Aug 14, 2026 earnings call — Shift to unabated natural gas power
Company will lead with unabated natural gas power, sizing Project Permian for approximately 1 to 1.5 gigawatts, preserving future carbon capture option.
EPS $-0.91 (est $-0.07)
Key quotes
"Based on current market feedback, we do not expect to deploy post-combustion carbon capture in the initial phase of deployment."
"The site's capacity for approximately 1 to 1.5 gigawatts of power generation across multiple phases and the initial phase is being sized to meet where -- what the market will actually contract for it today."
"The configuration we're developing for Project Permian and other sites pairs battery energy storage, reciprocating engines and gas turbines to build in redundancy, so single units outage or scheduled maintenance doesn't take down power for which the customer desperately needs and requires."
Analyst Q&A 5
strategy vs other West Texas developers
Q (Nathaniel Pendleton · Texas Capital Bank): How NET Power views long-term strategy with the new focus and where it competes versus other developers in West Texas.
A: Management said the market today is supply constrained, so near-term value comes from delivering a lot of power fast rather than differentiation. They want projects in places where CO2 sequestration remains possible so assets can later be decarbonized.
"We're in a very, very supply constrained market." — Daniel Rice (CEO)
timing to secure offtake
Q (Nate Pendleton · Texas Capital Bank): How should we think about the path and timing from current customer talks to assigned offtake?
A: They said conversations are in progress and the next equipment tranche is being secured in coordination with a prospective customer rather than on spec. They hope to have more to share in the next couple of months and are aligning stakeholders and community timing.
"So this next tranche of megawatts that we're securing is really at the behest of one of these prospective customers that we hope to work with." — Daniel Rice (CEO)
customer project stage and shortage length
Q (Noel Parks · Tuohy Brothers): Are the potential off-takers early in project origination or already far along? How long might the power shortage last?
A: Management said many customers are moving to behind-the-meter, off-grid models and NET Power designed the site around smaller turbines that suit that use. For the shortage, on the short end they expect early 2030s to start solving new generation constraints, with a possible longer scenario into the 2040s.
"I think on like the short end of the range, you're talking about early 2030s, so I mean -- and that's just to get like new generation or new load onto the grid, you're talking about early 2030s." — Daniel Rice (CEO)
engine types and project timing
Q (Wei Jiang · Barclays): Will you use recip engines or other equipment for the first project, and how do you think about timing and fronting CapEx risk to derisk deals?
A: They said they are technology agnostic and are evaluating recips; the first project will be a mix of turbines, recips, and battery storage to meet reliability and cost needs. With "$300 million on the balance sheet" they plan a thoughtful approach to secure equipment without putting too much capital at risk and will work with customers on creative financing.
"And so yes, and Marc kind of said in his prepared remarks, as we think about just what this first project is going to look like it's going to be a combination of turbines, recips, battery storage." — Daniel Rice (CEO)
partners, costs, and retrofit of PCC
Q (Wade Suki · Capital One): Are you talking with partners to co-develop or fund projects, any cost update, and can Entropy PCC be retrofitted later?
A: They said project cost depends on the final project profile and equipment costs remain high, so the PPA must justify returns. NET Power said it has enough capital to move the project and will bring strategic partners if they materially improve the project; Marc added Entropy's post-combustion capture needs integration but can be added later as a second step and can fit into combined-cycle or capture+combined configurations.
"I think we're in like a very unique position where we possess sufficient capital to move this project along." — Daniel Rice (CEO)