NET Power (NPWR) investor relations material

Executive summary

• Unprecedented energy demand, especially from AI and data centers, is straining grid reliability and driving a shift toward integrated gas turbine and Net Power solutions for immediate reliable power and decarbonization.

• The integrated product approach, combining gas turbines with the Net Power cycle, enables faster market entry, flexible emissions, and a clear decarbonization path.

• Project Permian's LCOE has dropped below $100/MWh, reflecting over 33% improvement due to integration, value engineering, and expanded 45Q tax credits.

• Operating expenses surged in 2025, driven by a $359.8 million goodwill impairment and $56.1 million in expensed construction costs, resulting in a $565.1 million operating loss for the first half.

• Two lawsuits were filed in Q2 2025 alleging misleading statements regarding Project Permian's timing and costs.

Financial highlights

• Project Permian LCOE improved from over $150/MWh to under $100/MWh, driven by integration, value engineering, and tax incentives.

• ASU equipment and installation costs dropped by 15% and 10%, respectively, with pipe quantities and diameters reduced by 20% and 25%.

• Goodwill impairment and expensed construction costs totaled $415.9 million for the first half of 2025.

• Cash and cash equivalents at June 30, 2025 were $284 million, with total liquidity of $472.3 million.

• Net cash used in operating activities was $45 million for the first half, up $34.1 million year-over-year.

Outlook and guidance

• First power from Project Permian interconnect expected by mid-2028, with Net Power plant online by 2029 or early 2030, pending successful value engineering.

• Gas turbines to be deployed ahead of Net Power core facility, enabling immediate grid or data center service.

• La Porte test facility resumed validation work, with phased testing scheduled through 2027.

• Management believes current liquidity is sufficient for the next 12 months, but additional funding will be required for utility-scale construction.

• Ongoing focus on securing offtake agreements, financing, and project development for both gas turbine and Net Power components.