Can COP's Low-Cost Asset Portfolio Survive Oil Price Volatility?
However, ConocoPhillips' high-quality, low-cost and diversified upstream asset portfolio is capable of supporting its operations even during periods of low commodity prices. Notably, the energy firm's presence in the prolific shale basins of the United States, like the Permian Basin, Eagle Ford Basin and the Bakken Shale, with low production costs, should enable it to stay resilient during tough commodity price environments. The company highlights that its durable and resilient portfolio of assets has breakeven costs as low as $40 per barrel, both in the United States and internationally. This allows it to maintain stable performance and sustainable cash flows even when oil prices are low.
Furthermore, ConocoPhillips' all-stock acquisition of Marathon Oil in November 2024 expands its presence in the U.S. Lower 48 and adds significant high-quality, low-cost inventory, close to COP's existing operations in the Permian Basin and the Bakken Shale, thereby strengthening its upstream asset base that can support low-cost production for several years. These factors provide ConocoPhillips with a competitive advantage to navigate challenging commodity price environments.
High-Quality Inventories Give XOM and EOG a Competitive Edge
Exxon Mobil Corporation XOM and EOG Resources, Inc. EOG are two global energy firms that can thrive even during periods of low oil prices.
ExxonMobil's advantaged assets in the Permian Basin of the United States and Guyana, with low breakeven costs, should support its bottom-line profitability. The company mentioned on its recent earnings call that it plans to lower its break-even costs to $35 per barrel by 2027 and $30 per barrel by 2030. In other words, even if crude oil prices reduce significantly, XOM will be able to maintain its financial performance and generate profits.
EOG Resources is a leading independent exploration and production company, with operations focused on the prolific acres in the United States as well as several resource-rich international basins. EOG boasts a high-return, low-decline asset base and stands out among the low-cost producers in the United States. The company focuses on maintaining a resilient balance sheet and lowering production costs, which should enable it to withstand challenging commodity price environments.
COP's Price Performance, Valuation & Estimates
Shares of COP have plunged 10.8% over the past year compared with the 17.5% decline of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, COP trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 5.36X. This is below the broader industry average of 11.07X.
The Zacks Consensus Estimate for COP's 2025 earnings has been revised upward over the past seven days.
COP, XOM and EOG currently carry a Zacks Rank #3 (Hold), each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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25 minutes ago
- Globe and Mail
Cheniere Reports Second Quarter 2025 Results and Updates Full Year 2025 Financial Guidance
Cheniere Energy, Inc. ('Cheniere') (NYSE: LNG) today announced its financial results for the second quarter 2025. SECOND QUARTER 2025 SUMMARY FINANCIAL RESULTS (in billions) Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Revenues $4.6 $10.1 Net Income 1 $1.6 $2.0 Consolidated Adjusted EBITDA 2 $1.4 $3.3 Distributable Cash Flow 2 $0.9 $2.2 2025 FULL YEAR FINANCIAL GUIDANCE (in billions) 2025 Previous 2025 Revised Consolidated Adjusted EBITDA 2 $6.5 - $7.0 $6.6 - $7.0 Distributable Cash Flow 2 $4.1 - $4.6 $4.4 - $4.8 RECENT HIGHLIGHTS Financial During the three and six months ended June 30, 2025, Cheniere generated revenues of approximately $4.6 billion and $10.1 billion, net income 1 of approximately $1.6 billion and $2.0 billion, Consolidated Adjusted EBITDA 2 of approximately $1.4 billion and $3.3 billion, and Distributable Cash Flow 2 of approximately $0.9 billion and $2.2 billion, respectively. Tightening full year 2025 Consolidated Adjusted EBITDA 2 guidance from $6.5 billion - $7.0 billion to $6.6 billion - $7.0 billion and raising and tightening full year 2025 Distributable Cash Flow 2 guidance from $4.1 billion - $4.6 billion to $4.4 billion - $4.8 billion. Capital Allocation Pursuant to Cheniere's comprehensive capital allocation plan, Cheniere deployed approximately $1.3 billion and $2.6 billion towards accretive growth, balance sheet management and shareholder returns in the three and six months ended June 30, 2025, respectively. During the three and six months ended June 30, 2025, Cheniere repurchased an aggregate of approximately 1.4 million and 3.0 million shares of common stock for approximately $306 million and $656 million, respectively, paid quarterly dividends of $0.500 and $1.000 per share of common stock, totaling approximately $111 million and $223 million, respectively, and in the six months ended June 30, 2025, Cheniere repaid $300 million of consolidated long-term indebtedness. In June 2025, Cheniere announced updates to its long-term company outlook, including an over 10% increase to its run-rate liquefied natural gas ('LNG') production forecast, inclusive of the CCL Midscale Trains 8 & 9 Project (defined below) and debottlenecking. Cheniere also increased and extended its committed capital allocation targets, designed to maintain investment grade credit metrics through cycles, further return capital to shareholders, and continue to invest in accretive growth, as the Company expects to generate over $25 billion of available cash 3 through 2030 to reach over $25 per share of run-rate Distributable Cash Flow 2. In June 2025, Cheniere declared a dividend with respect to the second quarter 2025 of $0.500 per share of common stock, which is payable on August 18, 2025. In June 2025, Cheniere announced, subject to declaration by its Board of Directors, an increase to its quarterly dividend by over 10% from $2.00 to $2.22 per common share annualized, commencing with the third quarter of 2025. Growth In June 2025, Cheniere made a positive Final Investment Decision ('FID') with respect to the CCL Midscale Trains 8 & 9 Project and issued full notice to proceed to Bechtel Energy, Inc. ('Bechtel') effective June 18, 2025. In June 2025, LNG was produced for the first time from the second train ('Train 2') of the CCL Stage 3 Project (defined below), and on August 6, 2025, substantial completion of Train 2 was achieved. In June 2025, certain subsidiaries of Cheniere Energy Partners, L.P. ('Cheniere Partners') (NYSE: CQP) updated the SPL Expansion Project's (defined below) application with the Federal Energy Regulatory Commission ('FERC') to reflect a two-phased project, inclusive of three liquefaction trains and supporting infrastructure, maintaining an expected total peak production capacity of up to approximately 20 million tonnes per annum ('mtpa') of LNG, inclusive of estimated debottlenecking opportunities. In July 2025, certain subsidiaries of Cheniere initiated the pre-filing review process with the FERC under the National Environmental Policy Act ('NEPA') for the CCL Stage 4 Expansion Project (defined below). Commercial In May 2025, Cheniere Marketing, LLC ('Cheniere Marketing') entered into a long-term Integrated Production Marketing ('IPM') gas supply agreement with a subsidiary of Canadian Natural Resources Limited to purchase 140,000 MMBtu per day of natural gas at a price based on the Platts Japan Korea Marker ('JKM') less fixed LNG shipping costs and a fixed liquefaction fee for a term of 15 years, which is expected to commence in 2030. The LNG associated with this gas supply, approximately 0.85 mtpa, will be marketed by Cheniere Marketing. In August 2025, Cheniere Marketing entered into a long-term LNG sale and purchase agreement ('SPA') with JERA Co., Inc. ('JERA'), under which JERA has agreed to purchase approximately 1.0 mtpa of LNG from Cheniere Marketing on a free-on-board basis from 2029 through 2050. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee. CEO COMMENT 'The second quarter of 2025 marked another outstanding quarter for Cheniere, as our team demonstrated its ability to execute safely, reliably and strategically throughout our business, highlighted by the positive FID of the CCL Midscale Trains 8 & 9 Project and the successful completion of our large-scale planned maintenance turnaround at Sabine Pass,' said Jack Fusco, Cheniere's President and Chief Executive Officer. 'Our strong financial and operational results year-to-date, coupled with our constructive outlook and visibility for the remainder of the year, have enabled us to tighten our full year 2025 Consolidated Adjusted EBITDA and Distributable Cash Flow guidance ranges. For the remainder of the year, we are focused on growing our brownfield platform, bringing online new capacity at Corpus Christi ahead of schedule and on budget, and delivering results within our upwardly revised guidance ranges.' SUMMARY AND REVIEW OF FINANCIAL RESULTS (in millions, except LNG data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Change 2025 2024 % Change Revenues $ 4,641 $ 3,251 43 % $ 10,085 $ 7,504 34 % Net income 1 $ 1,626 $ 880 85 % $ 1,979 $ 1,382 43 % Consolidated Adjusted EBITDA 2 $ 1,416 $ 1,322 7 % $ 3,288 $ 3,095 6 % LNG exported: Number of cargoes 154 155 (1 )% 322 321 — % Volumes (TBtu) 550 553 (1 )% 1,159 1,155 — % LNG volumes loaded (TBtu) 550 552 — % 1,158 1,153 — % Net income 1 increased approximately $746 million and $597 million for the three and six months ended June 30, 2025, respectively, as compared to the corresponding 2024 periods. The increases were primarily attributable to approximately $873 million and $596 million of favorable variances related to changes in fair value of our derivative instruments, including the impact of derivative instruments related to our long-term Integrated Production Marketing ('IPM') agreements (before tax and non-controlling interests) for the three and six months ended June 30, 2025, respectively, as compared to the corresponding 2024 periods. The increases were partially offset by higher provisions for income tax during both periods. Consolidated Adjusted EBITDA 2 increased approximately $94 million and $193 million for the three and six months ended June 30, 2025, respectively, as compared to the corresponding 2024 periods. The increases were primarily due to higher total margins per MMBtu of LNG delivered during the 2025 periods as compared to the corresponding 2024 periods. The increases were partially offset by higher operating expenses related to planned maintenance activities at both the SPL Project (defined below) and CCL Project (defined below), as well as new capacity from the CCL Stage 3 Project, during the three months ended June 30, 2025, in addition to lower contributions from certain optimization activities related to our vessel charter portfolio during both periods. Share-based compensation expenses included in net income totaled $49 million and $105 million for the three and six months ended June 30, 2025, respectively, compared to $52 million and $92 million for the corresponding 2024 periods. Our financial results are reported on a consolidated basis. Our ownership interest in Cheniere Partners as of June 30, 2025 consisted of 100% ownership of the general partner and a 48.6% limited partner interest. BALANCE SHEET MANAGEMENT Capital Resources The table below provides a summary of our available liquidity (in millions) as of June 30, 2025: (1) $108 million of cash and cash equivalents was held by our consolidated variable interest entities ('VIEs'). (2) $40 million of restricted cash and cash equivalents was held by our consolidated VIEs. Recent Key Financial Transactions and Updates In July 2025, Cheniere Partners issued $1.0 billion aggregate principal amount of 5.550% Senior Notes due 2035, and the net proceeds, together with cash on hand, were used to redeem $1.0 billion of the aggregate principal amount of SPL's 5.875% Senior Secured Notes due 2026. In August 2025, the $1.25 billion Cheniere Revolving Credit Facility was amended and restated to extend its maturity into 2030, reduce the rate of interest and commitment fees applicable thereunder, and make certain other changes to its terms and conditions. During the six months ended June 30, 2025, SPL repaid the remaining $300 million in principal amount of its 5.625% Senior Secured Notes due 2025 with cash on hand. LIQUEFACTION PROJECTS OVERVIEW SPL Project Through Cheniere Partners, we operate liquefaction and export facilities with a total production capacity of over 30 mtpa of LNG at the Sabine Pass LNG terminal in Cameron Parish, Louisiana (the 'SPL Project'). SPL Expansion Project Through Cheniere Partners, we are developing an expansion adjacent to the SPL Project with an expected total peak production capacity of up to approximately 20 mtpa of LNG (the 'SPL Expansion Project'), inclusive of estimated debottlenecking opportunities. In February 2024, certain subsidiaries of Cheniere Partners submitted an application to the FERC for authorization to site, construct, and operate the SPL Expansion Project, as well as an application to the Department of Energy ('DOE') requesting authorization to export LNG to Free-Trade Agreement ('FTA') and non-FTA countries, both of which applications exclude debottlenecking. In October 2024, we received authorization from the DOE to export LNG to FTA countries. In June 2025, the SPL Expansion Project's FERC application was updated to reflect a two-phased project, inclusive of three liquefaction trains and supporting infrastructure, maintaining an expected total peak production capacity of up to approximately 20 mtpa of LNG, inclusive of estimated debottlenecking opportunities. CCL Project We operate liquefaction and export facilities with a total production capacity of over 18 mtpa of LNG at the Corpus Christi LNG terminal near Corpus Christi, Texas (the 'CCL Project'), inclusive of Trains 1 and 2 of the CCL Stage 3 Project. CCL Stage 3 Project We are constructing an expansion adjacent to the CCL Project consisting of seven midscale Trains with an expected total production capacity of over 10 mtpa of LNG (the 'CCL Stage 3 Project'), including approximately 3 mtpa in operation and over 7 mtpa under construction. Substantial Completion was achieved for the first train of the CCL Stage 3 Project in March 2025, and substantial completion of Train 2 was achieved in August 2025. CCL Stage 3 Project Progress as of June 30, 2025: CCL Stage 3 Project Project Status Under Construction / Commissioning Project Completion Percentage 86.7% (1) Expected Substantial Completion 2H 2025 - 2H 2026 (1) Engineering 98.9% complete, procurement 99.8% complete, subcontract work 91.6% complete and construction 64.9% complete. CCL Midscale Trains 8 & 9 Project We are constructing an expansion adjacent to the CCL Stage 3 Project consisting of two additional midscale Trains with an expected total production capacity of approximately 5 mtpa of LNG (the 'CCL Midscale Trains 8 & 9 Project'), inclusive of estimated debottlenecking opportunities. In June 2025, our Board of Directors made a positive FID with respect to the CCL Midscale Trains 8 & 9 Project and debottlenecking, and full notice to proceed was issued to Bechtel effective June 18, 2025. CCL Stage 4 Expansion Project We are developing an expansion adjacent to the CCL Project with an expected total peak production capacity of up to approximately 24 mtpa of LNG, inclusive of estimated debottlenecking opportunities (the 'CCL Stage 4 Expansion Project'). In July 2025, certain of our subsidiaries initiated the pre-filing review process with the FERC with respect to the CCL Stage 4 Expansion Project. INVESTOR CONFERENCE CALL AND WEBCAST We will host a conference call to discuss our financial and operating results for the second quarter 2025 on Thursday, August 7, 2025, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at Following the call, an archived recording will be made available on our website. ________________ 1 Net income as used herein refers to Net income attributable to Cheniere Energy, Inc. on our Consolidated Statements of Operations. 2 Non-GAAP financial measure. See 'Reconciliation of Non-GAAP Measures' for further details. 3 Forecast as of June 24, 2025 and subject to change based upon, among other things, changes in commodity prices over time. About Cheniere Cheniere Energy, Inc. is the leading producer and exporter of LNG in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with a total combined production capacity of approximately 49 mtpa of LNG in operation and an additional over 12 mtpa of expected production capacity under construction, inclusive of estimated debottlenecking opportunities. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, Dubai and Washington, D.C. For additional information, please refer to the Cheniere website at and Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission. Use of Non-GAAP Financial Measures In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Consolidated Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures that we use to facilitate comparisons of operating performance across periods. These non-GAAP measures should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated. Non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or in lieu of an analysis of our results as reported under GAAP and should be evaluated only on a supplementary basis. Forward-Looking Statements This press release contains certain statements that may include 'forward-looking statements' within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are 'forward-looking statements.' Included among 'forward-looking statements' are, among other things, (i) statements regarding Cheniere's financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding regulatory authorization and approval expectations, (iii) statements expressing beliefs and expectations regarding the development of Cheniere's LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third-parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, (vii) statements relating to Cheniere's capital deployment, including intent, ability, extent, and timing of capital expenditures, debt repayment, dividends, share repurchases and execution on the capital allocation plan, and (viii) statements relating to our goals, commitments and strategies in relation to environmental matters. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere's periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements. (Financial Tables and Supplementary Information Follow) LNG VOLUME SUMMARY As of August 1, 2025, approximately 4,220 cumulative LNG cargoes totaling approximately 290 million tonnes of LNG have been produced, loaded and exported from our liquefaction projects. During the three and six months ended June 30, 2025, we exported 550 and 1,159 TBtu, respectively, of LNG from our liquefaction projects. 32 TBtu of LNG exported from our liquefaction projects and sold on a delivered basis was in transit as of June 30, 2025, none of which was related to commissioning activities. The following table summarizes the volumes of LNG that were loaded from our liquefaction projects and for which the financial impact was recognized on our Consolidated Financial Statements during the three and six months ended June 30, 2025: Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Volumes loaded during the current period 550 — 550 1,152 6 1,158 Volumes loaded during the prior period but recognized during the current period 32 1 33 39 — 39 Less: volumes loaded during the current period and in transit at the end of the period (32 ) — (32 ) (32 ) — (32 ) Total volumes recognized in the current period 550 1 551 1,159 6 1,165 In addition, during the three and six months ended June 30, 2025, we recognized 8 and 15 TBtu, respectively, of LNG on our Consolidated Financial Statements related to LNG cargoes sourced from third-parties. Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Revenues LNG revenues $ 4,515 $ 3,042 $ 9,820 $ 7,079 Regasification revenues 34 34 68 68 Other revenues 92 175 197 357 Total revenues 4,641 3,251 10,085 7,504 Operating costs and expenses Cost of sales (excluding operating and maintenance expense and depreciation, amortization and accretion expense shown separately below) (2) 1,117 784 4,688 3,020 Operating and maintenance expense 559 463 1,032 914 Selling, general and administrative expense 99 99 215 200 Depreciation, amortization and accretion expense 329 304 641 606 Other operating costs and expenses 7 13 18 22 Total operating costs and expenses 2,111 1,663 6,594 4,762 Income from operations 2,530 1,588 3,491 2,742 Other income (expense) Interest expense, net of capitalized interest (237 ) (257 ) (466 ) (523 ) Loss on modification or extinguishment of debt — (9 ) — (9 ) Interest and dividend income 31 47 68 108 Other income (expense), net (1 ) 3 19 2 Total other expense (207 ) (216 ) (379 ) (422 ) Income before income taxes and non-controlling interests 2,323 1,372 3,112 2,320 Less: income tax provision 426 210 547 319 Net income 1,897 1,162 2,565 2,001 Less: net income attributable to non-controlling interests 271 282 586 619 Net income attributable to Cheniere $ 1,626 $ 880 $ 1,979 $ 1,382 Net income per share attributable to common stockholders—basic (1) $ 7.32 $ 3.85 $ 8.87 $ 5.97 Net income per share attributable to common stockholders—diluted (1) $ 7.30 $ 3.84 $ 8.85 $ 5.96 Weighted average number of common shares outstanding—basic 221.8 228.4 222.6 231.3 Weighted average number of common shares outstanding—diluted 222.3 228.9 223.2 231.9 ________________ (1) Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission. (2) Cost of sales includes approximately $1.4 billion and $0.7 billion of gains from changes in the fair value of commodity derivatives prior to contractual delivery or termination during the three and six months ended June 30, 2025, respectively, as compared to $0.7 billion and $0.4 billion of gains in the corresponding 2024 periods, respectively. June 30, December 31, 2025 2024 ASSETS Current assets Cash and cash equivalents $ 1,648 $ 2,638 Restricted cash and cash equivalents 369 552 Trade and other receivables, net of current expected credit losses 761 727 Inventory 482 501 Current derivative assets 147 155 Margin deposits 150 128 Other current assets, net 147 100 Total current assets 3,704 4,801 Property, plant and equipment, net of accumulated depreciation 34,829 33,552 Operating lease assets 2,776 2,684 Derivative assets 2,236 1,903 Deferred tax assets 18 19 Other non-current assets, net 1,015 899 Total assets $ 44,578 $ 43,858 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 161 $ 171 Accrued liabilities 1,492 2,179 Current debt, net of unamortized discount and debt issuance costs 609 351 Deferred revenue 145 163 Current operating lease liabilities 562 592 Current derivative liabilities 706 902 Other current liabilities 100 83 Total current liabilities 3,775 4,441 Long-term debt, net of unamortized discount and debt issuance costs 22,012 22,554 Operating lease liabilities 2,216 2,090 Derivative liabilities 1,621 1,865 Deferred tax liabilities 2,307 1,856 Other non-current liabilities 1,338 992 Total liabilities 33,269 33,798 Redeemable non-controlling interest 58 7 Stockholders' equity Preferred stock: $0.0001 par value, 5.0 million shares authorized, none issued — — Common stock: $0.003 par value, 480.0 million shares authorized; 279.2 million shares and 278.7 million shares issued at June 30, 2025 and December 31, 2024, respectively 1 1 Treasury stock: 57.7 million shares and 54.7 million shares at June 30, 2025 and December 31, 2024, respectively, at cost (6,798 ) (6,136 ) Additional paid-in-capital 4,483 4,452 Retained earnings 9,021 7,382 Total Cheniere stockholders' equity 6,707 5,699 Non-controlling interests 4,544 4,354 Total stockholders' equity 11,251 10,053 Total liabilities, redeemable non-controlling interest and stockholders' equity $ 44,578 $ 43,858 ________________ (1) Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission. (2) Amounts presented include balances held by our consolidated VIEs, substantially all of which are related to Cheniere Partners. As of June 30, 2025, total assets and liabilities of our VIEs, which are included in our Consolidated Balance Sheets, were $16.7 billion and $17.2 billion, respectively, including $108 million of cash and cash equivalents and $40 million of restricted cash and cash equivalents. Reconciliation of Non-GAAP Measures Regulation G Reconciliations Consolidated Adjusted EBITDA The following table reconciles our Consolidated Adjusted EBITDA to U.S. GAAP results for the three and six months ended June 30, 2025 and 2024 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income attributable to Cheniere $ 1,626 $ 880 $ 1,979 $ 1,382 Net income attributable to non-controlling interests 271 282 586 619 Income tax provision 426 210 547 319 Interest expense, net of capitalized interest 237 257 466 523 Loss on modification or extinguishment of debt — 9 — 9 Interest and dividend income (31 ) (47 ) (68 ) (108 ) Other expense (income), net 1 (3 ) (19 ) (2 ) Income from operations $ 2,530 $ 1,588 $ 3,491 $ 2,742 Adjustments to reconcile income from operations to Consolidated Adjusted EBITDA: Depreciation, amortization and accretion expense 329 304 641 606 Gain from changes in fair value of commodity and foreign exchange ('FX') derivatives, net (1) (1,479 ) (606 ) (917 ) (321 ) Total non-cash compensation expense 35 33 72 65 Other operating costs and expenses 1 3 1 3 Consolidated Adjusted EBITDA $ 1,416 $ 1,322 $ 3,288 $ 3,095 ________________ (1) Change in fair value of commodity and FX derivatives prior to contractual delivery or termination Consolidated Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our Consolidated Financial Statements to assess the financial performance of our assets without regard to financing methods, capital structures, or historical cost basis. Consolidated Adjusted EBITDA is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies. We believe Consolidated Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management's evaluation of financial and operating performance. Consolidated Adjusted EBITDA is calculated by taking net income attributable to Cheniere before net income attributable to non-controlling interests, interest expense, net of capitalized interest, taxes, depreciation, amortization and accretion expense, and adjusting for the effects of certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense, gain or loss on disposal of assets, changes in the fair value of our commodity and FX derivatives prior to contractual delivery or termination, and non-cash compensation expense. The change in fair value of commodity and FX derivatives is considered in determining Consolidated Adjusted EBITDA given that the timing of recognizing gains and losses on these derivative contracts differs from the recognition of the related item economically hedged. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management's own evaluation of performance. Consolidated Adjusted EBITDA and Distributable Cash Flow The following table reconciles our actual Consolidated Adjusted EBITDA and Distributable Cash Flow to Net income attributable to Cheniere for the three and six months ended June 30, 2025 and forecast amounts for full year 2025 (in billions): 2025 2025 2025 Net income attributable to Cheniere $ 1.63 $ 1.98 $ 3.1 - $ 3.4 Net income attributable to non-controlling interests 0.27 0.59 1.2 - 1.2 Income tax provision 0.43 0.55 0.9 - 1.0 Interest expense, net of capitalized interest 0.24 0.47 0.9 - 0.9 Depreciation, amortization and accretion expense 0.33 0.64 1.3 - 1.3 Other income, financing costs, and certain non-cash operating expenses (1.47 ) (0.93 ) (0.8 ) - (0.7 ) Consolidated Adjusted EBITDA $ 1.42 $ 3.29 $ 6.6 - $ 7.0 Interest expense, net of interest income, capitalized interest and amortization (0.19 ) (0.35 ) (0.8 ) - (0.8 ) Maintenance capital expenditures (0.06 ) (0.09 ) (0.2 ) - (0.2 ) Income tax (excludes deferred taxes) (1) (0.02 ) (0.11 ) (0.1 ) - 0.0 Other income (expense) (0.02 ) (0.06 ) (0.1 ) - (0.1 ) Consolidated Distributable Cash Flow $ 1.13 $ 2.68 $ 5.4 - $ 6.0 Distributable Cash Flow attributable to non-controlling interests (0.20 ) (0.48 ) (1.0 ) - (1.2 ) Cheniere Distributable Cash Flow $ 0.92 $ 2.19 $ 4.4 - $ 4.8 ________________ Note: Totals may not sum due to rounding. (1) Our cash tax payments are subject to commodity and market volatility, regulatory changes and other factors which could significantly impact both the timing and amount of our future cash tax payments. Our 2025 full year Distributable Cash Flow guidance reflects current tax law and does not consider any prospective changes to local, domestic or international tax laws and regulations, or their interpretation and application. Our actual results could differ materially from our guidance due to such risks, uncertainties and other factors, including those set forth in Risk Factors or as disclosed under Operating Cash Flows in Sources and Uses of Cash within Liquidity and Capital Resources of the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025 and Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission. Distributable Cash Flow is defined as cash generated from the operations of Cheniere and its subsidiaries and adjusted for non-controlling interests. The Distributable Cash Flow of Cheniere's subsidiaries is calculated by taking the subsidiaries' EBITDA less interest expense, net of capitalized interest, taxes, maintenance capital expenditures and other non-operating income or expense items, and adjusting for the effect of certain non-cash items and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, amortization of debt issue costs, premiums or discounts, impairment of equity method investment and deferred taxes. Cheniere's Distributable Cash Flow includes 100% of the Distributable Cash Flow of Cheniere's wholly-owned subsidiaries. For subsidiaries with non-controlling investors, our share of Distributable Cash Flow is calculated as the Distributable Cash Flow of the subsidiary reduced by the economic interest of the non-controlling investors as if 100% of the Distributable Cash Flow were distributed in order to reflect our ownership interests and our incentive distribution rights, if applicable. The Distributable Cash Flow attributable to non-controlling interests is calculated in the same method as Distributions to non-controlling interests as presented on our Consolidated Statements of Stockholders' Equity (Deficit) in our Forms 10-Q and Forms 10-K filed with the Securities and Exchange Commission. This amount may differ from the actual distributions paid to non-controlling investors by the subsidiary for a particular period. We believe Distributable Cash Flow is a useful performance measure for management, investors and other users of our financial information to evaluate our performance and to measure and estimate the ability of our assets to generate cash earnings after servicing our debt, paying cash taxes and expending sustaining capital, that could be considered for deployment by our Board of Directors pursuant to our capital allocation plan, such as by way of common stock dividends, stock repurchases, retirement of debt, or expansion capital expenditures 1. Distributable Cash Flow is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.
National Post
25 minutes ago
- National Post
Cybin Receives European Approval for EMBRACE, a Multinational Phase 3 Study Evaluating CYB003 for the Adjunctive Treatment of Major Depressive Disorder
Article content Article content Article content the United States, Europe, the United Kingdom, and Australia – Article content – European CTA approval to initiate the EMBRACE study in Ireland, Poland, and Greece has been received – Article content – Recently received Medicines and Healthcare products Regulatory Agency ('MHRA') approval to commence EMBRACE in the United Kingdom – Article content – Data from completed Phase 2 MDD study showed that 71% of participants were in remission and 100% of participants responded to treatment at 12 months after just two 16 mg doses of CYB003 – Article content TORONTO — Cybin Inc. (NYSE American:CYBN) (Cboe CA:CYBN) (' Cybin ' or the ' Company '), a clinical-stage breakthrough neuropsychiatry company committed to advancing mental healthcare by developing new and innovative next-generation treatment options, today announced that its Clinical Trial Application ('CTA') has been approved by the Irish Medicines Board, acting as the reference Member state, to initiate the EMBRACE ™ study in Ireland, Poland, and Greece. EMBRACE is the second pivotal study in PARADIGM ®, the Company's Phase 3 multinational program evaluating CYB003, a proprietary deuterated psilocin analog. The Company also recently announced approval from the Medical and Healthcare products Regulatory Agency ('MHRA') to commence EMBRACE in the United Kingdom. Article content CYB003 has received Breakthrough Therapy Designation from the U.S. Food and Drug Administration ('FDA') for the adjunctive treatment of Major Depressive Disorder ('MDD'). Article content 'Securing European approval to commence the EMBRACE component of PARADIGM – especially on the heels of the recent UK MHRA approval – validates the quality of our Phase 3 clinical development program and reaffirms the strength of our results to date,' said Doug Drysdale, Chief Executive Officer of Cybin. 'We appreciate the trust placed in us by the European Regulatory Agencies and are eager to leverage Europe's well-established clinical trial infrastructure. The EMBRACE study aims to enroll 330 participants who live with moderate to severe MDD and whose symptoms are inadequately controlled with antidepressant treatments. With this additional approval, which enables us to enroll participants in Ireland, Poland, and Greece, we are pleased to expand the reach for this critical research. The rise in mental health disorders knows no borders, and we are committed to an international research base to develop new and more effective treatments for MDD patients everywhere.' Article content Study Design: Article content EMBRACE will enroll 330 patients with moderate to severe MDD (MADRS≥24) who are on a stable dose of antidepressant medication but are responding inadequately. Study participants will be randomized 1:1:1 to receive either CYB003 16 mg, CYB003 8 mg, or inactive placebo. Each study arm will evaluate two doses, administered three weeks apart. The primary endpoint will be change in depressive symptoms as measured by change in MADRS from baseline at six weeks after the first dose. Article content The Phase 3 PARADIGM™ program is expected to enroll a total of 550 participants across three studies: two 12-week randomized, double-blind, placebo-controlled studies, APPROACH™ and EMBRACE, and a long-term extension study, EXTEND. The first Phase 3 trial, APPROACH, is currently dosing and is taking place at approximately 45 clinical sites across the U.S, and patient rollover into EXTEND is ongoing. The second Phase 3 trial, EMBRACE, is expected to enroll participants at approximately 60 clinical sites across the U.S., Europe, and Australia. Participants from APPROACH and EMBRACE will have the opportunity to roll over into EXTEND after completing the 12-week, double-blind, placebo-controlled treatment periods. Article content About Cybin Article content Cybin is a late-stage breakthrough neuropsychiatry company committed to revolutionizing mental healthcare by developing new and innovative next-generation treatment options to address the large unmet need for people who suffer from mental health conditions. Article content With promising proof-of-concept data, Cybin is working to change the mental health treatment landscape through the introduction of intermittent treatments that provide long lasting results. The Company is currently developing CYB003, a proprietary deuterated psilocin analog, in Phase 3 studies for the adjunctive treatment of major depressive disorder and CYB004, a proprietary deuterated N, N-dimethyltryptamine molecule in a Phase 2 study for generalized anxiety disorder. The Company also has a research pipeline of investigational, 5-HT-receptor focused compounds. Article content Founded in 2019, Cybin is operational in Canada, the United States, the United Kingdom, the Netherlands and Ireland. For Company updates and to learn more about Cybin, visit or follow the team on X, LinkedIn, YouTube and Instagram. Article content Cautionary Notes and Forward-Looking Statements Article content Certain statements in this news release relating to the Company are forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, 'forward-looking statements') and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as 'may', 'should', 'could', 'potential', 'possible', 'intend', 'estimate', 'plan', 'anticipate', 'expect', 'believe' or 'continue', or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the Company's plans to enroll participants and add additional clinical sites for the PARADIGM program; the Company's plan to enroll 330 participants at 60 clinical sites across the United States, Europe, United Kingdom and Australia for the EMBRACE study; and the Company's plans to engineer proprietary drug discovery platforms, innovative drug delivery systems, novel formulation approaches and treatment regimens for mental health conditions. APPROACH and EMBRACE are registered trademarks of Cybin IRL Limited, a subsidiary of Cybin. Article content These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the psychedelics market; the ability of the Company to successfully achieve its business objectives; plans for growth; political, social and environmental uncertainties; employee relations; the presence of laws and regulations that may impose restrictions in the markets where the Company operates; implications of disease outbreaks on the Company's operations; and the risk factors set out in each of the Company's management's discussion and analysis for the year ended March 31, 2025 and the Company's annual information form for the year ended March 31, 2025, which are available under the Company's profile on SEDAR+ at and with the U.S. Securities and Exchange Commission on EDGAR at Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law. Article content Cybin makes no medical, treatment or health benefit claims about Cybin's proposed products. The U.S. Food and Drug Administration, Health Canada or other similar regulatory authorities have not evaluated claims regarding psilocin, psychedelic tryptamine, tryptamine derivatives or other psychedelic compounds. The efficacy of such products has not been confirmed by approved research. There is no assurance that the use of psilocin, psychedelic tryptamine, tryptamine derivatives or other psychedelic compounds can diagnose, treat, cure or prevent any disease or condition. Rigorous scientific research and clinical trials are needed. If Cybin cannot obtain the approvals or research necessary to commercialize its business, it may have a material adverse effect on Cybin's performance and operations. Article content Article content Article content Article content Contacts Article content Investor & Media: Article content Article content Gabriel Fahel Article content Article content Chief Legal Officer Article content Article content Cybin Inc. Article content Article content Article content Article content
Globe and Mail
an hour ago
- Globe and Mail
Hut 8 Reports Second Quarter 2025 Results
Earnings Release Highlights Revenue of $41.3 million, net income of $137.5 million, and Adjusted EBITDA of $221.2 million. Total energy capacity under management of 1,020 megawatts ('MW') as of June 30, 2025. ~10,800 MW development pipeline with ~3,100 MW of capacity under exclusivity 1 as of June 30, 2025. Strategic Bitcoin reserve of 10,667 Bitcoin with a market value of $1.1 billion as of June 30, 2025. MIAMI, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Hut 8 Corp. (Nasdaq | TSX: HUT) ('Hut 8' or the 'Company'), an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive use cases such as Bitcoin mining and high-performance computing, today announced its financial results for the second quarter of 2025. 'In the second quarter, we delivered strong revenue and margin performance while advancing a fundamental shift in our asset commercialization profile,' said Asher Genoot, CEO of Hut 8. 'Strategic wins across our Power and Digital Infrastructure segments increased the share of energy capacity under management commercialized under executed agreements with terms of one year or longer to nearly 90% at quarter-end, up from less than 30% a year ago, driving a meaningful shift from merchant exposure to long-term, contracted fees.' 'These milestones build on the restructuring of our mining business with the launch of American Bitcoin. In addition to completing an oversubscribed private placement and advancing toward a Nasdaq listing, American Bitcoin is now a dedicated anchor tenant for our Power and Digital Infrastructure segments. More broadly, this shift reflects the growing depth of our institutional partnerships, with marquee counterparties such as BITMAIN, Macquarie, Coinbase, and Anchorage each playing a central role in our execution this quarter.' 'As we work to commercialize AI data center opportunities, we continue to apply the power-first, innovation-driven approach that has long defined our strategy and enabled us to build such partnerships. Initially energized during the quarter, Vega is a clear expression of that strategy: designed in-house and increasingly viewed by prospective partners as a prototype for next-generation AI infrastructure. We believe this level of innovation and execution, grounded in first principles, speed, and capital discipline, not only differentiates us but positions us to be a category-defining leader as the sector continues to evolve.' Second Quarter 2025 Highlights Power Generated $5.5 million in second quarter revenue from Power Generation and Managed Services. As American Bitcoin Corp. ('American Bitcoin') is a consolidated subsidiary, all revenue generated through its Managed Services agreement with Hut 8 are eliminated in consolidation. ~10,800 MW development pipeline with ~3,100 MW of capacity under exclusivity 1 as of June 30, 2025. Secured five-year capacity contracts with the Ontario Independent Electricity System Operator ('IESO') for 310 MW of Power Generation assets owned and operated by Far North Power Corp. ('Far North'), an entity formed by Hut 8 and Macquarie Equipment Finance Ltd. ('Macquarie'), a subsidiary of Macquarie Group Limited, a global financial services group. The contracts will commence on May 1, 2026. Commenced Managed Services of 130+ MW of capacity under management for American Bitcoin. Advanced AI data center development opportunities comprising 430 MW of total capacity, including River Bend, a 592-acre campus in Louisiana where sitework continues. Digital Infrastructure Generated $1.5 million in second quarter revenue from ASIC Colocation and CPU Colocation services. As American Bitcoin is a consolidated subsidiary, all revenue generated through its ASIC Colocation agreement with Hut 8 are eliminated in consolidation. Completed the initial energization of Vega at quarter-end. The 205 MW facility features a new Tier I data center form factor that narrows the gap between legacy air-cooled ASIC infrastructure and liquid-cooled GPU infrastructure with a proprietary, rack-based, direct-to-chip liquid cooling system designed in-house by Hut 8. Commercialized Vega, where upon full ramp we expect to provide up to 205 megawatts of ASIC Colocation capacity to BITMAIN, and through the execution of our purchase option, American Bitcoin. Commenced ASIC Colocation services with American Bitcoin for 130+ MW of capacity. Compute Generated $34.3 million in second quarter revenue from Bitcoin Mining, GPU-as-a-Service, and Data Center Cloud operations. Announced a go-public transaction for American Bitcoin pursuant to which Gryphon Digital Mining, Inc. (Nasdaq: GRYP) will acquire American Bitcoin in a stock-for-stock merger transaction. Upon closing, the combined company is expected to operate under the American Bitcoin brand and trade on Nasdaq under the ticker symbol 'ABTC.' Following quarter-end, American Bitcoin's registration statement on Form S-4 was declared effective. Completed an oversubscribed private placement for American Bitcoin, generating aggregate gross proceeds in cash and Bitcoin of approximately $220 million. Capital Strategy and Balance Sheet Expanded strategic Bitcoin reserve to 10,667 Bitcoin held in reserve with a market value of $1.1 billion as of June 30, 2025. Amended the Company's Bitcoin-backed credit facility with Coinbase, expanding the facility from $65 million to up to $130 million, extending the maturity date to June 16, 2026, and transitioning from a floating-rate structure to a fixed interest rate of 9.0%, compared to a stated interest rate ranging from 10.5% to 11.5% between the quarter ended December 31, 2023 and the quarter ended March 31, 2025. Capacity under exclusivity represents sites where Hut 8 has secured a clear path to ownership through either: (i) an exclusivity agreement that prevents the sale of designated land and power capacity to another party or (ii) a tendered interconnection agreement, confirming a viable path to securing power and infrastructure for deployment. Key Performance Indicators Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Energy capacity under management (1) 1,020 MW 1,117 MW 1,020 MW 1,117 MW Energy cost per MWh $ 39.82 $ 31.71 $ 44.39 $ 35.40 Number of Bitcoin in strategic reserve (2) 10,667 9,102 10,667 9,102 Energy capacity under management includes all Power assets: Power Generation, Managed Services, ASIC Colocation, CPU Colocation, Bitcoin Mining, Data Center Cloud, and non-operational sites. Number of Bitcoin in strategic reserve includes Bitcoin held in custody, pledged as collateral, or pledged for a miner purchase under an agreement with BITMAIN. Select Second Quarter 2025 Financial Results Revenue for the three months ended June 30, 2025 was $41.3 million compared to $35.2 million in the prior year period, and consisted of $5.5 million in Power revenue, $1.5 million in Digital Infrastructure revenue, and $34.3 million in Compute revenue, and nil in Other revenue. Net income (loss) for the three months ended June 30, 2025 was $137.5 million compared to a loss of ($72.2) million for the prior year period. This included gains on digital assets of $217.6 million and losses on digital assets of $71.8 million for the three months ended June 30, 2025 and 2024, respectively. Adjusted EBITDA for the three months ended June 30, 2025 was $221.2 million compared to ($57.5) million for the prior year period. A reconciliation of Adjusted EBITDA to the most comparable GAAP measure, net income (loss), and an explanation of this measure has been provided in the table included below in this press release. All financial results are reported in U.S. dollars. Conference Call The Hut 8 Corp. Second Quarter 2025 Conference Call will commence today, Thursday, August 7, 2025, at 8:30 a.m. ET. Investors can join the live webcast here. Supplemental Materials and Upcoming Communications The Company expects to make available on its website materials designed to accompany the discussion of its results, along with certain supplemental financial information and other data. For important news and information regarding the Company, including investor presentations and timing of future investor conferences, visit the Investor Relations section of the Company's website, and its social media accounts, including on X and LinkedIn. The Company uses its website and social media accounts as primary channels for disclosing key information to its investors, some of which may contain material and previously non-public information. Analyst Coverage A full list of Hut 8 Corp. analyst coverage can be found at About Hut 8 Hut 8 Corp. is an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive use cases such as Bitcoin mining and high-potential computing. We take a power-first, innovation-driven approach to developing, commercializing, and operating the critical infrastructure that underpins the breakthrough technologies of today and tomorrow. Our platform spans 1,020 megawatts of energy capacity under management across 15 sites in the United States and Canada: five ASIC Colocation and Managed Services sites in Alberta, New York, and Texas, five high performance computing data centers in British Columbia and Ontario, four power generation assets in Ontario, and one non-operational site in Alberta. For more information, visit and follow us on X at @Hut8Corp. Cautionary Note Regarding Forward–Looking Information This press release includes 'forward-looking information' and 'forward-looking statements' within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, 'forward-looking information'). All information, other than statements of historical facts, included in this press release that address activities, events, or developments that Hut 8 expects or anticipates will or may occur in the future, including statements relating to scaling the Company's platform, commercializing and advancing the Company's data center opportunities, commencing the Company's contracts with IESO, unlocking the Company's near-term growth potential, the commercialization of the Company's Vega site through its hosting arrangement with BITMAIN and (following the execution of the Company's miner purchase option) American Bitcoin, closing the merger of American Bitcoin and Gryphon and completing the combined company's Nasdaq listing, , and the Company's future business strategy, competitive strengths, expansion, and growth of the business and operations more generally, and other such matters is forward-looking information. Forward-looking information is often identified by the words 'may', 'would', 'could', 'should', 'will', 'intend', 'plan', 'anticipate', 'allow', 'believe', 'estimate', 'expect', 'predict', 'can', 'might', 'potential', 'predict', 'is designed to', 'likely,' or similar expressions. Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates, and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, failure of critical systems; geopolitical, social, economic, and other events and circumstances; competition from current and future competitors; risks related to power requirements; cybersecurity threats and breaches; hazards and operational risks; changes in leasing arrangements; Internet-related disruptions; dependence on key personnel; having a limited operating history; attracting and retaining customers; entering into new offerings or lines of business; price fluctuations and rapidly changing technologies; construction of new data centers, data center expansions, or data center redevelopment; predicting facility requirements; strategic alliances or joint ventures; operating and expanding internationally; failing to grow hashrate; purchasing miners; relying on third-party mining pool service providers; uncertainty in the development and acceptance of the Bitcoin network; Bitcoin halving events; competition from other methods of investing in Bitcoin; concentration of Bitcoin holdings; hedging transactions; potential liquidity constraints; legal, regulatory, governmental, and technological uncertainties; physical risks related to climate change; involvement in legal proceedings; trading volatility; and other risks described from time to time in Company's filings with the U.S. Securities and Exchange Commission. In particular, see the Company's recent and upcoming annual and quarterly reports and other continuous disclosure documents, which are available under the Company's EDGAR profile at and SEDAR+ profile at Adjusted EBITDA In addition to our results determined in accordance with GAAP, we rely on Adjusted EBITDA to evaluate our business, measure our performance, and make strategic decisions. Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss), adjusted for impacts of interest expense, income tax provision or benefit, depreciation and amortization, our share of unconsolidated joint venture depreciation and amortization, foreign exchange gain or loss, gain or loss on sale of property and equipment, gain or loss on derivatives, gain or loss on other financial liability, the removal of non-recurring transactions, loss from discontinued operations, (income) loss attributable to non-controlling interests, and stock-based compensation expense in the period presented. You are encouraged to evaluate each of these adjustments and the reasons our Board and management team consider them appropriate for supplemental analysis. The Company's board of directors and management team use Adjusted EBITDA to assess its financial performance because it allows them to compare operating performance on a consistent basis across periods by removing the effects of capital structure (such as varying levels of interest expense and income), asset base (such as depreciation and amortization), and other items (such as non-recurring transactions mentioned above) that impact the comparability of financial results from period to period. Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. In evaluating Adjusted EBITDA, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in such presentation. The Company's presentation of Adjusted EBITDA should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. There can be no assurance that the Company will not modify the presentation of Adjusted EBITDA in the future, and any such modification may be material. Adjusted EBITDA has important limitations as an analytical tool and you should not consider Adjusted EBITDA in isolation or as a substitute for analysis of results as reported under GAAP. Because Adjusted EBITDA may be defined differently by other companies in the industry, the Company's definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Revenue: Power $ 5,492 $ 10,530 $ 9,872 $ 20,468 Digital Infrastructure 1,512 5,264 2,829 11,108 Compute 34,295 15,795 50,413 47,933 Other — 3,626 — 7,447 Total revenue 41,299 35,215 63,114 86,956 Cost of revenue (exclusive of depreciation and amortization shown below): Cost of revenue – Power 5,000 5,449 8,628 9,082 Cost of revenue – Digital Infrastructure 2,120 4,331 3,679 8,960 Cost of revenue – Compute 14,656 8,670 28,128 26,356 Cost of revenue – Other — 2,186 — 4,385 Total cost of revenue 21,776 20,636 40,435 48,783 Operating expenses (income): Depreciation and amortization 19,458 11,531 34,357 23,003 General and administrative expenses 30,158 17,899 51,217 37,898 (Gains) losses on digital assets (217,640) 71,842 (105,246) (202,732) (Gain) loss on sale of property and equipment (312) — 2,142 (190) Total operating (income) expenses (168,336) 101,272 (17,530) (142,021) Operating income (loss) 187,859 (86,693) 40,209 180,194 Other income (expense): Foreign exchange gain (loss) 3,114 720 3,123 (1,679) Interest expense (8,396) (6,012) (15,865) (12,293) Asset contribution costs — — (22,780) — (Loss) gain on derivatives (18,403) 17,219 2,459 17,219 (Loss) gain on other financial liability (181) — 958 — Equity in earnings of unconsolidated joint venture 1,064 2,440 2,429 6,962 Total other (expense) income (22,802) 14,367 (29,676) 10,209 Income (loss) from continuing operations before taxes 165,057 (72,326) 10,533 190,403 Income tax (provision) benefit (27,574) 1,874 (7,369) (2,522) Net income (loss) from continuing operations $ 137,483 $ (70,452) $ 3,164 $ 187,881 Loss from discontinued operations (net of income tax benefit of nil, nil, nil and nil, respectively) — (1,738) — (9,364) Net income (loss) 137,483 (72,190) 3,164 178,517 Less: Net (income) loss attributable to non-controlling interests (171) 324 259 493 Net income (loss) attributable to Hut 8 Corp. $ 137,312 $ (71,866) $ 3,423 $ 179,010 Net (loss) income per share of common stock: Basic from continuing operations attributable to Hut 8 Corp. $ 1.32 $ (0.78) $ 0.04 $ 2.10 Diluted from continuing operations attributable to Hut 8 Corp. $ 1.18 $ (0.78) $ 0.03 $ 2.00 Weighted average number of shares of common stock outstanding: Basic 104,246,041 90,192,842 103,554,237 89,671,344 Diluted 119,018,761 90,192,842 109,070,208 94,152,139 Net income (loss) $ 137,483 $ (72,190) $ 3,164 $ 178,517 Other comprehensive income (loss): Foreign currency translation adjustments 39,892 (7,362) 41,079 (18,436) Total comprehensive income (loss) 177,375 (79,552) 44,243 160,081 Less: Comprehensive (income) loss attributable to non-controlling interest (227) 423 204 557 Comprehensive income (loss) attributable to Hut 8 Corp. $ 177,148 $ (79,129) $ 44,447 $ 160,638 See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements. Adjusted EBITDA Reconciliation Three Months Ended June 30 Increase (in USD thousands) 2025 2024 (Decrease) Net income (loss) $ 137,483 $ (72,190) $ 209,673 Interest expense 8,396 6,012 2,384 Income tax provision (benefit) 27,574 (1,874) 29,448 Depreciation and amortization 19,458 11,531 7,927 Share of unconsolidated joint venture depreciation and amortization (1) 5,543 7,837 (2,294) Foreign exchange gain (3,114) (720) (2,394) Gain on sale of property and equipment (312) — (312) Loss (gain) on derivatives 18,403 (17,219) 35,622 Loss on other financial liability 181 — 181 Non-recurring transactions (2) 3,739 21 3,718 Loss from discontinued operations (net of income tax benefit of nil and nil, respectively) — 1,738 (1,738) (Income) loss attributable to non-controlling interests (3,786) 324 (4,110) Stock-based compensation expense 7,640 7,010 630 Adjusted EBITDA $ 221,205 $ (57,530) $ 278,735 Net of the accretion of fair value differences of depreciable and amortizable assets included in equity in earnings of unconsolidated joint venture in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) in accordance with ASC 323. See Note 9. Investments in unconsolidated joint venture of our Unaudited Condensed Consolidated Financial Statements for further detail. Non-recurring transactions for the three months ended June 30, 2025 primarily represent approximately $3.5 million of American Bitcoin related transaction costs, and $0.2 million of restructuring costs. Non-recurring transactions for the three months ended June 30, 2024 represent approximately $1.5 million of miner relocation costs, $0.7 million of restructuring costs, offset by a $2.2 million tax refund. Contacts Hut 8 Investor Relations Sue Ennis ir@ Hut 8 Public Relations Gautier Lemyze-Young media@
