NET Power Reports Fourth Quarter and Year End 2023 Results and Provides Business Update
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Insights
The progression of Front-End Engineering and Design (FEED) for Project Permian and the signing of a Limited Notice to Proceed (LNTP) with Baker Hughes are strategic steps for NET Power Inc. in solidifying its position in the energy sector. The FEED phase is crucial for establishing the technical specifications and project costs, which are essential for future investment and project execution decisions. The LNTP indicates a commitment to move forward with the procurement of critical equipment, suggesting confidence in the project's viability and a potential increase in capital expenditure.
The strategic supplier agreement with Lummus Technology for recuperative heat exchangers (HXRs) represents an advancement in NET Power's proprietary technology, which aims to deliver near-zero emissions power generation. This agreement could lead to enhanced competitive advantage and open up new revenue streams through equipment licensing, which is a positive indicator for investors looking at the company's potential for innovation-led growth.
From a financial perspective, NET Power's cash flow usage in operations and investing activities indicates a burn rate that investors should monitor closely. However, the company's strong cash and short-term investments position, coupled with no debt, provides a robust financial foundation to support its research and development activities. The lack of debt is particularly favorable in an industry where capital-intensive projects are the norm, as it allows for greater flexibility and potentially lower financial risk.
The company's stock market performance may be influenced by the anticipated equipment validation campaigns and the completion of the FEED for Project Permian. Investors might see these milestones as indicators of the company's progress towards commercialization and the de-risking of its technology. The successful execution of these milestones could have a positive impact on investor confidence and the company's valuation.
NET Power's focus on near-zero emissions technology is a response to the global demand for cleaner energy solutions. The company's proprietary technology, which incorporates oxy-fuel combustion and high-efficiency heat exchangers, is designed to capture carbon dioxide emissions efficiently. This technology is not only relevant for the energy industry's transition towards sustainability but also aligns with regulatory trends favoring low-carbon technologies.
The collaboration with Baker Hughes and Lummus Technology enhances the credibility of NET Power's offerings and could accelerate the adoption of its technology within the industry. The environmental implications of deploying such technology on a utility scale could be significant, potentially reducing greenhouse gas emissions and contributing to climate change mitigation efforts.
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Progressed Front-End Engineering and Design (FEED) for Project Permian, the Company’s first utility-scale project in
West Texas ; signed Limited Notice to Proceed (LNTP) with Baker Hughes to release long-lead material for the first utility-scale turboexpander - Signed Strategic Supplier Agreement with Lummus Technology to design and supply recuperative heat exchangers (“HXRs”) for NET Power’s near-zero emissions power generation cycle
Danny Rice, Chief Executive Officer of NET Power, commented, “Our team concluded the fourth quarter of 2023 with steady progress across our three strategic pillars. Development work continues at Project Permian and site preparation at our
Mr. Rice continued, “Our recuperative heat exchanger supply agreement signed with Lummus Technology in the fourth quarter marks a significant step in furthering the development of the NET Power technology and preparing for manufacturing mode. The partnership will enable NET Power plant deployments at manufacturing scale, further solidify our intellectual property moat and create an additional equipment licensing revenue stream.
“2023 was a historic year for NET Power, which included completing our business combination with Rice Acquisition Corp. II and becoming a publicly listed company on the NYSE in June. As we look to upcoming 2024 milestones, we plan to commence Baker Hughes equipment validation at
“We believe it is of the utmost importance to develop and commercialize a breakthrough technology like NET Power in the public spotlight, and we look forward to continuing the journey towards delivering clean, affordable and reliable energy in the quarters and years to come.”
Business Update
Baker Hughes Equipment Validation at La Porte Demonstration Facility – The Company continues construction modifications at its
Project Permian – At NET Power’s first
NET Power achieved two additional milestones for Project Permian in early 2024. In the first quarter of 2024, the Company initiated engineering work with the Company’s selected ASU provider for Project Permian and executed a site land lease agreement with Occidental Petroleum. These achievements position NET Power to remain on target with the Project Permian development schedule.
Financial Updates
During the fourth quarter, cash flow used in operations was approximately
Conference Call
NET Power will host a conference call to discuss fourth quarter and year end 2023 financial results beginning at 8:30 AM ET on Tuesday, March 12. To access the live audio webcast of the conference call, please visit NET Power’s investor relations website at ir.netpower.com. To participate by phone, dial 877-407-8014 (domestic) or +1 201-689-8053 (international).
An archived webcast will be available following the call.
About NET Power
NET Power (NYSE: NPWR) is a clean energy technology company developing its proprietary NET Power Cycle, which transforms natural gas into low-cost, clean and reliable power. The Company is on a mission to deploy its utility-scale plants across the world by partnering with power producers, energy producers, technology providers, local communities, and other stakeholders. NET Power was founded in 2010 and has offices in
Cautionary Note Regarding Forward-Looking Statements and Projections
Certain statements in this release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, each as amended. Forward-looking statements provide current expectations of future events and include any statement that does not directly relate to any historical or current fact. Words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “projects,” or other similar expressions may identify such forward-looking statements. Forward-looking statements may relate to the development of NET Power’s technology, the anticipated demand for NET Power’s technology and the markets in which NET Power operates, the timing of the deployment of plant deliveries, and NET Power’s business strategies, capital requirements, potential growth opportunities and expectations for future performance (financial or otherwise). Forward-looking statements are based on current expectations, estimates, projections, targets, opinions and/or beliefs of the Company, and such statements involve known and unknown risks, uncertainties and other factors. Actual results may differ materially from those discussed in forward-looking statements as a result of factors, risks and uncertainties over which NET Power has no control. These factors, risks and uncertainties include, but are not limited to, those described under the headings “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, its subsequent annual reports on Form 10-K and quarterly reports on Form 10-Q, and in its other filings made with the SEC from time to time, which are available via the SEC’s website at www.sec.gov. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and NET Power assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. NET Power does not give any assurance that it will achieve its expectations.
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Investor Relations Contact:
investors@netpower.com
NET Power Media Contact:
Sam
netpower@voxglobal.com
Source: NET Power Inc.
FAQ
What were NET Power's financial results for Q4 and year-end 2023?
What strategic partnerships did NET Power announce?
What progress was made in Project Permian?
When will the equipment validation campaigns with Baker Hughes at La Porte begin?
How did NET Power end 2023 in terms of cash and investments?
