Tuesday, May 7, 2019

Genie Energy Ltd. (GNE)

Acquisitions boost results. Can this be duplicated?

Genie Energy Ltd through its subsidiaries operates as a retail energy provider; and an oil and gas exploration company. It operates through three segments: Genie Retail Energy; Afek Oil and Gas, Ltd.; and Genie Oil and Gas. The company resells electricity and natural gas to residential and small business customers primarily in the Eastern and Midwestern United States and offers energy brokerage and advisory services.

Mike Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Genie Energy reports higher adjusted EBITDA fueled by acquisitions.   Genie energy reported 2019 first-quarter adjusted EBITDA of $10.4 million versus $8.6 million for the same period last year.  Improved results reflect the positive contribution of new operations in Finland, the acquisition of Prism Solar, and a new municipal aggregation agreement.  Higher results came despite weather headwinds that decreased natural gas sales. 
• Customer growth was impressive. Customer growth was strong with meters rising 6.9% year over year and 23.5% quarter over quarter.  The company’s churn rate dropped to 5.3% versus 7.6% in the first quarter last year and 7.1% in the mos...
  
  

*Analyst certification and important disclosures included in full report.  NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.