Posted by: yestelli on: March 3, 2009
INDIANA, Pa., March 3 /PRNewswire-FirstCall/ — Superior Well Services, Inc. (Nasdaq: SWSI), a provider of wellsite solutions specializing in technical pumping and completion, down-hole surveying and fluid logistic services, today reported its fourth quarter and 2008 results. Highlights for the year include:
Fourth Quarter 2008 Results
For the three months ended December 31, 2008, revenues increased 70.3% to $161.7 million compared to $94.9 million for the three months ended December 31, 2007. Operating income was $22.5 million for the three months ended December 31, 2008, an 84.1% increase compared to the three months ended December 31, 2007. Net income for the three months ended December 31, 2008 totaled $11.9 million or $0.48 diluted earnings per share. EBITDA, a non-GAAP financial measure, totaled $36.4 million, a 78.9% increase compared to the three months ended December 31, 2007. For our definition of EBITDA, please see footnote 1. For a reconciliation of EBITDA to net income, please see the information following the consolidated statement of income included in this press release.
David Wallace, Chief Executive Officer, said, “Our 70% growth in fourth quarter revenue and 79% growth in EBITDA year-over-year were a result of the maturation of service centers opened in the second half of 2007, as well as our asset acquisition from Diamondback Holdings LLC (“Diamondback”), which made us the fifth largest pressure pumper in the United States. Operating income as a percentage of revenue during the fourth quarter of 2008 was 13.9% which was 1.0% higher compared to the same period last year, but declined 3.2% from the third quarter of 2008. Our operating margins continue to be impacted by greater competitive pricing pressure for our services, higher costs of materials used in our business and increased depreciation expenses due to a larger fleet. As a percentage of revenues, these costs were partially offset by lower labor costs due to a mix change to jobs with higher material content, as well as our ability to leverage these costs over a higher revenue base.
“The current economic and credit environment has lowered demand for energy and resulted in significantly lower prices for crude oil and natural gas. Given the current commodity price and credit environment, we expect that drilling activity will be substantially lower in 2009 compared to 2008, which we believe will reduce demand and ultimately the prices we receive for our services in 2009. The extent and duration of the economic downturn and financial market deterioration is uncertain at this time, but we will continue to focus on operating and material cost reductions, as well as monitoring discretionary spending to respond to prevailing levels of activity. We are responding to this cyclical downturn by implementing cost control measures and a reduction in our capital expenditures. It seems clear that 2009 will be challenging, but we remain confident in our company’s ability to manage through the anticipated activity declines and believe we will be positioned to benefit from the markets eventual recovery.”
Stimulation and completion, nitrogen, cementing, down-hole surveying and fluid logistics revenues represented 68.4%, 5.8%, 15.2%, 6.7% and 3.9% of our total revenues of $161.7 million in the fourth quarter of 2008, respectively. Each of our operating regions had revenue increases compared to the fourth quarter of 2007, with the exception of the Appalachian region. Revenue for Appalachia was lower during the fourth quarter of 2008 as compared to the fourth quarter of 2007 due to a large, non-recurring nitrogen project performed in 2007. Increased activity levels at service centers that were established within the last twelve months (“New Centers”), as well as the Diamondback asset acquisition completed in November 2008, led to the increases in revenue in the fourth quarter of 2008 as compared to the same quarter a year ago. New service centers historically have higher sales discounts than our established service centers because they typically price their services below competitors to initially penetrate new markets. All of our operating regions experienced higher sales discounts for the fourth quarter of 2008 as compared to the fourth quarter of 2007 due to increased price competition. Our stimulation and cementing services continue to see the greatest downward pricing pressure. During the fourth quarter of 2008 we also saw the negative impact from reduction or elimination of fuel surcharges negotiated with several of our customers earlier in the year.
Cost of revenues was $125.1 million, or 77.4% of revenues, during the fourth quarter of 2008, compared to $73.0 million or 76.9% percent of revenues during the fourth quarter of 2007. The increase was due to a mix change to jobs with a larger proportion of material content, as well as higher material costs that could not be passed through to our customers via price increases in the current competitive environment. As a percentage of revenue, material costs increased 4.0% in the fourth quarter of 2008 compared to the fourth quarter of 2007. The year-over-year increase in material costs as a percentage of revenue was due to higher sand, chemical and cement costs, as well as transportation expenses incurred to deliver materials. The material cost increases as a percentage of revenue was partially offset by lower labor expenses as a percentage of revenue. Labor expenses as a percentage of revenues decreased 2.9% to 18.5% in the fourth quarter of 2008 compared to the fourth quarter of 2007 due to increased utilization over a higher revenue base, as well as a $1.4 million reduction in compensation accruals in the fourth quarter of 2008.
SG&A expenses increased 44.2% or $4.3 million for the three months ended December 31, 2008 compared to the three months ended December 31, 2007. As a percentage of revenue, SG&A expenses decreased to 8.7% for the fourth quarter of 2008 from 10.3% for the fourth quarter of 2007 due to the ability to leverage certain fixed costs over a higher revenue base. During the fourth quarter of 2008, we completed the Diamondback asset acquisition which increased SG&A expenses by $2.5 million. Additionally, in connection with the Diamondback asset purchase, we originally planned to finance a portion of the acquisition price with public debt and equity offerings. Due to deterioration in the financial markets, these public offerings were unable to be completed and $0.4 million in offering costs was expensed.
Operating income was $22.5 million for the fourth quarter of 2008 compared to $12.2 million for the fourth quarter of 2007, an increase of 84.1%. As a percentage of revenue, operating income increased from 12.9% in the fourth quarter of 2007 to 13.9% in the fourth quarter of 2008. The primary reasons for the 2008 increase in operating income were the improved profitability from new service centers and the Diamondback asset acquisition. Partially offsetting the 2008 increase in operating income were higher material and depreciation costs and discounts for our services as described above. EBITDA increased $16.0 million in the fourth quarter of 2008 compared to the fourth quarter of 2007 to $36.4 million. For our definition of EBITDA, please see footnote 1. For a reconciliation of EBITDA to net income, please see the information following the consolidated statement of income included in this press release. Net income increased $5.0 million to $11.9 million in the fourth quarter of 2008 compared to the fourth quarter of 2007 due to increased activity levels described above.
FULL YEAR 2008 Results
Revenue was $520.9 million for the year ended December 31, 2008 compared to $350.8 million for the year ended December 31, 2007, an increase of 48.5%. All regions reflected revenue increases when compared to the same period last year. The year-over-year revenue growth was driven by activity increases in our stimulation and cementing services. New centers, existing centers and 2008 acquisitions comprised 52%, 33% and 15% of the revenue increase in 2008 as compared to 2007, respectively. Increased revenue activity levels were partially offset by higher sales discounts for the year ended December 31, 2008 as compared to the year ended December 31, 2007 as a result of increased capacity, greater competition in the operating regions served by these service centers and higher percentage of revenue growth being contributed from new service centers that have higher sales discounts than our established service centers. All of our operating regions experienced higher sales discounts during 2008 as compared to 2007. Our stimulation and cementing services continue to see the greatest downward pricing pressure. As a percentage of revenues, increases in stimulation and cementing sales discounts were in the high single digits for 2008 as compared to 2007.
Cost of revenue increased 60.8% or $153.5 million for the year ended December 31, 2008 compared to the year ended December 31, 2007. The aggregate dollar increase was due to the variable nature of many costs, including materials and fuel. As a percentage of revenue, cost of revenue increased to 78.0% for the year ended December 31, 2008 from 72.0% for year ended December 31, 2007 due to lower utilization caused by poor weather during the first quarter of 2008 in the Appalachian region and increased costs during 2008 for materials and fuel that could not be passed through to our customers via price increases in the current competitive environment. As a percentage of revenue, material costs, depreciation, and fuel costs increased for the year ended December 31, 2008 as compared to the year ended December 31, 2007 by 4.4%, 0.5% and 1.5%, respectively. As a percentage of revenue, depreciation expenses increased 0.5% to 7.5% for year ended December 31, 2008 compared to year ended December 31, 2007 due to the higher levels of capital expenditures made to expand our equipment fleet. Additionally, higher sales discounts lowered net revenues and resulted in an increase in the cost of revenue as a percentage of revenue in 2008 as compared to 2007.
SG&A expenses increased 25.6% to $45.7 million for the year ended December 31, 2008 compared to $36.4 million for the year ended December 31, 2007. As a percentage of revenue, SG&A expenses decreased by 1.6% to 8.8% for the year ended December 31, 2008 from 10.4% for the year ended December 31, 2007 due to the ability to leverage certain of these fixed costs over a higher revenue base. New Centers and the Diamondback asset acquisition accounted for approximately $2.2 million and $2.5 million of the increase in SG&A expense for the year ended December 31, 2008 compared to the year ended December 31, 2007, respectively. During 2008, we hired additional personnel to manage the growth in our operations and SG&A expenses increased due to asset acquisitions.
Operating income was $69.1 million for the year ended December 31, 2008 compared to $61.8 million for the year ended December 31, 2007, an increase of 11.8%. As a percentage of revenue, operating income decreased from 17.6% for the year ended December 31, 2007 to 13.3% for the year ended December 31, 2008. The primary reasons for this decrease were higher material, depreciation and fuel costs, as well as increased discounts for our services as described above. EBITDA increased $23.5 million for the year ended December 31, 2008 compared to the year ended December 31, 2007 to $113.3 million. For our definition of EBITDA, please see footnote 1. For a reconciliation of EBITDA to net income, please see the information following the consolidated statement of income included in this press release. Net income increased $1.1 million to $38.8 million for the year ended December 31, 2008 compared to the year ended December 31, 2007 due to increased activity levels described above.
Capital Investments
During the year ended December 31, 2008, our capital expenditures for newly built property, plant and equipment were $90.4 million, compared to $117.8 million for the same period last year. During 2008, we also purchased certain assets of Nuex Wireline, Inc. and Diamondback Energy Holdings, LLC. The preliminary purchase price for these asset acquisitions totaled $241.0 million. At the end of 2008, we operated a fleet of 1,789 vehicles including high-tech customized pump trucks, blenders, frac vans, nitrogen pump and handling trucks, cement trucks as well as logging and perforating trucks and cranes. Our fleet size increased 68% over 2007 and at the end of 2008, we operated an aggregate of 430,000 horsepower.
We will host a conference call on Tuesday, March 3rd at 11:00 a.m. ET to review these results. To participate in the call, please dial 866-804-6924 and ask for the Superior Well Services, Inc. 2008 fourth quarter financial results conference call. The confirmation code for the meeting is 90742068. A replay of the call will be available through March 18th at 888-286-8010. The conference ID for the replay is 80522467. A simultaneous webcast of the call may be accessed over the Internet at www.swsi.com using the investor relations section of the website.
Superior Well Services, Inc. (Nasdaq: SWSI) is an oilfield services company operating in many of the major oil and natural gas producing regions in the United States.
(1) We define EBITDA as net income plus interest, taxes, non-cash stock compensation expense, depreciation and amortization. EBITDA is not a measure of financial performance under generally accepted accounting principles. You should not consider it in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA may not be comparable to other similarly titled measures of other companies. We have included EBITDA as a supplemental disclosure because its management believes that EBITDA provides useful information regarding our ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. We use EBITDA as a measure of operating performance, as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations, to assess compliance with financial ratios and covenants included in credit facilities, in communications with lenders concerning our financial performance and to evaluate the viability of potential acquisitions and overall rates of return. Please see the reconciliation of EBITDA to net income following the consolidated statement of income included in this press release.
Except for historical information, statements made in this press release, including those relating to acquisition or expansion opportunities, future earnings, cash flow and capital expenditures are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Superior expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by Superior based on management’s experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Superior’s control, which may cause Superior’s actual results to differ materially from those implied or expressed by the forward-looking statements. These risks include: a decrease in domestic spending by the oil and natural gas exploration and production industry; a decline in or substantial volatility of crude oil and natural gas commodity prices; current weakness in the credit and capital markets and lack of credit availability; overcapacity and competition in our industry; unanticipated costs, delays or other difficulties in executing our growth strategy, including difficulties associated with the integration of the Diamondback acquisition; the loss of one or more significant customers; the loss of or interruption in operations of one or more key suppliers; the incurrence of significant costs and liabilities in the future resulting from our failure to comply with new or existing environmental regulations or an accidental release of hazardous substances into the environment; and other factors detailed in our Securities and Exchange Commission filings. We undertake no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in our filings with the Securities and Exchange Commission, which are incorporated by reference.
SUPERIOR WELL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited, amounts in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
% %
2007 2008 change 2007 2008 change
Revenue $94,938 $161,706 70.3% $350,770 $520,889 48.5%
Cost of revenue 72,961 125,145 71.5% 252,539 406,044 60.8%
Gross profit 21,977 36,561 66.4% 98,231 114,845 16.9%
Selling, general
and 9,768 14,088 44.2% 36,390 45,702 25.6%
administrative
expenses
Operating income 12,209 22,473 84.1% 61,841 69,143 11.8%
Interest expense 105 1,958 282 2,834
Other income
(expense), net (35) 2 766 (135)
Income before
income taxes 12,069 20,517 70.0% 62,325 66,174 6.2%
Income taxes
Current 527 418 14,110 7,057
Deferred 4586 8,189 10,460 20,304
5,113 8,607 24,570 27,362
Net income $6,956 $11,910 71.2% $37,755 $38,812 2.8%
Earnings per
share:
Basic $0.30 $0.51 70.0% $1.63 $1.67 2.5%
Fully
diluted $0.30 $0.48 60.0% $1.63 $1.64 0.6%
Weighted
average
shares
outstanding:
Basic 23,103,687 23,154,166 23,100,402 23,150,463
Fully
diluted 23,149,773 24,588,949 23,195,914 23,661,608
Revenue by operating region (amounts in thousands):
Three Months Ended Year Ended
December 31, December 31,
Region 2007 2008 2007 2008
Appalachian $45,633 48.1% $43,791 27.1% $158,894 45.3% $179,173 34.4%
Southeast 17,479 18.4 29,992 18.5 66,690 19.0 92,971 17.8
Rocky
Mountain 7,041 7.4 17,509 10.8 31,558 9.0 60,281 11.6
Southwest 10,378 10.9 32,739 20.3 37,565 10.7 82,857 15.9
Mid-
Continent 14,407 15.2 37,675 23.3 56,063 16.0 105,607 20.3
Total $94,938 100.0% $161,706 100.0% $350,770 100.0% $520,889 100.0%
Revenue by service type (amounts in thousands):
Three Months Ended Year Ended
December 31, December 31,
2007 2008 2007 2008
Technical
pumping
services $84,727 89.2% $144,530 89.4% $304,949 86.9% $465,471 89.4%
Down-hole
surveying
services 10,211 10.8 10,855 6.7 45,821 13.1 49,097 9.4
Fluid
logistics - - 6,321 3.9 - - 6,321 1.2
Total
revenue $94,938 100.0% $161,706 100.0% $350,770 100.0% $520,889 100.0%
Supplemental data (amounts in thousands):
Three Months
Ended Year Ended
December 31, December 31,
2007 2008 2007 2008
Depreciation and amortization $7,649 $13,252 $25,277 $41,806
Capital expenditures 32,522 14,905 127,705 174,666
Non-GAAP Financial Measures:
The following table presents a reconciliation of EBITDA with our net income for each of the periods indicated (amounts in thousands):
Three Months Year
Ended Ended
December 31, December 31,
2007 2008 2007 2008
Reconciliation of
EBITDA to Net Income:
Net income $6,956 $11,910 $37,755 $38,812
Income tax expense 5,113 8,607 24,570 27,362
Interest expense 105 1,958 282 2,834
Stock compensation expense 511 641 1,961 2,522
Depreciation and amortization 7,649 13,252 25,277 41,806
EBITDA $20,334 $36,368 $89,845 $113,336
Posted by: yestelli on: March 3, 2009
LONDON, March 3 /PRNewswire-FirstCall/ — Following the meeting hosted by
the European Central Bank (ECB) in Frankfurt on 24 February 2009, ICE Clear
Europe(TM) confirmed its commitment to working closely with its regulators and
the industry to provide a leading central counterparty for European credit
default swap (CDS) contracts. ICE Clear Europe is a wholly-owned subsidiary
of IntercontinentalExchange, a leading operator of regulated global futures
exchanges and over-the-counter markets.
“We recognize the importance of a European regulated central counter party
for CDS given the key role of European banks in the global CDS market,” said
Paul Swann, President and COO of ICE Clear Europe. “We are leveraging our
domain knowledge in credit derivatives and over-the-counter clearing, and
working together with regulators and market participants to deliver a solution
that meets the requirements of the European market.”
ICE Clear Europe, which is regulated by the U.K. Financial Services
Authority, anticipates a first-half 2009 launch for CDS clearing, subject to
regulatory approval. ICE Clear Europe will establish a segregated risk pool,
including guaranty fund and margin accounts, and dedicated risk management
systems for the European CDS market, with the objective of bringing a common
infrastructure to market participants.
About IntercontinentalExchange
IntercontinentalExchange(R) (NYSE: ICE) operates regulated global futures
exchanges and over-the-counter (OTC) markets for agricultural, energy, equity
index and currency contracts, as well as credit derivatives. ICE(R) offers
these markets to participants around the world through its technology
infrastructure and trading platform, together with clearing, market data and
risk management services. ICE Futures Europe(R) is ICE’s regulated energy
futures exchange. ICE’s regulated North American exchanges, ICE Futures
U.S.(R) and ICE Futures Canada(R), offer markets for agricultural and
financial contracts. Creditex, a market leader in trade execution and
processing for credit derivatives, is also a wholly-owned subsidiary of ICE. A
member of the Russell 1000(R) and S&P 500 indices, ICE is headquartered in
Atlanta, with offices in New York, London, Chicago, Winnipeg, Calgary, Houston
and Singapore. www.theice.com .
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995 – Statements in this press release regarding
IntercontinentalExchange’s business that are not historical facts are
“forward-looking statements” that involve risks and uncertainties. For a
discussion of additional risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking statements, see
ICE’s Securities and Exchange Commission (SEC) filings, including, but not
limited to, the risk factors in ICE’s Annual Report on Form 10-K for the year
ended December 31, 2008, as filed with the SEC on February 11, 2009.
Posted by: yestelli on: March 3, 2009
LAS VEGAS, Feb. 23 /PRNewswire-FirstCall/ — Senior management of Southwest Gas Corporation (NYSE: SWX) is holding a conference call to discuss the Southwest 2008 fourth quarter and year-end results on Tuesday, March 3, 2009.
The conference call will follow the release of Southwest earnings results on Thursday, February 26, 2009.
The call will also be webcast live on Southwest website at www.swgas.com.
Date: TUESDAY, MARCH 3, 2009
Time: 1:00 P.M. (ET)
Telephone number: (800) 901-5213
International telephone number: (617) 786-2962
Passcode: 78503946
A digital replay of the call can be accessed beginning at 3:00 p.m. (ET) on March 3, 2009 by dialing (888) 286-8010 or (617) 801-6888 for international calls; passcode: 38980313. The replay and webcast will be available through the close of business on Friday, March 13, 2009.
(Southwest Gas recommends the free download of Windows Media(R) Player 10 Series found at http://www.microsoft.com/windows/windowsmedia/default.aspx and at least a 56 kbps connection to the Internet. If you have “pop-up” blocking software installed, please press the CTRL key when you click the Register button. Please contact your network operations group if you are unable to override this feature.)
Posted by: yestelli on: March 3, 2009
DENVER, March 2 /PRNewswire-FirstCall/ — Petroleum Development Corporation (Nasdaq: PETD) today reported net income for the year ended December 31, 2008 of $113.3 million, or $7.63 per diluted share, compared with December 31, 2007 net income of $33.2 million, or $2.24 per diluted share. Fourth quarter 2008 net income was $41.1 million, or $2.78 per diluted share, while net income for the same period ending December 31, 2007 was $8.2 million, or $0.55 per diluted share. Adjusted cash flow from operations (defined as cash flow from operations before changes in assets and liabilities, a non-GAAP measure) increased to $200.1 million for the year ended 2008 compared to $95.6 million in 2007, an increase of 109%. Adjusted cash flow from operations for the fourth quarter 2008 was $41.4 million, compared to the same period 2007 of $27.4 million, an increase of 51%.
Oil and natural gas sales from the Company’s producing properties for 2008 were up 83.7% to $321.9 million, an increase of $146.7 million over the prior year’s $175.2 million. Additionally, for the year ending December 31, 2008, the Company recognized a $127.8 million oil and gas price risk management gain versus a $2.8 million gain for the year ending December 31, 2007. For the fourth quarter 2008, oil and natural gas sales from the Company’s producing properties were $56.3 million. This compares to $57.5 million for the same period of 2007. Oil and gas price risk management gain in the fourth quarter 2008 was $102.5 million, compared to a $1.7 million loss in the same period of 2007. The increase in the gain for oil and gas price risk management for the year and quarter, ended December 31, 2007, was due to the decline in oil and gas commodities’ future prices during the latter portion of the year.
Total 2008 annual production increased 38% to 38.7 Bcfe, compared to 28.0 Bcfe in 2007. Growth in 2008 was 100% organic from development of our existing core operating areas. Fourth quarter 2008 production increased 11% to 11.3 Bcfe compared to third quarter 2008 production of 10.2 Bcfe. During 2008 the Company drilled 333 total net wells compared to 276 total net wells drilled in 2007. The 2008 total was comprised of 312 development wells drilled and 21 exploratory wells drilled. Eight of the development wells and ten of the exploratory wells were dry holes. Five remaining exploratory wells are pending final determination. The 2008 drilling program increased proved reserves 10% to 753 Bcfe at December 31, 2008, compared to 686 Bcfe at December 31, 2007. For the year ended December 31, 2008, reserve growth provided by the drill bit was 139.3 Bcfe, reduced by 38.7 Bcfe of production and downward revisions to previous estimates of 34.4 Bcfe. The revision was due primarily to the decrease in commodity prices at year-end 2008 compared to hedges in place.
Comparative Results Three Months Ended Year Ended
(In thousands, except per share December 31, December 31,
amounts)
2008 2007 2008 2007
Revenues $195,406 $95,103 $609,360 $305,235
Net income $41,053 $8,198 $113,309 $33,209
Basic earnings per common share $2.78 $0.56 $7.69 $2.25
Diluted earnings per common share $2.78 $0.55 $7.63 $2.24
Richard W. McCullough, Chairman and Chief Executive Officer stated, “The company posted solid gains in operating income, production and cash flow metrics. While we hope to see a recovery in the current depressed financial market and commodity price environment, we believe the company is poised to weather the current difficult operating conditions.”
Financial Results
Full Year 2008 Results:
Net income for the year ended December 31, 2008 increased considerably to $113.3 million compared to $33.2 million for the respective 2007 period. This increase was due primarily to record production for the year, favorable commodity prices for the first half of 2008, and gains from oil and gas price risk management activities during the second half of 2008. Revenue for 2008 includes a $140.3 million contribution from sales from natural gas marketing activities versus $103.6 million for 2007, and a net gain of $127.8 million from oil and gas price risk management activities versus $2.8 million for 2007. The increase in the oil and gas price risk management gain was due to an increase in the mark-to-market value of the hedging contracts in place at December 31, 2008. EBITDA (defined as net income, plus interest (net), income taxes and DD&A, a non-GAAP measure) increased from $131.7 million in 2007 to $306.9 million in 2008, due primarily to record production for the year, favorable commodity prices for the first half of 2008, and gains from oil and gas price risk management activities during the second half of 2008.
The Company’s exploratory expense increased from $23.6 million in 2007 to $45.1 million in 2008 as a result of impairments of both proved and unproved exploratory properties, due in part to lower prices. Depreciation, depletion and amortization expense for the year increased to $104.6 million from $70.8 million in 2007 due to increased production. General and administrative expense increased to $37.7 million in 2008 from $31.0 million in the previous year, due to increased payroll and payroll related expenses which included $4.7 million related to agreements with former executive officers. Interest expense increased to $28.1 million from $9.3 million in 2007 as a result of higher outstanding balances on our credit facility and the issuance of our 12% senior notes, offset by lower average interest rates on our bank credit facility.
Fourth Quarter 2008 Results:
Net income for the fourth quarter 2008 was $41.1 million compared to the respective fourth quarter 2007 results of $8.2 million. This increase is primarily due to increased production and gains from oil and gas price risk management activities during the quarter. The fourth quarter 2008 gain from oil and gas price risk management activities was $102.5 million versus a loss of $1.7 million in the fourth quarter of 2007. The increase in the oil and gas price risk management gain was due to an increase in the mark-to-market value of the hedging contracts in place at December 31, 2008. EBITDA increased 185% for the fourth quarter to $106.9 million in 2008 from $37.5 million in 2007, primarily due to increased production and gains from oil and gas price risk management activities during the quarter.
The Company’s exploratory expense increased from $8.8 million in the fourth quarter 2007 to $27.1 million in the fourth quarter 2008 as a result of impairments of both proved and unproved properties. Depreciation, depletion and amortization expense for the 2008 fourth quarter increased to $32.7 million, from $20.0 million in the respective quarter 2007, due to increased production. General and administrative expense increased to $10.6 million in the fourth quarter 2008 from $9.1 million in the same period of 2007 due to increased payroll and payroll related expenses. Interest expense increased to $9.0 million in the fourth quarter 2008, from $4.5 million in the same period of 2007, as a result of higher outstanding balances on our credit facility, and the issuance of our 12% senior notes offset by lower average interest rates on our bank credit facility.
The following tables show the calculation of adjusted cash flow from operations and EBITDA for the fourth quarters and the years ended 2008 and 2007:
Reconciliation of Net Cash Provided by Operating Activities to
Adjusted Cash Flow
From Operations - a non-GAAP measure
(See explanation of non-GAAP measure.)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
Net Cash provided by Operating
Activities $35,309 $93,104 $139,101 $60,304
Changes in Assets and Liabilities
Related to Operations 6,087 (65,739) 60,998 35,322
Adjusted Cash Flow from
Operations $41,396 $27,365 $200,099 $95,626
Weighted average diluted shares
outstanding 14,791 14,859 14,848 14,841
Adjusted cash flow from
operations, per diluted share $2.80 $1.84 $13.48 $6.44
Reconciliation of Net Income to EBITDA - a non-GAAP measure
(See explanation of non-GAAP measure.)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
Net Income $41,053 $8,198 $113,309 $33,209
Interest, net 8,895 3,851 27,541 6,617
Income Taxes 24,237 5,470 61,459 20,981
Depreciation 32,694 19,987 104,575 70,844
EBITDA $106,879 $37,506 $306,884 $131,651
Weighted average diluted shares
outstanding 14,791 14,859 14,848 14,841
EBITDA per share (fully diluted) $7.23 $2.52 $20.67 $8.87
Operations
The 2008 operations were focused in our three primary geographic regions:
Rocky Mountain Region: The Rocky Mountain Region includes our Colorado, Kansas, North Dakota, and Wyoming operations. The region is divided into four operating areas; (1) Wattenberg Field, (2) Grand Valley Field, (3) NECO area, and (4) North Dakota. The Rocky Mountain Region includes approximately 320,000 gross acres of leasehold and approximately 2,408 gross oil and natural gas wells in which we own an interest (approximately 95% are operated by the Company).
Wattenberg Field, DJ Basin, Weld and Adams Counties, Colorado. We currently own an interest in 1,390 gross, 875.2 net, oil and natural gas wells. Our leasehold position encompasses approximately 75,900 gross acres with approximately 24,000 net undeveloped acres remaining as of December 31, 2008. We drilled 149 gross, 122.7 net wells in the area in 2008 and produced approximately 15.4 Bcfe net to our interests. Wells drilled in the area range from approximately 7,000 to 8,000 feet in depth and generally target oil and gas reserves in the Niobrara, Codell and J Sand reservoirs. Well spacing ranges from 20 to 40 acres per well. Operations in the area, in addition to the drilling of new development wells, includes the refrac of Codell and Niobrara reservoirs in existing wellbores whereby the Codell sandstone reservoir is fraced a second time and/or initial completion attempts are made in the slightly shallower Niobrara carbonate reservoir.
Grand Valley Field, Piceance Basin, Garfield County, Colorado. We currently own an interest in 285 gross, 158.3 net, oil and natural gas wells. Our leasehold position encompasses approximately 7,900 gross acres with approximately 5,200 net undeveloped acres remaining for development as of December 31, 2008. We drilled 62 gross, 54.4 net wells in the area in 2008 and produced approximately 12.5 Bcfe net to our interests. Development wells drilled in the area range from 7,000 to 9,500 feet in depth and the majority of wells are drilled directionally from multi-well pads ranging from two to eight or more wells per drilling pad. The primary target in the area is gas reserves developed from multiple sandstone reservoirs in the Mesaverde Williams Fork formation. Well spacing is approximately ten acres per well.
NECO area – DJ Basin, Yuma County Colorado and Cheyenne County, Kansas. We currently own an interest in 717 gross, 504.0 net, natural gas wells. Our leasehold position encompasses approximately 141,600 gross acres with approximately 93,200 net undeveloped acres remaining for development as of December 31, 2008. We drilled 98 gross, 88.1 net wells in the area in 2008 and produced approximately 5 Bcfe net to our interests. Wells drilled in the area range from approximately 1,500 to 3,000 feet in depth and target gas reserves in the shallow Niobrara reservoir. Well spacing is approximately 40 acres per well. New drilling operations range from exploratory wells to test undrilled, seismically defined, structural features at the Niobrara horizon, to development wells targeting known reserves in existing identified features.
North Dakota, Burke County. We currently own an interest in 13 gross, 3.7 net oil and natural gas wells. Our leasehold encompasses two project areas in Burke County of approximately 75,100 gross acres with approximately 46,300 net undeveloped acres remaining for development as of December 31, 2008. The eastern area acreage is prospective for development of oil and gas reserves in the Nesson Formation. Nesson development wells are approximately 6,000 feet in depth with single or multiple horizontal legs to 4,000 feet or more in length for a measured length of 10,000 feet or more per leg. The westernmost acreage block is undeveloped and includes approximately 23,600 gross, 16,200 net acres. The western project targets exploratory horizontal drilling to the Midale/Nesson/Bakken Formation at depths of approximately 6,800 feet with a lateral leg component of up to 6,100 feet. In 2009, pursuant to a third party arrangement, we plan to drill up to four exploratory Bakken wells on our acreage with minimal capital obligation on our part in exchange for an interest in the acreage position.
Appalachian Basin: The Appalachian Basin includes our West Virginia, Pennsylvania, New York and Tennessee operations, in which we own an interest in approximately 2,090 gross, 1,566.4 net oil and natural gas wells. Our leasehold position encompasses approximately 140,300 gross acres with approximately 19,400 net undeveloped acres remaining for development as of December 31, 2008. We drilled 63 gross/net wells in the area in 2008 and produced approximately 3.9 Bcfe net to our interests. The majority of our Appalachian leasehold is Devonian and Mississippian aged tight sandstone reservoirs. We are currently evaluating the potential of the Marcellus Formation in West Virginia and Pennsylvania and have drilled three tests to date in West Virginia.
Michigan Basin: We own an interest in approximately 210 gross, 146.5 net oil and natural gas wells that produced 1.6 Bcfe net to our interest in 2008. Wells in the area range from 1,000 to 2,500 feet in depth and produce gas from the Antrim Shale. We drilled 2 gross and 1.6 net exploratory dry hole wells in 2008.
Other – Texas and Wyoming: In addition to the operating areas above, we have an interest in approximately 12,500 gross, 9,100 net undeveloped acres in Ft. Worth Basin, northeastern Erath County, Texas. The leasehold acreage is prospective for the development of oil and natural gas reserves in the Barnett Shale formation at depths of approximately 5,000 feet. Development is typically with a horizontal component of approximately 3,000 feet or more, resulting in an approximate measured length of up to 8,000 feet or more in this area. In 2008 we commenced drilling operations and drilled three exploratory Barnett wells. These wells generated less than 1% of our 2008 production. Based on these results, we recorded impairments of both proved and unproved properties in this area in 2008. We are currently evaluating our future plans in this area and currently have no drilling activity planned in 2009.
Drilling Activity
The Company drilled 379 gross wells during 2008 representing an increase of 8.6% over the prior year. The Company’s drilling activities continued to be focused in its Rocky Mountain Region. In addition to the drilling of the new wells, the Company recompleted (including refracs) 125 wells in 2008 compared to 181 in 2007.
Wells Drilled
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
Gross Net Gross Net Gross Net Gross Net
Appalachian Basin 27 27 4 4.0 63 63.0 8 8.0
Michigan 0 0.0 1 1.2 2 1.6 3 3.0
Rocky Mountain Region:
Wattenberg 33 31.4 49 26.6 149 122.7 158 106.1
Piceance 12 12.0 12 5.1 62 54.4 53 41.7
NECO 10 9.9 17 17.1 98 88.1 123 115.0
North Dakota 0 0.1 1 0.9 2 0.6 3 1.5
Total Rocky Mountain
Region 55 53.4 79 49.7 311 265.8 337 264.3
Fort Worth Basin 0 0.0 1 1.0 3 3.0 1 1.0
Total Wells Drilled 82 80.4 85 55.9 379 333.4 349 276.3
Average Costs Related to Oil and Gas Drilling (per Mcfe)
Three Months Ended Year Ended
December 31 December 31
2008 2007 2008 2007
Average lifting costs $1.09 $0.94 $1.07 $0.90
Exploration expense (less
impairment) $0.40 $0.79 $0.50 $0.72
Depreciation, depletion and
amortization (oil and gas
properties only) $2.73 $2.10 $2.51 $2.37
Oil and Gas Sales and Production
Production for the year ended December 31, 2008 increased 38% above volumes for the same period in 2007. Oil and natural gas sales from the Company’s producing properties for 2008 were up 83.7% to $321.9 million compared to $175.2 million for the prior year, an increase of $146.7 million. The revenue increase was related to the Company’s record 2008 production based on success with drilling and recompletions in our core operating areas, combined with derivative positions set in place which helped protect the Company from the overall decline in market prices.
The following table summarizes production by area of operation, as well as the average sales price for the years 2008 and 2007, excluding both realized and unrealized derivative gains or losses.
Three Months Ended Year Ended
December 31, December 31,
2008 2007 Percent 2008 2007 Percent
Natural Gas (Mcf)
Appalachian
Basin 1,006,684 820,147 22.7% 3,902,183 2,711,300 43.9%
Michigan Basin 452,325 414,969 9.0% 1,609,984 1,678,155 -4.1%
Rocky Mountains 7,857,772 5,789,002 35.7% 26,247,625 18,123,851 44.8%
Total 9,316,781 7,024,118 32.6% 31,759,792 22,513,306 41.1%
Average Sales
Price $4.21 $5.62 -25.1% $6.98 $5.33 31.0%
Oil (Bbls)
Appalachian Basin 1,518 1,674 -9.3% 6,623 5,490 20.6%
Michigan Basin 694 1,316 -47.3% 3,469 4,301 -19.3%
Rocky Mountains 324,013 240,310 34.8% 1,150,316 900,261 27.8%
Total 326,225 243,300 34.1% 1,160,408 910,052 27.5%
Average Sales
Price $52.14 $74.00 -29.5% $89.77 $60.65 48.0%
Natural Gas
Equivalents (Mcfe)*
Appalachian
Basin 1,015,792 830,191 22.4% 3,941,921 2,744,240 43.6%
Michigan Basin 456,489 422,865 8.0% 1,630,798 1,703,961 -4.3%
Rocky Mountains 9,801,850 7,230,862 35.6% 33,149,521 23,525,417 40.9%
Total 11,274,131 8,483,918 32.9% 38,722,240 27,973,618 38.4%
Average Sales
Price $4.99 $6.78 -26.4% $8.42 $6.26 48.0%
* One barrel of oil is equal to the energy equivalent of six Mcf of
natural gas.
Oil and Gas Derivative Activities
We use various derivative instruments to manage fluctuations in oil and natural gas prices. We have in place a series of collars, fixed price swaps and basis swaps on a portion of our oil and natural gas production. Under the collar arrangements, if the applicable index rises above the ceiling price or swap, we pay the counterparty; however, if the index drops below the floor or swap, the counterparty pays us. Our production volumes for the quarter ended December 31, 2008, were 326,000 Bbls of oil and 9.3 Bcf of natural gas. Our hedging counterparties are all current or past members of our bank group for our revolver. A complete listing of the Company’s derivative positions is included in the Company’s Form 10-K, available at the Company’s website at www.petd.com.
Non-GAAP Financial Measures
This release refers to “Adjusted cash flow from operations” and “EBITDA” both of which are non-GAAP financial measures. Adjusted cash flow from operations is the cash flow earned or incurred from operating activities without regard to the collection or payment of associated receivables or payables. The Company believes it is important to consider Adjusted cash flow from operations separately, as the Company believes it can often be a better way to discuss changes in operating trends in its business caused by changes in production, prices, operating costs, and related operational factors, without regard to whether the earned or incurred item was collected or paid during that year. The Company also uses this measure because the collection of its receivables or payment of its obligations has not been a significant issue for the Company’s business, but merely a timing issue from one period to the next, with fluctuations generally caused by significant changes in commodity prices. EBITDA is a non-GAAP measure calculated by adding net income, interest (net), income taxes, and depreciation, depletion and amortization for the period. Management believes EBITDA is relevant because it is a measure of cash available to fund the Company’s capital expenditures and service its debt and is a widely used industry metric which allows comparability of our results with our peers. Adjusted cash flow from operations and EBITDA are not measures of financial performance under GAAP and should be considered in addition to, not as a substitute for, cash flows from operations, investing, or financing activities, nor as a liquidity measure or indicator of cash flows reported in accordance with U.S. GAAP.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
(in thousands, except per share data)
Revenues:
Oil and gas sales $56,260 $57,488 $321,877 $175,187
Sales from natural gas
marketing activities 32,625 31,779 140,263 103,624
Oil and gas well drilling
operations 413 4,812 7,615 12,154
Well operations and pipeline
income 3,328 2,660 11,474 9,342
Oil and gas price risk
management gain (loss), net 102,544 (1,686) 127,838 2,756
Other income 236 50 293 2,172
Total revenues 195,406 95,103 609,360 305,235
Costs and expenses:
Oil and gas production and well
operations costs 17,089 15,956 78,209 49,264
Cost of natural gas marketing
activities 32,624 30,482 139,234 100,584
Cost of oil and gas well
drilling operations 1,116 949 2,213 2,508
Exploration expense 27,143 8,756 45,105 23,551
General and administrative
expense 10,555 9,145 37,715 30,968
Depreciation, depletion and
amortization 32,694 19,987 104,575 70,844
Total costs and expenses 121,221 85,275 407,051 277,719
Gain on sale of leaseholds - 7,691 - 33,291
Income from operations 74,185 17,519 202,309 60,807
Interest income 94 603 591 2,662
Interest expense (8,989) (4,454) (28,132) (9,279)
Income before income taxes 65,290 13,668 174,768 54,190
Provision for income taxes 24,237 5,470 61,459 20,981
Net income $41,053 $8,198 $113,309 $33,209
Basic earnings per common share $2.78 $0.56 $7.69 $2.25
Diluted earnings per common share $2.78 $0.55 $7.63 $2.24
Fourth Quarter and Year-End 2008 Earnings Conference Call
The Company will host a conference call with investors to discuss fourth quarter and year-end 2008 results. The Company invites you to join Richard W. McCullough, Chairman and CEO, Gysle R. Shellum, Chief Financial Officer, and Barton R. Brookman, Senior Vice President – Exploration and Production, for a conference call on Tuesday, March 3, 2009, for a discussion of the results.
What: Petroleum Development Corporation 2008 Earnings Conference Call
When: Tuesday, March 3, 2009, at 11:00 a.m. Eastern Standard Time
How: Log on to the web site at www.petd.com, or dial-in:
Domestic (toll free) at 877.407.8031
International at 201.689.8031
Replay Numbers:
Domestic (toll free) at 877.660.6853
International at 201.612.7415
Account #: 286, Conference ID #: 313436
A replay of the call will be available through Friday, March 13, 2009.
Contact: Marti Dowling, Manager – Investor Relations, 303.831.3926, mdowling@petd.com
About Petroleum Development Corporation
Petroleum Development Corporation (www.petd.com) is an independent energy company engaged in the development, production and marketing of natural gas and oil. Its operations are focused in the Rocky Mountains with additional operations in the Appalachian Basin and Michigan. PDC is included in the S&P SmallCap 600 Index and the Russell 3000 Index of Companies.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding our business, financial condition, results of operations and prospects. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements herein, which include statements of estimated oil and natural gas production and reserves, drilling plans, future cash flows, anticipated liquidity, anticipated capital expenditures and our management’s strategies, plans and objectives. However, these are not the exclusive means of identifying forward-looking statements herein. Although forward-looking statements contained in this report reflect our good faith judgment, such statements can only be based on facts and factors currently known to us. Consequently, forward-looking statements are inherently subject to risks and uncertainties, including risks and uncertainties incidental to the exploration for, and the acquisition, development, production and marketing of, natural gas and oil, and actual outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Important factors that could cause actual results to differ materially from the forward looking statements include, but are not limited to:
Further, we urge you to carefully review and consider the disclosures made in our Form 10-K, including the risks and uncertainties that may affect our business as described under Item 1A, Risk Factors, and our other filings with the Securities and Exchange Commission. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this report. We undertake no obligation to update any forward-looking statements in order to reflect any event or circumstance occurring after the date of this report or currently unknown facts or conditions or the occurrence of unanticipated events.
Posted by: yestelli on: March 2, 2009
RAPID CITY, S.D., March 2 /PRNewswire-FirstCall/ — Black Hills Corp. (NYSE: BKH) utility subsidiary Black Hills Power announced that the South Dakota Public Utilities Commission approved its proposed Energy Cost Adjustment rate increase. The new rate, effective March 1, 2009, will impact the electric utility’s South Dakota customers.
The impact to the average residential customer is an increase of about $1.68 per month or about $20.00 a year. According to the cost-sharing formula approved by the SDPUC, Black Hills Power absorbs the first $2 million in increased costs and both South Dakota customers and Black Hills Power share in absorbing costs above that amount. The increase helps the company recoup a portion of the $6.4 million increase in operating costs incurred during the period Jan. 1, 2008 through December 31, 2008.
“The ECA is necessary to help offset the increasing costs required to deliver safe, reliable electric service to our customers,” said Chuck Loomis, Vice President of Operations for Black Hills Power. “Power providers are exposed to volatile fuel and purchased power prices and mining expenses, in addition to the cost of operating transmission systems required to serve the growing energy needs of our customers.”
ABOUT BLACK HILLS CORPORATION
Black Hills Corp. – a diversified energy company with a tradition of exemplary service and a vision to be the energy partner of choice – is based in Rapid City, S.D., with corporate offices in Golden, Colo., and Omaha, Neb. The company serves 750,000 utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company’s non-regulated businesses generate wholesale electricity, produce natural gas, oil and coal, and market energy. We partner to produce results that improve life with energy. More information is available at www.blackhillscorp.com.
ABOUT BLACK HILLS POWER
Black Hills Power is the legacy business of Black Hills Corp. and has been delivering energy for more than 125 years. The electric utility serves 65,400 customers in 20 communities in western South Dakota, northeastern Wyoming and southeastern Montana. More information is available at www.blackhillspower.com.
Posted by: yestelli on: March 2, 2009
CEGT to expand capacity on pipeline from East Texas to Perryville Hub(SM)
HOUSTON, March 2 /PRNewswire-FirstCall/ — CenterPoint Energy Gas Transmission Company (CEGT), an indirect, wholly-owned interstate natural gas pipeline subsidiary of CenterPoint Energy, Inc. (NYSE: CNP), has executed a definitive agreement with Chesapeake Energy Marketing, Inc (CEMI), a wholly-owned subsidiary of Chesapeake Energy Corporation (NYSE: CHK) (Chesapeake), to transport Chesapeake’s growing Haynesville shale natural gas production.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020930/CNPLOGO)
CEGT owns and operates a 1.55 billion cubic feet per day Carthage to Perryville pipeline (Line CP). CEGT and CEMI have entered into two separate firm agreements to transport gas on both a forward haul basis to CEGT’s Perryville Hub(SM) in northern Louisiana and a backhaul to Carthage, Texas.
A 27 month backhaul agreement provides for gas volumes to ramp up to 500 million cubic feet per day of firm transportation capacity, with initial gas flows beginning effective April 1, 2009.
The long term firm forward haul agreement provides for 230 million cubic feet per day of transportation capacity, effective when CEGT’s Phase IV Line CP compression expansion goes into service, currently projected for April, 2010. CEGT’s application for FERC approval of the Phase IV expansion has been filed.
To fulfill the forward haul requirements of the Agreement, CEGT will add a new compressor to each of the existing Line CP compressor stations at Westdale and Vernon. The expansion will add approximately 274 million cubic feet per day of capacity to CEGT’s Line CP pipeline, bringing the total year-round capacity to more than 1.8 billion cubic feet per day.
“We are pleased that CenterPoint Energy can move quickly to meet this opportunity for Chesapeake, enabling these significant production volumes from the Haynesville Shale to immediately move to market,” said C. Gregory Harper, Senior Vice President and Group President of CenterPoint Energy’s pipeline group. “We believe that our Line CP and Perryville Hub(SM), which are well positioned to provide access to numerous markets in the Midwest and Northeast, were key to ultimately executing this agreement.”
“Chesapeake continues to steadily grow our production volumes across the Haynesville region. This Agreement is yet another big step in securing the firm transportation needed to access the compelling markets of the eastern U.S.,” said Aubrey K. McClendon, Chief Executive Officer of Chesapeake.
“The Phase IV expansion is advancing through the FERC certificate process and we are moving forward with the procurement, contracting, permitting and other elements to place these facilities in service by April, 2010,” said Harper.
CEGT previously held an open season to solicit interest in an expansion of Line CP’s capacity. CEGT is evaluating proposals for the remaining 44 million cubic feet per day capacity in the Phase IV expansion, and expects to execute definitive service agreements before the project is placed in-service in 2010.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines, and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total over $19 billion. With about 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at www.CenterPointEnergy.com.
Chesapeake Energy Corporation is the largest independent producer of natural gas in the U.S. Headquartered in Oklahoma City, the company’s operations are focused on exploratory and developmental drilling and corporate and property acquisitions in the Barnett Shale, Haynesville Shale, Fayetteville Shale, Marcellus Shale, Anadarko Basin, Arkoma Basin, Appalachian Basin, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast and East Texas regions of the United States. Further information is available at www.chk.com.
This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future events and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the financial performance of CenterPoint Energy, the timing and impact of future regulatory decisions, and other factors discussed in CenterPoint Energy’s Form 10-K for the period ended December 31, 2008, and other filings with the SEC.
Posted by: yestelli on: March 2, 2009
WASHINGTON, March 2 /PRNewswire-FirstCall/ — Mitigating climate change, addressing the increased demand for energy and discovering solutions for reducing energy use in buildings are forming the agenda of the Alliance to Save Energy’s Great Energy Efficiency Day on March 4.
Themed “Unlocking the Keys to Energy Efficiency,” the Alliance to Save Energy has invited public and private sector leaders to Capitol Hill, including Larry Wash, global President of service, contracting and parts for Trane.
Because of the presence Trane has throughout the state of Tennessee with manufacturing, sales, service and parts retail centers, Wash has been asked to introduce the Honorable Zach Wamp, U.S. House of Representatives (R-TN), a 12-year veteran of the House Energy and Water Subcommittee.
Wash will preview Wamp’s “Unsung Hero Award” presentation with brief remarks about the opportunities to make existing buildings in Tennessee and throughout the United States more energy and operationally efficient.
Details of his remarks are
Alliance to Save Energy's Great Energy Efficiency Day
Where: Dirksen Senate Office Building, Room G-50, Capitol Hill,
Washington, D.C.
When: March 4 from 9:30 a.m. to 3:00 p.m.
Wash is available for media interviews upon request and appointment.
“Existing buildings currently consume one-third of the world’s energy and global energy consumption is projected to increase 60 percent by 2030,(1)” said Wash. “The Great Energy Efficiency Day is an important opportunity for public and private sector leaders to work together on real, practical solutions to address energy use in buildings with real bottom line impact.”
Wash will join an impressive line-up of speakers including the new U.S. Secretary of Energy Dr. Steven Chu, Senator Jeff Bingaman (D-NM), Rep. Michael Burgess (R-Tex.), Senator John F. Kerry (D-Mass.), Senator Mark Pryor (D-Ark.), Rep. Paul Tonko (D-NY), and Rep. Henry Waxman (D-Calif).
The Great Energy Efficiency Day has become a “must attend” discussion on the need for, and benefits of, energy efficiency, drawing stakeholders from business, industry, government, academia, the media and the public interest sector.
The event features the leading energy voices in energy efficiency addressing timely issues and provides insight from Capitol Hill with keynote addresses from congressional members.
(1) Energy Information Administration, a statistical agency of the U.S. Department of Energy
About Larry Wash
Wash has responsibility for the profit and loss of global service, contracting and parts for Trane which includes service operations in 60 countries, more than 300 parts retail stores and 5,000 of the industry’s best associates.
Wash leads the Performance Contracting Energy Services business, which performs energy audits and enables building owners to use future energy and operational savings to finance infrastructure improvement projects.
In this role, Wash delivers high performance building solutions to executives and owners around the world that deliver a strong financial return on investment, and make their buildings more operationally and energy efficient. This includes services ranging from Intelligent Building Services, remote diagnostics, performance and turnkey contracting, predictive maintenance services, and aftermarket parts.
About The Alliance to Save Energy
The Alliance to Save Energy is a coalition of prominent business, government, environmental, and consumer leaders who promote the efficient and clean use of energy worldwide to benefit consumers, the environment, economy, and national security.
Founded in 1977 by Senators Hubert H. Humphrey (D-MN) and Charles H. Percy (R-IL), the Alliance to Save Energy has since amassed a solid track record in unifying the public and private sectors to promote a sustainable energy future. Through its Alliance Associates Program, the Alliance partners with businesses, like Trane, non-profit organizations, trade organizations and others to promote greater investment in energy efficiency as a primary means of achieving the nation’s environmental, economic, national security and affordable housing goals.
About Trane
Trane, a business of Ingersoll Rand, improves the performance of homes and buildings around the world. Trane solutions optimize indoor environments with a broad portfolio of energy efficient heating, ventilating and air conditioning systems, building and contracting services, parts support and advanced controls for homes and commercial buildings. For more information, visit www.trane.com.
Posted by: yestelli on: March 2, 2009
RMI’s Energy and Resources Team (ERT) implements advanced resource planning process that helps guide energy investment options that are sustainable and cost-effective.
SNOWMASS, Colo., March 2 /PRNewswire-USNewswire/ — Rocky Mountain Institute (RMI) today published its Energy and Resource Investment Strategy (ERIS), a breakthrough approach to energy planning. Additionally, the newly launched ERIS website contains a case study exploring how ERIS was successfully applied to RMI’s work with the City of Palo Alto Utilities (CPAU), in California.
RMI’s Energy and Resource Investment Strategy (ERIS) shows utilities and regulators how energy efficiency and other demand-side solutions can compete with conventional energy supply resources to meet consumer energy demands. This advanced resource planning process helps guide energy investment options that are the most sustainable and cost-effective, and provide a viable alternative to large-scale central electricity generation.
According to Kitty Wang, ERIS project manager at RMI: “Utilities today are being directed to look harder than ever at energy efficiency and renewable energy to meet their customers’ electric needs. RMI’s ERIS approach allows a utility to examine these alternatives systematically, including financing and implementation options, to also meet their environmental goals.”
Today, most electric utilities do not adequately consider or value efficiency and other distributed resources in their long-term planning. RMI’s Energy Resources Team points out that in light of new policies and regulation facing utilities, the need for right-sized and low-cost, reliable systems is essential.
The goal of the ERIS process is to integrate all supply-side and demand-side energy resources into a coherent, practical plan that meets goals and optimizes reliability, cost, and security of the electrical system. Eight steps, from defining goals and collecting data to integrated strategy, are described in detail at http://ert.rmi.org/eris/index.html.
Specifically utilizing this process, RMI worked with the city of Palo Alto, CA to develop an integrated utility resource plan. ERIS gave City of Palo Alto Utilities (CPAU) insight into the type and amount of resources needed to meet its needs. Utilizing this step-by-step whole systems approach, RMI achieved the most efficient, reliable, adaptable, risk-adverse and cost-effective electrical system possible for Palo Alto, CA.
You can follow the detailed case study and the successful application of the Energy Resource Investment Strategy at http://ert.rmi.org/eris/index.html
For more information, or to schedule an interview with RMI’s Energy & Resources Team project manager Kitty Wang or Consultant Luisa Lombera, please contact Cory Lowe at 970-927-7345 office, 970-376-2911 cell, or clowe@rmi.org.
Rocky Mountain Institute is an independent, nonpartisan, entrepreneurial, nonprofit “think-and-do tank.” It fosters the efficient and restorative use of resources to make the world secure, just, profitable, and life-sustaining. For more information, visit www.rmi.org.
Posted by: yestelli on: March 2, 2009
NANJING, China, March 2 /PRNewswire-Asia/ — China Sunergy Co., Ltd.
(Nasdaq: CSUN), a specialized solar cell manufacturer based in Nanjing, China,
today announced that it has entered into a solar cell sales agreement with
asola Advanced and Automotive Solar System GmbH (“asola”), a German solar
module manufacturing company. Under the terms of the contract, China Sunergy
will supply a total volume of between 10MW and 30MW of solar cells to asola
from February to December of 2009.
Pricing and quantity are fixed for the first half of 2009, while the
transaction details for the second half are subject to further negotiations.
“We are delighted to be signing another solar cell sales agreement with
asola, and believe that this relationship will only strengthen in the coming
years,” remarked Dr. Ruennsheng Allen Wang, Director and CEO of China Sunergy.
“We will continue to actively build strategic partnerships with our existing
customers, while pursuing new sales opportunities for our advanced solar cell
products.”
Reinahrd Wecker, CEO of asola, added, “We are pleased to continue our
relationship with China Sunergy as we expand our business into important solar
markets, including Italy and the U.S.”
About China Sunergy Co. Ltd
China Sunergy Co., Ltd. (Nasdaq: CSUN) is a specialized manufacturer of
solar cell products in China. China Sunergy manufactures solar cells from
silicon wafers utilizing crystalline silicon solar cell technology to convert
sunlight directly into electricity through a process known as the photovoltaic
effect. China Sunergy sells solar cell products to Chinese and overseas module
manufacturers and system integrators, who assemble solar cells into solar
modules and solar power systems for use in various markets. For more
information please visit http://www.chinasunergy.com .
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical fact in this
announcement are forward-looking statements. These forward-looking statements
and are based on current expectations, assumptions, estimates and projections
about the company and the industry, and involve known and unknown risks and
uncertainties, including but not limited to, the company’s ability to raise
additional capital to finance the company’s activities; the effectiveness,
profitability, and the marketability of its products; the economic slowdown in
China and elsewhere and its impact on the company’s operations; demand for the
company’s products; the future trading of the common stock of the company; the
ability of the company to operate as a public company; the period of time for
which its current liquidity will enable the company to fund its operations;
the company’s ability to protect its proprietary information; general economic
and business conditions; the volatility of the company’s operating results and
financial condition; the company’s ability to attract or retain qualified
senior management personnel and research and development staff; future
shortage or availability of the supply of raw materials and other risks
detailed in the company’s filings with the Securities and Exchange Commission.
The company undertakes no obligation to update forward-looking statements to
reflect subsequent occurring events or circumstances, or to changes in its
expectations, except as may be required by law. Although the company believes
that the expectations expressed in these forward looking statements are
reasonable, they cannot assure you that their expectations will turn out to be
correct, and investors are cautioned that actual results may differ materially
from the anticipated results.
For further information contact:
FD
Peter Schmidt
Tel: +86-10-8591-1953
Email: peter.schmidt@fd.com
Posted by: yestelli on: March 2, 2009
SAN JOSE, Calif., March 2 /PRNewswire-FirstCall/ — SunPower Corp.
(Nasdaq: SPWRA, SPWRB), a Silicon Valley-based manufacturer of high-efficiency
solar cells, solar panels and solar systems, today announced that its CEO, Tom
Werner, will now speak at the Morgan Stanley Technology Conference at 4:30
p.m. PST on Monday, March 2nd. The event is being held at the Palace Hotel in
San Francisco.
Werner’s presentation will be webcast live at
http://investors.sunpowercorp.com/events.cfm and will be archived for two
weeks on the SunPower website.
About SunPower Corp.
SunPower Corp. (Nasdaq: SPWRA, SPWRB) designs, manufactures and delivers
high-performance solar-electric systems worldwide for residential, commercial
and utility-scale power plant customers. SunPower high-efficiency solar cells
and solar panels generate up to 50 percent more power than conventional solar
technologies and have a uniquely attractive, all-black appearance. With
headquarters in San Jose, Calif., SunPower has offices in North America,
Europe, Australia, and Asia. For more information, visit www.sunpowercorp.com.
SunPower is a registered trademark of SunPower Corporation. All other
trademarks are the property of their respective owners.
