Southern Natural Gas Company Cancels its Force Majeure Declaration Previously Impacting RYAM’s Jesup Facility Natural Gas Supply

Rhea-AI Summary

Rayonier Advanced Materials (RYAM) announced the cancellation of a force majeure by Southern Natural Gas Company affecting its Jesup, Georgia facility. This event had caused an estimated $4 million EBITDA impact. The company is reserving its rights to contest the financial penalties incurred due to the supply disruption.

RYAM is a leader in cellulose-based technologies with operations in the U.S., Canada, and France, generating $1.4 billion in revenue in 2021.

Positive

• None.

Negative

• Estimated $4 million EBITDA impact due to the force majeure event.
• Potential financial penalties assessed to the company.

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) announced today that the force majeure declared by its natural gas provider, Southern Natural Gas Company, L.L.C., due to an unscheduled outage of the Elba Express Pipeline’s Hartwell Compressor Station (the “SNG Force Majeure Event”, or “Event”) has been cancelled. The Event impacted natural gas supply to the Company’s facility in Jesup, Georgia, and has resulted in an estimated $4 million EBITDA impact to the Company. The Company continues to reserve all rights to more fully examine, and potentially contest, the validity of the financial penalty it has been assessed.

The full announcement from Southern Natural Gas can be found at: https://pipeline2.kindermorgan.com/Notices/NoticeDetail.aspx?code=SNG&notc_nbr=707625

About RYAM

RYAM is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in filters, food, pharmaceuticals and other industrial applications. The Company also manufactures products for paper and packaging markets. With manufacturing operations in the U.S., Canada and France, RYAM employs just over 2,500 people and generated $1.4 billion of revenues in 2021. More information is available at www.RYAMglobal.com.

Forward-Looking Statements

Certain statements in this document regarding anticipated financial, business, legal or other outcomes including business and market conditions, outlook and other similar statements relating to RYAMs’ future events, developments, or financial or operational performance or results, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as “may,” “will,” “should,” “expect,” “estimate,” “believe,” “intend,” “forecast,” “anticipate,” “guidance,” and other similar language. However, the absence of these or similar words or expressions does not mean a statement is not forward-looking. While we believe these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance these expectations will be attained and it is possible actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. All statements made in this earnings release are made only as of the date set forth at the beginning of this release. The Company undertakes no obligation to update the information made in this release in the event facts or circumstances subsequently change after the date of this release. The Company has not filed its Form 10-Q for the quarter ended September 24, 2022. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time the Company files its Form 10-Q.

These forward-looking statements are also affected by the risk factors and forward-looking statements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 26, 2022 and June 25, 2022, and those set forth from time to time in the Company’s filings with the Securities and Exchange Commission, which are available at www.RYAMglobal.com. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221229005038/en/

Media

Ryan Houck, 904-357-9134



Investors

Mickey Walsh, 904-357-9162

Source: Rayonier Advanced Materials Inc.

FAQ

What was the impact of the Southern Natural Gas force majeure on Rayonier Advanced Materials?

The force majeure led to an estimated $4 million EBITDA impact on Rayonier Advanced Materials.

What is the stock symbol for Rayonier Advanced Materials?

The stock symbol for Rayonier Advanced Materials is RYAM.

Where is Rayonier Advanced Materials' affected facility located?

The affected facility is located in Jesup, Georgia.

What rights does Rayonier Advanced Materials reserve following the gas supply disruption?

Rayonier Advanced Materials reserves the right to contest the financial penalties assessed due to the supply disruption.