The chart below shows how NPWR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NPWR sees a +11.85% change in stock price 10 days leading up to the earnings, and a -7.92% change 10 days following the report. On the earnings day itself, the stock moves by -8.01%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Equipment Validation Milestone: N E T Power's third quarter 2024 earnings call highlighted a significant milestone with the successful kickoff of Phase 1 of the equipment validation program with Baker Hughes, marking a critical step towards improving technology at the utility-scale.
Air Separation Supplier Selection: The company announced the selection of Air Liquide as the air separation supplier for Project Permian FEED, representing another significant milestone for the team.
Utility-Scale Technology Development: N E T Power continues to focus on developing and improving technology at the utility-scale, with plans to roll out a four-phase testing program at La Porte with Baker Hughes through 2026.
Limited Notice to Proceed: During the third quarter, N E T Power publicly announced the signing of their third Limited Notice to Proceed with Baker Hughes for approximately $90 million of purchases for long lead materials required to meet schedule for the utility scale turbine expander and related key process equipment.
Strong Financial Position: The company reported approximately $580 million of cash and investments deployed in the third quarter, indicating strong financial health and operational capacity.
Negative
Operational Cash Flow Analysis: The company reported a cash flow used in operations of approximately $8 million during Q3, which included a cash payment of approximately $5 million under the Baker Hughes JDA.
Quarterly Capital Expenditures Breakdown: Total capital expenditures for the quarter were approximately $22 million, comprised of approximately $10 million of capitalized costs associated with ongoing Project Permian development activities and approximately $13 million spent on La Porte modifications and upgrades ahead of testing.
Share Count and Warrants: The fully diluted share count was approximately 249 million shares as of September 30, which included approximately 215 Class A and Class B vested shares, 19.5 million shares issuable upon the exercise of outstanding public and private warrants, which if exercised would give NET Power an additional $225 million of cash.
Increasing Operational Cash Flow: The company expects cash flow used in operations to continue increasing as it builds out the organization progress the joint development program with Baker Hughes and ramp up activity at La Porte.
Limited Notice to Proceed: The company announced the signing of its third Limited Notice to Proceed with Baker Hughes for a total of approximately $90 million of purchases for long lead materials required to meet schedule for the utility scale turbo expander and related key process equipment.
NET Power Inc. (NPWR) Q3 2024 Earnings Call Transcript
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