
Colorado officials say contractors falsified data at over 400 oil and gas sites
The Energy and Carbon Management Commission (ECMC) announced that two environmental consultants hired by oil and gas operators, Eagle Environmental Consulting, INC. and Tasman Geosciences, submitted falsified laboratory data reports. They say the data manipulation affected soil, groundwater, and inorganic and organic contaminant data for 404 oil and gas locations in Weld County.
Civitas hired one of the environmental consultants in question.
A neighborhood environmental group in Colorado, Save the Aurora Reservoir (S.T.A.R.), has been trying to stop the construction of a Civitas oil and gas project near the Aurora Reservoir for five years. Now, thanks to a State of Colorado investigation, they think they may have the evidence they need to do it.
"It is frustrating. It's interesting, that's part of why we're here is to raise awareness," said Randy Willard, a Community Director with S.T.A.R., who spent part of his Saturday morning setting up their booth at the Arapahoe County Fair. They are trying to raise awareness about the upcoming approval hearing for the Sunlight-Long well, which will be the drilling site closest to the Aurora Reservoir.
"It actually will sit up on the hills, will be nicely visible when you're at the beach," said Willard.
Civitas has said repeatedly that it will protect the environment, having previously stated that they have worked hard to protect the environment and minimize impacts to communities. In a past statement, they told CBS Colorado:
"We're especially proud of our design and utilization of the latest technologies to achieve and even exceed the state's and Arapahoe County's regulations, which remain among the strictest in the country."
But Willard and S.T.A.R. disagree.
"There's just a lot of things that are indicating to us that this industry is not operating as above board," said Willard.
Now, with the ECMC issuing a Notice of Alleged Violation to seven operators, including Civitas, Willard says he will push harder to keep their project out of his neighborhood. Especially at the upcoming ECMC meeting that will discuss approval of the Sunlight-Long well.
"We're very concerned about that, and we're bringing it up to all the authorities that we can," said Willard.
CBS Colorado reached out to Eagle Environmental Consulting, INC. and Tasman Geosciences, but have not received a response as of the publishing of this article.
We also reached out to all three operators who hired those contractors about the notice of alleged violations. Although CBS Colorado has not received a response from Civitas, two other operators sent statements to CBS Colorado. A Spokesperson for Oxy said:
"We've received the notice, are currently reviewing the details, and will be responding directly to the ECMC.
In late 2024, we were informed by a third-party environmental consultant that one of its employees, without our knowledge, had altered data related to some of our DJ Basin sites. We promptly reported the issue to the ECMC and immediately began working with regulators to remedy the issue. We were extremely disappointed to learn that an Oxy contractor submitted regulatory filings on Oxy's behalf that contained inaccurate, falsified data. We are committed to ensuring that everything submitted on behalf of Oxy is accurate."
A spokesperson for Chevron said:
"We received the Notice of Alleged Violation and we are currently reviewing.
When Chevron became aware of this fraud, it promptly launched an investigation into these incidents and disclosed a list of the potentially impacted sites to the Colorado Energy and Carbon Management Commission (ECMC). We continue to cooperate fully and work closely with ECMC.
Since learning of this falsified data, Chevron hired additional personnel to help review and assess all remediation contractor reports and increased its audits of laboratory reports and third-party consultants.
Chevron is shocked that any third-party contractor would intentionally falsify data and file it with state officials to assess environmental corrective actions taken by Chevron.
We remain committed to conducting business in full compliance with the laws and regulations in Colorado, as well as in all other jurisdictions in which we do business. Operating responsibly and ethically is a core value at Chevron and we expect the same from our contractors."
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The conference call and presentation can be accessed by registering for the webcast at A live webcast and replay of the conference call in addition to the presentation can be accessed from the DigitalOcean investor relations website at About DigitalOcean DigitalOcean is the simplest scalable cloud platform that democratizes cloud and AI for digital native enterprises around the world. Our mission is to simplify cloud and AI so builders can spend more time creating software that changes the world. More than 600,000 customers trust DigitalOcean to deliver the cloud, AI, and ML infrastructure they need to build and scale their organizations. To learn more about DigitalOcean, visit Forward‑Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our performance, including but not limited to statements in the section titled "Financial Outlook." The forward-looking statements contained in this release and the accompanying earnings call referenced in this release are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to: (1) fluctuations in our financial results make it difficult to project future results; (2) our ability to sustain profitability in the future; (3) our ability to expand usage of our platform by existing customers and/or attract new customers and/or retain existing customers; (4) the speed at which the market for our platform and solutions develops; (5) the success of the development and use of our artificial intelligence and machine learning (AI/ML) product offerings or use of third-party AI/ML-based tools; (6) our ability to release updates and new features to our platform and adapt and respond effectively to rapidly changing technology or customer needs; (7) our ability to control costs, including our operating expenses, and the timing of payment for expenses; (8) the amount and timing of non-cash expenses, including stock-based compensation, goodwill impairments and other non-cash charges; (9) breaches in our security measures allowing unauthorized access to our platform, our data, or our customers' data; (10) the competitive markets in which we participate; (11) our ability to effectively integrate and retain new members of our executive leadership team and senior management; (12) the effects of acquisitions and their integration; (13) general market, political, economic, and business conditions, including changes in trade policies, such as trade wars, tariffs and other restrictions or the threat of such actions; (14) the impact of new accounting pronouncements; (15) our ability to control fraudulent registrations and usage of our platform, reduce bad debt and lessen capacity constraints on our data centers, servers and equipment; and (16) our customers' ability to have continued and unimpeded access to our platform, including as a result of evolving laws and industry standards. Further information on these and additional risks, uncertainties, assumptions and other factors that could cause actual results or outcomes to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings and reports we make with the SEC. We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. We assume no obligation to, and do not currently intend to, update any such forward-looking statements after the date of this release. About Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States, or GAAP, we provide investors with non-GAAP financial measures including: (i) adjusted EBITDA and adjusted EBITDA margin; (ii) non-GAAP net income and non-GAAP diluted net income per share; and (iii) adjusted free cash flow and adjusted free cash flow margin. These measures are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In particular, adjusted free cash flow is not a substitute for cash provided by operating activities. Additionally, the utility of adjusted free cash flow as a measure of our financial performance and liquidity is further limited as it does not represent the total increase or decrease in our cash balance for a given period. Our calculations of each of these measures may differ from the calculations of measures with the same or similar titles by other companies and therefore comparability may be limited. Because of these limitations, when evaluating our performance, you should consider each of these non-GAAP financial measures alongside other financial performance measures, including the most directly comparable financial measure calculated in accordance with GAAP and our other GAAP results. A reconciliation of each of our non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP is set forth in the tables in the section "Reconciliation of GAAP to Non-GAAP Data." Adjusted EBITDA and Adjusted EBITDA Margin We define adjusted EBITDA as net income attributable to common stockholders, adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, acquisition related compensation, acquisition and integration related costs, income tax expense (benefit), restructuring and other charges, restructuring related charges, impairment of certain long-lived assets, interest income and other income, net, revaluation of warrants, loss on extinguishment of debt, release of a VAT reserve, and other charges. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. We believe that adjusted EBITDA, when taken together with our GAAP financial results, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, evaluating our operating performance, and for internal planning and forecasting purposes. Our calculation of adjusted EBITDA and adjusted EBITDA margin may differ from the calculations of adjusted EBITDA and adjusted EBITDA margin by other companies and therefore comparability may be limited. Because of these limitations, when evaluating our performance, you should consider adjusted EBITDA and adjusted EBITDA margin alongside other financial performance measures, including our net income attributable to common stockholders and other GAAP results. Non-GAAP Net Income and Non-GAAP Diluted Net Income Per Share We define non-GAAP net income as net income attributable to common stockholders, excluding stock-based compensation, acquisition related compensation, amortization of acquired intangibles, acquisition and integration related costs, restructuring and other charges, restructuring related charges, impairment of certain long-lived assets, loss on extinguishment of debt, revaluation of warrants, release of a VAT reserve, and other charges. We define non-GAAP diluted net income per share as non-GAAP net income divided by the weighted-average diluted shares outstanding, which includes the potentially dilutive effect of our stock options, RSUs, PRSUs, and Convertible Notes. We believe non-GAAP diluted net income per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric generally eliminates the effects of unusual or non-recurring items from period to period for reasons unrelated to overall operating performance. Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin Adjusted free cash flow is a non-GAAP financial measure that we define as Net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software costs, purchase of intangible assets, and excluding cash paid for restructuring and other charges, acquisition related compensation, restructuring related charges, and acquisition and integration related costs. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by total revenue. We believe that adjusted free cash flow and adjusted free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our core operations that can be used for strategic initiatives, including investing in our business and selectively pursuing acquisitions and strategic investments. We further believe that historical and future trends in adjusted free cash flow and adjusted free cash flow margin, even if negative, provide useful information about the amount of Net cash provided by operating activities that is available (or not available) to be used for strategic initiatives. One limitation of adjusted free cash flow and adjusted free cash flow margin is that they do not reflect our future contractual commitments. Additionally, adjusted free cash flow does not represent the total increase or decrease in our cash balance for a given period. Key Business Metrics: We utilize the key metrics set forth below to help us evaluate our business and growth, identify trends, formulate financial projections and make strategic decisions. Customers We calculate customer count as the average number of customers as of the last day of the month for each month in the most recent quarter. Customers are classified in the following categories based on the amount of their spend in a given month and individual customers may fall within different categories within a reporting period: Testers: users that both (i) spend less than or equal to $50 in a month and (ii) have been on our platform for three months or less. Learners: users that both (i) spend less than or equal to $50 in a month and (ii) have been on our platform for more than three months. Builders: users that spend more than $50 and less than or equal to $500 in a month. Scalers: users that spend more than $500 and less than or equal to $8,333 in a month. Scalers+: users that spend more than $8,333 in a month. We refer to our Builders, Scalers and Scalers+ customers collectively as our Higher Spend Customers. ARPU We calculate ARPU on a monthly basis as our total revenue from Learners, Builders, Scalers and Scalers+ in that period divided by the total number of Learners, Builders, Scalers and Scalers+ customers determined as of the last day of that month. For a quarterly or annual period, ARPU is determined as the weighted average monthly ARPU over such three or 12-month period. ARR We calculate ARR by multiplying the revenue for the most recent quarter by four. For our ARR calculations, we include the total revenue from all customers, including Testers, Learners, Builders, Scalers, and Scalers+. Net Dollar Retention Rate We calculate net dollar retention rate monthly by starting with the revenue from all customers, including Testers, Learners, Builders, Scalers and Scalers+ for our IaaS and PaaS/SaaS offerings during the corresponding month 12 months prior, or the Prior Period Revenue. We then calculate the revenue from these same customers as of the current month, or the Current Period Revenue, including any expansion and net of any contraction or attrition from these customers over the last 12 months. The calculation also includes revenue from customers that generated revenue before, but not in, the corresponding month 12 months prior, but subsequently generated revenue in the current month and are therefore reflected in the Current Period Revenue. We include this group of re-engaged customers in this calculation because some of our customers use our platform for projects that stop and start over time. 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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Revenue $ 218,700 $ 192,476 $ 429,403 $ 377,206 Cost of revenue 87,755 78,328 169,014 153,910 Gross profit 130,945 114,148 260,389 223,296 Operating expenses: Research and development 39,644 32,984 79,238 65,911 Sales and marketing 19,288 17,997 38,689 36,907 General and administrative 36,394 40,839 69,201 86,612 Total operating expenses 95,326 91,820 187,128 189,430 Income from operations 35,619 22,328 73,261 33,866 Other income (expense): Interest expense (2,239 ) (2,321 ) (4,447 ) (4,625 ) Loss on extinguishment of debt (269 ) — (269 ) — Interest income and other income, net 9,337 4,802 15,283 9,823 Other income, net 6,829 2,481 10,567 5,198 Income before income taxes 42,448 24,809 83,828 39,064 Income tax expense (5,421 ) (5,671 ) (8,597 ) (5,787 ) Net income attributable to common stockholders $ 37,027 $ 19,138 $ 75,231 $ 33,277 Net income per share attributable to common stockholders Basic $ 0.41 $ 0.21 $ 0.82 $ 0.37 Diluted $ 0.39 $ 0.20 $ 0.77 $ 0.35 Weighted-average shares used to compute net income per share attributable to common stockholders Basic 91,097 91,318 91,538 91,049 Diluted 100,617 93,832 101,521 94,005 ______________ (1) Amounts for the three and six months ended June 30, 2024 have been recast to conform with current period presentation. Refer to Note 2. Summary of Significant Accounting Policies, Prior Period Reclassification, in Item 8. in the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2024 for further details. DIGITALOCEAN HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended June 30, 2025 2024 Operating activities Net income attributable to common stockholders $ 75,231 $ 33,277 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 61,975 65,016 Stock-based compensation 40,513 44,710 Provision for expected credit losses 8,607 7,985 Operating lease right-of-use assets and liabilities, net (13,816 ) 1,423 Loss on extinguishment of debt 269 — Net accretion of discounts and amortization of premiums on investments — 2,569 Non-cash interest expense 4,005 3,988 Impairment of certain long-lived assets — 356 Other (7,853 ) 361 Changes in operating assets and liabilities: Accounts receivable (17,064 ) (13,234 ) Prepaid expenses and other current assets 1,201 (4,346 ) Accounts payable and accrued expenses (3,029 ) (3,655 ) Deferred revenue 5,867 1,462 Other assets and liabilities 631 (1,879 ) Net cash provided by operating activities 156,537 138,033 Investing activities Capital expenditures - property and equipment (95,160 ) (75,534 ) Capital expenditures - internal-use software development (3,412 ) (4,046 ) Purchase of intangible assets (1,835 ) — Maturities of marketable securities — 91,675 Net cash (used in) provided by investing activities (100,407 ) 12,095 Financing activities Payment of debt issuance costs (4,081 ) — Proceeds related to the issuance of common stock under equity incentive plan 2,771 7,948 Proceeds from the issuance of common stock under employee stock purchase plan 2,660 2,231 Principal repayments of finance leases (2,733 ) (2,720 ) Employee payroll taxes paid related to net settlement of equity awards (16,294 ) (13,469 ) Repurchase and retirement of common stock including related costs (79,199 ) (18,183 ) Net cash used in financing activities (96,876 ) & (24,193 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 45 (61 ) (Decrease) increase in cash, cash equivalents and restricted cash (40,701 ) 125,874 Cash, cash equivalents and restricted cash - beginning of period 430,193 318,983 Cash, cash equivalents and restricted cash - end of period $ 389,492 $ 444,857 DIGITALOCEAN HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) Adjusted EBITDA and Adjusted EBITDA Margin Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2025 2024 2025 2024 GAAP Net income attributable to common stockholders $ 37,027 $ 19,138 $ 75,231 $ 33,277 Adjustments: Depreciation and amortization 32,765 33,129 61,975 65,016 Stock-based compensation(1) 21,081 21,833 40,513 44,563 Interest expense 2,239 2,321 4,447 4,625 Acquisition related compensation — 3,716 — 8,246 Acquisition and integration related costs — (19 ) — — Income tax expense 5,421 5,671 8,597 5,787 Loss on extinguishment of debt 269 — 269 — Restructuring related charges(1)(2) — 243 — 3,863 Impairment of certain long-lived assets — 356 — 356 Interest income and other income, net(3) (9,337 ) (4,802 ) (15,283 ) (9,823 ) Adjusted EBITDA $ 89,465 $ 81,586 $ 175,749 $ 155,910 As a percentage of revenue: Net income margin 17 % 10 % 18 % 9 % Adjusted EBITDA margin 41 % 42 % 41 % 41 % ___________________ (1) For the six months ended June 30, 2024, non-GAAP stock-based compensation excludes $0.1 million as it is presented in restructuring related charges. (2) For the three and six months ended June 30, 2024, primarily consists of executive reorganization charges. (3) For the three and six months ended June 30, 2025, primarily consists of interest income from our cash and cash equivalents. For the three and six months ended June 30, 2024, primarily consists of interest and accretion income from our cash and cash equivalents and marketable securities. Non-GAAP Net Income and Non-GAAP Diluted Net Income Per Share Three Months Ended Six Months Ended June 30, June 30, (In thousands, except per share amounts) 2025 2024 2025 2024 GAAP Net income attributable to common stockholders $ 37,027 $ 19,138 $ 75,231 $ 33,277 Stock-based compensation(1) 21,081 21,833 40,513 44,563 Acquisition related compensation — 3,716 — 8,246 Amortization of acquired intangible assets 5,031 5,735 10,228 11,470 Acquisition and integration related costs — (19 ) — — Loss on extinguishment of debt 269 — 269 — Restructuring related charges(1)(2) — 243 — 3,863 Impairment of certain long-lived assets — 356 — 356 Non-GAAP income tax adjustment(3) (5,593 ) (3,397 ) (12,977 ) (11,423 ) Non-GAAP Net income $ 57,815 $ 47,605 $ 113,264 $ 90,352 Non-cash charges related to convertible notes(4) $ 1,596 $ 1,588 $ 3,191 $ 3,174 Non-GAAP Net income used to compute net income per share, diluted $ 59,411 $ 49,193 $ 116,455 $ 93,526 GAAP Net income per share attributable to common stockholders, diluted $ 0.39 $ 0.20 $ 0.77 $ 0.35 Stock-based compensation(1) 0.21 0.21 0.40 0.44 Acquisition related compensation — 0.04 — 0.08 Amortization of acquired intangible assets 0.05 0.06 0.10 0.11 Acquisition and integration related costs — — — — Loss on extinguishment of debt — — — — Restructuring related charges(1)(2) — — — 0.04 Impairment of certain long-lived assets — — — — Non-cash charges related to convertible notes(4) 0.02 0.02 0.03 0.03 Non-GAAP income tax adjustment(3) (0.08 ) (0.03 ) (0.15 ) (0.11 ) Non-GAAP Net income per share, diluted(5) $ 0.59 $ 0.48 $ 1.15 $ 0.91 GAAP Weighted-average shares used to compute net income per share, diluted 100,617 93,832 101,521 94,005 Weighted-average dilutive effect of potentially dilutive securities — 8,403 — 8,403 Non-GAAP Weighted-average shares used to compute net income per share, diluted 100,617 102,235 101,521 102,408 ______________ (1) For the six months ended June 30, 2024, non-GAAP stock-based compensation excludes $0.1 million as it is presented in restructuring related charges. (2) For the three and six months ended June 30, 2024, primarily consists of executive reorganization charges. (3) For the periods in fiscal year 2025 and 2024, we used a tax rate of 16%, which we believe is a reasonable estimate of our long-term effective tax rate applicable to non-GAAP pre-tax income for each respective year. (4) Consists of non-cash interest expense for amortization of deferred financing fees related to the Convertible Notes. (5) May not foot due to rounding. Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2025 2024 2025 2024 GAAP Net cash provided by operating activities $ 92,447 $ 71,340 $ 156,537 $ 138,033 Adjustments: Capital expenditures - property and equipment (33,197 ) (31,869 ) (95,160 ) (75,534 ) Capital expenditures - internal-use software development (1,383 ) (2,483 ) (3,412 ) (4,046 ) Purchase of intangible assets (852 ) — (1,835 ) — Restructuring and other charges — — 64 61 Restructuring related charges(1) — 437 — 4,630 Acquisition related compensation — — — 8,326 Acquisition and integration related costs — 4 — 302 Adjusted free cash flow $ 57,015 $ 37,429 $ 56,194 $ 71,772 As a percentage of revenue: GAAP Net cash provided by operating activities 42 % 37 % 36 % 37 % Adjusted free cash flow margin 26 % 19 % 13 % 19 % ________________ (1) For the three and six months ended June 30, 2024, primarily consists of executive reorganization charges. View source version on Contacts Investor Melanie Strateinvestors@ Media Ken Lotichpress@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data