Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (January 2013)
26 slides from Genie Energy's investor presentation, Jan 15, 2013
Slide 1: Genie Energy Ltd Investor Presentation
Genie Energy Ltd (NYSE: GNE, GNEPRA) Energy Investor Presentation January 2013
Slide 2: Safe Harbor Statement
Safe Harbor Statement Energy 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 o
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 sensitivitie
Slide 4: Genie Overview
Genie Overview IDT Energy IDT Energy is a retail energy provider (REP) operating in the Eastern 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 over 500k m
Slide 5: Genie Energy
Genie Energy Genie Energy was spun off from IDT Corp to shareholders on October 28'" 2011 Genie Energy Stock Price® $7.43 Stock Price* $7.19 IDT Energy Genie Oil & Gas ‘Shares Outstanding 1.6 million) - Market Capitalization* $170 million Revenue (TTM)*** $208 million (AMSO) ‘EBITDA (TTMy"** $0.6) m
Slide 6: Genie Energy SpinOff
Genie Energy SpinOff * Genie Energy was spun off from IDT Corporation (NYSE:IDT) in 2011. IDT Corp. is a multinational holding company with operations in Telecommunications, Financial Services, Software Development and Mobile Media + The spinoff combined IDT’s energy related activities under a singl
Slide 7: Genie Preferred Stock: GNEPRA
Genie Preferred Stock: GNEPRA Energy * In July 2012 Genie launched an exchange offer for a newly created class of preferred stock. The offer provided investors focused on income generation the opportunity to convert into a security that aligns closely with that preference while maintaining limited u
Slide 8: 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 9: IDT Energy expansion timeline
Receives supplier || Expands its service license & enrolls |_| offering to include first customers in Green Energy New York supply options November, 2004] | October, 2005 Expands the Receives license serviceable from Maryland PSC| footprint to all of and enrolls its first New York State, customers i
Slide 10: 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 11: Residential Customer Equivalents growth
* 2011-12: Focused on aionctgpanplecnnge mene acquiring relatively higher consumption electric meters primarily in new PA territories a ) RESIDENTIAL CUSTOMER EQUIVALENTS (RCEs) * 2012: Strong sequential electric meter and RCE growth * 3Q12: Entered fourth state - Maryland 7
Slide 12: IDT Energy - Markets & Opportunities
IDT Energy - Markets & Opportunities Residential ff Re Meters % Res. DT sera Migrated tof Meters Market sites REPs Migrated Share (oxthosonls)——(othowanls)——(nthosands) Existing Markets New York 11,480 10,131 1,896 18.7% 18.8% 2005| Pennsylvania 5,650 4,613 1,924 411.7% 6.5% 2010 New Jersey 6,763 6,
Slide 13: IDT Energy quarterly financials
erin) 1Q11 2Qn1 3Qi1 aqui 1912 2Q12 3Q12 Revenue $63.4 $38.7 $52.2 $43.6 $575 $42.8 963.7 Gross Profit 17.2 98 19.0 10.7 18.0 116 24 SG&A 73 79 126 93 10.7 10.6 127 EBITDA and Income from Operations 99 19 64 14 74 1 87 COMMENTARY Consistently EBITDA positive All customer acquisition and marketing co
Slide 14: Genie Oil and Gas - Investment Thesis
Genie Oil and Gas - Investment Thesis Growing Global Demand and Peaking Supply of “Easy” Oil Driving Demand for Unconventional Sources Exploration Agreements in Two of the Top Three Global Oil Shale Deposits + Genie has secured exclusive exploration rights to areas in the Green River Formation (Colo
Slide 15: 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 16: Is Oil Shale the Next Canadian Oil Sands?
Is Oil Shale the Next Canadian Oil Sands? 3% Energy 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
Slide 17: Israel Energy Initiatives (IEI)
rael Energy Initiatives (IEI) Exclusive oil shale exploration license in Israel * Covers 238 sq. km in south of the Shfela 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 18: Oil Shale Potential of Israel
Oil Shale Potential of Israel * Israel has one of the largest oil shale deposits in the world and is one of the best 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 * Complet
Slide 19: 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 ‘ * Genie operating AMSO during pre-commercial phase * Total funding the majority of R&D expe
Slide 20: Development phases: appraisal, pilot, demo, commercial
+ + + + - Two Years Two -Three Years Three-Four Years raisal Phase ot Phase Demo Phase 5 Million 35 Million 100 Million Conduct Design, construct and Construct design and Scale up to full comprehensive operate a Pilot operate demo facility commercial geological survey facility pin B00 ipa operations
Slide 21: Genie Energy Financials
Genie Energy Financials comm ce Ce Revenue $63.4 $38.7 43.6 7.5 $42.8 $63.7 Gross Profit 17.2 98 19.0 10.7 18.0 11.6 214 SG&A 77 84 136 10.8 12.4 129 152 Research and Development 23 18 16 16 21 28 23 Equity in the Loss of AMSO,LLC 07 22 16 12 08 0.9 05 EBITDA and Income (Loss) from Operations 65 (26
Slide 22: Genie Energy - Investment Thesis
Genie Energy - Investment Thesis Energy Investment Exposure to Two Powerful Trends Within the Energy Sector “Deregulation of the $240B retail energy market “Increasing global demand and peaking, production of conventional (easy) oil Experienced Management Team *REP led by industry veterans who built
Slide 23: Appendix
Appendix
Slide 24: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials a Energy Reconciliation of Non-GAAP Financial Measures In addition to inclucling 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 25: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Genie Energy (NYSE: GNE. GNEPRA) Genie Page 5 Energy (in thousands) TIM EBITDA ($1,605) Subtract (add): Depreciation and amortization 100 Income (loss) from operations Gi,705) 2
Slide 26: Energy
Energy