NET Power (NPWR) Q2 2024 earnings summary

Executive summary

• Progressed on three strategic pillars: commercializing clean power tech, building project backlog, and establishing supply chain partnerships for large-scale deployment by early next decade.

• Advanced utility-scale technology development with Baker Hughes, including equipment validation and FEED completion for Project Permian.

• Opened a new Houston office to expand access to energy industry talent.

• Accelerated project origination and site evaluation in North America, with interconnection application filed for OP1 and feasibility progress in AESO and CAISO markets.

• The Business Combination with Rice Acquisition Corp. II closed on June 8, 2023, resulting in a new public company structure and significant changes to financial reporting.

Financial highlights

• Ended Q2 2024 with approximately $609 million in cash and investments.

• Cash flow used in operations was about $8 million, including a $3 million payment under the Baker Hughes JDA.

• Total capital expenditures for the quarter were $8 million, split mainly between Project Permian development and La Porte facility upgrades.

• Revenue for Q2 2024 was $238,000, up 90% from the prior year, primarily from test data sales.

• Net loss attributable to NET Power Inc. for Q2 2024 was $4.3 million, compared to $35.0 million in the same period last year.

Outlook and guidance

• Project Permian remains on track for initial power generation between H2 2027 and H1 2028.

• First phase of La Porte equipment validation testing to begin in Q4 2024, with subsequent phases through 2026.

• Targeting an LCOE of $60/MWh (with 45Q) and $80/MWh unsubsidized for future plants.

• Ongoing FEED with Zachry Group, with a firm estimate and schedule expected in Q4 2024.

• Management believes current liquidity is sufficient to fund operations and R&D for at least the next 12 months, but additional funding may be needed for full-scale commercialization.