SL Green Raises Over $1.0 Billion for Opportunistic Debt Fund
'We have seen an overwhelming appetite for New York City investment from sophisticated domestic and international investors who recognize the opportunity and share the desire to invest alongside SL Green in this market,' said Harrison Sitomer, Chief Investment Officer at SL Green. 'It is especially gratifying to work with so many existing institutional partners, while bringing on capital from new relationships as well. Reaching this milestone marks an important first step in the continued growth of SL Green's asset management platform.'
The SLG Opportunistic Debt Fund, which launched in 2024, is focused on capitalizing on the dislocation between rapidly improving leasing fundamentals and the early stages of improving debt capital markets. The fund targets high quality assets in New York City, where traditional financing remains constrained, delivering flexible capital solutions to both borrowers and lenders.
'The strong global demand underscores the market's confidence in SL Green's ability to source and execute high-conviction opportunities in New York City and is a clear testament to our track record as a disciplined investor and operator in one of the world's most competitive markets,' said Young Hahn, Senior Vice President at SL Green. 'We deeply appreciate the continued support of our partners as we now turn our focus to deploying capital into a robust pipeline of opportunities.'
The fund is being actively deployed into investments sourced through long-standing sponsor and lender relationships, and proprietary networks. The fund seeks to provide both current income and capital appreciation through structured debt investments, while maintaining a focus on downside protection. The SLG Opportunistic Debt Fund will originate new loans and/or purchase existing loans, loan portfolios and controlling CMBS securities.
About SL Green Realty Corp.
SL Green Realty Corp., Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing the value of Manhattan commercial properties. As of June 30, 2025, SL Green held interests in 53 buildings totaling 30.7 million square feet. This included ownership interests in 27.2 million square feet of Manhattan buildings and 2.7 million square feet securing debt and preferred equity investments.
SLG Opportunistic Debt Fund Disclaimer
An investment in the fund involves a high degree of risk, is suitable only for sophisticated investors and requires the financial ability and willingness to accept the high risks and lack of liquidity inherent in an investment in the fund. This press release is not an offer to sell to any person, or a solicitation to any person to buy, securities. Any offers and sales of securities in the fund will be made pursuant to and in accordance with the fund's private placement memorandum. To invest in the fund, each prospective limited partner will be required to execute certain other documents and prior to making any investment in the fund, such documents should be reviewed carefully.
Forward Looking Statements
This press release includes certain statements that may be deemed to be 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, occupancy, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words 'may,' 'will,' 'should,' 'expect,' 'anticipate,' 'estimate,' 'believe,' 'intend,' 'project,' 'continue,' or the negative of these words, or other similar words or terms.
Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements include risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.
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W&T Offshore Announces Second Quarter 2025 Results, Declares Dividend for Third Quarter of 2025 and Celebrates 20 Year Anniversary on New York Stock Exchange
HOUSTON, Aug. 04, 2025 (GLOBE NEWSWIRE) -- W&T Offshore, Inc. (NYSE: WTI) ('W&T,' the 'Company,' 'we' or 'us') today reported operational and financial results for the second quarter of 2025, declared a third quarter 2025 dividend of $0.01 per share and celebrated 20 years as a public company on the NYSE by ringing the closing bell. This press release includes non-GAAP financial measures, including Adjusted Net Loss, Adjusted EBITDA, Free Cash Flow, Net Debt and PV-10, which are described and reconciled to the most comparable GAAP measures in the accompanying tables to this press release under 'Non-GAAP Information.' Key highlights for the second quarter of 2025 and through the date of this press release include: Increased production by 10% over the first quarter of 2025 to 33.5 thousand barrels of oil equivalent per day ('MBoe/d') (49% liquids), within guidance; The potential revenue benefit from higher volumes in the second quarter of 2025 versus the first quarter of 2025 was offset by lower prices, which reduced quarter-over-quarter revenues from the sale of oil, natural gas liquids ('NGLs') and natural gas by $8.1 million; Performed nine low cost, low risk workovers that exceeded expectations and positively impacted production and revenue for the quarter; Five of the nine workovers were performed in Mobile Bay, W&T's largest natural gas field, and increased production without drilling any additional wells in this low decline, long life asset; Incurred lease operating expenses ('LOE') of $76.9 million, within guidance; Reported net loss of $20.9 million, or $(0.14) per diluted share, an improvement from a net loss of $30.6 million, or $(0.21) per diluted share, in the first quarter of 2025; Adjusted Net Loss totaled $11.8 million, or $(0.08) per diluted share (compared to $19.1 million, or $(0.13) per diluted share in the first quarter of 2025), which primarily excludes the net unrealized gain on outstanding derivative contracts and non-ARO plugging and abandonment costs and the related tax effects; Non-ARO plugging and abandonment costs relate to the Company's assumption of the decommissioning obligations of certain counterparties in past divestiture transactions or third parties in existing leases that have filed for bankruptcy protection or undergone associated reorganizations and may not be able to perform required abandonment obligations; Grew Adjusted EBITDA by 9% over the first quarter of 2025 to $35.2 million; Generated net cash flow from operating activities of $28.0 million and produced Free Cash Flow of $3.6 million; Reported unrestricted cash and cash equivalents of $120.7 million and lowered total debt to $350.1 million and Net Debt to $229.4 million at June 30, 2025; Added the following costless collar oil hedge: 2,000 barrels per day ('Bbl/d') for July through December 2025, with a floor price of $63.00 per Bbl and ceiling price of $77.25 per Bbl; Paid seventh consecutive quarterly dividend of $0.01 per common share in May 2025; Declared third quarter 2025 dividend of $0.01 per share, which will be payable on August 25, 2025 to stockholders of record on August 18, 2025; Reported mid-year SEC proved reserves of 123.0 million barrels of oil equivalent ('MMBoe'), using SEC prices and based on a reserve report prepared by Netherland, Sewell and Associates, Inc. ('NSAI'), and a present value of those SEC proved reserves discounted at 10% ('PV-10') of $1.2 billion; and Announced two positive surety outcomes in June 2025: 1) a settlement agreement with two surety providers representing nearly 70% of W&T's surety bond portfolio (inclusive of surety providers that were not party to the Company's litigation) where all claims against W&T were dismissed, without prejudice; and 2) a federal court recommended denial of a preliminary injunction against W&T by two other surety companies. Tracy W. Krohn, W&T's Chairman of the Board and Chief Executive Officer, commented, 'We are delivering strong results including production growth of 10% and Adjusted EBITDA growth of 9% quarter-over-quarter, all while growing our cash position to over $120 million and reducing our net debt by about $15 million. We took advantage of a temporary spike in oil prices by adding to our crude hedging position to provide some additional downside protection. Operationally, we have brought online the remaining two fields from the Cox acquisition, which we expect will continue to ramp up production into the second half of 2025, as you can see from our third quarter and full year guidance. Acquisitions remain a key component of our success, and it is our ability to integrate and enhance the assets that we acquire that has allowed us to successfully operate for over 40 years. We remain focused on Free Cash Flow and Adjusted EBITDA generation through operational excellence, maximizing production and managing our operating costs. Our balance sheet has continued to strengthen in 2025 with the successful issuance of new 10.75% Notes, a new revolving credit facility and material cash additions through a non-core disposition and an insurance settlement. We have over $120 million in cash on our balance sheet and remain prepared to take advantage of potential acquisitions.' 'Our 2025 mid-year reserve report generated by NSAI showed net positive revisions of 1.8 MMBoe, which continues to demonstrate the strength of our asset base and our ability to maximize value from our fields. Additionally, we have reached a favorable agreement with our two largest surety providers and preliminary injunction motions against W&T from two additional sureties were recommended denied. These positive surety outcomes, coupled with the promising developments in the regulatory environment driven by the White House's directives, alleviates some of the uncertainty that has unnecessarily and artificially suppressed our stock price and we expect that this will allow us to deliver more value to our shareholders. We are well positioned to continue to enhance our portfolio through additional accretive acquisition opportunities and are committed to enhancing shareholder value while returning value to our shareholders through the quarterly dividend program.' Production, Prices and Revenue: Production for the second quarter of 2025 was within the Company's second quarter guidance at 33.5 MBoe/d, an increase of 10% compared with 30.5 MBoe/d for the first quarter of 2025 and a decrease compared with 34.9 MBoe/d for the corresponding period in 2024. The second quarter 2025 production increase was driven by restoring production from fields associated with the 2024 Cox acquisition as well as returning to normal levels the shut-in production caused by freezing in the first quarter of 2025. There was a temporary shut-in of production in Mobile Bay during the second quarter due to a pipeline issue that was resolved by June 30 that reduced second quarter production by about 1,000 barrels of oil equivalent per day ('Boe/d'). Second quarter 2025 production was comprised of 13.8 thousand barrels per day ('MBbl/d') of oil (41%), 2.7 MBbl/d of natural gas liquids ('NGLs') (8%), and 102.0 million cubic feet per day ('MMcf/d') of natural gas (51%). W&T's average realized price per Boe before realized derivative settlements was $39.16 per Boe in the second quarter of 2025, a decrease of 16% from $46.50 per Boe in the first quarter of 2025 and 12% from $44.40 per Boe in the second quarter of 2024. Second quarter 2025 oil, NGL and natural gas prices before realized derivative settlements were $63.55 per barrel of oil, $19.24 per barrel of NGL and $3.75 per Mcf of natural gas. Revenues for the second quarter of 2025 were $122.4 million, which was 6% lower than first quarter of 2025 revenues of $129.9 million due to lower realized prices, which was partially offset by higher production volumes. Second quarter 2025 revenues were lower by 14% compared to $142.8 million of revenues in the second quarter of 2024 due to lower production volumes and lower realized prices. Lease Operating Expenses: LOE, which includes base lease operating expenses, insurance premiums, workovers and facilities maintenance expenses, was $76.9 million in the second quarter of 2025, which was within the Company's guidance range. LOE for the second quarter of 2025 was approximately 8% higher compared to $71.0 million in the first quarter of 2025. Higher LOE in the second quarter of 2025 was primarily driven by higher base operating expenses, insurance expense and workover expenses. LOE for the second quarter of 2025 was slightly higher than the $74.0 million for the corresponding period in 2024. On a component basis for the second quarter of 2025, base LOE and insurance premiums were $59.2 million, workovers were $4.1 million, and facilities maintenance and other expenses were $13.6 million. On a unit of production basis, LOE was $25.20 per Boe in the second quarter of 2025. This was slightly lower than $25.88 per Boe for the first quarter of 2025 and higher than $23.29 per Boe for the corresponding period in 2024. Gathering, Transportation Costs and Production Taxes: Gathering, transportation costs and production taxes totaled $5.5 million ($1.80 per Boe) in the second quarter of 2025, compared to $5.7 million ($2.06 per Boe) in the first quarter of 2025 and $8.6 million ($2.70 per Boe) in the second quarter of 2024. Depreciation, Depletion and Amortization ('DD&A'): DD&A was $8.67 per Boe in the second quarter of 2025. This compares to $11.99 per Boe and $11.55 per Boe for the first quarter of 2025 and the second quarter of 2024, respectively. The decrease in the DD&A rate per Boe for the second quarter of 2025 was driven by the revaluing of W&T's underlying asset base associated with the midyear 2025 reserve report. Asset Retirement Obligations Accretion: Asset retirement obligations accretion was $2.84 per Boe in the second quarter of 2025. This compares to $3.06 per Boe and $2.64 per Boe for the first quarter of 2025 and the second quarter of 2024, respectively. General & Administrative Expenses ('G&A'): G&A was $17.7 million for the second quarter of 2025, which decreased from $20.2 million in the first quarter of 2025 and $21.4 million in the second quarter of 2024 primarily due to a decrease in non-recurring legal and professional fees. On a unit of production basis, G&A was $5.79 per Boe in the second quarter of 2025 compared to $7.35 per Boe in the first quarter of 2025 and $6.72 per Boe in the corresponding period of 2024. Derivative (Gain) Loss, net: In the second quarter of 2025, W&T recorded a net gain of $12.0 million related to commodity derivative contracts comprised of $9.5 million of realized gains, which includes $4.3 million of proceeds from the monetization of the Company's natural gas put contracts, and $2.5 million of unrealized gains related to the increase in fair value of open contracts. W&T recognized a net loss of $2.8 million in the first quarter of 2025 and a net loss of $2.4 million in the second quarter of 2024 related to commodity derivative activities. A summary of the Company's outstanding derivative positions is provided in the investor presentation posted on W&T's website. Interest Expense: Net interest expense in the second quarter of 2025 was $9.0 million compared to $9.5 million in the first quarter of 2025 and $10.2 million in the second quarter of 2024. These decreases reflect the impact of the Company's debt refinancing in January 2025. Other Expense: During the second quarter of 2025, the Company reassessed its non-ARO plugging and abandonment costs and recorded a $13.9 million increase in the contingent loss accrual. This compares with a decrease of $0.2 million in the contingent loss accrual in the first quarter of 2025 and a $1.7 million increase in the contingent loss accrual in the second quarter of 2025. Although it is reasonably possible that the Company could receive state or federal decommissioning orders in the future or be notified of defaulting third parties in existing leases, the Company cannot predict with certainty, if, how or when such orders or notices will be resolved or estimate a possible loss or range of loss that may result from such orders. Income Tax Benefit: W&T recognized an income tax benefit of $2.4 million in the second quarter of 2025. This compares to the recognition of an income tax benefit of $4.6 million in both the first quarter of 2025 and the second quarter of 2024. Balance Sheet and Liquidity: As of June 30, 2025, W&T had available liquidity of $170.7 million comprised of $120.7 million in unrestricted cash and cash equivalents and $50.0 million of borrowing availability under W&T's new revolving credit facility. As of June 30, 2025, the Company had total debt of $350.1 million and Net Debt of $229.4 million, which decreased $14.7 million from $244.1 million at March 31, 2025. As of June 30, 2025, Net Debt to trailing twelve months Adjusted EBITDA was 1.8x. Capital Expenditures and Asset Retirement Obligation Settlements: Capital expenditures on an accrual basis in the second quarter of 2025 were $10.4 million, and asset retirement obligation settlement costs totaled $12.2 million. The Company continues to expect its full year capital expenditure budget to be between $34 million and $42 million, which excludes potential acquisition opportunities. Cash Dividend Policy The Company paid its second quarter 2025 dividend of $0.01 per share on May 27, 2025 to stockholders of record on May 20, 2025. The Board of Directors declared a third quarter 2025 dividend of $0.01 per share which is to be paid on August 25, 2025 to stockholders of record on August 18, 2025. Surety Update As previously announced on June 17, 2025, the Company came to a settlement agreement with two of its largest surety providers which calls for the dismissal of a previously filed lawsuit. The settlement agreement requires the surety providers to withdraw their current collateral demands, and further provides that the surety providers may not make additional collateral demands or increase premiums through December 31, 2026, outside certain limited circumstances involving unlikely events of default. Additionally, premium rates for all existing bonds provided by the two surety providers will be locked in at W&T's historical rates without increase through December 31, 2026, representing a prolonged rate lock in excess of 'ordinary course' rate negotiations, thereby providing consistency and predictability in W&T's surety premium expense. These two surety providers, together with W&T's other major surety provider who did not attempt to increase premiums or call for collateral, represent nearly 70% of W&T's surety bond portfolio. As previously announced on June 30, 2025, a U.S. Magistrate Judge recommended denying two surety companies motions for preliminary injunction, through which they collectively asked for full monetization of over $100 million. The Court found, in relevant part, the sureties failed to demonstrate they would suffer irreparable harm if their cash collateral demands were not granted. W&T will not be required to post collateral (if at all) until a determination on the merits of the pending lawsuit with the remaining surety providers. OPERATIONS UPDATE Well Recompletions and Workovers During the second quarter of 2025, W&T performed nine low cost, low risk workovers that exceeded expectations and positively impacted production and revenue for the quarter. Five of the nine workovers were performed in Mobile Bay, W&T's largest natural gas field, and increased production without drilling any additional wells in this low decline, long life asset. W&T plans to continue performing these low cost and low risk short payout operations that impact both production and revenue. Mid-Year 2025 Proved Reserves As calculated by NSAI, W&T's independent reserve engineering consultants, proved reserves using SEC pricing methodology totaled 123.0 MMBoe at June 30, 2025, compared with 127.0 MMBoe at year-end 2024. The decrease in proved reserves was primarily driven by 5.8 MMBoe of production in the first half of 2025, partially offset by net positive revisions of 1.8 MMBoe. The mid-year proved reserves, which were 67% proved developed producing, 27% proved developed non-producing and 6% proved undeveloped, were 44% liquids (34% oil and 10% NGLs) and 56% natural gas. W&T operates approximately 94% of its mid-year 2025 proved reserves. The pre-tax PV-10 of the mid-year 2025 proved reserves using SEC pricing was $1.2 billion (before consideration of expenditures for asset retirement obligations). This compares to the pre-tax PV-10 of $1.2 billion at year-end 2024, as W&T was able to preserve its reserve value despite six months of production. Mid-year 2025 SEC proved reserves and PV-10 were based on an average 12-month oil and natural gas prices of $71.20 per barrel and $2.86 per MMBtu, respectively. Prices used to determine proved reserves and PV-10 for year-end 2024 were $76.32 per barrel of oil and $2.13 per MMBtu of natural gas. Third Quarter and Full Year 2025 Production and Expense Guidance The guidance for the third quarter and full year 2025 in the table below represents the Company's current expectations. Please refer to the section entitled 'Forward-Looking and Cautionary Statements' below for risk factors that could impact guidance. Production Third Quarter 2025 Full Year 2025 Oil (MBbl) 1,320 – 1,460 5,150 ‒ 5,690 NGLs (MBbl) 210 – 235 1,020 ‒ 1,140 Natural gas (MMcf) 9,080 – 10,040 34,880 ‒ 38,560 Total equivalents (MBoe) 3,043 – 3,368 11,983 – 13,257 Average daily equivalents (MBoe/d) 33.1 – 36.6 32.8 – 36.3 Expenses Third Quarter 2025 Full Year 2025 Lease operating expense ($MM) 71.5 – 79.3 280.0 – 310.0 Gathering, transportation & production taxes ($MM) 6.7 – 7.5 27.1 – 30.1 General & administrative – cash ($MM) 15.6 – 17.4 62.0 – 69.0 DD&A ($ per Boe) 13.40 – 14.90 W&T expects substantially all income taxes in 2025 to be deferred. Conference Call Information: W&T will hold a conference call to discuss its financial and operational results on Tuesday, August 5, 2025 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). Interested parties may dial 1-844-739-3797. International parties may dial 1-412-317-5713. Participants should request to connect to the 'W&T Offshore Conference Call.' This call will also be webcast and available on W&T's website at under 'Investors.' An audio replay will be available on the Company's website following the call. W&T Offshore, Inc. Rang New York Stock Exchange Closing Bell on August 4 W&T Offshore, Inc. rang the closing bell at the NYSE in commemoration of twenty years of being listed on the NYSE. The Company has been a publicly traded company since 2005. W&T's Founder, Chairman, Chief Executive Officer and President, Tracy W. Krohn, rang the bell alongside the board of directors of the Company and other employees. The closing bell was rung on August 4, 2025, at 4:00 p.m. Eastern Time. Interested parties may review the coverage of the bell ringing as well as a video on demand on the NYSE's website at Videos and photos of the ceremony will be posted on W&T's web site under the Investors section and shared on the NYSE and W&T social media channels. About W&T Offshore W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of America and has grown through acquisitions, exploration and development. As of June 30, 2025, the Company had working interests in 50 fields in federal and state waters (which include 43 fields in federal waters and seven in state waters). The Company has under lease approximately 629,700 gross acres (491,900 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama, with approximately 482,200 gross acres on the conventional shelf, approximately 141,900 gross acres in the deepwater and 5,600 gross acres in Alabama state waters. A majority of the Company's daily production is derived from wells it operates. For more information on W&T, please visit the Company's website at Forward-Looking and Cautionary Statements This press 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. All statements other than statements of historical facts included in this release, including those regarding the Company's financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, projected costs, industry conditions, potential acquisitions, sustainability initiatives, the outcomes and impact of ongoing litigation, the impact of and integration of acquired assets, and indebtedness are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as 'estimate,' 'project,' 'predict,' 'believe,' 'expect,' 'continue,' 'anticipate,' 'target,' 'could,' 'plan,' 'intend,' 'seek,' 'goal,' 'will,' 'should,' 'may' or other words and similar expressions that convey the uncertainty of future events or outcomes, although not all forward-looking statements contain such identifying words. Items contemplating or making assumptions about actual or potential future production and sales, prices, market size, and trends or operating results also constitute such forward-looking statements. These forward-looking statements are based on the Company's current expectations and assumptions about future events and speak only as of the date of this release. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, as results actually achieved may differ materially from expected results described in these statements. The Company does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements, unless required by law. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ including, among other things, the regulatory environment, including availability or timing of, and conditions imposed on, obtaining and/or maintaining permits and approvals, including those necessary for drilling and/or development projects; the impact of current, pending and/or future laws and regulations, and of legislative and regulatory changes and other government activities, including those related to permitting, drilling, completion, well stimulation, operation, maintenance or abandonment of wells or facilities, managing energy, water, land, greenhouse gases or other emissions, protection of health, safety and the environment, or transportation, marketing and sale of the Company's products; inflation levels; global economic trends, geopolitical risks and general economic and industry conditions, such as the global supply chain disruptions and the government interventions into the financial markets and economy in response to inflation levels and world health events; volatility of oil, NGL and natural gas prices; the global energy future, including the factors and trends that are expected to shape it, such as concerns about climate change and other air quality issues, the transition to a low-emission economy and the expected role of different energy sources; supply of and demand for oil, NGLs and natural gas, including due to the actions of foreign producers, importantly including OPEC and other major oil producing companies ('OPEC+') and change in OPEC+'s production levels; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver the Company's oil and natural gas and other processing and transportation considerations; inability to generate sufficient cash flow from operations or to obtain adequate financing to fund capital expenditures, meet the Company's working capital requirements or fund planned investments; price fluctuations and availability of natural gas and electricity; the Company's ability to use derivative instruments to manage commodity price risk; the Company's ability to meet the Company's planned drilling schedule, including due to the Company's ability to obtain permits on a timely basis or at all, and to successfully drill wells that produce oil and natural gas in commercially viable quantities; uncertainties associated with estimating proved reserves and related future cash flows; the Company's ability to replace the Company's reserves through exploration and development activities; drilling and production results, lower–than–expected production, reserves or resources from development projects or higher–than–expected decline rates; the Company's ability to obtain timely and available drilling and completion equipment and crew availability and access to necessary resources for drilling, completing and operating wells; changes in tax laws; effects of competition; uncertainties and liabilities associated with acquired and divested assets; the Company's ability to make acquisitions and successfully integrate any acquired businesses; asset impairments from commodity price declines; large or multiple customer defaults on contractual obligations, including defaults resulting from actual or potential insolvencies; geographical concentration of the Company's operations; the creditworthiness and performance of the Company's counterparties with respect to its hedges; impact of derivatives legislation affecting the Company's ability to hedge; failure of risk management and ineffectiveness of internal controls; catastrophic events, including tropical storms, hurricanes, earthquakes, pandemics and other world health events; environmental risks and liabilities under U.S. federal, state, tribal and local laws and regulations (including remedial actions); potential liability resulting from pending or future litigation; the Company's ability to recruit and/or retain key members of the Company's senior management and key technical employees; information technology failures or cyberattacks; and governmental actions and political conditions, as well as the actions by other third parties that are beyond the Company's control, and other factors discussed in W&T Offshore's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q found at or at the Company's website at under the Investor Relations section. W&T OFFSHORE, INC. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2025 2025 2024 2025 2024 Revenues: Oil $ 80,014 $ 87,716 $ 110,965 $ 167,730 $ 217,980 NGLs 4,715 4,772 8,160 9,487 15,629 Natural gas 34,802 35,109 21,910 69,911 43,526 Other 2,836 2,270 1,722 5,106 6,409 Total revenues 122,367 129,867 142,757 252,234 283,544 Operating expenses: Lease operating expenses 76,924 71,012 73,987 147,936 144,817 Gathering, transportation and production taxes 5,499 5,659 8,578 11,158 16,118 Depreciation, depletion, and amortization 26,446 32,891 36,674 59,337 70,611 Asset retirement obligations accretion 8,681 8,392 8,400 17,073 16,369 General and administrative expenses 17,670 20,157 21,354 37,827 41,869 Total operating expenses 135,220 138,111 148,993 273,331 289,784 Operating loss (12,853) (8,244) (6,236) (21,097) (6,240) Interest expense, net 9,005 9,492 10,164 18,497 20,236 Loss on extinguishment of debt — 15,015 — 15,015 — Derivative (gain) loss, net (12,047) 2,757 2,374 (9,290) (2,503) Other expense (income), net 13,455 (316) 1,250 13,139 6,480 Loss before income taxes (23,266) (35,192) (20,024) (58,458) (30,453) Income tax benefit (2,382) (4,615) (4,636) (6,997) (3,591) Net loss $ (20,884) $ (30,577) $ (15,388) $ (51,461) $ (26,862) Net loss per common share (basic and diluted) $ (0.14) $ (0.21) $ (0.10) $ (0.35) $ (0.18) Weighted average common shares outstanding (basic and diluted) 147,847 147,598 146,943 147,723 146,900 W&T OFFSHORE, INC. Condensed Operating Data (Unaudited) Three Months Ended Six Month s Ended June 30, March 31, June 30, June 30, 2025 2025 2024 2025 2024 Net sales volumes: Oil (MBbls) 1,259 1,230 1,382 2,489 2,782 NGLs (MBbls) 245 200 334 445 677 Natural gas (MMcf) 9,285 7,884 8,769 17,169 17,502 Total oil and natural gas (MBoe) (1) 3,052 2,744 3,177 5,796 6,376 Average daily equivalent sales (MBoe/d) 33.5 30.5 34.9 32.0 35.0 Average realized sales prices (before the impact of derivative settlements): Oil ($/Bbl) $ 63.55 $ 71.31 $ 80.29 $ 67.39 $ 78.35 NGLs ($/Bbl) 19.24 23.86 24.43 21.32 23.09 Natural gas ($/Mcf) 3.75 4.45 2.50 4.07 2.49 Barrel of oil equivalent ($/Boe) 39.16 46.50 44.40 42.64 43.47 Average operating expenses per Boe ($/Boe): Lease operating expenses $ 25.20 $ 25.88 $ 23.29 $ 25.52 $ 22.71 Gathering, transportation and production taxes 1.80 2.06 2.70 1.93 2.53 Depreciation, depletion, and amortization 8.67 11.99 11.55 10.24 11.07 Asset retirement obligations accretion 2.84 3.06 2.64 2.95 2.57 General and administrative expenses 5.79 7.35 6.72 6.53 6.57 (1) MBoe is determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or NGLs (totals may not compute due to rounding). The conversion ratio does not assume price equivalency and the price on an equivalent basis for oil, NGLs and natural gas may differ significantly. The realized prices presented above are volume-weighted for production in the respective period. (In thousands) (Unaudited) June 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 120,723 $ 109,003 Restricted cash 1,552 1,552 Receivables: Oil and natural gas sales 58,175 63,558 Joint interest, net 31,659 25,841 Prepaid expenses and other assets 25,835 18,504 Total current assets 237,944 218,458 Oil and natural gas properties and other, net 674,597 777,741 Restricted deposits for asset retirement obligations 23,087 22,730 Deferred income taxes 56,637 48,808 Other assets 31,561 31,193 Total assets $ 1,023,826 $ 1,098,930 Liabilities and Shareholders' Deficit Current liabilities: Accounts payable $ 87,158 $ 83,625 Accrued liabilities 25,072 33,271 Undistributed oil and natural gas proceeds 53,532 53,131 Advances from joint interest partners 2,430 2,443 Current portion of asset retirement obligations 31,813 46,326 Current portion of long-term debt, net 579 27,288 Total current liabilities 200,584 246,084 Asset retirement obligations 524,980 502,506 Long-term debt, net 349,508 365,935 Other liabilities 17,464 16,182 Commitments and contingencies 34,011 20,800 Shareholders' deficit: Preferred stock — — Common stock 2 2 Additional paid-in capital 599,945 595,407 Retained deficit (678,501) (623,819) Treasury stock (24,167) (24,167) Total shareholders' deficit (102,721) (52,577) Total liabilities and shareholders' deficit $ 1,023,826 $ 1,098,930 (In thousands) (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2025 2025 2024 2025 2024 Operating activities: Net loss $ (20,884) $ (30,577) $ (15,388) $ (51,461) $ (26,862) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation, depletion, amortization and accretion 35,127 41,283 45,074 76,410 86,980 Share-based compensation 2,874 2,087 1,386 4,961 4,418 Amortization of debt issuance costs 740 1,099 1,044 1,839 2,336 Loss on extinguishment of debt — 15,015 — 15,015 — Derivative (gain) loss, net (12,047) 2,757 2,374 (9,290) (2,503) Derivative cash receipts (settlements), net 8,241 (5,326) 2,358 2,915 4,957 Deferred income benefit (2,312) (5,517) (4,324) (7,829) (3,591) Changes in operating assets and liabilities: Accounts receivable 2,041 (1,935) (7,108) 106 (24,470) Prepaid expenses and other current assets 238 547 (6,177) 785 (5,744) Accounts payable, accrued liabilities and other 26,151 (18,858) 26,416 7,293 25,564 Asset retirement obligation settlements (12,207) (3,771) (8,209) (15,978) (11,997) Net cash provided by (used in) operating activities 27,962 (3,196) 37,446 24,766 49,088 Investing activities: Investment in oil and natural gas properties and equipment (10,422) (6,665) (6,576) (17,087) (13,656) Acquisition of property interests (311) (400) (120) (711) (80,635) Proceeds from sale of oil and natural gas properties (19) 11,935 — 11,916 — Insurance proceeds — 58,500 — 58,500 — Purchases of furniture, fixtures and other (11) (103) (73) (114) (97) Net cash (used in) provided by investing activities (10,763) 63,267 (6,769) 52,504 (94,388) Financing activities: Proceeds from issuance of long-term debt — 350,000 — 350,000 — Repayments of long-term debt (275) (384,264) (275) (384,539) (550) Purchase of government securities in connection with legal defeasance of 11.75% Senior Second Lien Notes — (5,889) — (5,889) — Premium payments and debt extinguishment costs — (10,230) — (10,230) — Debt issuance costs (436) (11,042) (93) (11,478) (405) Payment of dividends (1,499) (1,493) (1,485) (2,992) (2,954) Other (199) (223) (271) (422) (754) Net cash used in financing activities (2,409) (63,141) (2,124) (65,550) (4,663) Change in cash, cash equivalents and restricted cash 14,790 (3,070) 28,553 11,720 (49,963) Cash, cash equivalents and restricted cash, beginning of period 107,485 110,555 99,239 110,555 177,755 Cash, cash equivalents and restricted cash, end of period $ 122,275 $ 107,485 $ 127,792 $ 122,275 $ 127,792 W&T OFFSHORE, INC. AND SUBSIDIARIES Non-GAAP Information Certain financial information included in W&T's financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures are 'Net Debt,' 'Adjusted Net Loss,' 'Adjusted EBITDA,' 'Free Cash Flow' and 'PV-10' or are derivable from a combination of these measures. Management uses these non-GAAP financial measures in its analysis of performance. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies. Prior period amounts have been conformed to the methodology and presentation of the current period. We calculate Net Debt as total debt (current and long-term portions), less cash and cash equivalents. Management uses Net Debt to evaluate the Company's financial position, including its ability to service its debt obligations. Reconciliation of Net Loss to Adjusted Net Loss Adjusted Net Loss adjusts for certain items that the Company believes affect comparability of operating results, including items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. These items include loss on extinguishment of debt, unrealized commodity derivative (gain) loss, net, allowance for credit losses, non-recurring legal and IT-related costs, non-ARO P&A costs, and other which are then tax effected using the Federal Statutory Rate. Company management believes that this presentation is relevant and useful because it helps investors to understand the net loss of the Company without the effects of certain non-recurring or unusual expenses and certain income or loss that is not realized by the Company. Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2025 2025 2024 2025 2024 (in thousands) (Unaudited) Net loss $ (20,884) $ (30,577) $ (15,388) $ (51,461) $ (26,862) Loss on extinguishment of debt — 15,015 — 15,015 — Unrealized commodity derivative (gain) loss, net (2,554) (882) 2,738 (3,436) 1,616 Allowance for credit losses 197 155 346 352 430 Non-recurring legal and IT-related costs 48 528 4,202 576 4,960 Non-ARO P&A costs 13,856 (197) 1,709 13,659 7,061 Other (47) (71) 304 (118) 90 Tax effect of selected items (1) (2,415) (3,055) (1,953) (5,470) (2,973) Adjusted net loss $ (11,799) $ (19,084) $ (8,042) $ (30,883) $ (15,678) Adjusted net loss per common share (basic and diluted) $ (0.08) $ (0.13) $ (0.05) $ (0.21) $ (0.11) Weighted average shares outstanding (basic and diluted) 147,847 147,598 146,943 147,723 146,900 (1) Selected items were tax effected with the Federal Statutory Rate of 21% for each respective period. The Company also presents non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow. The Company defines Adjusted EBITDA as net loss plus net interest expense, loss on extinguishment of debt, income tax (benefit) expense, depreciation, depletion and amortization, ARO accretion, excluding the unrealized commodity derivative (gain) loss, allowance for credit losses, non-cash incentive compensation, non-recurring legal and IT-related costs, non-ARO P&A costs, and other. Company management believes this presentation is relevant and useful because it helps investors understand W&T's operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. Adjusted EBITDA, as W&T calculates it, may not be comparable to Adjusted EBITDA measures reported by other companies. In addition, Adjusted EBITDA does not represent funds available for discretionary use. The Company defines Free Cash Flow as Adjusted EBITDA (defined above), less capital expenditures, ARO settlements and net interest expense (all on an accrual basis). For this purpose, the Company's definition of capital expenditures includes costs incurred related to oil and natural gas properties (such as drilling and infrastructure costs and the lease maintenance costs) and equipment but excludes acquisition costs of oil and gas properties from third parties that are not included in the Company's capital expenditures guidance provided to investors. Company management believes that Free Cash Flow is an important financial performance measure for use in evaluating the performance and efficiency of its current operating activities after the impact of accrued capital expenditures, P&A costs and net interest expense and without being impacted by items such as changes associated with working capital, which can vary substantially from one period to another. There is no commonly accepted definition of Free Cash Flow within the industry. Accordingly, Free Cash Flow, as defined and calculated by the Company, may not be comparable to Free Cash Flow or other similarly named non-GAAP measures reported by other companies. While the Company includes net interest expense in the calculation of Free Cash Flow, other mandatory debt service requirements of future payments of principal at maturity (if such debt is not refinanced) are excluded from the calculation of Free Cash Flow. These and other non-discretionary expenditures that are not deducted from Free Cash Flow would reduce cash available for other uses. The following table presents a reconciliation of the Company's net loss income, a GAAP measure, to Adjusted EBITDA and Free Cash Flow, as such terms are defined by the Company: Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2025 2025 2024 2025 2024 (in thousands) (Unaudited) Net loss $ (20,884) $ (30,577) $ (15,388) $ (51,461) $ (26,862) Interest expense, net 9,005 9,492 10,164 18,497 20,236 Loss on extinguishment of debt — 15,015 — 15,015 — Income tax benefit (2,382) (4,615) (4,636) (6,997) (3,591) Depreciation, depletion and amortization 26,446 32,891 36,674 59,337 70,611 Asset retirement obligations accretion 8,681 8,392 8,400 17,073 16,369 Unrealized commodity derivative (gain) loss, net (2,554) (882) 2,738 (3,436) 1,616 Allowance for credit losses 197 155 346 352 430 Non-cash incentive compensation 2,874 2,087 1,386 4,961 4,418 Non-recurring legal and IT-related costs 48 528 4,202 576 4,960 Non-ARO P&A costs 13,856 (197) 1,709 13,659 7,061 Other (47) (71) 304 (118) 90 Adjusted EBITDA $ 35,240 $ 32,218 $ 45,899 $ 67,458 $ 95,338 Capital expenditures, accrual basis (1) $ (10,445) $ (8,472) $ (8,781) $ (18,917) $ (11,937) Asset retirement obligation settlements (12,207) (3,771) (8,209) (15,978) (11,997) Interest expense, net (9,005) (9,492) (10,164) (18,497) (20,236) Free Cash Flow $ 3,583 $ 10,483 $ 18,745 $ 14,066 $ 51,168 (1) A reconciliation of the adjustment used to calculate Free Cash Flow to the Condensed Consolidated Financial Statements is included below: Capital expenditures, accrual basis reconciliation Investment in oil and natural gas properties and equipment $ (10,422) $ (6,665) $ (6,576) $ (17,087) $ (13,656) Less: change in accrual for capital expenditures 23 1,807 2,205 1,830 (1,719) Capital expenditures, accrual basis $ (10,445) $ (8,472) $ (8,781) $ (18,917) $ (11,937) The following table presents a reconciliation of cash flow from operating activities, a GAAP measure, to Free Cash Flow, as defined by the Company: Three Months Ended Six Months June 30, March 31, June 30, June 30, 2025 2025 2024 2025 2024 (in thousands) (Unaudited) Net cash provided by (used in) operating activities $ 27,962 $ (3,196) $ 37,446 $ 24,766 $ 49,088 Allowance for credit losses 197 155 346 352 430 Amortization of debt issuance costs (740) (1,099) (1,044) (1,839) (2,336) Non-recurring legal and IT-related costs 48 528 4,202 576 4,960 Current tax (benefit) expense (1) (70) 902 (312) 832 — Change in derivatives receivable (payable) (1) 1,252 1,687 (1,994) 2,939 (838) Non-ARO P&A costs 13,856 (197) 1,709 13,659 7,061 Changes in operating assets and liabilities, excluding asset retirement obligation settlements (28,430) 20,246 (13,131) (8,184) 4,650 Capital expenditures, accrual basis (10,445) (8,472) (8,781) (18,917) (11,937) Other (47) (71) 304 (118) 90 Free Cash Flow $ 3,583 $ 10,483 $ 18,745 $ 14,066 $ 51,168 (1) A reconciliation of the adjustments used to calculate Free Cash Flow to the Condensed Consolidated Financial Statements is included below: Current tax (benefit) expense: Income tax benefit $ (2,382) $ (4,615) $ (4,636) $ (6,997) $ (3,591) Less: Deferred income benefit (2,312) (5,517) (4,324) (7,829) (3,591) Current tax (benefit) expense: $ (70) $ 902 $ (312) $ 832 $ — Changes in derivatives receivable (payable) Derivatives receivable (payable), end of period $ 1,562 $ 310 $ (567) $ 1,562 $ (567) Derivatives payable (receivable), beginning of period (310) 1,377 (1,427) 1,377 (271) Change in derivatives receivable (payable) $ 1,252 $ 1,687 $ (1,994) $ 2,939 $ (838) The Company also discloses PV-10, which is not a financial measure defined under GAAP. The standardized measure of discounted future net cash flows is the most directly comparable GAAP financial measure for proved reserves calculated using SEC pricing. Company management believes that the non-GAAP financial measure of PV-10 is relevant and useful for evaluating the relative monetary significance of oil and natural gas properties. PV-10 is also used internally when assessing the potential return on investment related to oil and natural gas properties and in evaluating acquisition opportunities. Company management believes that the use of PV-10 is valuable because there are many unique factors that can impact an individual company when estimating the amount of future income taxes to be paid. Additionally, Company management believes that the presentation of PV-10 provides useful information to investors because it is widely used by professional analysts and sophisticated investors in evaluating oil and natural gas companies. PV-10 is not a measure of financial or operating performance under GAAP, nor is it intended to represent the current market value of the Company's estimated oil and natural gas reserves. PV-10 should not be considered in isolation or as substitutes for the standardized measure of discounted future net cash flows as defined under GAAP. Investors should not assume that PV-10 of the Company's proved oil and natural gas reserves represents a current market value of the Company's estimated oil and natural gas reserves. With respect to PV-10 calculated as of an interim date (i.e., other than year-end), it is not practical for the Company to reconcile the PV-10 of its SEC pricing proved reserves as of June 30, 2025 because GAAP does not provide for disclosure of standardized measure on an interim basis.
Globe and Mail
8 minutes ago
- Globe and Mail
Top Research Reports for NextEra Energy, Applied Materials & Petrobras
Monday, August 4, 2025 The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NextEra Energy, Inc. (NEE), Applied Materials, Inc. (AMAT) and Petróleo Brasileiro S.A. - Petrobras (PBR). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today's research reports here >>> Ahead of Wall Street The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning. You can read today's AWS here >>> Pre-markets Back in the Green to Start New Trading Week Today's Featured Research Reports Shares of NextEra Energy have gained +0.2% over the year-to-date period against the Zacks Utility - Electric Power industry's gain of +14.4%. The company's second-quarter earnings and revenues were better than estimates. NextEra Energy continues to expand its operations through organic projects and acquisitions. The company will add more renewable projects to its portfolio and has nearly 30 GW of renewable projects in backlog. Florida's improving economy is boosting its unit, FPL's customer base. NextEra Energy has ample liquidity to meet its debt obligations. The company's consistent investment is helping it to strengthen and expand operations. Yet, due to the nature of NextEra Energy's business, it is subject to complex rules and regulations. Risks in operating nuclear power-based generation units, unfavorable weather conditions and increasing supply costs can adversely impact earnings. (You can read the full research report on NextEra Energy here >>>) Applied Materials' shares have gained +12.4% over the year-to-date period against the Zacks Electronics - Semiconductors industry's gain of +15.7%. The company is benefiting from strength in the Semiconductor Systems, owing to a rebound in the semiconductor industry, particularly in the foundry logic space. Consistent progress in the services is aiding Applied Global Services' performance. Solid momentum in the subscription and display businesses is a plus. Its strength in IoT, Communications, Auto, Power and Sensors (ICAPS) is likely to continue aiding its position in the semiconductor industry. Its diversified portfolio remains its key growth driver. Our model estimate indicates revenues will witness a CAGR of 5.7% through fiscal 2025-2027. However, increasing U.S.-China tensions and export restrictions on semiconductor manufacturing equipment may undermine its near-term growth prospects. Slow memory market recovery and rising operating costs remain other major concerns. (You can read the full research report on Applied Materials here >>>) Shares of Petrobras have gained +1% over the year-to-date period against the Zacks Oil and Gas - Integrated - International industry's gain of +5.9%. The company's state-run oil and natural gas giant Petrobras is riding high on the back of its impressive portfolio, particularly in the country's pre-salt reservoirs. It is the operator in most of these areas and holds interests in them ranging from 20% to 100%. This puts Petrobras in an enviable position to maintain an impressive production growth profile for years to come. Meanwhile, Petrobras is investing in renewable diesel and low-carbon projects, though its energy transition lags behind peers. With significant exposure to the volatile Brazilian real, the company faces currency risk. Having said all of this, Petrobras is still reeling under huge debt burden cannot be overlooked. Being a state-controlled entity, Petrobras also faces political and regulatory uncertainties. As such, Petrobras warrants a cautious stance at the moment. (You can read the full research report on Petrobras here >>>) Other noteworthy reports we are featuring today include Devon Energy Corp. (DVN), CBRE Group, Inc. (CBRE) and Reddit, Inc. (RDDT). Mark Vickery Senior Editor Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read NextEra (NEE) Gains from Renewable Focus, Steady Investment Applied Materials (AMAT) Rides on Strength in AGS Segment Petrobras (PBR) Aided by Brazil's Pre-Salt Oil Reserves Featured Reports High Margin Assets & Cost Management Aid Devon Energy (DVN) Per the Zacks analyst Devon's strong production from its high margins assets and efficient cost management will drive performance over the long run. CBRE Group (CBRE) Aided by Outsourcing Business & Buyouts Per the Zacks Analyst, a healthy outsourcing business, strategic acquisitions and technology investments are likely to drive CBRE Group's growth. However, macroeconomic uncertainties remain a concern. Reddit (RDDT) Rides on Growing User Engagement, AI Features Per the Zacks analyst, Reddit is benefiting from strong growth in user engagement driven by AI-powered features, including Reddit Answers. Robust Public Spending Aids EMCOR (EME), Macro Risks Hurt Per the Zacks analyst, EMCOR is gaining from robust infrastructure spending trends and contributions from acquisitions. However, ongoing macro risks are hurting prospects. Continuous Digitalization Aids SoFi (SOFI), Liquidity Low Per the Zacks Analyst, SoFi is poised for growth due to continuous digitalization in the financial sector, given its focus on online banking and product offerings. Low liquidity is concerning. Lincoln (LNC) rides on Premium Growth, Elevated Expenses Hurt Per the Zacks analyst, Lincoln's growing premium is driven by new products and the enhancement of the existing ones, which keep driving its top line. However, escalating expenses remain a concern. A Solid Product Suite Aids Inogen (INGN) in Stiff Competition The Zacks analyst is upbeat about Inogen's focus on expanding its product portfolio despite its operation in a highly competitive industry. New Upgrades High Rates, Loan Growth Likely to Aid Zions' (ZION) Top Line Per the Zacks analyst, robust loans, a solid balance sheet and relatively higher rates will support Zions top-line growth. Its capital distribution plans seem sustainable, given the earnings strength. Strong Demand & Pricing Actions to Drive Greif (GEF) The Zacks analyst believes that Greif will benefit from its recent pickup in volumes as well as its pricing actions and restructuring activities. Silicon Motion (SIMO) Rides on Solid Demand, Portfolio Strength Per the Zacks analyst, growing demand for memory and storage solutions in industrial, automotive, commercial and consumer verticals will likely drive Silicon Motion's top line. New Downgrades Declining Backlog & Rising SG&A Expenses Ail Thor (THO) Per the Zacks analyst, a decline in backlog is likely to impact Thor's sales. Also, an uptick in SG&A expenses as a percentage of sales is likely to exert pressure on profit margins. Rising Expenses & Stiff Competition Hurt Badger Meter (BMI) Per the Zacks analyst, Badger Meter's expenses surged in the second quarter driven by SmartCover acquisition, which included amortization of intangible assets. Stiff competition is an added concern. Etsy (ETSY) Benefits from Marketplace Strength Amid Higher Costs Per the Zacks analyst, Etsy benefits from accelerating Marketplace revenues driven by Offsite Ads strength. However, rising costs from Offsite Ads shifts & marketing efforts are overhangs. Zacks Names #1 Semiconductor Stock This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Devon Energy Corporation (DVN): Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report CBRE Group, Inc. (CBRE): Free Stock Analysis Report Reddit Inc. (RDDT): Free Stock Analysis Report
Globe and Mail
33 minutes ago
- Globe and Mail
Arteris To Provide FlexGen Smart NoC IP In Next-Generation AMD AI Chiplet Designs
CAMPBELL, Calif., Aug. 04, 2025 (GLOBE NEWSWIRE) -- In a market reshaped by the compute demands of AI, Arteris, Inc. (Nasdaq: AIP), a leading provider of semiconductor system IP for accelerating system-on-chip (SoC) creation, today announced AMD (Nasdaq: AMD), a global leader in high-performance and adaptive computing, has licensed FlexGen network-on-chip (NoC) interconnect IP for its next generation of AI chiplet design. FlexGen, Arteris' smart NoC IP technology, will provide high-performance data transport in AMD chiplets powering AI across the company's broad portfolio which spans from data centers to edge and end devices. The strategic combination and interoperability of Arteris' FlexGen NoC IP with the AMD Infinity Fabric™ interconnect underscores the increasing complexity of modern SoCs and chiplet-based architectures, which now require multiple highly specialized interconnects or NoCs to efficiently meet the demands of modern electronic systems. 'We are excited to collaborate and expand our relationship with AMD, a company recognized globally for its innovation in high performance computing,' said K. Charles Janac, president and CEO of Arteris. 'With modern chiplets each having between 5 and 20 interconnect networks for data transport, our FlexGen NoC IP will work hand in hand with AMD's Infinity Fabric to accelerate the performance and scalability required by today's most demanding and diverse applications. This latest engagement with AMD exemplifies the transformative impact of Arteris' NoC technology in delivering next-generation silicon solutions for a wide range of markets from the data center to the edge.' 'AMD is driving innovations that scale AI from cloud to client by continually developing leadership computing technologies and best-in-class IP,' said Mydung Pham, corporate vice president silicon design engineering at AMD. 'Integrating Arteris' FlexGen NoC IP technology into a range of AMD chiplets, we can automate interconnect configuration and enable seamless connectivity among SoC components while strengthening the best end-to-end AI compute portfolio in the industry.' Arteris is an industry leader in flexible and configurable network-on-chip IP technology. FlexGen, Arteris' latest NoC IP innovation, is specifically designed to make designing SoCs more efficient and to optimize wire length, reduce latency, and improve power efficiency, addressing the communication and performance needs of increasingly complex multi-die and chiplet-based designs. FlexGen can be utilized as an independent interconnect solution or in combination with proprietary interconnect technology to accelerate design iterations and time to market schedules. Arteris continues to revolutionize SoC and chiplet performance with innovative technology. FlexGen smart NoC IP leverages AI automation to enhance design productivity through streamlined iteration cycles, and position companies to address the complexities of today's computing systems while dreaming up what comes next. Learn more at About Arteris Arteris is a global leader in system IP used in semiconductors to accelerate the creation of high-performance, power-efficient silicon. Arteris network-on-chip (NoC) interconnect IP and system-on-chip (SoC) integration automation software are used by the world's top semiconductor and technology companies to improve overall performance, engineering productivity, reduce risk, lower costs, and bring complex designs to market faster. Learn more at © 2004-2025 Arteris, Inc. All rights reserved worldwide. Arteris, Arteris IP, the Arteris IP logo, and the other Arteris marks found at are trademarks or registered trademarks of Arteris, Inc. or its subsidiaries. All other trademarks are the property of their respective owners.
