NET Power Reports Third Quarter 2023 Results and Provides Business Update - Seite 2

Business Update

La Porte Demonstration Facility – The Company continues preparation at its La Porte facility for various equipment demonstration campaigns. These testing campaigns under the Baker Hughes Joint Development Program will provide key operational data ahead of deploying the first utility-scale package. Current preparations at the facility include recycle CO₂ compressor relocation, piping and instrumentation enhancements, and distributed control system upgrades.

Project Permian – At NET Power’s first Texas-based project located near Midland-Odessa, Front-End Engineering and Design (FEED) is ongoing with licensed EPC partner Zachry Group. FEED is expected to conclude in 2024 and will form the basis for NET Power’s standardized utility-scale plant design. During the quarter, NET Power continued release of initial bid packages for long-lead equipment, progressed negotiations for supply and offtake agreements, and completed the initial survey and environmental assessment of the plant site. Capitalized expenditures associated with ongoing development of Project Permian totaled $2.5 million in the third quarter of 2023. NET Power expects to release initial long-lead equipment orders for Project Permian in the first half of 2024 and to achieve initial power generation between the second half of 2027 and first half of 2028.

Financial Outlook

During the third quarter, cash flow from operations was approximately $0.1 million and cash flow from investing activities totaled approximately negative $103 million, including $100 million in cash invested into short-term interest-bearing securities. The Company ended the quarter with approximately $645 million of cash and short-term investments and no debt, as compared to approximately $649 million in cash and short-term investments at end of the second quarter of 2023.

The Company has a fully diluted share count of approximately 247 million shares, comprised of approximately 71 million shares of Class A Common Stock outstanding; approximately 140 million shares of Class A Common Stock issuable upon the exchange of Class B Common Stock; approximately 20 million shares of Class A Common Stock issuable upon the exercise of outstanding public and private warrants; approximately 2 million shares of Class A Common Stock issuable upon the exchange of Class B Common Stock subject to earn out or vesting requirements; and approximately 14 million shares of Class A Common Stock issuable upon the exchange of Class B Common Stock authorized for issuance pursuant to the Baker Hughes Joint Development Agreement.