Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (November 2023)
29 slides from Genie Energy's investor presentation, Nov 27, 2023
Slide 1: Investor Presentation November 2023
Investor Presentation November 2023 Genie Energy Ltd (NYSE: GNE)
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 *as of quarter ended 9/30/23 ** from continuing operations ***see reconciliation in appendix 1 Based on stock price as of 11/18/23 $405M TTM Revenue* 36.4% TTM GM* $65M TTM Adj. EBITDA*/*** ~1.2% Dividend Yield 1 Genie Energy Ltd. Genie Retail Energy (GRE) Genie Renewables (
Slide 4: Track Record of Driving Shareholder Returns
Track Record of Driving Shareholder Returns Most Recent Market Value * Market Value Company $700M 10/28/11 (Spin - off) Genie Energy (NYSE: GNE) $707M $53M (9/14/09) IDT Corp (NYSE: IDT) $7M 9/14/09 (Spin - off) IDW Media (NYSE American: IDW) $2,164M (sold to VZ Feb’18) 7/31/13 (Spin - off) Straight
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 Community Commercial Utility >600K Commercial Facilities 1% Penetration Components Shortages due to global supply chain issues 8X DOE Est. Growth thru 2025 Favorable Regulatory Environment “ In the next half decade
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 Retail Acquisitions – customer books or companies 01 Direct purchase, development and operation of solar farms by GREW 02 General Partner for Sunlight Energy Investments - owned solar farms 03 Acquire new renewable technologies 04 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 Lead generation, customer acquisition, billing & management services Sunlight Energy Investments Investment vehicle Third - party Capital 13 Development Pipeline* Cons
Slide 14: Portfolio Businesses
Portfolio Businesses 14 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, industria
Slide 15: Portfolio and Risk Management
PORTFOLIO AND RISK MANAGEMENT
Slide 16: Hedging Program: How We Opportunistically Drove Massive Returns in 2022
» Hedged customer book heading into colder months » Long Energy in U.S. and Europe 2H21 » UK energy market disintegrates » Exited UK - returned cash to U.S. Global Events: Energy Crisis in Europe » Long Energy » Portfolio management of low margin customers in U.S. drives strong margins GRE » Long En
Slide 17: Financial Summary
FINANCIAL SUMMARY Energy
Slide 18: GNE: Significant Margin Expansion and Adj. EBITDA Growth
GNE: Significant Margin Expansion and Adj. EBITDA Growth * 25% 30% 35% 40% 45% 50% 55% $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2019 2020 2021 2022 TTM Revenue Operating Income Adj. EBITDA Gross Margin $m *Pro forma excluding the impact of Texas Winter Storm Uri (2021), International operation
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 $400 2019 2020 2021 2022 TTM Revenue Op. Inc. Adj. EBITDA Gross Margin $m *Pro forma excluding the impact of Texas Winter Storm Uri (2021) TTM a/o 9/30/23 Please see reconciliations in Appendix 19
Slide 20: GREW: Re-Positioned for Future Growth
GREW: Re - Positioned for Future Growth * 0% 5% 10% 15% 20% 25% 30% 35% 40% -$5 $5 $15 $25 $35 2019 2020 2021 2022 TTM Revenue Op. Inc. Adj. EBITDA Gross Margin $m * Please see reconciliations in Appendix 2023/2024 » Project acquisition and development » Investing in internal capabilities e.g. expan
Slide 21: Strong Balance Sheet Provides Optionality
Strong Balance Sheet Provides Optionality * * As of 9/30/23 $0.0 $144.0 $165.0 $316.0 Debt Cash Working Capital Total Assets 21
Slide 22: Valuation Comps
Valuation Comps * * TTM As of 9/30/23 22 $25.35 (a/o 11/18/23) GNE Stock Price $700M GNE Market Cap $144M GNE Cash ($0 debt) $556M GNE Enterprise Value $65M GNE Adj. EBITDA * 8.6 X GNE EV/EBITDA Multiple 11.7X GNE PE Ratio 21.8X DJ Utility Index PE EV/EBITDA Multiples : 13.8 Utility Industry Current
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: Pro-forma Financials
APPENDIX: *Pro - forma Financials • Pro - forma excluding the impact of Texas Winter Storm Uri in 2021 and International $ (000's) 2019 2020 2021 2022 TTM Revenue GRE $286,610 $304,450 $311,830 $303,970 $321,500 GREW $12,090 $25,210 $7,510 $11,570 $13,390 Total Revenue $298,700 $329,660 $319,340 $31
Slide 27: Reconciliation Tables – Genie Energy Financials
Reconciliation Tables Slides 18,26 – Genie Energy Financials - Consolidated 2019 2020 2021 2022 TTM Consolidated revenue (as reported) $300,100 $338,430 $323,270 $315,540 $334,890 Less: Revenue of Genie Japan $1,400 $8,770 $3,930 --- --- Pro forma consolidated revenue $298,700 $329,660 $319,340 $315
Slide 28: Reconciliation Tables – GRE Financial Highlights
Reconciliation Tables Slide 19 – GRE Financial Highlights GRE revenue (as reported) $286,610 $304,450 $311,830 $303,970 $321,500 GRE gross profit (as reported) $80,620 $88,310 $90,880 $152,980 $138,940 Less Gross profit (loss) from Winter Storm Uri --- --- ($10,000) --- --- Pro-forma GRE gross profi
Slide 29: Reconciliation Tables – GREW Financial Highlights
Reconciliation Tables Slide 20 – GREW Financial Highlights 2019 2020 2021 2022 TTM Income (Loss) from Operations ($2,890) ($2,570) $250 ($3,130) ($2,610) Add Back: Non-Cash Compensation --- --- --- --- --- Depreciation & Amortization $1,010 $330 $50 $50 $50 Impairment $400 $1,400 --- --- --- GREW Ad