Certarus Achieves New Record Activity and Provides Business Update
CALGARY, Alberta, Jan. 13, 2021 (GLOBE NEWSWIRE) -- Certarus Ltd. (“Certarus” or the “Corporation”) continues to deliver strong results by expanding its low carbon energy platform and serving new customers across North America. By displacing other more emission‐intensive fuels with natural gas, Certarus provides a supply of clean, cost-effective energy to help support corporate Environmental, Social and Governance (ESG) best practices.
“Thanks to the talented women and men of Certarus and our shared commitment to safety, sustainability, and fiscal discipline – we are well positioned for continued success going forward. Over the last year we grew the company, further diversified the customer base with notable increases in US utility and renewable natural gas (RNG), reduced debt and strengthened our senior leadership team. The combination of our existing market leading platform together with an ever-increasing demand for low carbon energy solutions has Certarus poised to achieve a doubling in the business over the next couple years. We are on track for over $100 million of EBITDA earnings in 2022,” said Curtis Philippon, President & CEO of Certarus.
Despite the disruption to North American markets as a result of the COVID-19 pandemic, Certarus continued to see year-over-year growth in activity. In 2020, the Corporation safely delivered a record 32,360 Mcf/day of compressed natural gas (CNG), an increase of 23% over the prior year. This is equal to 950,000 Diesel Equivalent Litres or 240,000 Diesel Equivalent Gallons safely delivered each day.
Increased adoption of lower carbon-emitting natural gas-enabled technology in the energy sector, along with additional customers in the utility, mining and asphalt sectors all contributed to this growth. Certarus achieved several milestones throughout 2020, commencing its first two RNG contracts, and beginning work on the largest utility contract in the Corporation’s history.
Activity levels in early 2021 have been robust, with some days already exceeding 50,000 Mcf/day.
Certarus was able to fund its growth capital investment for 2020 through positive operating cash flow, and reduce its net debt to $120 million by December 31, 2020. In addition to maintaining a strong balance sheet, Certarus ended the year with significant liquidity, having extended its $200 million multi-year committed credit facility to the end of 2023.
In support of future growth, Certarus has a 2021 capital budget of approximately $55 million, which is expected to be funded entirely by operating cash flow. If growth opportunities are realized more quickly than expected, this capital budget may be increased accordingly.
Renewable Natural Gas
RNG is derived from decomposing organic matter and is used as a substitute for conventional natural gas. Depending on its source, RNG may be carbon neutral or even carbon negative, making it a highly desirable renewable energy source to achieve ESG targets.
RNG production is expected to grow exponentially over the next several years. Many of the projects expected to come online cannot easily or cost-effectively be connected directly to a sales gas pipeline. Certarus’ expertise in the safe compression, transportation, and decompression of gasses brings significant value-add to RNG projects by enabling them to access markets.
Certarus commenced operations for its first two RNG projects in 2020 and will start operations for its third project in Q1 2021. The Corporation is working closely with other leading developers of RNG projects and expects to achieve significant growth in this expanding market.
Certarus is in active discussions over several potential hydrogen pilot projects. The Corporation’s high pressure gas core competency, business model, existing trailer fleet and facility infrastructure provide a major advantage to becoming a market leader in this growing space.
Through the displacement of more carbon intensive fuels with CNG, RNG, and hydrogen solutions, Certarus is leading the transition to low carbon energy.
The Corporation will be presenting at several prominent investment conferences throughout January, including events hosted by National Bank on January 7, Peters & Co. on January 13, and CIBC on January 22.
In addition to attending these investment conferences, Certarus will also provide a management-hosted presentation on January 26 to shareholders and other interested parties. Please reach out to Clint Warkentin ( email@example.com ) to express your interest in receiving an invitation to this virtual management presentation.
Certarus is the North American market leader in providing low carbon energy solutions through a fully integrated compressed natural gas (CNG) platform. Our primary business is the creation of a virtual natural gas pipeline through the compression, transportation, and integration of CNG and renewable natural gas for the energy, mining, forestry, utility, and industrial sectors. Our solutions target diesel and propane fuel displacement projects to lower operating costs and improve environmental performance. For more information, visit www.certarus.com or contact:
President & CEO
Chief Financial Officer
Certain information contained in this document constitutes forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation’s control including the impact of general economic conditions, the impacts of the COVID-19 pandemic, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified service providers, personnel or management and ability to access sufficient capital from internal and external sources, the inability to obtain required consents, permits or approvals and the risk that actual results will vary from the results forecasted and such variations may be material. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation’s actual results, performance or achievement could differ materially from those expressed in or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Corporation will derive therefrom.
The forward-looking statements contained in this document are made as of the date hereof. Certarus disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Additionally, Certarus undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.