Friday, December 26, 2014 10:32:44 AM
DOWNSIDE Protection: Current Equity value (incl. Preferred) of $162M. Less $118M in net cash & WC, equals $44M of enterprise value. Just from the retail energy division, they'll generate ~$250M of revenue and ~$15M of stabilized EBITDA. Without consideration to any of their exploration and activities and intellectual property from GOGAS, this is a compelling valuation.
UPSIDE: Take into the possible huge upside from their two Israel projects (I believe their in-situ project in central Israel will be restarted in 2015) as well as their Mongolia and Colorado projects and you're getting a potentially very valuable call option for free. The Northern Israel project that finally got the thumbs up this week is the real catalyst I care about.
TIME VALUE: Genie Energy is also paying a ~3.5% dividend while you wait for the homerun.
I've studied every inch of this company for two plus years, I understand the risks (everything from Syria/ Golan Heights politics to the long time horizon on the in-situ projects), however, as opposed to most small E&P companies, there's lots of protection here and the insiders are very very incentivized both monetarily and through their Israel connections.
It's a good gamble. Kona Capital
Recent GNE News
- Genie Energy Announces Second Quarter 2024 Results • GlobeNewswire Inc. • 08/06/2024 11:30:00 AM
- Genie Energy to Report Second Quarter 2024 Results • GlobeNewswire Inc. • 07/17/2024 12:30:00 PM
- Genie Energy Announces First Quarter 2024 Results • GlobeNewswire Inc. • 05/08/2024 11:30:00 AM
- Genie Energy to Report First Quarter 2024 Results • GlobeNewswire Inc. • 04/24/2024 10:30:00 PM
- Sunlight Energy Investments Acquires an Additional Solar Project • GlobeNewswire Inc. • 03/21/2024 08:30:00 PM
- Genie Energy Announces Fourth Quarter and Full Year 2023 Results • GlobeNewswire Inc. • 03/11/2024 11:30:00 AM
- Genie Energy to Report Fourth Quarter and Full Year 2023 Results • GlobeNewswire Inc. • 03/05/2024 10:45:00 PM
- Genie Energy Unveils Insurance Strategy • GlobeNewswire Inc. • 01/26/2024 01:30:00 PM
- Sunlight Energy Investments Acquires Portfolio of Solar Projects • GlobeNewswire Inc. • 11/27/2023 01:30:00 PM
- Genie Energy Announces Third Quarter 2023 Results • GlobeNewswire Inc. • 11/06/2023 12:30:00 PM
- Genie Energy to Report Third Quarter 2023 Results • GlobeNewswire Inc. • 10/17/2023 08:30:00 PM
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