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MALVERN, Pa., Oct. 31, 2024 /PRNewswire/ — Ecovyst Inc. ECVT (“Ecovyst” or the “Company”), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, today reported results for the third quarter ended September 30, 2024.

Third Quarter 2024 Results & Highlights

• Sales of $179.2 million, compared to $173.3 million in the third quarter of 2023
• Net Income of $14.3 million, compared to $16.6 million in the year-ago quarter, with a net income margin of 8.0% and diluted net income per share of $0.12. Adjusted Net Income was $16.5 million with Adjusted Diluted Income per share of $0.14
• Adjusted EBITDA of $59.8 million, down 12% compared to the third quarter of 2023, with an Adjusted EBITDA margin of 28.5%
• Cash flows from operating activities was $106.4 million for the nine months ended September 30, 2024, compared to $73.4 million for the nine months ended September 30, 2023. Adjusted Free Cash Flow was $59.3 million for the nine months ended September 30, 2024, compared to $19.8 million for the nine months ended September 30, 2023

“Ecovyst’s third-quarter results met our expectations, showcasing the resilience of our Ecoservices segment. This was driven by favorable pricing in regeneration services and increased sales volumes for virgin sulfuric acid. In our Advanced Materials & Catalysts segment, growth in polyethylene catalysts was offset by the shift of certain hydrocracking and custom catalyst orders into the fourth quarter of 2024,” said Kurt J. Bitting, Ecovyst’s Chief Executive Officer.

“Ecovyst is steadfast in pursuing our strategic goals of operational excellence, increasing industrial segment volumes, and diversifying products through emerging technologies. I am pleased with the strides we’ve made in enhancing reliability within Ecoservices, which has already led to gains in operational efficiency. Additionally, we have made notable progress in Advanced Materials & Catalysts through investments in the Kansas City expansion and collaborations with customers in biocatalysis and advanced recycling technologies,” Bitting added.

Review of Segment Results and Business Trends

Ecoservices

Third quarter 2024 sales were $153.9 million, compared to $147.6 million in the third quarter of 2023. The increase in sales reflects higher sales volume in virgin sulfuric acid and favorable contractual pricing in regeneration services. Third quarter 2024 Adjusted EBITDA was $55.1 million, compared to $54.7 million in the third quarter of 2023. The modest increase reflects favorable net pricing and higher sales volume, partially offset by higher manufacturing costs associated with inflation, increased planned maintenance costs and costs associated with the manufacturing plant reliability improvement program.

Advanced Materials & Catalysts

During the third quarter of 2024, Advanced Silicas sales were $25.3 million, compared to $25.7 million in the third quarter of 2023. The modest decrease in sales reflects the timing of niche custom catalyst sales, partially offset by higher sales of advanced silicas used for the production of polyethylene. Our proportionate 50% share of third quarter sales for the Zeolyst Joint Venture was $30.9 million, compared to $37.0 million in the third quarter of 2023. The change in Zeolyst Joint Venture sales was due primarily to lower sales of catalysts used in the production of sustainable fuels and emission control applications, partially offset by higher sales of hydrocracking catalysts and custom catalysts. Third quarter 2024 Adjusted EBITDA for Advanced Materials & Catalysts, which includes our proportionate 50% share of the Zeolyst Joint Venture, was $10.9 million, compared to $16.4 million in the third quarter of 2023, with the change reflecting lower sales volume within the Zeolyst Joint Venture associated with catalysts used in the production of sustainable fuels and emission control applications, partially offset by favorable mix and increased sales of advanced silicas used for the production of polyethylene in Advanced Silicas.

Cash Flows and Balance Sheet

Cash flows from operating activities was $106.4 million for the nine months ended September 30, 2024, compared to $73.4 million for the nine months ended September 30, 2023. The increase was primarily driven by the timing of dividends received from the Zeolyst Joint Venture and favorable working capital changes. At September 30, 2024, the Company had cash and cash equivalents of $123.5 million, total gross debt of $873.0 million and availability under the ABL facility of $64.5 million, after giving effect to $3.3 million of outstanding letters of credit and no revolving credit facility borrowings outstanding, for total available liquidity of $188.0 million. The net debt to net income ratio was 13.9x as of September 30, 2024 and the net debt leverage ratio was 3.2x as of September 30, 2024.

2024 Financial Outlook 

Ecovyst expects demand trends for our Ecoservices segment to remain positive for the balance of 2024. The company expects high refinery utilization to provide continued support for our regeneration services business. Ecovyst remains cautious about the possibility of further contraction in industrial demand, but we anticipate sales of virgin sulfuric acid to be up in 2024, compared to 2023. For Advanced Silicas, Ecovyst expects sales of polyethylene catalysts and supports to be up in 2024, compared to 2023. However, the magnitude of the increase remains a function of overall industrial activity and related customer demand. Ecovyst remains cautious of the potential for timing shifts to impact sales of event-driven, niche custom catalysts in our Advanced Silicas business. The Company expects the current supply and demand imbalance in the renewable fuels industry will continue to challenge the near-term demand outlook for Ecovyst’s sales of catalyst materials used in sustainable fuel production. Subdued economic conditions and high interest rates are also anticipated to continue to weigh on the near-term sales of emission control catalyst materials which are used on heavy duty diesel vehicles.

“I am pleased with the focus and performance of my Ecovyst colleagues in the face of the near-term challenges in some of our product groups.  Based upon our current expectations for the remainder of the year, which include continued positive momentum in our Ecoservices business, and an expectation for higher polyethylene catalyst sales and anticipated timing associated with hydrocracking and niche custom catalyst sales, we are maintaining our guidance for full-year 2024 Adjusted EBITDA of $230 million $245 million.  While we remain cautious about the uncertainty in the global macroeconomic environment and its potential impact on industrial activity over the balance of the year, we believe the continued resilience and cash generation of our core businesses will allow Ecovyst to remain intently focused on achieving our long-term growth objectives and on value creation for our shareholders,” Bitting said.

The Company’s current guidance for full year 2024 is as follows:

• Sales of $700 million to $740 million
• Sales of $115 million to $135 million for proportionate 50% share of Zeolyst Joint Venture, which is excluded from GAAP Sales
• Full year 2024 Adjusted EBITDA¹ of $230 million to $245 million
• Free Cash Flow¹ of $75 million to $85 million
• Capital expenditures of $70 million to $80 million
• Interest expense of $48 million to $52 million
• Depreciation & Amortization
  • Ecovyst – $88 million to $92 million
  • Zeolyst J.V. – $12 million to $14 million
• Effective tax rate in the mid 20% range
• Full year 2024 Adjusted Net Income¹ of $53 million to $74 million, with Adjusted Diluted Income per share of $0.45 to $0.63.

¹In reliance upon the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K, the Company is not able to provide a reconciliation of its non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation such as certain non-cash, nonrecurring or other items that are included in net income as well as the related tax impacts of these items and asset dispositions / acquisitions and changes in foreign currency exchange rates that are included in cash flow, due to the uncertainty and variability of the nature and amount of these future charges and costs. Because this information is uncertain, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Stock Repurchase Authorization

In April 2022, the Company’s Board of Directors approved a stock repurchase program authorizing the repurchase of up to $450 million of the Company’s outstanding common stock over the next four years. As of September 30, 2024, $229.6 million was available for share repurchases under the program.

During the third quarter of 2024, the Company did not repurchase any shares of its common stock pursuant to the stock repurchase program. During the third quarter of 2023, the Company repurchased 541,494 shares of its common stock on the open market at an average price of $9.85 per share, for a total cost of $5.3 million, excluding brokerage commissions and accrued excise tax.

For possible future repurchases, the actual timing, number, and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions and may be conducted through negotiated transactions, open market repurchases or other means, including through Rule 10b-18 trading plans or accelerated share repurchases.  The repurchase program does not obligate the Company to acquire any number of shares in any specific period, or at all, and the repurchase program may be amended, suspended or discontinued at any time at the Company’s discretion.

Conference Call and Webcast Details

On Thursday, October 31, 2024, Ecovyst management will review the third quarter results during a conference call and audio-only webcast scheduled for 11:00 a.m. Eastern Time.

Conference Call: Investors may listen to the conference call live via telephone by dialing 1 (800) 267-6316 (domestic) or 1 (203) 518-9783 (international) and use the participant code ECVTQ324.

Webcast: An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations.

Investor Contact:

Gene Shiels
(484) 617-1225
gene.shiels@ecovyst.com

About Ecovyst Inc.

Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of advanced materials, specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products and services contribute to improving the sustainability of the environment.

We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides high quality and high strength virgin sulfuric acid for industrial and mining applications. Ecoservices also provides chemical waste handling and treatment services, as well as ex-situ catalyst activation services for the refining and petrochemical industry. Advanced Materials & Catalysts, through its Advanced Silicas business, provides finished silica catalysts, catalyst supports and functionalized silicas necessary to produce high performing plastics and to enable sustainable chemistry, and through its Zeolyst Joint Venture, innovates and supplies specialty zeolites used in catalysts that support the production of sustainable fuels, remove nitrogen oxides from diesel engine emissions and that are broadly applied in refining and petrochemical process. For more information, see our website at https://www.ecovyst.com.

Presentation of Non-GAAP Financial Measures

In addition to the results provided in accordance with U.S. generally accepted accounting principles (“GAAP”) throughout this press release, the Company has provided non-GAAP financial measures — Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Diluted Income per share, Net Debt to Net Income ratio and Net Debt Leverage Ratio (collectively, “Non-GAAP Financial Measures”) — which present results on a basis adjusted for certain items. The Company uses these Non-GAAP Financial Measures for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that these Non-GAAP Financial Measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. These Non-GAAP Financial Measures are not intended to replace, and should not be considered superior to, the presentation of the Company’s financial results in accordance with GAAP. The use of the Non-GAAP Financial Measures terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These Non-GAAP Financial Measures are reconciled from the respective measures under GAAP in the attached appendix.

Zeolyst Joint Venture

The Company’s zeolite catalysts product group operates through its Zeolyst Joint Venture, which is accounted for as an equity method investment in accordance with GAAP. The presentation of the Zeolyst Joint Venture’s sales represents 50% of the sales of the Zeolyst Joint Venture. The Company does not record sales by the Zeolyst Joint Venture as revenue and such sales are not consolidated within the Company’s results of operations. However, the Company’s Adjusted EBITDA reflects the share of earnings of the Zeolyst Joint Venture that have been recorded as equity in net income from affiliated companies in the Company’s consolidated statements of income for such periods and includes Zeolyst Joint Venture adjustments on a proportionate basis based on the Company’s 50% ownership interest. Accordingly, the Company’s Adjusted EBITDA margins are calculated including 50% of the sales of the Zeolyst Joint Venture for the relevant periods in the denominator.

Note on Forward-Looking Statements

Some of the information contained in this press release constitutes “forward-looking statements.” Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects” and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, statements regarding our future results of operations, financial condition, capital expenditure projects, liquidity, prospects, growth, strategies, capital allocation program (including the stock repurchase program), product and service offerings, expected demand trends and our 2024 financial outlook. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, including tariffs and trade disputes, currency exchange rates, the effects of inflation and other factors, including those described in the sections titled “Risk Factors” and “Management’s Discussion & Analysis of Financial Condition and Results of Operations” in our filings with the SEC, which are available on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

The adjustments to net income are shown net of applicable tax rates of 25.1% and 27.4% for the nine months ended September 30, 2024 and 2023, respectively, except for equity-based compensation. The tax effect on equity-based compensation is derived by removing the tax effect of any equity-based compensation expense disallowed as a result of its inclusion within IRC Sec. 162(m), and adding the tax effect of equity-based stock compensation shortfall recorded as a discrete item.

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SOURCE Ecovyst Inc.

TSX: TVE

CALGARY, AB, Oct. 31, 2024 /CNW/ – Tamarack Valley Energy Ltd. (“Tamarack” or the “Company“) TVE is pleased to announce its unaudited financial and operating results for the three and nine months ended September 30, 2024. Selected financial and operating information should be read with Tamarack’s unaudited consolidated financial statements and related management’s discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2024, and 2023, which are available on SEDAR+ at www.sedarplus.ca and on Tamarack’s website at www.tamarackvalley.ca.

Q3 2024 Financial and Operational Highlights

• Quarterly Production Growth – Production averaged 65,024 boe/d⁽¹⁾, exceeding the high end of prior guidance, reflecting ongoing strength in corporate performance driven by the Clearwater and Charlie Lake drilling programs and waterflood initiatives. Q3/24 Clearwater production increased to 43,300 boe/d⁽²⁾ reflecting a 15% (19% per share) increase YoY as Tamarack continues to expand its heavy oil operations.
• Increasing Funds Flow⁽³⁾ – Delivered Adjusted Funds Flow⁽³⁾ of $220.4MM ($0.41 per share), and Free Funds Flow⁽³⁾ of $108.7MM. YTD Tamarack has generated $297.7MM of Free Funds Flow⁽³⁾ which, on a per share basis, represents a 72% increase YoY⁽⁴⁾.
• Margin Enhancement – Continued cost reductions and better wellhead realizations are driving stronger margins across the business. Per boe transportation expense demonstrated a 43% improvement YoY. Higher pipeline flows, reduced trucking and a one-time royalty cost recovery all contributed to the improvement. Wellhead price realizations continue to improve due to enhanced blending, sales of CWH oil (Clearwater Heavy) and strong trading differentials driven by the TMX pipeline.
• Delivering Returns to Shareholders – Total shareholder return value for first nine months of 2024, was $144.7MM, or ~$0.26/share⁽⁵⁾, including base dividends of $61.4MM and share buybacks.
  • Continued Debt Reduction – Exit net debt of $807.4MM reflected a further strengthening of the balance sheet. Net debt has been reduced by $176.2MM YTD.
  • Increased Share Buybacks – During Q3/24, Tamarack repurchased 12.3MM common shares. During the first nine months of 2024, the Company bought back and cancelled 4.0% of the year-end 2023 shares outstanding.
  • Dividend Increase – Tamarack’s per share monthly dividend will increase by 2% for the November dividend, payable in December, to $0.01275 from $0.0125 previously, which equates to $0.1530 annually.
• Expanded Clearwater Infrastructure Partnership – Added a 13^th Indigenous community to the Clearwater Infrastructure Limited Partnership (the “CIP”) arrangement. Tamarack transferred an additional $50.8MM of Clearwater assets to the partnership for $43.2MM in cash and retained 15% operated working interest in the assets.

Achieving Success: Plan, Execute & Deliver

Brian Schmidt, President and CEO of Tamarack stated:

“Tamarack’s Q3/24 results continue to highlight the quality of the Clearwater and Charlie Lake asset base that has been built over the past three years, and the operational excellence of the team that is driving this performance. Growth in Clearwater production of 15%, relative to the same period in 2023, was achieved while at the same time debt has been materially reduced and enhanced returns to shareholders have been increasing. By demonstrating improved efficiencies, the Company continues to deliver more while spending less.”

Q3 2024 Financial & Operating Results

2024 Production Guidance Update

In response to the continued strong well performance and benefits from infrastructure optimization during the year, the Company has increased the full-year production guidance range to 63,000 to 64,000 boe/d⁽⁶⁾.

The 2024 capital program, which is delivering higher production than originally budgeted, is forecasted to be achieved at a lower cost, benefitting from drilling and facilities efficiencies. Utilizing a portion of the CIP expansion proceeds, Tamarack will drill 4 (4.0 net) Charlie Lake wells in Q4/24, expand regional pipeline capacity in advance of the third-party plant commissioning in early 2025, and expand its waterflood investment program in the Clearwater. Tamarack anticipates spending for the year to be approximately $440MM⁽⁷⁾, consistent with prior guidance, which is inclusive of the incremental Charlie Lake wells and waterflood investment as the Company continues to out deliver against the capital deployed.

Tamarack is also updating its 2024 corporate costs guidance on the back of a continued focus on reducing costs and enhancing margins. Transportation cost guidance is reduced in response to improved oil transportation contracts and lower trucking costs. Guidance regarding carbon tax is updated to reflect savings related to anticipated taxable emissions reductions in 2024, resulting from ongoing Clearwater carbon abatement initiatives. Interest expense guidance was reduced primarily due to lower net debt and lower interest rates. The change to income tax guidance reflects Tamarack’s profitability outperformance and the impact of the CIP expansion.

2024 Guidance Summary⁽⁸⁾

Returns to Shareholders

The Company will raise its monthly dividend to $0.01275 per share, or $0.1530 per share annually, starting with the November dividend that is payable in December. This will represent the fourth increase, and a 53% uplift, since announcing the inaugural dividend in December 2021.

2024 Operations Update

Clearwater

Total Clearwater production averaged 43,300 boe/d⁽¹⁴⁾ (91% oil) in Q3/24, representing a 15% increase YoY (19% per share growth). This result was driven by the Nipisi and West Marten assets which averaged ~20,800 bbl/d of heavy oil Q3/24, demonstrating an increase of approximately 10% year-to-date. The strong growth reflects de-bottlenecking efforts, base optimization, better than forecast new well performance, and West Nipisi waterflood response. Investment in gas conservation has seen total sales gas from Tamarack’s Clearwater assets more than double YoY.

At West Marten, the Company continues to see positive results from the C sand delineation program with an IP30 rate of ~200 bbl/d observed at 02/13-30-076-04W5/0. Stacked sand development continues in the area, where the Company rig released six B sand and two C sand wells in Q3/24 from its 14-23-076-05/W5 pad. Initial productivity is strong, and the Company plans to pursue waterflood in both sands.

The continued refinement of drilling designs, coupled with program optimizations, are driving efficiency enhancements and lower overall capital costs throughout the Clearwater asset base. This has resulted in a 5% reduction in per meter drilling costs across the Clearwater, highlighted by a 15% reduction in Marten Hills.

The application of fan well designs in the Clearwater is illustrative of this progression, where results have improved efficiencies through lower costs and increased recoveries in areas where economic secondary recovery potential has not yet been established. Success of the fan design is demonstrated through results in the South Clearwater. The two Newbrook 13-30-062-20/W4 pad wells brought onstream in 2024, continue to exhibit strong production, with average daily oil rates exceeding 235 bbl/d per well after seven months on production. This pad represents the best wells drilled by industry, across the trend to date, and Tamarack’s overall South Clearwater fan production has grown to 1,650 bbl/d. Results to date have demonstrated the fan design contributes to shallower declines and higher per well estimated ultimate recoveries (EUR), compared to the conventional design historically applied in the area. This provides positive implications for future development by reducing long-term sustaining capital while optimizing project economics.

Waterflood – Production Response to Increased Injection at Nipisi and Marten Hills 

Clearwater secondary recovery initiatives are exhibiting strong early results across multiple areas and sands in the play. Pilots initiated by Tamarack continue to demonstrate strong performance from secondary recoveries with wells trending ahead of expectations, indicating the potential to more than double the primary EUR of the well. Total water injection across the Clearwater is currently ~8,650 bbl/d and forecasted to grow to 14,000 bbl/d by year end, representing >60% growth through Q4/24. Waterflood activity to date has resulted in an estimated 1,500 bbl/d of incremental oil production, and the Company expects to have >9% of its Clearwater production supported by waterflood by year-end 2024.

Year-to-date the company has drilled seven total injectors in Nipisi. Based on the strong results from waterflood in the area, the Company plans to drill five additional injectors from the 12-14-076-08/W5 pad in Q4/24. Tamarack’s first C sand injector at West Marten commenced water injection in August 2024, and currently is injecting at a rate of 400 bbl/d.

At Marten Hills, the Company is now seeing oil response from all its implemented waterflood patterns. Oil production from Tamarack’s first “W” pattern at 102/01-11-074-25/W4 is currently 25 bbl/d above its primary baseline and ramping up. The 100/16-02-075-25/W4 pattern, offsetting the highly successful 102/15-02-075-25/W4 pattern, is also seeing a strong initial response that is 25 bbl/d above its primary baseline. Based on these results, Tamarack plans to drill two water source wells in Q4/24 to accelerate further conversions in the area, which are designed to maximize per well injectivity, promoting quicker response times and delivering shorter payout periods. Total water injection at Marten Hills is currently at approximately 4,750 bbl/d.

At Canal, Tamarack implemented a pilot waterflood at the 100/16-16-70-23W4/0 well which has demonstrated strong initial injectivity greater than 800 bbl/d.

Charlie Lake

During the quarter, Tamarack achieved production of 16,200 boe/d⁽¹⁵⁾ from its Charlie Lake assets, which continued to benefit from sustained outperformance related to wells brought online during H1/24 in the Wembley area. Tamarack resumed drilling in the Charlie Lake play in July, rig releasing 4 (4.0 net) horizontal wells in Q3/24.

Late in Q3/24, Tamarack brought two wells online in the Pipestone area that were drilled from the 14-34-071-08/W6 pad. These two wells achieved average IP30 rates of 1,320 boe/d⁽¹⁶⁾ (86% oil & liquids) per well, which compare to outperforming wells brought on-stream by Tamarack in H1/24. Also, in Q3/24 the Company has brought online two Wembley area wells from the 11-11-074-08/W6 pad that have exhibited encouraging tests rates similar to the prior two Q4/23 drills from this location.

Risk Management

The Company takes a systematic approach to manage commodity price risk and volatility to ensure sustaining capital, debt servicing requirements and the base dividend are protected through a prudent hedging management program. For the reminder of 2024 and the first half of 2025, approximately ~50% of net after royalty oil production is hedged against WTI with an average floor price of ~US$67/bbl in Q4/24 and ~US$65/bbl in H1/25, with structures that allow for upside price participation at an average ceiling price of ~US$85/bbl. Our strategy provides protection to the downside while maximizing upside exposure. Additional details of the current hedges in place can be found in the corporate presentation on the Company website (www.tamarackvalley.ca).

About Tamarack Valley Energy Ltd.

Tamarack is an oil and gas exploration and production company committed to creating long-term value for its shareholders through sustainable free funds flow⁽³⁾ generation, financial stability and the return of capital. The Company has an extensive inventory of low-risk, oil development drilling locations focused primarily on Clearwater and Charlie Lake plays in Alberta while also pursuing EOR upside in these core areas. For more information, please visit the Company’s website at www.tamarackvalley.ca.

Abbreviations

Reader Advisories

Notes to Press Release

Disclosure of Oil and Gas Information

Unit Cost Calculation. For the purpose of calculating unit costs, natural gas volumes have been converted to a boe using six thousand cubic feet equal to one barrel unless otherwise stated. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms with Canadian Securities Administrators’ National Instrument 51 101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). Boe may be misleading, particularly if used in isolation.

Product Types. References in this press release to “crude oil” or “oil” refers to light, medium and heavy crude oil product types as defined by NI 51-101. References to “NGL” throughout this press release comprise pentane, butane, propane, and ethane, being all NGL as defined by NI 51-101. References to “natural gas” throughout this press release refers to conventional natural gas as defined by NI 51-101.

Short-Term Production Rates. References in this press release to peak rates, initial production rates, IP30 and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of Tamarack. The Company cautions that such results should be considered to be preliminary.

Forward Looking Information

This press release contains certain forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as “guidance”, “outlook”, “anticipate”, “target”, “plan”, “continue”, “intend”, “consider”, “estimate”, “expect”, “may”, “will”, “should”, “could” or similar words suggesting future outcomes. More particularly, this press release contains statements concerning: Tamarack’s business strategy, objectives, strength and focus; the Company’s exploration and development plans and strategies; improved efficiencies and margin enhancements; future intentions with respect to debt repayment and reduction and the Company’s ROC framework, including share buybacks and an increased monthly dividend; oil and natural gas production levels, adjusted funds flow and free funds flow; anticipated operational results for 2024 including, but not limited to, estimated or anticipated production levels (including in respect of Tamarack’s updated 2024 production guidance, which is increased to the 63,000 to 64,000 boe/d range), capital expenditures, drilling plans and infrastructure initiatives (including use of proceeds from the CIP expansion), the Company’s capital program, guidance and budget for 2024 and the funding thereof; expectations regarding commodity prices; the performance characteristics of the Company’s oil and natural gas properties; decline rates and EOR, including waterflood initiatives; the continued successful integration of acquired assets; the ability of the Company to achieve drilling success consistent with management’s expectations, including leveraging the “Fan” well design; ARO reduction; and risk management activities, including hedging positions and targets. Future dividend payments and share buybacks, if any, and the level thereof, are uncertain, as the Company’s return of capital framework and the funds available for such activities from time to time is dependent upon, among other things, free funds flow financial requirements for the Company’s operations and the execution of its growth strategy, fluctuations in working capital and the timing and amount of capital expenditures, debt service requirements and other factors beyond the Company’s control. Further, the ability of Tamarack to pay dividends and buyback shares will be subject to applicable laws (including the satisfaction of the solvency test contained in applicable corporate legislation) and contractual restrictions contained in the instruments governing its indebtedness, including its credit facility.

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Tamarack, including those relating to: the business plan of Tamarack; the timing of and success of future drilling, development and completion activities; the geological characteristics of Tamarack’s properties; the continued successful integration of acquired assets into Tamarack’s operations; prevailing commodity prices, price volatility, price differentials and the actual prices received for the Company’s products; the availability and performance of drilling rigs, facilities, pipelines and other oilfield services; the timing of past operations and activities in the planned areas of focus; the drilling, completion and tie-in of wells being completed as planned; the performance of new and existing wells; the application of existing drilling and fracturing techniques; prevailing weather and break-up conditions; royalty regimes and exchange rates; impact of inflation on costs; the application of regulatory and licensing requirements; the continued availability of capital and skilled personnel; the ability to maintain or grow the banking facilities; the accuracy of Tamarack’s geological interpretation of its drilling and land opportunities, including the ability of seismic activity to enhance such interpretation; and Tamarack’s ability to execute its plans and strategies.

Although management considers these assumptions to be reasonable based on information currently available, undue reliance should not be placed on the forward-looking statements because Tamarack can give no assurances that they may prove to be correct. By their very nature, forward-looking statements are subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: risks with respect to unplanned third party pipeline outages and risks relating to inclement and severe weather events and natural disasters, such as fire, drought and flooding, including in respect of safety, asset integrity and shutting-in production, delivering on 2024 guidance; the risk that future dividend payments thereunder are reduced, suspended or cancelled; unforeseen difficulties in integrating of recently acquired assets into Tamarack’s operations; incorrect assessments of the value of benefits to be obtained from acquisitions and exploration and development programs; risks associated with the oil and gas industry in general (e.g. operational risks in development, exploration and production; and delays or changes in plans with respect to exploration or development projects or capital expenditures); commodity prices, including the impact of the actions of OPEC and OPEC+ members; the uncertainty of estimates and projections relating to production, cash generation, costs and expenses, including increased operating and capital costs due to inflationary pressures; health, safety, litigation and environmental risks; access to capital; and pandemics. In addition, ongoing military actions between Russia and Ukraine and the recent crisis in Israel and Gaza have the potential to threaten the supply of oil and gas from those regions. The long-term impacts of the actions between these nations remains uncertain. Due to the nature of the oil and natural gas industry, drilling plans and operational activities may be delayed or modified to respond to market conditions, results of past operations, regulatory approvals or availability of services causing results to be delayed. Please refer to the Company’s annual information form for the year ended December 31, 2023 and the MD&A for the period ended September 30, 2024, for additional risk factors relating to Tamarack, which can be accessed either on Tamarack’s website at www.tamarackvalley.ca or under the Company’s profile on www.sedarplus.ca. The forward-looking statements contained in this press release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about generating sustainable long-term growth in free funds flow, dividends and share buybacks, prospective results of operations and production (including annual average production, average oil & NGL weighting), oil weightings, hedging, operating costs, 2024 capital budget, guidance and expenditures, decline rates, 2024 carbon tax, balance sheet strength, adjusted funds flow and free funds flow, net debt, debt repayments, total returns and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Tamarack’s future business operations. Tamarack and its management believe that FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments, and represent, to the best of management’s knowledge and opinion, the Company’s expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Tamarack disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Tamarack’s guidance. The Company’s actual results may differ materially from these estimates.

Specified Financial Measures

This press release includes various specified financial measures, including non-IFRS financial measures, non-IFRS financial ratios, capital management measures and supplemental financial measures as further described herein. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and, therefore, may not be comparable with the calculation of similar measures by other companies.

“Adjusted funds flow (capital management measure)” is calculated by taking cash-flow from operating activities, on a periodic basis, deducting current income tax expense and interest expense (excluding fees) and adding back income tax paid, interest paid, changes in non-cash working capital, expenditures on decommissioning obligations and transaction costs settled during the applicable period. since Tamarack believes the timing of collection, payment or incurrence of these items is variable. Management believes adjusting for estimated current income taxes and interest in the period expensed is a better indication of the adjusted funds generated by the Company. Expenditures on decommissioning obligations may vary from period to period depending on capital programs and the maturity of the Company’s operating areas. Expenditures on decommissioning obligations are managed through the capital budgeting process which considers available adjusted funds flow. Tamarack uses adjusted funds flow as a key measure to demonstrate the Company’s ability to generate funds to repay debt, pay dividends and fund future capital investment. Adjusted funds flow per share is calculated using the same weighted average basic and diluted shares that are used in calculating income per share, which results in the measure being considered a supplemental financial measure. Adjusted funds flow can also be calculated on a per boe basis, which results in the measure being considered a supplemental financial measure.

“Differential including transportation expense” The calculation of the Company’s heavy oil differential including transportation expenses is presented in the “Petroleum and natural gas sales” section of the Company’s Q1 2024 MD&A and is determined by comparing the Company’s realized price to the published benchmark price, plus transportation expenses. The Company and others utilize these performance measures to assess the value of net revenue received by Tamarack for each barrel sold relative to the published market price during that period. These performance measures are presented on a per boe basis as a non-GAAP financial ratio.

“Free funds flow (capital management measure)” is calculated by taking adjusted funds flow and subtracting capital expenditures, excluding acquisitions and dispositions. Management believes that free funds flow provides a useful measure to determine Tamarack’s ability to improve returns and to manage the long-term value of the business.

“Free funds flow breakeven (capital management measure)” (previously referred to as “free adjusted funds flow breakeven”) is determined by calculating the minimum WTI price in US/bbl required to generate free funds flow equal to zero, sustaining current production levels and all other variables held constant. Management believes that free funds flow breakeven provides a useful measure to establish corporate financial sustainability.

“Net debt (capital management measure)” is calculated as credit facilities plus senior unsecured notes, plus deferred acquisition payment notes, plus working capital surplus or deficiency, plus other liability, including the fair value of cross-currency swaps, plus government loans, plus facilities acquisition payments, less notes receivable and excluding the current portion of fair value of financial instruments, decommissioning obligations, lease liabilities and the cash award incentive plan liability.

“Net Production Expenses, Revenue, net of blending expense, Operating Netback and Operating Field Netback (Non-IFRS Financial Measures, and Non-IFRS Financial Ratios if calculated on a per boe basis)” – Management uses certain industry benchmarks, such as net production expenses, revenue, net of blending expense, operating netback and operating field netback, to analyze financial and operating performance. Net production expenses are determined by deducting processing income primarily generated by processing third party volumes at processing facilities where the Company has an ownership interest. Under IFRS this source of funds is required to be reported as income. Where the Company has excess capacity at one of its facilities, it will process third party volumes as a means to reduce the cost of operating/owning the facility, and as such third-party processing revenue is netted against production expenses in the MD&A. Blending expense includes the cost of blending diluent purchased to reduce the viscosity of our heavy oil transported through pipelines to meet pipeline specifications. The blending expense represents the difference between the cost of purchasing and transporting the diluent and the realized price of the blended product sold. In the MD&A, blending expense is recognized as a reduction to heavy oil revenues, whereas blending expense is reported as an expense in the financial statements. Operating netback equals total petroleum and natural gas sales (net of blending), including realized gains and losses on commodity and foreign exchange derivative contracts, less royalties, net production expenses and transportation expense. Operating field netback equals total petroleum and natural gas sales, less royalties, net production expenses and transportation expense. These metrics can also be calculated on a per boe basis, which results in them being considered a non-IFRS financial ratio. Management considers operating netback and operating field netback important measures to evaluate Tamarack’s operational performance, as it demonstrates field level profitability relative to current commodity prices.

Please refer to the MD&A for additional information relating to specified financial measures including non-IFRS financial measures, non-IFRS financial ratios and capital management measures. The MD&A can be accessed either on Tamarack’s website at www.tamarackvalley.ca or under the Company’s profile on www.sedarplus.ca.

SOURCE Tamarack Valley Energy Ltd.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/October2024/31/c5514.html

VANCOUVER, Oct. 31, 2024 /PRNewswire/ — City Office REIT, Inc. CIO (the “Company,” “City Office,” “we” or “our”) today announced its results for the quarter ended September 30, 2024.

Third Quarter Highlights

• Rental and other revenues were $42.4 million.  GAAP net loss attributable to common stockholders was approximately $4.5 million, or ($0.11) per fully diluted share;
• Core FFO was approximately $11.1 million, or $0.27 per fully diluted share;
• AFFO was approximately $4.8 million, or $0.12 per fully diluted share;
• In-place occupancy was 83.4% as of quarter end, or 87.0% including signed leases not yet occupied;
• Executed approximately 141,000 square feet of new and renewal leases during the quarter;  
• Completed the loan repayment on maturity of the Company’s $50.0 million term loan;
• Declared a third quarter dividend of $0.10 per share of common stock, paid on October 24, 2024; and
• Declared a third quarter dividend of $0.4140625 per share of Series A Preferred Stock, paid on October 24, 2024.

“We continue to experience a progression of office real estate fundamentals across our markets,” commented James Farrar, the Company’s Chief Executive Officer.  “During the first nine months of 2024, we executed 601,000 square feet of new and renewal leases.  As a result of the healthy leasing activity year to date, we increased our guidance expectations for year-end occupancy and same store cash NOI change.”

“Our strategy of renovating and enhancing properties has aligned with leasing demand.  Over the next two quarters, we expect to complete renovations at four of our properties.  We believe these investments will drive future occupancy gains and build on the leasing momentum that we achieved in recent quarters.”

A reconciliation of certain non-GAAP financial measures, including FFO, Core FFO, AFFO, NOI, Same Store NOI, Same Store Cash NOI and their equivalent per share measures, to the most directly comparable financial measure under U.S. generally accepted accounting principles (“GAAP”) can be found at the end of this release.

Portfolio Operations

The Company reported that its total portfolio as of September 30, 2024 contained 5.6 million net rentable square feet and was 83.4% occupied, or 87.0% including signed leases not yet occupied.

Same Store Cash NOI increased 0.2% for the three months ended September 30, 2024 as compared to the same period in the prior year. Same Store Cash NOI decreased 0.9% for the nine months ended September 30, 2024 as compared to the same period in the prior year.

Leasing Activity

The Company’s total leasing activity during the third quarter of 2024 was approximately 141,000 square feet, which included 78,000 square feet of new leasing and 63,000 square feet of renewals. Approximately 131,000 square feet of leases signed within the quarter are expected to take occupancy subsequent to quarter end.

New Leasing – New leases were signed with a weighted average lease term of 5.0 years at a weighted average effective annual rent of $33.91 per square foot and at a weighted average cost of $10.43 per square foot per year.

Renewal Leasing – Renewal leases were signed with a weighted average lease term of 4.5 years at a weighted average effective annual rent of $32.87 per square foot and at a weighted average cost of $3.64 per square foot per year. After quarter end, the Company completed a renewal for a 28,000 square foot space at Bloc 83 in Raleigh that was previously expected to be vacated by WeWork on November 1, 2024.  The lease extension with WeWork was completed to accommodate a prominent user that desired to continue their occupancy until December 31, 2026.

Capital Structure

As of September 30, 2024, the Company had total principal outstanding debt of approximately $651.0 million. Approximately 82.3% of the Company’s debt was fixed rate or effectively fixed rate due to interest rate swaps. City Office’s total principal outstanding debt had a weighted average maturity of approximately 2.1 years and a weighted average interest rate of 5.2%.

During the quarter, the Company’s $50.0 million term loan matured and was repaid with proceeds from the Company’s Unsecured Credit Facility.

Dividends

On September 13, 2024, the Company’s Board of Directors approved and the Company declared a cash dividend of $0.10 per share of the Company’s common stock for the three months ended September 30, 2024. The dividend was paid on October 24, 2024 to common stockholders and unitholders of record as of October 10, 2024.

On September 13, 2024, the Company’s Board of Directors approved and the Company declared a cash dividend of $0.4140625 per share of the Company’s 6.625% Series A Preferred Stock for the three months ended September 30, 2024. The dividend was paid on October 24, 2024 to preferred stockholders of record as of October 10, 2024.

2024 Outlook 

Following City Office’s performance for the third quarter of 2024, the Company is updating its outlook for full year 2024 guidance. The updates include the expected impact of healthy leasing activity year-to-date driving expected occupancy increases in the fourth quarter of 2024. 

The outlook includes the following assumptions:

Material Considerations:  

1. Dispositions reflects the disposition of the Cascade Station property in Portland that occurred earlier in 2024.
2. The General & Administrative Expenses guidance includes approximately $4.3 million for stock-based compensation. Our Core FFO definition excludes stock-based compensation. Excluding stock-based compensation, General & Administrative Expenses guidance for Full Year 2024 would have been $10.2 million – $11.2 million.
3. Annual weighted average fully diluted shares of common stock outstanding are assumed to be approximately 41.4 million.
4. 2024 guidance assumes no share issuances, no acquisitions and no share repurchase activity.

The Company’s guidance is based on current plans and assumptions and subject to the risks and uncertainties more fully described in the Company’s filings with the United States Securities and Exchange Commission. This outlook reflects management’s view of current and future market conditions, including assumptions such as timing and magnitude of future acquisitions and dispositions, if any, rental rates, occupancy levels, leasing activity, our ability to renew expiring leases, uncollectible rents, operating and general administrative expenses, weighted average diluted shares outstanding and rising interest rates.  The Company reminds investors that the impacts of the work-from-home trend, inflation and general market conditions are uncertain and impossible to predict.  See “Forward-looking Statements” below.

Webcast and Conference Call Details

City Office’s management will hold a conference call at 11:00 am Eastern Time on October 31, 2024.  

The webcast will be available under the “Investor Relations” section of the Company’s website at www.cioreit.com.  The conference call can be accessed by dialing 1-833-470-1428 for domestic callers and 1-404-975-4839 for international callers.  The passcode for the conference call is 102833.

A replay of the call will be available later in the day on October 31, 2024, continuing through January 29, 2025 and can be accessed by dialing 1-866-813-9403 for domestic callers and 1-929-458-6194 for international callers.  The passcode for the replay is 801819.  A replay will also be available for twelve months following the call at “Webcasts & Events” in the “Investor Relations” section of the Company’s website.

A supplemental financial information package to accompany the discussion of the results will be posted on www.cioreit.com under the “Investor Relations” section.

Non-GAAP Financial Measures 

Funds from Operations (“FFO”) – The National Association of Real Estate Investment Trusts (“NAREIT”) states FFO should represent net income or loss (computed in accordance with GAAP) plus real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments of unconsolidated partnerships and joint ventures, gains or losses on the sale of property and impairments to real estate. 

The Company uses FFO as a supplemental performance measure because the Company believes that FFO is beneficial to investors as a starting point in measuring the Company’s operational performance.  We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare the Company’s operating performance with that of other REITs.

However, because FFO excludes depreciation and amortization and captures neither the changes in the value of the Company’s properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the Company’s properties, all of which have real economic effects and could materially impact the Company’s results from operations, the utility of FFO as a measure of the Company’s performance is limited.  In addition, other equity REITs may not calculate FFO in accordance with the NAREIT definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to such other REITs’ FFO.  Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s performance.

Core Funds from Operations (“Core FFO”) – We calculate Core FFO by using FFO as defined by NAREIT and adjusting for certain other non-core items.  We also exclude from our Core FFO calculation acquisition costs, loss on early extinguishment of debt, changes in the fair value of earn-outs, changes in fair value of contingent consideration and the amortization of stock based compensation.

We believe Core FFO provides a useful metric in comparing operations between reporting periods and in assessing the sustainability of our ongoing operating performance. Other equity REITs may calculate Core FFO differently or not at all, and, accordingly, the Company’s Core FFO may not be comparable to such other REITs’ Core FFO.

Adjusted Funds from Operations (“AFFO”) – We compute AFFO by adding to Core FFO the non-cash amortization of deferred financing fees and non-real estate depreciation, and then subtracting cash paid for recurring tenant improvements, leasing commissions, and capital expenditures, and eliminating the net effect of straight-line rent / expense, deferred market rent and debt fair value amortization.  Recurring capital expenditures exclude development / redevelopment activities, capital expenditures planned at acquisition and costs to reposition a property.  We exclude certain first generation leasing costs, which are generally to fill vacant space in properties we acquire or were planned at acquisition.  We have further excluded all costs associated with tenant improvements, leasing commissions and capital expenditures which were funded by the entity contributing the properties at closing.

Along with FFO and Core FFO, we believe AFFO provides investors with appropriate supplemental information to evaluate the ongoing operations of the Company. Other equity REITs may calculate AFFO differently, and, accordingly, the Company’s AFFO may not be comparable to such other REITs’ AFFO.

Net Operating Income (“NOI”) – We define NOI as rental and other revenues less property operating expenses. 

We consider NOI to be an appropriate supplemental performance measure to net income because we believe it provides information useful in understanding the core operations and operating performance of our portfolio.

Same Store Net Operating Income (“Same Store NOI”) and Same Store Cash Net Operating Income (“Same Store Cash NOI”) – Same Store NOI is calculated as the NOI attributable to the properties continuously owned and operated for the entirety of the reporting periods presented, and Same Store Cash NOI is calculated as Same Store NOI less non-recurring other income, termination fee income, straight-line rent / expense, deferred market rent and the non-controlling interest’s share of cash NOI. The Company’s definitions of Same Store NOI and Same Store Cash NOI exclude properties that were not stabilized during both of the applicable reporting periods. These exclusions may include, but are not limited to, acquisitions, dispositions and properties undergoing repositioning or significant renovations. 

We believe Same Store NOI and Same Store Cash NOI are important measures of comparison because each allows for comparison of operating results of stabilized properties owned and operated for the entirety of both applicable periods and therefore eliminates variations caused by acquisitions, dispositions or repositionings during such periods. Other REITs may calculate Same Store NOI and Same Store Cash NOI differently and our calculation should not be compared to that of other REITs.

Forward-looking Statements

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements within the meaning of the federal securities laws and as such are based upon the Company’s current beliefs as to the outcome and timing of future events. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “approximately,” “anticipate,” “assume,” “believe,” “budget,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “future,” “hypothetical,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will”  or other similar words or expressions. There can be no assurance that actual results of forward-looking statements, including projected capital resources, projected profitability and portfolio performance, estimates or developments affecting the Company will be those anticipated by the Company. Examples of forward-looking statements include those pertaining to expectations regarding our financial performance, including under metrics such as NOI and FFO, market rental rates, national or local economic growth, including the impact of inflation, estimated replacement costs of our properties, the Company’s expectations regarding tenant occupancy, re-leasing periods, the Company’s ability to renew expiring leases, tenant compliance with contractual lease obligations, projected capital improvements, expected sources of financing and ability to service existing financing, expectations as to the likelihood and timing of closing of acquisitions, dispositions, or other transactions, the expected operating performance of the Company’s current properties, anticipated near-term acquisitions and descriptions relating to these expectations, including, without limitation, the anticipated net operating income yield and cap rates, lower than expected yields, increased interest rates, operating costs and costs of capital, and changes in local, regional, national and international economic conditions, including as a result of the systemic and structural changes in the demand for commercial office space. Forward-looking statements presented in this press release are based on management’s beliefs and assumptions made by, and information currently available to, management.

The forward-looking statements contained in this press release are based on historical performance and management’s current plans, estimates and expectations in light of information currently available to us and are subject to uncertainty and changes in circumstances. There can be no assurance that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations due to the factors, risks and uncertainties described above, changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors described in our news releases and filings with the SEC, including but not limited to those described in our Annual Report on Form 10-K for the year ended December 31, 2023 under the heading “Risk Factors” and in our subsequent reports filed with the SEC, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove to be incorrect, our actual results may vary in material respects from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company does not guarantee that the assumptions underlying such forward-looking statements contained in this press release are free from errors. Unless otherwise stated, historical financial information and per share and other data are as of September 30, 2024 or relate to the quarter ended September 30, 2024. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable securities laws.