On November 14, 2023, NET Power Inc (NPWR, Financial) released its 8-K filing, detailing the company's financial results for the third quarter of 2023 and providing a business update. Despite facing global supply chain challenges, NET Power continues to advance its strategic initiatives, including the development of its first utility-scale plant, Project Permian, located near Midland-Odessa, Texas.
Operational Highlights and Challenges
NET Power's CEO, Danny Rice, emphasized the company's progress on its corporate strategy, which includes finalizing the design for its utility-scale plant and preparing for key equipment demonstrations. The La Porte test facility is undergoing modifications to facilitate combustor and turboexpander demonstrations with Baker Hughes. These efforts are critical to de-risking Project Permian and refining NET Power's plant controls architecture.
However, the company is adjusting its timeline for Project Permian, now expecting initial power generation between the second half of 2027 and the first half of 2028. This change accounts for a 12-month cushion to mitigate the impact of the tight global supply chain. Despite these delays, NET Power is optimistic about resolving supply chain bottlenecks by the time its second utility-scale plant is deployed.
Financial Performance
NET Power reported a modest cash flow from operations of approximately $0.1 million for the quarter. The company's investing activities resulted in a negative cash flow of approximately $103 million, primarily due to the investment of $100 million into short-term interest-bearing securities. As of the end of the third quarter, NET Power's cash and short-term investments stood at approximately $645 million, down slightly from $649 million at the end of the previous quarter. The company remains debt-free.
Capitalized expenditures for Project Permian totaled $2.5 million in Q3 2023, with initial long-lead equipment orders expected to be released in the first half of 2024. NET Power's fully diluted share count is approximately 247 million shares, with various classes of common stock and warrants contributing to this total.
Looking Ahead
NET Power's financial outlook remains strong due to its significant cash reserves and over-capitalization upon going public. The company is also making progress on its first originated project in North America, having completed a technical feasibility study and preparing for permit submissions in 2024.
NET Power's mission to deploy its NET Power Cycle technology globally is underscored by its commitment to clean, affordable, and reliable power. The company's partnership approach with local communities, power producers, and technology providers is aimed at delivering the "Energy Trifecta" at scale by the end of the decade.
For more detailed information on NET Power's third quarter financial results and business updates, interested parties can access the archived webcast of the conference call on NET Power's investor relations website or contact the company's investor relations and media contacts.
As NET Power navigates the complexities of the global energy market and supply chain dynamics, investors and stakeholders can expect the company to continue focusing on innovation, strategic partnerships, and prudent financial management to achieve its long-term objectives.
Explore the complete 8-K earnings release (here) from NET Power Inc for further details.
