeneration scheme; investment in housing projects and tackling homelessness; projects delivering the city’s net zero ambitions; introducing zero emission buses; delivering Plymouth and South Devon Freeport, the Armada Way regeneration scheme; highway maintenance, drainage and essential engineering projects; and the regeneration of key waterfront assets such as Tinside Lido through the Plymouth Sound National Marine Park.

MIL OSI United Kingdom –

February 25, 2025

MIL-OSI USA: H.R. 1156, Pandemic Unemployment Fraud Enforcement Act

Source: US Congressional Budget Office

Bill Summary

H.R. 1156 would extend the statute of limitations from 5 to 10 years for federal criminal prosecution and civil enforcement actions for fraud related to the temporary unemployment programs enacted during the coronavirus pandemic. Under current law, the statute of limitations for those offenses will begin to expire in March 2025. Currently, states refer unemployment insurance claims involving allegations of fraud to the Office of Inspector General (OIG) at the Department of Labor (DOL) for further investigation. That office reviews cases and refers findings to the Department of Justice (DOJ) or other entities for criminal or civil prosecution.

The bill also would rescind direct appropriations provided for program integrity activities in the American Rescue Plan Act of 2021.

Estimated Federal Cost

The estimated budgetary effect of H.R. 1156 is shown in Table 1. The costs of the legislation fall within budget functions 500 (education training, employment, and social services), 600 (income security), and 750 (administration of justice).

Table 1.

Estimated Budgetary Effects of H.R. 1156

By Fiscal Year, Millions of Dollars

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2025-2030

2025-2035

Increases or Decreases (-) in Direct Spending

Estimated Budget Authority

0

*

Estimated Outlays

-3

1

*

Increases in Spending Subject to Appropriation

Estimated Authorization

*

2

1

*

n.e.

5

n.e.

Estimated Outlays

*

2

1

*

n.e.

5

n.e.

n.e. = not estimated; * = between -$500,000 and $500,000.

CBO estimates that enacting H.R. 1156 would increase revenues by less than $500,000 over the 2025-2035 period.

Basis of Estimate

CBO assumes that the bill will be enacted in March 2025. Estimated outlays are based on historical patterns for existing and similar activities.

Direct Spending and Revenues

CBO estimates that enacting H.R. 1156 would increase net direct spending and revenues by less than $500,000 over the 2025-2035 period (see Table 2).

Table 2. Estimated Changes in Direct Spending Under H.R. 1156
	By Fiscal Year, Millions of Dollars
	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	2025-2030	2025-2035
	Increases or Decreases (-) in Direct Spending
Extend the Statute of Limitations
Estimated Budget Authority	5	*	*	*	*	*	*	*	*	*	*	5	5
Estimated Outlays	*	3	1	1	*	*	*	*	*	*	*	5	5
Rescind Funding for Program Integrity Activities
Budget Authority	-5	0	0	0	0	0	0	0	0	0	0	-5	-5
Estimated Outlays	-3	-2	0	0	0	0	0	0	0	0	0	-5	-5
Total Changes
Estimated Budget Authority	0	*	*	*	*	*	*	*	*	*	*	*	*
Estimated Outlays	-3	1	1	1	*	*	*	*	*	*	*	*	*

Extend the Statute of Limitations. Upon the enactment of H.R. 1156, CBO expects that DOL would provide additional funding to states to continue their referrals of cases to DOL and provide information about those cases to the department’s OIG and federal law enforcement agencies. Under current law, DOL has permanent authority to fund whatever amounts are necessary for those activities for pandemic-related programs. Using information from DOL, CBO estimates that under the bill the department would provide $5 million in additional funding to states, increasing direct spending by the same amount over the 2025-2035 period.

By extending the period for which DOJ could pursue prosecutions, CBO expects that H.R. 1156 would increase the collections of penalties and the recovery of additional benefits paid fraudulently in 2025 and subsequent years. That change would not affect state laws or rules governing the recovery of overpayments. Based on an analysis of data for similar offenses from the U.S. Sentencing Commission, CBO estimates that the increase in penalty collections would be insignificant. Criminal and civil fines are recorded in the budget as revenues; criminal fines are deposited into the Crime Victims Fund and spent without further appropriation. Thus, CBO estimates that enacting H.R. 1156 would increase revenues and the associated direct spending from penalty collections by less than $500,000 over the 2025-2035 period. Additionally, using information from DOL and DOJ, CBO estimates that any additional recoveries of overpaid benefits, which are recorded as reductions in direct spending, would be insignificant. The extent to which any additional recoveries would happen is highly uncertain.

Rescind Funding for Program Integrity Activities. The bill would rescind $5 million in mandatory funding provided in the American Rescue Plan Act to state unemployment insurance agencies for program integrity activities, which are undertaken to ensure that benefits are paid correctly. Using information from DOL, CBO estimates that the rescission would decrease direct spending by $5 million over the 2025-2035 period.

Spending Subject to Appropriation

CBO assumes that if the statute of limitations were extended, more potential fraud cases would be referred to the OIG, and that office would continue to investigate cases it might otherwise have dropped. Using information from the Department of Labor, CBO estimates that the OIG would require an additional $5 million over the 2025-2030 period to handle those referrals and cases. Assuming appropriation of the estimated amounts, CBO estimates that outlays for those activities would total $5 million over the same period (see Table 1).

Pay-As-You-Go Considerations

The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. CBO estimates that enacting the bill would increase direct spending by less than $500,000 over the 2025-2035 period and increase revenues by less than $500,000 in every year and over the 2025-2035 period (see Table 3).

Table 3. CBO’s Estimate of the Statutory Pay-As-You-Go Effects of H.R. 1156, the Pandemic Unemployment Fraud Enforcement Act, as Ordered Reported by the House Committee on Ways and Means on February 12, 2025
	By Fiscal Year, Millions of Dollars
	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	2025-2030	2025-2035
	Net Increase or Decrease (-) in Outlays
Pay-As-You-Go Effect	-3	1	1	1	0	0	0	0	0	0	0	0	0

Increase in Long-Term Net Direct Spending and Deficits

CBO estimates that enacting H.R. 1156 would not significantly increase net direct spending in any of the four consecutive 10-year periods beginning in 2036.

CBO estimates that enacting H.R. 1156 would not significantly increase on‑budget deficits in any of the four consecutive 10-year periods beginning in 2036.

Mandates

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.

Mandates: Erich Dvorak

Estimate Reviewed By

Elizabeth Cove Delisle
Chief, Income Security Cost Estimates Unit

Justin Humphrey
Chief, Finance, Housing, and Education Cost Estimates Unit

Kathleen FitzGerald
Chief, Public and Private Mandates Unit

Christina Hawley Anthony
Deputy Director of Budget Analysis

H. Samuel Papenfuss
Deputy Director of Budget Analysis

Phillip L. Swagel

Director, Congressional Budget Office

MIL OSI USA News –

February 25, 2025

MIL-OSI: Zoom Communications Reports Fourth Quarter and Fiscal Year 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Fourth quarter total revenue of $1,184.1 million, up 3.3% year over year as reported and 3.6% in constant currency; full fiscal year total revenue of $4,665.4 million, up 3.1% year over year as reported and 3.3% in constant currency
Fourth quarter Enterprise revenue of $706.8 million, up 5.9% year over year; full fiscal year Enterprise revenue of $2,754.2 million, up 5.2% year over year
Fourth quarter operating cash flow of $424.6 million, up 20.9% year over year; full fiscal year operating cash flow of $1,945.3 million, up 21.7% year over year; full fiscal year operating cash flow margin of 41.7%
Fourth quarter GAAP operating margin of 19.0%, up 430 bps year over year, and non-GAAP operating margin of 39.5%, up 80 bps year over year; full fiscal year GAAP operating margin of 17.4%, up 580 bps year over year, and non-GAAP operating margin of 39.4%, up 20 bps year over year
Number of customers contributing more than $100,000 in trailing 12 months revenue up 7.3% year over year
Repurchased approximately 4.3 million shares of common stock in fourth quarter and approximately 15.9 million shares of common stock during full fiscal year

SAN JOSE, Calif., Feb. 24, 2025 (GLOBE NEWSWIRE) — Zoom Communications, Inc. (NASDAQ: ZM), an AI-first work platform for human connection, today announced financial results for the fourth quarter and fiscal year ended January 31, 2025.

“In FY25, Zoom AI Companion emerged as the driving force behind our transformation into an AI-first company, enabling our customers to discover enhanced productivity opportunities. As Zoom AI Companion becomes increasingly agentic, we look forward to continuing to help our customers fully realize the benefits of AI and discover what’s possible with AI agents,” said Eric S. Yuan, Zoom’s founder and CEO. “Both Contact Center and Workvivo had incredible years capped by excellent Q4s in terms of strategic logo wins, upmarket momentum and broader customer growth. As we rapidly innovated for our customers, we delivered a robust 5.8-point expansion in FY25 GAAP operating margin driven by increased focus on prioritizing investments and controlling share-based compensation, and grew FY25 operating cash flow 21.7% year over year to nearly $2 billion, representing an operating cash flow margin of 41.7%.”

Fourth Quarter Fiscal Year 2025 Financial Highlights:

Revenue: Total revenue for the fourth quarter was $1,184.1 million, up 3.3% year over year. After adjusting for foreign currency impact, revenue in constant currency was $1,188.0 million, up 3.6% year over year. Enterprise revenue was $706.8 million, up 5.9% year over year, and Online revenue was $477.3 million, down 0.4% year over year.
Income from Operations and Operating Margin: GAAP income from operations for the fourth quarter was $225.1 million, compared to GAAP income from operations of $168.5 million in the fourth quarter of fiscal year 2024. Non-GAAP income from operations, which adjusts for stock-based compensation expense and related payroll taxes, and acquisition-related expenses, was $468.0 million for the fourth quarter, compared to non-GAAP income from operations of $443.7 million in the fourth quarter of fiscal year 2024. For the fourth quarter, GAAP and non-GAAP operating margin was 19.0% and 39.5%, respectively, up from 14.7% and 38.7%, respectively, in the fourth quarter of fiscal year 2024.
Net Income and Diluted Net Income Per Share: GAAP net income for the fourth quarter was $367.9 million, or $1.16 per share, compared to GAAP net income of $298.8 million, or $0.95 per share in the fourth quarter of fiscal year 2024.
Non-GAAP net income, which adjusts for stock-based compensation expense and related payroll taxes, gains on strategic investments, net, acquisition-related expenses, and the tax effects on non-GAAP adjustments, was $446.9 million for the fourth quarter. Non-GAAP net income per share was $1.41 in the fourth quarter. In the fourth quarter of fiscal year 2024, non-GAAP net income was $444.0 million, or $1.42 per share.

Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of January 31, 2025 was $7.8 billion.
Cash Flow: Net cash provided by operating activities was $424.6 million for the fourth quarter, compared to $351.2 million in the fourth quarter of fiscal year 2024, up 20.9% year over year. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $416.2 million in the fourth quarter, compared to $332.7 million in the fourth quarter of fiscal year 2024, up 25.1% year over year.

Full Fiscal Year 2025 Financial Highlights:

Revenue: Total revenue for the fiscal year was $4,665.4 million, up 3.1% year over year. After adjusting for foreign currency impact, revenue in constant currency was $4,675.0 million, up 3.3% year over year. Enterprise revenue was $2,754.2 million, up 5.2% year over year, and Online revenue was $1,911.2 million, up 0.2% year over year.
Income from Operations and Operating Margin: GAAP income from operations for the fiscal year was $813.3 million, compared to GAAP income from operations of $525.3 million for fiscal year 2024. Non-GAAP income from operations, which adjusts for stock-based compensation expense and related payroll taxes, litigation settlements, net, and acquisition-related expenses, was $1,837.9 million for the fiscal year, compared to non-GAAP income from operations of $1,774.9 million for fiscal year 2024. For the fiscal year, GAAP and non-GAAP operating margin was 17.4% and 39.4% respectively, up from 11.6% and 39.2%, respectively, in the fourth quarter of fiscal year 2024.
Net Income and Diluted Net Income Per Share: GAAP net income for the fiscal year was $1,010.2 million, or $3.21 per share, compared to GAAP net income of $637.5 million, or $2.07 per share for fiscal year 2024.
Non-GAAP net income, which adjusts for stock-based compensation expense and related payroll taxes, litigation settlements, net, gains on strategic investments, net, acquisition-related expenses, and the tax effects on non-GAAP adjustments, was $1,744.8 million for the fiscal year. Non-GAAP net income per share was $5.54. In fiscal year 2024, non-GAAP net income was $1,608.0 million, or $5.21 per share.

Cash Flow: Net cash provided by operating activities was $1,945.3 million for the fiscal year, compared to $1,598.8 million for fiscal year 2024 up 21.7% year over year. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $1,808.7 million, compared to $1,471.9 million for fiscal year 2024, up 22.9% year over year.

Customer Metrics: Drivers of revenue included acquiring new customers and expanding across existing customers. At the end of the fourth quarter of fiscal year 2025, Zoom had:

Approximately 192,600 Enterprise customers.
A trailing 12-month net dollar expansion rate for Enterprise customers of 98%.
4,088 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 7.3% from the same quarter last fiscal year.
Online average monthly churn of 2.8% for the fourth quarter, down 20 bps from the same quarter last fiscal year.
At the end of the fourth quarter, the percentage of total Online MRR from Online customers with a continual term of service of at least 16 months was 75.1%, up 90 bps year over year.

As Zoom continues to expand and evolve, we have seen an increasing overlap between our Enterprise and Online customer categories. Over time, customers with lower MRR are expected to move from Enterprise to Online as we optimize our sales strategies. While these moves do not have a material impact on other customer metrics, the number of customers between these two groups has become less meaningful as a customer metric. Therefore, beginning in the first quarter of fiscal year 2026, we will no longer report the number of Enterprise customers as a customer metric. However, we will continue to provide this metric in the appendix of our investor deck through the end of fiscal year 2026, which will be accessible on our investor relations website (investors.zoom.us).

Financial Outlook: Zoom is providing the following guidance for its first quarter of fiscal year 2026 and its full fiscal year 2026.

First Quarter Fiscal Year 2026: Total revenue is expected to be between $1.162 billion and $1.167 billion and revenue in constant currency is expected to be between $1.168 billion and $1.173 billion. Non-GAAP income from operations is expected to be between $440.0 million and $445.0 million. First quarter non-GAAP diluted EPS is expected to be between $1.29 and $1.31 with approximately 316 million non-GAAP weighted average shares outstanding.
Full Fiscal Year 2026: Total revenue is expected to be between $4.785 billion and $4.795 billion and revenue in constant currency is expected to be between $4.803 billion and $4.813 billion. Non-GAAP income from operations is expected to be between $1.850 billion and $1.860 billion. Full fiscal year non-GAAP diluted EPS is expected to be between $5.34 and $5.37 with approximately 318 million non-GAAP weighted average shares outstanding. Full fiscal year free cash flow is expected to be between $1.680 billion and $1.720 billion.

The EPS and share count figures do not include any impact from $1.6 billion of authorized share repurchase remaining as of January 31, 2025.

Additional information on Zoom’s reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Zoom’s results computed in accordance with GAAP.

A supplemental financial presentation and other information can be accessed through Zoom’s investor relations website at investors.zoom.us.

Zoom Video Earnings Call

Zoom will host a Zoom Video Webinar for investors on February 24, 2025 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss the company’s financial results, business highlights and financial outlook. Investors are invited to join the Zoom Video Webinar by visiting: https://investors.zoom.us/

About Zoom

Zoom’s mission is to provide an AI-first platform for human connection. Reimagine teamwork with Zoom Workplace — Zoom’s open collaboration platform with AI Companion empowers teams to be more productive. Together with Zoom Workplace, Zoom’s Business Services for sales, marketing, and customer care teams, including Zoom Contact Center, strengthen customer relationships throughout the customer lifecycle. Founded in 2011, Zoom is publicly traded (NASDAQ:ZM) and headquartered in San Jose, California. Get more information at zoom.com.

Forward-Looking Statements

This press release contains express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Zoom’s financial outlook for the first quarter of fiscal year 2026 and full fiscal year 2026, Zoom’s market position, opportunities, and growth strategy, product initiatives, including future product and feature releases and the potential of agentic AI, and go-to-market motions and the expected benefits resulting from the same, market trends, and Zoom’s stock repurchase program. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “target,” “explore,” “continue,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the statements, including: declines in new customers, renewals or upgrades, or decline in demand for our platform, difficulties in evaluating our prospects and future results of operations given our limited operating history, competition from other providers of communications platforms, the effect of macroeconomic conditions on our business, including tariffs and trade tensions, inflationary pressures and market volatility, lengthened sales cycles with large organizations, delays or outages in services from our co-located data centers, failures in internet infrastructure or interference with broadband access, compromised security measures, including ours and those of the third parties upon which we rely, and global security concerns and their potential impact on regional and global economies and supply chains. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our most recent filings with the Securities and Exchange Commission (the “SEC”), including our quarterly report on Form 10-Q for the fiscal quarter ended October 31, 2024. Forward-looking statements speak only as of the date the statements are made and are based on information available to Zoom at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Zoom assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Non-GAAP Financial Measures

Zoom has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Zoom uses these non-GAAP financial measures internally in analyzing its financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing Zoom’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with Zoom’s condensed consolidated financial statements prepared in accordance with GAAP. A reconciliation of Zoom’s historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

Non-GAAP Income from Operations and Non-GAAP Operating Margin. Zoom defines non-GAAP income from operations as income from operations excluding stock-based compensation expense and related payroll taxes, acquisition-related expenses, restructuring expenses, and litigation settlements, net. Zoom excludes stock-based compensation expense because it is non-cash in nature and excluding this expense provides meaningful supplemental information regarding Zoom’s operational performance and allows investors the ability to make more meaningful comparisons between Zoom’s operating results and those of other companies. Zoom excludes the amount of employer payroll taxes related to employee stock plans, which is a cash expense, in order for investors to see the full effect that excluding stock-based compensation expense had on Zoom’s operating results. In particular, this expense is dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of the business. Zoom views acquisition-related expenses when applicable, such as amortization of acquired intangible assets, transaction costs, and acquisition-related retention payments that are directly related to business combinations as events that are not necessarily reflective of operational performance during a period. Restructuring expenses are expenses associated with a formal restructuring plan and may include employee notice period costs, severance payments, and other related expenses. Zoom excludes these restructuring expenses because they are distinct from ongoing operational costs and Zoom does not believe they are reflective of current and expected future business performance and operating results. Zoom excludes significant litigation settlements, net of amounts covered by insurance, that we deem not to be in the ordinary course of our business. In fact, Zoom believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods that may or may not include such expenses and assist in the comparison with the results of other companies in the industry. Zoom defines non-GAAP operating margin as non-GAAP income from operations divided by GAAP revenue.

Non-GAAP Net Income and Non-GAAP Net Income Per Share, Basic and Diluted. Zoom defines non-GAAP net income as GAAP net income adjusted to exclude stock-based compensation expense and related payroll taxes, acquisition-related expenses, restructuring expenses, gains on strategic investments, net, litigation settlements, net, income tax benefits from discrete activities, and the tax effects of all non-GAAP adjustments. Zoom excludes these items because they are considered by management to be outside of Zoom’s core operating results. These adjustments are intended to provide investors and management with greater visibility to the underlying performance of Zoom’s business operations, facilitate comparison of its results with other periods, and may also facilitate comparison with the results of other companies in the industry. Zoom defines non-GAAP net income per share, basic and diluted, as non-GAAP net income divided by the number of shares outstanding, basic and diluted, calculated in accordance with GAAP.

Free Cash Flow and Free Cash Flow Margin. Zoom defines free cash flow as GAAP net cash provided by operating activities less purchases of property and equipment. Zoom considers free cash flow to be a liquidity measure that provides useful information to management and investors regarding net cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow the business. Zoom defines free cash flow margin as free cash flow divided by GAAP revenue.

Revenue in Constant Currency. Zoom defines revenue in constant currency as GAAP revenue adjusted for revenue reported in currencies other than United States dollars as if they were converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. Zoom provides revenue in constant currency information as a framework for assessing how Zoom’s underlying businesses performed period to period, excluding the effects of foreign currency fluctuations.

Customer Metrics

Zoom defines a customer as a separate and distinct buying entity, which can be a single paid user or an organization of any size (including a distinct unit of an organization) that has multiple users. Zoom defines Enterprise customers as distinct business units that have been engaged by either our direct sales team, resellers, or strategic partners. All other customers that subscribe to our services directly through our website are referred to as Online customers.

Zoom calculates net dollar expansion rate as of a period end by starting with the annual recurring revenue (“ARR”) from Enterprise customers as of 12 months prior (“Prior Period ARR”). Zoom defines ARR as the annualized revenue run rate of subscription agreements from all customers at a point in time. Zoom calculates ARR by taking the monthly recurring revenue (“MRR”) and multiplying it by 12. MRR is defined as the recurring revenue run-rate of subscription agreements from all Enterprise customers for the last month of the period, including revenue from monthly subscribers who have not provided any indication that they intend to cancel their subscriptions. Zoom then calculates the ARR from these Enterprise customers as of the current period end (“Current Period ARR”), which includes any upsells, contraction, and attrition. Zoom divides the Current Period ARR by the Prior Period ARR to arrive at the net dollar expansion rate. For the trailing 12 months calculation, Zoom takes an average of the net dollar expansion rate over the trailing 12 months.

Zoom calculates online average monthly churn by starting with the Online customer MRR as of the beginning of the applicable quarter (“Entry MRR”). Zoom defines Entry MRR as the recurring revenue run-rate of subscription agreements from all Online customers except for subscriptions that Zoom recorded as churn in a previous quarter based on the customers’ earlier indication to us of their intention to cancel that subscription. Zoom then determines the MRR related to customers who canceled or downgraded their subscription or notified us of that intention during the applicable quarter (“Applicable Quarter MRR Churn”) and divides the Applicable Quarter MRR Churn by the applicable quarter Entry MRR to arrive at the MRR churn rate for Online Customers for the applicable quarter. Zoom then divides that amount by three to calculate the online average monthly churn.

Public Relations

Colleen Rodriguez
Head of Global Public Relations
press@zoom.us

Investor Relations

Charles Eveslage
Head of Investor Relations
investors@zoom.us

Zoom Communications, Inc.
Consolidated Balance Sheets
(In thousands)

	As of January 31,
		2025		2024
Assets	(unaudited)
Current assets:
Cash and cash equivalents	$	1,349,380	$	1,558,252
Marketable securities		6,442,329		5,404,233
Accounts receivable, net		495,228		536,078
Deferred contract acquisition costs, current		188,358		208,474
Prepaid expenses and other current assets		200,679		219,182
Total current assets		8,675,974		7,926,219
Deferred contract acquisition costs, noncurrent		123,464		138,724
Property and equipment, net		330,475		293,704
Operating lease right-of-use assets		55,900		58,975
Strategic investments		591,481		409,222
Goodwill		307,295		307,295
Deferred tax assets		749,759		662,177
Other assets, noncurrent		154,073		133,477
Total assets	$	10,988,421	$	9,929,793
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	8,345	$	10,175
Accrued expenses and other current liabilities		558,562		500,164
Deferred revenue, current		1,336,387		1,251,848
Total current liabilities		1,903,294		1,762,187
Deferred revenue, noncurrent		17,274		18,514
Operating lease liabilities, noncurrent		37,406		48,308
Other liabilities, noncurrent		95,363		81,378
Total liabilities		2,053,337		1,910,387

Stockholders’ equity:
Common stock		305		307
Additional paid-in capital		5,130,271		5,228,756
Accumulated other comprehensive income		4,990		1,063
Retained earnings		3,799,518		2,789,280
Total stockholders’ equity		8,935,084		8,019,406
Total liabilities and stockholders’ equity	$	10,988,421	$	9,929,793

Note: The amount of unbilled accounts receivable included within accounts receivable, net on the consolidated balance sheets was $118.5 million and $124.8 million as of January 31, 2025 and 2024, respectively.

Zoom Communications, Inc.
Consolidated Statements of Operations
(Unaudited, in thousands, except share and per share amounts)

	Three Months Ended January 31,				Year Ended January 31,
		2025		2024		2025		2024
Revenue	$	1,184,138	$	1,146,457	$	4,665,433	$	4,527,224
Cost of revenue		287,355		276,307		1,129,627		1,077,801
Gross profit		896,783		870,150		3,535,806		3,449,423
Operating expenses:
Research and development		217,121		205,282		852,415		803,187
Sales and marketing		358,903		371,052		1,427,384		1,541,307
General and administrative		95,696		125,286		442,712		579,650
Total operating expenses		671,720		701,620		2,722,511		2,924,144
Income from operations		225,063		168,530		813,295		525,279
Gains on strategic investments, net		150,357		101,296		177,142		109,770
Other income, net		74,899		83,057		325,147		197,263
Income before provision for income taxes		450,319		352,883		1,315,584		832,312
Provision for income taxes		82,454		54,051		305,346		194,850
Net income		367,865		298,832		1,010,238		637,462

Net income per share:
Basic	$	1.20	$	0.98	$	3.28	$	2.12
Diluted	$	1.16	$	0.95	$	3.21	$	2.07
Weighted-average shares used in computing net income per share:
Basic		306,553,952		305,822,936		307,981,971		300,748,162
Diluted		316,693,346		313,467,303		315,069,582		308,519,897

Zoom Communications, Inc.
Consolidated Statements of Cash Flows
(Unaudited, in thousands)

	Three Months Ended January 31,						Year Ended January 31,
		2025			2024			2025			2024
Cash flows from operating activities:
Net income	$	367,865		$	298,832		$	1,010,238		$	637,462
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense		222,939			254,373			931,309			1,057,161
Deferred income taxes		(18,416	)		(136,735	)		(90,551	)		(116,679	)
Amortization of deferred contract acquisition costs		71,063			66,793			282,103			270,701
Gains on strategic investments, net		(150,357	)		(101,296	)		(177,142	)		(109,770	)
Depreciation and amortization		34,591			27,272			122,632			104,451
Provision for accounts receivable allowances		2,983			6,182			20,022			35,244
Unrealized foreign exchange losses (gains)		12,364			(11,022	)		17,165			12,259
Non-cash operating lease cost		6,205			5,225			24,066			21,066
Amortization of discount/premium on marketable securities		(16,871	)		(17,463	)		(71,636	)		(50,770	)
Other		630			(2,419	)		4,048			(7,670	)
Changes in operating assets and liabilities:
Accounts receivable		(47,632	)		(18,723	)		26,640			53,270
Prepaid expenses and other assets		(11,360	)		53,208			(17,114	)		(71,247	)
Deferred contract acquisition costs		(79,932	)		(68,303	)		(246,727	)		(214,657	)
Accounts payable		(1,686	)		(2,158	)		(3,133	)		(4,416	)
Accrued expenses and other liabilities		65,245			51,989			62,277			51,974
Deferred revenue		(26,253	)		(48,637	)		79,995			(46,719	)
Operating lease liabilities, net		(6,812	)		(5,893	)		(28,884	)		(22,824	)
Net cash provided by operating activities		424,566			351,225			1,945,308			1,598,836
Cash flows from investing activities:
Purchases of marketable securities		(919,938	)		(1,120,371	)		(4,622,104	)		(4,083,968	)
Maturities of marketable securities		919,856			773,341			3,610,274			3,131,419
Sales of marketable securities		—			1,191			47,482			1,191
Purchases of property and equipment		(8,334	)		(18,540	)		(136,560	)		(126,953	)
Purchases of strategic investments		(5,000	)		(17,727	)		(18,500	)		(70,527	)
Proceeds from strategic investments		8,530			62,823			13,384			170,067
Cash paid for acquisition, net of cash acquired		—			—			—			(204,918	)
Net cash used in investing activities		(4,886	)		(319,283	)		(1,106,024	)		(1,183,689	)
Cash flows from financing activities:
Cash paid for repurchases of common stock		(354,567	)		—			(1,093,878	)		—
Proceeds from issuance of common stock for employee stock purchase plan		19,745			21,584			54,008			54,097
Proceeds from exercise of stock options		867			1,859			4,619			10,195
Proceeds from employee equity transactions to be remitted (remitted) to employees and tax authorities, net		4,984			791			7,174			(4,106	)
Net cash (used in) provided by financing activities		(328,971	)		24,234			(1,028,077	)		60,186
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(12,150	)		11,077			(15,170	)		(10,196	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		78,559			67,253			(203,963	)		465,137
Cash, cash equivalents, and restricted cash—beginning of year		1,282,858			1,498,127			1,565,380			1,100,243
Cash, cash equivalents, and restricted cash—end of year	$	1,361,417		$	1,565,380		$	1,361,417		$	1,565,380

Zoom Communications, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited, in thousands, except share and per share amounts)

	Three Months Ended January 31,						Year Ended January 31,
		2025			2024			2025			2024
GAAP income from operations	$	225,063		$	168,530		$	813,295		$	525,279
Add:
Stock-based compensation expense and related payroll taxes		232,983			262,754			966,732			1,076,212
Litigation settlements, net		—			—			16,250			52,500
Acquisition-related expenses		9,916			12,465			41,618			47,904
Restructuring expenses		—			—			—			72,993
Non-GAAP income from operations	$	467,962		$	443,749		$	1,837,895		$	1,774,888
GAAP operating margin		19.0	%		14.7	%		17.4	%		11.6	%
Non-GAAP operating margin		39.5	%		38.7	%		39.4	%		39.2	%

GAAP net income	$	367,865		$	298,832		$	1,010,238		$	637,462
Add:
Stock-based compensation expense and related payroll taxes		232,983			262,754			966,732			1,076,212
Litigation settlements, net		—			—			16,250			52,500
Gains on strategic investments, net		(150,357	)		(101,296	)		(177,142	)		(109,770	)
Acquisition-related expenses		9,916			12,465			41,618			47,904
Restructuring expenses		—			—			—			72,993
Income tax benefits from discrete activities		—			(8,272	)		—			(8,272	)
Tax effects on non-GAAP adjustments		(13,461	)		(20,512	)		(112,945	)		(161,006	)
Non-GAAP net income	$	446,946		$	443,971		$	1,744,751		$	1,608,023

Net income per share – basic and diluted:
GAAP net income per share – basic	$	1.20		$	0.98		$	3.28		$	2.12
Non-GAAP net income per share – basic	$	1.46		$	1.45		$	5.67		$	5.35
GAAP net income per share – diluted	$	1.16		$	0.95		$	3.21		$	2.07
Non-GAAP net income per share – diluted	$	1.41		$	1.42		$	5.54		$	5.21

GAAP and non-GAAP weighted-average shares used to compute net income per share – basic		306,553,952			305,822,936			307,981,971			300,748,162
GAAP and non-GAAP weighted-average shares used to compute net income per share – diluted		316,693,346			313,467,303			315,069,582			308,519,897

Net cash provided by operating activities	$	424,566		$	351,225		$	1,945,308		$	1,598,836
Less: Purchases of property and equipment		(8,334	)		(18,540	)		(136,560	)		(126,953	)
Free cash flow (non-GAAP)		416,232			332,685			1,808,748			1,471,883
Net cash used in investing activities	$	(4,886	)	$	(319,283	)	$	(1,106,024	)	$	(1,183,689	)
Net cash provided by financing activities	$	(328,971	)	$	24,234		$	(1,028,077	)	$	60,186
Operating cash flow margin (GAAP)		35.9	%		30.6	%		41.7	%		35.3	%
Free cash flow margin (non-GAAP)		35.2	%		29.0	%		38.8	%		32.5	%

	Three Months Ended January 31,						Year Ended January 31,
		2025						2025
	Revenue			YoY Revenue Growth (%)			Revenue			YoY Revenue Growth (%)
GAAP revenue	$	1,184,138			3.3	%	$	4,665,433			3.1	%
Add: Constant currency impact		3,835			0.3	%		9,545			0.2	%
Revenue in constant currency (non-GAAP)	$	1,187,973			3.6	%	$	4,674,978			3.3	%

The MIL Network –

February 25, 2025

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

Source: GlobeNewswire (MIL-OSI)

MIDLAND, Texas, Feb. 24, 2025 (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 fourth quarter and full year ended December 31, 2024.

FOURTH QUARTER HIGHLIGHTS

Q4 2024 average production of 29,859 bo/d (56,109 boe/d)
Q4 2024 consolidated net income (including non-controlling interest) of $272.8 million; net income attributable to Viper of $210.1 million, or $2.04 per Class A common share; includes a one-time tax benefit of $155.9 million from the reversal of the valuation allowance against the Company’s deferred tax assets
Q4 2024 cash available for distribution to Viper’s Class A common shares (as defined and reconciled below) of $89.0 million, or $0.86 per Class A common share
As previously announced, declared Q4 2024 base cash dividend of $0.30 per Class A common share; implies a 2.5% annualized yield based on the February 21, 2025, share closing price of $48.33
As previously announced, declared Q4 2024 variable cash dividend of $0.35 per Class A common share; total base-plus-variable dividend of $0.65 per Class A common share implies a 5.4% annualized yield based on the February 21, 2025, share closing price of $48.33
Total Q4 2024 return of capital of $66.7 million, or $0.65 per Class A common share, represents 75% of cash available for distribution
381 total gross (8.1 net 100% royalty interest) horizontal wells turned to production on Viper’s acreage during Q4 2024 with an average lateral length of 10,818 feet

FULL YEAR 2024 HIGHLIGHTS

Full year 2024 average production of 27,156 bo/d (49,784 boe/d)
Received $6.2 million in lease bonus income
Full year 2024 consolidated net income (including non-controlling interest) of $603.6 million; net income attributable to Viper of $359.2 million, or $3.82 per Class A common share
Declared dividends of $2.49 per Class A common share during the full year 2024
Generated full year 2024 consolidated adjusted EBITDA (as defined and reconciled below) of $782.2 million
Proved reserves as of December 31, 2024 of 195,873 Mboe (84% PDP, 93,563 Mbo), up 9% year over year with oil up 4% from year end 2023
1,461 total gross (27.9 net 100% royalty interest) horizontal wells turned to production on Viper’s acreage during 2024 with an average lateral length of 11,381 feet

2025 OUTLOOK

As previously announced, on January 30, 2025, entered into a definitive purchase and sale agreement to acquire all of the equity interests of certain mineral and royalty interest owning subsidiaries of Diamondback in exchange for $1.0 billion of cash and approximately 69.63 million limited liability company membership interests of Viper Energy Partners LLC (“OpCo units”), along with an accompanying equal amount of Class B common stock of the Company, subject to customary closing adjustments (the “Drop Down”); expected to close in the second quarter of 2025, subject to the approval by Viper’s stockholders and clearance of other typical closing conditions
On February 14, 2025, closed the acquisition of certain mineral and royalty interests from Morita Ranches Minerals LLC in exchange for approximately $211.0 million of cash and approximately 2.40 million OpCo units (along with an accompanying equal amount of Class B common stock of the Company), subject to customary post-closing adjustments (the “Quinn Ranch Acquisition”)
Initiating average daily production guidance for Q1 2025 of 30,000 to 31,000 bo/d (54,000 to 56,000 boe/d)
Upon the assumed closing of the Drop Down during Q2 2025, expect average daily production for the balance of 2025 in the range of 47,000 to 49,000 bo/d (85,000 to 88,000) boe/d
As of December 31, 2024, there were approximately 867 gross horizontal wells in the process of active development on Viper’s acreage in which Viper expects to own an average 1.6% net royalty interest (14.1 net 100% royalty interest wells)
Approximately 1,191 gross (23.9 net 100% royalty interest) line-of-sight wells on Viper’s acreage that are not currently in the process of active development, but for which Viper has visibility to the potential of future development in coming quarters, based on Diamondback’s current completion schedule and third-party operators’ permits

“The fourth quarter concluded a landmark year for Viper. For the full year, we continued to deliver strong organic production growth on our legacy assets and successfully executed on our differentiated acquisition strategy. Looking ahead, we continue to be excited about the transformative Drop Down transaction between Viper and Diamondback that was previously announced. We look forward to working toward a timely closing of the transaction and the unmatched forward outlook Viper will be provided upon that closing,” stated Kaes Van’t Hof, Chief Executive Officer of Viper.

FINANCIAL UPDATE

Viper’s fourth quarter 2024 average unhedged realized prices were $69.91 per barrel of oil, $0.84 per Mcf of natural gas and $22.15 per barrel of natural gas liquids, resulting in a total equivalent realized price of $43.56/boe.

Viper’s fourth quarter 2024 average hedged realized prices were $69.00 per barrel of oil, $1.05 per Mcf of natural gas and $22.15 per barrel of natural gas liquids, resulting in a total equivalent realized price of $43.38/boe.

During the fourth quarter of 2024, the Company recorded total operating income of $228.7 million and consolidated net income (including non-controlling interest) of $272.8 million. During the quarter, the Company reversed the valuation allowance against its deferred tax assets as of the quarter and year ended December 31, 2024, with an accompanying $155.9 million deferred tax benefit recorded through continuing operations.

As of December 31, 2024, the Company had a cash balance of $26.9 million and total long-term debt outstanding (excluding debt issuance costs, discounts and premiums) of $1.1 billion, resulting in net debt (as defined and reconciled below) of $1.1 billion. Viper’s outstanding long-term debt as of December 31, 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 $261.0 million in borrowings on its revolving credit facility, leaving $989.0 million available for future borrowings and $1.0 billion of total liquidity.

FOURTH QUARTER 2024 CASH DIVIDEND & CAPITAL RETURN PROGRAM

As previously announced, the Board of Directors (the “Board”) of Viper Energy, Inc., declared a base dividend of $0.30 per Class A common share for the fourth quarter of 2024 payable on March 13, 2025 to Class A common shareholders of record at the close of business on March 6, 2025.

The Board also declared a variable cash dividend of $0.35 per Class A common share for the fourth quarter of 2024 payable on March 13, 2025 to Class A common shareholders of record at the close of business on March 6, 2025.

OPERATIONS UPDATE

During the fourth quarter of 2024, Viper estimates that 381 gross (8.1 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 10,818 feet. Of these 381 gross wells, Diamondback is the operator of 88 gross wells, with an average royalty interest of 6.4%, and the remaining 293 gross wells, with an average royalty interest of 0.9%, are operated by third parties.

Viper’s footprint of mineral and royalty interests was 35,671 net royalty acres as of December 31, 2024.

Our gross well information as of December 31, 2024 is as follows, unless otherwise specified:

	Diamondback Operated	Third-Party Operated	Total
Horizontal wells turned to production (fourth quarter 2024)⁽¹⁾:
Gross wells	88	293	381
Net 100% royalty interest wells	5.6	2.5	8.1
Average percent net royalty interest	6.4%	0.9%	2.1%

Horizontal wells turned to production (year ended December 31, 2024)⁽²⁾:
Gross wells	285	1,176	1,461
Net 100% royalty interest wells	16.0	11.9	27.9
Average percent net royalty interest	5.6%	1.0%	1.9%

Horizontal producing well count:
Gross wells	2,898	8,161	11,059
Net 100% royalty interest wells	156.3	104.1	260.4
Average percent net royalty interest	5.4%	1.3%	2.4%

Horizontal active development well count:
Gross wells	146	721	867
Net 100% royalty interest wells	6.0	8.1	14.1
Average percent net royalty interest	4.1%	1.1%	1.6%

Line of sight wells:
Gross wells	324	867	1,191
Net 100% royalty interest wells	10.1	13.8	23.9
Average percent net royalty interest	3.1%	1.6%	2.0%

(1) Average lateral length of 10,818 feet.
(2) Average lateral length of 11,381 feet.

The 867 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 54 gross rigs operating on Viper’s acreage, 10 of which are operated by Diamondback. The 1,191 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.

YEAR END RESERVES UPDATE

Viper’s proved oil and natural gas reserve estimates and their associated future net cash flows were prepared by Viper’s internal reservoir engineers, and audited by Ryder Scott Company, L.P., independent petroleum engineers, as of December 31, 2024. Reference prices of $75.48 per barrel of oil and natural gas liquids and $2.13 per MMbtu of natural gas were used in accordance with applicable rules of the Securities and Exchange Commission. Realized prices with applicable differentials were $75.61 per barrel of oil, $0.49 per Mcf of natural gas and $20.62 per barrel of natural gas liquids.

Proved reserves at year-end 2024 of 195,873 Mboe (93,563 Mbo) represent a 9% increase over year-end 2023 reserves. The year-end 2024 proved reserves have a PV-10 value (as defined and reconciled below) of approximately $3.7 billion and a standardized measure of discounted future net cash flows of $3.3 billion.

Proved developed reserves increased by 14% year over year to 163,865 Mboe (76,020 Mbo) as of December 31, 2024, reflecting continued horizontal development by the operators of Viper’s acreage.

Net proved reserve additions of 34,845 Mboe resulted in a reserve replacement ratio of 191% (defined as the sum of extensions, discoveries, revisions, purchases and divestitures, divided by annual production). The organic reserve replacement ratio was 121% (defined as the sum of extensions, discoveries and revisions, divided by annual production).

Extensions and discoveries of 24,936 Mboe are primarily attributable to the drilling of 1,170 new wells and from 447 new proved undeveloped locations added. The Company’s total downward revisions of previous estimated quantities of 2,894 Mboe consist of negative revisions of 6,539 Mboe associated with lower commodity prices and PUD downgrades of 2,936 Mboe offset by positive revisions of 6,580 Mboe primarily attributable to performance revisions. The purchase of reserves in place of 14,941 Mboe resulted primarily from the previously reported Tumbleweed acquisitions and other acquisitions of certain mineral and royalty interests.

	Oil (MBbls)		Gas (MMcf)		Liquids (MBbls)		Mboe
As of December 31, 2023	89,903		263,578		45,416		179,249
Purchase of reserves in place	7,891		20,310		3,665		14,941
Extensions and discoveries	13,099		33,498		6,254		24,936
Revisions of previous estimates	(6,472	)	4,449		2,837		(2,894	)
Divestitures	(919	)	(4,605	)	(451	)	(2,138	)
Production	(9,939	)	(24,606	)	(4,181	)	(18,221	)
As of December 31, 2024	93,563		292,624		53,540		195,873

As the owner of mineral and royalty interests, Viper incurred no exploration and development costs during the year ended December 31, 2024.

	December 31,
	2024		2023		2022
	(in thousands)
Acquisition costs:
Proved properties	$	340,907	$	402,659	$	46,307
Unproved properties		830,450		758,342		16,624
Total	$	1,171,357	$	1,161,001	$	62,931

GUIDANCE UPDATE

Below is Viper’s guidance for Q1 2025. Guidance for full year 2025 will be provided pending the closing of the Drop Down.


	Viper Energy, Inc.

Q1 2025 Net Production – Mbo/d	30.00 – 31.00
Q1 2025 Net Production – Mboe/d	54.00 – 56.00

Unit costs ($/boe)
Depletion	$12.25 – $12.75
Cash G&A	$0.80 – $1.00
Non-Cash Share-Based Compensation	$0.10 – $0.20
Net Interest Expense	$2.50 – $3.00

Production and Ad Valorem Taxes (% of Revenue)	~7%
Cash Tax Rate (% of Pre-Tax Income Attributable to Viper Energy, Inc.)⁽¹⁾	20% – 22%
Q1 2025 Cash Taxes ($ – million)⁽²⁾	$15.0 – $20.0

(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 fourth quarter of 2024 on Tuesday, February 25, 2025 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 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 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 pending Drop Down 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, 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.
Consolidated Balance Sheets
(unaudited, in thousands, except share amounts)

	December 31,
	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	26,851		$	25,869
Royalty income receivable (net of allowance for credit losses)		149,234			108,681
Royalty income receivable—related party		30,971			3,329
Income tax receivable		2,238			813
Derivative instruments		17,638			358
Prepaid expenses and other current assets		11,112			4,467
Total current assets		238,044			143,517
Property:
Oil and natural gas interests, full cost method of accounting ($2,179,837 and $1,769,341 excluded from depletion at December 31, 2024 and December 31, 2023, respectively)		5,712,671			4,628,983
Land		5,688			5,688
Accumulated depletion and impairment		(1,080,764	)		(866,352	)
Property, net		4,637,595			3,768,319
Derivative instruments		—			92
Deferred income taxes (net of allowances)		185,235			56,656
Other assets		8,166			5,509
Total assets	$	5,069,040		$	3,974,093
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	85		$	19
Accounts payable—related party		1,980			1,330
Accrued liabilities		42,272			27,021
Derivative instruments		2,323			2,961
Income taxes payable		2,034			1,925
Total current liabilities		48,694			33,256
Long-term debt, net		1,082,979			1,083,082
Derivative instruments		—			201
Other long-term liabilities		30,148			—
Total liabilities		1,161,821			1,116,539
Stockholders’ equity:
Class A Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 102,977,142 and 86,144,273 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively		—			—
Class B Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 85,431,453 and 90,709,946 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively		—			—
Additional paid-in capital		1,568,560			1,031,078
Retained earnings (accumulated deficit)		118,444			(16,786	)
Total Viper Energy, Inc. stockholders’ equity		1,687,004			1,014,292
Non-controlling interest		2,220,215			1,843,262
Total equity		3,907,219			2,857,554
Total liabilities and stockholders’ equity	$	5,069,040		$	3,974,093


Viper Energy, Inc.
Consolidated Statements of Operations
(unaudited, in thousands, except per share data)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Operating income:
Oil income	$	192,040		$	175,254		$	750,243		$	619,181
Natural gas income		6,050			7,979			14,813			30,953
Natural gas liquids income		26,775			18,981			88,520			66,976
Royalty income		224,865			202,214			853,576			717,110
Lease bonus income—related party		—			2,238			227			107,823
Lease bonus income		3,655			125			5,944			1,855
Other operating income		179			135			640			909
Total operating income		228,699			204,712			860,387			827,697
Costs and expenses:
Production and ad valorem taxes		16,162			12,607			60,882			50,401
Depletion		64,591			44,787			214,412			146,118
General and administrative expenses—related party		3,150			924			10,541			3,696
General and administrative expenses		1,388			3,027			8,100			6,907
Other operating (income) expense		58			356			55			356
Total costs and expenses		85,349			61,701			293,990			207,478
Income (loss) from operations		143,350			143,011			566,397			620,219
Other income (expense):
Interest expense, net		(19,112	)		(15,756	)		(73,848	)		(47,392	)
Gain (loss) on derivative instruments, net		6,122			4,892			11,386			(25,793	)
Other income, net		—			1			—			259
Total other expense, net		(12,990	)		(10,863	)		(62,462	)		(72,926	)
Income (loss) before income taxes		130,360			132,148			503,935			547,293
Provision for (benefit from) income taxes		(142,440	)		6,217			(99,711	)		45,952
Net income (loss)		272,800			125,931			603,646			501,341
Net income (loss) attributable to non-controlling interest		62,733			68,959			244,401			301,253
Net income (loss) attributable to Viper Energy, Inc.	$	210,067		$	56,972		$	359,245		$	200,088

Net income (loss) attributable to common shares:
Basic	$	2.04		$	0.70		$	3.82		$	2.69
Diluted	$	2.04		$	0.70		$	3.82		$	2.69
Weighted average number of common shares outstanding:
Basic		102,977			81,219			93,932			74,176
Diluted		102,977			81,219			93,932			74,176


Viper Energy, Inc.
Consolidated Statements of Cash Flows
(unaudited, in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Cash flows from operating activities:
Net income (loss)	$	272,800		$	125,931		$	603,646		$	501,341
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for (benefit from) deferred income taxes		(148,580	)		(7,887	)		(149,085	)		(7,000	)
Depletion		64,591			44,787			214,412			146,118
(Gain) loss on derivative instruments, net		(6,122	)		(4,892	)		(11,386	)		25,793
Net cash receipts (payments) on derivatives		(940	)		(3,300	)		(2,978	)		(13,319	)
Other		1,727			1,397			6,197			3,442
Changes in operating assets and liabilities:
Royalty income receivable		(16,135	)		(5,232	)		(13,249	)		(27,379	)
Royalty income receivable—related party		5,025			4,102			(27,642	)		2,931
Accounts payable and accrued liabilities		(7,190	)		2,155			7,002			6,311
Accounts payable—related party		1,981			1,330			651			1,024
Income taxes payable		218			(11,397	)		109			1,014
Other		(9,467	)		(1,199	)		(8,069	)		(2,084	)
Net cash provided by (used in) operating activities		157,908			145,795			619,608			638,192
Cash flows from investing activities:
Acquisitions of oil and natural gas interests—related party		—			—			—			(75,073	)
Acquisitions of oil and natural gas interests		(425,190	)		(731,618	)		(696,242	)		(830,128	)
Proceeds from sale of oil and natural gas interests		(5	)		2			87,669			(3,164	)
Net cash provided by (used in) investing activities		(425,195	)		(731,616	)		(608,573	)		(908,365	)
Cash flows from financing activities:
Proceeds from borrowings under credit facility		372,000			313,000			842,000			573,000
Repayment on credit facility		(111,000	)		(300,000	)		(844,000	)		(462,000	)
Proceeds from Notes		—			400,000			—			400,000
Net proceeds from public offering		2			—			475,906			—
Proceeds from public offering to Diamondback		—			200,000			—			200,000
Repurchased shares/units under buyback program		—			(28,040	)		—			(95,221	)
Dividends/distributions to stockholders		(62,912	)		(44,596	)		(219,465	)		(128,777	)
Dividends/distributions to Diamondback		(62,386	)		(68,047	)		(254,216	)		(195,976	)
Dividends to other non-controlling interest		(7,368	)		—			(7,368	)		—
Other		(2,847	)		(7,441	)		(2,910	)		(13,163	)
Net cash provided by (used in) financing activities		125,489			464,876			(10,053	)		277,863
Net increase (decrease) in cash and cash equivalents		(141,798	)		(120,945	)		982			7,690
Cash, cash equivalents and restricted cash at beginning of period		168,649			146,814			25,869			18,179
Cash, cash equivalents and restricted cash at end of period	$	26,851		$	25,869		$	26,851		$	25,869


Viper Energy, Inc.
Selected Operating Data
(unaudited)

	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Production Data:
Oil (MBbls)		2,747		2,257		9,939		8,028
Natural gas (MMcf)		7,236		5,321		24,606		19,130
Natural gas liquids (MBbls)		1,209		884		4,181		3,108
Combined volumes (Mboe)⁽¹⁾		5,162		4,028		18,221		14,324

Average daily oil volumes (bo/d)		29,859		24,533		27,156		21,995
Average daily combined volumes (boe/d)		56,109		43,783		49,784		39,244

Average sales prices:
Oil ($/Bbl)	$	69.91	$	77.65	$	75.48	$	77.13
Natural gas ($/Mcf)	$	0.84	$	1.50	$	0.60	$	1.62
Natural gas liquids ($/Bbl)	$	22.15	$	21.47	$	21.17	$	21.55
Combined ($/boe)⁽²⁾	$	43.56	$	50.20	$	46.85	$	50.06

Oil, hedged ($/Bbl)⁽³⁾	$	69.00	$	76.56	$	74.57	$	76.05
Natural gas, hedged ($/Mcf)⁽³⁾	$	1.05	$	1.34	$	0.85	$	1.37
Natural gas liquids ($/Bbl)⁽³⁾	$	22.15	$	21.47	$	21.17	$	21.55
Combined price, hedged ($/boe)⁽³⁾	$	43.38	$	49.38	$	46.68	$	49.13

Average Costs ($/boe):
Production and ad valorem taxes	$	3.13	$	3.13	$	3.34	$	3.52
General and administrative – cash component		0.72		0.90		0.86		0.65
Total operating expense – cash	$	3.85	$	4.03	$	4.20	$	4.17

General and administrative – non-cash stock compensation expense	$	0.16	$	0.08	$	0.16	$	0.09
Interest expense, net	$	3.70	$	3.91	$	4.05	$	3.31
Depletion	$	12.51	$	11.12	$	11.77	$	10.20

(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 (as defined below) 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 December 31, 2024			Year Ended December 31, 2024
Net income (loss) attributable to Viper Energy, Inc.	$	210,067		$	359,245
Net income (loss) attributable to non-controlling interest		62,733			244,401
Net income (loss)		272,800			603,646
Interest expense, net		19,112			73,848
Non-cash share-based compensation expense		815			2,975
Depletion		64,591			214,412
Non-cash (gain) loss on derivative instruments		(7,062	)		(14,364	)
Other non-cash operating expenses		58			55
Other non-recurring expenses		—			1,314
Provision for (benefit from) income taxes		(142,440	)		(99,711	)
Consolidated Adjusted EBITDA		207,874			782,175
Less: Adjusted EBITDA attributable to non-controlling interest		100,035			371,813
Adjusted EBITDA attributable to Viper Energy, Inc.	$	107,839		$	410,362

Adjustments to reconcile Adjusted EBITDA to cash available for distribution:
Income taxes payable for the current period	$	(6,139	)	$	(49,372	)
Debt service, contractual obligations, fixed charges and reserves		(11,118	)		(39,219	)
Lease bonus income, net of tax		(1,502	)		(2,510	)
Distribution equivalent rights payments		(98	)		(393	)
Preferred distributions		(20	)		(80	)
Cash available for distribution to Viper Energy, Inc. shareholders	$	88,962		$	318,788

	Three Months Ended December 31, 2024
	Amounts		Amounts Per Common Share
Reconciliation to cash available for variable dividends:
Cash available for distribution to Viper Energy, Inc. shareholders	$	88,962	$	0.86

Return of Capital	$	66,722	$	0.65
Less:
Base dividend		30,893		0.30
Cash available for variable dividends	$	35,829	$	0.35

Total approved base and variable dividend per share			$	0.65

Class A common stock outstanding				102,977

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.’s Class A common stock.


Viper Energy, Inc.
Pre-tax income attributable to Viper Energy, Inc.
(unaudited, in thousands)

	Three Months Ended December 31, 2024
Income (loss) before income taxes	$	130,360
Less: Net income (loss) attributable to non-controlling interest		62,733
Pre-tax income attributable to Viper Energy, Inc.	$	67,627

Income taxes payable for the current period	$	6,139
Effective cash tax rate attributable to Viper Energy, Inc.		9.1	%

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 December 31, 2024
	Amounts			Amounts Per Diluted Share
Net income (loss) attributable to Viper Energy, Inc.⁽¹⁾	$	210,067		$	2.04
Net income (loss) attributable to non-controlling interest		62,733			0.61
Net income (loss)⁽¹⁾		272,800			2.65
Non-cash (gain) loss on derivative instruments, net		(7,062	)		(0.07	)
Other non-cash operating expenses		58			—
Adjusted income excluding above items⁽¹⁾		265,796			2.58
Income tax adjustment for above items		(7,653	)		(0.08	)
Adjusted net income (loss)⁽¹⁾		258,143			2.50
Less: Adjusted net income (loss) attributed to non-controlling interests		59,211			0.57
Adjusted net income (loss) attributable to Viper Energy, Inc.⁽¹⁾	$	198,932		$	1.93

Weighted average Class A common shares outstanding:
Basic					102,977
Diluted					102,977

(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 $0.4 million in earnings attributable to participating securities, and (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.


	December 31, 2024			Net Q4 Principal Borrowings/ (Repayments)		September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	(in thousands)
Total long-term debt⁽¹⁾	$	1,091,350		$	261,000	$	830,350		$	1,007,350		$	1,103,350		$	1,093,350
Cash and cash equivalents		(26,851	)				(168,649	)		(35,211	)		(20,005	)		(25,869	)
Net debt	$	1,064,499				$	661,701		$	972,139		$	1,083,345		$	1,067,481

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

PV-10

PV-10 is the Company’s estimate of the present value of the future net revenues from proved oil and natural gas reserves after deducting estimated production and ad valorem taxes, future capital costs and operating expenses, but before deducting any estimates of future income taxes. The estimated future net revenues are discounted at an annual rate of 10% to determine their “present value.” The Company believes PV-10 to be an important measure for evaluating the relative significance of its oil and natural gas properties and that the presentation of the non-GAAP financial measure of PV-10 provides useful information to investors because it is widely used by professional analysts and investors in evaluating oil and natural gas companies. Because there are many unique factors that can impact an individual company when estimating the amount of future income taxes to be paid, the Company believes the use of a pre-tax measure is valuable for evaluating the Company. The Company believes that PV-10 is a financial measure routinely used and calculated similarly by other companies in the oil and natural gas industry.

The following table reconciles the Company’s standardized measure of discounted future net cash flows, a GAAP financial measure to PV-10, a non-GAAP financial measure. PV-10 should not be considered as an alternative to the standardized measure as computed under GAAP.


(in thousands)	December 31, 2024
Standardized measure of discounted future net cash flows after taxes	$	3,319,544
Add: Present value of future income tax discounted at 10%		364,976
PV-10	$	3,684,520

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)
	Q1 2025			Q2 2025			Q3 2025			Q4 2025		FY 2026		FY 2027
Deferred Premium Puts – WTI (Cushing)		20,000			20,000			18,000			—		—		—
Strike	$	55.00		$	55.00		$	55.00		$	—	$	—	$	—
Premium	$	(1.62	)	$	(1.61	)	$	(1.60	)	$	—	$	—	$	—

	Natural Gas (Mmbtu/day, $/Mmbtu)
	Q1 2025		Q2 2025		Q3 2025		Q4 2025		FY 2026		FY 2027
Costless Collars – Henry Hub		60,000		60,000		60,000		60,000		60,000		—
Floor	$	2.50	$	2.50	$	2.50	$	2.50	$	2.75	$	—
Ceiling	$	4.93	$	4.93	$	4.93	$	4.93	$	6.64	$	—

	Natural Gas (Mmbtu/day, $/Mmbtu)
	Q1 2025			Q2 2025			Q3 2025			Q4 2025			FY 2026			FY 2027
Natural Gas Basis Swaps – Waha Hub		60,000			60,000			60,000			60,000			40,000			40,000
Swap Price	$	(0.80	)	$	(0.80	)	$	(0.80	)	$	(0.80	)	$	(1.40	)	$	(1.40	)

Investor Contact:

Chip Seale
+1 432.247.6218
cseale@viperenergy.com

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

The MIL Network –

February 25, 2025

MIL-OSI: Goosehead Insurance, Inc. Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

– Total Revenue Increased 20% for the year to $314.5 million –
– Core Revenue Grew 17% for the year to $273.7 million –
– Total Written Premium in 2024 Increased 29% to $3.8 billion –
– 2024 Net Income of $49.1 million versus $23.7 million in 2023 –
– Adjusted EBITDA in 2024 up 43% to $99.9 million –

WESTLAKE, Texas, Feb. 24, 2025 (GLOBE NEWSWIRE) — Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the fourth quarter and year ended December 31, 2024.

Fourth Quarter 2024 Highlights

Total Revenues grew 49% over the prior-year period to $93.9 million in the fourth quarter of 2024
Fourth quarter Core Revenues* of $68.0 million increased 19% over the prior-year period
Fourth quarter net income of $23.8 million improved from net income of $5.4 million a year ago. EPS of $0.60 per share increased 300% and adjusted EPS* of $0.79 per share increased 182%, over the prior-year period
Net income margin for the fourth quarter was 25%
Adjusted EBITDA* of $37.4 million increased 164% from $14.1 million in the prior-year period
Adjusted EBITDA Margin* increased 17 percentage points over the prior-year period to 40%
Total written premiums placed for the fourth quarter increased 28% over the prior-year period to $965.6 million
Policies in force grew 13% from the prior-year period to approximately 1,674,000

^*Core Revenue, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations of Core Revenue to total revenues, Adjusted EPS to basic earnings per share and Adjusted EBITDA to net income, the most directly comparable financial measures presented in accordance with GAAP, are set forth in the reconciliation table accompanying this release.

“We had an outstanding 2024 in the face of significant macro headwinds. For the full year premium growth was 29%, total revenue increased 20%, core revenue was up 17%, net income grew 107% to $49.1 million and Adjusted EBITDA grew 43% to $99.9 million, with net income margin of 16% up 700 basis points and Adjusted EBITDA Margin of 32% up 500 basis points,” stated Mark K Miller, President and CEO. “I am pleased we began to demonstrate growth re-acceleration in a number of key performance indicators including policies in force were up 13%. Our producer base is healthier than ever as franchise productivity was up 49%, coupled with franchise producer growth of 7%. Loss activity and insurance market challenges in 2024 and the start of 2025 have further highlighted the importance of appropriate personal lines coverage, as well as the value we bring to clients, agents and carriers. We are encouraged to be seeing signs of gradual improvement in the product market. I couldn’t be more excited for what lies ahead as we continue to invest in people and technology. This further expands our competitive moat as we progress on our journey to becoming the largest distributor of personal lines in the US.”

Fourth Quarter 2024 Results
For the fourth quarter of 2024, revenues were $93.9 million, an increase of 49% compared to the corresponding period in 2023. Core Revenues, a non-GAAP measure which excludes contingent commissions, initial franchise fees, interest income, and other income, were $68.0 million, a 19% increase from $56.9 million in the prior-year period. Core Revenues are the most reliable revenue stream for the Company, consisting of New Business Commissions, Agency Fees, New Business Royalty Fees, Renewal Commissions, and Renewal Royalty Fees. Core Revenue growth was primarily driven by strong client retention of 84% and rising premium rates as well as increases in both the number of corporate agents and productivity per agency. The Company grew total written premiums, which we consider to be the leading indicator of future revenue growth, by 28% in the fourth quarter compared to the corresponding period in prior year.

Total operating expenses, excluding equity-based compensation, depreciation and amortization and impairment expenses, for the fourth quarter of 2024 were $56.5 million, up 16% from $48.9 million in the prior-year period. The increase from the prior period was primarily due to increased employee compensation and benefits expenses related to investments in corporate producers, technology, and service functions. General and administrative expenses, excluding impairment, increased to $17.8 million from $14.1 million primarily due to investments in technology and systems to drive growth and continue to improve the client experience. Equity-based compensation increased to $6.9 million for the period, compared to $5.0 million a year ago. Bad debt expense of $0.6 million decreased from $1.0 million a year ago.

Net income in the fourth quarter of 2024 was $23.8 million versus net income of $5.4 million a year ago, with the improvement primarily due to strong revenue growth and expense discipline. Earnings per share and Net Income Margin for the fourth quarter of 2024 were $0.60 and 25%, respectively. Adjusted EPS for the fourth quarter of 2024, which excludes equity-based compensation and impairment expense, was $0.79 per share. Total Adjusted EBITDA was $37.4 million for the fourth quarter of 2024 compared to $14.1 million in the prior-year period. Adjusted EBITDA Margin of 40% was up 17 percentage points in the quarter.

Liquidity and Capital Resources
As of December 31, 2024, the Company had cash and cash equivalents of $58.0 million. We had an unused line of credit of $74.8 million as of December 31, 2024. Total outstanding term note payable balance was $93.1 million as of December 31, 2024.

On January 8, 2025, the Company entered into a credit agreement (the “2025 Credit Agreement”) providing for an aggregate $300 million term notes payable (the “2025 Initial Term Loan”) and $75 million revolving credit facility (the “2025 Revolving Credit Facility”). The 2025 Initial Term Loan matures on January 8, 2032 and the 2025 Revolving Credit Facility matures on January 8, 2030. This credit agreement replaces the existing Second Amended and Restated Credit Agreement, dated July 21, 2021, which was repaid with the proceeds of the 2025 Initial Term Loan and terminated.

On January 9, 2025, Goosehead Financial, LLC (“GF”) declared a special distribution of $175 million, which was paid in cash on January 31, 2025 to holders of record of LLC Units, including to GSHD, as of the close of business on January 21, 2025. The special distribution resulted in a payment of $59 million to our non-controlling interest holders. On January 9, 2025, the board of directors of the Company declared a one-time special cash dividend of $5.91 to all holders of Class A common stock of GSHD as of the close of business on January 21, 2025, which was paid in cash on January 31, 2025 for a total of $146 million. $1.22 of the special cash dividend was funded by cash received by GSHD from prior tax distributions from GF that are in excess of the corporate income taxes payable by GSHD. The remaining $4.69 of the special dividend was funded by the cash received by the Company from the special distribution by GF.

2025 Outlook
Our guidance for the full year 2025 is as follows:

Total written premiums placed are expected to be between $4.65 billion and $4.88 billion representing 22% organic growth on the low end of the range, and 28% organic growth on the high end of the range.
Total revenues are expected to be between $350 million and $385 million representing 11% organic growth on the low end of the range and 22% organic growth on the high end of the range.

Conference Call Information
Goosehead will host a conference call and webcast today at 4:30 PM ET to discuss these results.

To access the call by phone, participants should go to this link (registration link), and you will be provided with the dial in details.

In addition, a live webcast of the conference call will also be available on Goosehead’s investor relations website at http://ir.goosehead.com.

A webcast replay of the call will be available at http://ir.goosehead.com for one year following the call.

About Goosehead

Goosehead (NASDAQ: GSHD) is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services through corporate and franchise locations throughout the United States. Goosehead was founded on the premise that the consumer should be at the center of our universe and that everything we do should be directed at providing extraordinary value by offering broad product choice and a world-class service experience. Goosehead represents over 200 insurance companies that underwrite personal and commercial lines. For more information, please visit goosehead.com or goosehead.com/become-a-franchisee.

Forward-Looking Statements

This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Goosehead’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Goosehead’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “outlook” or “continue”, or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, conditions impacting insurance carriers or other parties with which Goosehead does business, the loss of one or more key executives or an inability to attract and retain qualified personnel and the failure to attract and retain highly qualified franchisees. These risks and uncertainties also include, but are not limited to, those described under the captions “1A. Risk Factors” in Goosehead’s Annual Report on Form 10-K for the year ended December 31, 2024 and in Goosehead’s other filings with the SEC, which are available free of charge on the Securities Exchange Commission’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Goosehead or to persons acting on behalf of Goosehead are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Goosehead does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

Contacts
Investor Contact:
Dan Farrell
Goosehead Insurance – VP Capital Markets
Phone: (214) 838-5290
Email: dan.farrell@goosehead.com; IR@goosehead.com

PR Contact:
Mission North for Goosehead Insurance
Email: goosehead@missionnorth.com; PR@goosehead.com

Goosehead Insurance, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Revenues:
Commissions and agency fees	$	50,277		$	27,424		$	139,059		$	116,061
Franchise revenues		43,438			35,282			174,514			143,772
Interest income		207			308			932			1,443
Total revenues		93,922			63,014			314,505			261,276
Operating Expenses:
Employee compensation and benefits		45,044			38,803			172,942			152,604
General and administrative expenses		17,833			14,092			67,069			62,111
Bad debts		556			1,009			2,901			4,361
Depreciation and amortization		2,639			2,427			10,453			9,244
Total operating expenses		66,072			56,331			253,365			228,320
Income from operations		27,850			6,683			61,140			32,956
Other Income:
Interest expense		(1,810	)		(1,511	)		(7,339	)		(6,568	)
Other income (expense)		(1,359	)		—			(7,101	)		—
Income before taxes		24,681			5,172			46,700			26,388
Tax expense (benefit)		859			(252	)		(2,413	)		2,692
Net Income		23,822			5,423			49,113			23,696
Less: net income attributable to non-controlling interests		8,968			1,803			18,688			9,556
Net Income attributable to Goosehead Insurance, Inc.	$	14,855		$	3,620		$	30,425		$	14,140
Earnings per share:
Basic	$	0.60		$	0.15		$	1.23		$	0.59
Diluted	$	0.57		$	0.14		$	1.15		$	0.55
Weighted average shares of Class A common stock outstanding:
Basic		24,562			24,688			24,657			23,929
Diluted		38,399			25,516			38,301			38,356

Goosehead Insurance, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Revenues:
Core Revenue:
Renewal Commissions⁽¹⁾	$	18,171		$	17,335		$	74,938		$	70,730
Renewal Royalty Fees⁽²⁾		34,990			27,180			138,942			107,524
New Business Commissions⁽¹⁾		5,997			5,512			24,608			23,411
New Business Royalty Fees⁽²⁾		6,725			5,349			27,122			23,168
Agency Fees⁽¹⁾		2,091			1,532			8,127			8,174
Total Core Revenue		67,974			56,908			273,737			233,007
Cost Recovery Revenue:
Initial Franchise Fees⁽²⁾		1,332			2,458			6,620			11,238
Interest Income		207			308			932			1,443
Total Cost Recovery Revenue		1,539			2,766			7,552			12,681
Ancillary Revenue:
Contingent Commissions⁽¹⁾		24,018			3,045			31,385			13,746
Other Franchise Revenues⁽²⁾		391			296			1,831			1,843
Total Ancillary Revenue		24,409			3,340			33,216			15,588
Total Revenues		93,922			63,014			314,505			261,276
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation		38,155			33,765			144,971			128,615
General and administrative expenses, excluding impairment		17,833			14,092			66,723			58,483
Bad debts		556			1,009			2,901			4,361
Total		56,544			48,866			214,594			191,459
Adjusted EBITDA		37,378			14,148			99,911			69,817
Adjusted EBITDA Margin		40	%		22	%		32	%		27	%

Interest expense		(1,810	)		(1,511	)		(7,339	)		(6,568	)
Depreciation and amortization		(2,639	)		(2,427	)		(10,453	)		(9,244	)
Tax (expense) benefit		(859	)		252			2,413			(2,692	)
Equity-based compensation		(6,889	)		(5,038	)		(27,971	)		(23,989	)
Impairment expense		—			—			(347	)		(3,628	)
Other Income (expense)		(1,359	)		—			(7,101	)		—
Net Income	$	23,822		$	5,423		$	49,113		$	23,696
Net Income Margin		25	%		9	%		16	%		9	%

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Consolidated Statements of Operations within Goosehead’s Form 10-K for the twelve months ended December 31, 2024 and 2023.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in “Franchise revenues” as shown on the Consolidated Statements of Operations within Goosehead’s Form 10-K for the twelve months ended December 31, 2024 and 2023.

Goosehead Insurance, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except par value amounts)

	December 31,
		2024		2023
Assets
Current Assets:
Cash and cash equivalents	$	54,280	$	41,956
Restricted cash		3,693		2,091
Commissions and agency fees receivable, net		31,375		12,903
Receivable from franchisees, net		11,077		9,720
Prepaid expenses		8,139		7,889
Total current assets		108,564		74,559
Receivable from franchisees, net of current portion		3,469		9,269
Property and equipment, net of accumulated depreciation		24,101		30,316
Right-of-use asset		37,420		38,406
Intangible assets, net of accumulated amortization		25,075		17,266
Deferred income taxes, net		193,478		181,209
Other assets		5,546		3,867
Total assets	$	397,653	$	354,892
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable and accrued expenses	$	22,894	$	16,398
Premiums payable		3,693		2,091
Lease liability		6,535		8,897
Contract liabilities		3,275		4,129
Note payable		10,063		9,375
Total current liabilities		46,460		40,890
Lease liability, net of current portion		54,536		57,382
Note payable, net of current portion		82,251		67,562
Contract liabilities, net of current portion		15,191		22,970
Liabilities under tax receivable agreement		160,142		149,302
Total liabilities		358,580		338,106
Total equity		39,073		16,786
Total liabilities and equity	$	397,653	$	354,892

Goosehead Insurance, Inc.
Reconciliation Non-GAAP Measures to GAAP

This release includes Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS that are not required by, nor presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). The Company refers to these measures as “non-GAAP financial measures.” The Company uses these non-GAAP financial measures when planning, monitoring and evaluating its performance and considers these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures, tax position, depreciation, amortization and certain other items that the Company believes are not representative of its core business. The Company uses Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted EPS for business planning purposes and in measuring its performance relative to that of its competitors.

These non-GAAP financial measures are defined by the Company as follows:

“Core Revenue” is a supplemental measure of our performance and includes Renewal Commissions, Renewal Royalty Fees, New Business Commissions, New Business Royalty Fees, and Agency Fees. We believe that Core Revenue is an appropriate measure of operating performance because it summarizes all of our revenues from sales of individual insurance policies.
“Cost Recovery Revenue” is a supplemental measure of our performance and includes Initial Franchise Fees and Interest Income. We believe that Cost Recovery Revenue is an appropriate measure of operating performance because it summarizes revenues that are viewed by management as cost recovery mechanisms.
“Ancillary Revenue” is a supplemental measure of our performance and includes Contingent Commissions and Other Income. We believe that Ancillary Revenue is an appropriate measure of operating performance because it summarizes revenues that are ancillary to our core business.
“Adjusted EBITDA” is a supplemental measure of the Company’s performance. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of items that do not relate to business performance. Adjusted EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation, impairment expense, and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses.
“Adjusted EBITDA Margin” is Adjusted EBITDA as defined above, divided by total revenue. Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.
“Adjusted EPS” is a supplemental measure of our performance, defined as earnings per share (the most directly comparable GAAP measure) before non-recurring or non-operating income and expenses. Adjusted EPS is a useful measure to management because it eliminates the impact of items that do not relate to business performance and helps measure our profitability on a consolidated level.

While the Company believes that these non-GAAP financial measures are useful in evaluating its business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues, net income, or earnings per share, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in the Company’s industry, may calculate such measures differently, which reduces their usefulness as comparative measures.

The following tables show a reconciliation from total revenues to Core Revenue, Cost Recovery Revenue, and Ancillary Revenue (non-GAAP basis) for the three and twelve months ended December 31, 2024 and 2023 (in thousands):

	Three Months Ended December 31,				Twelve Months Ended December 31,
		2024		2023		2024		2023
Total Revenues	$	93,922	$	63,014	$	314,505	$	261,276

Core Revenue:
Renewal Commissions⁽¹⁾	$	18,171	$	17,335	$	74,938	$	70,730
Renewal Royalty Fees⁽²⁾		34,990		27,180		138,942		107,524
New Business Commissions⁽¹⁾		5,997		5,512		24,608		23,411
New Business Royalty Fees⁽²⁾		6,725		5,349		27,122		23,168
Agency Fees⁽¹⁾		2,091		1,532		8,127		8,174
Total Core Revenue		67,974		56,908		273,737		233,007
Cost Recovery Revenue:
Initial Franchise Fees⁽²⁾		1,332		2,458		6,620		11,238
Interest Income		207		308		932		1,443
Total Cost Recovery Revenue		1,539		2,766		7,552		12,681
Ancillary Revenue:
Contingent Commissions⁽¹⁾		24,018		3,045		31,385		13,746
Other Franchise Revenues⁽²⁾		391		296		1,831		1,843
Total Ancillary Revenue		24,409		3,340		33,216		15,588
Total Revenues	$	93,922	$	63,014	$	314,505	$	261,276

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Consolidated Statements of Operations.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in “Franchise revenues” as shown on the Consolidated Statements of Operations.

The following tables show a reconciliation from net income to Adjusted EBITDA and Adjusted EBITDA Margin (non-GAAP basis) for the three and twelve months ended December 31, 2024 and 2023 (in thousands):

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Net Income	$	23,822		$	5,423		$	49,113		$	23,696
Interest expense		1,810			1,511			7,339			6,568
Depreciation and amortization		2,639			2,427			10,453			9,244
Tax expense (benefit)		859			(252	)		(2,413	)		2,692
Equity-based compensation		6,889			5,038			27,971			23,989
Impairment expense		—			—			347			3,628
Other (income) expense		1,359			—			7,101			—
Adjusted EBITDA	$	37,378		$	14,148		$	99,911		$	69,817
Net Income Margin⁽¹⁾		25	%		9	%		16	%		9	%
Adjusted EBITDA Margin⁽²⁾		40	%		22	%		32	%		27	%

(1) Net Income Margin is calculated as Net Income divided by Total Revenue ($23,822/$93,922) and ($5,423/$63,014) for the three months ended December 31, 2024 and 2023. Net Income Margin is calculated as Net Income divided by Total Revenue ($49,113/$314,505) and ($23,696/$261,276) for the twelve months ended December 31, 2024 and 2023
(2) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($37,378/$93,922), and ($14,148/$63,014) for the three months ended December 31, 2024 and 2023, respectively. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($99,911/$314,505), and ($69,817/$261,276) for the twelve months ended December 31, 2024 and 2023.

The following tables show a reconciliation from basic earnings per share to Adjusted EPS (non-GAAP basis) for the three and twelve months ended December 31, 2024 and 2023. Note that totals may not sum due to rounding:

	Three Months Ended December 31,				Twelve Months Ended December 31,
		2024		2023		2024		2023
Earnings per share – basic (GAAP)	$	0.60	$	0.15	$	1.23	$	0.59
Add: equity-based compensation⁽¹⁾		0.19		0.13		0.75		0.64
Add: impairment expense⁽²⁾		—		—		0.01		0.10
Adjusted EPS (non-GAAP)	$	0.79	$	0.28	$	1.99	$	1.33

(1) Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$6.9 million/(24.6 million + 12.7 million)] for the three months ended December 31, 2024 and [$5.0 million/ (24.7 million + 13.2 million)] for the three months ended December 31, 2023. Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$28.0 million/(24.7 million + 12.7 million)] for the twelve months ended December 31, 2024 and [$24.0 million/ (23.9 million + 13.8 million)] for the twelve months ended December 31, 2023.
(2) Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$0.3 million/(24.7 million + 12.7 million)] for the twelve months ended December 31, 2024 and [$3.6 million/ (23.9 million + 13.8 million)] for the twelve months ended December 31, 2023. No impairment was recorded for the three months ended December 31, 2024 nor the three months ended December 31, 2023.

Goosehead Insurance, Inc.
Key Performance Indicators

	December 31, 2024			December 31, 2023
Corporate sales agents < 1 year tenured		253			135
Corporate sales agents > 1 year tenured		164			165
Operating franchises < 1 year tenured		90			183
Operating franchises > 1 year tenured		1,013			1,043
Total Franchise Producers		2,092			1,957
QTD Corporate Agent Productivity < 1 Year ⁽¹⁾	$	12,787		$	13,789
QTD Corporate Agent Productivity > 1 Year ⁽¹⁾	$	26,788		$	25,738
QTD Franchise Productivity < 1 Year ⁽²⁾	$	17,861		$	10,975
QTD Franchise Productivity > 1 Year ⁽²⁾	$	29,089		$	21,103
Policies in Force		1,674,000			1,486,000
Client Retention		84	%		86	%
Premium Retention		98	%		101	%
QTD Written Premium (in thousands)	$	965,596		$	756,082
Net Promoter Score (“NPS”)		89			92

(1) – Corporate Productivity is New Business Production per Agent (Corporate): The New Business Revenue collected related to corporate sales, divided by the average number of full-time corporate sales agents for the same period. This calculation excludes interns, part-time sales agents and partial full-time equivalent sales managers.
(2) – Franchise Productivity is New Business Production per Agency: The gross commissions paid by Carriers and Agency Fees received related to policies in their first term sold by franchise sales agents, divided by the average number of franchises for the same period, prior to paying Royalty Fees to the Company.

The MIL Network –

February 25, 2025

MIL-OSI: Diamondback Energy, Inc. Announces Fourth Quarter and Full Year 2024 Financial and Operating Results; Increases Base Dividend

Source: GlobeNewswire (MIL-OSI)

MIDLAND, Texas, Feb. 24, 2025 (GLOBE NEWSWIRE) — Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced financial and operating results for the fourth quarter and full year ended December 31, 2024.

FOURTH QUARTER 2024 HIGHLIGHTS

Average production of 475.9 MBO/d (883.4 MBOE/d)
Net cash provided by operating activities of $2.3 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $2.3 billion
Cash capital expenditures of $933 million
Free Cash Flow (as defined and reconciled below) of $1.3 billion; Adjusted Free Cash Flow (as defined and reconciled below) of $1.4 billion
Increased annual base dividend by 11% to $4.00 per share; declared Q4 2024 base cash dividend of $1.00 per share payable on March 13, 2025; implies a 2.6% annualized yield based on February 21, 2025 closing share price of $156.12
Repurchased 2,326,247 shares of common stock in Q4 2024 for $402 million, excluding excise tax (at a weighted average price of $172.91 per share); repurchased 1,254,600 shares of common stock to date in Q1 2025 for $210 million, excluding excise tax (at a weighted average price of $167.42 per share)
Total Q4 2024 return of capital of $694 million; represents ~51% of Adjusted Free Cash Flow (as defined and reconciled below) from stock repurchases and the declared Q4 2024 base dividend
Closed previously announced TRP Energy (“TRP”) transaction in December 2024

FULL YEAR 2024 HIGHLIGHTS

Average production of 337.0 MBO/d (598.3 MBOE/d)
Net cash provided by operating activities of $6.4 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $6.5 billion
Cash capital expenditures of $2.9 billion
Free Cash Flow (as defined and reconciled below) of $3.6 billion; Adjusted Free Cash Flow (as defined and reconciled below) of $4.0 billion
Declared total base-plus-variable dividends of $6.21 per share for the full year 2024
Repurchased 5,525,276 shares of common stock in 2024 for $959 million, excluding excise tax (at a weighted average price of $173.57 per share)
Total full year 2024 return of capital of $2.3 billion; represents ~57% of FY 2024 Adjusted Free Cash Flow (as defined and reconciled below)
As previously announced, closed merger with Endeavor Energy Resources, L.P. (“Endeavor”) on September 10, 2024
Proved reserves as of December 31, 2024 of 3,557 MMBOE (1,761 MMBO, 50% oil), up 63% year over year; proved developed producing (“PDP”) reserves of 2,385 MMBOE (1,121 MMBO, 47% oil, 67% of proved reserves), up 59% year over year

2025 GUIDANCE HIGHLIGHTS

Please note the guidance below gives effect to the pending acquisition of Double Eagle IV Midco, LLC (“Double Eagle”) from April 1, 2025 onward.

Full year 2025 oil production guidance of 485 – 498 MBO/d (883 – 909 MBOE/d)
Full year 2025 cash capital expenditures guidance of $3.8 – $4.2 billion
The Company expects to drill between 446 – 471 gross (406 – 428 net) wells and complete between 557 – 592 gross (526 – 560 net) wells with an average lateral length of approximately 11,500 feet in 2025
Q1 2025 oil production guidance of 470 – 475 MBO/d (860 – 875 MBOE/d)
Q1 2025 cash capital expenditures guidance of $900 million – $1.0 billion
Implies Q2 2025 – Q4 2025 run-rate oil production of 490 – 505 MBO/d (891 – 920 MBOE/d)
Full year 2025 Midland Basin well costs per lateral foot guidance of $555 – $605
Implies full year 2025 oil production per million dollars of cash capital expenditures (“MBO per $MM of CAPEX”) of 44.8, 10% better than the Company’s original pro forma 2025 outlook provided in February 2024

OPERATIONS UPDATE

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

Total Activity (Gross Operated):
	Number of Wells Drilled	Number of Wells Completed
Midland Basin	131	124
Delaware Basin	6	4
Total	137	128

Total Activity (Net Operated):
	Number of Wells Drilled	Number of Wells Completed
Midland Basin	124	113
Delaware Basin	5	4
Total	129	117

During the fourth quarter of 2024, Diamondback drilled 131 gross wells in the Midland Basin and six gross wells in the Delaware Basin. The Company turned 124 operated wells to production in the Midland Basin and four gross wells in the Delaware Basin, with an average lateral length of 11,810 feet. Operated completions during the fourth quarter consisted of 26 Wolfcamp A wells, 26 Lower Spraberry wells, 24 Wolfcamp B wells, 19 Jo Mill wells, 15 Middle Spraberry wells, four Wolfcamp D wells, four Dean wells, three Upper Spraberry wells, three Barnett wells, two Second Bone Spring wells and two Third Bone Spring wells.

For the year ended December 31, 2024, Diamondback drilled 342 gross wells in the Midland Basin and 30 gross wells in the Delaware Basin. The Company turned 391 operated wells to production in the Midland Basin and 19 operated wells to production in the Delaware Basin. The average lateral length for wells completed during the year ended December 31, 2024 was 11,719 feet, and consisted of 98 Lower Spraberry wells, 87 Wolfcamp A wells, 69 Wolfcamp B wells, 59 Jo Mill wells, 49 Middle Spraberry wells, 13 Wolfcamp D wells, 13 Dean wells, nine Upper Spraberry wells, six Third Bone Spring wells, four Barnett wells and three Second Bone Spring wells.

FINANCIAL UPDATE

Diamondback’s fourth quarter 2024 net income was $1.1 billion, or $3.67 per diluted share. Adjusted net income (as defined and reconciled below) for the fourth quarter was $1.1 billion, or $3.64 per diluted share. For the full year ended December 31, 2024, Diamondback’s net income was $3.3 billion, or $15.53 per diluted share. Adjusted net income for the full year was $3.6 billion, or $16.57 per diluted share.

Fourth quarter 2024 net cash provided by operating activities was $2.3 billion. For the full year ended December 31, 2024, Diamondback’s net cash provided by operating activities was $6.4 billion.

During the fourth quarter of 2024, Diamondback spent $834 million on operated and non-operated drilling and completions, $93 million on infrastructure and environmental and $6 million on midstream, for total cash capital expenditures of $933 million. For the full year ended 2024, Diamondback spent $2.6 billion on operated and non-operated drilling and completions, $221 million on infrastructure and environmental and $14 million on midstream, for total cash capital expenditures of $2.9 billion.

Fourth quarter 2024 Consolidated Adjusted EBITDA (as defined and reconciled below) was $2.6 billion. Adjusted EBITDA net of non-controlling interest (as defined and reconciled below) for the fourth quarter was $2.5 billion. For the full year ended December 31, 2024, Consolidated Adjusted EBITDA was $7.7 billion. Adjusted EBITDA net of non-controlling interest for the full year was $7.3 billion.

Diamondback’s fourth quarter 2024 Free Cash Flow (as defined and reconciled below) was $1.3 billion. Adjusted Free Cash Flow (as reconciled and defined below) for the fourth quarter was $1.4 billion. For the full year ended December 31, 2024, Diamondback’s Free Cash Flow was $3.6 billion, with $4.0 billion of Adjusted Free Cash Flow over the same period.

Fourth quarter 2024 average unhedged realized prices were $69.48 per barrel of oil, $0.48 per Mcf of natural gas and $19.27 per barrel of natural gas liquids (“NGLs”), resulting in a total equivalent unhedged realized price of $42.71 per BOE.

Diamondback’s cash operating costs for the fourth quarter of 2024 were $10.30 per BOE, including lease operating expenses (“LOE”) of $5.67 per BOE, cash general and administrative (“G&A”) expenses of $0.69 per BOE, production and ad valorem taxes of $2.77 per BOE and gathering, processing and transportation expenses of $1.17 per BOE.

As of December 31, 2024, Diamondback had $134 million in standalone cash and no borrowings outstanding under its revolving credit facility, with approximately $2.5 billion available for future borrowings under the facility and approximately $2.6 billion of total liquidity. As of December 31, 2024, the Company had consolidated total debt of $13.2 billion and consolidated net debt (as defined and reconciled below) of $13.0 billion, up from consolidated total debt of $13.1 billion and consolidated net debt of $12.7 billion as of September 30, 2024.

DIVIDEND DECLARATIONS

Diamondback announced today that the Company’s Board of Directors declared a base cash dividend of $1.00 per common share for the fourth quarter of 2024 payable on March 13, 2025 to stockholders of record at the close of business on March 6, 2025.

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 fourth quarter of 2024, Diamondback repurchased ~2.3 million shares of common stock at an average share price of $172.91 for a total cost of approximately $402 million, excluding excise tax. To date, Diamondback has repurchased ~25.8 million shares of common stock at an average share price of $136.82 for a total cost of approximately $3.5 billion and has approximately $2.5 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.

RESERVES

Estimates of Diamondback’s proved reserves as of December 31, 2024 were prepared by Diamondback’s internal reservoir engineers and audited by Ryder Scott Company, L.P., an independent petroleum engineering firm. Reference prices of $75.48 per barrel of oil and $2.13 per Mmbtu of natural gas were used in accordance with applicable rules of the Securities and Exchange Commission. Realized prices with applicable differentials were $76.15 per barrel of oil, $0.54 per Mcf of natural gas and $22.02 per barrel of natural gas liquids.

Proved reserves at year-end 2024 of 3,557 MMBOE represent a 63% increase over year-end 2023 reserves. Proved developed reserves increased by 59% to 2,385 MMBOE (67% of total proved reserves) as of December 31, 2024, reflecting the continued development of the Company’s horizontal well inventory. Proved undeveloped reserves (“PUD” or “PUDs”) increased to 1,173 MMBOE, a 72% increase over year-end 2023, and are comprised of 1,381 horizontal locations in which we have a working interest, of which 1,310 are in the Midland Basin. Crude oil represents 50% of Diamondback’s total proved reserves.

Net proved reserve additions of 1,599 MMBOE resulted in a reserve replacement ratio of 730% (defined as the sum of extensions and discoveries, revisions, purchases and divestitures, divided by annual production). The organic reserve replacement ratio was 68% (defined as the sum of extensions and discoveries and revisions, divided by annual production).

Net purchases of reserves were the primary contributor to the increase in reserves totaling 1,449 MMBOE followed by Extensions and discoveries of reserves totaling 279 MMBOE, with downward revisions of 129 MMBOE. PDP extensions were the result of 1,172 new wells in which the Company has an interest, and PUD extensions were the result of 445 new locations in which the Company has a working interest. Net purchases of reserves of 1,449 MMBOE were the net result of acquisitions of 1,569 MMBOE and divestitures of 121 MMBOE. Downward revisions of 129 MMBOE were primarily the result of negative revisions of 89 MMBOE associated with lower commodity prices, 49 MMBOE due to PUD downgrades related to changes in the corporate development plan and 17 MMBOE due to a decline in well performance. These were partially offset by positive performance revisions of 26 MMBOE related to ownership and acquisition variance revisions.

The SEC PUD guidelines allow a company to book PUD reserves associated with projects that are to occur within the next five years. With its current development plan, the Company expects to continue its strong PUD conversion ratio in 2025 by converting an estimated 33% of its PUDs to a Proved Developed category, and develop approximately 78% of the consolidated 2024 year-end PUD reserves by the end of 2027.

	Oil (MBbls)		Gas (MMcf)		Liquids (MBbls)		MBOE
As of December 31, 2023	1,143,944		2,997,422		534,247		2,177,761
Extensions and discoveries	168,375		310,421		58,696		278,808
Revisions of previous estimates	(78,142	)	(158,468	)	(24,518	)	(129,071	)
Purchase of reserves in place	697,702		2,391,264		473,236		1,569,482
Divestitures	(47,505	)	(240,044	)	(33,080	)	(120,592	)
Production	(123,325	)	(275,680	)	(49,700	)	(218,972	)
As of December 31, 2024	1,761,049		5,024,915		958,881		3,557,416

Diamondback’s exploration and development costs in 2024 were $3.2 billion. PD F&D costs were $10.51/BOE. PD F&D costs are defined as exploration and development costs, excluding midstream, divided by the sum of reserves associated with transfers from proved undeveloped reserves at year-end 2023 including any associated revisions in 2024 and extensions and discoveries placed on production during 2024. Drill bit F&D costs were $19.12/BOE including the effects of all revisions including pricing revisions. Drill bit F&D costs are defined as the exploration and development costs, excluding midstream, divided by the sum of extensions, discoveries and revisions.

	Year Ended December 31,
		2024		2023		2022
	(In millions)
Acquisition costs:
Proved properties	$	21,275	$	1,314	$	778
Unproved properties		15,568		1,701		1,536
Development costs		2,992		1,962		566
Exploration costs		194		768		1,698
Total	$	40,029	$	5,745	$	4,578

FULL YEAR 2025 GUIDANCE

Below is Diamondback’s guidance for the full year 2025, which includes first quarter production, cash tax and capital guidance. This guidance gives effect to the estimated contribution related to the pending Double Eagle acquisition, which is expected to close on April 1, 2025, subject to the satisfaction of customary closing conditions and regulatory approval.

	2025 Guidance	2025 Guidance
	Diamondback Energy, Inc.	Viper Energy, Inc.

2025 Net production – MBOE/d	883 – 909
2025 Oil production – MBO/d	485 – 498
Q1 2025 Oil production – MBO/d (total – MBOE/d)	470 – 475 (860 – 875)	30.0 – 31.0 (54.0 – 56.0)

Unit costs ($/BOE)
Lease operating expenses, including workovers	$5.90 – $6.30
G&A
Cash G&A	$0.60 – $0.75
Non-cash equity-based compensation	$0.25 – $0.35
DD&A	$14.00 – $15.00
Interest expense (net of interest income)	$0.25 – $0.50
Gathering, processing and transportation	$1.20 – $1.40

Production and ad valorem taxes (% of revenue)	~7%
Corporate tax rate (% of pre-tax income)	23%
Cash tax rate (% of pre-tax income)	17% – 20%
Q1 2025 Cash taxes ($ – million)	$280 – $340

Capital Budget ($ – million)
Operated drilling and completion	$3,130 – $3,440
Capital workovers, non-operated properties and science	$280 – $320
Infrastructure, environmental and midstream⁽¹⁾	$390 – $440
2025 Total capital expenditures	$3,800 – $4,200
Q1 2025 Capital expenditures	$900 – $1,000

Gross horizontal wells drilled (net)	446 – 471 (406 – 428)
Gross horizontal wells completed (net)	557 – 592 (526 – 560)
Average lateral length (Ft.)	~11,500′
FY 2025 Midland Basin well costs per lateral foot	$555 – $605
FY 2025 Delaware Basin well costs per lateral foot	$860 – $910
Midland Basin completed net lateral feet (%)	~95%
Delaware Basin completed net lateral feet (%)	~5%

_{⁽¹⁾ Includes approximately $60 million in estimated midstream capital expenditures for the full year 2025.}

CONFERENCE CALL

Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the fourth quarter of 2024 on Tuesday, February 25, 2025 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, the pending Double Eagle acquisition 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-K, 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.
Consolidated Balance Sheets
(unaudited, in millions, except share amounts)

	December 31,			December 31,
		2024			2023
Assets
Current assets:
Cash and cash equivalents ($27 million and $26 million related to Viper)	$	161		$	582
Restricted cash		3			3
Accounts receivable:
Joint interest and other, net		198			192
Oil and natural gas sales, net ($149 million and $109 million related to Viper)		1,387			654
Inventories		116			63
Derivative instruments		168			17
Prepaid expenses and other current assets		77			110
Total current assets		2,110			1,621
Property and equipment:
Oil and natural gas properties, full cost method of accounting ($22,666 million and $8,659 million excluded from amortization at December 31, 2024 and December 31, 2023, respectively) ($5,713 million and $4,629 million related to Viper and $2,180 million and $1,769 million excluded from amortization related to Viper)		82,240			42,430
Other property, equipment and land		1,440			673
Accumulated depletion, depreciation, amortization and impairment ($1,081 million and $866 million related to Viper)		(19,208	)		(16,429	)
Property and equipment, net		64,472			26,674
Funds held in escrow		1			—
Equity method investments		375			529
Derivative instruments		2			1
Deferred income taxes, net ($185 million and $57 million related to Viper)		173			45
Other assets		159			131
Total assets	$	67,292		$	29,001
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable – trade	$	253		$	261
Accrued capital expenditures		690			493
Current maturities of debt		900			—
Other accrued liabilities		1,020			475
Revenues and royalties payable		1,491			764
Derivative instruments		43			86
Income taxes payable		414			29
Total current liabilities		4,811			2,108
Long-term debt ($1,083 million and $1,083 million related to Viper)		12,075			6,641
Derivative instruments		106			122
Asset retirement obligations		573			239
Deferred income taxes		9,826			2,449
Other long-term liabilities		39			12
Total liabilities		27,430			11,571
Stockholders’ equity:
Common stock, $0.01 par value; 800,000,000 shares authorized; 290,984,373 and 178,723,871 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively		3			2
Additional paid-in capital		33,501			14,142
Retained earnings (accumulated deficit)		4,238			2,489
Accumulated other comprehensive income (loss)		(6	)		(8	)
Total Diamondback Energy, Inc. stockholders’ equity		37,736			16,625
Non-controlling interest		2,126			805
Total equity		39,862			17,430
Total liabilities and stockholders’ equity	$	67,292		$	29,001


Diamondback Energy, Inc.
Consolidated Statements of Operations
(unaudited, $ in millions except per share data, shares in thousands)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Revenues:
Oil, natural gas and natural gas liquid sales	$	3,471		$	2,165		$	10,100		$	8,228
Sales of purchased oil		225			52			923			111
Other operating income		15			11			43			73
Total revenues		3,711			2,228			11,066			8,412
Costs and expenses:
Lease operating expenses		461			254			1,286			872
Production and ad valorem taxes		225			104			638			525
Gathering, processing and transportation		95			78			356			287
Purchased oil expense		225			52			921			111
Depreciation, depletion, amortization and accretion		1,156			469			2,850			1,746
General and administrative expenses		72			39			213			150
Merger and integration expense		30			—			303			11
Other operating expenses		35			27			103			140
Total costs and expenses		2,299			1,023			6,670			3,842
Income (loss) from operations		1,412			1,205			4,396			4,570
Other income (expense):
Interest expense, net		(34	)		(29	)		(135	)		(159	)
Other income (expense), net		(7	)		(9	)		80			52
Gain (loss) on derivative instruments, net		36			99			137			(259	)
Gain (loss) on extinguishment of debt		—			—			2			(4	)
Income (loss) from equity investments, net		(2	)		9			21			48
Total other income (expense), net		(7	)		70			105			(322	)
Income (loss) before income taxes		1,405			1,275			4,501			4,248
Provision for (benefit from) income taxes		115			264			800			912
Net income (loss)		1,290			1,011			3,701			3,336
Net income (loss) attributable to non-controlling interest		216			51			363			193
Net income (loss) attributable to Diamondback Energy, Inc.	$	1,074		$	960		$	3,338		$	3,143

Earnings (loss) per common share:
Basic	$	3.67		$	5.34		$	15.53		$	17.34
Diluted	$	3.67		$	5.34		$	15.53		$	17.34
Weighted average common shares outstanding:
Basic		291,851			178,811			213,545			179,999
Diluted		291,851			178,811			213,545			179,999


Diamondback Energy, Inc.
Consolidated Statements of Cash Flows
(unaudited, in millions)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Cash flows from operating activities:
Net income (loss)	$	1,290		$	1,011		$	3,701		$	3,336
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for (benefit from) deferred income taxes		(165	)		193			15			378
Depreciation, depletion, amortization and accretion		1,156			469			2,850			1,746
(Gain) loss on extinguishment of debt		—			—			(2	)		4
(Gain) loss on derivative instruments, net		(36	)		(99	)		(137	)		259
Cash received (paid) on settlement of derivative instruments		(15	)		(48	)		(51	)		(110	)
(Income) loss from equity investment, net		2			(9	)		(21	)		(48	)
Equity-based compensation expense		16			14			65			54
Other		12			28			89			5
Changes in operating assets and liabilities:
Accounts receivable		(103	)		147			(42	)		(71	)
Income tax receivable		(3	)		16			9			283
Prepaid expenses and other current assets		(24	)		(94	)		54			(89	)
Accounts payable and accrued liabilities		114			11			(376	)		57
Income taxes payable		138			(9	)		87			(5	)
Revenues and royalties payable		59			(16	)		168			123
Other		(100	)		10			4			(2	)
Net cash provided by (used in) operating activities		2,341			1,624			6,413			5,920
Cash flows from investing activities:
Drilling, completions, infrastructure and midstream additions to oil and natural gas properties		(933	)		(649	)		(2,867	)		(2,701	)
Property acquisitions		(926	)		(820	)		(8,920	)		(2,013	)
Proceeds from sale of assets		8			7			467			1,407
Other		(4	)		(2	)		99			(16	)
Net cash provided by (used in) investing activities		(1,855	)		(1,464	)		(11,221	)		(3,323	)
Cash flows from financing activities:
Proceeds under term loan agreement		—			—			1,000			—
Repayments under term loan agreement		(100	)		—			(100	)		—
Proceeds from borrowings under credit facilities		2,190			313			3,375			4,779
Repayments under credit facilities		(2,044	)		(300	)		(3,377	)		(4,668	)
Proceeds from senior notes		—			400			5,500			400
Repayment of senior notes		—			—			(25	)		(134	)
Repurchased shares under buyback program		(402	)		(131	)		(959	)		(840	)
Repurchased shares/units under Viper’s buyback program		—			(28	)		—			(95	)
Proceeds from partial sale of investment in Viper Energy, Inc.		—			—			451			—
Net proceeds from Viper’s issuance of common stock		—			—			476			—
Dividends paid to stockholders		(262	)		(603	)		(1,578	)		(1,444	)
Dividends/distributions to non-controlling interest		(70	)		(45	)		(227	)		(129	)
Other		(7	)		(11	)		(149	)		(45	)
Net cash provided by (used in) financing activities		(695	)		(405	)		4,387			(2,176	)
Net increase (decrease) in cash and cash equivalents		(209	)		(245	)		(421	)		421
Cash, cash equivalents and restricted cash at beginning of period		373			830			585			164
Cash, cash equivalents and restricted cash at end of period	$	164		$	585		$	164		$	585


Diamondback Energy, Inc.
Selected Operating Data
(unaudited)

	Three Months Ended December 31,				Year Ended December 31,
		2024		2023		2024		2023
Production Data:
Oil (MBbls)		43,785		25,124		123,325		96,176
Natural gas (MMcf)		107,249		50,497		275,680		198,117
Natural gas liquids (MBbls)		19,615		9,016		49,700		34,217
Combined volumes (MBOE)⁽¹⁾		81,275		42,556		218,972		163,413

Daily oil volumes (BO/d)		475,924		273,087		336,954		263,496
Daily combined volumes (BOE/d)		883,424		462,565		598,284		447,707

Average Prices:
Oil ($ per Bbl)	$	69.48	$	76.42	$	73.52	$	75.68
Natural gas ($ per Mcf)	$	0.48	$	1.29	$	0.32	$	1.32
Natural gas liquids ($ per Bbl)	$	19.27	$	19.96	$	18.99	$	20.08
Combined ($ per BOE)	$	42.71	$	50.87	$	46.12	$	50.35

Oil, hedged ($ per Bbl)⁽²⁾	$	68.72	$	75.59	$	72.68	$	74.72
Natural gas, hedged ($ per Mcf)⁽²⁾	$	0.82	$	1.31	$	0.91	$	1.48
Natural gas liquids, hedged ($ per Bbl)⁽²⁾	$	19.27	$	19.96	$	18.99	$	20.08
Average price, hedged ($ per BOE)⁽²⁾	$	42.76	$	50.40	$	46.38	$	49.98

Average Costs per BOE:
Lease operating expenses	$	5.67	$	5.97	$	5.87	$	5.34
Production and ad valorem taxes		2.77		2.44		2.91		3.21
Gathering, processing and transportation expense		1.17		1.83		1.63		1.76
General and administrative – cash component		0.69		0.59		0.68		0.59
Total operating expense – cash	$	10.30	$	10.83	$	11.09	$	10.90

General and administrative – non-cash component	$	0.20	$	0.33	$	0.30	$	0.33
Depreciation, depletion, amortization and accretion	$	14.22	$	11.02	$	13.02	$	10.68
Interest expense, net	$	0.42	$	0.68	$	0.62	$	0.97

(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 December 31,						Year Ended December 31,
		2024			2023			2024			2023
Net income (loss) attributable to Diamondback Energy, Inc.	$	1,074		$	960		$	3,338		$	3,143
Net income (loss) attributable to non-controlling interest		216			51			363			193
Net income (loss)		1,290			1,011			3,701			3,336
Non-cash (gain) loss on derivative instruments, net		(51	)		(147	)		(188	)		149
Interest expense, net		34			29			135			159
Depreciation, depletion, amortization and accretion		1,156			469			2,850			1,746
Depreciation and interest expense related to equity method investments		30			18			91			70
(Gain) loss on extinguishment of debt		—			—			(2	)		4
Non-cash equity-based compensation expense		24			21			95			80
Capitalized equity-based compensation expense		(8	)		(7	)		(30	)		(26	)
Merger and integration expenses		30			—			303			11
Other non-cash transactions		2			12			(62	)		(52	)
Provision for (benefit from) income taxes		115			264			800			912
Consolidated Adjusted EBITDA		2,622			1,670			7,693			6,389
Less: Adjustment for non-controlling interest		118			82			411			290
Adjusted EBITDA attributable to Diamondback Energy, Inc.	$	2,504		$	1,588		$	7,282		$	6,099

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 December 31, 2024						Year Ended December 31, 2024
	Amounts			Amounts Per Diluted Share			Amounts			Amounts Per Diluted Share
Net income (loss) attributable to Diamondback Energy, Inc.⁽¹⁾	$	1,074		$	3.67		$	3,338		$	15.53
Net income (loss) attributable to non-controlling interest		216			0.74			363			1.70
Net income (loss)⁽¹⁾		1,290			4.41			3,701			17.23
Non-cash (gain) loss on derivative instruments, net		(51	)		(0.17	)		(188	)		(0.88	)
(Gain) loss on extinguishment of debt		—			—			(2	)		(0.01	)
Merger and integration expense		30			0.10			303			1.42
Other non-cash transactions		2			—			(62	)		(0.29	)
Adjusted net income excluding above items⁽¹⁾		1,271			4.34			3,752			17.47
Income tax adjustment for above items		2			0.01			(9	)		(0.04	)
Adjusted net income⁽¹⁾		1,273			4.35			3,743			17.43
Less: Adjusted net income attributable to non-controlling interest		206			0.71			183			0.86
Adjusted net income attributable to Diamondback Energy, Inc.⁽¹⁾	$	1,067		$	3.64		$	3,560		$	16.57

Weighted average common shares outstanding:
Basic					291,851						213,545
Diluted					291,851						213,545

(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 $4 million and $21 million in earnings attributable to participating securities for the three months ended December 31, 2024 and the year ended December 31, 2024, respectively, (iii) divided by diluted weighted average common shares outstanding for the respective periods.

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 December 31,						Year Ended December 31,
		2024			2023			2024			2023
Net cash provided by operating activities	$	2,341		$	1,624		$	6,413		$	5,920
Less: Changes in cash due to changes in operating assets and liabilities:
Accounts receivable		(103	)		147			(42	)		(71	)
Income tax receivable		(3	)		16			9			283
Prepaid expenses and other current assets		(24	)		(94	)		54			(89	)
Accounts payable and accrued liabilities		114			11			(376	)		57
Income taxes payable		138			(9	)		87			(5	)
Revenues and royalties payable		59			(16	)		168			123
Other		(100	)		10			4			(2	)
Total working capital changes		81			65			(96	)		296
Operating cash flow before working capital changes		2,260			1,559			6,509			5,624
Drilling, completions, infrastructure and midstream additions to oil and natural gas properties		(933	)		(649	)		(2,867	)		(2,701	)
Total Cash CAPEX		(933	)		(649	)		(2,867	)		(2,701	)
Free Cash Flow		1,327			910			3,642			2,923
Tax impact from divestitures⁽¹⁾		—			—			—			64
Merger and integration expenses		30			—			303			—
Early termination of derivatives		—			—			37			—
Treasury locks		—			—			25			—
Adjusted Free Cash Flow	$	1,357		$	910		$	4,007		$	2,987

(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)

	December 31, 2024			Net Q4 Principal Borrowings/ (Repayments)			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	(in millions)
Diamondback Energy, Inc.⁽¹⁾	$	12,069		$	(215	)	$	12,284		$	11,169		$	5,669		$	5,697
Viper Energy, Inc.⁽¹⁾		1,091			261			830			1,007			1,103			1,093
Total debt		13,160		$	46			13,114			12,176			6,772			6,790
Cash and cash equivalents		(161	)					(370	)		(6,908	)		(896	)		(582	)
Net debt	$	12,999					$	12,744		$	5,268		$	5,876		$	6,208

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

DERIVATIVES

As of February 21, 2025, 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, $/Bbl)
	Q1 2025	Q2 2025	Q3 2025	Q4 2025	FY2026
Long Puts – Crude Brent Oil	52,000	48,000	27,000	12,000	—
Long Put Price ($/Bbl)	$60.00	$58.44	$56.85	$55.00	—
Deferred Premium ($/Bbl)	$-1.48	$-1.50	$-1.54	$-1.56	—
Long Puts – WTI (Magellan East Houston)	83,000	86,000	72,000	35,000	—
Long Put Price ($/Bbl)	$55.84	$55.12	$55.00	$55.00	—
Deferred Premium ($/Bbl)	$-1.59	$-1.58	-1.60	$-1.62	—
Long Puts – WTI (Cushing)	142,000	137,000	101,000	41,000	—
Long Put Price ($/Bbl)	$56.58	$55.58	$55.00	$55.00	—
Deferred Premium ($/Bbl)	$-1.59	$-1.58	$-1.58	$-1.61	—
Costless Collars – WTI (Cushing)	13,000	—	—	—	—
Long Put Price ($/Bbl)	$60.00	—	—	—	—
Short Call Price ($/Bbl)	$89.55	—	—	—	—
Basis Swaps – WTI (Midland)	64,000	66,000	66,000	66,000	—
Basis Swaps – WTI (Midland)	$1.09	$1.05	$1.05	$1.05	—
Roll Swaps – WTI	16,389	25,000	25,000	25,000	—
Roll Swaps – WTI	$0.93	$0.93	$0.93	$0.93	—

	Natural Gas (Mmbtu/day, $/Mmbtu)
	Q1 2025	Q2 2025	Q3 2025	Q4 2025	FY 2026	FY 2027
Costless Collars – Henry Hub	750,000	690,000	690,000	690,000	500,000	—
Long Put Price ($/Mmbtu)	$2.52	$2.49	$2.49	$2.49	$2.64	—
Ceiling Price ($/Mmbtu)	$5.26	$5.28	$5.28	$5.28	$6.31	—
Natural Gas Basis Swaps – Waha Hub	670,000	610,000	610,000	610,000	230,000	200,000
Natural Gas Basis Swaps – Waha Hub	$-0.82	$-0.84	$-0.84	$-0.84	$-1.41	$-1.42

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

The MIL Network –

February 25, 2025

MIL-OSI: EverQuote Announces Fourth Quarter and Full Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

Fourth Quarter Revenue Growth of 165% Year-Over-Year to $147.5 million
Fourth Quarter Variable Marketing Dollars Increases Over 110% Year-Over-Year to $44.0 million
Delivers Fourth Quarter Net Income of $12.3 million and Adjusted EBITDA of $18.9 million
Full Year Revenue Grows 74% and Variable Marketing Dollars Increases 55%, Year-Over-Year
Full Year Net Income Increases to $32.2 million and Generates Operating Cash Flow of $66.6 million

CAMBRIDGE, Mass., Feb. 24, 2025 (GLOBE NEWSWIRE) — EverQuote, Inc. (Nasdaq: EVER), a leading online insurance marketplace, today announced financial results for the fourth quarter and full year ended December 31, 2024.

“I am proud of our remarkable team and our financial accomplishments in 2024. We grew revenue by 74% year-over-year to cross the $500 million mark for the first time, increased Adjusted EBITDA to almost $60 million, and finished the year with over $100 million of cash on the balance sheet, and no debt,” said Jayme Mendal, CEO of EverQuote. “Over the last year, we have refocused and clarified our vision to become the leading growth partner for P&C insurance providers by efficiently delivering better performing referrals, bigger traffic scale and a broader suite of products and services. We are emerging from the auto insurance downturn with record performance, and expect to carry forward our positive momentum and profitable growth into 2025 and beyond.”

“Our strong momentum continued through the fourth quarter, as we again exceeded guidance across all three of our primary financial metrics: total revenue, Variable Marketing Dollars or VMD, and Adjusted EBITDA. We produced a record-level of revenue and net income, as well as a record-level of Adjusted EBITDA and operating cash flow for the full year 2024,” said Joseph Sanborn, CFO of EverQuote. “As we progress through 2025, we plan to make continued strategic investments to accelerate the advancement of our technology platform to enable faster development of product enhancements and new offerings for our customers. We are excited about our ability to continue to leverage our traffic expertise, data assets and technology to support our insurance provider customers in successfully expanding their business; and in turn enable EverQuote to further scale and drive growing profitability.”

Fourth Quarter 2024 Highlights:
(Unless otherwise noted, all comparisons are relative to the fourth quarter of 2023).

Total revenue of $147.5 million, an increase of 165%.
Automotive insurance vertical revenue of $135.9 million, an increase of over 200%.
Home and renters insurance vertical revenue of $11.3 million, an increase of 15%.
VMD more than doubled to $44.0 million, compared to $20.7 million.
GAAP net income of $12.3 million, compared to a GAAP net loss of ($6.3) million.
Adjusted EBITDA of $18.9 million, compared to ($0.9) million.
Operating cash flow of $20.1 million, compared to ($0.8) million.
Ended the quarter with $102.1 million in cash and cash equivalents, an increase of 23% from $82.8 million at the end of the third quarter of 2024.

Full Year 2024 Highlights:
(Unless otherwise noted, all comparisons are relative to full year 2023 results).

Total revenue of $500.2 million, an increase of 74%.
Automotive insurance vertical revenue of $446.1 million, an increase of 96%.
Home and renters insurance vertical revenue of $52.0 million, an increase of 27%.
VMD increased 55% to $155.2 million, compared to $100.3 million.
GAAP net income of $32.2 million, compared to a GAAP net loss of ($51.3) million. The net loss for 2023 includes $23.6 million of restructuring and other charges related to the sale of our health insurance vertical assets and workforce reduction.
Adjusted EBITDA of $58.2 million, compared to $0.5 million.
Operating cash flow of $66.6 million, compared to ($2.8) million.

First Quarter 2025 Outlook:

Revenue of $155.0 – $160.0 million, representing 73% year-over-year growth at the midpoint.
Variable Marketing Dollars of $44.0 – $46.0 million, representing 46% year-over-year growth at the midpoint.
Adjusted EBITDA of $19.0 – $21.0 million, representing 163% year-over-year growth at the midpoint.

With respect to the Company’s expectations under “First Quarter 2025 Outlook” above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income (loss) in this press release because the Company does not provide guidance for stock-based compensation expense, depreciation and amortization expense, restructuring and other charges, acquisition-related costs, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income (loss). In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.

Conference Call and Webcast Information

EverQuote will host a conference call and live webcast to discuss its fourth quarter and full year 2024 financial results at 4:30 p.m. Eastern Time today, February 24, 2025. To access the conference call, dial Toll Free: +1 (800) 715-9871 for the US, or +1 (646) 307-1963 for international callers, and provide conference ID 4210704. The live webcast and replay will be available on the Investors section of the Company’s website at https://investors.everquote.com.

Safe Harbor Statement

This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “should,” “expects,” “might,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “seek,” “would” or “continue,” or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, liquidity and results of operations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions described in our annual report on Form 10-K, our quarterly reports on Form 10-Q and our current reports on Form 8-K as filed with the Securities and Exchange Commission (“SEC”) from time to time. Additional information will also be set forth in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2024, which will be filed with the SEC. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. While we may elect to update these forward-looking statements at some point in the future, whether as a result of any new information, future events, or otherwise, we have no current intention of doing so except to the extent required by applicable law. Some of the key factors that could cause actual results to differ include: (1) our dependence on revenue from the property and casualty insurance industries, and specifically automotive insurance, and exposure to risks related to those industries; (2) our dependence on our relationships with insurance providers with no long-term minimum financial commitments; (3) our reliance on a small number of insurance providers for a significant portion of our revenue; (4) our dependence on third-party media sources for a significant portion of visitors to our websites and marketplace; (5) our ability to attract consumers searching for insurance to our websites and marketplace through Internet search engines, display advertising, social media, content-based online advertising and other online sources; (6) any limitations restricting our ability to market to users or collect and use data derived from user activities; (7) risks related to cybersecurity incidents or other network disruptions; (8) risks related to the use of artificial intelligence; (9) our ability to develop new and enhanced products and services to attract and retain consumers and insurance providers, and to successfully monetize them; (10) the impact of competition in our industry and innovation by our competitors; (11) our ability to hire and retain necessary qualified employees to expand our operations; (12) our ability to stay abreast of and comply with new or modified laws and regulations that currently apply or become applicable to our business, including with respect to the insurance industry, telemarketing restrictions and data privacy requirements; (13) our ability to protect our intellectual property rights and maintain and build our brand; (14) our future financial performance, including our expectations regarding our revenue, cost of revenue, variable marketing dollars, operating expenses, cash flows and ability to achieve, and maintain, future profitability; (15) our ability to properly collect, process, store, share, disclose and use consumer information and other data; and (16) the future trading prices of our Class A common stock.

About EverQuote

EverQuote operates a leading online marketplace for insurance shopping, connecting consumers with insurance provider customers, which includes both carriers and agents. Our vision is to be the leading growth partner for property and casualty, or P&C, insurance providers. Our results-driven marketplace, powered by our proprietary data and technology platform, is improving the way insurance providers attract and connect with consumers shopping for insurance.

For more information, visit https://investors.everquote.com and follow on LinkedIn.

Investor Relations Contact

Brinlea Johnson
The Blueshirt Group
(415) 489-2193


EVERQUOTE, INC. STATEMENTS OF OPERATIONS

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
	(in thousands except per share)
Revenue	$	147,455		$	55,705		$	500,190		$	287,921
Cost and operating expenses(1):
Cost of revenue		5,420			4,988			20,922			22,455
Sales and marketing		114,209			44,594			387,700			240,131
Research and development		7,640			5,944			29,553			27,591
General and administrative		8,159			6,962			30,264			26,301
Restructuring and other charges		—			(21	)		—			23,568
Acquisition-related costs		—			—			—			(150	)
Total cost and operating expenses		135,428			62,467			468,439			339,896
Income (loss) from operations		12,027			(6,762	)		31,751			(51,975	)
Other income:
Interest income		683			382			2,079			1,251
Other income, net	24				9		178			14
Total other income, net		707			391			2,257			1,265
Income (loss) before income taxes		12,734			(6,371	)		34,008			(50,710	)
Income tax (expense) benefit		(428	)		23			(1,839	)		(577	)
Net income (loss)	$	12,306		$	(6,348	)	$	32,169		$	(51,287	)
Net income (loss) per share:
Basic	$	0.35		$	(0.19	)	$	0.92		$	(1.54	)
Diluted	$	0.33		$	(0.19	)	$	0.88		$	(1.54	)
Weighted average common shares outstanding, basic and diluted
Basic		35,490			33,954			35,007			33,350
Diluted		37,051			33,954			36,646			33,350

(1) Amounts include stock-based compensation expense, as follows:
	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
	(in thousands)
Cost of revenue	$	53		$	49		$	182		$	219
Sales and marketing		1,713			1,906			6,796			8,667
Research and development		1,422			1,574			5,502			8,053
General and administrative		2,122			1,284			8,134			5,869
Restructuring and other charges		—			—			—			1,288
	$	5,310		$	4,813		$	20,614		$	24,096


EVERQUOTE, INC. BALANCE SHEET DATA

	December 31,
	2024		2023
	(in thousands)
Cash and cash equivalents	$	102,116	$	37,956
Working capital		99,131		39,293
Total assets		210,530		110,925
Total liabilities		75,162		30,018
Total stockholders’ equity		135,368		80,907


EVERQUOTE, INC. STATEMENTS OF CASH FLOWS

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
	(in thousands)
Cash flows from operating activities:
Net income (loss)	$	12,306		$	(6,348	)	$	32,169		$	(51,287	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		1,555			1,075			5,672			6,196
Stock-based compensation expense		5,310			4,813			20,614			24,096
Loss on sale of health assets		—			—			—			19,388
Impairment of right-of-use asset		—			—			—			384
Change in fair value of contingent consideration liabilities		—			—			—			(150	)
Provision for (recovery of) bad debt		(3	)		18			13			204
Unrealized foreign currency transaction (gains) losses		(82	)		22			(26	)		21
Changes in operating assets and liabilities:
Accounts receivable		(13,099	)		952			(40,178	)		8,219
Prepaid expenses and other current assets		128			(1,675	)		440			962
Commissions receivable, current and non-current		1,158			1,565			4,880			4,176
Operating lease right-of-use assets		371			491			2,213			2,497
Other assets		—			385			(291	)		421
Accounts payable		12,961			(3,382	)		42,664			(13,411	)
Accrued expenses and other current liabilities		(73	)		1,979			1,040			(1,543	)
Deferred revenue		(14	)		(29	)		(107	)		5
Operating lease liabilities		(384	)		(658	)		(2,537	)		(3,006	)
Net cash provided by (used in) operating activities		20,134			(792	)		66,566			(2,828	)
Cash flows from investing activities:
Acquisition of property and equipment, including costs capitalized for development of internal-use software		(1,003	)		(852	)		(4,114	)		(3,840	)
Proceeds from sale of health assets		—			—			—			13,194
Net cash provided by (used in) investing activities		(1,003	)		(852	)		(4,114	)		9,354
Cash flows from financing activities:
Proceeds from exercise of stock options		651			639			3,553			979
Tax withholding payments related to net share settlement		(496	)		(103	)		(1,846	)		(402	)
Net cash provided by financing activities		155			536			1,707			577
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(11	)		15			1			18
Net increase (decrease) in cash, cash equivalents and restricted cash		19,275			(1,093	)		64,160			7,121
Cash, cash equivalents and restricted cash at beginning of period		82,841			39,049			37,956			30,835
Cash, cash equivalents and restricted cash at end of period	$	102,116		$	37,956		$	102,116		$	37,956


EVERQUOTE, INC. FINANCIAL AND OPERATING METRICS
Revenue by vertical:
	Three Months Ended December 31,				Change
	2024		2023		%
	(in thousands)
Automotive	$	135,930	$	44,985		202.2	%
Home and Renters		11,298		9,821		15.0	%
Other		227		899		-74.7	%
Total Revenue	$	147,455	$	55,705		164.7	%

	Year Ended December 31,				Change
	2024		2023		%
	(in thousands)
Automotive	$	446,095	$	227,505		96.1	%
Home and Renters		52,013		40,889		27.2	%
Other		2,082		19,527		-89.3	%
Total Revenue	$	500,190	$	287,921		73.7	%

Other financial and non-financial metrics:
	Three Months Ended December 31,					Change
	2024		2023			%
	(in thousands)
Income (loss) from operations	$	12,027	$	(6,762	)		-277.9	%
Net income (loss)	$	12,306	$	(6,348	)		-293.9	%
Variable marketing dollars	$	44,023	$	20,668			113.0	%
Adjusted EBITDA(1)	$	18,916	$	(886	)	NM

	Year Ended December 31,					Change
	2024		2023			%
	(in thousands)
Income (loss) from operations	$	31,751	$	(51,975	)		-161.1	%
Net income (loss)	$	32,169	$	(51,287	)		-162.7	%
Variable marketing dollars	$	155,227	$	100,282			54.8	%
Adjusted EBITDA(1)	$	58,215	$	461		NM

(1	)	Adjusted EBITDA is a non-GAAP measure. Please see “EverQuote, Inc. Reconciliation of Non-GAAP Measures to GAAP” below for more information.

To supplement the Company’s financial statements presented in accordance with GAAP and to provide investors with additional information regarding EverQuote’s financial results, the Company has presented Adjusted EBITDA as a non-GAAP financial measure. This non-GAAP financial measure is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies.

The Company defines Adjusted EBITDA as net income (loss), excluding the impact of stock-based compensation expense; depreciation and amortization expense; restructuring and other charges; acquisition-related costs; interest income; and income taxes. The most directly comparable GAAP measure is net income (loss). The Company monitors and presents Adjusted EBITDA because it is a key measure used by management and the board of directors to understand and evaluate operating performance, to establish budgets and to develop operational goals for managing EverQuote’s business. In particular, the Company believes that excluding the impact of these items in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of EverQuote’s core operating performance.

The Company uses Adjusted EBITDA to evaluate EverQuote’s operating performance and trends and make planning decisions. The Company believes that this non-GAAP financial measure helps identify underlying trends in EverQuote’s business that could otherwise be masked by the effect of the items that the Company excludes in the calculations of Adjusted EBITDA. Accordingly, the Company believes that this financial measure provides useful information to investors and others in understanding and evaluating EverQuote’s operating results, enhancing the overall understanding of the Company’s past performance and future prospects.

The Company’s non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), which is the most directly comparable financial measure calculated and presented in accordance with GAAP. In addition, other companies may use other measures to evaluate their performance, which could reduce the usefulness of the Company’s non-GAAP financial measures as tools for comparison.

The following table reconciles Adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP.


EVERQUOTE, INC. RECONCILIATION OF NON-GAAP MEASURES TO GAAP

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
	(in thousands)
Net income (loss)	$	12,306		$	(6,348	)	$	32,169		$	(51,287	)
Stock-based compensation		5,310			4,813			20,614			22,808
Depreciation and amortization		1,555			1,075			5,672			6,196
Restructuring and other charges		—			(21	)		—			23,568
Acquisition-related costs		—			—			—			(150	)
Interest income		(683	)		(382	)		(2,079	)		(1,251	)
Income taxes		428			(23	)		1,839			577
Adjusted EBITDA	$	18,916		$	(886	)	$	58,215		$	461

The MIL Network –

February 25, 2025

MIL-OSI Security: Owner of Charleroi Staffing Agency Pleads Guilty to Harboring Illegal Aliens for Financial Gain and Failing to Pay More Than $3 Million in Employment Taxes

Source: Office of United States Attorneys

PITTSBURGH, Pa. – A resident of Belle Vernon, Pennsylvania, pleaded guilty in federal court to charges of harboring illegal aliens for financial gain and failing to pay employment taxes, Acting United States Attorney Troy Rivetti announced today.

Andy Ha, 28, pleaded guilty to two counts before United States District Judge Cathy Bissoon. Ha was charged by a two-count Information filed with the Court on January 28, 2025.

In connection with the guilty plea, the Court was advised that, from September 2022 to April 2024, Ha owned a temporary staffing agency called Prosperity Services, Inc., that provided workers to companies in the Charleroi, Pennsylvania, area. As part of his business, Ha paid for more than 25 workers who were not legally authorized to be in the United States to stay in a former hotel, and his business paid for vans to transport those workers to and from their work. In addition, Ha provided Prosperity’s tax return preparer with spreadsheets listing only workers who were legally authorized to be and work in the United States. That information, in turn, was reflected on the company’s quarterly employment tax returns, representing less than 10% of the actual total number of workers employed by Prosperity. Ha then also signed those returns, knowing them to be false and causing a tax loss of at least $3.1 million.

“The defendant broke the law by harboring and employing individuals not authorized to be in the United States,” said Acting United States Attorney Rivetti. “In addition, defendant Ha cost the U.S. government millions of dollars through his failure to pay taxes related to his business. Our office and our law enforcement partners at all levels will continue to ensure that those who seek to profit from the employment of such workers, and who fail to pay taxes, face appropriate consequences under the law.”

“Business owners have a responsibility to file accurate quarterly employment tax returns and to timely remit withholding taxes for their employees to the Internal Revenue Service,” said Special Agent in Charge Yury Kruty, IRS-Criminal Investigation, Philadelphia Field Office. “The failure to do so is a serious offense.”

“This investigation highlights the commitment of HSI Pittsburgh to protecting our communities from those who seek to exploit undocumented workers for their personal gain,” said Special Agent in Charge of HSI Philadelphia Edward V. Owens. “Andy Ha and his business sought to profit off of the immigrant community. I commend the dedicated prosecutors in the U.S. Attorney’s Office for the Western District of Pennsylvania and our partners at the Internal Revenue Service-Criminal Investigation division and Pennsylvania State Police. Together, we will continue to work to ensure that such illegal activities are met with the full force of the law.”

Judge Bissoon scheduled sentencing for July 22, 2025. The law provides for a total maximum sentence of up to five years in prison, a fine of up to $250,000 or twice the gain from the offense, or both on the tax charge and up to 10 years in prison, a fine of up to $250,000 or twice the gain from the offense, or both on the harboring charge. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney William B. Guappone is prosecuting this case on behalf of the government.

The Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, and Pennsylvania State Police conducted the investigation that led to the prosecution of Ha.

MIL Security OSI –

February 25, 2025

MIL-OSI Asia-Pac: Union Minister Shri Shivraj Singh Chouhan to inaugurate the Saras Aajeevika Mela at Noida Haat, Uttar Pradesh tomorrow

Source: Government of India (2)

Union Minister Shri Shivraj Singh Chouhan to inaugurate the Saras Aajeevika Mela at Noida Haat, Uttar Pradesh tomorrow

Saras Aajeevika Mela aims to help artisans and craftsmen to promote their livelihoods and inclusive growth

Posted On: 24 FEB 2025 6:01PM by PIB Delhi

Union Minister for Rural Development Shri Shivraj Singh Chouhan will inaugurate the Saras Aajeevika Mela at Noida Haat, Sector 33 A, Noida, Uttar Pradesh tomorrow. Saras Aajeevika Mela 2025 is being organized from 21^stFebruary to 10th March 2025, primarily to showcase the craft and arts of rural India. For the 5^thtime, the famous Saras Aajeevika Mela 2025 is being organized by the Ministry of Rural Development with the support of the National Institute of Rural Development and Panchayati Raj (NIRDPR) with the theme of tradition, art, and culture and “Developing Export Potential of Lakhpati SHG Didis”. On this special occasion, Ministers of State for Rural Development Dr. Chandra Sekhar Pemmasani and Shri Kamlesh Paswan will also be present.

Visitors are enjoying various products made by Self Help Groups (SHGs) from 30 States. Handloom, Handicrafts & Natural Food Products made by SHGs are showcased on 200 Stalls for exhibition and sale. Besides, 25 Live Food Stalls from 20 States are also showcasing their ethnic cuisines and delicious food items at Noida Haat. Around 450 SHG Members across the country are participating in this Saras Aajeevika Mela.

The Saras Aajeevika Mela 2025 is featuring excellent displays of various state handlooms, sarees, and dress materials. These include: Andhra Pradesh’s Kalamkari, Assam’s Mekhla Chador, Bihar’s Cotton and Silk, Chhattisgarh’s Kosa Saree, Gujarat’s Bharat Gunthan and Patchwork, Jharkhand’s Tasar Silk and Cotton, Chanderi and Bagh Print from Madhya Pradesh, Eri Products from Meghalaya, Tasar and Bandha from Odisha, Kanchipuram from Tamil Nadu, Pochampally from Telangana, Pashmina from Uttarakhand, Kantha, Batik Print, Tant, and Baluchari from West Bengal. Handicrafts, jewellery, and home decor products from various states are also showcased in Mela. Additionally, natural food products such as ginger, tea, lentils, coffee, papad, apple jam, and pickles are available at food stalls.

Arrangements for Senior Citizen, Kids Zone and Mother’s Care are made in SARAS Mela. Visitors are also enjoying a variety of cultural programs every day during the SARAS Mela. A dedicated Export Promotion Pavilion is placed in the SARAS Mela Premises at Noida Haat for Development of Export Potential of SHG Didis.

This initiative, started by the Ministry of Rural Development, aims to help artisans and craftsmen to promote their livelihoods and inclusive growth. This will promote the vision of Prime Minister Shri Narendra Modi ‘Vocal for Local’ campaign and ‘Viksit Bharat by 2047’.

******

MG/RN/KSR

(Release ID: 2105829) Visitor Counter : 35

MIL OSI Asia Pacific News –

February 25, 2025

MIL-OSI Asia-Pac: Cultivating the Future

Source: Government of India

Cultivating the Future

Innovative Biotech Solutions for Farming, Livestock, and Aquaculture

Posted On: 24 FEB 2025 5:51PM by PIB Delhi

Biotechnology has emerged as a transformative force in agriculture, aquaculture, and animal sciences, driving innovation in crop improvement, disease management, and sustainable farming practices. Recent advancements in genome editing, molecular breeding, and biocontrol solutions are enhancing productivity and resilience in these sectors positioning India as a global force!

Agricultural biotechnology is breaking new ground with advanced research in genomics, proteomics, transgenics, and gene editing. The Department of Biotechnology’s Agriculture Biotechnology programme supports innovative biotechnological research for achieving sustainable agriculture by leveraging the latest advances in technologies. The main achievements include:

Climate-Smart Crops: A New Superior Climate Smart Drought Tolerant High-Yielding Chickpea Variety “SAATVIK (NC 9)” with enhanced yield under drought stress is notified recently. SAATVIK (NC9) is now approved by the Central Sub-committee on Crop Standards.

Genome-Edited Crops: Genome editing was employed to generate loss of function mutations in several rice genes that negatively regulate crop productivity. These lines have been developed in the genetic background of the popular Indian rice variety, MTU-1010, and exhibit higher yield (in greenhouse conditions) over the parent line. In particular, similarly, the DEP1 (DENSE ERECT PANICLE; a G protein subunit) genome-edited rice lines produced larger spikes with increased grain numbers and yield.

Genotyping Arrays: The first-ever 90K Pan-genome SNP genotyping array IndRA developed for rice has been commercialized for public use. Similarly, the first-ever 90K Pan-genome SNP genotyping array IndCA for chickpea has been developed. The arrays will help DNA fingerprinting, variety identification, testing genetic purity of rice and chickpea varieties.

Amaranth Genetic Resources: The department of biotechnology has developed an Amaranth Genomic Resource Database, Near Infrared Spectroscopy (NIRS) techniques for screening nutritional qualities of amaranth grain, and a 64K SNP chip. Amaranth accessions screened using the above resources have been shown to counteract high fat diet induced obesity. This is a significant enabler for rapid screening of amaranth accessions for cultivation as well as varietal development.

Fungal Biocontrol: A stable fungal enzyme nano-formulation from Myrothecium verrucaria has been developed for eco-friendly biocontrol of powdery mildew in tomato and grape.

Kisan-Kavach: An anti-pesticide suit designed to combat the pervasive threat of pesticide-induced toxicity in agricultural settings. Developed with a deep understanding of the challenges faced by farmers, Kisan Kavach stands as a beacon of safety and innovation in the field.

India is the largest animal husbandry sector in the world with largest livestock population to supports the livelihoods of more than two-thirds of the rural population, mainly small and marginal farmers. Innovations in animal biotechnology are driving breakthroughs in veterinary medicine and livestock management like:

The Aquaculture and Marine Biotechnology program has been implemented with the goal of enhancing both aquaculture production and productivity, while also harnessing marine resources for valuable products and processes. This program plays a vital role in the agricultural economy by ensuring food production for nutritional security. The Department has undertaken various initiatives to benefit the aquatic and marine sectors like.

Shrimp Diet: Fish meal is the important ingredient in shrimp feeds. Due to its high cost and sustainability issues, replacement of fish meal is an important area of research in aquaculture nutrition. Scientists working in this area at ICAR-Central Institute of Brackish water Aquaculture, Chennai have shown in their studies that yeast fermentation of soybean meal significantly improves inclusion level in shrimp diet by increasing the nutrient digestibility and growth. The growth trial results indicated that soybean meal can be included up to 35% in the grow-out feed of P. vannamei and fermentation improved the growth by approx. 8.5%

CIFA-Brood-Vac: A novel vaccine has been developed to prevent mortality in fish spawn, securing aquaculture stock health. A user-friendly software, Interactive Fish Feed Designer (IFFD) version 2, has been developed for the formulation of cost-effective fish feed with non-conventional ingredients.

The integration of biotechnology into agriculture, aquaculture, and animal sciences is fostering sustainable food production, disease resistance, and enhanced productivity. These innovations, backed by research and commercialization efforts, are paving the way for a resilient and efficient agricultural ecosystem. As biotechnology continues to evolve, its role in ensuring food security and environmental sustainability will only strengthen in the years to come.

References

https://dbtindia.gov.in/sites/default/files/uploadfiles/NBM%20WEBSITE-Dr.%20Madhavi_FV.pdf

https://pib.gov.in/PressReleasePage.aspx?PRID=2081506

https://dbtindia.gov.in/publications

See in PDF

***

Santosh Kumar/Sheetal Angral/ Madiha Iqbal

(Release ID: 2105824) Visitor Counter : 39

MIL OSI Asia Pacific News –

February 25, 2025

MIL-OSI USA: DCCA NEWS RELEASE: IOLANI SCHOOL WINS THE 2025 HAWAIʻI LIFESMARTS STATE COMPETITION

Source: US State of Hawaii

DCCA NEWS RELEASE: IOLANI SCHOOL WINS THE 2025 HAWAIʻI LIFESMARTS STATE COMPETITION

Posted on Feb 21, 2025 in Latest Department News, Newsroom

STATE OF HAWAIʻI

KA MOKU ʻĀINA O HAWAIʻI

DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS

KA ʻOIHANA PILI KĀLEPA

BUSINESS REGISTRATION DIVISION

JOSH GREEN, M.D.

GOVERNOR

KE KIAʻĀINA

NADINE Y. ANDO

DIRECTOR

KA LUNA HOʻOKELE

TY Y. NOHARA

COMMISSIONER OF SECURITIES

IOLANI SCHOOL WINS THE 2025 HAWAIʻI LIFESMARTS STATE COMPETITION

FOR IMMEDIATE RELEASE

February 21, 2025

HONOLULU — The state Department of Commerce and Consumer Affairs (DCCA) Business Registration Division and Insurance Division, and Hawaiʻi Credit Union League (HCUL) announces that the team from Iolani School today won the annual Hawaiʻi LifeSmarts State Competition at the Neal S. Blaisdell Center in Honolulu.

The competition tests students on their knowledge of personal finance, health and safety, the environment, technology, and consumer rights and responsibilities. Following the preliminary online portion of the competition, top scoring teams from Kalani, Iolani and Waipahu High Schools were invited to compete in today’s in-person competition, where they tested their skills through a “speed smarts” activity, and game show-style buzzer rounds.

Iolani School will go on to represent Hawaiʻi at the National LifeSmarts Competition in Chicago, Illinois from April 24 – 27, 2025. Members of the team are: Kevin Fleming (team captain), Jeremy Choi, Cade McDevitt, Tyler Hijirida, and Ryan Chan. The team was coached by Kit U Wong.

“Congratulations to Iolani School as it advances to the National Competition in Chicago,” said Department of Commerce and Consumer Affairs Director Nadine Ando. “The LifeSmarts program teaches our students practical, real-life skills that they will need as they enter adulthood, and we are proud to be a sponsor of this statewide program. Thank you to our staff, volunteers, and community partners for their generous contributions towards another successful year of Hawaiʻi LifeSmarts.”

2025 Hawaiʻi State Competition Community Supporters include:

Aloha Pacific Federal Credit Union
Amazon Web Services
Better Business Bureau
Big Island Federal Credit Union
Cisco
Coastal Construction Co., Inc.
eWorld Enterprise Solutions, Inc., Google Cloud
Farmers Hawaiʻi
Hawaiʻi Community Federal Credit Union
Hawaiʻi Credit Union League
Hawaii Government Employees Association (HGEA)
Hawaiʻi Information Service
Hawaiʻi State Federal Credit Union
HawaiiUSA Federal Credit Union Foundation
Hawaiʻi Medical Service Association (HMSA)
International Brotherhood of Electrical Workers (IBEW), Local 1186
Laborers-Employers Cooperation and Education Trust (LECET)
Outrigger Resorts & Hotels
Pacxa
Pasha Group and Pasha Hawaiʻi
Pearl Hawaiʻi Federal Credit Union
Schofield Federal Credit Union
SHI International Corp.
University of Hawaiʻi at Mānoa Shidler College of Business, Pacific Asian Center for Entrepreneurship (PACE)
Walmart

Visit www.LifeSmartsHawaii.com for more information.

LINK: PHOTOS AND B-ROLL

LifeSmarts is a national consumer education program that prepares students to enter the real world as smart consumers by teaching them the skills needed to succeed in today’s global marketplace. The program is run by the National Consumers League and sponsored locally by the DCCA Business Registration Division and Insurance Division, in partnership with the Hawaiʻi Credit Union League.

###

Media Contact:

Communications Office
Department of Commerce and Consumer Affairs

Phone: 808-586-2760
Email: [email protected]

MIL OSI USA News –

February 25, 2025

MIL-OSI Security: Northwest Arkansas Man Sentenced to More Than 4 Years in Prison for Operating an Illegal Money Transmitting Business Using Pandemic Funds

Source: Office of United States Attorneys

FAYETTEVILLE – A Northwest Arkansas man was sentenced on February 20, to 51 months in Federal Prison, followed by three years of supervised release. Additionally, he was ordered to pay restitution of $725,558.00 on one count of operating an Illegal Money Transmitting Business. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing, which took place in the United States District Court in Fayetteville.

According to court documents, Richard Harold Stone, age 77, waived indictment by a grand jury and pleaded guilty to a criminal information charging him with conducting an unlicensed money transmitting business in the State of Arkansas. Stone was the President or Chief Officer of numerous businesses registered with the Arkansas Secretary of State, including: Partex Oman Corp., Renewable Energy Campus Arkansas, Inc., Stonetek Global Corp., and Tires 2 Energy, LLC. Stone also was associated with Environmental Energy & Finance Corp., a Delaware corporation. The advertised purpose of these businesses was developing technology and facilities to repurpose waste materials, such as tires, into useable fuel sources. None of these businesses were registered with the State of Arkansas as a money transmitting business, as required by Arkansas law (Arkansas Code, Section 23-55-806(b)&(c)).

Between November 2020 and March 2021, Stone received through various bank accounts associated with the above entities and other accounts under his control, deposits of funds from applications made on behalf of unwitting victims for Paycheck Protection Program (PPP) loans, Economic Impact Disaster Loans (EIDL), and Pandemic Unemployment Assistance (PUA), totaling more than $600,000. After receiving these funds, Stone immediately transferred most of the funds by wire transfer to parties in locations including Berne, Switzerland; London, England; New York, NY; Chennai, India; and Mumbai, India.

At the conclusion of Thursday’s sentencing hearing, Stone was immediately remanded to the custody of the U.S. Marshals Service.

U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

The Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, and Department of Labor Office of the Inspector General investigated the case.

Assistant U.S. Attorney Hunter Bridges is prosecuting the case.

Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.

MIL Security OSI –

February 25, 2025

MIL-OSI: Alpha Sigma Capital Research Publishes New Report on XNET Mobile (XNET) and the Future of Decentralized Wireless (DeWi)

Source: GlobeNewswire (MIL-OSI)

Tampa, FL, Feb. 24, 2025 (GLOBE NEWSWIRE) — Alpha Sigma Capital Research has released an in-depth report on XNET Mobile (XNET), a pioneering force in the decentralized wireless (DeWi) industry. As mobile data consumption continues to surge, traditional mobile network operators (MNOs) and mobile virtual network operators (MVNOs) face increasing challenges in scaling their infrastructure efficiently. XNET is addressing this critical industry need with an innovative blockchain-powered solution that enhances network capacity while reducing reliance on costly physical infrastructure.

Key Highlights from the Report:

Seamless Connectivity: XNET enables over 150 million mobile devices to connect automatically, leveraging blockchain-based incentives and carrier-grade hardware.
Scalable Data Offloading: Provides a cost-effective solution for MNOs and MVNOs to offload data through carrier-grade WiFi and LTE/5G interconnects.
Strategic Partnerships: Direct partnership with AT&T exemplifies XNET’s ability to integrate with traditional MNOs and enhance network scalability.
Decentralized Network Expansion: Uses WiFi 6+ and Citizens Broadband Radio Service (CBRS) networks to enhance connectivity in underserved and high-traffic areas.
Blockchain-Powered Model: Operates on Solana, allowing communities and entrepreneurs to build network infrastructure while earning tokenized incentives.
Industry Disruption: XNET’s approach challenges traditional mobile infrastructure models, providing a sustainable and decentralized alternative.

Despite liquidity challenges in the broader Decentralized Physical Infrastructure Networks (DePIN) sector, which have impacted the performance of the $XNET token, XNET remains uniquely positioned for long-term growth.
“The mobile wireless industry has remained relatively unchanged for decades, and XNET is bringing a much-needed shift in how connectivity is built and managed,” said Enzo Villani, CEO, at Alpha Sigma Capital. “By utilizing blockchain technology and a decentralized model, XNET is providing a sustainable solution to meet the growing demand for high-speed, reliable mobile connectivity.”

To read the full research report, visit [LINK].

Stay connected with ASC Research on Substack. Subscribe at Alpha Sigma Capital Research | Substack.

About Alpha Transform Holdings
Alpha Transform Holdings (ATH) is a leading digital asset investment firm, combining strategic advisory, research, and capital investment to drive innovation in Web3 and blockchain.

About Alpha Sigma Capital Research
Active Investing in the Blockchain Economy.™

Alpha Sigma Capital Research is provided by Alpha Sigma Capital Advisors, LLC, the Investment Manager for the Alpha Blockchain/Web3 Fund and Alpha Liquid Fund. Alpha Sigma Capital (ASC) investment funds are focused on emerging blockchain companies that are successfully building their user-base, demonstrating real-world uses for their decentralized ecosystems, and moving blockchain technology towards mass-adoption. ASC is focused on companies leveraging blockchain technology to provide value-add in areas such as fintech, AI, supply chain, and healthcare. Apply to receive research at www.alphasigma.fund/research.

DISCLAIMER
This is for informational use only. This is not investment advice. Other than disclosures relating to Alpha Transform Holdings (ATH) and Alpha Sigma Capital (ASC) this information is based on current public information that we consider reliable, but we do not represent it as accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our information as appropriate.

Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company’s financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this press release.

The information on which the information is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, the company website, the company white paper, pitchbook, and any other sources. While Alpha Sigma Capital has obtained data, statistics, and information from sources it believes to be reliable, Alpha Sigma Capital does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
Unless otherwise provided in a separate agreement, Alpha Sigma Capital does not represent that the contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Alpha Sigma Capital and its officers, directors, and employees shall not be responsible or liable for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.

Crypto and/or digital currencies involve substantial risk, are speculative in nature, and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.

The MIL Network –

February 25, 2025

MIL-OSI USA: Ernst Pushes to Permanently Repeal the Federal Death Tax

US Senate News:

Source: United States Senator Joni Ernst (R-IA)
WASHINGTON – U.S. Senator Joni Ernst (R-Iowa), Chair of the Senate Small Business and Entrepreneurship Committee and a member of the Senate Agriculture Committee, joined a bipartisan group of her colleagues in working to permanently repeal the federal estate tax, more commonly known as the death tax or inheritance tax.
The Death Tax Repeal Act would end this purely punitive tax that has the potential to hit family-run farms and small businesses following the owner’s death. Companion legislation was introduced in the U.S. House of Representatives by Rep. Randy Feenstra (R-Iowa).
“Iowa farming families and entrepreneurs work for generations to establish farms and build small businesses that are essential to our state’s economy and rural communities,” said Senator Ernst. “They should not have to fear the loss of their livelihoods as they grieve a loved one. It’s time to eliminate this crippling tax burden and costly estate planning expenses once and for all.”
Background:
Ernst has been a strong opponent of the death tax, recognizing its burden on family-owned businesses, farms, and ranches. During the 2017 Tax Cuts and Jobs Act (TCJA), she supported efforts to repeal the tax. While the TCJA did not fully eliminate the death tax, it did double the estate and gift tax exemption to $10 million through 2025, easing the impact on many families. The Death Tax Repeal Actwould provide permanent relief.

MIL OSI USA News –

February 25, 2025

MIL-OSI Canada: A just and lasting peace for Ukraine

Source: Government of Canada – Prime Minister

Three years ago today, Russia launched an illegal full-scale invasion of Ukraine that has left hundreds of thousands dead and forced millions to flee. In the face of unimaginable hardship, Ukrainians have persevered and have fought for freedom and democracy. Canada has supported and will continue to support Ukraine in achieving just and lasting peace.

The Prime Minister, Justin Trudeau, visited Kyiv today to reaffirm Canada’s unwavering support for Ukraine.

During this visit, the Prime Minister highlighted the recent conclusion of negotiations between Canada and Ukraine on the terms of Canada’s $5 billion contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans mechanism. Canada will disburse the first half of its contribution, totalling $2.5 billion, in the coming days, with the remainder to follow soon. Announced last year at the G7 Summit in Apulia, Italy, the ERA Loans will bring forward the future revenues from frozen Russian sovereign assets. This initiative will provide Ukraine with approximately $69 billion (US$50 billion).

To maintain pressure on Russia, Prime Minister Trudeau announced new sanctions targeting 76 individuals and entities providing support for the Kremlin’s military industrial base, involved in the unlawful deportation or forced transfer of Ukrainian children, or supporting the Kremlin’s information operations capabilities, as well as senior Russian government officials and oligarchs who support Putin’s regime. In total, Canada has sanctioned more than 3,000 individuals and entities who are complicit in the violation of Ukraine’s sovereignty and territorial integrity and in gross and systematic human rights violations. The Prime Minister also announced that Canada is taking action against Russia’s shadow fleet by sanctioning 109 vessels based on their involvement in the transfer of sanctioned goods, including hydrocarbons whose revenue fuels Russia’s war machine.

In response to Russia’s renewed attacks on Ukraine’s energy infrastructure, which have left millions of civilians deprived of electricity, water, and heat, the Prime Minister also announced a $50 million contribution to help support Ukraine’s urgent efforts to repair and replace damaged energy equipment and critical infrastructure, in partnership with the Energy Community Secretariat. This builds on the $20 million in funding Canada announced last year in support of this initiative at the Summit on Peace in Ukraine, in Lucerne, Switzerland.

During a bilateral meeting with the President of Ukraine, Volodymyr Zelenskyy, Prime Minister Trudeau noted progress on Canada’s assistance commitments, including the delivery of military training and critical equipment, such as armoured combat vehicles and infantry fighting vehicles, ammunition, and F-16 landing systems and simulators.

Building on the $3.02 billion announced in the Agreement on Security Cooperation between Canada and Ukraine last year, the Prime Minister announced that $40 million of the total $3.02 billion in funding will be allocated to deliver urgently needed capabilities to the Armed Forces of Ukraine through the Danish Model and another $15 million toward supporting Canadian companies seeking to operate and invest in Ukraine’s defence sector.

The Prime Minister announced new assistance measures for Ukraine totalling $118.5 million, including:

$92.3 million in development assistance to strengthen local community building, support small-scale livelihood recovery projects that address community needs, reduce poverty and break down barriers to women’s full participation, address food security issues, and support the return of deported children and missing persons by improving the resilience of Ukraine’s government, communities, civil society, and private sector.
$14 million in humanitarian assistance, including for the provision of food, shelter, water, sanitation, hygiene services, and mental health and psycho-social support to those in need.
$8 million for weapons threat reduction to provide critical personal protective equipment to Ukrainians facing chemical, biological, radiological, and nuclear threats, and to strengthen nuclear security in the country.
$4.25 million to support peace and stabilization operations, including assisting regional women’s rights organizations and ensuring representatives from civil society and media can work safely.
$82,000 for local initiatives that will support the physical and mental health of former Ukrainian prisoners of war.

In total, Canada has committed over $19.7 billion in multifaceted assistance for Ukraine since the beginning of Russia’s full-scale invasion in February 2022.

In Kyiv, Prime Minister Trudeau joined President Zelenskyy and international partners to discuss the situation on the ground as well as Ukraine’s needs for military, financial, humanitarian, recovery, and other assistance. During a plenary session on the theme of “Defence and Security Strategy of Unity: Action Plan”, he delivered remarks commending the Ukrainian people for their bravery and resilience in the face of unjustified and brutal violence. He reaffirmed Canada’s position as an unshakeable ally who will continue to work with partners around the world to provide Ukraine with security and defence support – allowing it to recover, rebuild, and prosper.

The Prime Minister also convened his G7 counterparts and President Zelenskyy for a hybrid meeting to further discuss support for Ukraine. He underlined the importance of G7 unity in supporting a just and lasting peace in Ukraine as well as Ukraine’s reconstruction and economic recovery, noting that these would be priorities for Canada throughout our G7 Presidency this year.

The Prime Minister also attended a candle-lighting ceremony where he paid tribute to all those whose lives have been lost since the start of Russia’s aggression. Throughout his visit, he reiterated that Canada will always stand with Ukrainians as they continue to fight for freedom, justice, and democracy. We will defend a future for Ukraine that’s written by Ukrainians. We will defend a Ukraine that is strong and free. And we will be with Ukraine in this fight until a just and lasting peace is reached.

Quotes

“For three years now, Ukrainians have fought with courage and resilience against Russia’s brutal war of aggression. Their fight for democracy, freedom, and sovereignty is a fight that matters to us all. Today, in Kyiv, my message to Ukraine and Ukrainians is loud and clear: Canada will continue to stand with you in achieving just and lasting peace. We are strengthening our commitments, providing additional support, and working with our partners to secure peace and freedom for Ukraine. Slava Ukraini!”

“Canada remains steadfast in its support for Ukraine and will continue to leverage sanctions to weaken Russia’s ability to wage its illegal war. By targeting its military-industrial base, exposing those responsible for crimes and abuses in occupied Ukrainian territories, and disrupting the oligarchs’ confidants and shadow fleet supporting the Russian regime, we are holding Russia accountable. For three years, Canada has stood with Ukraine, and we will stand by its side for as long as it takes.”

“Since the start of Russia’s unprovoked, full-scale invasion of Ukraine three years ago, Canada has stood with the Ukrainian people. We remain unwavering in our commitment to continue providing Ukraine with critical military assistance to defend itself against Russia’s brutal aggression. Together with our Allies and partners, we will ensure Ukraine has the support it needs in the fight to safeguard its sovereignty and territorial integrity.”

Quick Facts

This was Prime Minister Trudeau’s fourth visit to Ukraine since the start of Russia’s full-scale invasion on February 24, 2022. For this visit, the Prime Minister was accompanied by the Minister of National Defence, Bill Blair.
In Ukraine, the Prime Minister held bilateral meetings with the President of Ukraine, Volodymyr Zelenskyy, and the Prime Minister of Spain, Pedro Sánchez.
During his visit, the Prime Minister also welcomed a new partnership with the NATO Science for Peace and Security project through which Natural Resources Canada will receive $2.1 million in funding to help create tools, establish key performance indicators, and identify opportunities for the reduction of fossil fuel dependency in military operations.
The sanctions announced today against Russia’s shadow fleet include 92 oil tankers involved in transferring Russian oil to third countries, nine liquefied natural gas (LNG) tankers involved in transferring Russian LNG to third countries, and eight vessels involved in moving arms and related material to Russia from Iran and North Korea. Canada is also adopting new measures that will prohibit a wider range of sensitive goods and technologies from being exported from Canada to Russia.
The measures announced today build on other recent announcements, including:
- Providing $440 million in military assistance for Ukraine, including funding for the procurement and delivery of large-calibre ammunition and various calibres of ammunition from Canadian industry, the production of military drones by Ukraine’s domestic defence industry, the delivery of high-resolution drone cameras, and the donation of winter gear, such as sleeping bags and winter boots.
- Providing $15 million in funding to the Innovative Mine Action for Community Recovery in Ukraine project, to help enhance Ukraine’s national mine action capacity, reduce the threat of explosive ordinance, and promote economic recovery. Canada also announced $2.2 million for the Cybersecurity Assistance Project, to provide essential cybersecurity support services, equipment, and training urgently needed by Ukraine to combat malicious cyber activities.
- Marking the first anniversary of the launch of the International Coalition for the Return of Ukrainian Children, which 41 states and the Council of Europe have joined in a collective commitment to bringing Ukrainian children home. With the help of Coalition Member States and other key international partners, Ukraine has successfully facilitated the safe return of nearly 600 children since the launch of the Coalition, and over 1000 to date. The Coalition is co-led by Canada and Ukraine.
- Signing a Memorandum of Understanding between Canada and Ukraine to share information and expertise that will help members of Ukraine’s security and defence forces and their families have access to resources to transition to life after service.
Since the beginning of 2022, Canada has committed $19.7 billion in multifaceted support to Ukraine. This includes:
- Over $12.4 billion in direct financial assistance, the highest in the G7 on a per capita basis.
- $4.5 billion in military assistance, such as M777 howitzers, Leopard 2 main battle tanks, armoured combat support vehicles, hundreds of thousands of rounds of ammunition, high-resolution drone cameras, thermal clothing, body armour, fuel, and more.
- Over $529 million in development assistance, including support to Ukraine’s energy system.
- $372.2 million in humanitarian assistance, including support for emergency health interventions, protection services, and essentials such as shelter, water, sanitation, and food. Programming also addresses child protection, mental health support, and prevention and response to sexual and gender-based violence.
- Nearly $225 million in security and stabilization assistance.
In Kyiv, the Prime Minister highlighted the ongoing work of members of the Canadian Armed Forces in the United Kingdom and Poland under Operation UNIFIER. Since 2015, they have provided training on a range of military skills to over 40,000 Ukrainian troops. He noted that Canada continues to engage closely with Ukraine, Allies, and partners on how best to enhance support through Operation UNIFIER to help Ukraine defend itself.
Last year, on February 24, Prime Minister Trudeau and President Zelenskyy signed the historic Agreement on Security Cooperation between Canada and Ukraine, establishing a new strategic security partnership between our two countries. This included $3.02 billion in critical financial and military support to Ukraine for 2024.
As part of the 2024 Fall Economic Statement, the federal government announced last year its intention to double down on our efforts to support Ukraine, including through proposed legislative changes that will ensure profits from frozen Russian assets are used to rebuild Ukraine.
Since the start of Russia’s full-scale invasion of Ukraine, Canada has welcomed more than 220,000 Ukrainians. We are helping Ukrainian families find a safe, temporary home and have put support services in place for their arrival. This includes temporary financial assistance and access to federally funded settlement services, such as language training and employment-related services.
Canada and Ukraine have long been steadfast partners and close friends. In 1991, Canada became the first Western country to recognize Ukraine’s independence. Today, 1.3 million people of Ukrainian descent call Canada home – the largest Ukrainian diaspora in the Western world. In 2022, total bilateral trade between our two countries was valued at over $421 million.

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MIL OSI Canada News –

February 25, 2025

MIL-OSI USA: Department of Revenue issues first income tax refunds in 2025

Source: US State of Oregon

he Oregon Department of Revenue has begun distributing refunds for the 2024 tax year. Through February 17, the department has processed more than 400,000 tax returns. The first refunds of the year were issued Tuesday.

Each year the department employs a refund hold period as part of the agency’s fraud prevention efforts. The hold period has been completed and most taxpayers can expect to receive their refunds within two weeks of the date their return is filed. Some returns, however, require additional review and can take up to 20 weeks before a refund is issued.

Taxpayers can check the status of their refund by using the department’s Where’s My Refund? tool. The Department of Revenue recommends that taxpayers wait one week after they have electronically filed their return to use the Where’s My Refund tool.

The Where’s My Refund? tool has been updated for 2025, providing more information about the status of their return to taxpayers who are signed into their Revenue Online account. Taxpayers who don’t already have a Revenue Online account can create one by following the Revenue Online link on the department’s website. Taxpayers who don’t have a Revenue Online account can still use the Where’s My Refund? tool but won’t be able to see the updated features.

A video outlining the refund process and timelines is also available to help taxpayers understand the process.

The department also offered a list of do’s and don’ts for filing to help with efficient processing and avoid unnecessary delays.

Do file electronically and request direct deposit. On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund two weeks sooner than those who file paper returns and request paper refund checks.

Don’t send a duplicate paper return. Taxpayers should file just once unless they need to make a change to their return. Sending a duplicate return will slow processing and delay your refund.

Do make sure you have all tax records before filing. Having all necessary records is essential to filing a complete and accurate tax return and avoiding errors.

Don’t get in a hurry and fail to report all your income. If income reported on a return doesn’t match the income reported by employers, the return, and any corresponding refund, will be delayed. If taxpayers receive more or corrected tax records after filing a return, they should file an amended return to report any changes.

Do make sure you have a Revenue Online account. Before beginning the filing process, taxpayers should make sure their information is current in Revenue Online, the state’s internet tax portal. Those who don’t have a Revenue Online account can sign up on the agency’s website.

To get tax forms, check the status of their refund, or make payments, visit our website or email questions.dor@dor.oregon.gov.

You can also call 800-356-4222 toll-free from an Oregon prefix (English or Spanish) or 503-378-4988 in Salem and outside Oregon. For TTY (hearing or speech impaired), we accept all relay calls.

MIL OSI USA News –

February 25, 2025

MIL-OSI Security: Tower Woman Sentenced to Prison for Embezzling Over $300K From Clients

Source: Office of United States Attorneys

ST. PAUL, Minn. – A Tower woman has been sentenced to 28 months in prison, three years of supervised release, and was ordered to pay nearly $430,000 in restitution to more than two dozen former payroll clients and the IRS, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

According to court documents, Jeana Lautigar, a.k.a. Jeana Lautigar-McGowan, 58, owned and operated an accounting and payroll service headquartered in St. Louis Park, Minnesota, where she managed payroll for various small businesses. To facilitate the payroll service, Lautigar-McGowan was granted access to client bank accounts. On multiple occasions between 2016 and 2020, Lautigar-McGowan embezzled funds from her clients’ bank accounts and used the money to cover personal expenses, or to pay back money she had previously embezzled from other clients. To accomplish her scheme, Lautigar-McGowan would electronically transfer funds from a client account into an account she controlled – in an amount appearing to be consistent with clients’ payroll – and spend the money for unapproved purposes. In total, she embezzled $344,813 from her clients over a period of five years.

According to court documents and her guilty plea, on February 6, 2020, Lautigar-McGowan tried to cover her scheme by transferring money from an account she controlled and that had been funded with embezzled money into the account of another payroll client. Lautigar-McGowan also filed false income tax returns in which she failed to report the embezzled income, resulting in a $84,746 tax loss to the United States.

On September 27, 2024, Lautigar-McGowan pleaded guilty in U.S. District Court to one count of engaging in a monetary transaction in criminally derived property and one count of filing a false income tax return. She was sentenced last week by Judge Donovan W. Frank.

This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation.

Assistant U.S. Attorneys Robert Lewis and Esther Soria prosecuted the case.

MIL Security OSI –

February 25, 2025

MIL-OSI: OMERS Earns $10.6 billion in Investment Income in 2024

Source: GlobeNewswire (MIL-OSI)

TORONTO, Feb. 24, 2025 (GLOBE NEWSWIRE) — OMERS, the defined benefit pension plan for Ontario’s broader municipal sector employees, achieved a 2024 investment return of 8.3%, or $10.6 billion, net of expenses, exceeding its 7.5% benchmark for the year. Net assets at December 31, 2024, grew to $138.2 billion from $128.6 billion in 2023. The Plan reported a smoothed funded status of 98%, up from 97% in 2023. Over the past 10 years, OMERS has averaged an annual investment return of 7.1%, net of expenses, adding $70.5 billion to the Plan.

“Our strong result in 2024 reflects the quality of our people and portfolio, our active strategic decisions, and our steady progress as a long-term investor. Since becoming CEO of OMERS, I have been incredibly proud of the work of our leaders and their teams, as well as the forward-thinking strategies we have implemented over the last four years as we emerged from the pandemic. This combination has generated an average annual net return of 8.1% during that period,” said Blake Hutcheson, OMERS President and Chief Executive Officer. “As we look to the future, we are steadfast in our view that quality will see us through an unpredictable global landscape and the cycles ahead. Our talented team is focused on delivering our pension promise and is honoured to work in service of our almost 640,000 members.”

“Our actions to diversify the global portfolio positioned the Plan well in 2024,” said Jonathan Simmons, OMERS Chief Financial and Strategy Officer. “OMERS public equity investments delivered double-digit performance supported by strong contributions from private credit and infrastructure. Our net investment results benefitted from our active strategy to maintain currency exposure to the US dollar. Our real estate assets continue to generate strong operating income, but returns were held back due to lower valuations. Our asset mix continued to shift toward a higher exposure to fixed income, where return opportunities remain attractive. We expanded our overall use of leverage as we continued to use debt prudently to enhance our investment returns.”

This year, we are reporting that OMERS achieved a 58% reduction in its portfolio carbon emissions intensity, relative to 2019, and we reported an increase in green investments to $23 billion. For more information on how we define green investments, please refer to the OMERS Climate Taxonomy.

OMERS is highly rated across independent credit rating agencies, including ‘AAA’ ratings from S&P, Fitch, and DBRS.

OMERS will publish its 2024 Annual Report on February 28, 2025.

Media Contact:

Don Peat
dpeat@omers.com
416.417.7385

About OMERS

OMERS is a jointly sponsored, defined benefit pension plan, with 1,000 participating employers ranging from large cities to local agencies, and almost 640,000 active, deferred and retired members. Our members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – serving members and employers, and originating and managing a diversified portfolio of high-quality investments in government bonds, public and private credit, public and private equities, infrastructure and real estate.

Net Investment Returns for the years ended December 31

	2024	2023
Government Bonds	1.0%	5.8%
Public Credit	6.0%	6.2%
Private Credit	12.6%	10.0%
Public Equities	18.8%	10.4%
Private Equities	9.5%	3.9%
Infrastructure	8.8%	5.5%
Real Estate	-4.9%	-7.2%
Total Net Return	8.3%	4.6%

2024 Asset Mix

2024 Highlights

By the numbers

2024 investment return of 8.3%, or $10.6 billion, net of expenses
$138.2 billion in net assets
10-year average annual net return of 7.1%
639,546 OMERS members
98% smoothed funded ratio
3.70% real discount rate, 5 basis points lower than 2023
$6.5 billion total pension benefits paid
We are reporting a 58% reduction in the portfolio carbon emissions intensity, relative to 2019
$23 billion in green investments
96% OMERS member service satisfaction
93% of employees are proud to work for OMERS and Oxford (+5 points above best-in-class)

Transactions in 2024

OMERS remains focused on deploying capital in line with our target asset mix. We are a disciplined investor in high-quality assets that meet the Plan’s risk and return requirements. Please find below highlights of investments made in 2024.

Acquired Italy’s Grandi Stazioni Retail which manages the entirety of commercial and advertising spaces in 14 of Italy’s major railway stations and hubs for the high-speed rail network, which collectively receive over 800 million visits a year. The stations include over 800 commercial units, totaling around 190,000 Sqm of leasable space, and over 1,800 media assets.
Increased our stake by 13.5% in Indian roads business Interise Trust, one of the largest Indian Infrastructure Investment Trusts in the roads sector.
Supported XpFibre to successfully raise €5.8 billion of credit facilities, marking one of the largest multi-sourced transactions in the European digital infrastructure market to date. XpFibre is the largest independent Fibre-to-the-Home (FTTH) operators in France delivering high speed internet to approximately 25% of the French territory in terms of homes passed.
Announced an agreement to acquire Integris, a leading provider of IT services in the United States.
Issued $3.2 billion in bonds by OMERS Finance Trust, including our inaugural AUD offering – an AUD 750 million, 5-year note.
Announced the signing of an exclusive agreement with Maritime Transport at West Midlands Interchange in the UK.
Participated in the US$15M Series A investment into Brightwave, an Al-powered research platform that delivers insightful and trustworthy financial analysis on demand. It was named as one of TIME magazine’s top inventions of 2024.
Participated in two follow-on investments. The first was in Medal, an online platform that lets gamers clip and share video of their gameplay and Altana, a company that applies artificial intelligence to create a dynamic, intelligent map of the global supply chain.
Closed our acquisition of Kenter, an energy infrastructure solutions business providing medium-voltage infrastructure and meters to over 25,000 commercial and industrial business customers in the Netherlands and Belgium.

We rotate capital out of assets with the same level of discipline with which we invest. This activity generates capital, which we deploy into future investment opportunities that align to our strategy. In 2024, we announced or completed the following realizations:

Announced the sale of a stake in East-West Tie Limited Partnership which owns the East-West Tie Line, a 450-kilometre, 230 kV double-circuit transmission line spanning from Wawa to Thunder Bay, along the north shore of Lake Superior.
Completed the sale of LifeLabs, a trusted provider of community laboratory tests for millions of Canadians that had been owned by OMERS since 2007.
Completed a €182.5 million green refinancing on a comprehensively renovated Paris office asset.
Completed the sale of its £518 million UK retail park portfolio.
Completed the sale of CEDA, which had been majority-owned by OMERS since 2005.

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/0d74c32c-3c0d-4915-af73-70788746bb63

https://www.globenewswire.com/NewsRoom/AttachmentNg/136a43d0-d624-48ac-bd8c-133cd153643c

The MIL Network –

February 25, 2025

Category: Taxation

Source: First Union

Lower average petrol prices in other capital cities and in regional locations

Average petrol gross indicative retail differences increased

Average diesel prices were lower in all capital cities, reflecting international trends

More consumers are using fuel price apps

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£120 million to roll-out more electric vans, taxis and motorbikes

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Source: Port Marlborough

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Union Minister Shri Shivraj Singh Chouhan to inaugurate the Saras Aajeevika Mela at Noida Haat, Uttar Pradesh tomorrowSaras Aajeevika Mela aims to help artisans and craftsmen to promote their livelihoods and inclusive growth

Cultivating the FutureInnovative Biotech Solutions for Farming, Livestock, and Aquaculture

DCCA NEWS RELEASE: IOLANI SCHOOL WINS THE 2025 HAWAIʻI LIFESMARTS STATE COMPETITION

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Union Minister Shri Shivraj Singh Chouhan to inaugurate the Saras Aajeevika Mela at Noida Haat, Uttar Pradesh tomorrow

Saras Aajeevika Mela aims to help artisans and craftsmen to promote their livelihoods and inclusive growth

Cultivating the Future

Innovative Biotech Solutions for Farming, Livestock, and Aquaculture