Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (May 2018)
16 slides from Genie Energy's investor presentation, May 10, 2018
Slide 1: Genie Energy Ltd Investor Presentation May 2018
Genie Energy Ltd (NYSE: GNE) Energy Investor Presentation May 2018
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: At a Glance
Genie Energy: At a Glance Genie Retail Energy Genie Retail Energy lomestic NEPRA) Afek Oil & Gas Genie Retail Energy International Genie Energy Class B Common Stock Stock Price’ $5.13 Dividend Yield" w 0 S Genie Energy Series 2012-A Preferred Stock Stock Price® $7.34 Dividend Yield’ 8.7% Debt" $2.5
Slide 4: Investment Thesis
Investment Thesis * Strategic Transition: Genie Energy is focusing on its retail energy supplier business after curtailing oil and gas (O&G) exploration activities. Company is positioned for significant improvements in profitability as O&G exploration expenditures decline * Strong growth in core bus
Slide 5: Genie Retail Energy - Overview
Genie Retail Energy - Overview Genie Retail Energy is a leading retail energy provider (REP) ¢ Founded in 2004, now among the largest independent residential REPs ¢ Operations in 14 US states and Great Britain * History of strong financial performance Value proposition ¢ Customers: Power of choice,
Slide 6: Meter and RCE Performance
Meter and RCE Performance M RS COMMENTARY 550,000 Total Meters ¢ 2014: First half Polar Vortex increases churn. Second half 450,000 / . stabilization — ¢ 2015-2016: Strong sequential electric meter, RCE growth ic and new territories ¢ 2016: Acquired Town Square am 2006 2007 2008 2009 2010 2011 2012
Slide 7: Retail Value Chain
Retail Value Chain Customer Acquisition Model Long-term, valuable customers * Multiple sales channels across multiple regions * Diverse product offerings * Deep data analysis to identify market opportunities and optimize product offerings * Hedging strategies reduce commodity volatility ¢ Winback an
Slide 8: M&A Highlights
M&A Highlights anha. townsquoare energy * Date: November 2016 * Price: $9.6 million plus working capital * Opened four new states to Genie’s customer acquisition engine ¢ Differentiated customer acquisition model and respected brand helped to increase Town Square Energy RCEs from 47,000 at purchase
Slide 9: Customer Portfolio
Customer Portfolio L CUSTOMER EQUIVALENTS (RCEs) as of 3/31/18 State @NY mPA ™ Citizens Choice aN mIDT Energy mil lm Residents Energy =cT m Town Square MD @ Other Commodity Product @ Electric m Fixed ™ Gas @ Variable
Slide 10: Genie Retail Energy Markets
Genie Retail Energy Markets fownsquoare GD Genie Retail Energy Markets Served I, MIRABITO Deregulated Markets Opportun! naturel Gear Retail Energy aaa Ss Cpportumilky natural gas: 10
Slide 11: GRE Results of Operations
GRE Results of Operations Revenue $58.9 $44.6 $57.2 $51.5 $71.4 $50.2 $69.5 $73.1 $89.3 $2121 $264.2 $282.1 Gross profit 24.0 181 20.2 146 248 12.1 21.8 268 24.5 76.9 85.5 85.1 SG&A 13.3129 123 118 159 215 168 141 13.6 50.4 684 66.1 Equity in the loss of Genie UK - - - - - - (0.2) (0.4) (0.5) - (0.6
Slide 12: Why Own Genie Energy?
Why Own Genie Energy? Special Situation Investors: * Moving toward a pure-play retail energy provider model while curtailing oil and gas (O&G) exploration program * Reduced O&G exploration expense will positively impact Adjusted EBITDA and cash flows in 2018 * Well-established public company comps f
Slide 13: Genie Energy P&L By Line of Business
Genie Energy P&L By Line of Business Genie Retail and Corporate Overhead. Revenue $58.9 $44.6 $57.2 $51.5 $71.4 $50.2 $69.5 $73.1 $89.3 $212.1 $264.2 $282.1 Gross profit 24.0 181 20.2 146 248 121 218 268 24.5 76.9 85.5 85.1 SG&A 158 152 145 141 183 243 19.0 166 16.0 59.6 78.2 75.9 Equity in the loss
Slide 14: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials E inergy Reconciliation of Non-GAAP Financial Measures In addition to including financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), Genie Energy's investor presentation include
Slide 15: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Genie Energy (NYSE: GNE) Genie Energy Page 3 (is shausinds) TIM Adjusted EBITD A $8,958 Subtract: Depreciation and amortization $2,263 Write-off of capitalized exploration costs $6,483 Stock-based compensation $5,321 Loss from operations (65,109) GRE Results of
Slide 16: Energy
Energy Michael Stein Chief Executive Officer Avi Goldin Chief Financial Officer