Nabors Energy Transition Corp. II Reports $11.95 Million Net Income for 2024, Plans Merger with e2Companies LLC

Nabors Energy Transition Corp. II, a blank check company formed to pursue a business combination in the energy transition sector, reported a net income of $11.95 million for the year ending December 31, 2024, compared to a net income of $7.57 million for the previous year. The increase in profitability was primarily driven by interest income from marketable securities held in the trust account, which amounted to $16.11 million in 2024, up from $7.62 million in 2023. Operating costs for the year were $4.16 million, reflecting a significant rise from $450,729 in the prior year, largely due to increased administrative expenses associated with being a public company.

The company completed its Initial Public Offering (IPO) on July 18, 2023, raising approximately $305 million from the sale of 30.5 million units, each consisting of one Class A ordinary share and one-half of a redeemable warrant. Additionally, it raised $9.54 million through a private placement of warrants. As of December 31, 2024, Nabors Energy Transition Corp. II had approximately $331.78 million in cash and marketable securities held in trust, which is intended to be used for its initial business combination. The company has until July 18, 2025, to complete this transaction, or it will be required to liquidate and return funds to shareholders.

Strategically, the company has entered into a Business Combination Agreement with e2Companies LLC, which is expected to close following shareholder approval and the satisfaction of customary closing conditions. This merger is part of Nabors' strategy to focus on companies that facilitate the transition to renewable energy and reduce greenhouse gas emissions. The company has also established a support agreement with key stakeholders to ensure the successful completion of the merger.

Operationally, Nabors Energy Transition Corp. II has not yet commenced any business operations and has no revenue-generating activities outside of interest income. The company currently has three officers and has incurred significant costs related to its IPO and ongoing operations. As of the end of 2024, it had a working capital of approximately $1.42 million, which it plans to use for identifying and evaluating potential business combinations. The company is also subject to various risks, including market conditions and regulatory approvals, which could impact its ability to complete the merger with e2.

Looking ahead, Nabors Energy Transition Corp. II aims to leverage its relationship with Nabors Industries to identify and execute on investment opportunities in the energy transition sector. However, the company acknowledges the challenges posed by competition for attractive acquisition targets and the need for additional financing to support its business combination efforts. The management remains optimistic about completing the merger and advancing its mission to contribute to the global energy transition.