Verde Clean Fuels, Inc. Reports Second Quarter 2024 Results
Verde Clean Fuels (Nasdaq: VGAS) reported Q2 2024 results with a GAAP diluted net loss per share of $(0.14) and a consolidated net loss of $2.8 million. The company ended the quarter with $23.2 million in cash and cash equivalents. Key developments include:
1. Selection of Chemex Global as FEED services partner for the Cottonmouth Ventures Permian Basin project.
2. Ongoing discussions with potential offtake parties for carbon credits and gasoline.
3. Focus on developing the first commercial facility using Verde's proprietary STG+® technology to produce gasoline from stranded natural gas or waste feedstocks.
The company's expenses primarily consist of general and administrative costs and R&D related to its commercial facility development efforts.
Verde Clean Fuels (Nasdaq: VGAS) ha riportato i risultati del secondo trimestre 2024 con una perdita netta diluita per azione secondo i principi GAAP di $(0,14) e una perdita netta consolidata di $2,8 milioni. La società ha concluso il trimestre con $23,2 milioni in cassa e disponibilità liquide. Tra i principali sviluppi vi sono:
1. Selezione di Chemex Global come partner per i servizi FEED nel progetto Cottonmouth Ventures nella Basina Permiana.
2. Discussioni in corso con potenziali acquirenti per crediti di carbonio e benzina.
3. Focus sullo sviluppo della prima struttura commerciale per utilizzare la tecnologia STG+® proprietaria di Verde per produrre benzina da gas naturale intrappolato o da materiali di scarto.
Le spese della società consistono principalmente in costi generali e amministrativi e R&D relativi agli sforzi di sviluppo della propria struttura commerciale.
Verde Clean Fuels (Nasdaq: VGAS) reportó los resultados del segundo trimestre de 2024 con una pérdida neta diluida por acción según GAAP de $(0.14) y una pérdida neta consolidada de $2.8 millones. La empresa terminó el trimestre con $23.2 millones en efectivo y equivalentes de efectivo. Algunos de los desarrollos clave incluyen:
1. Selección de Chemex Global como socio de servicios FEED para el proyecto Cottonmouth Ventures en la Cuenca Pérmica.
2. Conversaciones en curso con partes compradoras potenciales para créditos de carbono y gasolina.
3. Enfoque en desarrollar la primera instalación comercial utilizando la tecnología STG+® de Verde para producir gasolina a partir de gas natural subutilizado o residuos.
Los gastos de la empresa consisten principalmente en costos generales y administrativos y I+D relacionados con sus esfuerzos de desarrollo de instalaciones comerciales.
Verde Clean Fuels (Nasdaq: VGAS)는 2024년 2분기 실적을 보고하며 GAAP 기준 주당 희석 순손실 $(0.14)와 총 순손실 $2.8백만을 기록했습니다. 이 회사는 분기를 $23.2백만의 현금 및 현금성 자산으로 마감했습니다. 주요 개발 사항은 다음과 같습니다:
1. Cottonmouth Ventures의 Permian Basin 프로젝트를 위한 FEED 서비스 파트너로 Chemex Global 선정.
2. 탄소 크레딧 및 가솔린을 위한 잠재적 구매자와의 지속적인 논의.
3. Verde의 독점 STG+® 기술을 사용하여 고립된 천연가스 또는 폐기물 원료로 가솔린을 생산하는 첫 상업 시설 개발에 집중.
회사의 지출은 주로 일반 관리 비용과 상업 시설 개발과 관련된 R&D로 구성됩니다.
Verde Clean Fuels (Nasdaq: VGAS) a publié les résultats du deuxième trimestre 2024, avec une perte nette diluée par action selon les normes GAAP de $(0,14) et une perte nette consolidée de $2,8 millions. L'entreprise a terminé le trimestre avec $23,2 millions en espèces et équivalents de liquidités. Les développements clés incluent :
1. Sélection de Chemex Global en tant que partenaire de services FEED pour le projet Cottonmouth Ventures dans le bassin permien.
2. Discussions en cours avec des parties potentielles pour l'achat de crédits carbone et de l'essence.
3. Un accent mis sur le développement de la première installation commerciale utilisant la technologie STG+® propriétaire de Verde pour produire de l'essence à partir de gaz naturel isolé ou de matières premières déchets.
Les dépenses de l'entreprise se composent principalement de coûts généraux et administratifs ainsi que de R&D liés à ses efforts de développement d'installations commerciales.
Verde Clean Fuels (Nasdaq: VGAS) hat die Ergebnisse des 2. Quartals 2024 veröffentlicht, mit einem GAAP-verwässerten Nettoverlust pro Aktie von $(0,14) und einem konsolidierten Nettoverlust von $2,8 Millionen. Das Unternehmen hat das Quartal mit $23,2 Millionen an liquiden Mitteln und Zahlungsmitteln abgeschlossen. Wichtige Entwicklungen umfassen:
1. Auswahl von Chemex Global als FEED-Dienstleistungspartner für das Cottonmouth Ventures-Projekt im Permian Basin.
2. Fortlaufende Gespräche mit potenziellen Abnehmern für Kohlestoffgutschriften und Benzin.
3. Konzentration auf die Entwicklung der ersten kommerziellen Anlage zur Produktion von Benzin aus isoliertem Erdgas oder Abfallrohstoffen unter Verwendung der proprietären STG+®-Technologie von Verde.
Die Ausgaben des Unternehmens bestehen hauptsächlich aus allgemeinen und administrativen Kosten sowie F&E im Zusammenhang mit der Entwicklung seiner kommerziellen Einrichtungen.
- Verde selected Chemex Global as FEED services partner for the Cottonmouth Ventures Permian Basin project
- FEED work has commenced and is expected to be completed in early 2025
- The company has $23.2 million in cash and cash equivalents
- Ongoing discussions with potential offtake parties for carbon credits and gasoline
- Q2 2024 GAAP diluted net loss per share of $(0.14)
- Consolidated net loss of $2.8 million in Q2 2024
- Increased general and administrative expenses from $2.46 million in Q2 2023 to $2.99 million in Q2 2024
- Cash and cash equivalents decreased from $28.78 million at the end of 2023 to $23.21 million as of June 30, 2024
Insights
Verde Clean Fuels' Q2 2024 results show a net loss of
The selection of Chemex Global for FEED services is a positive step towards commercialization, but investors should note that completion isn't expected until early 2025. Preliminary discussions on offtake arrangements for carbon credits and gasoline could potentially de-risk future revenue streams, but are still in early stages.
While Verde is making progress on its first commercial facility, the company remains pre-revenue with increasing G&A expenses. Investors should closely monitor cash burn and progress towards commercialization milestones.
Verde's focus on converting stranded natural gas to gasoline addresses a critical issue in the Permian Basin: flaring. By partnering with Diamondback Energy, Verde positions itself to tap into a significant market opportunity while helping reduce environmental impact.
The STG+® technology, if successful at commercial scale, could be a game-changer for the industry. However, investors should be aware that the path from FEED to operational facility is long and capital-intensive. The company's ability to secure project financing and offtake agreements will be crucial.
The potential for generating D3 RINs and LCFS credits adds an interesting revenue stream, but these markets can be volatile. Verde's success will depend on efficiently scaling up technology while navigating complex regulatory and market environments.
Business Update Highlights Through August 13, 2024
- Verde selected Chemex Global as its FEED services partner for the Cottonmouth Ventures Permian Basin project. As announced in June 2024, Chemex Global was selected to spearhead the front-end engineering and design for the proposed development, construction, and operation of a natural gas-to-gasoline facility in the Permian Basin. With the selection of Chemex Global, FEED work has commenced and is expected to be completed in early 2025.
- Verde is in preliminary discussions with various potential offtake parties with respect to carbon credits and gasoline. Verde is in preliminary discussions with various parties with respect to potential offtake arrangements for the purchase of D3 RINs and LCFS credits as well as gasoline that may be produced in any future project. The goal of any such potential arrangements, if finalized and entered into, would be to help manage price risk associated with these credits and the gasoline as well as to possibly support expected project finance requirements.
“Kicking off work with our FEED services partner, Chemex Global, on the Cottonmouth project was an important step forward in pursuing our first commercial scale facility for producing gasoline from waste natural gas in the Permian Basin,” said Verde CEO Ernest Miller. “We continue to work with Cottonmouth on this proposed project, with the goal to help Diamondback Energy reduce flaring and overall environmental impact from its Permian operations.”
VERDE CLEAN FUELS, INC. |
|||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
|
|
Three Months Ended
|
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
||||||||
General and administrative expenses |
|
$ |
2,988,774 |
|
|
$ |
2,457,882 |
|
|
|
$ |
5,778,150 |
|
|
$ |
6,723,522 |
|
Contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,299,000 |
) |
|
Research and development expenses |
|
|
173,020 |
|
|
|
85,812 |
|
|
|
|
258,855 |
|
|
|
168,474 |
|
Total operating loss |
|
|
3,161,794 |
|
|
|
2,543,694 |
|
|
|
6,037,005 |
|
|
|
5,592,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other (income) |
|
|
(316,208 |
) |
|
|
(94,887 |
) |
|
|
|
(662,336 |
) |
|
|
(94,887 |
) |
Interest expense |
|
|
- |
|
|
|
101,443 |
|
|
|
|
- |
|
|
|
169,268 |
|
Loss before income taxes |
|
|
(2,845,586 |
) |
|
|
(2,550,250 |
) |
|
|
|
(5,374,669 |
) |
|
|
(5,667,377 |
) |
Income tax (benefit) |
|
|
(13,866 |
) |
|
|
- |
|
|
|
|
(13,866 |
) |
|
|
- |
|
Net loss |
|
$ |
(2,831,720 |
) |
|
$ |
(2,550,250 |
) |
|
|
$ |
(5,360,803 |
) |
|
$ |
(5,667,377 |
) |
Net loss attributable to noncontrolling interest |
|
$ |
(1,928,013 |
) |
|
$ |
(1,801,103 |
) |
|
|
$ |
(3,684,725 |
) |
|
$ |
(4,343,770 |
) |
Net loss attributable to Verde Clean Fuels, Inc. |
|
$ |
(903,707 |
) |
|
$ |
(749,147 |
) |
|
|
$ |
(1,676,078 |
) |
|
$ |
(1,323,607 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average Class A common stock outstanding, basic and diluted |
|
|
6,297,162 |
|
|
|
6,130,487 |
|
|
|
|
6,235,439 |
|
|
|
6,127,383 |
|
Loss per Share of Class A common stock |
|
$ |
(0.14 |
) |
|
$ |
(0.12 |
) |
|
|
$ |
(0.27 |
) |
|
$ |
(0.22 |
) |
VERDE CLEAN FUELS, INC. |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
|
|
As of |
||||||
|
|
June 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
23,209,901 |
|
|
$ |
28,779,177 |
|
Accounts receivable - other |
|
|
644,194 |
|
|
|
- |
|
Restricted cash |
|
|
100,000 |
|
|
|
100,000 |
|
Prepaid expenses |
|
|
1,012,989 |
|
|
|
373,324 |
|
Total current assets |
|
|
24,967,084 |
|
|
|
29,252,501 |
|
|
|
|
|
|
|
|
||
Non-current assets: |
|
|
|
|
|
|
||
Security deposits |
|
|
160,669 |
|
|
|
160,669 |
|
Property, plant and equipment, net |
|
|
405,311 |
|
|
|
62,505 |
|
Operating lease right-of-use assets, net |
|
|
377,362 |
|
|
|
524,813 |
|
Intellectual patented technology |
|
|
1,925,151 |
|
|
|
1,925,151 |
|
Total non-current assets |
|
|
2,868,493 |
|
|
|
2,673,138 |
|
Total assets |
|
$ |
27,835,577 |
|
|
$ |
31,925,639 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
211,986 |
|
|
$ |
184,343 |
|
Accrued liabilities |
|
|
2,816,869 |
|
|
|
1,976,812 |
|
Operating lease liabilities – current portion |
|
|
287,289 |
|
|
|
297,380 |
|
Other current liabilities |
|
|
24,977 |
|
|
|
- |
|
Total current liabilities |
|
|
3,341,121 |
|
|
|
2,458,535 |
|
|
|
|
|
|
|
|
||
Non-current liabilities: |
|
|
|
|
|
|
||
Promissory note – related party |
|
|
- |
|
|
|
409,612 |
|
Operating lease liabilities |
|
|
108,989 |
|
|
|
232,162 |
|
Total non-current liabilities |
|
|
108,989 |
|
|
|
641,774 |
|
Total liabilities |
|
|
3,450,110 |
|
|
|
3,100,309 |
|
Commitments and Contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Stockholders’ equity |
|
|
|
|
|
|
||
Class A common stock, par value |
|
|
955 |
|
|
|
939 |
|
Class C common stock, par value |
|
|
2,250 |
|
|
|
2,250 |
|
Additional paid in capital |
|
|
36,050,663 |
|
|
|
35,014,836 |
|
Accumulated deficit |
|
|
(25,598,808 |
) |
|
|
(23,922,730 |
) |
Noncontrolling interest |
|
|
13,930,407 |
|
|
|
17,730,035 |
|
Total stockholders’ equity |
|
|
24,385,467 |
|
|
|
28,825,330 |
|
Total liabilities and stockholders’ equity |
|
$ |
27,835,577 |
|
|
$ |
31,925,639 |
|
About Verde Clean Fuels, Inc.
Verde Clean Fuels, Inc. is a renewable energy company focused on the development of commercial production plants to convert syngas, derived from diverse feedstocks including biomass or stranded or flared natural gas, into gasoline through its innovative and proprietary liquid fuels technology, the STG+® process. Through its STG+® process, Verde converts syngas into fully finished fuels that require no additional refining, such as Reformulated Blend-stock for Oxygenate Blending (“RBOB”) gasoline. To learn more, please visit www.verdecleanfuels.com.
Forward-Looking Statements
The information included herein and in any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included herein, regarding Verde’s expectations and any future financial performance, as well as Verde’s strategy, future operations, financial position, prospects, plans and objectives of management are forward-looking statements. When used herein, including any oral statements made in connection herewith, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “plans,” “goal,” “project,” “preliminary discussions,” “designed,” “potential,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on Verde management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Verde disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date hereof. Verde cautions you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Verde. These risks include, but are not limited to: general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; the failure to realize the anticipated benefits of a particular transaction; the risks related to the growth of Verde’s business and the timing of expected business milestones; the ability of Verde to obtain financing in connection with a particular transaction or in the future; and the effects of competition on Verde’s future business. Should one or more of the risks or uncertainties described herein and in any oral statements made in connection therewith occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. There may be additional risks that Verde presently do not know or that Verde currently believe are immaterial that could cause actual results to differ from those contained in the forward-looking statements. Additional information concerning these and other factors that may impact Verde’s expectations and projections can be found in Verde’s filings with the Securities and Exchange Commission (the “SEC”). Verde’s SEC filings are available publicly on the SEC’s website at www.sec.gov.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813619441/en/
Investor Contact:
Caldwell Bailey (ICR)
verdeIR@icrinc.com
Source: Verde Clean Fuels, Inc.
FAQ
What was Verde Clean Fuels' (VGAS) net loss per share in Q2 2024?
How much cash and cash equivalents did Verde Clean Fuels (VGAS) have at the end of Q2 2024?
Who did Verde Clean Fuels (VGAS) select as their FEED services partner for the Permian Basin project?
What is the main focus of Verde Clean Fuels' (VGAS) technology development?
