Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (December 2020)
20 slides from Genie Energy's investor presentation, Dec 30, 2020
Slide 1: Genie Energy Ltd Investor Presentation
December 2021 Genie Energy Ltd (NYSE: GNE) Investor Pres e ntation
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 Forward - looking statements are based on Genie’s current expectations, estimates and assumptions and because forward - looking statements address future results, events and conditions, they, by their very nature, involve inherent risks and uncertainties, many of which are un
Slide 3: Genie Energy At a Glance
Symbol NYSE: GNE Stock Price¹ $7.74 Shares Outstanding² 26.2 million Dividend Yield¹ 4.4% Market Capitalization 1,2 $203 million Dividend Yield 1 ⁴ As of September 30, 2020 ⁵ Trailing twelve months ended September 30, 2020 ⁶ Non - GAAP measure. See reconciliation to corresponding GAAP measure later
Slide 4: Investment Thesis
Investment Thesis Powerful Financial Performance ❖ Domestic energy supply delivers consistent strong financial performance ❖ Diversified operations mitigate market and regulatory risk Attractive Dividends ❖ Common stock dividend increased 13% in 2020 ❖ Yield on Genie Energy common and preferred stoc
Slide 5: Retail Energy Supply Business Overview
Retail Energy Supply Business Overview 5 Retail energy provider business supplies electricity and natural gas to residential and commercial customers in deregulated markets in US and International markets Market Framework ❖ Deregulated markets: in US, state by state regulatory structure ❖ Competitio
Slide 6: Key Enterprise Functions
Key Enterprise Functions ❖ Sales and marketing - Across multiple channels to residential and small commercial ❖ Commodity supply – Wholesale markets to meet retail demand ❖ Portfolio of offerings ■ Green (carbon offsets) and conventional sourcing ■ Fixed and variable rates ❖ Risk mitigation ❖ Custom
Slide 7: Retail Energy Supply Value Creation
❖ Multiple sales channels ❖ Green energy and fixed rate highlight portfolio of offerings ❖ Deep data analysis to identify market opportunities and optimize offerings ❖ Hedging strategies reduce commodity volatility risk ❖ In purchase of receivable markets, utilities assume bad debt risk ❖ Geographic
Slide 8: Genie Retail Energy Markets Served
Genie Retail Energy Markets Served Deregulated Markets Opportunity Genie Retail Energy US Markets 8
Slide 9: Domestic Customer Portfolio
Domestic Customer Portfolio * 9 * Domestic residential customer equivalents (RCEs) at September 30, 2020
Slide 10: Genie Retail Energy US Markets
Genie Retail Energy US Markets 10
Slide 11: Genie Retail Energy Financial Results
11 US Markets Genie Retail Energy Financial Results * TTM – Trailing twelve months ended September 30, 2020
Slide 12: Genie International
Great Britain ❖ Entered in 4Q17 ❖ Electricity and natural gas ❖ TAM: 50 million meters Diversification through expansion of REP business to deregulated markets globally Genie International 12 Finland + Sweden ❖ Acquired Lumo Energia (Finland) in 1Q19 ❖ TAM: 3.4 million meters in Finland ❖ Platform t
Slide 13: Genie International Strong Meter & RCE Growth
Genie International Strong Meter & RCE Growth 13
Slide 14: GRE International Financial Results
14 International Markets GRE International Financial Results** * TTM – Trailing twelve months ended September 30, 2020. ** Genie Energy accounted for its investments in Orbit Energy, its joint venture operating in the U.K., under the equity method of accounting. Revenue generated, and expenses incur
Slide 15: Genie Energy COVID-19 Update
❖ Increased consumption per meter as residential customers spend more time at home ❖ Decreased rate of new customer acquisition and decreased SG&A expense as a result of suspension of door - to - door marketing in 1Q20. Resumption of limited door - to - door in 2Q20 - 3Q20 ❖ Decreased rate of custom
Slide 16: Meters and RCEs Global
Energy in Q4 ❖ 2017 : Organic RCE growth ❖ 2018 : Reduced investment and regulatory compliance accelerate attrition ❖ 2019 - 2020: Domestic and international growth with shift to higher consumption meters in domestic markets Me t er s Residential Customer Equivalents (RCEs) Commentary ❖ 2015 - 2016
Slide 17: Genie Energy Consolidated P&L
Genie Energy Consolidated P&L 17 * TTM – Trailing twelve months ended September 30, 2020
Slide 18: Reconciliation of Non-GAAP Financials
Reconciliation of Non - GAAP Financials Although depreciation and amortization are considered operating costs under GAAP, they primarily represent the non - cash current period allocation of costs associated with long - lived assets acquired or constructed in prior periods. While Genie Energy’s oil
Slide 19: Reconciliation of Non-GAAP Financials
Reconciliation of Non - GAAP Financials 19 * TTM – Trailing twelve months ended September 30, 2020
Slide 20: Michael Stein, CEO; Avi Goldin, CFO
Michael Stein Chief Executive Officer Avi Goldin Chief Financial Officer