Verde Clean Fuels, Inc. Announces Q4 and FY 2024 Results
Verde Clean Fuels, Inc. (“Verde” or “the Company”) (NASDAQ: VGAS) today reported its financial results for the fourth quarter and full year of 2024, highlighting the company’s continued progress in deploying its proprietary liquid fuels processing technology.
“We are making strong strides toward deploying our liquid fuels processing technology through the development of commercial production plants,” said Ernest Miller, CEO of Verde. “In 2024, we signed a joint development agreement with Cottonmouth and commenced Front-End Engineering Design (FEED) for our Permian Basin project, which is a proposed natural gas-to-gasoline plant. This project will be developed jointly with Cottonmouth using our technology and natural gas from Diamondback’s operations. Additionally, we closed a $50 million equity investment from Cottonmouth, which strengthens our ability to advance our joint development efforts.”
Verde’s focus on clean fuels and innovative technology continues to drive its business forward, and the company remains disciplined with its resources while exploring additional opportunities to deploy its technology.
Fourth-Quarter 2024 Financial Results
For the three months ending December 31, 2024, Verde reported a net loss of $2.7 million and a diluted net loss per share of $0.14 for its Class A common stock. The company’s financial performance was primarily impacted by general and administrative expenses related to its ongoing development activities.
Full-Year 2024 Financial Results
For the twelve months ended December 31, 2024, Verde recorded a net loss of $10.5 million and a diluted net loss per share of $0.53 for its Class A common stock. The full-year loss was similarly driven by the company’s ongoing general and administrative expenses, as it continues to invest in the development of its technology and commercial projects.
Balance Sheet and Cash Position
As of December 31, 2024, Verde held cash and cash equivalents of $19.0 million, with no outstanding debt. Additionally, the company had capitalized $1.0 million in FEED costs related to its proposed Permian Basin project, net of amounts reimbursable under the joint development agreement with Cottonmouth. These efforts are a part of Verde’s ongoing commitment to developing and advancing its clean fuels processing technology.
Recent Developments
In a key development, Verde announced the closing of a $50 million equity investment by Cottonmouth on January 29, 2025. The investment consisted of the purchase of 12.5 million shares of Verde’s Class A common stock at a price of $4.00 per share. This marks Cottonmouth’s second investment in Verde over the past two years, totaling $70 million and positioning Cottonmouth as the second-largest shareholder of the company.
The additional funding will allow Verde to continue advancing its joint development activities and support its efforts to commercialize its innovative technology. Cottonmouth’s ongoing support underscores the potential and value of Verde’s approach to converting natural gas into gasoline, with significant environmental and economic benefits.
Verde’s Technology and Future Outlook
Verde Clean Fuels focuses on the deployment of its innovative liquid fuels processing technology through the development of commercial production plants. The company’s STG+® (Synthesis Gas-to-Gasoline) process is designed to convert syngas derived from a variety of feedstocks into finished liquid fuels that do not require further refining. This technology offers the opportunity to convert associated natural gas into gasoline, providing a valuable market for this often-flared resource. Additionally, the process yields gasoline with lower carbon intensity compared to conventional gasoline, contributing to Verde’s goal of reducing carbon emissions in the transportation sector.
The company’s ongoing efforts, including its work with Cottonmouth, position Verde to play a significant role in addressing the global need for cleaner fuels. Verde’s technology is poised to mitigate the environmental impact of natural gas flaring while creating a sustainable, low-carbon fuel source.
Looking forward, Verde remains committed to evaluating new opportunities to deploy its technology in the rapidly evolving clean energy landscape. The company is focused on executing its current projects while maintaining a disciplined approach to resource allocation. As Verde continues to expand its portfolio and grow its operations, it remains well-positioned to capitalize on the increasing demand for clean, sustainable fuels.
