Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (November 2011)
23 slides from Genie Energy's investor presentation, Nov 15, 2011
Slide 1: Genie Energy Ltd Investor Presentation
Genie Energy Ltd (NYSE: GNE) Energy Investor Presentation November 15, 2011
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward Joking statement, Statements that are not Neto ats are fora ooking statements and duck forward looking statements are sltements made pursuant to the Safe Harbor Provisions of the Private Securties ‘itigation Reform Act of 1995, Examples of for
Slide 3: Cautionary Statements Regarding Oil and Gas Quantities
Cautionary Statements Regarding Oil and Gas Quantities The Securities and Exchange Commission (“SEC”) Rermits 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 4: Genie Energy
Genie Energy (NYSE: GNE) Genie Energy was spun out from IDT Corp to shareholders on October 28 2011 Genie Energy Corporate Headquarters Newark N] | shares Outstandin; 2,7 million : Volume 170 thousand IDT Energy Genie Oil & Gas Ey Ey Revenue (ITM) $203.6 million nterpese Yates EOD i Oil(AMSO) Instit
Slide 5: Genie Overview
Genie Overview Energy IDT Energy (IDTE) IDT Energy is a retail energy provider (REP) operating in the Northeast U.S. +Founded in 2004, now one of the largest independent residential REPs in New York State *Purchases electricity & gas in wholesale markets for resale to end users “Delivery, billing &
Slide 6: IDT Energy - Investment Thesis
IDT Energy - Investment Thesis Utility Industry Deregulation Presents Large Market Opportunity Market deregulation provides competitive access for the first time to a $240B’ market Experienced, Proven Operator In Highly Fragmented Market Management team with years of experience in building and opera
Slide 7: 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 are successful with a primarily variable book (limited commodit
Slide 8: IDT Energy - Overview
IDT Energy - Overview IDT Energy is a leading regional energy provider (REP) + Founded in 2004, now one of the largest independent residential REP in New York State + Purchases electricity & gas in wholesale markets for resale to end users * Delivery, billing & collections remain responsibility of i
Slide 9: Meters
METERS 2004 2005-2006 ©2007 RCEs COMMENTAR From ‘04-09 the company rapidly grew the meter base to the 400k meter level “10-11 successfully shifted base of meters to higher usage customers as evidenced by the RCE growth +10% Q-O-Q RCE growth in F4Q11 on increased marketing, efforts and new market pen
Slide 10: Meters by market
Total OR or Meters Market Meters Migrated Share (Gionmeane)——(ouhaeents)—— (or Sancont) Markets ‘New York 11480 10,131 172 17.0% 19.9% Pennsylvania 5,650 4613 1344 29.1% 1.9% New Jersey 6,763 6,007 393 6.5% 9.6% Total Existing Markets 23,893 20,751 3A59 16.7% 117% Prospective Markets Maryland, Ilino
Slide 11: IDT Energy - Representative Meter Economics
IDT Energy - Representative Meter Economics Electric Gas Meter Dual Meter~ Average Consumption 6,319 617 Gross Profit (per unit )* $0.034 $0.159 |Gross Profit $215 $62 Incremental SG&A Expenses $29 $22 Incremental Cash Flow Per Meter $186 $76 Contriwton naires y ion ands Mat oe Rewriaseoeape Asner r
Slide 12: IDT Energy quarterly financial results
conc EES Ce [ee [Le Revenue $465 $45.5 $578 «$538 S4O4 $203.5 $2014 $264.7 Gross Profit, si2 $147, S13_——s S168 S110 $538 $57.8 $722 Gross Margin % 240% 324% «19.6% = 312% «3.8% 26.4% 28.7% = 273% SG&A $55 $5.9 $59 $82 $86 $28.6 $198 $267 Adjusted EBITDA. $5.7 $8.8 S34 98.6 ($0.3) s22.5* 938.0 $55 S
Slide 13: Genie Oil and Gas - Investment Thesis
Genie Oil and Gas - Investment Thesis Shrinking Global Supply Creates Need For New Sources of Oil Exploration Agreements in Two of the Top Three Global Oil Shale Deposits * Genie has secured exploration rights in the Green River Formation (Colorado-US. 1.4 Trillion BBL) and Shfela Basin (Israel, ~25
Slide 14: 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 ° In-situ extraction has significant technical and environmental a
Slide 15: Israel Energy Initiatives (IEI)
Israel Energy Initiatives (IEI) Exclusive oil shale exploration license in Israel Covers 238 sq. km in south of Hashfela region ¢ Estimated 40 billion boe in place * Subject to permitting and approvals * Upon conclusion of successful pilot and declaration of discovery, [EI is entitled to a , " : = J
Slide 16: Oil Shale Potential of Israel
Oil Shale Potential of Israel * Israel has one of the largest and best oil shale deposits in the world 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 ¢ Complete Isolation fr
Slide 17: 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 Genie operating during pre-commercial phase fi Total funding the majority of R&D expenditures, provides technical expertise, and will
Slide 18: Illustrative Project Development Timeline
Illustrative Project Development Timeline <* ‘Two Years Two Years an § Conduct Design, construct Construct design and Scale up to full comprehensive and operate a pilot operate demo facility commercial geological survey facility operations ctor Up to 2,000 bpd First Oil Produced steady state Demonst
Slide 19: Genie Energy - Investment Thesis
Genie Energy - Investment Thesis 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 the bus
Slide 20: Appendix
Appendix
Slide 21: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Reconilition of Now- GAAP Financial Measstes In adaition to inching nancial eslls that are determined in accordance with general accepted accounting principles in the United Sats of America (GAAP), (Genie Energy’ investor presentation inciaded Adjisted EBIIDA, w
Slide 22: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Genie Energy (NYSE: GNB) Genie Page + Energy (thst) TIM EBITDA $12,236 Subtract (add) Depreciation and amortization 24 Income (loss) from operations aa IDT Energy - Results of Operations Page 9 (thconds) 4Qt0 1QM QU sQl aQuEssFYML,sFY0—sFYB Adjusted EBITDA $5,66
Slide 23: Energy
Energy