Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (August 2014)
27 slides from Genie Energy's investor presentation, Aug 21, 2014
Slide 1: Genie Energy Ltd Investor Presentation August 2014
Genie Energy Ltd (NYSE: GNE, GNEPRA) Energy Investor Presentation August 2014
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 Litigation Reform Act of 1995.
Slide 3: Genie Energy combines energy exploration potential with strong retail energy performance
Genie Energy combines the huge potential tpsiae of energy exploration with the strong financial performance of a traditional Retail Energy Provider (REP) * Strong balance sheet and capital structure with over $80mm in cash * Cash flows are reinvested in growth opportunities across the company * Curr
Slide 4: Genie Overview
Genie Overview OileGas Oil and Gas exploration and production company + World class scientific team focused on conventional and unconventional resources to produce clean and affordable transportation fuels * Exclusive license for resource in Northern Israel; exploration program is underway + Operati
Slide 5: Genie Oil & Gas and IDT Energy structure and key data
Genie Oil & IDT Energy Gas Genie Israel American Shalefl Genie Mongolial : Oil (AMSO) Holdings Israel Energy Initiatives (TED) Stock Price* $7.53 Stock Price* $7.50 Market Capitalization* $203 Million Debt $0 EBITDA (TTM)*** ($1.5) Million Fiscal Year End. December 31st * Market data as of 19/14 "in
Slide 6: Genie Oil and Gas - Investment Thesis
Genie Oil and Gas - Investment Thesis Growing Global Demand and Peaking Supply of “Easy” Oil is Driving Demand for New Conventional and Unconventional Sources of Production Oil Exploration License in Northern Israel - Near-term Production Potential * Genie exploration efforts identified a basin in N
Slide 7: Harold Vinegar, Ph.D., Chief Scientist, Genie Oil & Gas
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 Glen Perry,
Slide 8: Afek Oil & Gas
Afek Oil & Gas Genie’s exploration work in Israel has identified a potential oil block with billions of barrels of resource potential * The thesis is based on analysis and interpretation of cores from a previously drilled well documenting the existence of oil * Evidence exists of high geothermal gra
Slide 9: Afek Oil & Gas
Afek Oil & Gas Genie’s exclusive exploration license covers 396.5 square kilometers in Northern Israel * The three-year license was granted in 2013 and can be extended for up to four additional years. Upon attaining a discovery, the Company can apply for a commercial lease * Genie has conducted seve
Slide 10: Oil Shale
Oil Shale 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 * In-situ extraction has significant technical and environmental advantages and yields substan
Slide 11: Benefits of In Situ Conversion
Heaters inserted into Elevated temperature Recovery of light holes gradually heat upgrades kerogen to ) hydrocarbon products. subsurface lighter fractions Coke left in reservoir Benefits of In Situ Conversion Minimizes surface footprint - no mining necessary, more oil and gas from smaller area Less
Slide 12: Israel Energy Initiatives (IEI)
Israel Energy Initiatives (IEI) Exclusive oil shale exploration license in Israel * Covers 238 km? in south Shfela region with an estimated 40 billion boe in place * Upon conclusion of successful pilot and declaration of discovery, IEI is entitled to a long- term commercial lease * World class resou
Slide 13: Genie Mongolia
Genie Mongolia Genie partnership with the Mongolian government to explore a 34,400 kim? block for attractive oil shale deposits * Genie has identified a number of areas that potentially have world-class oil shale deposits (quantity, quality & richness) ¢ Exclusive five-year Joint Geological Survey (
Slide 14: 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 45% owned by Genie & 55% by Total, S.A. Piceance Basin fu _t * Genie operating AMSO during pre-commercial phase * Total funds the majority of R&D expenditures, provides technical experti
Slide 15: GOGAS' development approach creates near term and long term shareholder value
GOGAS’ development approach creates both near term and long term shareholder value Afek * Securing final permits for exploration drilling program Successful drilling of up to 10 wells with production tests (first oil) Conversion to commercial lease and startup of operations Israel Energy Initiatives
Slide 16: 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 17: IDT Energy - Meter + RCE Performance
IDT Energy - Meter + RCE Performance 600,000 * 2011-12: Focused on acquiring relatively 500,000 00000 higher consumption 300,000 electric meters primarily 200,000 in new PA territories woes 2006 2007 2008 2009 2010 2011 2012 2013 2014 * 2012: Strong sequential RESIDENTIAL CUSTOMER EQUIVALENTS (RCEs)
Slide 18: 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 result in stickier customer
Slide 19: Operating territories by state
@verseey California, Colorado, Florida, pw Jersey, Arizona, California, Colorado, DC, Florida, Georgia, Georgia, Illinois, Maryland, IDT Pennsylvania, Maryland, Illinois, Indiana, Kentucky, Maine, Maryland, Michigan, New York, Ohio, GEEAB DC Illinois Massachusetts, Michigan, Nevada, New Jersey, New
Slide 20: Total Meters
Total Meters Residential Meters Res. Meters Migrated to REPs % Res. Meters Migrated (in thousands) (in thousands) (in thousands) Existing Markets New York 11,422 10,113 2,265 22.4% 10.1% Pennsylvania 8,548 7,623 2,198 28.8% 2.9% New Jersey 6,810 6,054 796 13.1% 3.1% Maryland 3,367 3,042 767 25.2% 3.
Slide 21: IDT Energy - Results of Operations
IDT Energy - Results of Operations (USD in mittions) Revenue $63.7 $65.4 $85.3 $55.1 $71.6 $67.1 $130.3 $48.8 $229.5 $279.2 $317.8) Gross Profit 214 18.5 19.0 10.0 19.9 16.8 99 115 69.6 65.8 58.1 SG&A 12.7 10.6 10.2 94 10.3 10.1 10.8 10.5 44.6 40.1 41.7| Adjusted EBITDA 91 81 91 0.8 9.9 7.0 (0.8) 11
Slide 22: Genie Energy - Investment Thesis
Genie Energy - Investment Thesis Investment Exposure to Two Powerful Trends Within the Energy Sector * Increasing global demand and peaking production of conventional (easy) oil * Near-term upside of oil exploration license in northern Israel * Deregulation of the $240B retail energy market Experien
Slide 23: Genie Energy Financials
Genie Energy Financials {Dats Revenue $63.7 $65.4 $85.3 $55.1 $71.6 $67.1 $130.3 $48.8 $229.4 $279.2 $317.8 Gross Profit 214 185 190 $10.0 19.9 168 98 115 69.5 658 58.0 SG&A 15.2 134 124 $121 127 129 143 13.4 53.9 50.5 53.3 Research and Development 23 22 25 26 27 37 24 24 94 114 109 Equity in the Lo
Slide 24: 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 25: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials ci Energy Reconciliation of Non-GAAP Financial Measures In addition 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 includ
Slide 26: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Genie Energy (NYSE: GNE) Page 5 (in thousands) EBITDA Subtract (add): Depreciation and amortization Non-Cash Compenasation Income (loss) from operations IDT Energy - Results of Operations Page 21 (in thowsods) Adjusted EBITDA Subtract (add): Depreciation and amo
Slide 27: Contact: Avi Goldin, Chief Financial Officer
Energy Avi Goldin Chief Financial Officer agoldin@genie.com (973) 438-4075