Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (July 2013)
21 slides from Genie Energy's investor presentation, Jul 11, 2013
Slide 1: Genie Energy Ltd Investor Presentation
Genie Energy Ltd (NYSE: GNE, GNEPRA) Energy Investor Presentation July 2013
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements, Statements that are not historical facts are forward-looking statements and such forward-looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities ligation Reform Act of 1995, E
Slide 3: Genie Overview
Genie Overview IDT Energy IDT Energy is a retail energy provider (REP) operating in the Eastern US. + Founded in 2004, now largest independent REP serving residential market in the Northeast + Purchases electricity & gas in wholesale markets for resale to end users + Currently servicing over 485k me
Slide 4: Genie Energy
Genie Energy Genie Energy Ltd. (NYSE.GNE) Gas IDT Energy American Shale Ge Oil (AMSO) je Israel Holdings Afek Oil israel Energy & Gas (Golan) Stock Price” Stock Price’ $7.86 Market Capitalization $220 million Debt $0 EBITDA (TTM)** $3.1 million Insider Ownership (Voting Power) 324% (7.6%) | Full Tim
Slide 5: IDT Energy - Overview
IDT Energy - Overview IDT Energy is a leading retail energy provider (REP) + Founded in 2004, now one of the largest independent residential REPs in Northeast * Purchases electricity and gas in wholesale markets for resale to end users * Delivery, billing and collections remain responsibility of inc
Slide 6: Meters Commentary
METERS COMMENTARY set * 2011-12: Focused on mee | acquiring relatively higher consumption electric meters primarily in new PA territories «2012 Srong sequent electric meter and RCE cs sae growth “ | | I I I | | | DRS . - a nan - a state - Maryland 2a sa aa mo san eioynces Mauer
Slide 7: IDT Energy - Markets & Opportunities
IDT Energy - Markets & Opportunities cidentica ff Res Meters % Res, DI Year Mee, cer UB Migrated toll Meters Market Entered si oes REPs Migrated Share Market ithe) (ntncend) (thon Existing Markets New York 11,480 10,131 1896 18.7% 18.8% 2005] Pennsylvania 5,650 4613 1,924 41.7% 6.5% 2010! New Jer: 6
Slide 8: IDT Energy - Results of Operations
IDT Energy - Results of Operations (USD in millions) Revenue $387 $522 $43.6 $575 SHB $637 «SOSA $853 «$197.9 $2294 ‘Gross Profit 98 19.0 10.7 18.0 1.6 214 18.5, 19.0 56.7, 69.5 SG&A 79 12.6 93 107 10.6 WT 10.6 10.2 37.1 44.6 EBITDA and Income from Operations 19° 640k BT 8D 196 254 COMMENTAK * Consi
Slide 9: Genie Oil and Gas - Investment Thesis
Genie Oil and Gas - Investment Thesis Growing Global Demand and Peaking Supply of “Easy” Oil Driving Demand for Unconventional Sources Exploration Agreements in Two of the Top Three Global Oil Shale Deposits * Genie has secured exclusive exploration rights to areas in the Green River Formation (Colo
Slide 10: Oil shale and in-situ extraction
* Oil shale generally refers to a sedimentary rock that contains solid hydrocarbon materials called kerogen * When oil shale is heated to ~650°F the kerogen generates hydrocarbon liquids and gases; no “fracking” involved * In-situ extraction has significant technical and environmental advantages and
Slide 11: Genie's Technical Team
Genie’s Technical Team World Class Technology Team * Harold Vinegar, Ph.D. (Harvard University), Chief Scientist, [EI Chief Scientist Royal Dutch Shell (retired), 32 years experience in unconventional resources, 266 US patents, National Academy Engineering, National Research Council, Associate Scien
Slide 12: In Situ Conversion Process (ICP)
In Situ Conversion Process (ICP) Heaters inserted into holes gradually heat subsurface Elevated temperature upgrades kerogen to lighter fractions p Recovery of light hydrocarbon products. Coke left in reservoir
Slide 13: Benefits of In Situ Conversion Process
Benefits of In Sita Conversion Process * Minimizes surface footprint - no mining necessary + Less water use than ex-situ retort technology * Improved Economics: + Products produced don’t require refining, only hydrotreating to remove sulfur + More oil and gas from smaller area + Accesses deeper oil
Slide 14: Is Oil Shale the Next Oil Sands?
Is Oil Shale the Next 1957- Shell experiments with in situ process on oil sands 1962 - Imperial Oil drills 10 evaluation wells at Cold Lake using in situ technology and builds pilot plant 1967 ~ The world’s first commercial oil sands surface mining operation is started at The Great Canadian Oil Sand
Slide 15: Israel Energy Initiatives (IEI)
Israel Energy Initiatives (IEI) Exclusive oil shale exploration license in Israel * Covers 238 sq. km in south of the Shfela region ¢ Estimated 40 billion boe in place * Subject to permitting and approvals * Upon conclusion of successful pilot and declaration of discovery, IEI is entitled to a , —|
Slide 16: Oil Shale Potential of Israel
Oil Shale Potential of Israel * Israel has one of the largest and best oil shale deposits in the world for in situ conversion * World class resource: ¢ Richness: ~ 23 - 29 gal/ton * Thickness: up to 300 m thick with 100 m thick High Grade Zone * Very Low Water Inflow to Wells * Complete Isolation fr
Slide 17: American Shale Oil (AMSO)
American Shale Oil (AMSO) AMSO is developing a federal RD&D lease in the Piceance Basin of Colorado + AMSO LLC is 50% owned by Genie & 50% by Total, S.A. Piceance Basin * Shell is nearby RD&D lease holder Sa * Genie operating AMSO during, pre-commercial phase Total funding the majority of R&D expend
Slide 18: Afek Oil & Gas
Afek Oil & Gas Genie has been awarded an exclusive exploration license covering 396.5 square kilometers in the Golan Heights area in Northern Israel. + Genie believes the resource contains significant amounts of conventional oil and gas in relatively tight formations + The thesis is based on analysi
Slide 19: Genie Energy Financials
Genie Energy Financials (USD in lions) Revenue Gross Profit, 98 SG&A 84 Research and Development 18 Equity in the Loss of AMSO,LLC EBITDA and Income (Loss) from Operations $38.7 $52.2 19.0 13.6 1.6 1.6 £7) $57.5 18.0 124 24 08 $42.8 $63.7 11.6 12.9 28 09 214 15.2 23 05 $054 18.5 134 22 09 $853 19.0
Slide 20: Genie Energy - Investment Thesis
Genie Energy - Investment Thesis Investment Exposure to Two Powerful Trends Within the Energy Sector +Deregulation of the $240B retail energy market *Increasing global demand and peaking production of conventional (easy) oil Experienced Management Team +REP led by industry veterans who built the bus
Slide 21: Energy
Energy