Image Credit: Jonathan Peterson (Pexels)

Oil and Gas Prices May Continue to Bedevil Drivers and Please Investors

 

Drivers in the U.S. are paying on average 43% more for gasoline than they were one year ago. And near double what they paid in late April 2020. The reasons for the cost increase are more than changes in demand; during the height of pandemic fears, producers made changes that impacted the supply side of cost dynamics. When petroleum-based products become more expensive, their impact can be felt in almost all other products. Understanding the dynamics that impact the finances of most businesses and households helps one understand when prices may ease or if they may progress higher. Meanwhile, investors in this sector are also likely to ask whether they should take some profits or if higher prices are likely.

Fuel costs more than it did a year or two ago, and since the economic pace has been rising, the amount of fuel being consumed has also risen. So not only are consumers and businesses paying more to keep vehicles on the road, but the increased cost per mile is part of the inflated prices on most other goods. Oil prices are a factor in the 40-year highs we’re seeing in consumer prices.

 

Data Source: U.S. Energy Information Administration

 

Background

Over the past year, the unexpected sharp run-up in gasoline prices was propelled by a unique set of market imbalances. These imbalances brought about by the pandemic initially drove the “cost” of a barrel of oil on the futures market below $0.00 per barrel. This is because the pace of production was outstripping the ability to use or store what was being pumped. Remember, at this time, across the developed world, planes stopped flying, fewer people were going to their workplace, and manufacturing slowed significantly. This absence of demand created an excessive inventory glut. For a brief period, storage facilities were near their maximum, some “buyers” were actually paid to contractually agree to own more. This shook a lot of people in the business and investors who never could have imagined this set of circumstances. Managers of some Oil ETFs were scurrying to rewrite prospectuses so they wouldn’t be required to meet outflows by selling at such unfortunate prices. Producers shut a large percentage of their rigs and other production in order to halt the supply problem. Country after country was instituting lockdowns in reaction to the novel coronavirus, and there was no sign that demand would resume soon.

Then demand quickly bounced back. This flipped the imbalance and lack of supply became the driver of prices. With demand far outstripping supply, petroleum prices rose to their highest levels in years.

Where
is the Road Taking Us?

There is a consensus among industry analysts that crude prices could
reach $100 a barrel this year, Bank of America estimates crude prices may rise as high as $120 per barrel from the current price of about $90. This will create more costs for shippers, drivers, airlines, and throughout the economy.

The primary reason for the estimates of higher prices is production hasn’t kept up with the rebound in demand. Despite increased consumption and lower inventories, producers have not fully opened the spigots to the levels they were at only a couple of years ago.

Spending on exploration and production is low, and the number of U.S. rigs active in North America has shrunk considerably. As indicated in the chart below, producing rigs in the U.S. have been increasing steadily for over a year however, the number of active rigs is about 75% of what it was two years ago.

 

Source: Baker Hughes (rig count)

 

The economy has bounced back significantly. Assuming there are no further negative pandemic surprises, there is still a great deal of pent-up economic demand which is expected to pressure prices upward. The unusually cold of the 2021/2022 winter has also added to unexpected consumption.

Take-Away

The International Energy Agency (IEA) and even OPEC find the unexpected demand for oil will likely outstrip production into the summer months. The IEA forecast is for global demand for oil to exceed pre-Covid19 restrictions.

While this may not bode well for many businesses or individual households, it may provide investment opportunities in the energy producers sector for investors or those that are involved directly in commodities futures.

 

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading

Will Crude Break $100?

Energy: Fourth Quarter 2021 Review and Outlook

Uranium and Natural Gas Investments Turn Green in 2023

Contango, ETFs, and Alligators (April 2020)

 

Sources

https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm

https://rigcount.bakerhughes.com/na-rig-count

https://www.wsj.com/articles/the-case-for-100-oil-more-driving-less-drilling-11643247290?mod=article_inline

https://www.cnbc.com/2020/04/23/short-sellers-make-nearly-300-million-betting-against-retail-investors-favorite-oil-fund.html

https://www.wsj.com/articles/omicrons-impact-on-oil-demand-weaker-than-expected-in-late-2021-11642507605?mod=article_inline

 

Stay up to date. Follow us:

  Image Credit: Rodolfo Clix (Pexels)

Additions to the List of What is a Green Investment and What is Not for the EU

 

In early February 2022, the European Commission made a recommendation that could impact energy investors of all flavors, and in all parts of the world. It most directly affects investors in uranium or uranium production, and natural gas and producers. The recommended change is called the
Taxonomy Complementary Climate Delegated Act. This act is a decarbonization agreement, fully written and agreed upon by the College of Commissioners, to be adopted across the EU. Adoption is expected to be agreed upon once translations are available in all EU languages. It would apply beginning 2023, unless a majority of the European Parliament, or 20 of the EU’s 27 countries, veto the act.

 

What is Taxonomy?

For those not familiar, the EU has an investment classification system known as EU Taxonomy, where it ranks “Sustainable Activities.” It strives to set standards and a “common language” and create a clear definition of what is considered “sustainable.”

Investors worldwide follow the EU investment classification system, as it can sway billions in funds from flowing into or out of a sector. All companies, not just energy could be severely impacted by their listing status. The system is closely watched by investors worldwide and could potentially cause movement of billions of euros toward or away from a sector or company.

What Counts as Green? 

The list classifies three types of green investments. First, those that substantially contribute to green goals, an example would be wind or solar farming. Second, those that enable other green activities, electricity storage would fall into this category. Third, are transitional activities that are not considered fully sustainable but have emissions below industry average and do not lock in polluting assets or crowd out greener alternatives.

Transitional Companies

The Taxonomy classifications of investment holdings are used by providers of financial products, including pensions throughout the EU. They must disclose which investments comply with the taxonomy’s criteria. For each investment fund or portfolio, regular disclosure of what percentile of underlying investments complies with the rules is required. This naturally causes investment assets to gravitate toward those businesses and projects that are in line with EU climate/carbon goals. Transitional businesses include companies that are important to fill a gap (though not completely green) as the EU moves from carbon-based fuels to sustainable, the timeline would be slowed if investments in fuel types that have below-average carbon output were not included. It is in this way that fossil fuels like natural gas or those that environmentalists feel mixed about like nuclear energy need to be listed.

The transition status may not cause these companies to eventually fall off the list, even when renewable alternatives are built-out. It’s expected that one or both will still be necessary to even out the intermittency of wind and solar energy production. The two energy sources now listed as transitional can level out intermittency and assist in high power demand situations. As technology now stands, this may not change. A November 2018 Massachusetts Institute of Technology study compared the costs of a range of combinations of energy technologies to meet a requirement of zero-carbon emissions. Using conservative cost projections, the lowest-cost combination was not renewables plus storage, but renewables and nuclear, with about half the energy coming from nuclear.

Take-Away

There are billions in investments flowing toward businesses that demonstrate that they are at net-zero carbon or somehow benefit the planet on the road toward that goal. For most of the world’s investment markets, there is not an agreed-upon list of firms that harm, help, or are neutral. The EU has created a methodology for investors to follow, with a requirement that professional investors disclose their portfolio make-up.

The impact outside of the EU is that other financial markets may use EU Taxonomy as a standard or template to create their own. Also, the planet is finite; what happens to the price or demand of a resource on one continent likely impacts the resource’s price or demand in faraway places.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading

Will Uranium, Natural Gas, and Coal be Severely Impacted by EU Taxonomy

ESG Growing Pains Include Greenwashing

Investor Information on Three Segments of the Uranium Energy Sector

Is Uranium Going to Keep Going Up?

 

Sources

https://www.powermag.com/we-need-nuclear-energy-as-part-of-the-energy-transition/

https://ec.europa.eu/info/publications/220202-sustainable-finance-taxonomy-complementary-climate-delegated-act_en

https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_712

 

Stay up to date. Follow us:

Thursday, February 03, 2022

Flotek Industries (FTK)
Partnership provides growth, adds an investment partner, and improves the financial position

Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. Flotek Industries, Inc. is a technology-driven, specialty chemistry and data company that helps customers across industrial, commercial and consumer markets improve their Environmental, Social and Governance performance. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality cleaning, disinfecting and sanitizing products for commercial, governmental and personal consumer use. Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and green chemistry technologies. Flotek serves downstream, midstream and upstream customers, both domestic and international. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit Flotek’s web site at www.flotekind.com.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Flotek and ProFrac enter into a three-year agreement to integrate operations. ProFrac, the largest private provider of hydraulic fracturing services, commits to use Flotek chemistry solutions in part of its operations in exchange for $10 million in convertible notes. ProFrac will also participate in a PIPE sale of notes. See Flotek press release for details.


The agreement provides growth and stability — view it as a sales agreement.  The agreement creates a backlog of $230 million and should more than double sales, while providing stability. We believe the agreement could ultimately be extended and lead to others …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Thursday, February 03, 2022

Flotek Industries (FTK)
Partnership provides growth, adds an investment partner, and improves the financial position

Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. Flotek Industries, Inc. is a technology-driven, specialty chemistry and data company that helps customers across industrial, commercial and consumer markets improve their Environmental, Social and Governance performance. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality cleaning, disinfecting and sanitizing products for commercial, governmental and personal consumer use. Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and green chemistry technologies. Flotek serves downstream, midstream and upstream customers, both domestic and international. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit Flotek’s web site at www.flotekind.com.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Flotek and ProFrac enter into a three-year agreement to integrate operations. ProFrac, the largest private provider of hydraulic fracturing services, commits to use Flotek chemistry solutions in part of its operations in exchange for $10 million in convertible notes. ProFrac will also participate in a PIPE sale of notes. See Flotek press release for details.


The agreement provides growth and stability — view it as a sales agreement.  The agreement creates a backlog of $230 million and should more than double sales, while providing stability. We believe the agreement could ultimately be extended and lead to others …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Flotek and Profac Team Up to Provide Sustainable, Vertically Integrated Solutions

Research, News, and Market Data on Flotek Industries

 

Innovative Multi-Year Partnership Creates Compelling Offering to Improve Operators’ ESG and Operational Performance

HOUSTON AND WILLOW PARK, TX – February 2, 2022 – Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK), a leader in technology-driven, specialty green chemistry solutions, announced today it has entered into a long-term agreement with ProFrac Services, LLC (“ProFrac”), the largest private North American provider of hydraulic fracturing services, to provide its full portfolio of sustainable chemistry solutions to a dedicated portion of ProFrac’s hydraulic fracturing fleets.

The partnership creates a compelling, vertically integrated solution to enable E&Ps to more sustainably develop natural resources, while reducing the total cost of ownership. The agreement leverages ProFrac’s leading market position and new technologies that significantly reduce greenhouse gas (“GHG”) emissions and increase efficiency with Flotek’s green chemistries that reduce the environmental impact of energy by increasing customers’ operational and ESG performance beyond existing sustainability practices.

Under the terms of the contract, Flotek will provide full downhole chemistry solutions for a required minimum number of fleets for three years. This creates an immediate expected contracted backlog of revenue greater than $230 million, based on estimated chemical volumes and pricing, and is anticipated to represent annual recurring revenue in contrast to traditionally transactional purchases.

Key Contractual Highlights:

• Scope: Full downhole chemistry for the greater of 33% of ProFrac’s crews or 10 crews as a minimum
• Duration: Three years
• Protections: Flotek will receive 25% of the difference between the committed volumes and the shortfall should the defined scope not be achieved

In exchange for entry into the multi-year revenue commitment, ProFrac will receive $10 million initial principal amount of notes that are convertible into Flotek common stock (as described below). In addition, ProFrac will be permitted to designate up to two new directors to Flotek’s board of directors. Simultaneously, Flotek entered into a Private Investment in Public Equity (PIPE) transaction with a consortium of investors to secure growth capital for the Company. Pursuant to the PIPE transaction, Flotek will issue $21.2 million aggregate initial principal amount of convertible notes for net cash proceeds of approximately $19 million. The investors are ProFrac Holdings, LLC, Burlington Ventures Ltd., entities associated with North Sound Management, certain funds associated with one of Flotek’s directors including the D3 Family Fund and the D3 Bulldog Fund, and Firestorm Capital LLC. The notes issued to ProFrac and in the PIPE transaction accrue paid-in-kind interest at a rate of 10% per annum, have a maturity of one year, and are converted into common stock of Flotek (a) at the holder’s option at any time prior to maturity, at a price of $1.088125 per share, (b) at Flotek’s option, if the volume-weighted average trading price of Flotek’s common stock equals or exceeds $2.50 for 20 trading days during a 30 consecutive trading day period, or (c) at maturity, at a price of $0.8705.

John W. Gibson, Jr., Chairman, President, and Chief Executive Officer of Flotek stated: “We are excited to establish this long-term strategic partnership with ProFrac. We believe the relationship creates a compelling ESG solution for the industry and delivers long-term mutual benefit for both companies’ customers. Together, we have the opportunity to reduce emissions and establish green chemistry solutions, thereby protecting air, land and water. This transformative agreement creates a comprehensive completions solution merging operational efficiency congruent with ESG objectives.”

Matt Wilks, President and CFO of ProFrac stated: “Flotek is a great company that we’re privileged to work with. We believe this transaction presents a unique opportunity to create mutual value as we each expand.” Ryan Ezell, Ph.D, President of Flotek’s Chemistry Technologies segment, said: “Our innovative partnership with ProFrac will deliver differentiated performance for operators, while reducing the total cost of ownership and environmental risk. We are honored to collaborate with an established industry leader, furthering our strategy to rebuild our indirect channels to market with service companies, significantly accelerating our revenue growth and the industries adoption of ESG principles.” Piper Sandler is serving as the exclusive financial advisor to Flotek.

About Flotek Industries, Inc.

Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek’s Chemistry Technologies segment provides sustainable, optimized chemistry solutions that maximize our customer’s value by elevating their ESG performance, lowering operational costs, and delivering improved return on invested capital. The Company’s proprietary green chemistries, specialty chemistries, logistics, and technology services enable its customers to pursue improved efficiencies and performance throughout the life cycle of its desired chemical applications program. Major integrated oil and gas companies, oilfield services companies, independent oil and gas companies, national and state-owned oil companies, geothermal energy companies, solar energy companies and advanced alternative energy companies benefit from best-in-class technology, field operations, and continuous improvement exercises that go beyond existing sustainability practices. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit www.flotekind.com.

About ProFrac Holding Corp

ProFrac is a growth-oriented, vertically integrated and innovation-driven energy services company providing hydraulic fracturing, completion services and other complementary products and services to leading upstream oil and gas companies engaged in the exploration and production (“E&P”) of North American unconventional oil and natural gas resources. Founded in 2016, ProFrac was built to be the go-to service provider for E&P companies’ most demanding hydraulic fracturing needs. ProFrac is focused on employing new technologies to significantly reduce “greenhouse gas” (“GHG”) emissions and increase efficiency in what has historically been an emissions-intensive component of the unconventional E&P development process. For more information, please visit https://profrac.com/.

Forward-Looking Statements

Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of tile Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward-looking statements in this press release reflect the good faith judgment of management. such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward -looking statements, which speak only as of the dale of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect, any event or circumstance that may arise after the date of this press release.

###

Inquiries, contact:

Investor Relations

E: ir@flotekind.com

P: (713) 726-5322

Flotek and Profac Team Up to Provide Sustainable, Vertically Integrated Solutions

Research, News, and Market Data on Flotek Industries

 

Innovative Multi-Year Partnership Creates Compelling Offering to Improve Operators’ ESG and Operational Performance

HOUSTON AND WILLOW PARK, TX – February 2, 2022 – Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK), a leader in technology-driven, specialty green chemistry solutions, announced today it has entered into a long-term agreement with ProFrac Services, LLC (“ProFrac”), the largest private North American provider of hydraulic fracturing services, to provide its full portfolio of sustainable chemistry solutions to a dedicated portion of ProFrac’s hydraulic fracturing fleets.

The partnership creates a compelling, vertically integrated solution to enable E&Ps to more sustainably develop natural resources, while reducing the total cost of ownership. The agreement leverages ProFrac’s leading market position and new technologies that significantly reduce greenhouse gas (“GHG”) emissions and increase efficiency with Flotek’s green chemistries that reduce the environmental impact of energy by increasing customers’ operational and ESG performance beyond existing sustainability practices.

Under the terms of the contract, Flotek will provide full downhole chemistry solutions for a required minimum number of fleets for three years. This creates an immediate expected contracted backlog of revenue greater than $230 million, based on estimated chemical volumes and pricing, and is anticipated to represent annual recurring revenue in contrast to traditionally transactional purchases.

Key Contractual Highlights:

• Scope: Full downhole chemistry for the greater of 33% of ProFrac’s crews or 10 crews as a minimum
• Duration: Three years
• Protections: Flotek will receive 25% of the difference between the committed volumes and the shortfall should the defined scope not be achieved

In exchange for entry into the multi-year revenue commitment, ProFrac will receive $10 million initial principal amount of notes that are convertible into Flotek common stock (as described below). In addition, ProFrac will be permitted to designate up to two new directors to Flotek’s board of directors. Simultaneously, Flotek entered into a Private Investment in Public Equity (PIPE) transaction with a consortium of investors to secure growth capital for the Company. Pursuant to the PIPE transaction, Flotek will issue $21.2 million aggregate initial principal amount of convertible notes for net cash proceeds of approximately $19 million. The investors are ProFrac Holdings, LLC, Burlington Ventures Ltd., entities associated with North Sound Management, certain funds associated with one of Flotek’s directors including the D3 Family Fund and the D3 Bulldog Fund, and Firestorm Capital LLC. The notes issued to ProFrac and in the PIPE transaction accrue paid-in-kind interest at a rate of 10% per annum, have a maturity of one year, and are converted into common stock of Flotek (a) at the holder’s option at any time prior to maturity, at a price of $1.088125 per share, (b) at Flotek’s option, if the volume-weighted average trading price of Flotek’s common stock equals or exceeds $2.50 for 20 trading days during a 30 consecutive trading day period, or (c) at maturity, at a price of $0.8705.

John W. Gibson, Jr., Chairman, President, and Chief Executive Officer of Flotek stated: “We are excited to establish this long-term strategic partnership with ProFrac. We believe the relationship creates a compelling ESG solution for the industry and delivers long-term mutual benefit for both companies’ customers. Together, we have the opportunity to reduce emissions and establish green chemistry solutions, thereby protecting air, land and water. This transformative agreement creates a comprehensive completions solution merging operational efficiency congruent with ESG objectives.”

Matt Wilks, President and CFO of ProFrac stated: “Flotek is a great company that we’re privileged to work with. We believe this transaction presents a unique opportunity to create mutual value as we each expand.” Ryan Ezell, Ph.D, President of Flotek’s Chemistry Technologies segment, said: “Our innovative partnership with ProFrac will deliver differentiated performance for operators, while reducing the total cost of ownership and environmental risk. We are honored to collaborate with an established industry leader, furthering our strategy to rebuild our indirect channels to market with service companies, significantly accelerating our revenue growth and the industries adoption of ESG principles.” Piper Sandler is serving as the exclusive financial advisor to Flotek.

About Flotek Industries, Inc.

Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek’s Chemistry Technologies segment provides sustainable, optimized chemistry solutions that maximize our customer’s value by elevating their ESG performance, lowering operational costs, and delivering improved return on invested capital. The Company’s proprietary green chemistries, specialty chemistries, logistics, and technology services enable its customers to pursue improved efficiencies and performance throughout the life cycle of its desired chemical applications program. Major integrated oil and gas companies, oilfield services companies, independent oil and gas companies, national and state-owned oil companies, geothermal energy companies, solar energy companies and advanced alternative energy companies benefit from best-in-class technology, field operations, and continuous improvement exercises that go beyond existing sustainability practices. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit www.flotekind.com.

About ProFrac Holding Corp

ProFrac is a growth-oriented, vertically integrated and innovation-driven energy services company providing hydraulic fracturing, completion services and other complementary products and services to leading upstream oil and gas companies engaged in the exploration and production (“E&P”) of North American unconventional oil and natural gas resources. Founded in 2016, ProFrac was built to be the go-to service provider for E&P companies’ most demanding hydraulic fracturing needs. ProFrac is focused on employing new technologies to significantly reduce “greenhouse gas” (“GHG”) emissions and increase efficiency in what has historically been an emissions-intensive component of the unconventional E&P development process. For more information, please visit https://profrac.com/.

Forward-Looking Statements

Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of tile Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward-looking statements in this press release reflect the good faith judgment of management. such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward -looking statements, which speak only as of the dale of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect, any event or circumstance that may arise after the date of this press release.

###

Inquiries, contact:

Investor Relations

E: ir@flotekind.com

P: (713) 726-5322

Tuesday, February 01, 2022

Gevo (GEVO)
RNG Plant On Track and Authorized Share Increase Approved

Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

RNG plant start up on track. Construction of the renewable natural gas (RNG) in NW Iowa is complete and the plant is operating. Annual distributions in the $9-$16 million range should start in late 2022/early 2023 depending on the timing of approvals under the California Air Resources Board (CARB) Low Carbon Fuels Standards (LCFS). RNG will be sold to BP who will market it into the California market through an alternative fuels distributor. In addition, the seasoning of the RNG plant should allow the special purpose bonds that funded the construction of the RNG plant to be move off the balance sheet next year.


Authorized Share Expansion approved.  At the January 27th special meeting, shareholders preliminarily approved an increase in authorized shares from 250 million shares to 500 million shares. Final results should be announced later this week. We estimate that ~202 million shares are outstanding and 14 million are reserved under stock/option plans so ~284 million shares should be available for …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

 

Capstone Green Energy (NASDAQ: CGRN) to Announce Its Third Quarter Fiscal Year 2022 Financial Results on Thursday, February 10, 2022

Research, News, and Market Data on Capstone Green Energy

 

VAN NUYS, Calif.–(BUSINESS WIRE)– Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN), a global leader in carbon reduction and on-site resilient green energy solutions, announced today that on Thursday, February 10, 2022, after market close, it expects to release full financial results for its third quarter of fiscal year 2022, ended December 31, 2021. Later that same day, at 1:45 p.m. Pacific Time (4:45 p.m. Eastern Time), Capstone will host a live webcast to discuss those results.

At the end of the conference call, Capstone will host a question-and-answer session to provide an opportunity for financial analysts to ask questions. Investors and interested individuals are invited to listen to the webcast by logging on to the Company’s investor relations webpage at www.capstonegreenenergy.com. A replay of the webcast will be available on the site for 30 days.

About Capstone Green Energy

Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Generation Technologies (EGT) are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Solutions (ESS) business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen & Sustainable Products (H&S), Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

For more information about the Company, please visit: www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com

Source: Capstone Green Energy Corporation

Gevo Begins Startup of Its Renewable Natural Gas Project in Northwest Iowa on Schedule

Research, News, and Market Data on Gevo

 

ENGLEWOOD, Colo., Jan. 31, 2022 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) is pleased to announce today that it has begun the process of bringing its wholly owned dairy manure-based renewable natural gas (“RNG”) project online. Located in northwest Iowa, the project is known as Gevo NW Iowa RNG, LLC (“NW Iowa RNG”), and it is expected to produce approximately 355,000 MMBtu of RNG per year.

“We’re excited to get NW Iowa RNG online, right on schedule,” says Dr. Chris Ryan, president and COO of Gevo, Inc. “Our team here has done a terrific job, creating a facility that will become an example of how renewable energy can work for years to come, and we’re excited to bring our partnership with area farmers to the next stage.”

NW Iowa RNG fits in with Gevo’s business model of exploring ways to use renewable carbon to make the most of energy opportunities by dialing in sustainability and optimizing renewable resources. Because dairy manure left in lagoons and used as fertilizer releases high levels of methane to the atmosphere, there is an opportunity to capture that methane as biogas and refine it to be used as renewable natural gas. Doing so has no impact of the fertilizer and nutrients available, yet creates more options to sustainably manage fertilizers for sustainable farming practices. That kind of smart thinking and waste reduction is a cornerstone of the circular economy at the core of Gevo’s business model.

As Gevo reported in August 2021 , the RNG is expected to be sold into the California market under dispensing agreements BP has in place with Clean Energy Fuels Corp., the largest fueling infrastructure in the U.S. for RNG. The facility is expected to lead to $9 million to $16 million a year of distributions from the project expected to begin in late 2022, or early 2023 depending on the timing of the California Air Resources Board’s (CARB) Low Carbon Fuel Standard (LCFS). It is anticipated that NW Iowa RNG will benefit from environmental product revenues under California’s LCFS program and the U.S. Environmental Protection Agency’s Renewable Fuel Standard program. RNG-fueled vehicles are estimated to result in up to 95 percent lower emissions than those fueled by gasoline or diesel on a lifecycle basis, according to a US Department of Energy study .

“The farmers have demonstrated that they are willing to try something new,” Ryan says. “By creating a renewable energy source that reduces the greenhouse gas footprint of agriculture while providing meaningful renewable energy where its badly needed—that kind of foresight will make a difference in the long term far beyond Northwest Iowa.”

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their life cycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low-carbon products such as gasoline components, jet fuel and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters including, without limitation, the development and construction of the NW Iowa RNG project, the ability of Gevo to realize production of RNG with NW Iowa RNG, Gevo’s ability to generate cash from NW Iowa RNG, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Gevo Investor and Media Contact

Heather L. Manuel

+1 720-418-0085

IR@gevo.com

Gevo Begins Startup of Its Renewable Natural Gas Project in Northwest Iowa on Schedule

Research, News, and Market Data on Gevo

 

ENGLEWOOD, Colo., Jan. 31, 2022 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) is pleased to announce today that it has begun the process of bringing its wholly owned dairy manure-based renewable natural gas (“RNG”) project online. Located in northwest Iowa, the project is known as Gevo NW Iowa RNG, LLC (“NW Iowa RNG”), and it is expected to produce approximately 355,000 MMBtu of RNG per year.

“We’re excited to get NW Iowa RNG online, right on schedule,” says Dr. Chris Ryan, president and COO of Gevo, Inc. “Our team here has done a terrific job, creating a facility that will become an example of how renewable energy can work for years to come, and we’re excited to bring our partnership with area farmers to the next stage.”

NW Iowa RNG fits in with Gevo’s business model of exploring ways to use renewable carbon to make the most of energy opportunities by dialing in sustainability and optimizing renewable resources. Because dairy manure left in lagoons and used as fertilizer releases high levels of methane to the atmosphere, there is an opportunity to capture that methane as biogas and refine it to be used as renewable natural gas. Doing so has no impact of the fertilizer and nutrients available, yet creates more options to sustainably manage fertilizers for sustainable farming practices. That kind of smart thinking and waste reduction is a cornerstone of the circular economy at the core of Gevo’s business model.

As Gevo reported in August 2021 , the RNG is expected to be sold into the California market under dispensing agreements BP has in place with Clean Energy Fuels Corp., the largest fueling infrastructure in the U.S. for RNG. The facility is expected to lead to $9 million to $16 million a year of distributions from the project expected to begin in late 2022, or early 2023 depending on the timing of the California Air Resources Board’s (CARB) Low Carbon Fuel Standard (LCFS). It is anticipated that NW Iowa RNG will benefit from environmental product revenues under California’s LCFS program and the U.S. Environmental Protection Agency’s Renewable Fuel Standard program. RNG-fueled vehicles are estimated to result in up to 95 percent lower emissions than those fueled by gasoline or diesel on a lifecycle basis, according to a US Department of Energy study .

“The farmers have demonstrated that they are willing to try something new,” Ryan says. “By creating a renewable energy source that reduces the greenhouse gas footprint of agriculture while providing meaningful renewable energy where its badly needed—that kind of foresight will make a difference in the long term far beyond Northwest Iowa.”

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their life cycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low-carbon products such as gasoline components, jet fuel and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters including, without limitation, the development and construction of the NW Iowa RNG project, the ability of Gevo to realize production of RNG with NW Iowa RNG, Gevo’s ability to generate cash from NW Iowa RNG, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Gevo Investor and Media Contact

Heather L. Manuel

+1 720-418-0085

IR@gevo.com

 

Capstone Green Energy (NASDAQ: CGRN) to Announce Its Third Quarter Fiscal Year 2022 Financial Results on Thursday, February 10, 2022

Research, News, and Market Data on Capstone Green Energy

 

VAN NUYS, Calif.–(BUSINESS WIRE)– Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN), a global leader in carbon reduction and on-site resilient green energy solutions, announced today that on Thursday, February 10, 2022, after market close, it expects to release full financial results for its third quarter of fiscal year 2022, ended December 31, 2021. Later that same day, at 1:45 p.m. Pacific Time (4:45 p.m. Eastern Time), Capstone will host a live webcast to discuss those results.

At the end of the conference call, Capstone will host a question-and-answer session to provide an opportunity for financial analysts to ask questions. Investors and interested individuals are invited to listen to the webcast by logging on to the Company’s investor relations webpage at www.capstonegreenenergy.com. A replay of the webcast will be available on the site for 30 days.

About Capstone Green Energy

Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Generation Technologies (EGT) are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Solutions (ESS) business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen & Sustainable Products (H&S), Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

For more information about the Company, please visit: www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com

Source: Capstone Green Energy Corporation

 

Capstone Green Energy Continues to Expand Its EaaS Business With New 10-Year 1.2 MW Parts & Labor Service Contract in Eastern Europe

Research, News, and Market Data on Capstone Green Energy

 

VAN NUYS, Calif.–(BUSINESS WIRE)– Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN) (“Capstone,” the “Company,” “we” or “us”), a global leader in carbon reduction and on-site resilient green energy as a service (EaaS) solutions, announced today that Servelect (www.servelect.ro/en/), Capstone’s exclusive distributor for Romania, entered into a new 10-year Parts and Labor Factory Protection Plan (FPP) service contract for two Capstone Signature Series C600S natural gas-fueled systems installed in Eastern Europe.

“Capstone continues to focus on expanding our EaaS business, including our innovative FPP service program, as extended service agreements generate higher margin rates than traditional product sales,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. “Our FPP service business in conjunction with our long-term rental fleet are the cornerstones of our EaaS business, which we believe to be key to achieving our profitability goals,” added Mr. Jamison.

The two Capstone Signature Series C600S units, generating 1.2 megawatts (MWs) of power, are owned and operated by Cemacon, Romania’s largest ceramic block producer, which was founded in 1969 in Zalau, Romania, and has since expanded to lead that market in Transylvania. Cemacon has a proud history of innovation and a belief in environmentally sound processes, having developed an eco-friendly ceramic production line in which the Capstone C600S units play a key role in the drying process. With a capacity of 2.25 MW thermal, the high-efficiency cogeneration plant commissioned in August 2021 operates the two C600S units on natural gas with an optimized total net efficiency of 95%. Cemacon’s Reccea plant is located five hours from Bucharest and operates in grid connect mode supporting the plant’s power requirements and exporting approximately 400 kilowatts (kW) of excess power to the local grid.

“For this industry, the installation signals a progressive approach with the significantly reduced emissions, improved environmental footprint, and high net efficiency,” stated Tracy Chidbachian, Capstone’s Director of Customer Service. “We are meeting the customer’s operational needs for a secure and stable drying process and doing so in an environmentally responsible manner while providing the customer significant financial savings,” concluded Ms. Chidbachian.

The Capstone Green Energy parts and labor FPP is designed to provide ten years of comprehensive maintenance, giving the end-use customer financial peace of mind and protecting the installation from potentially costly unscheduled maintenance.

About Capstone Green Energy

Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three fiscal years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

For more information about the Company, please visit: www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Cautionary Note Regarding Forward-Looking Statements

This release contains, and the Company’s presentation and responses to questions at the Water Tower Research Virtual Fireside Chat Series will contain, forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding achievement of profitability goals, expectations for green initiatives, execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.

Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com

Source: Capstone Green Energy Corporation

 

Capstone Green Energy Continues to Expand Its EaaS Business With New 10-Year 1.2 MW Parts & Labor Service Contract in Eastern Europe

Research, News, and Market Data on Capstone Green Energy

 

VAN NUYS, Calif.–(BUSINESS WIRE)– Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN) (“Capstone,” the “Company,” “we” or “us”), a global leader in carbon reduction and on-site resilient green energy as a service (EaaS) solutions, announced today that Servelect (www.servelect.ro/en/), Capstone’s exclusive distributor for Romania, entered into a new 10-year Parts and Labor Factory Protection Plan (FPP) service contract for two Capstone Signature Series C600S natural gas-fueled systems installed in Eastern Europe.

“Capstone continues to focus on expanding our EaaS business, including our innovative FPP service program, as extended service agreements generate higher margin rates than traditional product sales,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. “Our FPP service business in conjunction with our long-term rental fleet are the cornerstones of our EaaS business, which we believe to be key to achieving our profitability goals,” added Mr. Jamison.

The two Capstone Signature Series C600S units, generating 1.2 megawatts (MWs) of power, are owned and operated by Cemacon, Romania’s largest ceramic block producer, which was founded in 1969 in Zalau, Romania, and has since expanded to lead that market in Transylvania. Cemacon has a proud history of innovation and a belief in environmentally sound processes, having developed an eco-friendly ceramic production line in which the Capstone C600S units play a key role in the drying process. With a capacity of 2.25 MW thermal, the high-efficiency cogeneration plant commissioned in August 2021 operates the two C600S units on natural gas with an optimized total net efficiency of 95%. Cemacon’s Reccea plant is located five hours from Bucharest and operates in grid connect mode supporting the plant’s power requirements and exporting approximately 400 kilowatts (kW) of excess power to the local grid.

“For this industry, the installation signals a progressive approach with the significantly reduced emissions, improved environmental footprint, and high net efficiency,” stated Tracy Chidbachian, Capstone’s Director of Customer Service. “We are meeting the customer’s operational needs for a secure and stable drying process and doing so in an environmentally responsible manner while providing the customer significant financial savings,” concluded Ms. Chidbachian.

The Capstone Green Energy parts and labor FPP is designed to provide ten years of comprehensive maintenance, giving the end-use customer financial peace of mind and protecting the installation from potentially costly unscheduled maintenance.

About Capstone Green Energy

Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three fiscal years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

For more information about the Company, please visit: www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Cautionary Note Regarding Forward-Looking Statements

This release contains, and the Company’s presentation and responses to questions at the Water Tower Research Virtual Fireside Chat Series will contain, forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding achievement of profitability goals, expectations for green initiatives, execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.

Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com

Source: Capstone Green Energy Corporation