Market Outlook
PRNewswire | July 10, 2023
Callon Petroleum Company announced that it closed its previously announced acquisition of Delaware Basin assets from Percussion Petroleum Operating II, LLC ("Percussion") and the sale of its Eagle Ford assets to Ridgemar Energy Operating, LLC ("Ridgemar") on July 3, 2023.
"We are excited to announce the completion of another important strategic move for Callon and its shareholders. Through these two transactions, we have created a singular focus on the Permian Basin, reduced our absolute debt position, and kicked off a shareholder return plan," said Joe Gatto, President and CEO. "The bolt-on Percussion transaction improves our Delaware inventory depth and also lowers our cost structure. I would like to thank everyone at Callon, Percussion, and Ridgemar for their efforts to close these transactions."
Financial Impact of Transactions
The consideration paid at closing for the Percussion transaction consisted of $249 million in cash and approximately 6.3 million shares of Callon common stock, subject to customary post-closing adjustments. Callon received $551 million in cash at closing for the sale of its Eagle Ford assets to Ridgemar, subject to customary post-closing adjustments. Both transactions reflect an effective date of January 1, 2023, and exclude transaction expenses.
Stock Repurchase Program
As previously announced, the Board of Directors authorized a two-year, $300 million stock repurchase program in conjunction with the transactions that became effective upon their closing on July 3rd. Callon intends to repurchase its first shares under this program in the third quarter of 2023.
Balance Sheet Update
At closing, Callon's outstanding debt was reduced by approximately $300 million and gross debt is now less than $2.0 billion. Subsequently, Callon submitted a notice of redemption for the $187.2 million of 8.25% Senior Notes maturing July 2025 and expects to complete the redemption in early August. These notes are callable at par and will be funded using the Company's revolving credit facility.
About Callon Petroleum
Callon Petroleum Company is an independent oil and natural gas company focused on the acquisition, exploration and sustainable development of high-quality assets in the Permian Basin in West Texas.
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Raw Materials, Market Outlook
businesswire | August 03, 2023
Origin Materials, Inc. the world’s leading carbon negative materials company with a mission to enable the world’s transition to sustainable materials, and Terphane, part of Tredegar Corporation (NYSE:TG), a global leader in specialty PET polyester films (“BOPET”), announced today a strategic partnership to produce sustainable, high-performance bio-polymer films.
As part of the partnership, Terphane signed a multi-year capacity reservation agreement to purchase the advanced bio-polymer PEF for use in film applications, including food and beverage packaging and high-value industrial applications. BOPEF is biaxially oriented PEF, and BOPET is biaxially oriented PET. These stretched polymer films are valued for their strength, transparency, barrier properties, and electrical insulation.
“We are pleased to partner with Terphane, a trusted global leader in films with expansive customer and partner relationships,” said Rich Riley, Co-CEO of Origin Materials. “We are thrilled to work together to develop advanced, performance-enhanced products that help to enable a net zero material economy. This partnership represents further progress in Origin’s mission to enable the world’s transition to sustainable materials.”
According to Marcos Vieira, global director of R&D for Terphane, “The development of this film will be critical to our efforts to meet this new global demand for sustainable flexible packaging solutions. The film is partially made from PEF and has all the traditional properties of a regular PET film, including post-consumption recycling. In addition, PEF provides an excellent thermal resistance and superior barrier performance, extending the shelf life of the packaged products.” Vieira adds that initial tests in the U.S. proved the material works perfectly in extrusion lines.
Origin Materials’ patented technology platform represents a potential breakthrough in the commercialization of cost-competitive and low-carbon PEF. Made from furandicarboxylic acid (“FDCA”), the primary precursor to PEF, Origin PEF is a polymer with an attractive combination of sustainability and performance characteristics for packaging including enhanced barrier properties. Origin’s PEF is expected to be 100% plant-based, fully recyclable, have attractive unit economics, and to offer a significantly reduced carbon footprint, with superior strength, thermal properties, and barrier properties compared to today’s widely used petroleum-based materials.
About Origin Materials
Headquartered in West Sacramento, Origin Materials is the world's leading carbon negative materials company. Origin’s mission is to enable the world’s transition to sustainable materials. For over a decade, Origin has developed a platform for turning the carbon found in inexpensive, plentiful, non-food biomass such as sustainable wood residues into useful materials while capturing carbon in the process. Origin’s patented technology platform can help revolutionize the production of a wide range of end products, including clothing, textiles, plastics, packaging, car parts, tires, carpeting, toys, fuels, and more with a ~$1 trillion addressable market. In addition, Origin’s technology platform is expected to provide stable pricing largely decoupled from the petroleum supply chain, which is exposed to more volatility than supply chains based on sustainable wood residues. Origin’s patented drop-in core technology, economics and carbon impact are supported by a growing list of major global customers and investors.
About Terphane
Since its founding in 1976, Terphane has developed technologies and processes to produce specialty bioriented polyester films (BOPET). With significant experience and technical knowledge in film production, coating, and metallization, the company is recognized for its vertical integration, from resin to specialty films. Terphane is a global leader in specialty PET films, and a key company in Latin America. Terphane is a subsidiary of U.S.-based Tredegar Corporation (NYSE:TG).
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Chemical Management
businesswire | August 16, 2023
Ingevity Corporation announced it has entered into a renewable product purchase agreement (RPPA) with a subsidiary of NextEra Energy Resources, LLC, to produce offsetting renewable energy to lower Scope 2 emissions related to Ingevity’s United States (U.S.) manufacturing locations.
Ingevity aims to reduce the company’s greenhouse gas (GHG) emissions and be carbon neutral for absolute GHG emissions from manufacturing operations by 2050. Ingevity’s sustainability commitment includes decarbonization through increasing the use of renewable energy in its operations and by collaborating with renewable energy producers like NextEra Energy Resources to increase the amount of renewable energy available in the U.S.
“Ingevity was founded on using renewably-sourced chemistries and materials to purify, protect and enhance,” said Ingevity president and CEO, John Fortson. “Collaborating with NextEra Energy Resources for the development of a solar facility in a location in the U.S. with high electricity demands to create renewably-sourced energy is a natural extension of our sustainability profile and an important element in our effort to achieve carbon neutrality for the benefit of our operations and the industries that rely on our products to advance their own sustainability goals.”
As part of the agreement, Ingevity will receive 85 megawatts of capacity at a new NextEra Energy Resources solar site to be constructed in North Texas. With Ingevity’s commitment to the project and NextEra Energy Resources’ deep expertise in developing and generating renewable energy, the project will contribute a significant source of sustainable energy to Texas.
“We have a history of collaborating with Ingevity to develop customized solutions to help meet their goals,” said Rebecca Kujawa, NextEra Energy Resources president and CEO. “In terms of reducing carbon emissions, a solar project of this scale is equivalent to the electricity needed to power an average of 14,000 homes per year, with the added benefits of generating new jobs and creating economic impacts for Texas and beyond.”
In exchange for Ingevity’s commitment to the project, Ingevity will receive and retire renewable energy credits to offset a significant portion of its Scope 2 emissions from U.S. manufacturing locations and advance the company toward its 2050 target.
NextEra Energy Resources and Ingevity expect the solar facility to be fully operational by the end of 2025.
About NextEra Energy Resources
NextEra Energy Resources, LLC is a clean energy leader and is one of the largest wholesale generators of electric power in the U.S., with approximately 27,400 megawatts of total net generating capacity, primarily in 40 states and Canada as of year-end 2022. NextEra Energy Resources is the world's largest generator of renewable energy from the wind and sun, a world leader in battery storage and is driving the development of the green hydrogen economy. The business operates clean, emissions-free nuclear power generation facilities in New Hampshire and Wisconsin as part of the NextEra Energy nuclear fleet. NextEra Energy Resources offers a wide range of clean energy solutions to help businesses and customers across the country meet their emissions reduction goals. NextEra Energy Resources, LLC is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE).
AboutIngevity: Purify, Protect and Enhance
Ingevity provides products and technologies that purify, protect and enhance the world around us. Through a team of talented and experienced people, we develop, manufacture and bring to market solutions that help customers solve complex problems and make the world more sustainable. We operate in three reporting segments: Performance Chemicals, which includes specialty chemicals and pavement technologies; Advanced Polymer Technologies, which includes biodegradable plastics and polyurethane materials; and Performance Materials, which includes activated carbon. Our products are used in a variety of demanding applications, including adhesives, agrochemicals, asphalt paving, bioplastics, coatings, elastomers, lubricants, pavement markings, publication inks, oil exploration and production and automotive components. Headquartered in North Charleston, South Carolina, Ingevity operates from 31 countries around the world and employs approximately 2,050 people.
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