Dandelion Energy Closes $70M Series B1 Funding Round to Scale Geothermal Heating and Cooling Solution to Meet Surging Demand
Highly Accretive Expansion in Northern Delaware Basin Meaningfully Increases Scale
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Nov 15, 2022, 09:00 ET
Consumer Demand for Geothermal Reflects Desire for Access to Efficient, Affordable, and Effective Residential Renewable Energy Solutions
MOUNT KISCO, N.Y., Nov. 15, 2022 /PRNewswire/ — Dandelion Energy, the nation’s leading residential geothermal company, today announced the closure of a $70M B1 funding round co-led by LENX, the corporate venture arm of Lennar, one of the nation’s leading homebuilders, and NGP ETP, the energy transition investing platform of NGP. The funding round included participation from Breakthrough Energy Ventures, NEA, GV, Collaborative Fund, and Building Ventures.
The fundraise reflects the size of Dandelion’s opportunity, as well as its tremendous growth. Dandelion has more than tripled its commercial operations in 2022, and this funding will continue that expansion in retrofit and new construction markets. In addition, as heat pumps move into the mainstream, Dandelion will use the capital to invest in a broader range of products capable of serving more customers and geographies.
Dandelion’s products sit at the intersection of sustainability and affordability. With home heating and cooling accounting for more than half of a home’s energy consumption, heat pumps are increasingly considered a compelling alternative to traditional gas-powered furnaces. This decades-old technology is stable, cost-effective, and reliable. The passing of the Inflation Reduction Act of 2022 has made geothermal heating and cooling more affordable and accessible than ever, providing tax credits and other financial incentives for homeowners embracing heat pump technology.
“We are thrilled to welcome these incredible investors to our board. Together, LENX and NGP ETP bring unparalleled expertise in consumer behavior, new construction, and energy economics — all of which are driving the transition to sustainable heating,” said Michael Sachse, CEO of Dandelion Energy. “Our goal is to be the Tesla of heating and cooling, and with this capital, we expect to make great strides down that path.”
Dandelion Energy is bringing modern, incredibly efficient heat pumps to residential homes with its geothermal heating and cooling system, allowing homeowners to replace their existing HVAC or for new builds and renovations to incorporate this technology with ease. The company recently celebrated its 1,000th geothermal installation. For most homes, heating is both a significant cost and the majority of the home’s carbon footprint. By switching to geothermal with Dandelion, these homes have dramatically reduced their footprint while securing long term energy affordability for themselves.
“Lennar is passionate about the exploration of technology to create solutions that make homes more energy efficient and more affordable for customers,” said Eric Feder, President of LENX. “We are eager to continue our engagement with the Dandelion team, working together to lower the cost of geothermal heating and cooling and provide homebuyers with options for a more energy-efficient home.”
“The building sector is a significant contributor to global greenhouse gas emissions, and electrified heat pumps are a cost-effective and well-tested method of meaningfully reducing building sector emissions,” said Maritza Liaw, Partner at NGP. “Ground source heat pumps have among the lowest carbon emissions and lowest operating costs of all heating systems. Dandelion provides a full suite of services from design through installation of a high-quality system, simplifying the process for homeowners, and we are pleased to partner with this outstanding team.”
To learn more about geothermal heating and cooling or to see if your home qualifies, visit https://dandelionenergy.com/.
About Dandelion Energy
As the nation’s leading residential geothermal company, Dandelion Energy helps homeowners free their homes from fossil fuels. By making geothermal heating and cooling systems accessible and affordable for modern homeowners, Dandelion is working to mitigate climate change with renewable technologies that decarbonize homes. Today, Dandelion’s heating and cooling solutions allow homeowners to save up to 50 percent on their heating and cooling bills and help the environment by moving away from conventional systems to reduce homes’ carbon dioxide emissions by up to 80 percent. The state-of-the-art geothermal heat pump system offers wifi-enabled monitoring, creating a smarter, more responsive, and more innovative approach than any other HVAC system on the market. To learn more, visit www.dandelionenergy.com.
About Lennar Corporation
Lennar Corporation, founded in 1954, is one of the nation’s leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar’s Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar’s homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar’s Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LENX drives Lennar’s technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com.
About NGP ETP
NGP ETP is the energy transition platform of NGP. NGP ETP partners with top-tier management teams and invests equity in companies that enable the growth of renewable energy, the electrification of our economy or the more efficient use of energy. Founded in 2005, NGP ETP is one of the most experienced energy transition investors in the industry. For additional information, visit www.ngpenergycapital.com/energy-transition.
(1) Earthstone management estimate of Titus three stream sales volumes for first 20 days of June 2022.
(2) PV-10 is a non-GAAP measure that differs from a measure under GAAP known as “standardized measure of discounted future net cash flows” in that PV-10 is calculated without including future income taxes.
(3) Earthstone management estimate of proved developed reserve volumes and values as of August 1, 2022, discounting cash flows at a rate of 10% and utilizing NYMEX strip prices as of June 17, 2022.
(4) Based on Earthstone management estimates and NYMEX strip prices as of June 17, 2022; excludes general and administrative expenses.
(5) Adjusted EBITDAX and Free Cash Flow are non-GAAP measures. Adjusted EBITDAX is defined as net (loss) income plus, when applicable, accretion of asset retirement obligations; impairment expense; depletion, depreciation and amortization; interest expense, net; transaction costs; (gain) loss on sale of oil and gas properties, net; exploration expense; unrealized loss (gain) on derivative contracts; stock-based compensation (non-cash); and income tax expense. Free Cash Flow is defined as Adjusted EBITDAX (defined above), less interest expense, less accrual-based capital expenditures.
(6) Pro forma share count of ~142.4 million includes ~79.1 million Class A Common Shares and ~34.3 million Class B Common Shares, as of 6/24/22; the assumed conversion on July 6, 2022 of the 280,000 shares outstanding of Series A Convertible Preferred Stock into ~25.2 million Class A Common Shares, and ~3.9 million Class A Common Shares issued to Titus as partial consideration for the Titus Acquisition.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as “expects,” “believes,” “intends,” “anticipates,” “plans,” “estimates,” “forecast,” “guidance,” “potential,” “possible,” or “probable” or statements that certain actions, events or results “may,” “will,” “should,” or “could” be taken, occur or be achieved. The forward-looking statements include statements about the expected benefits of the Titus Acquisition to Earthstone and its stockholders, the anticipated completion of the Titus Acquisition or the timing thereof, the expected future reserves, production, financial position, business strategy, revenues, earnings, costs, capital expenditures and debt levels of the combined company, and plans and objectives of management for future operations. Forward-looking statements are based on current expectations and assumptions and analyses made by Earthstone and its management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to: the ability to complete the Titus Acquisition on anticipated terms and timetable; Earthstone’s ability to integrate its combined operations successfully after the Titus Acquisition and achieve anticipated benefits from it; the possibility that various closing conditions for the Titus Acquisition may not be satisfied or waived; risks relating to any unforeseen liabilities of Earthstone or Titus; declines in oil, natural gas liquids or natural gas prices; the level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities; the timing of exploration and development expenditures; inaccuracies of reserve estimates or assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; impacts to financial statements as a result of impairment write-downs; risks related to level of indebtedness and periodic redeterminations of the borrowing base and interest rates under Earthstone’s credit agreement; Earthstone’s ability to generate sufficient cash flows from operations to meet the internally funded portion of its capital expenditures budget; Earthstone’s ability to obtain external capital to finance exploration and development operations and acquisitions; the impacts of hedging on results of operations; uninsured or underinsured losses resulting from oil and natural gas operations; Earthstone’s ability to replace oil and natural gas reserves; and any loss of senior management or technical personnel. Earthstone’s annual report on Form 10-K for the year ended December 31, 2021, quarterly reports on Form 10-Q, recent current reports on Form 8-K, and other Securities and Exchange Commission (“SEC”) filings discuss some of the important risk factors identified that may affect Earthstone’s business, results of operations, and financial condition. Earthstone undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.
JMG Public Relations
SOURCE Dandelion Energy