Financial Data and Key Metrics Changes - Total revenue for 2024 was $27.8 million, an increase of 19.6% from $23.2 million in 2023, driven by higher average selling prices and increased fuel volumes in the mobile fueling segment [9][11] - Cost of sales rose to $25.5 million from $21.9 million, resulting in a gross profit of $2.3 million and an improved gross margin of 8%, up 200 basis points from 6% [9][10] - Operating loss narrowed to $7.3 million from $8.5 million in 2023, while net loss increased to $16.2 million or $4.66 per share compared to $10.5 million or $6.98 per share in 2023, largely due to one-time non-operational expenses [10][11] Business Line Data and Key Metrics Changes - Gallons delivered grew to 7.2 million from 5.6 million, representing a growth of 24% [10] - Operating expenses slightly decreased to $9.6 million from $9.9 million in 2023, with G&A expenses at $8.5 million and depreciation and amortization at $1.1 million [10] Market Data and Key Metrics Changes - As of February 2025, the company delivered over 2.8 million gallons compared to 1.1 million gallons in the same period in 2024, translating to revenue growth of $10.1 million compared to $4.2 million [12] Company Strategy and Development Direction - The company is transitioning from a last-mile fuel company to a comprehensive energy technology company, focusing on AI, clean energy, and mobile fueling [5][13] - Key strategic initiatives for 2025 include executing utility-scale smart microgrid deployments, launching wireless EV charging pilots, expanding the mobile fueling network, and generating recurring revenue through licensing and SaaS agreements [13] Management's Comments on Operating Environment and Future Outlook - Management believes 2025 will be a breakout year, with expectations of consistent growth driven by an expanded client base and strategic acquisitions [11][17] - The company is actively evaluating financing options and strategic partnerships to support its growth plan for 2025 [12] Other Important Information - The company made significant progress on its smart microgrid platform with approximately $750 million in planned deployments [6] - The company is advancing its wireless EV charging systems, which include bidirectional, static, and dynamic charging capabilities [6][7] Q&A Session Summary Question: What drove the 20% year-over-year revenue increase? - The increase was driven by an expanded client base, cultivation of new relationships, and acquisitions including Shell Oil's fleet and Yoshi's mobile fueling business [16][17] Question: When do you expect to recognize revenue from smart microgrid projects? - Revenue is expected to be recognized in 2025 as projects break ground, with a revenue stream defined for approximately 35 years [19][20] Question: What is the current stage of wireless EV charging technology and expected commercial adoption? - The company plans to deploy its first wireless charging road in Southern Florida this year, with pilot phases expected to begin soon [22][23] Question: Will M&A be part of the strategy moving forward? - Yes, M&A will be a significant part of the growth strategy, with recent acquisitions already made in the mobile fueling sector [25]

Financial Data and Key Metrics Changes - In Q4 2024, the company achieved a revenue growth of 109% year-over-year and an adjusted EBITDA growth of 108%, with an adjusted EBITDA margin of 87% [3][12] - For the full year 2024, revenues increased by 51% year-over-year, and adjusted EBITDA grew by 55%, achieving an adjusted EBITDA margin of 88% [3][12] - Free cash flow for Q4 was approximately $26.7 million, with a free cash flow margin of 73%, while for the full year, free cash flow totaled $66.7 million [16][21] Business Line Data and Key Metrics Changes - Surface use royalties and revenues increased by 54% sequentially in Q4, contributing significantly to revenue growth [13] - Non-oil and gas royalty revenue accounted for nearly 90% of overall revenue in Q4, remaining flat from the prior quarter but up about 20% year-over-year [14] - Resource sales and royalties declined by 28% sequentially due to decreased brackish water sales and royalty volumes [13] Market Data and Key Metrics Changes - The company expanded its land holdings from approximately 72,000 surface acres to about 273,000 surface acres, with significant acquisitions in Q4 [4][5] - The acquisition of the Wolf Bone Ranch added 46,000 acres in a strategic location for oil and natural gas production [5] - The company is pursuing growth opportunities in digital infrastructure, renewable energy, and commercial real estate [6][8] Company Strategy and Development Direction - The company is focused on an active land management strategy to create shareholder value, with plans to continue acquiring underutilized and under-commercialized surface [4][18] - Future growth is expected from digital infrastructure and renewable energy projects, including agreements for solar energy project development [6][7] - The company aims to maintain a strong balance sheet while pursuing value-enhancing land acquisitions [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential from digital infrastructure and the need for data centers, particularly in West Texas [8][9] - The company reaffirmed its guidance for 2025, expecting adjusted EBITDA of $170 million to $190 million driven by recent acquisitions and increased surface use royalties [22] - Management noted that the business model allows for significant cash flow growth without substantial capital expenditures [15][18] Other Important Information - The company ended 2024 with $385 million in debt, up from $281.3 million at the end of Q3 2024, and has total liquidity of $107 million [19][21] - A cash dividend of $0.10 per share was declared, with plans to revisit the amount quarterly [21] Q&A Session Summary Question: Surface use economic efficiency growth expectations - Management indicated that there is still room for improvement in surface use economic efficiency, with potential to achieve over $3,000 per acre [25][27] Question: Details on the WES agreement and third-party agreements - The WES agreement is expected to generate low to mid-teens of royalties once operational, with ongoing discussions for additional third-party agreements [29][32] Question: Data center roadmap and revenue expectations - The data center project has a 2-year site selection period followed by a 4-year construction period, with expected revenues ramping up post-construction [35][39] Question: M&A outlook and market fragmentation - The market remains fragmented with many opportunities for M&A, which continues to be a priority for capital allocation [79][82] Question: Impact of oil prices on 2025 guidance - The 2025 guidance does not incorporate significant oil price fluctuations, as the company is insulated from commodity price sensitivity [74][75] Question: Water needs for data centers - Brackish water and produced water require treatment for use in cooling data centers, but the company has abundant resources available [67][70]

Financial Data and Key Metrics Changes - In 2024, the company achieved adjusted EBITDA of $2.64 billion, down from $2.8 billion in 2023, primarily due to extreme weather events in South America and asset sales [32][34] - Adjusted EPS for 2024 was $2.14, an increase from $1.76 in 2023, driven by tax benefits from new renewable projects and a lower adjusted tax rate [33][34] - Parent free cash flow was $1.1 billion, at the midpoint of guidance, reflecting a more than 10% increase from the prior year [37] Business Line Data and Key Metrics Changes - The Renewables SBU experienced lower adjusted EBITDA due to historic weather volatility in South America, with significant contributions from new projects in the U.S. partially offsetting losses [34][36] - The Utilities SBU saw higher adjusted PTC driven by rate-based investments and improved weather, but was partially offset by higher interest expenses [36] - The Energy Infrastructure SBU's lower adjusted EBITDA was attributed to outages and lower margins, while the New Energy Technologies SBU showed improved results [36] Market Data and Key Metrics Changes - The U.S. added 49 gigawatts of new renewable capacity in 2024, with renewables and battery storage representing 92% of those additions [15] - In 2025, the U.S. is expected to add 63 gigawatts, with 93% being solar, storage, and wind [16] - The company noted that renewables have the shortest time to power and greater price certainty, which is critical for meeting the growing demand for electricity [17] Company Strategy and Development Direction - The company is focusing on reducing investments in renewables to prioritize high-risk adjusted return projects and improve organizational efficiency [6][10] - The 2025 financial outlook indicates a significant growth in renewables EBITDA, with expectations of over 60% year-over-year growth [12][41] - The company is committed to maintaining its investment-grade credit rating and dividend while streamlining operations and reducing costs [26][50] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with stock price performance but emphasized the resilience of the business model against regulatory changes [5][6] - The company is confident in achieving long-term growth targets of 5% to 7% adjusted EBITDA growth through 2027, supported by a strong backlog of projects [26][57] - Management highlighted the importance of renewables in meeting the increasing demand for electricity, particularly from technology customers [6][17] Other Important Information - The company signed 4.4 gigawatts of new power purchase agreements (PPAs) in 2024, aiming for 14 to 17 gigawatts by 2025 [7] - The sale of Brazilian assets was noted as a significant de-risking move, reducing exposure to various market risks [14] - The company plans to maintain a focus on larger, more profitable projects while reducing overall capital expenditures [27][63] Q&A Session Summary Question: On cost savings and their sources - The company confirmed that the $150 million in cost savings ramping to $300 million is ongoing and not one-time, with confidence in achieving these reductions [60][61] Question: On renewable CapEx and growth strategy - Management clarified that while CapEx is being cut, the focus remains on executing a strong pipeline, with a shift towards fewer but larger projects [71][73] Question: On asset sales and coal contributions - The company indicated that asset sales will include some coal exits and technology monetization, but the reliance on these sales has decreased [76][77] Question: On cost reduction specifics - The cost reduction program includes resizing the development team, cutting early-stage project costs, and a 10% workforce reduction [81][82] Question: On credit metrics and future outlook - Management discussed expectations for improving credit metrics, with a focus on increasing cash flow and EBITDA through operational efficiencies [86][95]