NET Power Reports Q4 And Year End 2023 Results And Provides Business Update; Company Ended 2023 With ~$637M Of Cash And Short-Term Investments And No Debt

• Progressed Front-End Engineering and Design (FEED) for Project Permian, the Company's first utility-scale project in West Texas; signed Limited Notice to Proceed (LNTP) with Baker Hughes to release long-lead material for the first utility-scale turboexpander
• Signed Strategic Supplier Agreement with Lummus Technology to design and supply recuperative heat exchangers ("HXRs") for NET Power's near-zero emissions power generation cycle

NET Power Inc. (NYSE:NPWR) ("NET Power" or the "Company") today reported results for the fourth quarter and year end 2023.

Danny Rice, Chief Executive Officer of NET Power, commented, "Our team concluded the fourth quarter of 2023 with steady progress across our three strategic pillars. Development work continues at Project Permian and site preparation at our La Porte facility has ramped up in anticipation of upcoming Baker Hughes equipment validation campaigns scheduled to begin later this year."

Mr. Rice continued, "Our recuperative heat exchanger supply agreement signed with Lummus Technology in the fourth quarter marks a significant step in furthering the development of the NET Power technology and preparing for manufacturing mode. The partnership will enable NET Power plant deployments at manufacturing scale, further solidify our intellectual property moat and create an additional equipment licensing revenue stream.

"2023 was a historic year for NET Power, which included completing our business combination with Rice Acquisition Corp. II and becoming a publicly listed company on the NYSE in June. As we look to upcoming 2024 milestones, we plan to commence Baker Hughes equipment validation at La Porte, complete Project Permian FEED and form the project consortium, finalize our strategic partner selection for the Air Separation Unit (ASU) and advance additional NET Power origination projects.

"We believe it is of the utmost importance to develop and commercialize a breakthrough technology like NET Power in the public spotlight, and we look forward to continuing the journey towards delivering clean, affordable and reliable energy in the quarters and years to come."

Business Update

Baker Hughes Equipment Validation at La Porte Demonstration Facility – The Company continues construction modifications at its La Porte facility ahead of upcoming equipment validation campaigns with Baker Hughes. The process will follow four phases: (i) oxy-fuel burner configuration selection, (ii) single demonstrator combustor can validation, (iii) single utility-scale combustor can validation, and (iv) full demonstrator turboexpander validation. Phase one is set to begin in late 2024 and subsequent phases are expected to continue through 2026. These equipment validation test campaigns at La Porte are intended to de-risk the design of the utility-scale turboexpander which will be deployed to Project Permian and future projects.

Project Permian – At NET Power's first Texas-based project located near Midland-Odessa, FEED is ongoing with licensed EPC partner Zachry Group. FEED is expected to conclude in the second half of 2024 and will form the basis for NET Power's standardized utility-scale plant design. In December 2023, NET Power signed an LNTP with Baker Hughes to release long-lead material for the turboexpander. Additional orders for long-lead components are expected throughout 2024.

NET Power achieved two additional milestones for Project Permian in early 2024. In the first quarter of 2024, the Company initiated engineering work with the Company's selected ASU provider for Project Permian and executed a site land lease agreement with Occidental Petroleum. These achievements position NET Power to remain on target with the Project Permian development schedule.

Financial Updates

During the fourth quarter, cash flow used in operations was approximately $3 million and cash flow used in investing activities was approximately $5 million. The Company ended 2023 with approximately $637 million of cash and short-term investments and no debt, as compared to approximately $645 million in cash and short-term investments at the end of the third quarter of 2023.