Genie Energy Estimates Preliminary Impact of Winter Storm Uri in Texas, Notes Sufficient Liquidity

Genie Energy today provided additional information on the financial impact to the company of Winter Storm Uri, which impacted the Texas electricity market in mid-February 2021.

"Because complete supply costs are not yet available, Genie Energy is not yet able to fully quantify the financial impact of Winter Storm Uri. However, invoices received to date as well as other costs incurred place the loss from the situation in the first quarter of 2021 at approximately $12.5 million. The final amount of the losses is still unknown," Genie Energy said

"The company plans to provide updates when it announces fourth quarter 2020 results on March 11th and when it gains access to complete price and volume settlement data from its supplier. Moreover, the results of formal disputes regarding pricing and volume settlement and corrective actions that Genie and other market participants are seeking from the State of Texas, ERCOT, the Public Utility Commission of Texas, and other regulatory agencies of jurisdiction may impact the final cost," Genie Energy said

The company serves approximately 10,000 electricity meters in ERCOT's service territory comprising approximately 21,000 residential customer equivalents, or approximately 5% of its global customer base.

"Despite the evolving impact of the Winter Storm Uri in Texas, Genie Energy has consistently maintained, and continues to maintain, sufficient liquidity to conduct its operations in the ordinary course of business and management remains confident that the company has the resources to address the ultimate impacts from this extraordinary event," Genie Energy said