SCHEDULE: NET Power Inc. Sees Significant Ownership Shift as SK Inc. Exits Key Holdings

SK Inc. has divested its interests in three entities holding stakes in NET Power Inc., leading to a new beneficial ownership structure primarily involving Damian and Cynda Beauchamp and 8RCH, LLC, who now collectively control 25.6% of the Class A Common Stock.

Summary

• SK Inc. sold its 100% ownership in Tillandsia, Inc., Areca, Inc., and Chamaedorea, Inc. on July 30, 2025.
• Damian Beauchamp and 8RCH, LLC each acquired 50% of these three entities.
• Following this sale, SK Inc. no longer beneficially owns 5% or more of NET Power Inc.'s Class A Common Stock and is no longer a Reporting Person.
• Damian Beauchamp, Cynda Beauchamp, and 8RCH, LLC are now deemed beneficial owners of 26,729,880 shares of Class A Common Stock, representing 25.6% of the class.
• This beneficial ownership stems from 26,729,880 Class A Units of NET Power Operations LLC (Opco Units) held by NPEH, LLC, which are exchangeable for Class A Common Stock on a one-for-one basis.
• The percentage is calculated based on 77,726,852 Class A Common Stock shares issued and outstanding as of May 9, 2025, plus the 26,729,880 shares issuable upon exchange of Opco Units.

Sentiment

Score: 6

Explanation: The filing reports a significant change in beneficial ownership, consolidating control among key insiders. While not directly impacting operations, it clarifies the ownership structure and removes a major external investor (SK Inc.), which could be viewed neutrally to slightly positive for long-term stability if the new controlling parties are highly aligned with the company's strategic vision. No negative operational or financial news is present.

Positives

• Consolidation of a significant beneficial ownership stake (25.6%) under Damian Beauchamp, Cynda Beauchamp, and 8RCH, LLC, who are closely tied to 8 Rivers Capital (manager of NPEH), may lead to more stable and aligned long-term strategic interests for NET Power Inc.

Negatives

• The exit of SK Inc. as a beneficial owner, while replaced by other parties, removes a previously significant external institutional investor from the ownership structure.

Risks

• The complexity of the ownership structure involving multiple entities (Tillandsia, Areca, Chamaedorea, 8 Rivers Capital, NPEH, 8RCH) could pose transparency challenges for external investors.

Future Outlook

The filing does not contain explicit forward-looking statements or guidance regarding the company's operations or financial performance. It focuses solely on changes in beneficial ownership.

Industry Context

This filing is a routine disclosure of a change in beneficial ownership, specifically a shift in control over entities that hold a significant stake in NET Power Inc. It does not provide information directly related to broader industry trends or competitive landscape, other than the fact that a major investor (SK Inc.) has exited its indirect stake, and existing insiders have consolidated their control.

Corporate Governance

Related Party Transactions

• The sale of interests in Tillandsia, Inc., Areca, Inc., and Chamaedorea, Inc. by SK Inc. to Damian Beauchamp and 8RCH, LLC constitutes a related party transaction, as Damian Beauchamp is the Chief Executive Officer of 8 Rivers Capital, LLC, which manages NPEH, LLC, a significant beneficial owner of NET Power Inc.

Stakeholder Impact

• Shareholders: The change in beneficial ownership clarifies who controls a significant block of shares, potentially leading to more stable long-term strategic alignment if the new controlling parties are committed. The exit of SK Inc. removes a large institutional investor, which could be viewed differently by various investors.
• Management: The consolidation of control by the Beauchamps and 8RCH, LLC, who are closely tied to 8 Rivers Capital (manager of NPEH), suggests continued alignment with the existing strategic direction.

Next Steps

• Continued operation of NET Power Inc. under its current management and strategic direction.
• Potential future exchanges of Opco Units for Class A Common Stock by NPEH.

Key Dates

Recommendation

This Schedule 13D filing primarily details a change in beneficial ownership structure, with SK Inc. divesting its indirect stake and control consolidating among Damian Beauchamp, Cynda Beauchamp, and 8RCH, LLC. While this clarifies the ownership landscape and potentially aligns long-term interests, it does not provide new operational or financial information that would warrant a change in investment thesis. The company's underlying business fundamentals and future prospects remain the primary drivers for investment decisions, and this filing does not alter them. Therefore, a 'hold' recommendation is appropriate as investors should await further operational updates.

Keywords

NET Power Inc., Schedule 13D, Beneficial Ownership, SK Inc., Damian Beauchamp, Cynda Beauchamp, 8RCH LLC, NPEH LLC, 8 Rivers Capital LLC, Class A Common Stock, Opco Units, Ownership Change, SEC Filing, Corporate Governance