Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (November 2014)
27 slides from Genie Energy's investor presentation, Nov 12, 2014
Slide 1: Genie Energy Ltd Investor Presentation
Genie Energy Ltd (NYSE: GNE, GNEPRA) Energy Investor Presentation November 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 ipa of energy exploration with the strong financial performance of a traditional Retail Energy Provider (REP) + Strong balance sheet and capital structure with over $100mm in cash * Cash flows are reinvested in growth opportunities across the company + Curren
Slide 4: Genie Overview
Genie Overview OilsGas 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 Energy key market data
Genie Energy International Corp. Genie Oil & Gas Genie Retail Energy Stock Price* Stock Price* $7.25, Market Capitalization* $190 Million Debt $0 Million EBITDA (TTM)** $1.5) Million Fiscal Year End * Market data as OF 90714 includes Cash, Restricted Cash and Marketable Secures as 6/30/14 “~* TTM -
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: Genie Oil & Gas technical team
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 froma previously drilled well documenting the existence of oil * Evidence exists of high geothermal grad
Slide 9: Afek Oil & Gas license
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 fora commercial lease * Genie has conducted sever
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 subst
Slide 11: In Situ Conversion
In Situ Conversion holes gradually heat upgrades kerogen to hydrocarbon products. Heaters inserted into Elevated temperature } Recovery of light subsurface ) lighter fractions Coke left in reservoir Benefits of In Situ Conversion Minimizes surface footprint - no mining necessary, more oil and gas fr
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 Legend Terminal Pumping Station ¢ Upon conclusion of successful pilot and declaration of discovery, IEI is entitled to a long- term comm
Slide 13: Genie Mongolia
Genie Mongolia Genie has secured prospecting agreements covering ~60,000 km? to explore for attractive oil shale deposits * Genie has identified a number of areas that potentially have world-class oil shale deposits (quantity, quality & richness) ¢ In April 2013 signed an exclusive five-year Joint G
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 44% owned by Genie & 56% by Total, S.A. : Piceance Basin * Genie operating AMSO during pre-commercial phase 1Z VS (‘he * Total funds the majority of R&D expenditures, provides technical
Slide 15: GOGAS development approach creates near and long term 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 G
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: Residential customer meters and commentary
COMMENTARY 600,000 * 2011-12: Focused on 500,000 i 2 acquiring relatively alae higher consumption 300,000 electric meters primarily in new PA territories 2006 2007 2008 2009 2010 201 20 2013 sare * 2012: Strong sequential RESIDENTIAL C' electric meter and RCE growth * 2013: Pending roll out of new t
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: Diversegy and Epiq markets served
IVERSEGY —C Colorado, Flori New York, New Jersey, Arizona, California, Colorado, DC, Florida, Georgia, Georgia, Illinois, Maryland, Pennsylvania, Maryland, Ilinois, Indiana, Kentucky, Maine, Maryland, igan, New York, Ohio, DC, Illinois Massachusetts, Michigan, Nevada, New Jersey, New ini York, Ohio,
Slide 20: IDT Energy - Markets & Opportunities
IDT Energy - Markets & Opportunities Res. Meters % Res. Residential Hil viigrated to Meters Total Meters otal Meters Meters REPs Migrated (in thousands) (in thousands) in thousands) Existing Markets New York 11422 10,113 2,265 22.4% 10.0% Pennsylvania 8,548 7,623 2,198 28.8% 2.7% New Jersey 6,810 6,
Slide 21: IDT Energy - Results of Operations
IDT Energy - Results of Operations (USD in millions) Revenue $65.4 $85.3 $55.1 $71.6 $671 $1303 $488 $46.2 $229.5 $279.2 $292.4] Gross Profit 18.5 19.0 10.0 189 16.8 oo 115 178 69.6 65.8 56.0] SG&A 10.6 10.2 94 10.3 10.1 10.8 10.5, 12.2 44.6 40.1 43.6] Adjusted EBITDA. 81 91 0.8 99 7.0 (0.8) 11 87 2
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 (USD in millions) Revenue $65.4 $85.3 $55.1 $71.6 $67.1 $130.3 $48.8 $48.1 $229.4 $279.2 $294.3) Gross Profit 18.5 19.0 $10.0 19.9 168 98 115 178 695 658 55.9 SG&A 134 124 $121 127 129 143 134 189 53.9 50.5 59.5 Research and Development 22 25 26 27 337 2s 24 3.0 94 114 11.2 E
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 Reconciliation of Non-GAAP Financial Measures ergy In addition to including financial results that are determined in accordance with generally accepted accounting principles in the United Sates of America (GAAP), Genie Energy's investor presentation included Adj
Slide 26: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Genie Energy (NYSE: GNE) Genie Page 5 Energy Gnthowsenis) TIM EBITDA (65,688) Subtract (add): Depreciation and amortization 12 ‘Stock-based Compensation Income (loss) from operations IDT Energy - Results of Operations Page 21 fn tiawands) 49122, 10132018. 313, a
Slide 27: Contact
Energy Avi Goldin Chief Financial Officer agoldin@genie.com (973) 438-4075