VGAS News & Events

Verde Clean Fuels announced a revised strategy to deploy its innovative and proprietary liquid fuels processing technology through capital-lite opportunities. In connection with its revised strategy, the company is implementing a material cost reduction program targeting a 50% reduction in cost. The company's revised strategy is focused on capital-lite opportunities to deploy its STG+ technology. Such opportunities include licensing technology and providing engineering, technical, and operational services. The company had previously been focused on the deployment of its STG+ technology through development of capital-intensive commercial production plants. The shift in strategy is intended to identify the most effective pathways to commercialize the STG+ technology with a disciplined approach to capital allocation. Related to its revised strategy, the company has implemented and intends to continue implementing aggressive cost savings initiatives. Related to the change in strategy, the company has eliminated roles related to the development of capital-intensive commercial production plants that are no longer aligned with its current operating plan. The company's board of directors is being streamlined. The company is reducing director cash compensation by 80% and current directors Martijn Dekker and Dail St. Claire will not be standing for re-election at the end of their term. The company is targeting a 50% reduction in operating costs in 2026 as compared to 2025. The company also issued guidance on expected cash and cash equivalents of more than $50M by end of Q1 with no changes to its current 44.5M shares outstanding considering both Class A and Class C common stock. In connection with these initiatives, the company's board of directors has created a restructuring committee and appointed director Jonathan Siegler as the sole member of that committee. The restructuring committee's mandate includes overseeing all aspects of the company's revised strategy and evaluation of strategic alternatives while ensuring the company remains fully Nasdaq-compliant.

Verde Clean Fuels (VGAS) announced the suspension of development of its Permian Basin project primarily as a result of changing market conditions driven by increasing demand for natural gas in the Permian Basin. In February 2024, the company and Cottonmouth Ventures, a wholly-owned subsidiary of Diamondback Energy (FANG) entered into a joint development agreement to develop a natural gas-to-gasoline plant in the Permian Basin utilizing Verde's STG+ technology and associated natural gas from Diamondback's operations. Following announcement of the JDA, the company began development work on the Permian Basin Project, which included a front-end engineering and design study that was completed in December 2025.

Verde Clean Fuels (VGAS) announced the entry into a stock purchase agreement with Cottonmouth Ventures, a wholly-owned subsidiary of Diamondback Energy (FANG), for a $50M equity investment by Cottonmouth into Verde. The investment consists of the purchase of 12.5M shares of Verde's Class A common stock at a purchase price of $4.00 per share. Closing of the investment is anticipated to occur during Q1 2025, subject to satisfaction of customary closing conditions. Upon closing, the investment would represent the second investment by Cottonmouth in Verde over the past two years, for a total investment of $70M, making Cottonmouth the second largest shareholder of Verde. Proceeds from the investment are expected to be used to further the development and construction of potential natural gas-to-gasoline production plants in the Permian Basin and for other general corporate purposes. The proposed plants to be jointly developed by the Parties would produce fully-refined gasoline utilizing Verde's patented process from associated natural gas feedstock supplied from Diamondback's operations in the Permian Basin. Effective at closing of the investment, Verde will expand its board of directors to eight members and appoint a new director to be designated by Cottonmouth. Cottonmouth will also be entitled to appoint an observer to the company's board of directors.

Verde Clean Fuels announces the appointment of George Burdette as Chief Financial Officer. Mr. Burdette will be responsible for all aspects of finance for the Company. Prior to joining the Company, Mr. Burdette served as CFO of Arbor Renewable Gas, a private equity owned renewable fuels platform. Prior to Arbor, Mr. Burdette served as CFO of Itafos, a publicly traded, global phosphate fertilizer producer.