Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (July 2015)
21 slides from Genie Energy's investor presentation, Jul 28, 2015
Slide 1: Genie Energy Ltd Investor Presentation July 2015
Genie Energy Ltd (NYSE: GNE, GNEPRA) Energy Investor Presentation July 2015
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 1993,
Slide 3: Investment Case
Investment Case * Genie Energy combines the poe upside of energy exploration with the strong financial performance of a Retail Energy Provider (REP) * Strong balance sheet and capital structure with more than $74mm in cash* * Strong cash flows since inception, currently reinvested in oil production
Slide 4: Genie Energy Ltd.
Genie Energy Ltd. ie Retail Energy Genie Oil & Gas Afek Oil & Gas Stock Price* $9.73 Dividend Yield 2.5% Stock Price* $6.84 Dividend Yield 9.3% Cash & Marketable Securities** $74.0 Million Revenue (TTM)*"** $219.0 Million Full Time Employees 200 “Tarket date ae of WSIS includes Cash, Restricted Cash
Slide 5: Afek Oil & Gas World Class Team
Afek Oil & Gas World Class 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
Slide 6: Afek Oil & Gas
Afek Oil & Gas Genie’s exploration work in Israel has identified a oil block with significant hydrocarbon potential * Analysis of cuttings from a previously drilled well document the existence of oil + High geothermal gradients may have caused Type IIS Kerogen to enter the “oil window” at shallow de
Slide 7: Ein Said Well
Ein Said Well = Water well drilled in 1981 = Oil shows reported from 660-900 m. ~200x Resistivity Increase Coinciding with oil shows and cuttings maturity = Logs run from 410-730 m * Well abandoned in 1984 = Afek was able to extract trapped light oil from the cuttings 31 years later Oil Zone ~150 MM
Slide 8: Stratigraphy and Estimated Reservoir Properties
Stratigraphy and Estimated Reservoir Properties Stratigraphy Formation Thickness Age Bashan Basalt 0- 600m Pleistocene 400 - 1600m Adullam Eocene Taaiya '90- 200m Paleocene Ghareb ‘80- 180m Maastrichtian Upper Mishash 90- 125m Campanian Mishash 120- 155m Campanian ‘Menuha ‘80- 160m Senonian Source:
Slide 9: Geophysical Survey
Geophysical Survey = Seismic reprocessing of 5 existing lines to map basin structure 785) = CSEM survey to map the resistivity profile and gravity survey was conducted in 2013 760 135 « High resistivity was measured at target depths across majority of the license area = Gravity anomaly consistent wi
Slide 10: AFEK Exploratory Drilling Program locations permitted for drilling
AFEK Exploratory Drilling Program 70 10 locations permitted for drilling 1% and 2 wells drilled Drilling contractor - Viking Extensive logging program by Baker Hughes including acoustics, borehole imaging, and NMR logs 27 m of conventional core will be taken from each well followed by routine and sp
Slide 11: Genie Retail Energy - Overview
Genie Retail Energy - Overview Genie Retail Energy is a leading retail energy provider (REP) * Founded in 2004, now one of the largest independent residential REPs in Eastern US * Purchases electricity and gas in wholesale markets for resale to end users * Delivery, billing and collections remain re
Slide 12: Meters
METER: 2saec0 29000 159000 COMMENTA) 2011-12: Acquisition of higher consumption electric meters in new PA territories 2012; Strong sequential electric meter and RCE growth 2013: Pending roll out of new territories 2014: First half Polar Vortex increases churn. Second half stabilization 2015: Acceler
Slide 13: 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 custome
Slide 14: Genie Retail Energy financials (USD in millions)
(80 in mions) S188 $16.2 $19.7 S74 $2295 $2792 $275.0) Revenue $551 $716 $67.1 $1303 Gross Profit 100 199168 99 5 7B B17. 6 = «SB 52O SGEA 94 103 01S SAT 446 401486 Adjusted EBITDA 08 99 70 (0.8) 14 a7 14 36 263 267 75 TARY Strong financial performance; 1Q14 Polar Vortex caused first negative quarte
Slide 15: Residential meters and REP penetration by market
Residential Res. Meters % Res. Total Meters| ee Migrated to Meters REPs Migrated (in thousands) (in tonsa) (in thousands) E 1g Markets New York 11422 10,113 2,265 22.4% 9.6% Pennsylvania 8,548 7,623 2,198 28.8% 2.8% New Jersey 6810 6,054 796 13.1% 5.3% Maryland 3,367, 3,042 767 25.2% 2.0% Mlinois 3,
Slide 16: Genie Energy - Investment Thesis
Genie Energy - Investment Thesis Investment Exposure to Two Powerful Trends Within the Energy Sector * Increasing global oil demand + Near-term potential upside of oil exploration license in northern Israel + Deregulation of the $240B U.S. retail energy market Experienced Management Team * Oiland Ga
Slide 17: Genie Energy Financials
Genie Energy Financials (USD in millions) Revenue Gross Profit SG&A Research and Development Equity in the Loss of AMSO,LLC Adjusted EBITDA $55.1 $10.0 $124 2.6 08 (4) EXES $71.6 $67.1 $130.3 $48.8 $46.2 $49.7 $74.4 $229.4 $279.2 $275.0) 199 127 27 07 5.0 16.8 12.9 37 06 0.7 98 15 178 128 172 695 65
Slide 18: 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 19: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Reconciliation of Non-GAAP Financial Measures In adaition o including financial results that are determined in accordance with generally accepted accounting principles inthe United States of America (GAAP), Genie Energy's investor presentation included Adjusted
Slide 20: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials ‘Gene Energy (NYSE: GNE} Genie Pages Energy hours mM EBITDA, 7113) Sultrat (add Depreciation and amortization Impairment ‘Other Loses (Gains) Stock-based Compensation Income less) rom operations Genie Retall Energy Results of Operations Page 1 ond) 203-30 Qs 1GI
Slide 21: Energy
Energy Howard Jonas Dr. Harold Vinegar Avi Goldin Chief Executive Officer Chief Scientist Chief Financial Officer hjonas@genie.com hvinegar@genie.com agoldin@genie.com