Page 14 - NorthAmOil Week 30

NorthAmOil
NEWS IN BRIEF
NorthAmOil
Midstream announced today the formation of a strategic joint venture focused on optimizing produced water logistics at scale in the Northern Delaware Basin. e joint venture includes a long-term produced water management agreement between Concho and Solaris Water.
Under the terms of the agreement, Solaris Water will manage Concho’s produced water gathering, transportation, disposal and recycling for an area covering approximately 1.6mn acres located primarily in Eddy County, New Mexico. Concho will contribute 13 salt water disposal wells and approximately 40 miles of large-diameter produced water gathering pipelines in exchange for cash and an equity ownership in Solaris Midstream Holdings, LLC, the parent of Solaris Water.
e assets contributed by Concho will be incorporated into Solaris Water’s growing integrated Pecos Star System, which currently includes more than 300 miles of large- diameter gathering pipelines, more than 500,000 barrels per day of disposal capacity, storage and recycling facilities and water supply pipelines that serve nearly 20 oil
and gas operators. is high-capacity water infrastructure network brings signi cant scale to producers that lowers operating
and well completion costs while providing environmental bene ts such as reduced truck tra c and less reliance on brackish or fresh water supplies. Solaris Water will deliver to Concho blended reuse source water, enabling a signi cant increase in the use of recycled water in Concho’s operations.
CONCHO RESOURCES AND SOLARIS WATER MIDSTREAM, July 31, 2019
Forum Energy Technologies
announces second quarter
2019 results
Forum Energy Technologies today announced second quarter 2019 revenue of $246mn, a decrease of $26mn from the rst quarter 2019. Net loss for the quarter was $14mn, or $0.12 per diluted share, compared to net loss of $8mn, or $0.07 per diluted share, for the rst quarter 2019. Excluding $5mn, or $0.04 per share of special items, adjusted net loss was $0.08 per diluted share in the second quarter 2019 compared to adjusted net loss of $0.04 per diluted share in the rst quarter 2019.
Cris Gaut, chairman and chief executive o cer, remarked: “Our primary focus at
Forum is on generating free cash ow to reduce net debt. Free cash ow was $18mn in the second quarter, a sequential improvement, and the third successive quarter of free
cash ow. Since we changed our strategy to focus on free cash ow in the fourth quarter 2018, we have generated $55mn, resulting
in an annualized yield of over 25% based
on today’s equity market value. As our inventory reduction e orts accelerate, we expect our free cash ow generating ability to increase further. We ended the quarter with approximately $242mn of total liquidity and we expect to use our free cash ow to further reduce debt.”
“Our operating results in the second quarter were in line with the updated guidance we provided last month. Revenue declined $26mn from last quarter as a result of decreased spending by our customers as they sought to lower costs, preserve cash, and exercise capital discipline. We generated $18mn of EBITDA in the second quarter on reduced revenue of $246mn.”
FORUM ENERGY TECHNOLOGIES, July 25, 2019
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Week 30 01•August•2019