Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (March 2017)
17 slides from Genie Energy's investor presentation, Mar 28, 2017
Slide 1: Genie Energy Ltd Investor Presentation March 2017
Genie Energy Ltd (NYSE: GNE) Investor Presentation March 2017
Slide 2: Safe Harbor Statement
2 2 2 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 Litigation Reform
Slide 3: Cautionary Statements Regarding Oil and Gas Quantities
3 3 3 Cautionary Statements Regarding Oil and Gas Quantities The Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC’s definitions for such terms, and price and cost sensiti
Slide 4: Genie Energy: At a Glance
4 4 4 Genie Energy: At a Glance 4 Genie Energy Ltd. (NYSE:GNE) Genie Retail Energy Afek Oil & Gas Genie Energy Common Stock Symbol NYSE: GNE Stock Price* $6.18 Shares Outstanding 24.7 million Dividend Yield 4.9% Market Capitalization $152 million Genie Energy Series 2012-A Preferred Stock Symbol NYS
Slide 5: Genie Retail Energy Overview
5 Genie Retail Energy is a leading retail energy provider (REP) • Founded in 2004, now among the largest independent residential REPs • Growing multiple - brand strategy, expanding into new geographic markets • History of strong and consistent financial performance Value proposition • Purchases elec
Slide 6: Key Recent Developments
6 In November 2016, acquired Town Square Energy: • All cash deal - $9.5 million plus $1.6 million for net working capital • Introduced a strong, well - regarded new brand into the GRE portfolio • Provided 43,000 electric meters and 47,000 RCEs • Significantly expanded footprint to four new states (M
Slide 7: Meter and RCE Performance
7 7 7 Meter and RCE Performance METERS RESIDENTIAL CUSTOMER EQUIVALENTS (RCEs) COMMENTARY • 2014: First half Polar Vortex increases churn. Second half stabilization • 2015 - 2016: Strong sequential electric meter, RCE growth and new territories • 2016: Acquired Town Square Energy in fourth quarter •
Slide 8: Customer Portfolio
8 8 8 Customer Portfolio RESIDENTIAL CUSTOMER EQUIVALENTS (RCEs) as of 12/31/16 8
Slide 9: Markets
9 9 9 Genie Retail Energy Markets 9
Slide 10: GRE Results of Operations
10 10 10 GRE Results of Operations 10 COMMENTARY • Strong financial performance with three consecutive years of significant improvements in Adjusted EBITDA • All customer acquisition and marketing costs expensed in the period incurred • Diminimus CAPEX and D&A expense • Seasonality: Q2 and Q4 should
Slide 11: Afek Oil & Gas
11 11 11 Afek Oil & Gas 11 396 km 2 • In April 2013, Afek was awarded an exclusive exploration license covering 396.5 in the southern portion of Israel’s Golan Heights • Analysis of previously drilled well and geophysical surveys indicated the potential for substantial volumes of oil in place • Over
Slide 12: Afek Oil & Gas
12 12 12 Afek Oil & Gas 12 • Afek is preparing to drill a sixth well (Ness 10) in the Northern portion of its license area • Reprocessed seismic and other data indicate the potential for a significant discovery: • Source rock identified in the southern portion of the license area is present • Deeper
Slide 13: Genie Energy – Investment Thesis
13 13 13 Genie Energy – Investment Thesis REP business with excellent growth prospects • Abundant organic meter growth opportunities through geographic expansion, deeper market penetration and strategic acquisitions • Strong balance sheet available to support additional expansion with minimal diluti
Slide 14: Genie Energy P&L
14 14 14 Genie Energy P&L 14 (USD in millions) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 2014 2015 2016 Revenue $75.2 $40.3 $53.0 $44.6 $58.9 $44.6 $57.2 $51.5 $281.0$213.1$212.1 Gross Profit 16.5 13.4 21.2 15.5 24.0 18.1 20.2 14.6 49.4 66.6 76.9 SG&A 16.6 16.5 15.9 17.0 16.0 15.9 14.9 14.7 61.4 66.0
Slide 15: Reconciliation of Non-GAAP Financials
Reconciliation of Non - GAAP Financials Reconciliation of Non - GAAP Financial Measures In addition to including financial results that are determined in accordance with generally accepted accounting principles in th e United States of America (GAAP), Genie Energy ’ s investor presentation included
Slide 16: Reconciliation of Non-GAAP Financials
Reconciliation of Non - GAAP Financials 16 Genie Energy (NYSE: GNE) Genie Page 4 Energy (in thousands) TTM* EBITDA $14,723 Subtract (add): Depreciation and amortization $581 Impairment --- Other Losses (Gains) $39,843 Stock-based Compensation $4,813 Income (loss) from operations ($30,513) Genie Reta
Slide 17: Avi Goldin Chief Financial Officer agoldin@genie.com Michael Stein Chief Operating Officer CEO, mstein@genie.com
Avi Goldin Chief Financial Officer agoldin@genie.com Michael Stein Chief Operating Officer CEO, Genie Retail Energy mstein@genie.com