Preservation resources – Preserve The Nati http://preservethenati.org/ Wed, 18 May 2022 17:05:30 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://preservethenati.org/wp-content/uploads/2021/10/nati.png Preservation resources – Preserve The Nati http://preservethenati.org/ 32 32 Where to find community gardens around Anderson, nutritional resources https://preservethenati.org/where-to-find-community-gardens-around-anderson-nutritional-resources/ Wed, 18 May 2022 10:02:33 +0000 https://preservethenati.org/where-to-find-community-gardens-around-anderson-nutritional-resources/ The town of Anderson has seen abundant growth over the past few years with new businesses and improved green spaces dotting the bustling downtown. Walk a mile in just about any direction and the scene fades to a slower pace. Neighborhoods frozen in time and untouched for decades feature sidewalks in need of repair and […]]]>

The town of Anderson has seen abundant growth over the past few years with new businesses and improved green spaces dotting the bustling downtown.

Walk a mile in just about any direction and the scene fades to a slower pace.

Neighborhoods frozen in time and untouched for decades feature sidewalks in need of repair and homes weathered by years of weather.

Homes surrounding downtown, such as along Alphabet Streets or East Whitner Street, do not have very close access to affordable nutritious food.

Dovie Morton has lived in the same G Street white house for 70 years. She married her husband in 1950 and they moved a year later to the neighborhood originally intended for factory workers.

New people have come and gone, but the latest improvement in the neighborhood came recently with a garden.

]]>
Governor Hochul Announces Availability of State Resources for Buffalo Community in Response to Horrific Shooting at Tops Supermarket https://preservethenati.org/governor-hochul-announces-availability-of-state-resources-for-buffalo-community-in-response-to-horrific-shooting-at-tops-supermarket/ Sun, 15 May 2022 21:34:43 +0000 https://preservethenati.org/governor-hochul-announces-availability-of-state-resources-for-buffalo-community-in-response-to-horrific-shooting-at-tops-supermarket/ Governor Kathy Hochul today announced resources to support the Buffalo community in response to the horrific shooting at Tops Supermarket, including additional state investments, trips to local grocery stores and funding to cover funeral costs for the victims. “The past 24 hours have been traumatic for New Yorkers, and my administration will spare no effort […]]]>

Governor Kathy Hochul today announced resources to support the Buffalo community in response to the horrific shooting at Tops Supermarket, including additional state investments, trips to local grocery stores and funding to cover funeral costs for the victims.

“The past 24 hours have been traumatic for New Yorkers, and my administration will spare no effort to ensure that the victims of this act of terrorism by a white supremacist receive all the resources and support they need.” , he added. Governor Hochul said. “The whole world is watching how we will come together as New Yorkers to overcome this unthinkable tragedy. Buffalo, my hometown, is the city of good neighbors and New York State will be good neighbors to them.”

Governor Hochul has ordered $2.8 million in federal and state funding to be made available to provide additional services and support to individuals and families affected by the shooting. The state’s Office of Victim Services (OVS) will administer funding for the state’s Criminal Justice Services Division and the state’s Community Violence Intervention Act, which annually designates a part of the state’s Federal Victims of Crime Act funding for programs serving the hardest hit communities. by armed violence.

OVS staff will be in Buffalo this week to help victims and families access financial assistance and provide information on how service providers can access additional funding to expand services and support for victims of violence. . OVS staff will be housed in a closed location accessible only to victims and their families to protect victims’ privacy and maintain confidentiality. The agency provides an essential safety net and can pay for expenses resulting from a crime when individuals have no other means of paying for them, including funeral and burial expenses, medical and counseling expenses, among other expenses, and can help victims and families who have lost wages and lost support.

The Office of Victim Services can cover funeral and burial expenses up to $6,000. The National Action Network has offered to cover any additional funeral costs for the families of the shooting victims, and New York State is coordinating closely to ensure the money gets to those in need.

Additionally, Governor Hochul announces a partnership with ride-sharing companies Lyft and Uber to provide rides to and from local grocery stores; the site of the shooting was located in a so-called “food desert” and served as the only walkable supermarket for many Buffalonians. Riders in ZIP Codes 14208 and 14209 can receive a ride to and from two local grocery stores: Top friendly markets (425 Niagara St., Buffalo) and Prize Rite (250 Elmwood Ave, Buffalo). Lyft passengers can use the code “BuffaloLyftUp” for up to $25 in the Lyft app. Uber riders can use the code “SHOPBUF” in the Uber app for up to $20 off a ride, with a maximum of eight rides per customer.

The following OVS-funded programs can help victims and their family members file requests for assistance and also provide crisis counselling, support groups, advocacy and other services. All victims of crime and their family members are eligible for these services. Programs are also available at www.ovs.ny.gov/connect.

  • Erie County Medical Center: BRAVE (Buffalo Rising Against Violence at ECMC) and SNUG
  • Erie County Attorney’s Office
  • Center for Elder Law & Justice Inc.
  • Community services for all1
  • Erie County Probation Department
  • Buffalo International Institute, Inc.
  • Neighborhood Legal Services Inc.
  • Northwest Buffalo Community Center, Inc.

OVS provided more than $18 million in financial assistance to victims of crime and their families in 2021. New York is the only state in the nation that does not limit reimbursement for medical expenses or counseling, which means that individuals receive help for as long as they need it. this. Funding for compensation for victims of crime is generated by fines, costs and surcharges paid by certain persons convicted in state or federal court.

Governor Hochul reminds all New Yorkers of the state resources available for mental health support during this time of grief. All New Yorkers can contact the NY Project Hope Line at 844-863-9314 to speak with a crisis counselor, seven days a week from 8 a.m. to 10 p.m. NY Project Hope Line is a free, confidential crisis hotline for mental health support that connects New Yorkers to the resources they need. Additionally, staff from the State Office of Mental Health and the State University of New York will be available to provide counseling and support to those affected by this tragedy.

]]>
District meeting on resources dominated by water and nitrates | News https://preservethenati.org/district-meeting-on-resources-dominated-by-water-and-nitrates-news/ Sat, 14 May 2022 15:25:00 +0000 https://preservethenati.org/district-meeting-on-resources-dominated-by-water-and-nitrates-news/ The importance of protecting and preserving groundwater dominated the Lower Elkhorn Natural Resources District meeting on Thursday night. Meeting in committee of the whole in Norfolk, the 15-member council heard three reports related to groundwater levels, nitrate leaching and irrigation management – ​​or a combination of the three topics. The issue remains relevant as a […]]]>

The importance of protecting and preserving groundwater dominated the Lower Elkhorn Natural Resources District meeting on Thursday night.

Meeting in committee of the whole in Norfolk, the 15-member council heard three reports related to groundwater levels, nitrate leaching and irrigation management – ​​or a combination of the three topics.

The issue remains relevant as a growing number of city and private wells in northeast Nebraska are being warned about nitrates testing above 10 milligrams per liter. In communities with wells above the threshold, babies, pregnant women and nursing mothers should not drink the water.

The nitrate issue may make some agricultural producers uneasy as they fear additional government restrictions. Still, many of the studies presented at Thursday’s meeting focused on finding the optimal amount of fertilizer growers can apply to their fields to achieve maximum production without leaching.

Also, avoiding overuse of fertilizers benefits farmers as it reduces fertilizer costs. The studies examine issues such as irrigated land, arid land, when to water during the growing season, and the amount of rain or irrigation.

One study, however, which simply looked at groundwater levels, provided mixed information.

Dallas Dorey, a water resources technician for LENRD, showed results that showed most wells in the 15 counties covered by the district are at healthy levels, with many actually having increased water readings. Some of the wells date back to 1976, so there’s a fair amount of data covered.

Dorey said across the district over the past two years, however, the average sink has dropped about 2.4 feet. He and others who check wells have noticed that it looks like a lot of the wells that were near streams were lower last year. It is unclear why this might be.

In 2018, 2019 and 2020, historic water levels were recorded in the district, so many wells were up in those years, he said.

The wells vary in depth. Some are 250 feet deep and some are as shallow as 5 feet, he said.

Crystal Powers, who presented on nitrates at the Nebraska Resource Districts Association conference earlier this year in Lincoln, said pastures and rangelands are lowest for nitrate leaching. Next is turf, then cropland – dry land followed by a pivot – with the most leached furrow, then a few feedlots.

Powers, who is the research and communications specialist through the Nebraska Water Center, said it can be difficult to balance food production, benefits and health and water impacts.

She cited recent studies in Hastings, which has similar rainfall amounts to the Lower Elkhorn area, but obviously different soils.

In the five years that were recently studied, more than half of the fields have over-irrigation, Powers said. The land had soil moisture sensors in a large number of fields to determine appropriate irrigation amounts.

“Sometimes, at the start of the season, it’s too much. Sometimes it’s the whole growing season. Sometimes it’s late,” she said.

The studies provide intuitive results, like putting nitrogen on the plant when it’s needed, which is the ideal route.

Irrigation is one of the main causes of nitration, but irrigation does not make nitration inevitable, she said.

Bazile Groundwater Management Area Extension Educator Jeremy Milander also presented results from the Bazile Groundwater Management Area Demonstration Site in the NRD Upper Elkhorn.

Six different nitrogen levels were tested to create a yield line to try to determine how to get the maximum yield for the input.

No action was taken on the reports that were presented as the board was meeting as a committee of the whole. When the Board meets as a Committee of the Whole, it meets in a more relaxed setting where no action is taken, except occasionally to ask staff to present a resolution or cause of action to the Board at its regular monthly meetings.

]]>
Dairy Resources | Business | agupdate.com https://preservethenati.org/dairy-resources-business-agupdate-com/ Thu, 12 May 2022 19:30:00 +0000 https://preservethenati.org/dairy-resources-business-agupdate-com/ Candidates eligible for election The Wisconsin Department of Agriculture, Commerce and Consumer Protection recently certified 12 candidates eligible for election to the Dairy Farmers of Wisconsin Board of Directors. Dairy farmers in the affected districts will have until May 25 to vote on the registered candidates. District 3 nominees – Mark Leder of Gleason and […]]]>

Candidates eligible for election

The Wisconsin Department of Agriculture, Commerce and Consumer Protection recently certified 12 candidates eligible for election to the Dairy Farmers of Wisconsin Board of Directors. Dairy farmers in the affected districts will have until May 25 to vote on the registered candidates.

  • District 3 nominees – Mark Leder of Gleason and Gary Kohn of Medford – Lincoln, Oneida, Price and Taylor counties
  • District 6 Candidate – Douglas Danielson of Cadott – Chippewa and Eau Claire Counties
  • District 9 Nominee – Jeff Betley of Pulaski, Menominee, Shawano and Waupaca Counties
  • District 12 Candidate – Stephen Pankrantz of Marshfield – Portage, Waushara and Wood Counties
  • District 15 nominees – Sandra Madland of Lyndon Station and Annette Trescher of Cashton – Adams, Juneau and Monroe counties
  • District 18 nominee – Rick Roden of West Bend – Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Washington and Waukesha counties
  • District 21 Candidate – Gail Klinkner of Viroqua – Crawford and Vernon Counties
  • District 24 nominees – Virgil Haag of Mount Horeb, Tina Hinchley of Cambridge and Carrie Chestnut Mess of Johnson Creek – Dane and Jefferson counties

People also read…

All applicants meet the eligibility criteria of being an active dairy producer or representative of a relevant producer, selling milk in commercial channels and residing in their respective districts. The agency distributed mail-in ballots to dairy farmers who reside in the eight affected districts. Producers who have not received a ballot should request one by contacting debbie.gegare@Wisconsin.gov or 608-224-5116. Completed ballots must be signed and mailed to the Wisconsin Department of Agriculture, Trade and Consumer Protection, Marketing Order Program, PO Box 8911, Madison, WI 53708. They must be postmarked by May 25.

Election results will be announced at the end of June. Elected producers will serve a three-year term beginning July 1. Visit wisconsindairy.org/elections to view candidate biographies and for more information.

Scheduled Virtual Farm Tours

Four dairies will be showcased virtually daily during World Dairy Expo 2022, showcasing environmental stewardship, genetics, technological advancements, community involvement and more.

• October 4 – Walnutdale Farms, Wayland, Michigan – has a 50-stall rotary milking parlour, raises all of its own replacement heifers and has programs focused on preserving the environment.

• October 5: Homestead Dairy, Plymouth, Indiana – operates three breeding sites with a double 25-parallel milking parlour, a double 12-parallel parlour, Lely robots, a biogas plant, a slurry drying system for bedding and facilities for new calves.

• October 6 – Bateman’s Mosida Farms, Elberta, Utah – has a solar farm, a robotic dairy research facility and a vertical forage cultivation system.

• October 7: Skråmered, Våxtorp, Sweden – integrates ProCROSS genetics to adapt genetics and management to new installations.

Visit worlddairyexpo.com for more information.

Tool assesses cost savings

The new Heifer Grazing Compass is a spreadsheet designed to help farmers predict and understand the long-term cash flow and financial results of the decision to raise heifers on pasture. Developed by the University of Wisconsin-Center for Integrated Farming Systems and Grassland 2.0, the tool compares the total economic implications of a farmer’s existing system with a potential pasture-based heifer raising system. It helps farmers establish a grazing plan, taking into account both a financial and ecological strategy. It allows users to compare heifer rearing systems while maintaining constant animal growth and development results. The compass is site and operation specific. It is suitable for farmers in Wisconsin, but is useful anywhere in the United States.

A Beef Grazing Compass and a Pasture Management Compass are due out this summer. Visit grasslandag.org/the-heifer-grazing-compass or email jhendric@wisc.edu for more information.

Grant applications sought

The Professional Dairy Farmers Foundation offers grants of up to $5,000 for new or unique programs for dairy-focused initiatives. The foundation strives to identify emerging educational needs in the dairy industry and help fill gaps in funding for new or innovative programs. Since 2010, the foundation has awarded more than $295,000 in grants to support programs that equip the dairy community with the latest tools and resources to be effective dairy managers, leaders and ambassadors.

An independent grant selection committee will seek applications focused on supporting the next generation of dairy farmers, growing and maintaining public confidence in people and dairy products, and building producer skills. Organizations with 501(c)(3) or (5) tax status can apply. Grant applications are due June 1. Visit milkingfoundation.org/grant-seekers or contact info@dairyfoundation.org for more information.

Nineteen Wisconsin dairy companies recently received dairy processor grants from the Wisconsin Department of Agriculture, Commerce and Consumer Protection. The grants are intended to foster innovation, improve profitability and maintain the long-term viability of Wisconsin’s dairy processing facilities. The Department of Agriculture received 43 grant applications totaling more than $1.7 million.

  • Slicing and alpine cheese, Monroe, $15,000 – plant relocation and expansion
  • Brunkow cheese, Darlington, $18,500 – improvement of facilities and processes
  • Cedar Valley cheese, Belgium, $25,000 – development of the cheese grinding process
  • Swiss Cooperative Decatur, Brodhead, $24,000 – expansion of facilities
  • Artisan Door Cheese, Egg Harbor, $25,000 – development of a comprehensive marketing plan
  • Henning cheese, Kiel, $18,500 – website development
  • Hill Valley Dairy, East Troy, $20,000 – expansion planning
  • Dutch family cheese, Thorp, $22,000 – engineering and expansion planning
  • Landmark Creamery, Belleville, $22,000 – cheese extension
  • Lynn Dairy, Granton, $25,000 – cheese belt purchase
  • Global Dairy Specialties, Fond du Lac, $28,000 – partner with more small and medium-sized cheese factories
  • Muscoda Protein Products, Muscoda, $28,000 – pre-treatment study for anaerobic wastewater treatment plant
  • Renard cheese, Algoma, $24,000 – plant equipment engineer scholarship development
  • Specialty Cheese Company, Reeseville, $20,000 – development of a reverse osmosis system
  • Guernsey Two Girls Creamery, Liberty, $5,000 – product development and expansion
  • University of Wisconsin-Platteville, $10,000 – eexpanding retail opportunities and technical knowledge
  • Westby Co-op Creamery, Westby, $25,000 – pmodernization and extension of the park
  • Pride of Wisconsin, Mauston, $25,000 – fcapacity expansion
  • Wiskerchen cheese, Auburndale, $20,000 – hiring of bilingual human resources and administrative assistant

Visit datcp.wi.gov and search for “dairy development” for more information.

The board appoints a representative

Chad Vincent, CEO of Dairy Farmers of Wisconsin, was recently named dairy representative to the new Wisconsin Agricultural Export Advisory Council. The council will help guide initiatives created under the Wisconsin Agricultural Export Initiative, a collaborative project between the Wisconsin Department of Agriculture, Commerce and Consumer Protection and the Wisconsin Economic Development Corporation. . They promote the export of Wisconsin agricultural and agri-food products.

Vincent gained international experience at Miller Brewing International and Fiskars Brands. He has provided strategic input and advanced the mission of the Wisconsin Agricultural Export Advisory Council. While at Dairy Farmers of Wisconsin, he helped promote Wisconsin dairy products to world markets.

The state initiative aims to boost exports of dairy, meat, crops and other agricultural products by 25% by June 2026. The council will meet at least twice a year.

Ryan Wucherer, Director of Global Sales for CT Dairies, is also a dairy industry representative on the Export Advisory Board; and Jeff Schwager, CEO of Sartori. Visit wisconsindairy.org and datcp.wi.gov and search for “agricultural exports” for more information.

]]>
Legislation signed to protect the state’s natural resources https://preservethenati.org/legislation-signed-to-protect-the-states-natural-resources/ Wed, 11 May 2022 11:29:30 +0000 https://preservethenati.org/legislation-signed-to-protect-the-states-natural-resources/ Release: ATLANTA – Six laws have been signed to strengthen the forest industry, promote conservation and protect natural resources. Governor Brian P. Kemp signed six pieces of legislation to strengthen Georgia’s premier forestry industry, promote conservation efforts, and protect the state’s natural resources. The legislation includes HB 997, which exempts forestry equipment from statewide ad […]]]>

Release:

ATLANTA – Six laws have been signed to strengthen the forest industry, promote conservation and protect natural resources.

Governor Brian P. Kemp signed six pieces of legislation to strengthen Georgia’s premier forestry industry, promote conservation efforts, and protect the state’s natural resources. The legislation includes HB 997, which exempts forestry equipment from statewide ad valorem taxes, pending a statewide referendum question (agricultural equipment is already exempt); HB 1349, which updates Georgia’s no net loss requirement to encompass more than 200,000 acres of hunting and fishing land added since 2005; HB 343, which more severely punishes poaching; HB 586, which extends the sunset on Conservation Use Value Assessment (CUVA); HB 1147, which provides for a year-round hunting season on raccoons and opossums on non-public lands; and HB 1148, which implements stricter requirements for deer imported into Georgia from states with confirmed cases of chronic wasting disease (CWD).

“Georgia’s agricultural assets, beautiful natural wonders and wide open spaces have given my family and many others a livelihood and fond memories,” Governor Brian Kemp said. “We are not only proud to be champions of our state’s thriving agriculture, related industries and natural resources, we are also committed to ensuring that future generations can enjoy them as well. The bills I have signed into law will help us treat the forestry industry the same way we treat agriculture, as well as protect hunting, fishing and conservation lands, and more. I would like to thank the members of the Georgia General Assembly who passed these measures, as well as the Department of Natural Resources for their continued efforts to conserve our wild spaces and the Georgia Forestry Association for its work in supporting the first forest industry from Georgia.

Governor Kemp, in addition to the many members of the Georgia House and the Senate who voted in favor of these important measures, would like to thank the following sponsors of the bill for their roles in the respective legislation:

  • HB 997: Representative Sam Watson and Senator Larry Walker
  • HB 1349: Representative Jason Ridley and Senator Tyler Harper
  • HB 343: Representative Trey Rhodes and Senator Russ Goodman
  • HB 586: Representative Sam Watson and Senator Steve Gooch
  • HB 1147: Representative Trey Rhodes and Senator Tyler Harper
  • HB 1148: Representative Trey Rhodes and Senator Tyler Harper

]]>
Council members appointed to help make decisions on NHS resources in Calderdale https://preservethenati.org/council-members-appointed-to-help-make-decisions-on-nhs-resources-in-calderdale/ Mon, 09 May 2022 13:22:00 +0000 https://preservethenati.org/council-members-appointed-to-help-make-decisions-on-nhs-resources-in-calderdale/ The West Yorkshire Integrated Care Board (ICB) is a new statutory organization which will be established on July 1, 2022. It will be part of the West Yorkshire Integrated Care System (ICS) – known as the West Yorkshire Health and Care Partnership. Most decisions will be made at the local level in support of the […]]]>

The West Yorkshire Integrated Care Board (ICB) is a new statutory organization which will be established on July 1, 2022.

It will be part of the West Yorkshire Integrated Care System (ICS) – known as the West Yorkshire Health and Care Partnership.

Most decisions will be made at the local level in support of the local priorities of the Health and Wellbeing Council. The local Calderdale committee will be known as the Calderdale Cares Partnership and will include representatives from health, care, local government and the community and voluntary sector in Calderdale.

Register to our daily newsletter Halifax Courier Today

Stephen Naylor, John Mallalieu and Denise Cheng-Carter

Cathy Elliott, chair-designate of the NHS West Yorkshire Integrated Care Board, said: “I would like to congratulate John, Denise and Stephen on their appointments to the Calderdale ICB Place-based committee. They bring with them a wealth of knowledge and expertise that will be invaluable in paving the way to improving the health of local populations. We have a long history of working together in West Yorkshire, and I look forward to continuing that tradition and working alongside them all as we move forward into our new statutory organisation.

After an open and transparent recruitment process, an Independent Chair and two Independent Members have been appointed to the Calderdale Cares Partnership Council.

This is an ICB committee with authority from the West Yorkshire ICB to make decisions about the use of NHS resources in Calderdale.

These appointments will play a key role in providing a constructive, independent and respectful challenge to the plans, objectives and priorities of the Calderdale Cares partnership.

Robin Tuddenham, Officer in Charge, NHS Calderdale CCG, Chief Executive, Calderdale Council and Designated Local Lead for Calderdale Cares Partnership, said: “We have a strong history of partnership in Calderdale. The Calderdale Cares partnership aligns with Calderdale’s local ambitions and provides the opportunity to influence the wider health and care system. I am delighted that we have appointed such high quality candidates to these key positions for Calderdale.

“Never before, as we seek to recover from the pandemic and tackle growing inequalities, will our partnership be more important to focus on what really matters, to work with and alongside local people. We are well placed to realize our potential in Calderdale given the strength of our committee in Calderdale.

New appointments made

Independent Local Committee Chair – John Mallalieyou

John has extensive experience in public, private and social enterprises.

He is chief executive of the Leeds United Foundation and Leeds United College. He has non-executive experience in a director role for a national conservation charity and previously non-executive director of a housing association board, director of a national conservation charity mental health for veterans and adviser to the Minister of Social Affairs on employment services.

He has held senior positions with the social enterprise Turning Point for almost a decade, as well as various executive and non-executive roles within the NHS, including Vice-Chairman of the NHS Calderdale Clinical Commissioning Group and former lay member of the West Yorkshire and Harrogate Integrated Care System. .

In response to his appointment, John said: “I am delighted to take on this new role with us. It’s time for us to be ambitious for the people who live and work in Calderdale. By working together, we have the best opportunity to truly make a difference and help achieve our vision of creating more resilient communities where everyone can access health, care and well-being services, reach their potential and live a bigger life.

Independent Member – Denise Cheng-Carter

Denise is a qualified accountant and has worked in the education sector for over 25 years. She is Acting Executive Director of Finance and IT at Capel Manor College London, and was Deputy Director of Finance and Resources at Calderdale College for almost 20 years until last year.

Denise has been a lay member of the NHS Calderdale Clinical Commissioning Group since January 2022, having acted in a lay advisory capacity since 2019.

Denise said: ‘I look forward to taking on this new role and continuing to use my experience and expertise to support the committee to deliver outstanding results for the people of Calderdale.’

Independent Member – Stephen Naylor

Stephen, who lives in Brighouse, is the founder and director of Calderdale-based communications, strategy and public affairs consultancy Waverley. He worked as a journalist, through politics and politics before starting his own business in 2013.

He has a strong background in the voluntary sector, including as chair of the Calderdale-based charity, The Nick Smith Foundation, since its inception in 2018, and a trustee of Halifax’s Piece Hall since 2020.

Stephen said: “Calderdale is my home – it’s where I grew up and where my family is growing up now. I’m passionate about where we live and delighted to be working on the new Partnership Council which will play a role so important to play in all of our lives.”

Members of the Calderdale ICB Committee will share responsibility for ensuring that it carries out its functions effectively, efficiently, economically, with good governance and in accordance with the terms of the West Yorkshire ICB Constitution.

* Support your Halifax Courier by becoming a digital subscriber. You’ll see 70% fewer ads on stories, which means faster load times and an overall improved user experience. Click on here register

]]>
Stefanik fights to preserve veterinary resources | Letters https://preservethenati.org/stefanik-fights-to-preserve-veterinary-resources-letters/ Sun, 08 May 2022 04:15:00 +0000 https://preservethenati.org/stefanik-fights-to-preserve-veterinary-resources-letters/ I can’t even believe this is a letter I have to write. I never thought I would see the day when the Commander-in-Chief of the United States of America would divert resources intended for our heroes to non-citizens, who have no respect for our laws. This is a disgusting act from a failing administration and […]]]>

I can’t even believe this is a letter I have to write. I never thought I would see the day when the Commander-in-Chief of the United States of America would divert resources intended for our heroes to non-citizens, who have no respect for our laws.

This is a disgusting act from a failing administration and it showed once again that they have no respect for our brave warriors or their service. A headline that says President Joe Biden’s administration is about to take our taxpayer-funded veterans resources and give them instead to people who have no right to be here and came here flaunting our laws [illegal immigrants] looks like it must be satire.

Unfortunately, I often wake up to titles that I wish were just satire. I often think it’s impossible for the Biden administration to be insensitive enough, so removed from the will of voters that they would actually come up with these ideas. Yet they are real.

However, headlines that discourage me are often followed by those that inspire me. US Representative Elise Stefanik has once again stepped up to defend our troops against the predators of this administration. She sponsored a bill that would prohibit the Department of Veterans Affairs from prioritizing non-citizens over our veterans.

It’s sad to live in a time when a bill like this is even necessary. But in times like these, we need leaders like Elise, a leader who values ​​the service and sacrifices of our men and women in uniform and who won’t hesitate to fight. Thank you, Elise, for all you do for our veterans, and I can’t wait to see you re-elected in November because the north country needs a fighter.

As an Amazon Associate, I earn from qualifying purchases.

]]>
2023 budget balances fiscal resources with the needs of the community | News, Sports, Jobs https://preservethenati.org/2023-budget-balances-fiscal-resources-with-the-needs-of-the-community-news-sports-jobs/ Sat, 07 May 2022 17:06:46 +0000 https://preservethenati.org/2023-budget-balances-fiscal-resources-with-the-needs-of-the-community-news-sports-jobs/ As the Maui County Council puts the finishing touches to its review of the mayor’s fiscal year 2023 budget, members have been busy weighing county revenues and costs as well as the community’s need for valuable services. From caring for our elders, providing housing assistance to those in need, rescuing neglected animals, or […]]]>

As the Maui County Council puts the finishing touches to its review of the mayor’s fiscal year 2023 budget, members have been busy weighing county revenues and costs as well as the community’s need for valuable services.

From caring for our elders, providing housing assistance to those in need, rescuing neglected animals, or providing recreational opportunities for all ages, the county offers an incredible variety of services and programs that meaningfully benefit all members of our community.

To this end, I have supported and presented priority budget proposals for the coming fiscal year that continue this legacy of serving our residents and visitors to keep them safe, cared for and thriving in a healthy environment. Preserving our communities, our islands and our natural resources can be costly, but it is essential to maintaining the overall health of our ‘aina and our people for generations to come.

One of the priority proposals I submitted in this budget cycle was $90,000 for professional services to support Maui’s first-ever community outreach court. This alternative justice system, modeled after a highly successful program on Oahu, would initially be initiated by the Maui County Attorney’s Office in coordination with the state judiciary and the public defender’s office.

Community Outreach Court will offer those charged with non-violent offenses, like many of our unprotected population, the opportunity to seek a restorative and cooperative way to try these lower level crimes – which is an important step to help individuals to finally break the cycle of homelessness.

A district-related proposal I submitted was for $200,000 for an engineering study in the Kahului neighborhood of Palama Drive, to address the negative impacts that this community has suffered for many years, particularly poor drainage during periods heavy rains.

I also addressed a critical issue that came to light recently – support for child victims of sex trafficking – with my $140,000 priority proposal for Parents & Children Together, known as PACT. This funding will add two full-time staff to PACT to help counsel victims of sex and other forms of human trafficking, as well as needed outreach, education and mentorship in our community, schools and schools. other organizations.

Additionally, my $250,000 raise for the Hawaii Animal Rescue Foundation, or HARF, will assist in the completion of HARF’s animal welfare and public education facility in Waihee. The 5,000 square foot multipurpose barn is nearing completion, and this one-time credit will allow HARF to carry out its animal rescue mission and provide educational and therapeutic programs to students and residents of Maui County.

As a true no-kill rescue center, HARF acquires much of its annual funding from private sources and through small donations from many individuals. This county funding is a relatively small — but important and timely — part of the final phase of building this much-needed facility that will also serve larger animals such as horses and cows.

The public still has several opportunities to testify on the budget with council’s proposed amendments, including public hearings on Friday for proposed rates on property tax, vehicle weight tax and vehicle fuel tax. The three rates are fixed by resolution. Council is expected to act on the property tax resolution on Friday and the other two resolutions on May 26.

Bills that set the budgets for operating and capital programs as well as those authorizing the administration to issue bonds and to use bond income in excess of the cost of the projects for which they were issued (“expired bonds”) will receive first reading at the May 26 council meeting and second reading at the June 8 council meeting. You can testify about the budget at public hearings or council meetings, either in person in the council chambers on the eighth floor of the county building, or virtually on the BlueJeans platform.

* Tasha Kama is Chair of the Human Concerns and Parks Committee. She holds the council seat of the Kahului residential area. “3 Minutes of the Council” is a column to explain the latest news on county legislative matters. Visit mauicounty.us for more information.




Today’s breaking news and more to your inbox









]]>
SPRAGUE RESOURCES LP Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://preservethenati.org/sprague-resources-lp-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Thu, 05 May 2022 20:47:12 +0000 https://preservethenati.org/sprague-resources-lp-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ As used in this Quarterly Report on Form 10-Q ("Quarterly Report"), unless the context otherwise requires, prior to May 28, 2021, references to "Sprague Resources," the "Partnership," "we," "our," "us," or like terms, refer to Sprague Resources LP and its subsidiaries; references to our "General Partner" refer to Sprague Resources GP LLC; references to "Axel […]]]>
As used in this Quarterly Report on Form 10-Q ("Quarterly Report"), unless the
context otherwise requires, prior to May 28, 2021, references to "Sprague
Resources," the "Partnership," "we," "our," "us," or like terms, refer to
Sprague Resources LP and its subsidiaries; references to our "General Partner"
refer to Sprague Resources GP LLC; references to "Axel Johnson" or the "Sponsor"
refer to Axel Johnson Inc. and its controlled affiliates, collectively, other
than Sprague Resources, its subsidiaries and its General Partner; and references
to "Sprague Holdings" refer to Sprague Resources Holdings LLC, a wholly owned
subsidiary of Axel Johnson and the owner of our General Partner. Prior to May
28, 2021, our General Partner was a wholly owned subsidiary of Axel Johnson.

As used in this Quarterly Report on Form 10-Q ("Quarterly Report"), unless the
context otherwise requires, effective May 28, 2021, references to "Sprague
Resources," the "Partnership," "we," "our," "us," or like terms, refer to
Sprague Resources LP and its subsidiaries; references to our "General Partner"
refer to Sprague Resources GP LLC; references to "Hartree" or the "Sponsor"
refer to Hartree Partners, LP, other than Sprague Resources, its subsidiaries
and its General Partner; and references to "Sprague Holdings" refer to Sprague
HP Holdings, LLC, a wholly owned subsidiary of Hartree and the owner of our
General Partner. Effective May 28, 2021, our General Partner is a wholly owned
subsidiary of Hartree.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS


This Quarterly Report and any information incorporated by reference, contains
statements that we believe are "forward-looking statements". Forward looking
statements are statements that express our belief, expectations, estimates, or
intentions, as well as those statements we make that are not statements of
historical fact, including, among other things, statements relating to the
Transaction (as defined below) and the expected benefits thereof.
Forward-looking statements provide our current expectations and contain
projections of results of operations, or financial condition, and/ or forecasts
of future events. Words such as "may", "assume", "forecast", "position", "seek",
"predict", "strategy", "expect", "intend", "plan", "estimate", "anticipate",
"believe", "project", "budget", "outlook", "potential", "will", "could",
"should", or "continue", and similar expressions are used to identify
forward-looking statements. They can be affected by assumptions used or by known
or unknown risks or uncertainties which could cause our actual results to differ
materially from those contained in any forward-looking statement. Consequently,
no forward-looking statements can be guaranteed. You are cautioned not to place
undue reliance on any forward-looking statements.

Factors that could cause actual results to differ from those in the
forward-looking statements include, but are not limited to: (i) changes in
federal, state, local, and foreign laws or regulations including those that
permit us to be treated as a partnership for federal income tax purposes, those
that govern environmental protection and those that regulate the sale of our
products to our customers; (ii) changes in the marketplace for our products or
services resulting from events such as dramatic changes in commodity prices,
increased competition, increased energy conservation, increased use of
alternative fuels and new technologies, changes in local, domestic or
international inventory levels, seasonality, changes in supply, weather and
logistics disruptions, or general reductions in demand; (iii) security risks
including terrorism and cyber-risk, (iv) adverse weather conditions,
particularly warmer winter seasons and cooler summer seasons, climate change,
environmental releases and natural disasters; (v) adverse local, regional,
national, or international economic conditions, including but not limited to,
public health crises that reduce economic activity, affect the demand for travel
(public and private), as well as impacting costs of operation and availability
of supply (including the coronavirus COVID-19 outbreak), unfavorable capital
market conditions and detrimental political developments such as the inability
to move products between foreign locales and the United States; (vi) nonpayment
or nonperformance by our customers or suppliers; (vii) shutdowns or
interruptions at our terminals and storage assets or at the source points for
the products we store or sell, disruptions in our labor force, as well as
disruptions in our information technology systems; (viii) unanticipated capital
expenditures in connection with the construction, repair, or replacement of our
assets; (ix) our ability to integrate acquired assets with our existing assets
and to realize anticipated cost savings and other efficiencies and benefits; and
(x) our ability to successfully complete our organic growth and acquisition
projects and/or to realize the anticipated financial and operational benefits.
These are not all of the important factors that could cause actual results to
differ materially from those expressed in our forward-looking statements. Other
known or unpredictable factors could also have material adverse effects on
future results. Consequently, all of the forward-looking statements made in this
Quarterly Report are qualified by these cautionary statements, and we cannot
assure you that actual results or developments that we anticipate will be
realized or, even if realized, will have the expected consequences to or effect
on us or our business or operations. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this Quarterly Report may
not occur.

When considering these forward-looking statements, please note that we provide
additional cautionary discussion of risks and uncertainties in our Annual Report
on Form 10-K for the year ended December 31, 2021, as filed with the U.S.
Securities and Exchange Commission ("SEC") on March 4, 2022 (the "2021 Annual
Report"), in Part I, Item 1A "Risk Factors", in Part II, Item 7 "Management's
Discussion and Analysis of Financial Condition and Results of Operations", and
in Part II, Item 7A "Quantitative and Qualitative Disclosures About Market
Risk". In light of these risks, uncertainties and assumptions, the
forward-looking events discussed in this Quarterly Report may not occur.

                                       20

————————————————– ——————————

Contents


Forward-looking statements contained in this Quarterly Report speak only as of
the date of this Quarterly Report (or other date as specified in this Quarterly
Report) or as of the date given if provided in another filing with the SEC. We
undertake no obligation, and disclaim any obligation, to publicly update, review
or revise any forward-looking statements to reflect events or circumstances
after the date of such statements. All forward looking statements attributable
to us or any person acting on our behalf are expressly qualified in their
entirety by the cautionary statements contained or referred to in our existing
and future periodic reports filed with the SEC.
                                       21

————————————————– ——————————

Contents

Insight


We are a Delaware limited partnership formed in June 2011 by Sprague Holdings
and our General Partner. We engage in the purchase, storage, distribution and
sale of refined products and natural gas, and provide storage and handling
services for a broad range of materials. In October 2013, we became a publicly
traded master limited partnership ("MLP") and our common units representing
limited partner interests are listed on the New York Stock Exchange ("NYSE")
under the ticker symbol "SRLP".

Our Predecessor was founded in 1870 as the Charles H. Sprague Company in Boston,
Massachusetts; and, in 1905, the company opened the Penobscot Coal and Wharf
Company, a tidewater terminal located in Searsport, Maine. By World War II, the
company was operating eleven terminals and a fleet of two dozen vessels
transporting coal and other products throughout the world. As fuel needs
diversified in the United States, the company expanded its product offerings and
invested in terminals, tankers, and product handling activities. In 1959, the
company expanded its oil marketing activities via entry into the distillate oil
market. In 1970, the company was sold to Royal Dutch Shell's Asiatic Petroleum
subsidiary; and, in 1972, Royal Dutch Shell sold the company to Axel Johnson
Inc., a member of the Axel Johnson Group of Stockholm, Sweden.

On April 20, 2021, the Partnership and Hartree Partner, LP ("Hartree") announced
that Sprague Holdings entered into an agreement to sell to Sprague HP Holdings,
LLC (a wholly-owned subsidiary of Hartree) the interest of Sprague Holdings in
the General Partner, the incentive distribution rights and all of the common
units representing limited partner interests that Sprague Holdings owned in the
Partnership (the "Transaction"). The Transaction was completed and effective on
May 28, 2021.

On January 11, 2022, the Partnership received an unsolicited non-binding
proposal from Hartree pursuant to which Hartree would acquire all of the
outstanding common units of the Partnership that Hartree and its affiliates do
not already own in exchange for $16.50 in cash for each such common unit. The
board of directors of the General Partner has delegated authority to evaluate
and negotiate the proposal to its conflicts committee. The conflicts committee's
evaluation process is currently ongoing.

The Partnership is one of the largest independent wholesale distributors of
refined products in the Northeast United States based on aggregate terminal
capacity. We own, operate and/or control a network of refined products and
materials handling terminals and storage facilities predominantly located in the
Northeast United States from New York to Maine and in Quebec, Canada that have a
combined storage tank capacity of approximately 14.3 million barrels for refined
products and other liquid materials, as well as approximately 2.0 million square
feet of materials handling capacity. We also have access to approximately 51
third-party terminals in the Northeast United States through which we sell or
distribute refined products pursuant to rack, exchange and throughput
agreements.

We operate under four business segments: refined products, natural gas,
materials handling and other operations. See Note 8 - Segment Reporting to our
Condensed Consolidated Financial Statements for a presentation of financial
results by reportable segment and see Part I, Item 2 Management's Discussion and
Analysis of Financial Condition and Results of Operations-Results of Operations
for a discussion of financial results by segment.

In our refined products segment we purchase a variety of refined products, such
as heating oil, diesel fuel, residual fuel oil, kerosene, jet fuel and gasoline
(primarily from refining companies, trading organizations and producers), and
sell them to our customers. We have wholesale customers who resell the refined
products we sell to them and commercial customers who consume the refined
products directly. Our wholesale customers consist of approximately 900 home
heating oil retailers and diesel fuel and gasoline resellers. Our commercial
customers include federal and state agencies, municipalities, regional transit
authorities, drill sites, large industrial companies, real estate management
companies, hospitals, educational institutions, and asphalt paving companies.
Our customers also include businesses engaged in the development of natural gas
resources in Pennsylvania and surrounding states.

In our natural gas segment, we purchase natural gas from natural gas producers and trading companies and sell and distribute natural gas to approximately 15,000 commercial and industrial customer locations in 13 northeastern and central states. from the Atlantic to the United States and Canada.


Our materials handling segment is generally conducted under multi-year
agreements as either fee-based activities or as leasing arrangements when the
right to use an identified asset (such as storage tanks or storage locations)
has been conveyed in the agreement. We offload, store and/or prepare for
delivery a variety of customer-owned products, including asphalt, clay slurry,
salt, gypsum, crude oil, residual fuel oil, coal, petroleum coke, caustic soda,
tallow, pulp and heavy equipment. Historically, a majority of our materials
handling activity has generated qualified income.

Our other operating segment primarily includes the marketing and distribution of coal conducted in our Portland, Maine terminal and the commercial trucking activity carried out by our Canadian subsidiary.

                                       22

————————————————– ——————————

Contents


We take title to the products we sell in our refined products and natural gas
segments. In order to manage our exposure to commodity price fluctuations, we
use derivatives and forward contracts to maintain a position that is
substantially balanced between product purchases and product sales. We do not
take title to any of the products in our materials handling segment.

As of March 31, 2022, our Sponsor, through its ownership of Sprague Holdings,
owns 19,548,849 common units representing an aggregate of 74.5% of the limited
partner interest in the Partnership. Sprague Holdings also owns the General
Partner, which in turn owns a non-economic interest in the Partnership. Sprague
Holdings currently holds incentive distribution rights ("IDRs") which entitle it
to receive increasing percentages of the cash the Partnership distributes from
distributable cash flow in excess of $0.7676 per unit per quarter, up to a
maximum of 50.0%. The maximum distribution of 50% does not include any
distributions that Sprague Holdings may receive on any limited partner units
that it owns.

COVID-19

In 2022, a wide array of sectors continue to be affected by COVID-19, its
variants and the related supply chain disruptions brought on by the pandemic,
including but not limited to energy, transportation, manufacturing and
commercial and retail businesses and global economic conditions continue to be
volatile. With the easing of restrictions, health advancements and other ongoing
measures to alleviate the pandemic in 2021 and the first quarter of 2022, demand
for refined products appears to have normalized. In order to continue to
mitigate the effects of the pandemic, we continue to focus on the safety of
employees and other stakeholders as well as initiatives relating to cost
reduction, liquidity and operating efficiencies.

The Partnership makes estimates and assumptions that affect the reported amounts
on these consolidated financial statements and accompanying notes as of the date
of the financial statements. The Partnership assessed accounting estimates that
require consideration of forecasted financial information, including, but not
limited to, the allowance for credit losses, the carrying value of goodwill,
intangible assets, and other long-lived assets. This assessment was conducted in
the context of information reasonably available to the Partnership, as well as
consideration of the future potential impacts of COVID-19, and its variants, on
the Partnership's business as of March 31, 2022. While market conditions for our
products and services appear to have stabilized as compared to a year ago, the
pandemic remains fluid, indicating that the full impact may not have been
realized across our business and operations. The economic and operational
landscape has been altered, and it is difficult to determine whether such
changes are temporary or permanent, with challenges related to staffing, supply
chain, and transportation globally. Accordingly if the impact is more severe or
longer in duration than the partnership has assumed, such impact could
potentially result in impairments and increases in credit allowances. As we
strategize with regard to fiscal year 2022 and beyond, we continue to monitor
the evolving impacts of COVID-19 and its variants closely and adapting our
operations to changing demand patterns and the potential impact of the COVID-19
pandemic on future cash flows and access to adequate liquidity.

How management assesses our operating results

Our management uses a variety of financial and operational measures to analyze our performance. These measures include: (1) Adjusted EBITDA and Adjusted Gross Margin, (2) Operating Expenses, (3) Selling, General, and Administrative (or SG&A) Expenses, and (4) Degree Days of heating.

EBITDA, Adjusted EBITDA and Adjusted Gross Margin used in this quarterly report are non-GAAP financial measures.

EBITDA and Adjusted EBITDA


Management believes that adjusted EBITDA is an aid in assessing repeatable
operating performance that is not distorted by non-recurring items or market
volatility and the ability of our assets to generate sufficient revenue, that
when rendered to cash, will be available to pay interest on our indebtedness and
make distributions to our unitholders.

We define EBITDA as net income before interest, income taxes, depreciation and
amortization. We define adjusted EBITDA as EBITDA adjusted for the change in
unrealized hedging gains (losses) with respect to refined products and natural
gas inventory, and natural gas transportation contracts, adjusted for changes in
the fair value of contingent consideration, and adjusted for the impact of
acquisition related expenses.

EBITDA and Adjusted EBITDA are used as supplemental financial measures by external users of our financial statements, such as investors, commercial suppliers, research analysts and commercial banks to assess:

•The financial performance of our assets, operations and return on capital without regard to financing methods, capital structure or historical cost basis;

•The ability of our assets to generate sufficient income which, when returned in cash, will be available to pay interest on our debt and make distributions to our shareholders;

                                       23

————————————————– ——————————

Contents

•Repeatable operating performance not distorted by non-recurring items or market volatility; and

•The viability of acquisition and investment projects.


EBITDA and adjusted EBITDA are not prepared in accordance with GAAP and should
not be considered alternatives to net income or operating income, or any other
measure of financial performance presented in accordance with GAAP. EBITDA and
adjusted EBITDA exclude some, but not all, items that affect net income and
operating income.

The GAAP measure most directly comparable to EBITDA and adjusted EBITDA is net
income. EBITDA and adjusted EBITDA should not be considered as alternatives to
net income or cash provided by (used in) operating activities, or any other
measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA and adjusted EBITDA are not presentations made in accordance with GAAP
and have important limitations as analytical tools and should not be considered
in isolation or as substitutes for analysis of our results as reported under
GAAP. Because EBITDA and adjusted EBITDA exclude some, but not all, items that
affect net income and are defined differently by different companies, our
definitions of EBITDA and adjusted EBITDA may not be comparable to similarly
titled measures of other companies.

We recognize that the usefulness of EBITDA and Adjusted EBITDA as assessment tools may have certain limitations, including:


•EBITDA and adjusted EBITDA do not include interest expense. Because we have
borrowed money in order to finance our operations, interest expense is a
necessary element of our costs and impacts our ability to generate profits and
cash flows. Therefore, any measure that excludes interest expense may have
material limitations;

•EBITDA and adjusted EBITDA do not include depreciation charges. Because fixed assets, depreciation, and amortization are a necessary part of our costs and our ability to generate profits, any measure that excludes depreciation and amortization expenses can have significant limitations;


•EBITDA and adjusted EBITDA do not include provision for income taxes. Because
the payment of income taxes is a necessary element of our costs, any measure
that excludes income tax expense may have material limitations;

•EBITDA and Adjusted EBITDA do not reflect capital expenditures or future capital expenditure requirements or contractual commitments;

•EBITDA and Adjusted EBITDA do not reflect changes or cash requirements for working capital; and

•EBITDA and adjusted EBITDA do not allow us to analyze the effect of certain recurring and non-recurring items that significantly affect our net income.

Adjusted gross margin


Management purchases, stores and sells energy commodities that experience market
value fluctuations. To manage the Partnership's underlying performance,
including its physical and derivative positions, management utilizes adjusted
gross margin. In determining adjusted gross margin, management adjusts its
segment results for the impact of the changes in unrealized gains and losses
with regard to refined products and natural gas inventory, and natural gas
transportation contracts, which are not marked to market for the purpose of
recording unrealized gains or losses in net income. Adjusted gross margin is
also used by external users of our consolidated financial statements to assess
our economic results of operations and our commodity market value reporting to
lenders.

We define adjusted gross margin as net sales less cost of products sold
(exclusive of depreciation and amortization) adjusted for the impact of the
changes in unrealized gains and losses with regard to refined products and
natural gas inventory, and natural gas transportation contracts, which are not
marked to market for the purpose of recording unrealized gains or losses in net
income. Adjusted gross margin has no impact on reported volumes or net sales.

Adjusted gross margin is used as a supplemental financial measure by management to describe our operations and economic performance to investors, commercial suppliers, research analysts and commercial banks to assess:

•The economic results of our operations;

•The market value of our natural gas inventory and transportation contracts for financial reporting to our lenders, as well as for borrowing basis purposes; and

•Repeatable operational performance that is not distorted by non-recurring items or market volatility.

                                       24

————————————————– ——————————

Contents

Adjusted gross margin is not prepared in accordance with GAAP and should not be considered an alternative to net profit or operating profit or any other measure of financial performance presented in accordance with GAAP.


We define adjusted unit gross margin as adjusted gross margin divided by units
sold, as expressed in gallons for refined products and in MMBtus for natural
gas.

For a reconciliation of adjusted gross margin and adjusted EBITDA to the GAAP
measures most directly comparable, see the reconciliation tables included in
"Results of Operations." See Note 8 - Segment Reporting to our Condensed
Consolidated Financial Statements for a presentation of our financial results by
reportable segment.

Management evaluates our segment performance based on adjusted gross margin.
Based on the way we manage our business, it is not reasonably possible for us to
allocate the components of operating expenses, selling, general and
administrative expenses and depreciation and amortization among the operating
segments.

Operating Expenses

Operating expenses are costs associated with the operation of the terminals and
truck fleet used in our business. Employee wages, pension and 401(k) plan
expenses, boiler fuel, repairs and maintenance, utilities, insurance, property
taxes, services and lease payments comprise the most significant portions of our
operating expenses. Employee wages and related employee expenses included in our
operating expenses are incurred on our behalf by our General Partner and
reimbursed by us. These expenses remain relatively stable independent of the
volumes through our system but can fluctuate depending on the activities
performed during a specific period.

Selling, general and administrative expenses


Selling, general and administrative expenses ("SG&A") include employee salaries
and benefits, discretionary bonus, marketing costs, corporate overhead,
professional fees, information technology and office space expenses. Employee
wages, related employee expenses and certain rental costs included in our SG&A
expenses are incurred on our behalf by our General Partner and reimbursed by us.

Heating degree days


A "degree day" is an industry measurement of temperature designed to evaluate
energy demand and consumption. Degree days are based on how much the average
temperature departs from a human comfort level of 65°F. Each degree of
temperature above 65°F is counted as one cooling degree day, and each degree of
temperature below 65°F is counted as one heating degree day. Degree days are
accumulated over the course of a year and can be compared to a monthly or a
long-term average ("normal") to see if a month or a year was warmer or cooler
than usual. Degree days are officially observed by the National Weather Service
and archived by the National Climate Data Center. In order to incorporate more
recent average information and to better reflect the geographic locations of our
customer base, we report degree day information for Boston and New York City
(weighted equally) with a historical average for the same geographic locations
over the previous ten-year period.

Hedging activities


We hedge our inventory within the guidelines set in our risk management
policies. In a rising commodity price environment, the market value of our
inventory will generally be higher than the cost of our inventory. For GAAP
purposes, we are required to value our inventory at the lower of cost or net
realizable value. The hedges on this inventory will lose value as the value of
the underlying commodity rises, creating hedging losses. Because we do not
utilize hedge accounting, GAAP requires us to record those hedging losses in our
income statements. In contrast, in a declining commodity price market we
generally incur hedging gains. GAAP requires us to record those hedging gains in
our income statements.

The refined products inventory market valuation is calculated using daily
independent bulk market price assessments from major pricing services (either
Platts or Argus). These third-party price assessments are primarily based in
large, liquid trading hubs including but not limited to, New York Harbor (NYH)
or US Gulf Coast (USGC), with our inventory values determined after adjusting
these prices to the various inventory locations by adding expected cost
differentials (primarily freight) compared to one of these supply sources. Our
natural gas inventory is limited, with the valuation updated monthly based on
the volume and prices at the corresponding inventory locations. The prices are
based on the most applicable monthly Inside FERC, or IFERC, assessments
published by Platts near the beginning of the following month.

Similarly, we can hedge our natural gas transportation assets (i.e., pipeline
capacity) within the guidelines set in our risk management policy. Although we
do not own any natural gas pipelines, we secure the use of pipeline capacity to
support our
                                       25

————————————————– ——————————

Contents


natural gas requirements by either leasing capacity over a pipeline for a
defined time period or by being assigned capacity from a local distribution
company for supplying our customers. As the spread between the price of gas
between the origin and delivery point widens (assuming the value exceeds the
fixed charge of the transportation), the market value of the natural gas
transportation contracts assets will typically increase. If the market value of
the transportation asset exceeds costs, we may seek to hedge or "lock in" the
value of the transportation asset for future periods using available financial
instruments. For GAAP purposes, the increase in value of the natural gas
transportation assets is not recorded as income in the income statements until
the transportation is utilized in the future (i.e., when natural gas is
delivered to our customer). If the value of the natural gas transportation
assets increase, the hedges on the natural gas transportation assets lose value,
creating hedging losses in our income statements. The natural gas transportation
assets market value is calculated daily based on the volume and prices at the
corresponding pipeline locations. The daily prices are based on trader assessed
quotes which represent observable transactions in the market place, with the
end-month valuations primarily based on Platts prices where available or adding
a location differential to the price assessment of a more liquid location.

As described above, pursuant to GAAP, we value our commodity derivative hedges
at the end of each reporting period based on current commodity prices and record
hedging gains or losses, as appropriate. Also as described above, and pursuant
to GAAP, our refined products and natural gas inventory and natural gas
transportation contract rights, to which the commodity derivative hedges relate,
are not marked to market for the purpose of recording gains or losses. In
measuring our operating performance, we rely on our GAAP financial results, but
we also find it useful to adjust those numbers to reflect the changes in
unrealized gains and losses with regard to refined products and natural gas
inventory, and natural gas transportation contracts. By making such adjustments,
as reflected in adjusted gross margin and adjusted EBITDA, we believe that we
are able to align more closely hedging gains and losses to the period in which
the revenue from the sale of inventory and income from transportation contracts
relating to those hedges is realized.

Trends and factors affecting our business


In addition to the other information set forth in this report, please refer to
our 2021 Annual Report for a discussion of the trends and factors that impact
our business.
                                       26

————————————————– ——————————

Contents

Operating results


Our current and future results of operations may not be comparable to our
historical results of operations. Our results of operations may be impacted by,
among other things, swings in commodity prices, primarily in refined products
and natural gas, and acquisitions or dispositions. We use economic hedges to
minimize the impact of changing prices on refined products and natural gas
inventory. As a result, commodity price increases at the end of a period can
create lower gross margins as the economic hedges, or derivatives, for such
inventory may lose value, whereas an increase in the value of such inventory is
disregarded for GAAP financial reporting purposes and recorded at the lower of
cost or net realizable value. Please read "How Management Evaluates Our Results
of Operations."

The following tables set forth information regarding our results of operations
for the periods presented:

                                                             Three Months Ended March 31,                         Increase/(Decrease)
                                                              2022                      2021                      $                      %
                                                                                           (in thousands)
Net sales                                            $     1,813,315               $ 1,036,134          $          777,181                 75  %

Cost of goods sold (excluding depreciation and impairment)

                                              1,729,078                   924,782                     804,296                 87  %
Operating expenses                                            23,235                    19,232                       4,003                 21  %
Selling, general and administrative                           28,720                    25,239                       3,481                 14  %
Depreciation and amortization                                  8,126                     8,482                        (356)                (4) %
Total operating costs and expenses                         1,789,159                   977,735                     811,424                 83  %

Operating income                                              24,156                    58,399                     (34,243)               (59) %
Other income                                                      (1)                        2                          (3)              (150) %
Interest income                                                   28                        67                         (39)               (58) %
Interest expense                                             (10,572)                   (8,815)                      1,757                 20  %
Income before income taxes                                    13,611                    49,653                     (36,042)               (73) %
Income tax benefit (provision)                                 4,335                      (871)                     (5,206)              (598) %
Net income                                           $        17,946               $    48,782          $          (30,836)               (63) %



























                                       27

————————————————– ——————————

Contents

Reconciliation with adjusted gross margin, EBITDA and adjusted EBITDA


The following table sets forth a reconciliation of our consolidated operating
income to our total adjusted gross margin, a non-GAAP measure, for the periods
presented and a reconciliation of our consolidated net income to EBITDA and
Adjusted EBITDA, non-GAAP measures, for the periods presented. See above
"Management's Discussion and Analysis of Financial Condition and Results of
Operations - How Management Evaluates Our Results of Operations - EBITDA and
Adjusted EBITDA" of this report. The table below also presents information on
weather conditions for the periods presented.

                                                                  Three Months Ended March 31,
                                                                         2022                   2021
                                                                           

(in thousands) Reconciliation of operating income to adjusted gross margin: operating income

                                                  $       24,156           $    58,399

Operating expenses and expenses not allocated to operating segments: Operating expenses

                                                        23,235                19,232
Selling, general and administrative                                       28,720                25,239
Depreciation and amortization                                              8,126                 8,482

Add/(deduct):
Change in unrealized loss (gain) on inventory (1)                         15,369               (26,257)

Change in the unrealized value of natural gas transport contracts (2)

                                                             41,923                21,116
Total adjusted gross margin (3):                                  $      141,529           $   106,211
Adjusted Gross Margin by Segment:
Refined products                                                  $       54,126           $    51,033
Natural gas                                                               71,351                41,089
Materials handling                                                        13,130                12,076
Other operations                                                           2,922                 2,013
Total adjusted gross margin                                       $      141,529           $   106,211
Reconciliation of Net Income to Adjusted EBITDA
Net income                                                        $       17,946           $    48,782
Add/(deduct):
Interest expense, net                                                     10,544                 8,748
Tax provision                                                             (4,335)                  871
Depreciation and amortization                                              8,126                 8,482
EBITDA (3):                                                       $       32,281           $    66,883
Add/(deduct):
Change in unrealized loss (gain) on inventory (1)                         15,369               (26,257)

Change in the unrealized value of natural gas transport contracts (2)

                                                             41,923                21,116

Gain on sale of capital assets outside the normal course of business, including gain on insurance recoveries

   -                    (2)

Other adjustments (4)                                                         31                    35
Adjusted EBITDA                                                   $       89,604           $    61,775
Other Data:
Ten Year Average Heating Degree Days (5)                                   2,586                 2,606
Heating Degree Days (5)                                                    2,603                 2,539
Variance from average heating degree days                                      1   %                (3) %
Variance from prior period heating degree days                                 3   %                17  %


                                       28

————————————————– ——————————

Contents


(1)Inventory is valued at the lower of cost or net realizable value. The
adjustment related to change in unrealized gain on inventory which is not
included in net income, represents the estimated difference between inventory
valued at the lower of cost or net realizable value as compared to market
values. The fair value of the derivatives we use to economically hedge our
inventory declines or appreciates in value as the value of the underlying
inventory appreciates or declines, which creates unrealized hedging losses
(gains) with respect to the derivatives that are included in net income.
(2)Represents our estimate of the change in fair value of the natural gas
transportation contracts which are not recorded in net income until the
transportation is utilized in the future (i.e., when natural gas is delivered to
the customer), as these contracts are executory contracts that do not qualify as
derivatives. As the fair value of the natural gas transportation contracts
decline or appreciate, the offsetting physical or financial derivative will also
appreciate or decline creating unmatched unrealized hedging losses (gains) in
net income.
(3)For a discussion of the non-GAAP financial measures EBITDA, adjusted EBITDA
and adjusted gross margin, see "How Management Evaluates Our Results of
Operations."
(4)Represents accretion expense related to asset retirement obligations.
(5)For purposes of evaluating our results of operations, we use heating degree
day amounts as reported by the NOAA Regional Climate Center. In order to
incorporate recent average information and to reflect the geographic locations
of our customer base, we report degree day information for Boston and New York
City (weighted equally) with a historical average for the same geographic
locations over the previous ten-year period.














                                       29

————————————————– ——————————

Contents

Analysis of operating segments


Three Months Ended March 31, 2022 compared to Three Months Ended March 31, 2021

                                                        Three Months Ended March 31,                          Increase/(Decrease)
                                                         2022                       2021                      $                      %
                                                                     (in thousands, except adjusted unit gross margin)
Volumes:
Refined products (gallons)                             565,668                     515,845                      49,823                 10  %
Natural gas (MMBtus)                                    17,661                      18,835                      (1,174)                (6) %
Materials handling (short tons)                            631                         466                         165                 35  %
Materials handling (gallons)                            88,154                      57,859                      30,295                 52  %
Net Sales:
Refined products                               $     1,666,830                 $   916,201          $          750,629                 82  %
Natural gas                                            125,844                     102,575                      23,269                 23  %
Materials handling                                      13,093                      12,046                       1,047                  9  %
Other operations                                         7,548                       5,312                       2,236                 42  %
Total net sales                                $     1,813,315                 $ 1,036,134          $          777,181                 75  %
Adjusted Gross Margin:
Refined products                               $        54,126                 $    51,033          $            3,093                  6  %
Natural gas                                             71,351                      41,089                      30,262                 74  %
Materials handling                                      13,130                      12,076                       1,054                  9  %
Other operations                                         2,922                       2,013                         909                 45  %
Total adjusted gross margin                    $       141,529                 $   106,211          $           35,318                 33  %
Adjusted Unit Gross Margin:
Refined products                               $         0.096                 $     0.099          $           (0.003)                (3) %
Natural gas                                    $         4.040                 $     2.182          $            1.858                 85  %



Refined Products

Refined products net sales increased $750.6 million, or 82%, compared to the
same period last year, with the 66% higher average sales price the key factor.
Volumes were 10% higher, also contributing to the higher net sales. Prices were
generally on an upward trend throughout the period as concern over inventory
levels persisted. The price increases were particularly evident following the
late February invasion of the Ukraine by Russia and the associated geopolitical
unrest. Volume gains were higher for all product groups, with the increase the
highest for distillates. The percentage increase in volume was particularly
strong for transportation fuels, with Sprague's gain for both gasoline and
on-road diesel well above that for the overall United States. Residual fuel
volumes were also higher during this time period, partly due to the escalation
in prices of competing fuels such as natural gas and coal.

Refined products adjusted gross margin increased $3.1 million, or 6%, compared
to the same period last year as a result of the higher volumes. Overall unit
margins were 3% lower compared to the same period last year due to less
attractive conditions to purchase, store, and hedge oil inventory as well as
margin pressure in the escalating price environment. These negative factors were
particularly impactful to our Canadian operations.

Natural gas


Natural gas net sales increased $23.3 million, or 23%, compared to the same
period last year due to a 31% gain in average sales price. Volumes declined by
6% compared to the same period last year partially offsetting the impact of the
higher prices on net sales.

Natural gas adjusted gross margin increased $30.3 million, or 74%, compared to
the same period last year due to an increase in adjusted unit gross margins. The
gain in adjusted unit gross margins reflect higher prices and generally more
volatile market conditions compared to last year, impacted by periods of cold
weather and geopolitical tension following the invasion of Ukraine by Russia.
Price increases and higher volatility occurred in the cash as well as the
forward markets leading to supply, inventory, and forward position optimization
opportunities. In addition, in accordance with fair value standards under GAAP,
there was an $8.4 million gain associated with the quarterly fair value
measurement of the credit risk associated with our natural gas derivative assets
and liabilities.

                                       30

————————————————– ——————————

  Table of Contents



Materials Handling

Materials handling net sales and adjusted gross margin were $1.1 million, or 9%
higher than the same period last year. The gain was mostly due to an increase in
the Canadian operations, reflecting a higher level of 3rd-party storage. Margins
in the U.S. operations were up slightly at $0.1 million higher than last year,
with gains in salt, pulp, and general stevedoring requirements more than
offsetting a decline in asphalt. The largest changes were the reduction in
asphalt margin because of the sale of the Oswego, NY terminal in late April 2021
and the termination of the asphalt contract at the Everett, MA terminal at the
end of 2021 and the gain due to the higher salt margin following the low
activity last year.

Other operations


Net sales from other operations increased $2.2 million, or 42%, driven primarily
by higher coal volumes and prices compared to the same period last year. The
increased coal prices reflect the higher price environment for this commodity
that began in the latter part of 2021 as well as a further spike in prices
following the Russian invasion of the Ukraine in late February. Adjusted gross
margin was $0.9 million or 45% higher than last year, due largely to increased
coal margins, with a higher contribution from the Canadian trucking operations
also a factor.


Operating Costs and Expenses

Three Months Ended March 31, 2022 compared to Three Months Ended March 31, 2021

                                                   Three Months Ended March 31,                         Increase/(Decrease)
                                                     2022                  2021                       $                         %
                                                                                    (in thousands)
Operating expenses                            $        23,235          $   19,232          $              4,003                21%
Selling, general and administrative           $        28,720          $   25,239          $              3,481                14%
Depreciation and amortization                 $         8,126          $    8,482          $               (356)               (4)%
Interest expense, net                         $        10,544          $    8,748          $              1,796                21%


Operating Expenses. Operating expenses increased $4.0 million, or 21%, compared
to the same period last year, primarily reflecting an increase of $1.1 million
of insurance related costs, $1.0 million of utilities, $0.8 million of employee
related costs, $0.6 million of stockpile and boiler fuel expenses, and $0.3
million of vehicle fuel expenses.

Selling, general and administrative expenses. SG&A spending increased $3.5 millionor 14%, compared to the same period last year, mainly due to an increase in $1.6 million in legal costs, $0.7 million in commissions on sales,
$0.5 million in charge of variable compensation, $0.2 million in insurance-related costs, and $0.2 million in personnel costs.

Depreciation and amortization. Depreciation and amortization were roughly stable, with the increase in amortization expense offset by the decrease in amortization expense.


Interest Expense, net. Interest expense, net increased $1.8 million, or 21%,
compared to the same period last year primarily due to increased net borrowing
rates.


Cash and capital resources

Liquidity


Our primary liquidity needs are to fund our working capital requirements,
operating expenses, capital expenditures and quarterly distributions. Cash
generated from operations, our borrowing capacity under our Credit Agreement (as
defined below) and potential future issuances of additional partnership
interests or debt securities are our primary sources of liquidity. At March 31,
2022, we had a working capital deficit of $99.6 million.
                                       31

————————————————– ——————————

Contents


As of March 31, 2022, the undrawn borrowing capacity under the working capital
facilities of our Credit Agreement was $250.9 million and the undrawn borrowing
capacity under the acquisition facility was $48.3 million. We enter our seasonal
peak period during the fourth quarter of each year, during which inventory,
accounts receivable and debt levels increase. As we move out of the winter
season at the end of the first quarter of the following year, typically
inventory is reduced, accounts receivable are collected and converted into cash
and debt is paid down. During the three months ended March 31, 2022, the amount
drawn under the working capital facilities of our Credit Agreement fluctuated
from a low of $413.8 million to a high of $564.9 million.

We believe that we have sufficient liquid assets, cash flow from operations and
borrowing capacity under our Credit Agreement to meet our financial commitments,
debt service obligations, contingencies and anticipated capital expenditures.
However, we are subject to business and operational risks that could adversely
affect our cash flow. A material decrease in our cash flow would likely have an
adverse effect on our ability to meet our financial commitments and debt service
obligations.

Credit Agreement

On May 11, 2021, Sprague Operating Resources LLC (the "U.S. Borrower") and
Kildair Service ULC (the "Canadian Borrower" and, together with the U.S.
Borrower, the "Borrowers"), wholly owned subsidiaries of the Partnership,
entered into a first amendment (the "First Amendment") to the second amended and
restated credit agreement dated as of May 19, 2020 (the "Original Credit
Agreement"; the Original Credit Agreement as amended by the First Amendment, the
"Credit Agreement"). Upon the effective date, the First Amendment increased the
acquisition facility from $430 million to $450 million was accounted for as a
modification of a syndicated loan arrangement with partial extinguishment to the
extent there was a decrease in the borrowing capacity on a creditor by creditor
basis. The Credit Agreement matures on May 19, 2023. The Partnership and certain
of its subsidiaries (the "Subsidiary Guarantors") are guarantors of the
obligations under the Credit Agreement. Obligations under the Credit Agreement
are secured by substantially all of the assets of the Partnership, the Borrowers
and the Subsidiary Guarantors (collectively, the "Loan Parties").

As further described in Note 14 to the condensed consolidated financial statements, subsequent to the quarter ended March 31, 2022the Partnership has amended the Credit Agreement to modify certain terms of the Credit Facility described below.

To March 31, 2022the revolving credit facilities under the credit agreement contained, among other things, the following:



•A committed U.S. dollar revolving working capital facility of up to $465.0
million, subject to borrowing base limits, to be used for working capital loans
and letters of credit;

• Commitment WE revolving working capital facility of up to $200.0 millionsubject to borrowing base limits and at the sole discretion of the lenders, to be used for working capital loans and letters of credit;

• A multi-currency revolving working capital facility of up to $85.0 millionsubject to borrowing base limits, to be used for working capital loans and letters of credit;

• A revolving vesting facility of up to $450.0 million, subject to covenants, to be used for loans and letters of credit to fund capital expenditures and acquisitions and other general corporate purposes; and


•Subject to certain conditions, including the receipt of additional commitments
from lenders, the ability to increase the U.S. dollar revolving working capital
facility to up to $1.2 billion and the multicurrency revolving working capital
facility to up to $320.0 million. Additionally, subject to certain conditions,
the revolving acquisition facility may be increased to up to $750.0 million.

At March 31, 2022, indebtedness under the Credit Agreement bears interest, at
the Borrowers' option, at a rate per annum equal to either (i) the Eurocurrency
Rate (which is the LIBOR Rate for loans denominated in U.S. dollars and CDOR for
loans denominated in Canadian dollars, in each case adjusted for certain
regulatory costs, and in each case with a floor of 0.25%) for interest periods
of one, two (solely with respect to Eurocurrency Rate loans denominated in
Canadian dollars), three or six (solely with respect to Eurocurrency Rate loans
denominated in U.S. dollars) months plus a specified margin or (ii) an alternate
rate plus a specified margin.

At March 31, 2022, for loans denominated in U.S. dollars, the alternate rate is
the Base Rate which is the highest of (a) the U.S. Prime Rate as in effect from
time to time, (b) the greater of the Federal Funds Effective Rate and the
Overnight Bank Funding Rate as in effect from time to time plus 0.50% and
(c) the one-month Eurocurrency Rate for U.S. dollars as in effect from time to
time plus 1.00%.
                                       32

————————————————– ——————————

Contents

To March 31, 2022for loans denominated in Canadian dollars, the alternate rate is the prime rate which is the greater of (a) the Canadian prime rate in effect from time to time and (b) the one-month Eurocurrency rate for WE
dollars in effect from time to time plus 1.00%.


At March 31, 2022, the specified margins for the working capital revolving
facilities vary based on the utilization of the working capital facilities as a
whole, measured on a quarterly basis. The specified margin for (x) the committed
U.S. dollar revolving working capital facility range from 1.00% to 1.50% for
loans bearing interest at the Base Rate and from 2.00% to 2.50% for loans
bearing interest at the Eurocurrency Rate, (y) the uncommitted U.S. dollar
revolving working capital facility range from 0.75% to 1.25% for loans bearing
interest at the Base Rate and 1.75% to 2.25% for loans bearing interest at the
Eurocurrency Rate and (z) the multicurrency revolving working capital facility
range from 1.00% to 1.50% for loans bearing interest at the Base Rate and 2.00%
to 2.50% for loans bearing interest at the Eurocurrency Rate.

At of March 31, 2022, the specified margin for the revolving acquisition
facility varies based on the consolidated total leverage of the Loan Parties.
The specified margin for the revolving acquisition facility range from 1.25% to
2.25% for loans bearing interest at the Base Rate and from 2.25% to 3.25% for
loans bearing interest at the Eurocurrency Rate.

In addition, the Borrowers will incur a commitment fee on the unused portion of
(x) the committed U.S. dollar revolving working capital facility and
multicurrency revolving working capital facility ranging from 0.375% to 0.500%
per annum and (y) the revolving acquisition facility at a rate ranging from
0.35% to 0.50% per annum. Overdue amounts bear interest at the applicable rates
described above plus an additional margin of 2%.

The Credit Agreement contains various covenants and restrictive provisions that,
among other things, prohibit the Partnership from making distributions to
unitholders if any event of default occurs or would result from the distribution
or if the Loan Parties would not be in pro forma compliance with the financial
covenants after giving effect to the distribution. In addition, the Credit
Agreement contains various covenants that are usual and customary for a
financing of this type, size and purpose, including, but not limited to,
covenants that require the Loan Parties to maintain: a minimum consolidated
EBITDA-to-fixed charge ratio, a minimum consolidated net working capital amount
and a maximum consolidated total leverage-to-EBITDA ratio. The Credit Agreement
also limits the Loan Parties ability to incur debt, grant liens, make certain
investments or acquisitions, enter into affiliate transactions and dispose of
assets. The Partnership was in compliance with the covenants under the Credit
Agreement at March 31, 2022.

The Credit Agreement also contains events of default that are usual and
customary for a financing of this type, size and purpose including, among
others, non-payment of principal, interest or fees, violation of certain
covenants, material inaccuracy of representations and warranties, bankruptcy and
insolvency events, cross-payment default and cross-acceleration, material
judgments and events constituting a change of control. If an event of default
exists under the Credit Agreement, the lenders will be able to terminate the
lending commitments, accelerate the maturity of the Credit Agreement and
exercise other rights and remedies with respect to the collateral.

Off-balance sheet arrangements

We have no off-balance sheet arrangements.

Capital expenditure


Our terminals require investments to maintain, expand, upgrade or enhance
existing assets and to comply with environmental and operational regulations.
Our capital requirements primarily consist of maintenance capital expenditures
and expansion capital expenditures. We define maintenance capital expenditures
as capital expenditures made to replace assets, or to maintain the long-term
operating capacity of our assets or operating income. Examples of maintenance
capital expenditures are expenditures required to maintain equipment
reliability, terminal integrity and safety and to address environmental laws and
regulations. Costs for repairs and minor renewals to maintain facilities in
operating condition and that do not extend the useful life of existing assets
will be treated as maintenance expenses as we incur them. We define expansion
capital expenditures as capital expenditures made to increase the long-term
operating capacity of our assets or our operating income whether through
construction or acquisition of additional assets. Examples of expansion capital
expenditures include the acquisition of equipment and the development or
acquisition of additional storage capacity, to the extent such capital
expenditures are expected to expand our operating capacity or our operating
income.

The following table summarizes expansion and maintenance capital expenditures for the periods indicated:

                                       33

————————————————– ——————————

  Table of Contents

                                                      Capital Expenditures
                                            Expansion      Maintenance        Total
                                                         (in thousands)
            Three Months Ended March 31,
            2022                           $     826      $      1,963      $ 2,789
            2021                           $     798      $      1,333      $ 2,131



We anticipate that future maintenance capital expenditures will be funded with
cash generated by operations and that future expansion capital requirements will
be provided through long-term borrowings or other debt financings and/or equity
offerings.

Cash Flows

                                                     Three Months Ended March 31,
                                                         2022                   2021
                                                            (in thousands)
  Net cash provided by operating activities   $        92,923               

$88,468

  Net cash used in investing activities       $        (2,613)              

($1,923)

  Net cash used in financing activities       $       (86,413)               $ (83,220)


Operating Activities

Net cash provided by operating activities for the three months ended March 31,
2022 was $92.9 million. Cash inflows for the period were the result of an
increase of $8.8 million in accounts payable and accrued liabilities primarily
relating to the timing of invoice payments for product purchases, a decrease of
$136.2 million in inventories primarily due to less attractive market conditions
to purchase, store and hedge oil compared to last year, $84.1 million
representing the net impact in our derivative instruments as a result of
contract activity and changes in commodity prices during the period and net
income of $17.9 million. These inflows were partially offset by cash outflows as
a result of an increase of $81.1 million in accounts receivable and an increase
of $82.1 million in other assets driven by changes in collateral.

Net cash provided by operating activities for the three months ended March 31,
2021 was $88.5 million. Cash inflows for the period were the result of a
decrease of $67.2 million in inventories largely due to a reduction in seasonal
inventory requirements, net income of $48.8 million, and a decrease of $20.6
million in other assets driven by changes in collateral. These inflows were
offset by cash outflows as a result of an increase of $28.3 million in accounts
receivable driven by a combination of higher sales prices and volumes, a
reduction of $17.0 million in accounts payable and accrued liabilities primarily
relating to the timing of invoice payments for product purchases and $9.6
million representing the net impact in our derivative instruments as a result of
contract activity and changes in commodity prices during the period.

Investing activities


Net cash used in investing activities for the three months ended March 31, 2022
was $2.6 million and primarily resulted from $0.8 million related to expansion
capital expenditures and $2.0 million related to maintenance capital expenditure
projects across our terminal system.

Net cash used in investing activities for the three months ended March 31, 2021
was $1.9 million, and primarily resulted from $0.8 million related to expansion
capital expenditures and $1.3 million related to maintenance capital
expenditures projects across our terminal system.


Fundraising activities


Net cash used in financing activities for the three months ended March 31, 2022
was $86.4 million, and primarily resulted from $73.2 million of payments under
our Credit Agreement due to financing requirements and distributions of $11.4
million.

Net cash used in financing activities for the three months ended March 31, 2021
was $83.2 million, and primarily resulted from 62.7 million of payments under
our Credit Agreement due to reduced financing requirements from accounts
receivable levels, the reduction of inventory levels and distributions of $17.4
million.



                                       34

————————————————– ——————————

Contents

Impact of inflation


While inflation in the United States and Canada has been relatively low in
recent years, it has accelerated in the last 12 months. Although we do not
believe that inflation had a material impact on our results of operations or
financial position for the three months ended March 31, 2022 and 2021, a high
rate of inflation in the future may have an adverse effect on our operating
results depending upon how inflationary pressure impacts the sales price of our
products versus the product costs and operating expenses necessary to generate
and support the selling of these products. In addition, inflation could
materially increase the interest rates on our borrowings under our Credit
Agreement or any future debt.

Significant Accounting Policies and Estimates


Part I, Item, 2, "Management's Discussion and Analysis of Financial Condition
and Results of Operations" discusses our Condensed Consolidated Financial
Statements, which have been prepared in accordance with GAAP. The preparation of
these Condensed Consolidated Financial Statements requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date
of the Condensed Consolidated Financial Statements and the reported amounts of
revenues and expenses during the reporting period. Actual results may differ
from these estimates under different assumptions or conditions.

These estimates are based on our knowledge and understanding of current
conditions and actions that we may take in the future. Changes in these
estimates will occur as a result of the passage of time and the occurrence of
future events. Subsequent changes in these estimates may have a significant
impact on our financial condition and results of operations and are recorded in
the period in which they become known. We have identified the following
estimates that, in our opinion, are subjective in nature, require the exercise
of judgment and involve complex analysis: the fair value of derivative assets
and liabilities, goodwill impairment assessment, and revenue recognition and
cost of products sold.

The significant accounting policies and estimates that have been adopted and
followed in the preparation of our Condensed Consolidated Financial Statements
are detailed in Note 1 - Description of Business and Summary of Significant
Accounting Policies included in our 2021 Annual Report. There have been no
changes in these policies and estimates that had a significant impact on the
financial condition and results of operations for the periods covered in this
Quarterly Report.

Recent accounting pronouncements

For information on recent accounting pronouncements affecting our business, see “Recent Accounting Pronouncements” included in Note 1 – Description of Business and Summary of Significant Accounting Policies to our Condensed Consolidated Financial Statements.

                                       35

————————————————– ——————————

Contents

© Edgar Online, source Previews

]]>
CONTINENTAL RESOURCES, INC Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://preservethenati.org/continental-resources-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Wed, 04 May 2022 20:49:11 +0000 https://preservethenati.org/continental-resources-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto included elsewhere in this report and our historical consolidated financial statements and notes included in our Form 10-K for the year ended December 31, 2021. The following discussion and analysis includes forward-looking statements and should […]]]>
The following discussion and analysis should be read in conjunction with the
unaudited condensed consolidated financial statements and notes thereto included
elsewhere in this report and our historical consolidated financial statements
and notes included in our Form 10-K for the year ended December 31, 2021.

The following discussion and analysis includes forward-looking statements and
should be read in conjunction with the risk factors described in Part II,
Item 1A. Risk Factors included in this report, if any, and in our Form 10-K for
the year ended December 31, 2021, along with Cautionary Statement for the
Purpose of the "Safe Harbor" Provisions of the Private Securities Litigation
Reform Act of 1995 at the beginning of this report, for information about the
risks and uncertainties that could cause our actual results to be materially
different than our forward-looking statements.

Insight


We are an independent crude oil and natural gas company engaged in the
exploration, development, management, and production of crude oil and natural
gas and associated products with properties primarily located in four leading
basins in the United States - the Bakken field of North Dakota and Montana, the
Anadarko Basin of Oklahoma, the Permian Basin of Texas, and the Powder River
Basin of Wyoming. Additionally, we pursue the acquisition and management of
perpetually owned minerals located in certain of our key operating areas. We
derive the majority of our operating income and cash flows from the sale of
crude oil, natural gas, and natural gas liquids and expect this to continue in
the future. Our common stock trades on the New York Stock Exchange under the
symbol "CLR" and our corporate internet website is www.clr.com.

First Quarter 2022 Highlights

Financial and operational highlights for the first quarter of 2022 are summarized below.

• Generated $1.5 billion operating cash flow in the first quarter of 2022, an increase of $464 millioni.e. 45%, compared to the first quarter of 2021.

• Strategic acquisition finalized to further expand our business in the Powder River Basin for a cash consideration of $403 million.

•Increase of our quarterly fixed dividend by 15% for $0.23 per common share paid on March 4, 2022.

• Increase in the size of our share buyback program by $1.0 billion for $1.5 billionincluding cumulative amounts redeemed to date.


•Repurchased 1.84 million shares at an aggregate cost of $100 million in the
2022 first quarter, bringing cumulative repurchases to 18.81 million shares at
an aggregate cost of $541 million.

•Announced $250 million strategic investment in Summit Carbon Solutions to fund
development of carbon capture and sequestration infrastructure; funded $62.5
million of our commitment in the 2022 first quarter.

• Reduction of outstanding debt by $265 million in the first quarter of 2022.

Financial and operational measures


Commodity prices have increased significantly in 2022 compared to 2021 levels
resulting from the ongoing rebalancing of crude oil and natural gas supply and
demand fundamentals coupled with the disruption of global hydrocarbon markets
prompted by the outbreak of military conflict between Russia and Ukraine. The
increase in commodity prices contributed to improved operating results and cash
flows in the first quarter of 2022 compared to the first quarter of 2021.
Commodity prices remain volatile and unpredictable and our operating results for
the 2022 first quarter may not be indicative of future results. Given the
uncertainty surrounding the Russia/Ukraine conflict and ongoing volatility in
commodity prices, we are unable to predict the extent to which the conflict or
other factors will have on the Company's performance during the remainder of
2022 and beyond.

The following table contains financial and operating measures for the periods presented. Average net selling prices exclude any effects of derivative transactions. Unit charges were calculated using sales volumes.

                                       20
--------------------------------------------------------------------------------

Three months completed March, 31st,

                                                                                 2022                   2021
Average daily production:
Crude oil (Bbl per day)                                                          194,767               151,852
Natural gas (Mcf per day) (1)                                                  1,074,255               936,540
Crude oil equivalents (Boe per day)                                              373,810               307,942
Average net sales prices (2):
Crude oil ($/Bbl)                                                         $        90.83           $     53.09
Natural gas ($/Mcf) (1)                                                   $         6.34           $      5.56
Crude oil equivalents ($/Boe)                                             $        65.51           $     43.11
Crude oil net sales price discount to NYMEX ($/Bbl)                       $        (3.47)          $     (4.52)
Natural gas net sales price premium to NYMEX ($/Mcf) (1)                  $         1.43           $      2.87
Production expenses ($/Boe)                                               $         4.09           $      3.35

Production and ad valorem taxes (% of net sales of crude oil and natural gas)

                                                                               7.2   %               7.0  %
Depreciation, depletion, amortization and accretion ($/Boe)               $        13.67           $     18.35
Total general and administrative expenses ($/Boe)                         $         2.23           $      1.90


 (1)   Natural gas production volumes, sales volumes, and net sales prices
presented throughout management's discussion and analysis reflect the combined
value for natural gas and natural gas liquids.
(2)  See the subsequent section titled Non-GAAP Financial Measures for a
discussion and calculation of net sales prices, which are non-GAAP measures.

Three months completed March 31, 2022 compared to the three months ended March 31, 2021


Results of Operations

The following table presents selected financial and operational information for the periods presented.


                                                                                 Three months ended March 31,
In thousands                                                                      2022                      2021
Crude oil, natural gas, and natural gas liquids sales                    $     2,274,261               $ 1,247,533
Loss on derivative instruments, net                                             (475,938)                  (43,507)
Crude oil and natural gas service operations                                      17,915                    11,789
Total revenues                                                                 1,816,238                 1,215,815
Operating costs and expenses                                                    (950,021)                 (810,117)
Other expenses, net                                                              (73,782)                  (64,895)
Income before income taxes                                                       792,435                   340,803
Provision for income taxes                                                      (191,084)                  (80,528)
Net income                                                                       601,351                   260,275
Net income attributable to noncontrolling interests                                3,594                       633
Net income attributable to Continental Resources                         $       597,757               $   259,642
Production volumes:
Crude oil (MBbl)                                                                  17,529                    13,667
Natural gas (MMcf)                                                                96,683                    84,289
Crude oil equivalents (MBoe)                                                      33,643                    27,715
Sales volumes:
Crude oil (MBbl)                                                                  17,461                    13,726
Natural gas (MMcf)                                                                96,683                    84,289
Crude oil equivalents (MBoe)                                                      33,575                    27,774




                                       21
--------------------------------------------------------------------------------

Production


The following table summarizes the changes in our average daily Boe production
by major operating area for the first quarter period.
Boe production per day           1Q 2022          1Q 2021        % Change
Bakken                         171,401          160,577               7  %
Anadarko Basin                 143,963          138,386               4  %
Powder River Basin              11,653            2,464             373  %
Permian Basin                   40,248                -               -  %
All other                        6,545            6,515               -  %
Total                          373,810          307,942              21  %


The following table summarizes the changes in our production by product for the
first quarter period.

                                                                 Three months ended March 31,                                                             Volume
                                                       2022                                        2021                            Volume                percent
                                            Volume               Percent                Volume               Percent              increase               increase
Crude oil (MBbl)                              17,529                   52  %              13,667                   49  %            3,862                       28  %
Natural gas (MMcf)                            96,683                   48  %              84,289                   51  %           12,394                       15  %
Total (MBoe)                                  33,643                  100  %              27,715                  100  %            5,928                       21  %


The 28% increase in crude oil production in the 2022 first quarter was primarily
driven by our property acquisitions in the Permian Basin and Powder River Basin
over the past year, which increased our 2022 first quarter production by 2,807
MBbls and 657 MBbls, respectively, compared to the 2021 first quarter.
Additionally, crude oil production in the Bakken increased 581 MBbls, or 6%,
compared to the 2021 first quarter due to new well completions over the past
year.

The 15% increase in natural gas production in the 2022 first quarter was due in
part to the previously described property acquisitions over the past year.
Properties acquired in the Permian Basin increased our 2022 first quarter
production by 4,887 MMcf while properties acquired in the Powder River Basin
increased our production by 1,022 MMcf compared to the 2021 first quarter.
Additionally, natural gas production in the Anadarko Basin increased 4,055 MMcf,
or 7%, and production in the Bakken increased 2,359 MMcf, or 8%, over the 2021
first quarter due to new well completions over the past year.

Revenue


Net crude oil, natural gas, and natural gas liquids sales and related net sales
prices presented below are non-GAAP measures. See the subsequent section titled
Non-GAAP Financial Measures for a discussion and calculation of these measures.

Net crude oil, natural gas, and natural gas liquids sales. Net sales totaled
$2.20 billion for the first quarter of 2022, an 84% increase compared to net
sales of $1.20 billion for the 2021 first quarter due to significant increases
in net sales prices and sales volumes as discussed below.

Total sales volumes for the first quarter of 2022 increased 5,801 MBoe, or 21%,
compared to the 2021 first quarter primarily due to new wells added from our
previously described property acquisitions over the past year. For the first
quarter of 2022, our crude oil sales volumes increased 27% and our natural gas
sales volumes increased 15% compared to the 2021 first quarter.

Our crude oil net sales prices averaged $90.83 per barrel in the 2022 first
quarter compared to $53.09 per barrel for the 2021 first quarter due to the
previously described increase in market prices along with improved price
differentials. The differential between NYMEX West Texas Intermediate calendar
month prices and our realized crude oil net sales prices improved to an average
of $3.47 per barrel for the 2022 first quarter compared to $4.52 per barrel for
the 2021 first quarter, reflecting strong price realizations across our assets.

Our natural gas net sales prices averaged $6.34 per Mcf for the 2022 first
quarter compared to $5.56 per Mcf for the 2021 first quarter due to the
previously described increase in market prices. The difference between our net
sales prices and NYMEX Henry Hub calendar month natural gas prices was a premium
of $1.43 per Mcf for the 2022 first quarter compared to a premium of $2.87 per
Mcf for the 2021 first quarter. In February 2021, severe winter weather and
freezing temperatures in the southern United States led to a period of increased
spot prices for residue natural gas that resulted in a significant improvement
in our price realizations compared to benchmark prices in the 2021 first quarter
with no similar impact in the 2022 first quarter.
                                       22
--------------------------------------------------------------------------------

Derivatives. The significant improvement in commodity prices during the first
quarter of 2022 had a significant unfavorable impact on the fair value of our
derivatives, which resulted in negative revenue adjustments of $475.9 million
for the period, representing $22.2 million of cash losses and $453.7 million of
unsettled non-cash losses. For the 2021 first quarter, we recognized negative
revenue adjustments associated with our derivatives totaling $43.5 million
resulting from changes in market prices that had an unfavorable impact on the
fair value of our derivatives.

Crude oil and natural gas service operations. Our crude oil and natural gas
service operations consist primarily of revenues associated with water
gathering, recycling, and disposal activities, which are impacted by our
production volumes and the timing and extent of our drilling and completion
projects. Revenues associated with such activities increased $6.1 million, or
52%, from $11.8 million for the first quarter of 2021 to $17.9 million for the
first quarter of 2022 due to increased water handling activities resulting from
the previously described increase in production volumes compared to the 2021
first quarter, which also produced a corresponding increase in service-related
operating expenses in the current period.

Operating costs and expenses


Production Expenses. Production expenses increased $44.2 million, or 48%, to
$137.3 million for the first quarter of 2022 compared to $93.1 million for the
first quarter of 2021 due to an increase in the number of producing wells, the
associated 21% increase in total sales volumes, and higher workover-related
activities aimed at enhancing production from producing properties prompted by
the favorable commodity price environment. Production expenses on a per-Boe
basis averaged $4.09 per Boe for the 2022 first quarter compared to $3.35 per
Boe for the 2021 first quarter, the increase of which primarily reflects higher
workover-related activities.

Production and Ad Valorem Taxes. Production and ad valorem taxes increased $74.4
million, or 89%, to $158.4 million for the first quarter of 2022 compared to
$84.0 million for the first quarter of 2021 due to the previously described
increase in sales. Our production taxes as a percentage of net sales averaged
7.2% for the first quarter of 2022, consistent with 7.0% for the first quarter
of 2021.

Exploration Expenses. Exploration expenses, which consist primarily of
exploratory geological and geophysical costs and dry hole costs that are
expensed as incurred, increased $8.4 million to $13.0 million for the first
quarter of 2022 compared to $4.6 million for the first quarter of 2021. The 2022
first quarter includes $10.4 million of dry hole costs associated with an
unsuccessful exploratory well with no comparable dry hole costs incurred in the
prior year period.

Depreciation, Depletion, Amortization and Accretion. Total DD&A decreased $50.6
million, or 10%, to $459.0 million for the first quarter of 2022 compared to
$509.6 million for the first quarter of 2021 primarily due to a decrease in our
DD&A rate per Boe as further discussed below, partially offset by the previously
described 21% increase in total sales volumes. The following table shows the
components of our DD&A on a unit of sales basis for the periods presented.

                                                                             Three months ended March 31,
$/Boe                                                                         2022                   2021
Crude oil and natural gas                                               $        13.37          $     18.03
Other equipment                                                                   0.21                 0.22
Asset retirement obligation accretion                                             0.09                 0.10
Depreciation, depletion, amortization and accretion                     $   

13.67 $18.35



Estimated proved reserves are a key component in our computation of DD&A
expense. Proved reserves are determined using the unweighted arithmetic average
of the first-day-of-the-month commodity prices for the preceding twelve months
as required by SEC rules. Holding all other factors constant, if proved reserves
are revised downward due to commodity price declines or other reasons, the rate
at which we record DD&A expense increases. Conversely, if proved reserves are
revised upward, the rate at which we record DD&A expense decreases.

Upward revisions of proved reserves at year-end 2021 prompted by a significant
increase in average commodity prices and other factors resulted in a decrease in
our DD&A rate for crude oil and natural gas properties in the first quarter of
2022 compared to the first quarter of 2021.

Property Impairments. Total property impairments increased $12.8 million to
$24.2 million for the first quarter of 2022 compared to $11.4 million for the
first quarter of 2021, reflecting an $11.8 million proved property impairment
recognized in the current period on a property in an emerging play with no
proved property impairments being recognized in the prior period.

General and Administrative Expenses. Total G&A expenses increased $22.0 million,
or 42%, to $74.8 million for the first quarter of 2022 compared to $52.8 million
for the first quarter of 2021.
                                       23
--------------------------------------------------------------------------------

Total G&A expenses include non-cash charges for equity compensation of $29.3
million and $16.9 million for the first quarters of 2022 and 2021, respectively.
This increase was primarily driven by approximately $10 million of incremental
expenses recognized on restricted stock awards whose vesting terms were modified
and accelerated in the 2022 first quarter upon the retirement of certain
management personnel from the Company.

G&A expenses other than equity compensation totaled $45.5 million for the 2022
first quarter, an increase of $9.6 million compared to $35.9 million for the
2021 first quarter primarily due to an increase in payroll costs and employee
benefits.

The following table shows the components of G&A expenses on a sales unit basis for the periods presented.


                                                       Three months ended March 31,
$/Boe                                                        2022           

2021

General and administrative expenses            $          1.36                      $ 1.29
Non-cash equity compensation                              0.87              

0.61

Total general and administrative expenses      $          2.23              

$1.90



Interest Expense. Interest expense increased $7.6 million, or 12%, to $72.6
million for the first quarter of 2022 compared to $65.0 million for the first
quarter of 2021 due to an increase in our weighted average outstanding debt
balance from $5.5 billion for the first quarter of 2021 to $6.8 billion for the
first quarter of 2022. This increase was driven by debt incurred in the fourth
quarter of 2021 to fund a portion of our December 2021 acquisition of properties
in the Permian Basin.

Income Taxes. For the first quarters of 2022 and 2021 we provided for income
taxes at a combined federal and state tax rate of 24.5% of our pre-tax income.
We recorded an income tax provision of $191.1 million for the 2022 first quarter
and an income tax provision of $80.5 million for the 2021 first quarter, which
resulted in effective tax rates of 24.1% and 23.6%, respectively, after taking
into account statutory tax rates, permanent taxable differences, tax effects
from equity compensation, changes in valuation allowances, and other items. See
Notes to Unaudited Condensed Consolidated Financial Statements-Note 12. Income
Taxes for a summary of the sources and tax effects of items comprising our
effective tax rates.

Cash and capital resources


Our primary sources of liquidity have historically been cash flows generated
from operating activities, financing provided by our credit facility and the
issuance of debt securities. Additionally, asset dispositions and joint
development arrangements have provided a source of cash flow for use in reducing
debt and enhancing liquidity. We are committed to operating in a responsible
manner to preserve financial flexibility, liquidity, and the strength of our
balance sheet.

At April 30, 2022, we had $55 million in outstanding borrowings and
$1.94 billion of borrowing availability under our credit facility, which
represents a $180 million increase in availability compared to March 31, 2022.
Our credit facility, which is unsecured and has no borrowing base subject to
redetermination, does not mature until October 2026.

Based on our planned capital spending, our forecasted cash flows and projected
levels of indebtedness, we expect to maintain compliance with the covenants
under our credit facility and senior note indentures. Further, based on current
market indications, we expect to meet our contractual cash commitments to third
parties as of March 31, 2022, including those subsequently described under the
heading Future Capital Requirements, recognizing we may be required to meet such
commitments even if our business plan assumptions were to change. We monitor our
capital spending closely based on actual and projected cash flows and have the
ability to reduce spending or dispose of assets if needed to preserve liquidity
and financial flexibility to fund our operations.

Cash flow

Cash flow from operating activities


Net cash provided by operating activities increased $464 million, or 45%, to
$1.50 billion for the first quarter of 2022 compared to $1.04 billion for the
first quarter of 2021 driven by a $1.0 billion increase in crude oil, natural
gas, and NGL revenues due to the previously described increases in commodity
prices and sales volumes in the current period. This increase was partially
offset by a $74.0 million increase in production and ad valorem taxes associated
with higher revenues and increases in certain other cash operating expenses
primarily due to an increase in sales volumes and growth of our Company over the
past year, which included a $44.2 million increase in production expenses and a
$24.6 million increase in transportation, gathering, processing, and compression
expenses.
                                       24
--------------------------------------------------------------------------------

Cash flow from investing activities


Net cash used in investing activities increased $613 million to $1.04 billion
for the first quarter of 2022 compared to $428 million for the first quarter of
2021, reflecting our planned increase in budgeted spending and an increase in
the magnitude of property acquisitions in the 2022 first quarter.
Non-acquisition capital expenditures attributable to us for full year 2022 are
budgeted to be between $2.6 billion and $2.7 billion compared to $1.54 billion
of non-acquisition capital spending for full year 2021. Our investing cash flows
for first quarter 2022 include $403 million paid to acquire properties in the
Powder River Basin as discussed in Note 3. Property Acquisitions and
$62.5 million paid for the new strategic investment described in Note 13. Equity
Investment in Notes to Unaudited Condensed Consolidated Financial Statements.

Cash flow from financing activities


Net cash used in financing activities for the first quarter of 2022 totaled
$480.2 million, primarily consisting of $265 million of net repayments on our
credit facility, $83 million of cash dividends paid on common stock, and $100
million of cash used to repurchase shares of our common stock.

Net cash used in financing activities for the first quarter of 2021 totaled
$564.6 million, primarily consisting of $400 million of cash used to redeem a
portion of our then-outstanding 2022 Notes in January 2021 and $160 million of
net repayments on our credit facility.

Future funding sources


Although we cannot provide any assurance, we believe funds from operating cash
flows, our cash balance, and availability under our credit facility should be
sufficient to meet our normal operating needs, debt service obligations,
budgeted capital expenditures, cash payments for income taxes, and dividend
payments for at least the next 12 months and to meet our contractual cash
commitments to third parties beyond 12 months.

Based on current market indications, our budgeted capital spending plans for
2022 are expected to be funded from operating cash flows. Any deficiencies in
operating cash flows relative to budgeted spending are expected to be funded by
borrowings under our credit facility. If cash flows are materially impacted by
declines in commodity prices, we have the ability to reduce our capital
expenditures or utilize the availability of our credit facility if needed to
fund our operations and business plans. We may choose to access banking or
capital markets for additional financing or capital to fund our operations or
take advantage of business opportunities that may arise. Further, we may sell
assets or enter into strategic joint development opportunities in order to
obtain funding if such transactions can be executed on satisfactory terms.
However, no assurance can be given that such transactions will occur.

Credit facility


We have an unsecured credit facility, maturing in October 2026, with aggregate
lender commitments totaling $2.0 billion. The commitments are from a syndicate
of 12 banks and financial institutions. We believe each member of the current
syndicate has the capability to fund its commitment. As of April 30, 2022, we
had $1.94 billion of borrowing availability on our credit facility after
considering outstanding borrowings and letters of credit.

The commitments under our credit facility are not dependent on a borrowing base
calculation subject to periodic redetermination based on changes in commodity
prices and proved reserves. Additionally, downgrades or other negative rating
actions with respect to our credit rating do not trigger a reduction in our
current credit facility commitments, nor do such actions trigger a security
requirement or change in covenants. Downgrades of our credit rating will,
however, trigger increases in our credit facility's interest rates and
commitment fees paid on unused borrowing availability under certain
circumstances.

Our credit facility contains restrictive covenants that may limit our ability
to, among other things, incur additional indebtedness, incur liens, engage in
sale and leaseback transactions, or merge, consolidate or sell all or
substantially all of our assets. Our credit facility also contains a requirement
that we maintain a consolidated net debt to total capitalization ratio of no
greater than 0.65 to 1.00. See Notes to Unaudited Condensed Consolidated
Financial Statements-Note 8. Long-Term Debt for a discussion of how this ratio
is calculated pursuant to our credit agreement.

We were in compliance with our credit facility covenants at March 31, 2022 and
expect to maintain such compliance. At March 31, 2022, our consolidated net debt
to total capitalization ratio was 0.41. We do not believe the credit facility
covenants are reasonably likely to limit our ability to undertake additional
debt financing if needed to support our business.
                                       25
--------------------------------------------------------------------------------

Future capital needs


Our material future cash requirements are summarized below. Based on current
market indications, we expect to meet our contractual cash commitments to third
parties as of March 31, 2022, recognizing we may be required to meet such
commitments even if our business plan assumptions were to change.

Senior ratings


Our debt includes outstanding senior note obligations totaling $6.36 billion at
March 31, 2022, exclusive of interest payment obligations thereon. Our senior
notes are not subject to any mandatory redemption or sinking fund requirements.
The earliest scheduled senior note maturity is our $649.6 million of 2023 Notes
due in April 2023. We expect to be able to generate or obtain sufficient funds
necessary to fully redeem our 2023 Notes prior to maturity. For further
information on the face values, maturity dates, semi-annual interest payment
dates, optional redemption periods and covenant restrictions related to our
senior notes, refer to Note 8. Long-Term Debt in Notes to Unaudited Condensed
Consolidated Financial Statements.

We were in compliance with our senior note covenants at March 31, 2022 and
expect to maintain such compliance. We do not believe the senior note covenants
will materially limit our ability to undertake additional debt financing.
Downgrades or other negative rating actions with respect to the credit ratings
assigned to our senior unsecured debt do not trigger additional senior note
covenants.

Borrowings from credit facility


As of April 30, 2022, we had $55 million of outstanding borrowings on our credit
facility, which represents a decrease of $180 million compared to $235 million
outstanding at March 31, 2022. Our credit facility matures in October 2026.

Transportation, collection and treatment commitments


We have entered into transportation, gathering, and processing commitments to
guarantee capacity on crude oil and natural gas pipelines and natural gas
processing facilities that require us to pay per-unit charges regardless of the
amount of capacity used. Future commitments remaining as of March 31, 2022 under
the arrangements amount to approximately $1.25 billion. See Note 9. Commitments
and Contingencies in Notes to Unaudited Condensed Consolidated Financial
Statements for additional information.

Capital expenditure


Our capital expenditures budget for 2022 is expected to be $2.6 billion to $2.7
billion. Costs of acquisitions and investments, such as those described in Note
3. Property Acquisitions and Note 13. Equity Investment in Notes to Unaudited
Condensed Consolidated Financial Statements, are not budgeted, with the
exception of planned levels of spending for mineral acquisitions.

For the three months ended March 31, 2022, we invested $523.9 million in our
capital program excluding $443.1 million of unbudgeted acquisitions, excluding
$1.9 million of mineral acquisitions attributable to Franco-Nevada, and
including $11.0 million of capital costs associated with increased accruals for
capital expenditures as compared to December 31, 2021. Our 2022 first quarter
capital expenditures were allocated as shown in the table below.

In millions                                                                     1Q 2022
Exploration and development drilling                                       $         426.2
Land costs                                                                  

24.3

Mineral acquisitions attributable to Continental                                       0.5

Fixed assets, refurbishments, hydraulic infrastructures and other company assets

72.3

Seismic                                                                                0.6

Capital expenditures attributable to Continental, excluding unbudgeted acquisitions

523.9

Acquisitions of crude oil and natural gas properties                        

443.1

Total unbudgeted acquisitions                                               

443.1

Total capital expenditures attributable to Continental                     $         967.0
Mineral acquisitions attributable to Franco-Nevada                                     1.9
Total capital expenditures                                                 $         968.9


Our drilling and completion activities and the actual amount and timing of our
capital expenditures may differ materially from our budget as a result of, among
other things, available cash flows, unbudgeted acquisitions, actual drilling and
completion results, operational process improvements, the availability of
drilling and completion rigs and other services and equipment,
                                       26
--------------------------------------------------------------------------------

cost inflation, the availability of transportation, gathering and processing
capacity, changes in commodity prices, and regulatory, technological and
competitive developments. We monitor our capital spending closely based on
actual and projected cash flows and may adjust our spending should commodity
prices materially change from current levels. We expect to continue
participating as a buyer of properties when and if we have the ability to
increase our position in strategic plays at attractive terms.

April 2022 Property acquisition


On March 3, 2022, we executed a definitive agreement to acquire oil and gas
properties in the Permian Basin of Texas for cash consideration of $200 million,
subject to customary closing price adjustments. Closing of the acquisition
occurred on April 15, 2022, at which time we paid $177.0 million, which reflects
customary adjustments made pursuant to the agreement and was in addition to a
$20.0 million deposit paid at signing in March.

Strategic investment


See Note 13. Equity Investment in Notes to Unaudited Condensed Consolidated
Financial Statements for discussion of future spending commitments associated
with a new strategic investment made by the Company with Summit Carbon Solutions
in the first quarter of 2022.

Cash payments for income taxes


On April 14, 2022, we made a quarterly estimated payment for 2022 U.S. federal
income taxes of $125 million based on an estimate of federal taxable income for
the year. Significant judgment is involved in estimating future taxable income
as we are required to make assumptions about future commodity prices, projected
production, development activities, capital spending, profitability, and general
economic conditions, all of which are subject to material revision in future
periods as better information becomes available. As of April 30, 2022, the
publicly available forward commodity strip prices for the remainder of 2022
averaged $97.88 per barrel for crude oil and $7.33 per Mcf for natural gas. If
commodity prices remain at these levels for the remainder of the year, we expect
to utilize the full amount of our federal net operating loss carryforwards and
certain state net operating loss carryforwards and generate significant taxable
income in 2022, which would result in us making estimated cash payments for
income taxes each quarter in the upcoming year in amounts that could approximate
the $125 million quarterly payment made in April 2022. Because of the
significant uncertainty inherent in numerous factors utilized in projecting
taxable income, we cannot predict the amount of future income tax payments with
certainty.

Dividend Declaration

On April 27, 2022, the Company declared a quarterly cash dividend of $0.28 per
share on its outstanding common stock, which will be paid on May 23, 2022 to
shareholders of record as of May 9, 2022.

Share buyback program


In May 2019 our Board of Directors approved the initiation of a share repurchase
program to acquire up to $1 billion of our common stock beginning in June 2019.
On February 8, 2022, our Board of Directors approved an increase in the size of
the share repurchase program to $1.5 billion. As of the date of this filing, we
have repurchased and retired a cumulative total of approximately 18.81 million
shares under the program at an aggregate cost of $540.9 million, leaving
$959.1 million of authorized repurchasing capacity under the modified program.
The timing and amount of the Company's share repurchases are subject to market
conditions and management discretion. The share repurchase program does not
require the Company to repurchase a specific number of shares and may be
modified, suspended, or terminated by the Board of Directors at any time.

Repayments and Redemptions of Senior Notes


In recent periods we have redeemed or repurchased a portion of our outstanding
senior notes. From time to time, we expect to execute additional redemptions or
repurchases of our senior notes for cash in open market transactions, privately
negotiated transactions, or otherwise. Such redemptions or repurchases will
depend on prevailing market conditions, our liquidity and prospects for future
access to capital, and other factors. The amounts involved in any such
transactions, individually or in the aggregate, may be material.

Dakota Access Pipeline


In response to a July 2020 U.S. District Court decision vacating the U.S. Army
Corps of Engineers ("Corps") grant of an easement to the Dakota Access Pipeline
("DAPL") and issuance of an order requiring the Corps to conduct an
environmental impact statement for the pipeline, the Corps is currently
conducting the court-ordered environmental review to determine whether DAPL
poses a threat to the drinking water supply of the Standing Rock Sioux
Reservation. DAPL currently remains in
                                       27
--------------------------------------------------------------------------------

operation. The owners of DAPL appealed the District Court decision to the U.S.
Supreme Court in September 2021, but the appeal was rejected on February 22,
2022. The Corps continues to conduct the review, which is estimated to be
completed no later than November 2022. Once the review is completed, the Corps
will determine whether DAPL is safe to operate or must be shut down. We are
unable to determine the outcome or the impact of this matter on DAPL in the
future.

We utilize DAPL to transport a portion of our Bakken crude oil production to
ultimate markets on the U.S. gulf coast. Our transportation commitment on the
pipeline totals 30,000 barrels per day which will continue through February 2026
at which time the commitment decreases to 26,450 barrels per day through July
2028.

If transportation capacity on DAPL becomes restricted or unavailable, we have
the ability to utilize other third party pipelines or rail facilities to
transport our Bakken crude oil production to market, although such alternatives
may be more costly. A restriction of DAPL's takeaway capacity may have an impact
on prices for Bakken-produced barrels and result in wider differentials relative
to WTI benchmark prices in the future, the amount of which is uncertain.

Legislative and regulatory developments


The crude oil and natural gas industry in the United States is subject to
various types of regulation at the federal, state and local levels. President
Biden, in pursuit of his regulatory agenda, has issued, and may continue to
issue, executive orders that result in more stringent and costly requirements
for the domestic crude oil and natural gas industry and there is the potential
for the revision of existing laws and regulations or the adoption of new
legislation that could adversely affect the oil and gas industry, including
those pertaining to the taxation of oil and gas exploration and production
activities. Such changes, if enacted, could have a material adverse effect on
our results of operations and cash flows. See Part I, Item 1.
Business-Regulation of the Crude Oil and Natural Gas Industry in our Form 10-K
for the year ended December 31, 2021 for a discussion of significant laws and
regulations that have been enacted or are currently being considered by
regulatory bodies that may affect us in the areas in which we operate.

SECOND proposal for a regulation on climate information


In March 2022, the SEC proposed rule amendments that would create a wide range
of new climate-related disclosure obligations for registrants. The proposed
rules would require registrants to include certain climate-related information
in registration statements and annual reports, including (i) climate-related
risks and their actual or likely material impacts on the registrant's business,
strategy, and outlook; (ii) the registrant's governance of climate-related risks
and relevant risk management processes; (iii) information on the registrant's
greenhouse gas emissions, which, for accelerated and large accelerated filers
and with respect to certain emissions, would be subject to assurance; (iv)
certain climate-related financial statement metrics and related disclosures in a
note to audited financial statements; and (v) information about climate-related
targets, goals, and transition plans. The proposed rules remain open to public
comment and may be subject to challenges and litigation. Thus, the ultimate
scope and impact of the proposed rules on our business remain uncertain. To the
extent new rules, if finalized, impose additional reporting obligations on us,
we could face increased costs.

Inflation


Certain drilling and completion costs and costs of oilfield services, equipment,
and materials decreased in recent years as service providers reduced their costs
in response to reduced demand arising from historically low crude oil prices.
However, inflationary pressures returned in 2021 and continue to persist in 2022
in conjunction with the significant increase in commodity prices over the past
year, labor shortages, and other factors. Additionally, supply chain disruptions
stemming from the COVID-19 pandemic have led to shortages of certain materials
and equipment and resulting increases in material and labor costs. Our capital
spending budget for 2022 includes an estimate for the impact of cost inflation
and, despite inflationary pressures, we expect to continue generating
significant amounts of free cash flow at current commodity price levels.

Significant Accounting Policies and Estimates

There have been no changes in our critical accounting policies and estimates from those disclosed in our 2021 Form 10-K.

Non-GAAP Financial Measures

Net sales of crude oil, natural gas and natural gas liquids and net selling prices


Revenues and transportation expenses associated with production from our
operated properties are reported separately as discussed in Notes to Unaudited
Condensed Consolidated Financial Statements-Note 5. Revenues. For non-operated
properties, we receive a net payment from the operator for our share of sales
proceeds which is net of costs incurred by the operator, if any. Such
non-operated revenues are recognized at the net amount of proceeds received. As
a result, the separate presentation of
                                       28
--------------------------------------------------------------------------------

revenues and transportation expenses from our operated properties differs from
the net presentation from non-operated properties. This impacts the
comparability of certain operating metrics, such as per-unit sales prices, when
such metrics are prepared in accordance with U.S. GAAP using gross presentation
for some revenues and net presentation for others.

In order to provide metrics prepared in a manner consistent with how management
assesses the Company's operating results and to achieve comparability between
operated and non-operated revenues, we have presented crude oil, natural gas,
and natural gas liquids sales net of transportation expenses in Management's
Discussion and Analysis of Financial Condition and Results of Operations, which
we refer to as "net crude oil, natural gas, and natural gas liquids sales," a
non-GAAP measure. Average sales prices calculated using net sales are referred
to as "net sales prices," a non-GAAP measure, and are calculated by taking
revenues less transportation expenses divided by sales volumes. Management
believes presenting our revenues and sales prices net of transportation expenses
is useful because it normalizes the presentation differences between operated
and non-operated revenues and allows for a useful comparison of net realized
prices to NYMEX benchmark prices on a Company-wide basis.

The following tables present a reconciliation of crude oil, natural gas, and
natural gas liquids sales (GAAP) to net crude oil, natural gas, and natural gas
liquids sales and related net sales prices (non-GAAP) for the three months ended
March 31, 2022 and 2021.

                                                  Three months ended March 31, 2022                                 Three months ended March 31, 2021
                                                              Natural gas                                                        Natural gas
In thousands                             Crude oil              and NGLs              Total                Crude oil               and NGLs              Total
Crude oil, natural gas, and NGL
sales (GAAP)                          $   1,643,847          $   630,414          $ 2,274,261          $    768,768             $   478,765          $ 1,247,533
Less: Transportation expenses               (57,887)             (16,962)             (74,849)              (40,079)                (10,177)             (50,256)
Net crude oil, natural gas, and
NGL sales (non-GAAP)                  $   1,585,960          $   613,452          $ 2,199,412          $    728,689             $   468,588          $

1,197,277

Sales volumes (MBbl/MMcf/MBoe)               17,461               96,683               33,575                13,726                  84,289               27,774
Net sales price (non-GAAP)            $       90.83          $      6.34          $     65.51          $      53.09             $      5.56          $     43.11





                                       29

————————————————– ——————————

© Edgar Online, source Previews

]]>