Genie Energy Acquires Retail Customer Portfolio Spread Across Seven States

Rhea-AI Summary

On November 30, 2022, Genie Energy Ltd. (NYSE: GNE, GNEPRA) announced the acquisition of a portfolio of residential and small commercial customer contracts from Mega Energy, covering approximately 11,000 meters across seven states. CEO Michael Stein noted that favorable market conditions allow for portfolio expansion, leveraging Genie’s strong balance sheet and cash reserves. The acquisition is expected to be immediately accretive and will enhance service offerings to customers. The terms of the deal have not been disclosed.

Positive

• Acquisition of approximately 11,000 residential and commercial customer contracts.
• Portfolio located in seven states, enhancing market presence.
• Immediately accretive to Genie Energy.
• Strong balance sheet and cash reserves enable competitive acquisitions.

Negative

• None.

NEWARK, N.J., Nov. 30, 2022 /PRNewswire/ -- Genie Energy Ltd., (NYSE: GNE, GNEPRA), a leading retail energy and renewable energy solutions provider, announced today that it has acquired a portfolio of residential and small commercial customer contracts from Mega Energy.

"Market conditions are producing attractive opportunities for portfolio expansion in some of our retail supply markets," said Michael Stein, Genie Energy's CEO. "Our strong balance sheet, with significant cash reserves, positions us to compete for additional books of business at favorable prices. We will continue to look for customer acquisition opportunities as specific markets become more conducive to growth."

"Mega Energy believes the time is right to transfer our portfolio to Genie Energy as this will enhance our customers' long-term service with expanded product offerings and additional resources," said Javed Meghani, Chairman of WP&G Holdings, LLC., dba Mega Energy. "We are committed to providing a seamless service experience as each of our highly valued customers moves to the Genie Energy platform."

The portfolio of acquired customers is located in seven states in the Northeast and Midwest, all within Genie's current geographic footprint of deregulated retail markets.  It comprises approximately 11,000 residential and commercial customer meters. The Company expects the acquired portfolio to be immediately accretive.  Terms of the deal were not disclosed.

Vin Deshpande and Fernando Alvarez of Drexel Hamilton served as exclusive financial advisors to Mega Energy.

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K.  We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise. 

About Genie Energy Ltd.: 

Genie Energy Ltd., (NYSE: GNE, GNEPRA) is a retail energy and renewable energy solutions provider. The Genie Retail Energy division supplies electricity, including electricity from renewable resources, and natural gas to residential and small business customers in the United States. The Genie Renewables division is a vertically-integrated provider of commercial, community and utility-scale solar energy solutions. For more information, visit Genie.com.

 

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SOURCE Genie Energy Ltd.

FAQ

What did Genie Energy acquire from Mega Energy?

Genie Energy acquired a portfolio of approximately 11,000 residential and small commercial customer contracts from Mega Energy.

How many states are involved in Genie Energy's acquisition?

The acquired contracts are located in seven states across the Northeast and Midwest.

What is the expected impact of the acquisition on Genie Energy's performance?

The acquisition is expected to be immediately accretive to Genie Energy's financial performance.

When was the acquisition announced?

The acquisition was announced on November 30, 2022.

What financial advantages does Genie Energy have for future acquisitions?

Genie Energy possesses a strong balance sheet and significant cash reserves, positioning them well for competitive acquisitions.