Verde Clean Fuels, Inc. Reports Q4 and FY 2024 Results

Q4 2024 and Subsequent Event Highlights

   -- Continuing to advance front-end engineering and design ("FEED") for 
      proposed natural gas-to-gasoline project in the Permian Basin 
   -- Closed $50 million equity investment by Cottonmouth Ventures, LLC 
      ("Cottonmouth"), a wholly-owned subsidiary of Diamondback Energy, Inc. 
      ("Diamondback") 
HOUSTON--(BUSINESS WIRE)--March 28, 2025-- 

Verde Clean Fuels, Inc. ("Verde" or "the Company") (NASDAQ: VGAS) today reported results for the fourth quarter and full year 2024.

"We continue to advance our plans to deploy our proprietary liquid fuels processing technology through the development of commercial production plants. During 2024, we signed a joint development agreement with Cottonmouth and began FEED for the Permian Basin project, a proposed natural gas-to-gasoline plant to be jointly developed with Cottonmouth utilizing our technology and associated natural gas from Diamondback's operations. More recently, we announced the signing and closing of an additional $50 million equity investment by Cottonmouth into Verde, which positions us to continue advancing our joint development activities. In addition to these efforts, we also continue to identify and evaluate other potential opportunities to deploy our technology while remaining disciplined with our resources," said Ernest Miller, CEO of Verde.

For the three months ended December 31, 2024, the Company recorded net loss of $(2.7) million and diluted net loss per share of Class A common stock of $(0.14). For the twelve months ended December 31, 2024, the Company recorded net loss of $(10.5) million and diluted net loss per share of Class A common stock of $(0.53). The Company's net loss for the three and twelve months ended December 31, 2024 was primarily attributable to ongoing general and administrative expenses.

As of December 31, 2024, the Company had cash and cash equivalents of $19.0 million and no debt. Also as of December 31, 2024, the Company had capitalized $1.0 million of FEED costs related to the proposed Permian Basin project, net of amounts reimbursable under the joint development agreement between Verde and Cottonmouth.

On January 29, 2025, the Company announced the closing of a $50 million equity investment by Cottonmouth. The investment consisted of the purchase of 12.5 million shares of Verde's Class A common stock by Cottonmouth at a price of $4.00 per share. The investment represented the second investment by Cottonmouth in Verde over the past two years, for a total investment of $70 million, making Cottonmouth the second largest shareholder of Verde.

About Verde Clean Fuels, Inc.

Verde is a clean fuels company focused on the deployment of its innovative and proprietary liquid fuels processing technology through development of commercial production plants. Verde's synthesis gas ("syngas") -to-gasoline plus (STG+$(R)$) process converts syngas, derived from diverse feedstocks, into fully finished liquid fuels that require no additional refining. Verde is currently focused on identifying and evaluating opportunities to convert associated natural gas into gasoline, which is expected to provide a market for such natural gas with the added potential benefits of flare mitigation and production of gasoline with a lower carbon intensity than conventional gasoline.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding the Company's expectations and any future financial performance, the Company's strategy, future operations, financial position, prospects, plans, goals and objectives of management are forward-looking statements. The words "could," "should," "would," "will," "aim," "may," "focus," "believe," "anticipate," "intend," "estimate," "expect," "advance," "project," "plan," "potential," "goal," "strategy," "proposed," "positions," the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the control of the Company, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date hereof. The Company cautions you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control. These risks and uncertainties include, but are not limited to: changes in general economic, financial, legal, political and business conditions; changes in domestic and foreign markets; the failure of Verde to develop its first commercial facility, whether due to the inability to obtain the required financing or for any other reason; the failure of Verde to develop any additional commercial facility for any reason; the risks and uncertainties relating to the implementation of Verde's business strategy and the timing of any business milestone; and delays in acquisition, financing, construction and development of any potential projects. Should one or more of the risks or uncertainties described herein and in any oral statements made in connection therewith occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. There may be additional risks that the Company presently does not know or that the Company currently believes are immaterial that could cause actual results to differ from those contained in the forward-looking statements. Additional information concerning these and other factors that may impact the Company's expectations and projections can be found in the Company's filings with the Securities and Exchange Commission (the "SEC"). The Company's filings with the SEC are available publicly on the SEC's website at www.sec.gov.

 
 
                          VERDE CLEAN FUELS, INC. 
                    CONSOLIDATED STATEMENTS OF OPERATIONS 
 
                   For The 3 Months Ended          For The Year Ended 
                         December 31,                  December 31, 
                  --------------------------  ------------------------------ 
                         (Unaudited) 
                  --------------------------  -------------  --------------- 
                      2024          2023          2024           2023 
General and 
 administrative 
 expenses         $ 2,734,130   $ 2,280,495   $ 11,205,770   $ 11,515,192 
Contingent 
 consideration              -             -              -     (1,299,000) 
Research and 
 development 
 expenses             100,914        82,406        451,072        329,194 
                   ----------    ----------    -----------    ----------- 
Total operating 
 loss               2,835,044     2,362,901     11,656,842     10,545,386 
                   ----------    ----------    -----------    ----------- 
 
Other (income)       (239,552)     (208,183)    (1,193,273)      (447,074) 
Interest expense            -             -              -        236,699 
                   ----------    ----------    -----------    ----------- 
Loss before 
 income taxes      (2,595,492)   (2,154,718)   (10,463,569)   (10,335,011) 
      Income tax 
       provision       65,331        47,079         51,465        166,265 
                   ----------    ----------    -----------    ----------- 
Net loss          $(2,660,823)  $(2,201,797)  $(10,515,034)  $(10,501,276) 
                   ==========    ==========    ===========    =========== 
Net loss 
 attributable to 
 noncontrolling 
 interest         $(1,780,277)  $(1,555,010)  $ (7,180,678)  $ (7,757,688) 
                   ==========    ==========    ===========    =========== 
Net loss 
 attributable to 
 Verde Clean 
 Fuels, Inc.      $  (880,546)  $  (646,787)  $ (3,334,356)  $ (2,743,588) 
                   ==========    ==========    ===========    =========== 
 
Earnings per 
share 
Weighted average 
 Class A common 
 stock 
 outstanding, 
 basic and 
 diluted            6,336,078     6,153,461      6,286,033      6,140,529 
                   ==========    ==========    ===========    =========== 
Loss per share 
 of Class A 
 common stock     $     (0.14)  $     (0.11)  $      (0.53)  $      (0.45) 
                   ==========    ==========    ===========    =========== 
 
 
                       VERDE CLEAN FUELS, INC. 
                      CONSOLIDATED BALANCE SHEETS 
 
                                                    As of 
                                        ------------------------------ 
                                        December 31,    December 31, 
                                             2024            2023 
                                        -------------  --------------- 
ASSETS 
Current assets: 
   Cash and cash equivalents            $ 19,044,067   $ 28,779,177 
   Restricted cash                           100,000        100,000 
   Accounts receivable -- other              226,157              - 
   Other current assets                      804,186        373,324 

                                         -----------    ----------- 
      Total current assets                20,174,410     29,252,501 
                                         -----------    ----------- 
 
Non-current assets: 
   Property, plant and equipment, net      1,096,270         62,505 
   Intellectual property and patented 
    technology                             1,925,151      1,925,151 
   Operating lease right-of-use 
    assets, net                              215,806        524,813 
   Deposits                                  160,669        160,669 
                                         -----------    ----------- 
      Total non-current assets             3,397,896      2,673,138 
                                         -----------    ----------- 
Total assets                            $ 23,572,306   $ 31,925,639 
                                         ===========    =========== 
 
LIABILITIES AND STOCKHOLDERS' EQUITY 
Current liabilities: 
   Accounts payable                     $    734,374   $    184,343 
   Accrued liabilities                     1,907,165      1,976,812 
   Operating lease liabilities               153,917        297,380 
   Other current liabilities                  15,129              - 
                                         -----------    ----------- 
      Total current liabilities            2,810,585      2,458,535 
                                         -----------    ----------- 
 
Non-current liabilities: 
   Promissory note -- related party                -        409,612 
   Operating lease liabilities                78,245        232,162 
                                         -----------    ----------- 
      Total non-current liabilities           78,245        641,774 
                                         -----------    ----------- 
Total liabilities                          2,888,830      3,100,309 
                                         -----------    ----------- 
   Commitments and Contingencies 
 
Stockholders' equity 
   Class A common stock, par value 
    $0.0001 per share, 9,549,621 and 
    9,387,836 shares issued and 
    outstanding as of December 31, 
    2024 and 2023, respectively                  955            939 
   Class C common stock, par value 
    $0.0001 per share, 22,500,000 
    shares issued and outstanding as 
    of December 31, 2024 and 2023, 
    respectively                               2,250          2,250 
   Additional paid in capital             37,502,903     35,014,836 
   Accumulated deficit                   (27,257,086)   (23,922,730) 
   Noncontrolling interest                10,434,454     17,730,035 
                                         -----------    ----------- 
Total stockholders' equity                20,683,476     28,825,330 
                                         -----------    ----------- 
Total liabilities and stockholders' 
 equity                                 $ 23,572,306   $ 31,925,639 
                                         ===========    =========== 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250328314107/en/

 
    CONTACT:    Investor Relations: 

Caldwell Bailey $(ICR.AU)$

verdeIR@icrinc.com

Media Relations:

Juliet Fisher (Merchant)

juliet@merchant.agency

(END) Dow Jones Newswires

March 28, 2025 16:15 ET (20:15 GMT)