NET Power (NPWR) Q1 2026 earnings summary

Executive summary

• Advanced clean, firm power development in the Permian Basin, targeting an initial 80 MW output for Phase I with commercial operations expected by early 2029 and potential to scale to 800 MW, leveraging post-combustion carbon capture technology licensed from Entropy Inc.

• Engaged a strategic advisor to facilitate power offtake discussions, aiming to secure long-term agreements for Project Permian Phase I and future deployments.

• Focus shifted from Oxy-Combustion Cycle to modular clean gas power plants with PCC technology, with the Baker Hughes JDA development activities suspended and ongoing negotiations for amendments.

• Project advancement is supported by in-house engineering, strategic partnerships, and a flexible deployment model, including grid and behind-the-meter solutions.

• The company is progressing engineering, financing, and commercial workstreams in parallel, aiming for FID in the second half of 2026 and commercial operation in early 2029.

Financial highlights

• Ended Q1 2026 with approximately $319 million in cash, cash equivalents, and investments, and no debt.

• Total liquidity (cash plus available-for-sale securities) was $318.3 million at quarter-end.

• Net loss attributable to shareholders was $9.9 million for Q1 2026, with total operating expenses of $34.2 million, down year-over-year due to the absence of prior impairment charges.

• G&A burn rate is $8–$9 million per quarter, providing a long runway to reach FID.

• Total installed cost (TIC) target for Project Permian Phase I remains $475–$575 million.

Outlook and guidance

• Final investment decision for Project Permian Phase I is targeted for the second half of 2026, with commercial operation expected in early 2029.

• Management believes current liquidity is sufficient for the next 12 months, but additional funding will be required for future project development.

• Spend is expected to ramp up as critical long-lead equipment is procured to maintain the project schedule.

• The company will remain prudent in capital commitments, contingent on securing committed customer demand.

• Targeted to become the first operational natural gas power plant with post-combustion carbon capture in the U.S.