Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (March 2015)
21 slides from Genie Energy's investor presentation, Mar 31, 2015
Slide 1: Genie Energy Ltd Investor Presentation April 2015
ee t—“‘i‘CSC Genie Energy Ltd (NYSE: GNE, GNEPRA) Energy Investor Presentation April 2015
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 pursuantto the Safe Harbor Provisions of the Private Securities Eltigation Reform Act of 1995,
Slide 3: Investment Case
Investment Case * Genie Energy combines the potential upside of energy exploration with the strong financial performance of a Retail Energy Provider TREP) * Strong balance sheet and capital structure with more than $88mm in cash* * Strong cash flows since inception, currently reinvested in oil produ
Slide 4: Genie Energy Ltd. overview
inergy Ltd. (YSEGNE) Genie Energy International € Genie Retail Energy orp. Genie Ol & Gas Afek Oil & G. Cash & Marketable Securities** Revenue (TTM)*** Full Time Employees “Maret ote eso 33075 incses Cour, Rested Cash ana Marat Seri TT. Tae monte ends 12006
Slide 5: Genie Oil & Gas technical team
Harold Vinegar, Ph.D., Chief Scientist, Genie Oil & Gas Chief Scientist Royal Dutch Shell (retired), 38 years experience in unconventional resources, 295 US patents, U.S. National Academy Engineering, National Research Council, Professor of Petroleum Geosciences at Ben-Gurion University Yuval Bartov
Slide 6: Afek Oil & Gas
Afek Oil & Gas Genie’s exploration work in Israel has identified a oil block with billions of barrels of resource potential + Analysis of cuttings from a previously drilled well document the existence of oil Ticense‘area * High geothermal gradients may have caused Type TIS Kerogen to enter the “oil
Slide 7: Ein Said Well
Ein Said Well . = Water well drilled in 1981 = Oil shows reported from 590-900 m = Logs run from 410-730 m = Well abandoned in 1984 = Afek was able to extract oil from the cuttings 31 years later 500] 560] 600] 650] 700) 200% Resistivity Increase Coinciding with oil shows and cuttings maturity OilZo
Slide 8: Stratigraphy Formation Thickness Age
Stratigraphy Formation Thickness Age Bashan Basalt 0- 600m Pleistocene 400 - 1600m Adullam Eocene Tagiya 90- 200m Paleocene Ghareb 80- 180m Maastrichtian Upper Mishash 90- 125m Campanian Mishash 120- 155m Campanian Menuha 80- 160m Senonian Formation: Gharab/Mishash Lithology: Chalk Depth: 600-1500 m
Slide 9: Geophysical Surveys
765] 760 155) 750 745; 740 Geophysical Surveys 25 Tie ws CSEM Resistivity (log:0(R)] Bouguer Anomaly (mgal) Seismic reprocessing of 5 existing lines to map basin structure CSEM survey to map the resistivity profile and gravity survey was conducted in 2013 High resistivity was measured at target dept
Slide 10: Locations permitted for drilling
10 locations permitted for drilling 1st well (Natur #5) February spud Drilling contractor - Viking Extensive logging program by Baker Hughes including acoustics, borehole imaging, and NMR logs 27 m of conventional core will be taken from each well followed by routine and special core analysis Mini-d
Slide 11: Genie Retail Energy - Overview
Genie Retail Energy - Overview Genie Retail Energy is a leading retail energy provider (REP) * Founded in 2004, now one of the largest independent residential REPs in Eastern US * Purchases electricity and gas in wholesale markets for resale to end users * Delivery, billing and collections remain re
Slide 12: Residential Customer Equivalents (RCEs)
RESIDENTIAL CUSTOMER EQUIVALENTS (RCEs) 2011-12: Focused on acquiring relatively higher consumption electric meters primarily in new PA territories 2012: Strong sequential electric meter and RCE growth 2013: Pending roll out of new territories 2014: 1Q-2Q Polar Vortex increases churn
Slide 13: Epiq and Diversegy
Epiq and Diversegy EPIQ EPIQ Energy is an innovative energy brokerage firm that utilizes network marketing to drive customer growth + Strongly complements traditional acquisition channels and reaches otherwise inaccessible customers + Focuses on “warm-relationships” which resultin stickier customer
Slide 14: Genie Retail Energy - Markets & Opportunity
Genie Retail Energy - Markets & O Energy aentiat {Wy Res: Meters "Total Meters ee Migrated to Meters ees REPs Migrated (thousands) (in thousands) (inthousands) Existing Markets New York 11,422 10,113 2,265 22.4% 10.0% Pennsylvania 8548 7,623 2,198 28.8% 27% New Jersey 6810 6,054 796 13.1% 4.6% Maryl
Slide 15: Genie Retail Energy - Results of Operations
Genie Retail Energy - Results of Operations <a. (sD a mdions) Revenue $853 $551 S716 $67.1 $1303 SHS S62 SH S95 $279.2 $2750) Gross Profit 10 = 08S 99 1S 78S 6 © «65S 52.0 SCRA 102 94 103 101 1S 15 122 4154 446 401 48.6 Adjusted EBITDA 94 08 99 7.0 (08) qa 87 14 26.3 267 78 COMMENTAI * Strong financ
Slide 16: Genie Energy - Investment Thesis
Genie Energy - Investment Thesis Investment Exposure to Two Powerful Trends Within the Energy Sector + Increasing global oil demand + Near-term potential upside of oil exploration license in northern Israel + Deregulation of the $240B retail energy market Experienced Management Team * Oiland Gas exp
Slide 17: Genie Energy Financials
Genie Energy Financials (USD in millions) Revenue $85.3 $55.1 $716 $67.1 $1303 $488 $46.2 $49.7 $229.4 $279.2 $275.0| Gross Profit 190 $100 199 168 98 115 178 1228 695 658 519 SG&A 124 $121 127 129 143 134 189 18.6* 53.9 50.5 65.2 Research and Development 25 26 27 37 22 24 30 50 94 U4 125 Equity in
Slide 18: SEC notice on oil and gas resource disclosure
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 sensitivities for such feserves, and prohibits disclosure of resourc
Slide 19: Reconciliation of Non-GAAP Financial Measures
‘Reconciliation of Non-GAAP Financial Measures In addition to including financial results that ae determined in accordance with generally accepted accounting principles in the United States of America (GAAP), Genie Energy's investor presentation included Adjusted EBITDA, which is a non-GAAP financia
Slide 20: Adjusted EBITDA reconciliation tables
Gende Energy (NYSE: GNE) Genie Paget Energy fates Tm EBA, (ons ‘Subuact(ad) Depreciation nd ncrisation Impamnent (Other Leste (Gains Stock-based Compensation {Income ose) Eom cperatons Genie Retail Energy Result of Openstions Page B oc teants senic Energy 1050 RB 3 et HaHa ams Adjusted EBITDA, SRS 5
Slide 21: Investor contacts
Avi Goldin Chief Financial Officer agoldin@genie.com (973) 438-4075 Berar Michael Stein Executive Vice President mstein@genie.com (973) 438-3018