Net Power — Second Quarter 2026 Earnings Summary

Financial Performance

• As of June 30, 2026, the Company held $310 million in cash, cash equivalents, and investments.
• Management believes existing liquidity is sufficient to fund obligations for the next 12 months following the filing of the Form 10-Q, assuming no additional pre-FID equipment obligations are entered into.
• No specific revenue, earnings, profit margins, or cash flow figures for the quarter were disclosed in the press release.
• No project-level financing, customer deposits, or partner capital for Project Permian had been committed as of the release date.

Guidance and Future Outlook

• The Company is recalibrating its commercial strategy to prioritize speed-to-power, reliability, and scale in response to accelerating load growth from AI and hyperscale data center infrastructure.
• Near-term focus is directed toward developing unabated natural gas power generation capacity, with carbon capture retained as an option for future phases as customer needs, economics, and financing evolve.
• The Company anticipates capturing near-term demand while preserving the long-term decarbonization opportunity.
• No specific financial guidance or quantitative growth targets were provided.

Business Segments and Product Lines

• Net Power has contracted two modular gas turbine generator sets with a nominal gross power of approximately 68 megawatts for use at Project Permian.
• The Company is actively evaluating the acquisition of additional gas power units for Project Permian.
• Commercial discussions are advancing directly with prospective power offtakers and with the support of a financial advisor for Project Permian and other sites.
• The Company is revising a contemplated arrangement with Entropy Inc. following the expiration of a prior letter of intent; discussions continue regarding potential commercial arrangements for deploying Entropy's post-combustion carbon capture (PCC) technology in later project phases.

Market and Competitive Landscape

• Market demand for natural gas-based power generation is growing quickly, driven by accelerating load growth from AI and hyperscale data center infrastructure.
• Customers are prioritizing speed-to-power and scale of deployment.
• The Company notes risks related to the development of competing energy technologies, including battery storage, nuclear, and other generation resources.

Risks and Challenges

• The business model is capital-intensive and may require raising additional capital in the future.
• Risks include the ability to negotiate binding power offtake agreements on acceptable terms and timelines to support a final investment decision for Project Permian.
• Potential delays or issues regarding grid interconnection processes with the Electric Reliability Council of Texas.
• Uncertainty regarding the availability, cost, and delivery timing of gas turbines and related long-lead equipment.
• Risks related to tariffs, trade barriers, export controls, and sanctions affecting equipment costs and supply timelines.
• Potential changes or elimination of governmental incentives and tax credits supporting carbon capture, including Section 45Q.
• Risks associated with the possibility that projects are developed with natural gas generation in advance of, or without, carbon capture.
• Risks related to the availability of project-level financing, partner capital, or other financing sources on acceptable terms.
• Potential for substantial capital commitment to power generation equipment before binding power offtake, site-control, or financing arrangements are in place.
• Risks related to data privacy, cybersecurity, and potential litigation.

Management Commentary and Tone

• CEO Danny Rice stated the Company spent the last four months in an intensive customer engagement and marketing process to determine market priorities.
• Management expressed confidence that the recalibrated strategy aligns with what power customers are currently prioritizing.
• The tone indicates a strategic pivot to meet immediate market demand while maintaining the long-term pathway for carbon capture.

Other Key Points

• Net Power will host a conference call on August 14, 2026, at 8:30 AM ET to discuss results.
• The Company's near-term development activities focus on delivering natural gas power generation with equipment designed to accommodate carbon capture in later phases.
• The Company is an energy technology and project development company focused on co-located natural gas power generation.