Evolve Transition Infrastructure Announces Completion of Upstream Asset Divestitures and Provides Business Update Focused on...
May 04 2021 - 4:15PM
Evolve Transition Infrastructure LP (NYSE American: SNMP) (“Evolve”
or the “Partnership”) announced today that it has completed the
sale of a majority of its remaining upstream assets.
The Partnership announced that on April 30,
2021, SEP Holdings IV, LLC, a wholly-owned subsidiary of the
Partnership (“SEP IV”), entered into purchase agreements with two
different buyers pursuant to which SEP IV agreed to sell wellbores
and other associated assets located in Gonzales, Dewitt, Dimmit and
Zavala Counties in South Texas, to such buyers for total
consideration of approximately $14.4 million. The majority of the
sales contemplated by the purchase agreements closed simultaneously
with the execution of such purchase agreements and the net proceeds
were utilized, in addition to cash on hand, to reduce Evolve’s debt
outstanding to approximately $88 million. Upon the closing of the
transactions, expected in the second quarter of 2021, the
Partnership will have substantially exited the upstream
business.
The upstream asset divestitures are reflective
of Evolve’s previously announced business strategy shift to focus
on the acquisition and development of infrastructure critical to
the transition of energy supply to lower carbon sources, including
sustainable aviation fuel, renewable diesel, and renewable natural
gas. The transactions announced will provide capacity for Evolve’s
management team to continue to implement the new energy transition
infrastructure business, and also reflective of the Partnership’s
successful execution on previously announced debt reduction
initiatives. Since December 31, 2019, the Partnership has reduced
its debt outstanding by $62.0 million, or 41 percent. Since
December 31, 2020, the Partnership has made principal payments
totaling $23.0 million.
On May 4, 2021, the Partnership also announced
that on April 29, 2021, it received notice from NYSE American LLC
(“NYSE American”) that the Partnership was not in compliance with
the continued listing standards set forth in
Section 1003(a)(ii) of the NYSE American Company Guide (the
“Company Guide”). Section 1003(a)(ii) applies if a listed company
has unitholders’ equity of less than U.S. $4.0 million and has
reported losses from continuing operations and/or net losses in
three of its four most recent fiscal years. The Partnership can
regain compliance under Section 1003(a)(ii) of the Company
Guide, as well as under Section 1003(a)(i), as previously
disclosed, under the compliance plan approved by NYSE American on
June 25, 2020, which granted the Partnership an extension for its
continued listing until October 3, 2021. The Partnership is
not required to submit an additional plan to NYSE American with
respect to Section 1003(a)(ii) and receipt of the notice does
not affect the Partnership’s business, operations, financial or
liquidity condition, or reporting requirements with the Securities
and Exchange Commission.
FORWARD-LOOKING STATEMENTS This
press release contains, and the officers and representatives of the
Partnership and its general partner may from time to time make,
statements that are considered “forward–looking statements” as
defined by the SEC. These forward-looking statements are subject to
a number of risks and uncertainties, many of which are beyond our
control, which may include statements about our business strategy;
our ability to successfully implement our new energy transition
infrastructure business; the ability of our customers to meet their
drilling and development plans on a timely basis, or at all, and
perform under gathering, processing and other agreements; our
financing strategy; our acquisition strategy; our ability to make
distributions; our future operating results; the ability of our
partners to perform under our joint ventures; our future capital
expenditures; and our plans, objectives, expectations, forecasts,
outlook and intentions. All of these types of statements, other
than statements of historical fact included in this press release,
are forward-looking statements. In some cases, forward-looking
statements can be identified by terminology such as “may,” “could,”
“should,” “expect,” “plan,” “project,” “intend,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” “pursue,” “target,”
“continue,” the negative of such terms or other comparable
terminology.
The forward-looking statements contained in this
press release are largely based on our expectations, which reflect
estimates and assumptions made by the management of our general
partner. These estimates and assumptions reflect our best judgment
based on currently known market conditions and other factors.
Although we believe such estimates and assumptions to be
reasonable, they are inherently uncertain and involve a number of
risks and uncertainties that are beyond our control. In addition,
management’s assumptions about future events may prove to be
inaccurate. Management cautions all readers that the
forward-looking statements contained in this press release are not
guarantees of future performance, and we cannot assure any reader
that such statements will be realized or the forward-looking events
and circumstances will occur. Actual results may differ materially
from those anticipated or implied in forward-looking statements.
Our Annual Report on Form 10-K for the year ended December 31,
2020, recent Current Reports on Form 8-K and other filings with the
SEC discuss some of the important risk factors that may affect our
business, results of operations, and financial condition and you
are encouraged to read such filings. The forward-looking statements
speak only as of the date made, and other than as required by law,
we do not intend to publicly update or revise any forward-looking
statements as a result of new information, future events or
otherwise. These cautionary statements qualify all forward-looking
statements attributable to us or persons acting on our behalf.
ABOUT EVOLVE TRANSITION INFRASTRUCTURE
LPEvolve Transition Infrastructure LP is a publicly-traded
limited partnership focused on the acquisition, development and
ownership of infrastructure critical to the transition of energy
supply to lower carbon sources. We own natural gas gathering
systems, pipelines and processing facilities in South Texas and
continue to pursue energy transition infrastructure
opportunities.
ADDITIONAL
INFORMATIONAdditional information about Evolve can be
found in our documents on file with the SEC which are available on
our website at www.evolvetransition.com and on the SEC’s website at
www.sec.gov.
PARTNERSHIP CONTACTCharles C.
WardChief Financial Officerir@evolvetransition.com(713)
800-9477
Evolve Transition Infras... (AMEX:SNMP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Evolve Transition Infras... (AMEX:SNMP)
Historical Stock Chart
From Jul 2023 to Jul 2024