Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (September 2012)
24 slides from Genie Energy's investor presentation, Sep 28, 2012
Slide 1: Genie Energy Ltd Investor Presentation
Genie Energy Ltd (NYSE: GNE) Energy Investor Presentation September 2012
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 siatements made pursuant tothe Safe Harbor Provisions ofthe Private Securities Litigation Reform Act of 1995, E
Slide 3: Cautionary Statements Regarding Oil and Gas Quantities
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 sensitivities
Slide 4: Genie Overview
Genie Overview Energy IDT Energy IDT Energy is a retail energy provider (REP) operating in the Northeast U.S. + 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 ov
Slide 5: Genie Energy
Genie Energy Energy Genie Energy was spun off from IDT Corp to shareholders on October 28" 2011 Stock Price” $7.40 Volume eae -3 months) 55 thousand. Genie Oil & Gas Cash & Cash ER $99 million Revenue (TTM)*** ‘$196.1 million Insider Ownership (Voting Power) 32.4% (77.6%) American Shale list Employe
Slide 6: 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 7: REP Industry Highlights
REP Industry Highlights + Substantial deregulation has led to a $240B energy retail market + Currently, 46 REPs with over $100MM in revenue represent 21.5% of the market + 40 of the 46 REPs offer primarily fixed-price contracts; 6 REPs with a primarily variable book (limited commodity exposure) - ID
Slide 8: Meters Commentary
METERS COMMENTARY coum sue = a ai * 2011-12: Focus on 0000 acquiring high zone consumption electric ee. _ meters primarily in new so. P ly celle oo PA territories 200s 200520062007 2ame 00920220 + 2012: Strong sequent electric meter and RCE ee growth lee + 3Q12: Entered fourth pe state - Maryland
Slide 9: IDT Energy - Markets & Opportunities
IDT Energy - Markets & Opportunities Total Meters IDT Market REPs Migrated (in thousands) (in thousands) (on thousands) Recently Launched Maryland 3,000 Prospective Markets Illinois, Connecticut, 10,300 De Existing Markets New York 11,480 10,131 1896 18.7% 19.2% 2005 Pennsylvania 5,650 4,613 1,924 4
Slide 10: IDT Energy financial results (USD in millions)
(USD in millions) Revenue $63.4 $38.7 $56.1 $39.7 $575 S428 Gross Profit 17.2 98 201 95 18.0 116 SG&A 73 79 13.7 81 10.7 10.6 EBITDA and Income (Loss) from Operations 99 19 64 COMMENT + Consistently EBITDA positive + All customer acquisition and marketing costs expensed in the period incurred + Mini
Slide 11: Genie Oil and Gas - Investment Thesis
Genie Oil and Gas - Investment Thesis Growing Demand and Peaking Supply of “Easy” Oil Creates Need For New Sources Exploration Agreements in Two of the Top Three Global Oil Shale Deposits * Genie has secured exploration rights in the Green River Formation (Colorado-U.S. 1.4 Trillion BBL) and Shfela
Slide 12: Oil Shale - Genie's In-Situ Recovery
Oil Shale - Genie’s In-Situ Recovery * 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 techn
Slide 13: Is Oil Shale the Next Canadian Oil Sands?
Is Oil Shale the Next Canadian Oil Sands? < 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
Slide 14: Israel Energy Initiatives (IEI)
Israel Energy Initiatives (IEI) Exclusive oil shale exploration license in Israel * Covers 238 sq. km in south of Hashfela 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 Jong te
Slide 15: Oil Shale Potential of Israel
Oil Shale Potential of Israel sc « Israel has one of the largest and best oil shale deposits in the world for in situ conversion * World class resource: * Richness: ~ 23 - 25 gal/ton * Thickness: up to 300 m thick with 100 m thick High Grade Zone * Very Low Water Inflow to Wells * Complete Isolation
Slide 16: 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 i * Genie operating AMSO during pre-commercial phase Total funding the majority of R&D expenditur
Slide 17: Development phases: Pilot, Demo, Commercial
Three-Four Years Demo Phase 100 Million Conduct comprehensive geological survey Design, construct and operate a pilot facility First Oil Produced Demonstrate viability of the technology Construct design and operate demo facility Up to 2,000 bpd steady state production Scale up to full commercial ope
Slide 18: Genie Energy Financials
Genie Energy Financials 1Q11 2Q11 3Q11 4Qi1 Y (USD in millions) Revenue S634 $38.7 $56.1 $39.7 $87.5 Gross Profit 172 98 20.2 95 18.0 116 SG&A 77 84 147 96 124 129 Research and Development 23 18 17 16 24 28 Equity in the Loss of AMSO,LLC 07 22 16 12 08 09 EBITDA and Income (Loss) from Operations 65
Slide 19: Tender Offer for Genie Preferred Stock
Tender Offer for Genie Preferred Stock Holders of Common Stock Can Exchange for Preferred. + Holders of Genie Class B common stock may exchange shares for shares of preferred on 1 for 1 basis + Up to 8,750,000 shares of common may be exchanged + Tender closes October 10, 2012, unless extended + Comp
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 sIncreasing, global demand and peaking production of conventional (easy) oil Experienced Management Team *REP led by industry veterans who built the bu
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Reconciliation of Non-GAAP Financial Measures Imaddition to including financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), Genie Energy’s investor presentation included Adjusted
Slide 23: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Genie Energy (NYSE: GNE) Genie Page 5 Energy (én thousands) TIM EBITDA (62,963) Subtract (add): Depreciation and amortization 70 Income (loss) from operations ($3,033)
Slide 24: Energy
Energy
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