Page 15 - NorthAmOil Week 18

NorthAmOil
NEWS IN BRIEF
NorthAmOil
the GP buy-in transaction, at closing, ECP will loan the full $35mn of cash proceeds to SMLP under a first-lien senior secured credit agreement which will bear interest at 8.0% per annum and the principal on which will be paid at maturity on March 31, 2021. SMLP intends to utilise the proceeds of the ECP Loan to enhance its liquidity position and for general corporate purposes. The acquisition will result in a more simplified corporate structure whereby Summit Investments, and all of its subsidiaries, will become wholly owned subsidiaries of SMLP, and SMLP
will be governed by a board consisting of a majority of independent directors.
Summit Investments owns 100% of Summit Midstream Partners Holdings, LLC (SMP Holdings) which owns 100% of Summit Midstream GP, LLC, the general partner of SMLP, 45.3mn SMLP common units, cash on hand, and the $180.75mn deferred purchase price obligation receivable, all of which will remain outstanding as of the closing. SMP Holdings will continue as the borrower under a $158.2mn term loan which matures in May 2022 and is secured by approximately 34.6mn of the SMLP common units owned by SMP Holdings and the GP interest. The acquired entities will be unrestricted subsidiaries under SMLP’s senior notes indentures, and will
not be guarantors or restricted subsidiaries under SMLP’s revolving credit facility. As such, SMLP’s financial performance covenant calculations will not include borrowings under the term loan.
SUMMIT MIDSTREAM PARTNERS, May 03, 2020
DOWNSTREAM
Marathon Petroleum reports first-quarter 2020 results
Marathon Petroleum today reported a net loss of $9.2bn, or $(14.25) per diluted share, for the first quarter of 2020, compared to a loss of $7mn, or $(0.01) per diluted share, for the first quarter of 2019.
First-quarter 2020 results include pre-tax charges of $12.4bn primarily related to non- cash impairments. Details on these and other adjustments are shown in the accompanying release tables. Adjusted net loss was $106mn, or $(0.16) per diluted share, for the first quarter of 2020, compared to an adjusted net loss of $59mn, or $(0.09) per diluted share, for the first quarter of 2019.
“Recent global events, including the COVID-19 pandemic and oil price tensions, have been disruptive to the personal and professional lives of many and significantly
impacted demand for the transportation
fuels we manufacture,” said President and Chief Executive Officer Michael J. Hennigan. “In addressing these challenges, first and foremost, we are focused on the health and safety of our employees, our customers, and the communities where we operate. We are grateful for everyone working on the front lines of this pandemic and are proud to do our part by contributing supplies to those affected by this crisis. These are unprecedented times, leading us to make prudent tactical changes for 2020. We believe these proactive steps will help maintain our financial strength, support our investment-grade credit rating, and enhance the through-cycle resiliency of our business.”
MARATHON PETROLEUM, May 05, 2020
SERVICES
US Silica Holdings
announces first-quarter
2020 results
US Silica Holdings, a diversified industrial minerals company and the leading last-mile logistics provider to the oil and gas industry, today announced first quarter 2020 results, including a net loss of $72.3mn, or $(0.98) per basic and diluted share.
The first quarter results were negatively impacted by $103.9mn or $1.07 per share in goodwill and other asset impairments, $2.2mn or $0.02 per share in costs related to plant startup and expansion, $1.1mn or $0.01 per share in facility closure costs, $0.6mn or $0.01
per share related to merger and acquisition expenses, partly offset by $15.2mn or $0.16 per share in other adjustments, resulting in adjusted EPS for the first quarter of $(0.03) per basic and diluted share.
“I’d like to congratulate my colleagues on delivering a solid first quarter in 2020 while appropriately prioritising personal health
and safety,” said Bryan Shinn, chief executive officer. “Despite the COVID-19 pandemic and energy market headwinds, we experienced minimal operational disruptions during the quarter thanks to the efforts of our team. While we recognise the challenges that lie ahead in our Oil & Gas segment, we are encouraged by the resilience of our Industrial & Specialty Products segment, which delivered double-digit profitability growth in the quarter.”
“Looking ahead, we expect that our diatomaceous earth and specialty clay product lines in particular will continue to perform relatively well, spurred by strong demand for food and beverage filtration media. In our
Oil & Gas segment, we expect that volumes and loads will directionally track completions activity, but, as with the 2015-2016 oilfield downturn, we expect to gain market share this year due to our attractive, low cost offerings,” he added.
“We also remain laser focused on liquidity management and have rapidly aligned our cost structure and capacity with changing customer demand, which we believe will allow us to emerge from this downturn leaner, stronger and well-positioned to capitalise when the inevitable rebound occurs,” he concluded.
US SILICA HOLDINGS, May 01, 2020
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