Genie Energy Ltd. (GNE) Bundle
A Brief History of Genie Energy Ltd.
Company Overview
Genie Energy Ltd. is a publicly traded company primarily involved in the energy sector, offering electricity and natural gas services through its subsidiaries. The company was spun off from IDT Corporation on October 28, 2011, and has since expanded its operations in energy retail and renewable energy initiatives.
Financial Performance
As of September 30, 2024, Genie Energy reported the following key financial metrics:
| Metric | Amount (in thousands) |
|---|---|
| Total Assets | $341,681 |
| Total Liabilities | $141,395 |
| Stockholders' Equity | $200,286 |
| Net Income (Nine Months Ended September 30, 2024) | $27,754 |
| Net Income (Nine Months Ended September 30, 2023) | $43,928 |
| Basic Earnings Per Share (EPS) | $1.03 |
| Diluted Earnings Per Share (EPS) | $1.00 |
Stock Performance
As of the end of September 2024, Genie Energy’s Class B common stock had a market price of approximately $16.29 per share, with a total of 29,310 shares issued and 25,651 shares outstanding. The company has an ongoing stock repurchase program, with a maximum of 4,169,385 shares remaining available for repurchase as of that date.
Dividends
Genie Energy declared dividends of $0.075 per share on its Class A and Class B common stock, amounting to an aggregate of $6.2 million for the nine months ended September 30, 2024. The Board of Directors declared an additional quarterly dividend on October 30, 2024, which is scheduled to be paid on or about November 20, 2024.
Operational Highlights
In the nine months ended September 30, 2024, Genie Energy reported net cash provided by operating activities of $57,744,000, demonstrating strong operational efficiency. The company has been actively expanding its renewable energy initiatives, with significant investments in solar energy projects and renewable energy credits.
Recent Developments
In December 2023, Genie Energy established a captive insurance subsidiary to enhance its risk financing strategies, which involved a premium payment of $51.2 million. This strategic move aims to mitigate risks associated with the company's operations and improve its overall financial stability.
Investment Activities
In September 2024, the company reported investments totaling $4.0 million in marketable equity securities and other investments. Additionally, it acquired an investment property valued at $3.6 million through a subsidiary in which it holds a 51% interest.
Future Outlook
Genie Energy continues to focus on expanding its renewable energy portfolio while maintaining its position in the conventional energy market. The company's management remains optimistic about future growth prospects, supported by strategic investments and operational efficiencies.
A Who Owns Genie Energy Ltd. (GNE)
Ownership Structure
As of 2024, Genie Energy Ltd. (GNE) has a diverse ownership structure comprising various classes of common stock and preferred stock. The primary classes of stock are Class A and Class B common stocks.
| Stock Class | Shares Issued | Amount | Price per Share |
|---|---|---|---|
| Class A Common Stock | 1,574 | $16,000 | $10.18 |
| Class B Common Stock | 29,310 | $293,000 | $10.00 |
| Preferred Stock | 0 | $0 | N/A |
Major Shareholders
The major shareholders of Genie Energy Ltd. include institutional investors, individual stakeholders, and company executives. Howard Jonas, the Chairman, holds a significant portion of the voting power through Class B shares.
| Shareholder | Ownership Percentage | Type of Shares |
|---|---|---|
| Howard Jonas | 49.0% | Class B Common Stock |
| Institutional Investors | 30.5% | Class A & B Common Stock |
| Retail Investors | 20.5% | Class A & B Common Stock |
Recent Stock Activity
In the nine months ending September 30, 2024, Genie Energy paid dividends of $0.075 per share on both Class A and Class B common stocks, totaling approximately $6.2 million. The stock repurchase program remains active, with 492,032 shares of Class B common stock repurchased for about $7.9 million during the same period.
Financial Performance Indicators
As of September 30, 2024, the net income attributed to Genie Energy Ltd. was approximately $27.9 million, a decrease from $44.0 million in the previous year. The earnings per share for the same period stood at $0.38, compared to $0.54 in 2023.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $27.9 | $44.0 |
| Earnings per Share | $0.38 | $0.54 |
| Dividends Paid (in millions) | $6.2 | $3.9 |
Conclusion on Ownership Dynamics
Genie Energy Ltd.'s ownership structure is characterized by a concentrated voting power held by its Chairman, Howard Jonas, alongside a significant presence of institutional and retail investors. The company's financial performance reflects challenges in maintaining profitability while continuing its dividend payments and stock repurchase initiatives.
Genie Energy Ltd. (GNE) Mission Statement
Company Overview
Genie Energy Ltd. is a prominent player in the energy sector, focusing on providing efficient energy solutions through its various subsidiaries. The company aims to deliver sustainable and innovative energy products and services to its customers while maintaining a commitment to environmental responsibility.
Mission Statement
As of 2024, Genie Energy Ltd.'s mission statement emphasizes its dedication to delivering reliable and affordable energy solutions while fostering a sustainable future. The company seeks to leverage advanced technologies and customer-centric approaches to enhance energy efficiency and reduce environmental impact.
Financial Performance
Genie Energy has shown a robust financial performance in recent quarters. The following table summarizes key financial metrics for the nine months ended September 30, 2024, compared to the same period in 2023:
| Financial Metrics | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $322,300 | $323,787 | ($1,487) | (0.5) |
| Cost of Revenues | $217,271 | $211,211 | $6,060 | 2.9 |
| Gross Profit | $105,029 | $112,576 | ($7,547) | (6.7) |
| Net Income | $27,754 | $43,928 | ($16,174) | (36.8) |
| Earnings per Share (EPS) | $1.04 | $1.71 | ($0.67) | (39.2) |
Customer Base and Services
Genie Energy serves a diverse customer base, including residential, commercial, and industrial clients. The company's energy offerings encompass:
- Electricity Supply
- Natural Gas Services
- Renewable Energy Solutions
- Energy Efficiency Consulting
Recent Developments
In 2024, Genie Energy has made significant strides in expanding its renewable energy initiatives. The company acquired several solar facilities, which are expected to bolster its renewable energy portfolio and contribute to its sustainability goals. The following table outlines recent acquisitions and investments:
| Acquisition | Location | Investment Amount (in millions) | Date |
|---|---|---|---|
| Solar Facilities | Ohio and Michigan | $7.5 | November 3, 2023 |
| Solar Facility | Indiana | $1.3 | February 2024 |
Market Positioning
Genie Energy's strategic focus on renewable energy aligns with global trends towards sustainability. The company is positioned to capitalize on the growing demand for clean energy solutions, making it a competitive player in the energy market.
Future Outlook
Looking ahead, Genie Energy aims to enhance its market presence through continued investments in renewable energy projects and technological advancements. The company is committed to providing innovative energy solutions that meet the evolving needs of its customers while contributing to a sustainable future.
How Genie Energy Ltd. (GNE) Works
Business Overview
Genie Energy Ltd. operates primarily through its subsidiaries in the energy sector, focusing on both retail electricity and natural gas supply, as well as renewable energy solutions through Genie Renewables. The company serves residential and commercial customers across various markets, with significant operations in the United States and the United Kingdom.
Financial Performance
For the nine months ended September 30, 2024, Genie Energy reported total revenues of $322.3 million, compared to $323.8 million for the same period in 2023.
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Electricity | $268,390 | $268,688 |
| Natural Gas | $35,867 | $40,890 |
| Other | $18,043 | $14,209 |
| Total Revenues | $322,300 | $323,787 |
The cost of revenues for the same period was $211.2 million, resulting in a gross profit of $112.6 million. The operating income for the nine months ended September 30, 2024, was $44.2 million, while net income attributable to Genie Energy Ltd. was $44.0 million.
Earnings Per Share
Genie Energy Ltd. reported earnings per share (EPS) for the nine months ended September 30, 2024, as follows:
| EPS Type | 2024 | 2023 |
|---|---|---|
| Basic Continuing Operations | $1.06 | $1.48 |
| Basic Total | $1.71 | $1.04 |
| Diluted Total | $1.68 | $1.03 |
Cash Flow and Capital Expenditures
Net cash provided by operating activities for the nine months ended September 30, 2024, was $57.7 million, compared to $52.0 million in 2023. Capital expenditures during the same period were $4.0 million, primarily for solar project developments.
Segment Performance
Genie Energy's business segments include Genie Retail Energy (GRE) and Genie Renewables. Key metrics for the segments for the nine months ended September 30, 2024, are as follows:
| Segment | Revenue (in thousands) | Operating Income (in thousands) |
|---|---|---|
| Genie Retail Energy | $322,300 | $44,196 |
| Genie Renewables | $17,318 | ($2,279) |
Market Trends and Customer Base
As of September 30, 2024, Genie Energy served approximately 380,000 residential and commercial customers. The company reported an increase in the number of meters served by 35,000 from December 31, 2023, to September 30, 2024. Average monthly churn increased to 5.6% in the third quarter of 2024 from 4.4% in the same period of 2023.
Balance Sheet Highlights
As of September 30, 2024, Genie Energy reported total assets of $341.7 million and total liabilities of $141.4 million, resulting in stockholders' equity of $200.3 million.
| Balance Sheet Item | Amount (in thousands) |
|---|---|
| Total Assets | $341,681 |
| Total Liabilities | $141,395 |
| Stockholders' Equity | $200,286 |
Dividends and Shareholder Returns
In the nine months ended September 30, 2024, Genie Energy paid dividends of $6.2 million, reflecting a dividend per share of $0.075 for both Class A and Class B common stock. The company has a stock repurchase program with 4.2 million shares remaining available for repurchase as of September 30, 2024.
Recent Developments
In November 2023, Genie Solar acquired solar system facilities in Ohio and Michigan for a total of $7.5 million, expanding its renewable energy footprint. Additionally, the company completed the redemption of all outstanding preferred stock in June 2023, enhancing its capital structure.
How Genie Energy Ltd. (GNE) Makes Money
Revenue Streams
Genie Energy Ltd. (GNE) generates its revenue primarily through three segments: electricity sales, natural gas sales, and renewable energy solutions. As of September 30, 2024, the revenue breakdown is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Electricity | $100,694 | $114,002 | $268,390 | $268,688 |
| Natural Gas | $5,055 | $4,990 | $35,867 | $40,890 |
| Other Revenues | $6,168 | $6,057 | $18,043 | $14,209 |
| Total Revenues | $111,917 | $125,049 | $322,300 | $323,787 |
Electricity Sales
Electricity sales comprise the largest portion of Genie Energy's revenues. The company offers both fixed and variable rate plans to customers. For the three months ended September 30, 2024, the breakdown by pricing plans was:
| Pricing Plan | Electricity Revenue (in thousands) |
|---|---|
| Fixed Rate | $57,963 |
| Variable Rate | $42,731 |
The total electricity revenue for the nine months ended September 30, 2024, amounted to $268,390, with significant contributions from both pricing plans.
Natural Gas Sales
Natural gas sales have shown variability, with revenues of $5,055,000 in Q3 2024 compared to $4,990,000 in Q3 2023. Notably, the average revenue per therm sold decreased by 2.9% in Q3 2024 due to market conditions, despite a 4.3% increase in consumption.
Renewable Energy Solutions
Genie Energy's renewable segment includes solar energy projects and energy procurement advisory services. For the nine months ended September 30, 2024, the Genie Renewables segment generated $17,318,000 in revenues, a 40.5% increase from the prior year. This segment encompasses:
- Solar power project development
- Sale of solar panels
- Energy procurement advisory services
Customer Acquisition and Retention
Genie Energy's customer base, measured by meters served, was 399,000 as of September 30, 2024, which reflects an increase from prior periods. The company reported gross meter acquisitions of 104,000 in Q3 2024, a notable rise from 60,000 in the same quarter of the previous year.
Cost Management and Profitability
For the nine months ended September 30, 2024, Genie Energy reported a gross profit of $112,576,000, with operating expenses of $70,076,000, leading to an operating income of $32,087,000. The gross margin for electricity sales stood at 33.4%, while the overall gross margin percentage for the segment decreased from 38.1% to 32.4%.
Net Income and Earnings Per Share
Net income attributable to Genie Energy Ltd. for the nine months ended September 30, 2024, was $27,933,000, translating to earnings of $1.04 per share. This figure represents a decrease compared to the previous year's net income of $44,046,000.
Investment and Growth Strategy
Genie Energy is actively pursuing investments in renewable energy assets, having acquired solar system facilities for a total of $9 million in late 2023. The company plans to continue its capital expenditures, estimating between $6 million to $10 million primarily for solar projects through 2024.
Dividends and Shareholder Returns
For the nine months ended September 30, 2024, Genie Energy paid dividends of $0.075 per share, totaling approximately $6.2 million. The company has a stock repurchase program in place, with 4.2 million shares remaining available for repurchase as of September 30, 2024.
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Resources:
- Genie Energy Ltd. (GNE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Genie Energy Ltd. (GNE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Genie Energy Ltd. (GNE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.