NET Power Reports Second Quarter 2024 Results and Provides Business Update
NET Power Inc. (NYSE: NPWR) reported its Q2 2024 results and provided a business update. Key highlights include:
1. Continued site work at La Porte demonstration facility for upcoming equipment validation campaigns.
2. Advanced FEED work for Project Permian, the first utility-scale project in West Texas.
3. Accelerated prospecting and site evaluation for multiple originated projects in North America.
4. Filed interconnection application with MISO for OP1, the company's first originated project.
5. Cash flow used in operations was ~$8 million, with another ~$8 million used for capital expenditures.
6. Ended Q2 2024 with ~$609 million in total cash, cash equivalents, and investments, down from ~$626 million in Q1 2024.
The company remains on track for key milestones, including the start of equipment validation testing in Q4 2024 and the completion of Project Permian FEED in Q4 2024.
NET Power Inc. (NYSE: NPWR) ha riportato i risultati del secondo trimestre 2024 e fornito un aggiornamento sull'andamento dell'attività. I punti salienti includono:
1. Continuazione dei lavori nel sito della struttura dimostrativa di La Porte per le imminenti campagne di validazione delle attrezzature.
2. Avanzamento dei lavori di FEED per il Project Permian, il primo progetto su scala utility in Texas occidentale.
3. Intensificata esplorazione e valutazione del sito per diversi progetti originati in Nord America.
4. Presentata domanda di interconnessione con MISO per OP1, il primo progetto originato dall'azienda.
5. Il flusso di cassa utilizzato per le operazioni è stato di circa 8 milioni di dollari, con ulteriori 8 milioni di dollari impiegati per spese in conto capitale.
6. Chiusa il secondo trimestre 2024 con circa 609 milioni di dollari in totale di liquidità, equivalenti di liquidità e investimenti, in diminuzione rispetto ai circa 626 milioni di dollari del primo trimestre 2024.
L'azienda rimane in carreggiata per importanti traguardi, incluso l'inizio dei test di validazione delle attrezzature nel quarto trimestre 2024 e il completamento del FEED del Project Permian nel quarto trimestre 2024.
NET Power Inc. (NYSE: NPWR) reportó sus resultados del segundo trimestre de 2024 y proporcionó una actualización comercial. Los aspectos más destacados incluyen:
1. Continuación de los trabajos en el sitio de la instalación de demostración de La Porte para las próximas campañas de validación de equipos.
2. Avance del trabajo de FEED para el Project Permian, el primer proyecto a gran escala de servicio público en el oeste de Texas.
3. Aceleración de la prospección y evaluación del sitio para múltiples proyectos originados en América del Norte.
4. Presentada la solicitud de interconexión con MISO para OP1, el primer proyecto originado de la empresa.
5. El flujo de efectivo utilizado en operaciones fue de aproximadamente 8 millones de dólares, con otros 8 millones de dólares utilizados para gastos de capital.
6. Cerró el segundo trimestre de 2024 con aproximadamente 609 millones de dólares en efectivo total, equivalentes de efectivo e inversiones, por debajo de aproximadamente 626 millones de dólares en el primer trimestre de 2024.
La empresa sigue en camino hacia hitos clave, incluido el inicio de las pruebas de validación de equipos en el cuarto trimestre de 2024 y la finalización del FEED del Project Permian en el cuarto trimestre de 2024.
NET Power Inc. (NYSE: NPWR)는 2024년 2분기 결과와 사업 업데이트를 보고했습니다. 주요 하이라이트는 다음과 같습니다:
1. 장비 검증 캠페인을 위한 La Porte 시연 시설에서의 지속적인 현장 작업.
2. 텍사스 서부에서 최초의 유틸리티 규모 프로젝트인 Project Permian의 FEED 작업이 진전되었습니다.
3. 북미에서 여러 기원 프로젝트에 대한 탐색 및 사이트 평가가 가속화되었습니다.
4. 회사의 첫 번째 기원 프로젝트인 OP1에 대한 MISO와의 접속 신청서를 제출했습니다.
5. 운영에 사용된 현금 흐름은 약 800만 달러였으며, 자본 지출에 또 다른 약 800만 달러가 사용되었습니다.
6. 2024년 2분기를 약 6억 900만 달러의 현금, 현금성 자산 및 투자로 마감했으며, 이는 2024년 1분기의 약 6억 2600만 달러에서 감소한 수치입니다.
회사는 2024년 4분기에 장비 검증 테스트를 시작하고 Project Permian FEED를 2024년 4분기에 완료하는 것을 포함한 주요 이정표를 향해 순항하고 있습니다.
NET Power Inc. (NYSE: NPWR) a publié ses résultats du deuxième trimestre 2024 et a fourni une mise à jour sur ses activités. Les points saillants incluent :
1. Poursuite des travaux sur le site de la base de démonstration de La Porte pour les prochaines campagnes de validation des équipements.
2. Avancement des travaux de FEED pour le Project Permian, le premier projet à échelle utilitaire au Texas occidental.
3. Accélération de la prospection et de l'évaluation des sites pour plusieurs projets originés en Amérique du Nord.
4. Dépôt d'une demande d'interconnexion auprès de MISO pour OP1, le premier projet de l'entreprise.
5. Le flux de trésorerie utilisé dans les opérations était d'environ 8 millions de dollars, avec environ 8 millions de dollars supplémentaires utilisés pour des dépenses d'investissement.
6. Fin du deuxième trimestre 2024 avec environ 609 millions de dollars en liquidités, équivalents de liquidités et investissements, en baisse par rapport à environ 626 millions de dollars au premier trimestre 2024.
L'entreprise reste sur la bonne voie pour des jalons clés, y compris le début des tests de validation des équipements au quatrième trimestre 2024 et l'achèvement des travaux de FEED pour le Project Permian au quatrième trimestre 2024.
NET Power Inc. (NYSE: NPWR) hat seine Ergebnisse für das zweite Quartal 2024 veröffentlicht und ein Geschäft-Update bereitgestellt. Zu den wichtigsten Punkten gehören:
1. Fortsetzung der Arbeiten an der Demonstrationsanlage in La Porte für die bevorstehenden Validierungskampagnen von Geräten.
2. Fortschritte bei der FEED-Arbeit für das Project Permian, das erste utility-scale Projekt in Westtexas.
3. Beschleunigte Erkundung und Standortbewertung für mehrere in Nordamerika gestartete Projekte.
4. Antrag auf Interkonnektivität mit MISO für OP1, das erste Projekt des Unternehmens.
5. Der in den Betrieben genutzte Cashflow betrug etwa 8 Millionen Dollar, mit weiteren 8 Millionen Dollar, die für Investitionen verwendet wurden.
6. Das zweite Quartal 2024 wurde mit etwa 609 Millionen Dollar an liquiden Mitteln, liquiden Mitteln und Investitionen abgeschlossen, verglichen mit etwa 626 Millionen Dollar im ersten Quartal 2024.
Das Unternehmen bleibt auf Kurs für wichtige Meilensteine, einschließlich der Aufnahme der Validierungstests der Ausrüstung im vierten Quartal 2024 und dem Abschluss der FEED-Arbeiten für das Project Permian im vierten Quartal 2024.
- Advanced FEED work for Project Permian, the first utility-scale project, on track to conclude in Q4 2024
- Signed Notice to Proceed (LNTP) with Baker Hughes for long-lead materials for the first utility-scale turboexpander
- Filed interconnection application with MISO for OP1, the company's first originated project
- Advanced projects in AESO and CAISO markets to project feasibility stage
- Maintained a strong cash position of $609 million at the end of Q2 2024
- Cash flow used in operations was approximately $8 million in Q2 2024
- Cash flow used for capital expenditures was approximately $8 million in Q2 2024
- Total cash, cash equivalents and investments decreased from $626 million in Q1 2024 to $609 million in Q2 2024
Insights
NET Power's Q2 2024 results reveal a cash burn rate of approximately
However, as the company moves towards commercialization, expenses are likely to increase significantly. The initiation of equipment validation tests and advancement of Project Permian indicate accelerating development. Investors should monitor the burn rate closely in coming quarters for signs of scaling operations.
While no revenue figures were provided, the focus on project origination and strategic discussions with supply chain partners suggests NET Power is laying groundwork for future growth. The company's ability to execute on its timeline for Project Permian will be important for investor confidence.
NET Power's progress in Q2 2024 demonstrates significant strides in commercializing its novel power generation technology. The advancement of equipment validation at La Porte and the FEED work for Project Permian are critical milestones in de-risking the technology for utility-scale deployment.
The company's focus on multiple originated projects across North America indicates growing market interest. Filing interconnection applications and advancing projects in various ISO markets suggests a strategic approach to market entry. The emphasis on "clean, affordable and reliable power" aligns well with current energy transition goals.
However, investors should note the extended timeline to revenue generation. With initial power from Project Permian expected between H2 2027 and H1 2028, NET Power faces a long path to profitability. The company's ability to maintain investor confidence and secure additional funding, if needed, will be important during this pre-revenue phase.
NET Power's Q2 update highlights significant progress in validating its innovative Allam-Fetvedt cycle technology. The phased approach to equipment validation at La Porte, focusing on critical components like the oxy-fuel burner and utility-scale turboexpander, demonstrates a methodical risk mitigation strategy.
The collaboration with Baker Hughes for combustor testing and long-lead materials procurement underscores the importance of strategic partnerships in commercializing complex energy technologies. This approach could accelerate time-to-market and reduce development risks.
Investors should note the extended timeline for full technology validation, with testing phases continuing through 2026. While this thorough approach is prudent for a novel technology, it also means a longer wait for full-scale commercial deployment. The success of these validation phases will be critical for investor confidence and potential future partnerships or orders.
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Continued site work at
La Porte demonstration facility in preparation for upcoming equipment validation campaigns; Baker Hughes combustor test rig on schedule to ship toLa Porte in Q3 2024; first phase of testing on schedule to begin in Q4 2024 -
Advanced Front-End Engineering and Design (FEED) work for Project Permian, the Company’s first utility-scale project in
West Texas ; FEED on track to conclude in Q4 2024; signed Limited Notice to Proceed (LNTP) with Baker Hughes to release all long-lead materials required to meet the schedule for the first utility-scale turboexpander -
Accelerated prospecting and site evaluation for multiple originated projects in
North America ; filed interconnection application with Midcontinent Independent System Operator (MISO) for OP1, the Company’s first originated project; advanced projects in Alberta Electric System Operator (AESO) and California Independent System Operator (CAISO) markets to project feasibility stage
Danny Rice, Chief Executive Officer of NET Power, commented, “The team excelled through another busy quarter. Significant work continues on the origination front as we pinpoint the ideal markets and locations to optimize the economics of future deployments, with several near-term targets identified in
Later this year, we expect to complete FEED for Project Permian and kick off the first of four phases of equipment validation with Baker Hughes at our
We continue to advance strategic discussions with our current and prospective supply chain partners to ensure we have the capabilities to meet the growing demand for clean, affordable and reliable power.”
Business Update
Baker Hughes equipment validation at
The first phase of testing is on schedule to begin in the fourth quarter of 2024 and subsequent phases are expected to continue through 2026. The equipment validation test campaigns at
The first two phases of equipment validation will utilize a Baker Hughes combustor test rig, which is undergoing assembly in Baker Hughes’
Project Permian – At NET Power’s first utility-scale project located near
During the quarter, NET Power signed an LNTP with Baker Hughes to release all long-lead material needed to maintain the schedule for the utility-scale turboexpander. Orders for long-lead components will continue throughout 2024. Initial power generation for Project Permian remains on schedule to occur between the second half of 2027 and first half of 2028.
Origination – NET Power accelerated prospecting and site evaluation for multiple originated projects in
Origination efforts were also advanced across
Financial Updates
During the second quarter, cash flow used in operations was approximately
Conference Call
NET Power will host a conference call to discuss second quarter 2024 financial results beginning at 8:30 AM ET on Tuesday, August 13. 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 clean, reliable and affordable 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
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