Approach Resources Inc. Schedules Fourth Quarter and Full-Year 2016 Conference Call for Friday, March 10, 2017

FORT WORTH, Texas, Feb. 23, 2017 (GLOBE NEWSWIRE) — Approach Resources Inc. (NASDAQ:AREX) today announced plans to release fourth quarter and full year 2016 operational and financial results after the close of trading on Thursday, March 9, 2017.  Management will host a conference call on Friday, March 10, 2017, at 9:00 AM CT (10:00 AM ET) to discuss fourth quarter and full-year 2016 operational and financial results.

The conference call may be accessed via the Company’s website at www.approachresources.com or by phone:

Participant Toll-Free Dial-In Number: (844) 884-9950
Participant International Dial-In Number: (661) 378-9660
Conference ID: 70306606

A replay of the call will be available on the Company’s website or by dialing:

Replay Toll-Free: (855) 859-2056
Replay International: (404) 537-3406
Conference ID: 70306606

About Approach Resources:

Approach Resources Inc. is an independent energy company focused on the exploration, development, production and acquisition of unconventional oil and gas reserves in the Midland Basin of the greater Permian Basin in West Texas.  For more information about the Company, please visit www.approachresources.com.  Please note that the Company routinely posts important information about the Company under the Investor Relations section of its website.

CONTACT: INVESTOR CONTACT
Suzanne Ogle
Vice President Investor Relations & Corporate Communication
ir@approachresources.com
817.989.9000

Noble Energy Sanctions Leviathan Project Offshore Israel

Houston, Feb. 23, 2017 (GLOBE NEWSWIRE) — Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or “the Company”) announced today that it has sanctioned the first phase of the Leviathan natural gas project offshore Israel, with first gas targeted for the end of 2019.  Noble Energy is the operator of the Leviathan Field, which contains 22 trillion cubic feet (Tcf) of gross recoverable natural gas resources.

David L. Stover, Noble Energy’s Chairman, President and CEO, commented, “Leviathan marks our third major natural gas development offshore Israel. Bringing Leviathan online will expand Israel’s supply of natural gas, further support the State’s commitment to convert coal-fired power generation facilities to cleaner burning gas, and provide affordable energy resources to Israeli citizens and neighboring countries in the undersupplied region. Leviathan will provide a second source of natural gas for Israel through a separate tie-in location in northern Israel.  Noble Energy’s financial strength and capability, proven technical expertise, and phased Leviathan project development approach position us to commence first gas on schedule and within budget.”

Stover concluded, “Sanction and development of Leviathan build on recent portfolio milestones and reinforce our focus on high-margin growth. Leviathan will generate robust project economics, have strong investment efficiency, and provide long-term cash flows. With 40 Tcf gross recoverable resources discovered by Noble Energy in the region, we can continue to grow our Eastern Mediterranean business for decades.  This includes material additional development beyond phase one at Leviathan.”

Leviathan’s initial development will include four subsea wells, each capable of flowing more than 300 million cubic feet per day (MMcf/d) of natural gas. Initial Leviathan proved reserve bookings associated with this investment are 3.3 Tcf net (9.4 Tcf gross) and are expected to be recorded in 2017.  This translates into approximately 550 million barrels of oil equivalent net, representing an increase of over 35 percent to total company reserves.

Production will be gathered at the field and delivered via two 73-mile flowlines to a fixed platform, with full processing capabilities, located approximately 6 miles offshore. The Leviathan platform will have an initial deck weight of 22,000 tons.  Processed gas will connect to the Israel Natural Gas Lines Ltd. onshore transportation grid in the northern part of the country and to regional markets via onshore export pipelines. The approved development plan allows for significant future cost-effective expansion from its initial 1.2 billion cubic feet per day (Bcf/d) capacity to 2.1 Bcf/d.

The Company estimates gross capital for phase one of Leviathan development will be $3.75 billion ($1.5 billion net to Noble Energy), which includes approximately $100 million spent in 2016 and approximately $200 million pre-investment for future platform expansion. The Company can fund phase one of Leviathan through Tamar operating cash flows as well as Eastern Mediterranean portfolio proceeds. Regional portfolio proceeds received to-date total approximately $575 million, net. The Company is also securing access to a financing facility for additional funding flexibility.

Front-end engineering and design are complete, the Company is currently finalizing major project contracts, and long lead materials procurement has begun.  Noble Energy and partners anticipate drilling one to two Leviathan development wells in 2017.  Completion activity for all four producer wells, including two previously drilled, is anticipated in 2018. The Company expects to complete project installation and initiate commissioning in the fourth quarter of 2019, with delivery of first gas targeted for the end of 2019.

Marketing progress has resulted in total volumes under firm gas sales agreements to date of up to 525 MMcf/d.  Combined gross revenues for these contracts are estimated to be in excess of $15 billion over the life of the agreements. Total quantities of the executed gas sales agreements, together with domestic and regional volumes under negotiation, now exceed 1 Bcf/d gross.

Leviathan blended sales price realizations for the domestic and regional markets are estimated between $5.50 and $6 per thousand cubic feet (Mcf) based on current Brent oil pricing. Pricing is protected in a low commodity price environment with firm floors and has upside potential linked to Brent oil price increases. Terms of the domestic pricing are responsive to the Natural Gas Regulatory Framework and reflect current market conditions.

The Company’s targeted sales volumes are 1 Bcf/d gross at startup. Operating cash flow for the first year following startup is projected to be at least $650 million net and full project payout is expected within 3 years following startup at target volumes.

Noble Energy operates Leviathan with a 39.66 percent working interest.  Other interest owners are Delek Drilling with 22.67 percent, Avner Oil Exploration with 22.67 percent, and Ratio Oil Exploration (1992) Limited Partnership with the remaining 15 percent. 

A supplemental Leviathan presentation is accessible on the ‘Investors’ page at www.nobleenergyinc.com.  

Noble Energy (NYSE: NBL) is an independent oil and natural gas exploration and production company with a diversified high-quality portfolio of both U.S. unconventional and global offshore conventional assets spanning three continents. Founded more than 80 years ago, the company is committed to safely and responsibly delivering our purpose: Energizing the World, Bettering People’s Lives®. For more information, visit www.nobleenergyinc.com.

Forward Looking Statements

This news release contains certain forward-looking statements within the meaning of federal securities law. Words such as anticipates, believes”, expects, intends, will, should, may, and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect Noble Energys current views about future events. They may include estimates of oil and natural gas reserves, estimates of future production, assumptions regarding future oil and natural gas pricing, planned drilling activity, future results of operations, projected cash flow and liquidity, business strategy and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, without limitation, the volatility in commodity prices for crude oil and natural gas, the presence or recoverability of estimated reserves, the ability to replace reserves, environmental risks, drilling and operating risks, exploration and development risks, competition, government regulation or other actions, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energys business that are discussed in its most recent annual report on Form 10-K and in other reports on file with the Securities and Exchange Commission. These reports are also available from Noble Energys offices or website, http://www.nobleenergyinc.com. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Noble Energy does not assume any obligation to update forward-looking statements should circumstances, managements estimates, or opinions change.

The Securities and Exchange Commission requires oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The SEC permits the optional disclosure of probable and possible reserves, however, we have not disclosed the Company’s probable and possible reserves in our filings with the SEC. We use certain terms in this news release, such as “gross recoverable natural gas resources” and “gross recoverable resources,” which are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our most recent annual report on Form 10-K and in other reports on file with the SEC, available from Noble Energy’s offices or website, http://www.nobleenergyinc.com.

CONTACT: Investor Contacts
Brad Whitmarsh
(281) 943-1670   
brad.whitmarsh@nblenergy.com

Megan Repine
(832) 639-7380 
megan.repine@nblenergy.com

Media Contacts
Reba Reid
(713) 412-8441
media@nblenergy.com

Paula Beasley
(281) 876-6133
media@nblenergy.com

Advanced Emissions Solutions to Host Fourth Quarter and Year-end 2016 Conference Call on March 14th

HIGHLANDS RANCH, Colo., Feb. 22, 2017 (GLOBE NEWSWIRE) — Advanced Emissions Solutions, Inc. (NASDAQ:ADES) (the “Company” or “ADES”) today announced that it will report results for the fourth quarter and full year 2016 on March 14, 2017.  A conference call is scheduled for 9:00 a.m. ET on March 14, 2017 to discuss the financial and operational results for the fourth quarter and full year 2016.

The conference call webcast information will be available via the Investor Resources section of ADES’s website at www.advancedemissionssolutions.com. Interested parties may also participate in the call by dialing: (877) 201-0168 (Domestic) or (647) 788-4901 (International) conference ID 39354956. A supplemental investor presentation will be available on the Company’s Investor Resources section of the website prior to the start of the conference call. 

About Advanced Emissions Solutions, Inc.

Advanced Emissions Solutions, Inc. serves as the holding entity for a family of companies that provide emissions solutions to customers in the power generation and other industries.

ADA-ES, Inc. (“ADA”) is a wholly-owned subsidiary of Advanced Emissions Solutions, Inc. (“ADES”) that provides emissions control solutions for coal-fired power generation and industrial boiler industries. With more than 25 years of experience developing advanced mercury control solutions, ADA delivers proprietary environmental technologies, equipment and specialty chemicals that enable coal-fueled boilers to meet emissions regulations. These solutions enhance existing air pollution control equipment, maximizing capacity and improving operating efficiencies.   Our track record includes securing more than 30 US patents for emissions control technology and systems and selling the most activated carbon injection systems for power plant mercury control in North America. For more information on ADA, its products and services, visit www.adaes.com or the ADA Blog (http://blog.adaes.com/).

Tinuum Group, LLC (“Tinuum Group”) is a 42.5% owned joint venture by ADA that provides ADA’s patented Refined Coal (“RC”) CyClean™ technology to enhance combustion of and reduce emissions of NOx and mercury from coals in cyclone boilers and ADA’s patent pending M-45™ and M-45-PC™ technologies for Circulating Fluidized boilers and Pulverized Coal boilers respectively.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a “safe harbor” for such statements in certain circumstances. The forward-looking statements include statements or expectations regarding timing and the Company’s ability to file its Annual Report on Form 10-K for the year ended December 31, 2016 (“10-K Filing”), provide an investor presentation on the Company’s website, and host a conference call by the dates specified. These statements are based on current expectations, estimates, projections, beliefs and assumptions of the Company’s management. Such statements involve significant risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to, the completion of the 10-K Filing may take longer than expected and other factors discussed in greater detail in the Company’s filings with the Securities and Exchange Commission (“SEC”). You are cautioned not to place undue reliance on such statements and to consult the Company’s SEC filings for additional risks and uncertainties that may apply to the Company’s business and the ownership of its securities. The Company’s forward-looking statements are presented as of the date made, and the Company disclaims any duty to update such statements unless required by law to do so.

CONTACT: Investor Contact:
Alpha IR Group
Ryan Coleman or Chris Hodges
312-445-2870
ADES@alpha-ir.com

Rex Energy Announces Date of Fourth Quarter and Full-Year 2016 Earnings Release

STATE COLLEGE, Pa., Feb. 21, 2017 (GLOBE NEWSWIRE) — Rex Energy Corporation (Nasdaq:REXX) today announced plans to release fourth quarter and full-year 2016 financial and operational results on Tuesday, March 7, 2017 after market close. Management will host a live conference call and webcast on Wednesday, March 8, 2017 at 10 a.m. ET to review fourth quarter and full-year 2016 financial results and operational highlights.

The telephone number to access the conference call is (866) 437-1772. The conference call will also be available for replay through the company’s website at www.rexenergy.com under the Investor Relations tab.

About Rex Energy Corporation

Headquartered in State College, Pennsylvania, Rex Energy is an independent oil and gas exploration and production company with its core operations in the Appalachian Basin. The company’s strategy is to pursue its higher potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.

CONTACT: For more information contact:

Investor Relations
(814) 278-7130
InvestorRelations@rexenergycorp.com

Vestas Returns to No. 1 Spot in Global Wind Turbine Supplier Ranking in 2016

LONDON, Feb. 20, 2017 (GLOBE NEWSWIRE) — FTI Consulting, Inc. (NYSE:FCN) today released FTI Intelligence’s preliminary rankings for the world’s top five wind turbine original equipment manufacturers (“OEMs”), which found Danish manufacturer Vestas reclaimed the title as the world’s largest supplier of wind turbines in 2016.

These rankings will be published in the Global Wind Market Update ― Demand & Supply 2016, which will be released in March 2017. Preliminary results are subject to change between now and the release date of the actual report. The report is part of a series of data-driven market intelligence publications evaluating competitive markets, policy, finance, technology and business models across the energy spectrum.

Vestas’ return to the top spot was particularly driven by increased installations in the U.S. market, where it overtook U.S. manufacturer GE as the No. 1 supplier, according to preliminary findings from FTI Intelligence. GE and Enercon rose to second and fifth place, respectively, by taking advantage of strong domestic market growth in the United States and Germany.

Chinese supplier Goldwind fell two positions to third place, primarily due to a 24 percent drop in China’s wind power installations, according to FTI Intelligence research. Spain’s Gamesa moved up one position to No. 4, largely attributable to its strong presence in India and emerging markets.
                                                                
At this time, FTI Intelligence assigns the following OEM market rankings:

2016
Ranking
Turbine OEM Change Commentary
1 Vestas * +1 Up from 2nd position in 2015
2 GE * +1 Up from 3rd position in 2015
3 Goldwind ** 2 Down from 1st position in 2015
4 Gamesa* +1 Up from 5th position in 2015
5 Enercon* +1 Up from 6th position in 2015

* Based on preliminary data analysis                                                 
** Based on installation data released by CWEA                                                                                                        
Note: Gamesa and Siemens are ranked separately as the merger between Siemens Wind and Gamesa is not yet finalised.

Among other highlights, FTI Intelligence notes that Siemens dropped out of the top five for the first time since 2012, mainly due to its decreased annual installation in both the United States and offshore wind sector in 2016. In addition, Nordex returned to the top 10 after its recent acquisition of Acciona’s turbine business.

The Global Wind Market Update – Demand & Supply 2016 report examines the evolution of the global wind market in 2016 and addresses key market and technology trends and policy updates. It also forecasts global demand trends through 2026. This report will be available free of charge on FTI Intelligence’s website in March 2017.

Preliminary Findings in the Global Wind Market Update – Demand & Supply 2016:

  • 14 percent drop year-on-year in new wind installations in 2016 vs. 2015. Following a record 2015 with 63 GW of installations, the best year ever for the wind industry, 2016 showed a 14 percent drop in installations. A slowdown of installations in China is the primary reason for the decrease. That said, there were a few notable achievements for the wind power sector in 2016. Wind overtook coal as the second-largest form of power generation in the EU in terms of total installed power capacity, just behind natural gas. In the United States, wind passed a historic milestone to overtake hydropower as the largest renewable energy source of energy. The UK generated more electricity from wind than from coal in the full calendar year of 2016.
  • Solar PV replaced wind as the No. 1 non-hydro renewable energy source in 2016. Due to explosive growth in China, global solar PV installations in 2016 passed 70 GW. In addition, solar PV is emerging as a strong competitor to wind in regard to its cost, beating wind in the first and second power auctions in Mexico in 2016. Wind, however, eclipsed solar in the renewable tenders launched in Chile and Argentina in 2016. Interestingly, four out of the world’s top 10 wind turbine vendors have already entered the solar industry.
  • Paris Agreement came into force. On 5 October 2016, the Paris Agreement, the UN international agreement on climate change, entered into force. Out of 197 parties to the convention, 132 have ratified the agreement. Such international support reflects strong momentum behind the global transition to clean energy. 
  • Near-term stable growth in the United States is secured, but medium-term outlook is uncertain. The U.S. wind market outlook in the near term remains stable, as the new Treasury secretary has confirmed support for the existing smooth phase-out of the Production Tax Credit (“PTC”). However, U.S. market development in the medium term remains uncertain as President Trump has repeatedly called for the repeal of the Clean Power Plan (“CPP”) and the United States exiting the Paris Agreement.
  • Consolidation continues to occur across the value chain. In the past 12 months, large turbine vendors not only snapped up rivals (Siemens/Gamesa, Gamesa/Adwen, Senvion/Kenersys and WEG/Northern Power Systems) to gain new strategic positioning, but also acquired assets upstream in the value chain (GE/LM Wind Power, Senvion/EUROS and most recently, Nordex/SSP). In addition, state-owned Chinese companies were very active in the overseas market and acquired renewable assets around the world (SPIC/PacificHydro and China Three Gorges/Meerwind).  
  • Offshore wind cost reduction targets have been beaten. Results of the awarded offshore wind tenders launched in Denmark (the lowest bid, €49.9/MWh at Kriegers Flak) and the Netherlands (the lowest bid, €54.5/MWh at Borssele III+IV) in 2016 (both excluding transmission costs of around €14/MWh) indicate that the LCOE (levelised cost of electricity) for offshore wind in Europe has reduced significantly in the past five years, and they also suggest that returns on investment are compressing here.   
  • Corporate PPAs continue to grow. The wind industry saw the increased use of power purchase agreements (“PPAs”), self-consumption and direct contracts with customers in the past three years. Cumulative corporate renewable PPA capacity contracted in the United States passed the 7 GW milestone at the end of 2016. With 1 GW contracted today, Europe lags behind the United States, but this is expected to change as the commercial and industrial (“C&I”) segment wants secure green energy on a long-term basis due to rising electricity prices and the competitive prices offered by renewables.
  • Digitalization. Increased data quality, data access and grid integration are enabling increasing data analytics across the value chain in siting and design, asset performance management, asset health management and trading and balancing in the wind sector. Major turbine OEMs continued to launch advanced analytics packages in 2016 that can be applied throughout value chain. Following GE’s launch of an industrial data and analytics product, Predix Cloud, to the market in August 2015, Vestas and Envision launched Clearsightᵀᴹ and Ensightᵀᴹ, respectively, in 2016, and the data analytics market is expected to grow significantly.

“The drop in wind power installations in 2016 has brought the wind industry back to reality, as 2015 was an unusual year due to strong demand in China ahead of a change in Feed in Tariffs (‘FiTs’),” said Feng Zhao, a Senior Director at FTI Consulting. “The relatively poor performance of Chinese turbine OEMs in 2016 has shown that relying heavily on the home market for growth is not a guarantee for sustainable success.”

Aris Karcanias, a Senior Managing Director at FTI Consulting and Co-Lead of the Clean Energy practice, added: “Solar PV not only replaced wind as the most popular renewable energy source in 2016, but also beat wind power in the power auctions launched in Mexico. However, we view this as positive news because the competition is certain to create another wave of technology innovation in the wind industry in order to further bring down the LCOE and make renewable energy even more competitive and affordable.”

The Global Wind Market Update – Demand & Supply 2016 report is authored by members of the FTI-CL Energy practice, a cross-practice team of energy experts from FTI Consulting and its subsidiary, Compass Lexecon. The views expressed in this piece are those of the authors and are not necessarily the views of FTI Consulting, its other professionals, its management or its subsidiaries and affiliates.

To learn more about FTI Intelligence’s Global Wind Market Update – Demand & Supply 2016, please visit the FTI Intelligence website at www.fti-intelligence.com or contact fti-intelligence@fticonsulting.com.

About FTI Intelligence
FTI Intelligence clean energy research concentrates on the global, rapidly evolving renewable energy market, with a focus on wind, solar, biomass, wave, tidal and small hydro technologies. The foundation of these publications is primary research that delivers a wealth of market intelligence supported by hard data, competitive analysis and strategic insight. Our team members include leading energy industry experts and an extensive network of professionals who deliver cutting-edge focus and insight.

FTI Intelligence research delivers:

  • Market forecasts for installations
  • Analysis on new policy initiatives, business models, technologies and financing initiatives
  • Supply/demand balance across the value chain

About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organisations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 4,600 employees located in 29 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $1.78 billion in revenues during fiscal year 2015. For more information, visit www.fticonsulting.com and connect with us on Twitter (@FTIConsulting), Facebook and LinkedIn.

CONTACT: FTI Consulting, Inc.
200 Aldersgate
Aldersgate Street
London EC1A 4HD

Investor Contact:
Mollie Hawkes
+1.617.747.1791
mollie.hawkes@fticonsulting.com

Media Contact:
Michael Rosen
+44.20.3727.1751
michael.rosen@fticonsulting.com

Vestas Returns to No. 1 Spot in Global Wind Turbine Supplier Ranking in 2016

LONDON, Feb. 20, 2017 (GLOBE NEWSWIRE) — FTI Consulting, Inc. (NYSE:FCN) today released FTI Intelligence’s preliminary rankings for the world’s top five wind turbine original equipment manufacturers (“OEMs”), which found Danish manufacturer Vestas reclaimed the title as the world’s largest supplier of wind turbines in 2016.

These rankings will be published in the Global Wind Market Update ― Demand & Supply 2016, which will be released in March 2017. Preliminary results are subject to change between now and the release date of the actual report. The report is part of a series of data-driven market intelligence publications evaluating competitive markets, policy, finance, technology and business models across the energy spectrum.

Vestas’ return to the top spot was particularly driven by increased installations in the U.S. market, where it overtook U.S. manufacturer GE as the No. 1 supplier, according to preliminary findings from FTI Intelligence. GE and Enercon rose to second and fifth place, respectively, by taking advantage of strong domestic market growth in the United States and Germany.

Chinese supplier Goldwind fell two positions to third place, primarily due to a 24 percent drop in China’s wind power installations, according to FTI Intelligence research. Spain’s Gamesa moved up one position to No. 4, largely attributable to its strong presence in India and emerging markets.
                                                                
At this time, FTI Intelligence assigns the following OEM market rankings:

2016
Ranking
Turbine OEM Change Commentary
1 Vestas * +1 Up from 2nd position in 2015
2 GE * +1 Up from 3rd position in 2015
3 Goldwind ** 2 Down from 1st position in 2015
4 Gamesa* +1 Up from 5th position in 2015
5 Enercon* +1 Up from 6th position in 2015

* Based on preliminary data analysis                                                 
** Based on installation data released by CWEA                                                                                                        
Note: Gamesa and Siemens are ranked separately as the merger between Siemens Wind and Gamesa is not yet finalised.

Among other highlights, FTI Intelligence notes that Siemens dropped out of the top five for the first time since 2012, mainly due to its decreased annual installation in both the United States and offshore wind sector in 2016. In addition, Nordex returned to the top 10 after its recent acquisition of Acciona’s turbine business.

The Global Wind Market Update – Demand & Supply 2016 report examines the evolution of the global wind market in 2016 and addresses key market and technology trends and policy updates. It also forecasts global demand trends through 2026. This report will be available free of charge on FTI Intelligence’s website in March 2017.

Preliminary Findings in the Global Wind Market Update – Demand & Supply 2016:

  • 14 percent drop year-on-year in new wind installations in 2016 vs. 2015. Following a record 2015 with 63 GW of installations, the best year ever for the wind industry, 2016 showed a 14 percent drop in installations. A slowdown of installations in China is the primary reason for the decrease. That said, there were a few notable achievements for the wind power sector in 2016. Wind overtook coal as the second-largest form of power generation in the EU in terms of total installed power capacity, just behind natural gas. In the United States, wind passed a historic milestone to overtake hydropower as the largest renewable energy source of energy. The UK generated more electricity from wind than from coal in the full calendar year of 2016.
  • Solar PV replaced wind as the No. 1 non-hydro renewable energy source in 2016. Due to explosive growth in China, global solar PV installations in 2016 passed 70 GW. In addition, solar PV is emerging as a strong competitor to wind in regard to its cost, beating wind in the first and second power auctions in Mexico in 2016. Wind, however, eclipsed solar in the renewable tenders launched in Chile and Argentina in 2016. Interestingly, four out of the world’s top 10 wind turbine vendors have already entered the solar industry.
  • Paris Agreement came into force. On 5 October 2016, the Paris Agreement, the UN international agreement on climate change, entered into force. Out of 197 parties to the convention, 132 have ratified the agreement. Such international support reflects strong momentum behind the global transition to clean energy. 
  • Near-term stable growth in the United States is secured, but medium-term outlook is uncertain. The U.S. wind market outlook in the near term remains stable, as the new Treasury secretary has confirmed support for the existing smooth phase-out of the Production Tax Credit (“PTC”). However, U.S. market development in the medium term remains uncertain as President Trump has repeatedly called for the repeal of the Clean Power Plan (“CPP”) and the United States exiting the Paris Agreement.
  • Consolidation continues to occur across the value chain. In the past 12 months, large turbine vendors not only snapped up rivals (Siemens/Gamesa, Gamesa/Adwen, Senvion/Kenersys and WEG/Northern Power Systems) to gain new strategic positioning, but also acquired assets upstream in the value chain (GE/LM Wind Power, Senvion/EUROS and most recently, Nordex/SSP). In addition, state-owned Chinese companies were very active in the overseas market and acquired renewable assets around the world (SPIC/PacificHydro and China Three Gorges/Meerwind).  
  • Offshore wind cost reduction targets have been beaten. Results of the awarded offshore wind tenders launched in Denmark (the lowest bid, €49.9/MWh at Kriegers Flak) and the Netherlands (the lowest bid, €54.5/MWh at Borssele III+IV) in 2016 (both excluding transmission costs of around €14/MWh) indicate that the LCOE (levelised cost of electricity) for offshore wind in Europe has reduced significantly in the past five years, and they also suggest that returns on investment are compressing here.   
  • Corporate PPAs continue to grow. The wind industry saw the increased use of power purchase agreements (“PPAs”), self-consumption and direct contracts with customers in the past three years. Cumulative corporate renewable PPA capacity contracted in the United States passed the 7 GW milestone at the end of 2016. With 1 GW contracted today, Europe lags behind the United States, but this is expected to change as the commercial and industrial (“C&I”) segment wants secure green energy on a long-term basis due to rising electricity prices and the competitive prices offered by renewables.
  • Digitalization. Increased data quality, data access and grid integration are enabling increasing data analytics across the value chain in siting and design, asset performance management, asset health management and trading and balancing in the wind sector. Major turbine OEMs continued to launch advanced analytics packages in 2016 that can be applied throughout value chain. Following GE’s launch of an industrial data and analytics product, Predix Cloud, to the market in August 2015, Vestas and Envision launched Clearsightᵀᴹ and Ensightᵀᴹ, respectively, in 2016, and the data analytics market is expected to grow significantly.

“The drop in wind power installations in 2016 has brought the wind industry back to reality, as 2015 was an unusual year due to strong demand in China ahead of a change in Feed in Tariffs (‘FiTs’),” said Feng Zhao, a Senior Director at FTI Consulting. “The relatively poor performance of Chinese turbine OEMs in 2016 has shown that relying heavily on the home market for growth is not a guarantee for sustainable success.”

Aris Karcanias, a Senior Managing Director at FTI Consulting and Co-Lead of the Clean Energy practice, added: “Solar PV not only replaced wind as the most popular renewable energy source in 2016, but also beat wind power in the power auctions launched in Mexico. However, we view this as positive news because the competition is certain to create another wave of technology innovation in the wind industry in order to further bring down the LCOE and make renewable energy even more competitive and affordable.”

The Global Wind Market Update – Demand & Supply 2016 report is authored by members of the FTI-CL Energy practice, a cross-practice team of energy experts from FTI Consulting and its subsidiary, Compass Lexecon. The views expressed in this piece are those of the authors and are not necessarily the views of FTI Consulting, its other professionals, its management or its subsidiaries and affiliates.

To learn more about FTI Intelligence’s Global Wind Market Update – Demand & Supply 2016, please visit the FTI Intelligence website at www.fti-intelligence.com or contact fti-intelligence@fticonsulting.com.

About FTI Intelligence
FTI Intelligence clean energy research concentrates on the global, rapidly evolving renewable energy market, with a focus on wind, solar, biomass, wave, tidal and small hydro technologies. The foundation of these publications is primary research that delivers a wealth of market intelligence supported by hard data, competitive analysis and strategic insight. Our team members include leading energy industry experts and an extensive network of professionals who deliver cutting-edge focus and insight.

FTI Intelligence research delivers:

  • Market forecasts for installations
  • Analysis on new policy initiatives, business models, technologies and financing initiatives
  • Supply/demand balance across the value chain

About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organisations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 4,600 employees located in 29 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $1.78 billion in revenues during fiscal year 2015. For more information, visit www.fticonsulting.com and connect with us on Twitter (@FTIConsulting), Facebook and LinkedIn.

CONTACT: FTI Consulting, Inc.
200 Aldersgate
Aldersgate Street
London EC1A 4HD

Investor Contact:
Mollie Hawkes
+1.617.747.1791
mollie.hawkes@fticonsulting.com

Media Contact:
Michael Rosen
+44.20.3727.1751
michael.rosen@fticonsulting.com

Woodward Announces Appointment of New Board Member Daniel G. Korte

FORT COLLINS, Colo., Feb. 16, 2017 (GLOBE NEWSWIRE) — Woodward, Inc. (NASDAQ:WWD) today announced that its Board of Directors has appointed Daniel G. (“Dan”) Korte (56) to serve on the Board, effective immediately. Mr. Korte will also serve on the Audit Committee of the Board.

Mr. Korte joined St. Louis, Missouri-based LMI Aerospace in 2014, where he serves as CEO. Prior to joining LMI, he was the President of the Rolls Royce Defense Group in Washington, DC and London, UK. Prior experience includes various senior level roles at The Boeing Company in supply chain, program management and general management.

“Mr. Korte is a results-oriented leader, skilled in identifying and capitalizing on global market opportunities that drive revenue and profitable growth. His experience and strong contributions in the commercial and defense aerospace markets brings a valuable set of skills to our Board,” said Thomas A. Gendron, Woodward Chairman of the Board and Chief Executive Officer.

Mr. Korte holds a Bachelor’s degree in Electrical Engineering from Southern Illinois University and received his MBA from Lindenwood University.

About Woodward, Inc.

Woodward is an independent designer, manufacturer, and service provider of control system solutions and components for the aerospace and industrial markets. The company’s innovative fluid, combustion, electrical, and motion control systems help customers offer cleaner, more reliable, and more efficient equipment. Our customers include leading original equipment manufacturers and end users of their products. Woodward is a global company headquartered in Fort Collins, Colorado, USA. Visit our website at www.woodward.com, and connect with us at www.facebook.com/woodwardinc.

About LMI Aerospace

LMI Aerospace Inc. is a leading supplier of structural assemblies, kits and components and provider of engineering services to the commercial, business and regional, and military aerospace markets. Manufacturing more than 40,000 products for a variety of platforms and providing turnkey engineering capabilities to support aircraft lifecycles, LMI offers complete, integrated solutions in aerostructures, engineering and program management. Headquartered in St. Louis, LMI has 21 locations across the United States and in Mexico, the United Kingdom and Sri Lanka. For more information, visit: www.lmiaerospace.com.

Notice Regarding Forward-Looking Statements

The statements in this release contain forward-looking statements that involve risks and uncertainties. Actual results could differ materially from projections or any other forward-looking statements and we have no obligation to update our forward-looking statements. Factors that could affect performance and could cause actual results to differ materially from projections and forward-looking statements are described in Woodward’s Annual Report and Form 10-K for the year ended September 30, 2016 and any subsequently filed Quarterly Report on Form 10-Q.

CONTACT: CONTACT:	

Woodward, Inc.
Tracy Gohari
Business Communications
970-498-3126
Tracy.Gohari@Woodward.com	

LMI Aerospace, Inc.
Amy Horton
Corporate Communications
639-916-2130
AHorton@lmiaerospace.com

Oil States Announces Fourth Quarter 2016 Results

Fourth Quarter Highlights:

  • Reports net loss per diluted share of $0.21; $0.20 adjusted net loss per diluted share excluding severance and other downsizing charges
  • Well site services generated positive EBITDA margins for the first time in three quarters
  • Offshore products’ EBITDA margin averaged 22.1%
  • Offshore products’ book-to-bill ratio totaled 0.98x; full year book-to-bill ratio totaled 0.74x
  • Reduced total debt by $21 million during the quarter; total debt to total capitalization ratio ended the quarter at 3.7%

HOUSTON, Feb. 15, 2017 (GLOBE NEWSWIRE) — Oil States International, Inc. (NYSE:OIS) reported a net loss for the fourth quarter of 2016 of $10.6 million, or $0.21 per diluted share, which included pre-tax charges of $0.6 million ($0.4 million after-tax, or $0.01 per diluted share) for severance and other downsizing charges. These results compare to reported net income for the fourth quarter of 2015 of $1.1 million, or $0.02 per diluted share, which included a total of $5.3 million after-tax, or $0.11 per diluted share, of severance and other downsizing charges, a leasehold restoration provision for one of our offshore products facilities in the U.K. (charge was included as a component of depreciation and amortization expense), a higher quarterly effective tax rate due to deferred tax asset write-offs and tax valuation allowances.

During the fourth quarter of 2016, the Company generated revenues of $169.9 million and Adjusted Consolidated EBITDA (Note B) of $13.7 million (excluding $0.6 million for severance and other downsizing charges). These results compare to revenues of $234.5 million and Adjusted Consolidated EBITDA of $42.5 million reported in the fourth quarter of 2015 (excluding $1.9 million of severance and other downsizing charges). 

For the year ended December 31, 2016, the Company reported revenues of $694.4 million and Adjusted Consolidated EBITDA of $55.5 million (excluding $5.2 million of severance and other downsizing charges). The net loss for full year 2016 totaled $46.4 million, or $0.92 per diluted share, and included $5.2 million ($3.3 million after-tax, or $0.06 per diluted share) of severance and other downsizing charges. For the year ended December 31, 2015, the Company reported revenues of $1.1 billion and Adjusted Consolidated EBITDA of $194.1 million (excluding $6.4 million of severance and other downsizing charges). Net income for full year 2015 totaled $28.4 million, or $0.55 per diluted share, and included a total of $17.5 million ($14.7 million after-tax, or $0.29 per diluted share) of severance and other downsizing initiatives ($6.4 million pre-tax, or $0.09 per diluted share), a leasehold restoration provision for one of our offshore products facilities in the U.K. ($3.4 million pre-tax, or $0.05 per diluted share; charge was included as a component of depreciation and amortization expense), a higher effective tax rate driven by $3.6 million ($0.07 per diluted share) of deferred tax asset write-offs and $4.1 million ($0.08 per diluted share) of tax valuation allowances recorded against certain of the Company’s deferred tax assets.

Oil States’ President and Chief Executive Officer, Cindy B. Taylor, stated, “We concluded the fourth quarter 2016 with results that reflect the benefit of existing backlog and sound project execution in our offshore products segment coupled with the beginnings of a recovery in U.S. onshore markets, which benefitted our well site services segment. Our quarterly book-to-bill ratio was 0.98x in our offshore products segment suggesting that a floor in backlog should emerge in early 2017. Nonetheless, we entered 2017 with backlog that is down 41% from the beginning of 2016, creating revenue headwinds for 2017. Commodity prices and U.S. land rig count trends are favorable for our well site services segment going into 2017.”

BUSINESS SEGMENT RESULTS

Offshore Products
Offshore products generated revenues and Segment EBITDA (Note A) of $115.0 million and $25.4 million, respectively, in the fourth quarter of 2016 compared to revenues of $169.8 million and Segment EBITDA of $50.8 million in the fourth quarter of 2015. Offshore products revenues and Segment EBITDA decreased 32% and 50% year-over-year, respectively, due to lower contributions across most of the segment’s product and service lines, particularly those tied to major project sanctions. The lower quarterly revenues were primarily the result of weaker demand for drilling products, production and pipeline infrastructure products, lower levels of service activities and a backlog position that has trended lower since mid-2014, partially offset by an 82% improvement in elastomer product revenues which are benefitting from U.S. land based activity. Segment EBITDA margin was 22.1% in the fourth quarter of 2016 compared to an unusually high margin of 30.0% realized in the fourth quarter of 2015, due to the number of major projects that were nearing completion at the end of 2015.  Backlog declined 2% sequentially, totaling $199 million at December 31, 2016 compared to $203 million reported at September 30, 2016 and $340 million reported at December 31, 2015. Major backlog additions during the fourth quarter included an order for production riser equipment on a floating production system.  

Well Site Services
Well site services generated revenues of $54.9 million and Segment EBITDA of $1.1 million in the fourth quarter of 2016 compared to revenues and Segment EBITDA of $64.7 million and $1.2 million, respectively, in the fourth quarter of 2015.  Well site services revenues and Segment EBITDA decreased 15% and 7% year-over-year, respectively, primarily due to a 39% year-over-year decrease in the number of completion services jobs performed, partially offset by a 40% year-over-year increase in revenue per completion service job primarily as a result of a mix shift to more long-duration jobs in international markets and longer-term project work in the U.S. Gulf of Mexico, in contrast to any significant market price improvements. The average U.S. rig count declined 164 rigs, or 22%, in the fourth quarter 2016 compared to the same quarter in 2015. Lower utilization in the land drilling business, which averaged 18% in the fourth quarter of 2016 compared to 22% in the fourth quarter of 2015, also impacted the quarterly results.

Income Taxes
The Company recognized an effective tax rate benefit of 37.8% in the fourth quarter of 2016 and an annualized effective tax rate benefit of 36.7% for 2016. This compares to an unusually high effective tax rate provision of 76.1% in the fourth quarter of 2015 bringing the annualized effective tax rate provision for 2015 to 43.9%. The higher effective tax rate in the fourth quarter and full year 2015 was due to deferred tax adjustments, certain non-deductible items and tax valuation allowances recorded.

Financial Condition
As of December 31, 2016, $42.2 million was outstanding under the Company’s revolving credit facility while cash totaled $68.8 million. Total availability under the facility as of December 31, 2016 was $153.1 million (net of standby letters of credit totaling $30.7 million), which is less than the full amount of the facility due to limitations imposed by the maintenance covenant of 3.25 times trailing twelve months Consolidated EBITDA, adjusted for certain non-cash items.

Conference Call Information
The call is scheduled for Thursday, February 16, 2017 at 11:00 am ET, and is being webcast and can be accessed from the Company’s website at www.ir.oilstatesintl.com. Participants may also join the conference call by dialing (800) 446-2782 in the United States or by dialing +1 847 413 3235 internationally and using the passcode 44303503. A replay of the conference call will be available one and a half hours after the completion of the call by dialing (888) 843-7419 in the United States or by dialing +1 630 652 3042 internationally and entering the passcode 44303503.

About Oil States
Oil States International, Inc. is an energy services company with a leading market position as a manufacturer of products for deepwater production facilities, certain drilling equipment and shorter-cycle consumable products, as well as a provider of completion services and land drilling services to the oil and gas industry.  Oil States is publicly traded on the New York Stock Exchange under the symbol “OIS”.

For more information on the Company, please visit Oil States International’s website at www.oilstatesintl.com.

Forward Looking Statements
The foregoing 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. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included therein are based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the energy service industry and other factors discussed in the “Business” and “Risk Factors” sections of the Form 10-K for the year ended December 31, 2015 filed by Oil States with the Securities and Exchange Commission on February 22, 2016.

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
 
    Three Months Ended December 31,     Year Ended December 31,
      2016       2015       2016       2015  
    (unaudited)   (unaudited)   (unaudited)    
Revenues:                
Products   $ 92,608     $ 138,553     $ 416,174     $ 561,018  
Service     77,326       95,921       278,270       538,959  
      169,934       234,474       694,444       1,099,977  
                 
Costs and expenses:                
Product costs     60,415       85,578       288,270       395,137  
Service costs     65,375       79,144       238,500       390,561  
Selling, general and administrative expenses     33,179       31,932       124,033       132,664  
Depreciation and amortization expense     29,054       34,515       118,720       131,257  
Other operating income, net     (1,698 )     (2,571 )     (5,796 )     (4,648 )
      186,325       228,598       763,727       1,044,971  
Operating income (loss)     (16,391 )     5,876       (69,283 )     55,006  
                 
Interest expense     (1,219 )     (1,551 )     (5,343 )     (6,427 )
Interest income     78       115       399       543  
Other income     440       225       902       1,446  
Income (loss) from continuing operations before income taxes     (17,092 )     4,665       (73,325 )     50,568  
Income tax benefit (provision)     6,465       (3,550 )     26,939       (22,197 )
Net income (loss) from continuing operations     (10,627 )     1,115       (46,386 )     28,371  
Net income (loss) from discontinued operations, net of tax           2       (4 )     226  
Net income (loss) attributable to Oil States   $ (10,627 )   $ 1,117     $ (46,390 )   $ 28,597  
                 
                 
Basic net income (loss) per share attributable to Oil States from:                
Continuing operations   $ (0.21 )   $ 0.02     $ (0.92 )   $ 0.55  
Discontinued operations                       0.01  
Net income (loss)   $ (0.21 )   $ 0.02     $ (0.92 )   $ 0.56  
                 
Diluted net income (loss) per share attributable to Oil States from:                
Continuing operations   $ (0.21 )   $ 0.02     $ (0.92 )   $ 0.55  
Discontinued operations                       0.01  
Net income (loss)   $ (0.21 )   $ 0.02     $ (0.92 )   $ 0.56  
                 
Weighted average number of common shares outstanding:                
Basic     50,224       49,813       50,174       50,269  
Diluted     50,224       49,839       50,174       50,335  

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Amounts)
 
  December 31,
    2016         2015  
  (unaudited)    
ASSETS
Current assets:      
Cash and cash equivalents $ 68,800     $ 35,973  
Accounts receivable, net   234,513       333,494  
Inventories, net   175,490       212,882  
Prepaid expenses and other current assets   11,174       29,124  
Total current assets   489,977       611,473  
       
Property, plant and equipment, net   553,402       638,725  
Goodwill, net   263,369       263,787  
Other intangible assets, net   52,746       59,385  
Other noncurrent assets   24,404       23,101  
Total assets $ 1,383,898     $ 1,596,471  
       
LIABILITIES AND STOCKHOLDERS’ EQUITY
       
Current liabilities:      
Current portion of long-term debt and capitalized leases $ 538     $ 533  
Accounts payable   34,207       59,116  
Accrued liabilities   45,018       49,300  
Income taxes payable   5,839       8,303  
Deferred revenue   21,315       36,655  
Other current liabilities   315       293  
Total current liabilities   107,232       154,200  
       
Long-term debt and capitalized leases (1)   45,388       125,887  
Deferred income taxes   5,036       40,497  
Other noncurrent liabilities   21,935       20,215  
Total liabilities   179,591       340,799  
       
Stockholders’ equity:      
Common stock, $.01 par value, 200,000,000 shares authorized, 62,295,870 shares and 61,712,805 shares issued, respectively   623       617  
Additional paid-in capital   731,562       712,980  
Retained earnings   1,133,473       1,179,863  
Accumulated other comprehensive loss   (70,300 )     (50,698 )
Treasury stock at cost, 10,921,509 and 10,759,656 shares, respectively   (591,051 )     (587,090 )
Total stockholders’ equity   1,204,307       1,255,672  
Total liabilities and stockholders’ equity $ 1,383,898     $ 1,596,471  
       

(1) As of December 31, 2016, the Company had $153.1 million available under its revolving credit facility (net of standby letters of credit totaling $30.7 million), which is less than the full amount of the facility due to the maintenance covenant of 3.25 times trailing twelve months Consolidated EBITDA, adjusted for certain non-cash items.

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
 
  Year Ended December 31  
    2016        2015    
  (unaudited)      
Cash flows from operating activities:        
Net income (loss) $   (46,390 )   $   28,597    
Adjustments to reconcile net income (loss) to net cash provided by operating activities:        
Income (loss) from discontinued operations   4         (226 )  
Depreciation and amortization   118,720       131,257    
Stock-based compensation expense   21,322       21,778    
Deferred income tax provision   (37,606 )     (3,173 )  
Tax impact of stock-based payment arrangements           (469 )  
Gains on disposals of assets   (802 )     (1,274 )  
Amortization of deferred financing costs   785         780    
Other, net   2,923         283    
Changes in operating assets and liabilities, net of effect from acquired businesses:        
Accounts receivable   85,503       156,945    
Inventories   32,158       17,777    
Accounts payable and accrued liabilities   (27,716 )     (98,354 )  
Income taxes payable   (1,930 )       4,897    
Other operating assets and liabilities, net   2,286        (3,050 )  
Net cash flows provided by continuing operating activities   149,257       255,768    
Net cash flows provided by discontinued operating activities           353    
Net cash flows provided by operating activities   149,257       256,121    
         
Cash flows from investing activities:        
Capital expenditures   (29,689 )     (114,738 )  
Acquisitions of businesses, net of cash acquired         (33,427 )  
Proceeds from disposition of property, plant and equipment   1,532         2,655    
Other, net   (1,135 )     (1,686 )  
Net cash flows used in investing activities   (29,292 )     (147,196 )  
         
Cash flows from financing activities:        
Revolving credit repayments, net   (80,674 )     (17,825 )  
Debt and capital lease repayments   (534 )       (541 )  
Payment of financing costs   (72 )       (2 )  
Issuance of common stock from stock-based payment arrangements   367         5,920    
Purchase of treasury stock         (105,916 )  
Tax impact of stock-based payment arrangements           469    
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock     (3,962 )     (6,827 )  
Net cash flows used in financing activities   (84,875 )     (124,722 )  
                 
Effect of exchange rate changes on cash   (2,263 )     (1,493 )  
Net change in cash and cash equivalents   32,827       (17,290 )  
Cash and cash equivalents, beginning of year   35,973       53,263    
         
Cash and cash equivalents, end of year $ 68,800     $ 35,973    

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
 
SEGMENT DATA
(In Thousands)
(unaudited)
 
    Three Months Ended December 31,   Year Ended December 31,
      2016       2015       2016       2015  
Revenues:                
Completion Services   $    46,312     $    53,812     $    163,060     $    308,077  
Drilling Services       8,578         10,894       22,594         67,782  
Well Site Services     54,890       64,706       185,654       375,859  
Offshore Products     115,044       169,768       508,790       724,118  
Total revenues   $     169,934     $     234,474     $   694,444     $     1,099,977  
                 
Operating income (loss):                
Completion Services (1,2)   $   (17,385 )   $   (17,788 )   $   (83,636 )   $   (26,280 )
Drilling Services (1)       (4,542 )       (6,140 )       (24,239 )       (17,866 )
Well Site Services       (21,927 )       (23,928 )       (107,875 )       (44,146 )
Offshore Products (1,2,3)       19,230       41,499       87,084       146,389  
Corporate       (13,694 )       (11,695 )       (48,492 )       (47,237 )
Total operating income (loss)                 $     (16,391 )   $     5,876     $     (69,283 )   $     55,006  
                 

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
 
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION – SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA (A)
(In Thousands)
(unaudited)
 
    Three Months Ended December 31,   Year Ended December 31,
      2016       2015       2016       2015  
Well Site Services:                
Completion Services:                
Operating loss   $  (17,385 )   $    (17,788 )   $  (83,636 )   $    (26,280 )
Depreciation and amortization expense       17,242         18,323       70,031         75,612  
Other income     409       238       1,027       1,286  
EBITDA     266       773       (12,578 )     50,618  
Severance and other downsizing charges     165       1,060       1,998       3,083  
Adjusted EBITDA   $   431     $   1,833     $   (10,580 )   $   53,701  
                 
                 
Drilling Services:                
Operating loss   $  (4,542 )   $    (6,140 )   $  (24,239 )   $    (17,866 )
Depreciation and amortization expense       5,313         6,521       23,366         26,889  
Other income (expense)     38       (1 )     39       52  
EBITDA     809       380       (834 )     9,075  
Severance and other downsizing charges     88             248        
Adjusted EBITDA   $   897     $   380     $   (586 )   $   9,075  
                 
                 
Total Well Site Services:                
Operating loss   $  (21,927 )   $    (23,928 )   $    (107,875 )   $    (44,146 )
Depreciation and amortization expense       22,555         24,844       93,397         102,501  
Other income     447       237       1,066       1,338  
Segment EBITDA     1,075       1,153       (13,412 )     59,693  
Severance and other downsizing charges     253       1,060       2,246       3,083  
Adjusted Segment EBITDA   $   1,328     $   2,213     $   (11,166 )   $    62,776  
                 
Offshore Products:                
Operating income   $  19,230     $    41,499     $    87,084     $    146,389  
Depreciation and amortization expense       6,228         9,362       24,205         27,416  
Other income (expense)     (76 )     (12 )     (233 )     108  
Segment EBITDA     25,382       50,849       111,056       173,913  
Severance and other downsizing charges     317       814       2,952       3,328  
Adjusted Segment EBITDA    $   25,699     $     51,663     $   114,008     $   177,241  
                 
Corporate:                
Operating loss   $  (13,694 )   $    (11,695 )   $    (48,492 )   $    (47,237 )
Depreciation and amortization expense       271         309       1,118         1,340  
Other income     69             69        
EBITDA     (13,354 )     (11,386 )     (47,305 )     (45,897 )
Severance and other downsizing charges     (5 )                  
Adjusted EBITDA    $   (13,359 )   $   (11,386 )   $   (47,305 )   $   (45,897 )
                 

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
 
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In Thousands)
(unaudited)
 
    Three Months Ended December 31,   Year Ended December 31,
      2016       2015       2016       2015  
Net income (loss) from continuing operations   $   (10,627 )   $   1,115     $   (46,386 )   $   28,371  
Income tax provision (benefit)     (6,465 )     3,550       (26,939 )     22,197  
Depreciation and amortization expense     29,054       34,515       118,720       131,257  
Interest income      (78 )     (115 )     (399 )     (543 )
Interest expense      1,219       1,551       5,343       6,427  
Consolidated EBITDA (B)     13,103       40,616       50,339       187,709  
                 
Adjustments to Consolidated EBITDA (1,2):                
Severance and other downsizing charges     565       1,874       5,198       6,411  
Adjusted Consolidated EBITDA (B)   $   13,668     $   42,490     $   55,537     $   194,120  
                 

(1) Operating income (loss) and Consolidated EBITDA for the three and twelve months ended December 31, 2016 included severance and other downsizing charges of $0.2 million and $2.0 million, respectively, related to the completion services business, $0.1 million and $0.2 million, respectively, related to the drilling services business and $0.3 million and $3.0 million, respectively, related to the offshore products segment.

(2) Operating income (loss) and Consolidated EBITDA for the three and twelve months ended December 31, 2015 included severance and other downsizing charges of $1.1 million and $3.1 million, respectively, related to the completion services business and $0.8 million and $3.3 million, respectively, related to the offshore products segment.

(3) Operating income (loss) for the three and twelve months ended December 31, 2015 included a $3.4 million depreciation charge related to a leasehold restoration provision for one of our offshore products facilities in the U.K.

(A) The terms Segment EBITDA and Adjusted Segment EBITDA consist of operating income (loss) plus depreciation and amortization expense, and certain other items.  Segment EBITDA and Adjusted Segment EBITDA are not measures of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for operating income (loss) or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity.  Additionally, Segment EBITDA and Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies.  The Company has included Segment EBITDA and Adjusted Segment EBITDA as a supplemental disclosure because its management believes that Segment EBITDA and Adjusted Segment EBITDA provide useful information regarding its 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.  The Company uses Segment EBITDA and Adjusted Segment EBITDA to compare and to monitor the performance of its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan.  The tables above set forth reconciliations of Segment EBITDA and Adjusted Segment EBITDA to operating income (loss), which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.

(B) The terms Consolidated EBITDA and Adjusted Consolidated EBITDA consist of net income (loss) plus net interest expense, taxes, depreciation and amortization expense, and certain other items.  Consolidated EBITDA and Adjusted Consolidated EBITDA are not measures of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for net income (loss) from continuing operations or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity.  Additionally, Consolidated EBITDA and Adjusted Consolidated EBITDA may not be comparable to other similarly titled measures of other companies.  The Company has included Consolidated EBITDA and Adjusted Consolidated EBITDA as a supplemental disclosure because its management believes that Consolidated EBITDA and Adjusted Consolidated EBITDA provide useful information regarding its 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.  The Company uses Consolidated EBITDA and Adjusted Consolidated EBITDA to compare and to monitor the performance of the Company and its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan.  The table above sets forth a reconciliation of Consolidated EBITDA and Adjusted Consolidated EBITDA to net income (loss) from continuing operations, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
 
ADDITIONAL QUARTERLY SEGMENT AND OPERATING DATA
(unaudited)
 
    Three Months Ended December 31,  
Supplement operating data:     2016       2015    
  Offshore product backlog ($ in millions)   $    199.3     $    340.4    
           
  Completion services job tickets     3,899       6,354    
  Average revenue per ticket ($ in thousands)     11.9       8.5    
           
  Land drilling operating statistics:          
  Average rigs available     34       34    
  Utilization       18.2 %       22.1 %  
  Implied day rate ($ in thousands per day)   $     15.1     $     15.8    
  Implied daily cash margin ($ in thousands per day)     $      2.0     $     1.5    
           
CONTACT: Company Contact:      
Lloyd A. Hajdik
Oil States International, Inc.
Executive Vice President, Chief Financial Officer and Treasurer 
713-652-0582

Patricia Gil
Oil States International, Inc.
Investor Relations
713-470-4860