NET Power (NPWR) Q4 2024 earnings summary

Executive summary

• Completed FEED for Project Permian (SN1), the first utility-scale clean gas power plant of its kind, but paused long-lead equipment releases due to higher-than-expected costs; shifted to post-FEED optimization and value engineering, including a 25% site plan reduction.

• Launched modular, multi-unit feasibility studies targeting up to 1 GW per site, aiming for cost reductions through economies of scale and pre-fabrication, with deployments prioritized for coastal sites.

• Advanced validation testing at La Porte with Baker Hughes, achieving over 140 fired hours and a 30-hour continuous run, exceeding prior cycle pressures, with further testing planned into 2025.

• Initiated development of industrial-scale Net Power solutions with Baker Hughes and Woodside Energy, expanding applications and licensing opportunities.

• Ended 2024 with over $530 million in cash, cash equivalents, and investments, supporting ongoing technology optimization and strategic partnerships.

Financial highlights

• Closed 2024 with $533 million in cash, cash equivalents, and investments, down from $580 million at Q3, due to $13 million in operating cash outflows and $29 million in CapEx for La Porte and SN1.

• Full-year operating cash outflows were $32 million, with $70 million in total CapEx, including $18 million in payments to Baker Hughes.

• Q4 2024 capital expenditures: $29 million (La Porte: $8.5 million; Project Permian: $20.4 million).

• Current SN1 economics support up to $600 million in project-level financing, with $600–$900 million in new capital needed to fully fund the project.

Outlook and guidance

• Project Permian's total installed cost now estimated at $1.7–$2.0 billion, with earliest online date in 2029, pending successful value engineering and project funding.

• Modular multi-unit plant design expected to reduce costs and support large-scale users, with deployments targeted for 2030–2033.

• 2025 priorities include continued value engineering, feasibility studies for multi-unit Gulf Coast projects, and securing capital and strategic partners for commercialization.

• Ongoing validation campaigns at La Porte expected to complete Phases 1 and 2 in 2025, with full demonstrator cycle targeted for 2027.