Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (March 2024)
30 slides from Genie Energy's investor presentation, Mar 13, 2024
Slide 1: Genie Energy Ltd Investor Presentation March 2024
Genie Energy Ltd (NYSE: GNE) Investor Presentation March 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 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
Slide 3: Genie Energy At A Glance
Genie Energy At A Glance 1 Based on stock price as of 3/11/23 $429M Revenue 34.1% Gross Margin ~1.6% Dividend Yield 1 Genie Energy Ltd. Genie Retail Energy (GRE) Genie Renewables (GREW) ~4.9X EV 1 /Adj. EBITDA 3 $6.27 Net Cash /share ($0 Debt) Genie is a leading provider of electricity, natural gas
Slide 4: Track Record of Driving Shareholder Returns
Track Record of Driving Shareholder Returns Recent Market Value * Market Value Company $447 10/28/11 (Spin - off) Genie Energy (NYSE: GNE) $956M $53M (9/14/09) IDT Corp (NYSE: IDT) $6M 9/14/09 (Spin - off) IDW Media (OTCBB: IDW) $2,164M (sold to VZ Feb’18) 7/31/13 (Spin - off) Straight Path Communic
Slide 5: Investment Highlights
Investment Highlights Large market opportunity Attractive Growth Profile Portfolio & Risk Management Are Differentiators Strong Balance Sheet/Cash Flow Provide Strategic Flexibility 5
Slide 6: Large Market Opportunity
LARGE MARKET OPPORTUNITY
Slide 7: Our Opportunity: Selling Electricity & Natural Gas in De-Regulated U.S. Markets
Our Opportunity: Selling Electricity & Natural Gas in De - Regulated U.S. Markets… • GRE has a presence in 18/28 states + Washington D.C. • Additional states considering de - regulation in various forms 7
Slide 8: ...And in Developing, Owning & Operating Solar Farms
…And in Developing, Owning & Operating Solar Farms *Solar Energy Industry Association Commercial >600K Commercial Facilities 1% Penetration Utility Components Supply chain issues receding Community 7% CAGR thru 2028* Favorable Regulatory Environment “In the next half decade, the long - term tax ince
Slide 9: Attractive Growth Profile
ATTRACTIVE GROWTH PROFILE
Slide 10: Our Organic Growth Strategy is...
Our Organic Growth Strategy is… Retail Solar • Take share in existing markets • Opportunistically expand retail book geographically • Introduce new products • Focus on customer retention to manage churn • Originate, develop, own & operate solar farms • Differentiate solar through vertical integratio
Slide 11: ...Complemented by Inorganic Growth
…Complemented by Inorganic Growth 01 Retail Acquisitions – customer books or companies 02 Direct purchase, development and operation of solar farms by GREW 03 General Partner for Sunlight Energy Investments - owned solar farms 04 Invest in new renewable technologies 11
Slide 12: Attractive Financial Returns
Attractive Financial Returns Targeted payback period tailored to product & customer type How We Grow in Retail Multiple sales channels Diverse portfolio of products Deep data analysis to identify market opportunities & optimize offerings Targeted M&A Hedging strategies reduce commodity volatility ri
Slide 13: How We Grow in Solar: Vertical Integration
How We Grow in Solar: Vertical Integration GREW Genie Solar Origination, development, construction Portfolio management & operations Third Party Services Sunlight Energy Investments Investment vehicle Third - party Capital 13 Development Pipeline* Operational Total Construction Permitting Site Contr
Slide 14: Portfolio Businesses
Portfolio Businesses Includes: • Early investments in non - core businesses • Attractive long - term potential Portfolio Highlight: Diversegy One of the nation’s leading retail energy brokerage firms • Sales channels: sales agents; brokers; commercial sales orgs • Customers: commercial, industrial a
Slide 15: Portfolio and Risk Management
PORTFOLIO AND RISK MANAGEMENT
Slide 16: Hedging Program: How We Opportunistically Drove Massive Returns for 2022
» Hedged customer book heading into colder months » Long Energy in U.S. and Europe 2H21 » Exited UK - returned cash to U.S. Global Events: Energy Crisis in Europe » UK energy market disintegrates » Long Energy » Portfolio management of low margin customers in U.S. drives strong margins GRE » Long En
Slide 17: Financial Summary
FINANCIAL SUMMARY
Slide 18: GNE: Significant Margin Expansion and Adj. EBITDA Growth Lead to Higher Baselines
GNE: Significant Margin Expansion and Adj. EBITDA Growth Lead to Higher Baselines 25% 30% 35% 40% 45% 50% 55% $0 $100 $200 $300 $400 2023 Gross Margin $m 2019 2020 2021 2022 *Non - GAAP measures – see reconciliation to closest GAAP measures in the Appendix 18 » Growth in 2023 increased our baseline
Slide 19: Driven by GRE Strength
Driven by GRE Strength* 25% 30% 35% 40% 45% 50% 55% 60% $0 $50 $100 $150 $200 $250 $300 $350 2019 2020 2021 2022 2023 Revenue Op. Inc. Adj. EBITDA* Gross Margin $m $400 *Non - GAAP measures – See reconciliation to closest GAAP measures in Appendix 19
Slide 20: GREW: Positioned for Future Growth
GREW: Positioned for Future Growth * 0% 5% 30% 25% 20% 15% 10% 40% 35% - $5 $5 $15 $25 2019 2020 2021 2022 2023 Revenue Op. Inc. Adj. EBITDA* Gross Margin $m $35 2023/2024 » Project acquisition and development » Investing in internal capabilities e.g. expanding salesforce Pre - 2022: Third Party Ser
Slide 21: Strong Balance Sheet Provides Optionality
Strong Balance Sheet Provides Optionality * * As of 12/31/23, Cash includes Cash and Cash Equivalents, short and long - term restricted cash and marketable securities $0.0 $163.4 $131.6 $330.6 Debt Cash Working Capital Total Assets 21
Slide 22: Valuation Comps
Valuation Comps * * As of 12/31/23 unless noted $17.15 a/o 3/11/24 GNE Stock Price $447M a/o 3/11/24 GNE Market Cap $163M GNE Cash ($0 debt) $283M GNE Enterprise Value $58M GNE Adj. EBITDA 4.9X a/o 3/11/24 GNE EV/EBITDA Multiple 8.3X a/o 3/11/24 GNE PE Ratio 20.2X DJ Utility Index PE $1,084M Implied
Slide 23: Capital Allocation Strategy Drives Shareholder Returns
Capital Allocation Strategy Drives Shareholder Returns Common stock dividend (currently $0.075/quarter) Common Stock Opportunities for outsized growth potential (e.g. Solar) Select M&A Retail Customer acquisition New retail markets New retail products Internal Reinvestment Corporate Development Divi
Slide 24: Summary
Summary Large market opportunity Attractive Growth Profile Portfolio & Risk Management Are Differentiators Strong Balance Sheet/Cash Flow Provide Strategic Flexibility 24
Slide 25: Thank You!
THANK YOU! Michael Stein Chief Executive Officer IR Contact: Brian Siegel Senior Managing Director Hayden IR (346) 396 - 8696 brian@haydenir.com Avi Goldin Chief Financial Officer
Slide 26: Appendix: Non-GAAP Measures
APPENDIX: Non - GAAP Measures Use of Non - GAAP Measures Adjusted EBITDA, defined as earnings (loss) before interest, taxes, depreciation and amortization, stock compensation expense, transaction - related expenses and other non - recurring expenses, and non - GAAP net income and EPS (which adjust o
Slide 27: Appendix: Financials
APPENDIX: Financials * Excludes the impact of Texas Winter Storm Uri in 2021 and Genie Retail International – see reconciliation to closest GAAP measure on next slide. ** Excludes the one - time $45.1mm non - cash charge for captive insurance reserve – see reconciliation to closest GAAP measure on n
Slide 28: Reconciliation Tables – Genie Energy Financials - Consolidated
Reconciliation Tables Slides 3,18,26 – Genie Energy Financials - Consolidated 2023 2022 2021 2020 2019 $428,710 $315,540 $323,270 $338,430 $300,100 Consolidated revenue (as reported) -- - -- - $3,930 $8,770 $1,400 Less: Revenue of Genie Japan $428,710 $315,540 $319,340 $329,660 $298,700 Adjusted con
Slide 29: Reconciliation Tables – GRE Financial Highlights
Reconciliation Tables Slide 19 – GRE Financial Highlights 2023 2022 2021 2020 2019 $409,880 $303,970 $311,830 $304,450 $286,610 GRE revenue (as reported) $143,360 $152,980 $90,880 $88,310 $80,620 GRE gross profit (as reported) -- - -- - ($10,000) -- - -- - Less Gross loss from Winter Storm Uri $143,
Slide 30: Reconciliation Tables – GREW Financial Highlights
Reconciliation Tables Slide 20 – GREW Financial Highlights TTM 2022 2021 2020 2019 ($5,510) ($3,130) $250 ($2,570) ($2,890) Income (Loss) from Operations Add Back: $30 -- - -- - -- - -- - Non - Cash Compensation $110 $50 $50 $330 $1,010 Depreciation & Amortization -- - -- - -- - $1,400 $400 Impairme