New Fortress Energy Inc. · NASDAQ:NFE
New Fortress Energy — Investor Presentation (October 2024)
48 slides from New Fortress Energy's investor presentation, Oct 1, 2024
Slide 1: NFE Brazil Confidential Info Memo, May 2024
Eg NewFortress energy NFE Brazi! Confidential Info Memo May 2024
Slide 2: Definitions and acronyms
Investment Opportunity: NFE Brazil Definitions and acronyms Alunorte: Norsk Hydro Alumina Refinery BNDES: Brazilian Development Bank CELBA: Barcarena Power Plant CCEE: Chamber of Electric Energy Commercialization CPI: Consumer Price Index COD: Commercial Operation Date EPC: Engineering, Procurement,
Slide 3: Agenda: NFE Brazil Opportunity
4. NFE Brazil Opportunity 2. Brazil Macroeconomic and Power Outlook 3. NFE Brazil Platform 4. Growth Opportunities 5. NFE in Brazil
Slide 4: NFE Brazil Opportunity
NFE Brazil Opportunity NFE Brazil is an integrated portfolio of LNG terminals and downstream gas & power customers... Terminals entered service in March 2024 & are essential infrastructure to serve Brazil's large & growing energy needs Barcarena, NFE * 2.2 GW of existing power ~~ + Contracted for wt
Slide 5: Long-term contracted cash-flows and near-term growth
NFE Brazil Opportunity ...with significant long-term, contracted cash-flows and near-term growth Our LNG infrastructure assets are positioned to provide gas & power to growing & underserved markets Brazil 7) Existing contracts with (2) 2024 growth plan 3) Differentiated platform f ~$470mm EBITDA23:4
Slide 6: Existing contracts + near term growth = $1bn+ of EBITDA
NFE Brazil Opportunity Existing contracts + near term growth = $1bn+ of EBITDA2 2026 Run Rate4 ~$470mm 2,4,7,10 Illustrative run-rate EBIT ~$200mm Increase in LNG volumes. ~$400mm under long-term gas contracts + Barcarena satellite terminal development NFE targeting 2.5 GW+ of long-term contracts in
Slide 7: Current contracts: 18-year weighted avg. duration of stable cash flows
@ NFE Brazil Opportunity Current contracts -18-year> weighted avg. duration of stable cash flows Ramp up to ~$470mm 9 of 2026 run-rate EBITDA Smm $618 $396 soe | |__| 2025 2026 2027 FSRU & Run-Rate Gas & Power Margin Terminal Opex'’ _'28 Contracted EBITDA?®*" TGS Baseload Gas Supply = Alunorte Gas S
Slide 8: 2024 power auctions in Brazil
© NFE Brazil Opportunity 2024 power auctions in Brazil TGS terminal positioned to win 2.5 GW+ in auctions as both gas supplier to existing plants & as an owner of new power projects 2024 summer auctions The opportunity Power assets without firm gas supply TAG pipeline Capacity power auctions TGS is
Slide 9: Revenues driven by fixed capacity payments and terminal fees
NFE Brazil Opportunity mM Revenues driven by fixed capacity payments from new-build power plants, fixed terminal fees for gas supply to existing 3 party power assets, and upside on power plant dispatch Expected terms Long term 15-year contracts NFE Targeting 2.5 GW+ araanhalaic Fixed and inflation l
Slide 10: Organic growth from additional gas supply & satellite terminals
© NFE Brazil Opportunity Organic growth from additional gas supply & “satellite” terminals expected to add ~$200mm in incremental EBITDA? through 2026 Existing terminal capacity of 12 MTPA, 8 MTPA available after accounting for existing contracts Barcarena y Santa Catarina ( - = \ Satellite Terminal
Slide 11: Targeting near-term growth via 2024 power auctions & gas supply
NFE Brazil Opportunity Targeting near-term growth via 2024 power auctions & gas supply Forecasted EBITDA? bi up from contracted-power gas supply revenues Secure 2.5 GW+ in 2024 power $mm C1) Exisling power gas copiers auctions, ramping up by 2028 Incremental gas supply opportunities benefit by lever
Slide 12: Current contracts & expected growth lead to ~$1.1bn EBITDA by 2028
NFE Brazil Opportunity Current contracts & expected growth lead to ~$1.1bn EBITDA? by 2028 Power capex expected to be financed in competitive local market 2025 2026 2027 2028 oe Barcarena: Contracted $163 $235 $380 $400 6 @ (+) Barcarena: Growth $37 $98 $118 $160 C1} TGS: Contracted $131 $136 $142 $
Slide 13: Investment highlights summary
NFE Brazil Opportunity Investment highlights summary Our LNG terminals & power assets are strategically located to provide gas & power to growing & underserved markets in the North & South regions of Brazil Creation of unique gas platform in Unique LNG Long term Several growth infrastructure contrac
Slide 14: Agenda: Brazil Macroeconomic and Power Outlook
1. NFE Brazil Opportunity 2. Brazil Macroeconomic and Power Outlook 3. NFE Brazil Platform 4. Growth Opportunities 5. NFE in Brazil 14
Slide 15: Brazil offers one of the best LNG & power opportunities globally
Brazil Macroeconomic and Power Outlook Brazil offers one of the best LNG & power opportunities globally & at scale Need for new thermal power to balance the grid & regional gas constraints create opportunity Brazil has a growing need for new gas and pow Need for new power capacity Robust local capit
Slide 16: Growing trade surplus & economic growth
) rade Balance (SI 2014 Brazil Macroeconomic and Power Outlook Growing trade surplus & economic growth 2019 ©2020 © 2021 +«« 2022 | 2023 STRICTLY CONFIDENTIAL a 16
Slide 17: Trade surplus leads to stable FX and rates
lation and Central Bank Rate % Brazil Macroeconomic and Power Outlook Trade surplus leads to stable FX and rates 16.0% 6.00% USD/BRL FX -Right axis ——Inflation - Left axis Central Bank Rage - Left axis 140% F 5.50 120% S Sen 5.00% 10.0% = =— -—— r a =. currency is 8.0% 450x 60% so strengthen “ , ee
Slide 18: • – • • 2.19% 0.18% 0.16% 0.76% 0.07% 0.33%
• – • • 175 32 18 15 13 6 5 3 2.19% 0.18% 0.16% 0.76% 0.07% 0.33%
Slide 19: Brazil energy grid is 82% seasonal and intermittent capacity
Brazil Macroeconomic and Power Outlook Brazil energy grid is 82% seasonal and intermittent capacity Power generation installed capacity (GW) 1s Baas and S77 3d 69 4th e 335 Sh (283 A) Brazil's electricity demand growing +4% per year Energy supply struggling to meet demand in fast-growing Brazil Braz
Slide 20: Brazil's power price follows volatile hydrological conditions
Brazil Macroeconomic and Power Outlook Brazil's power price follows volatile hydrological conditions Reliance on hydro generation results in critical shortages and unpredictable prices 2021 hydro crisis was the most severe in 90 years Hydro storage accounts for less than 30 days of consumption 4 Sou
Slide 21: Massive capacity additions required to maintain energy supply
Brazil Macroeconomic and Power Outlook Massive capacity additions required to maintain energy supply Brazil's Ministry of Energy: +20 GW of firm power required to keep system within 5% grid reserve!® ct.8.GW-+.capacity.auction., new & existing thermal power plants 30 Thermal Power Retirements (Cumul
Slide 22: Thermal capacity build-up and dispatch: key to energy security
Brazil Macroeconomic and Power Outlook Thermal capacity build-up and dispatch: key to Brazil's energy security Brazil’s power matrix is highly dependent on in ‘14 &'21 driven by significant droughts 120 Max demand 100% 102 Gw?" 100 80% 80 ‘Avg. demand 3 69 GW? § 60% 3 g 3 3 B60 z cS Be 40% 6 40 20%
Slide 23: LNG terminals are the scarce resource for power in Brazil
Brazil Macroeconomic and Power Outlook LNG terminals are the scarce resource for power in Brazil providing supply & flexibility Availability of natural gas limits Brazil's ability to add more dispatchable power capacity Historical demand: ~1,100 TBtu/yr Projected demand: up to ~1,500 TBtu/yr Neco —
Slide 24: Bolivian imports are 1/3 of gas supply today & declining
Brazil Macroeconomic and Power Outlook Bolivian imports are 1/3 of gas supply today & declining Any increase in Brazil’s domestic gas supply is offset by expected Bolivian decline to zero by 2030 Bolivia‘s.gas.exports.to Brazil reduced 50% from.historicaLlevels a e 2013 2014 2016 2017 2018 2019 2020
Slide 25: LNG terminals are the solution to grow power capacity
Brazil Macroeconomic and Power Outlook LNG terminals are the solution to grow power capacity LNG import terminals are key to meet growing baseload demand plus the gas required for additional thermal capacity B 1 NFE Z jarcarena, A Z_ Sergipe, 7 ~#8 eneva (not connected to pipeline system) __. Bahia,
Slide 26: Brazil power auctions: proven mechanism to acquire capacity
Brazil Macroeconomic and Power Outlook Brazil power auctions: Proven mechanism to acquire necessary capacity Bankable solution at scale creates globally unique investment opportunity Historically,auctions in Brazil have mostly added intermittent.capacity GWs Awarded in Auctions Summary: + 112 GWs 20
Slide 27: Agenda: NFE Brazil Platform
1. NFE Brazil Opportunity 2. Brazil Macroeconomic and Power Outlook 3. NFE Brazil Platform 4. Growth Opportunities 5. NFE in Brazil 27
Slide 28: NFE Brazil current assets
NFE Brazil Platform NFE Brazil current assets LNG terminals 2 out of only 6 LNG terminals in Brazil 12 MTPA combined capacity (~36% of total LNG terminal capacity in Brazil) 46 TBtu gas sales agreements with Alunorte alumina refinery & CELBA power plant Strategically located in gas constrained regio
Slide 29: Barcarena LNG terminal
NFE Brazil Platform Barcarena LNG terminal Alunorte CELBA Power Plant Portocem Power Plant 30 TBtu/yr ~60% complete NTP Apr-24 Started Mar 2024 for 15 years COD Jul 2025 for 25 years COD Q3 2026 for 15 years ESRU._terminal. capacity: ESRU.maximum.send.out: 6 MTPA | 300 TBtu 1,000 mmscf/d
Slide 30: Barcarena terminal: contracts and infrastructure
NFE Brazil Platform 19. located in state of Para aie Strategically located a t I ni nery, largest alumina refinery in the world owned 4 Barcarena LNG by Norsk Hydro & Glencore . terminal n through fuel switching & Seana Geclinieg) high-priced gas supply Contracts. & infrastructure J: “Energos Celsiu
Slide 31: Barcarena power assets: construction & financing update
NFE Brazil Platform Barcarena power assets: Construction & financing update Updates on construction Financing strategy CELBA Power Plant ¥ Engineering 97% ~60% ¥ Procurement 85% ¥ Civil Cons. 70% SWS v Electromech. 15% Fully Financed via BNDES STRICTLY CONFIDENTIAL Portocem Power Plant PPA acquired
Slide 32: TGS LNG Terminal
NFE Brazil Platform TGS LNG Terminal o ESRU.terminal.capacity: 6 MTPA | 300 TBtu 500 mmscf/d STRICTLY CONFIDENTIAL
Slide 33: TGS terminal will supply stranded power assets in south Brazil
NFE Brazil Platform TGS terminal will supply stranded power assets in south Brazil amidst declining gas supply from Bolivia IGS NTS pipeline i i i 2.7 MTPA flows Brazil + 6MTPALNG import terminal located in the / a sos an chic gas state of Santa Catarina, Brazil i L~ * Connected to over 3.5 GW of ex
Slide 34: Key commercial agreements
NFE Brazil Platform Key commercial agreements Counterparty Credit Rating Hydro Baa3 / BBB 15-yr GSA o peeee od g = B 9LDCs Fp S a ae a 22/88-/88 S 300 Tatu 25-yr PPA (Brazil sovereign) G FSRU Chater a Agreement Portocem ccee Ba2/BB-/BB 15-yr PPA (Brazil sovereign) TBG Pipeline Balancing and ‘System
Slide 35: Protected against inflation as BRL contracts are adjusted by IPCA
NFE Brazil Platform Protected against inflation as BRL contracts are adjusted by IPCA % Power Assets Ramp-up : ; 1Gas mPower BRL mUSD 32% 29% 46% 44% 73% Uke 85% 86% 100% 2024 2025 2026 2027 2028 2024 2025 2026 2027 2028 35 STRICTLY CONFIDENTIAL
Slide 36: Agenda: Growth Opportunities
1. NFE Brazil Opportunity 2. Brazil Macroeconomic and Power Outlook 3. NFE Brazil Platform 4. Growth Opportunities 5. NFE in Brazil 36
Slide 37: Growth opportunities
Growth Opportunities Growth opportunities Cay Baseload supply Evaluate equity raise Target >2.5 GW in Upsize Alunorte gas upcoming 2024 supply contract by capacity auctions 30 Tbtu fiexiblesopply Supply 1 GW+ to Supply gas to satellite terminals in industrial consumers Fi upcoming 2024 in the north
Slide 38: Capacity power auctions announced March 8th
Growth Opportunities 2 auctions announced March 8th for thermal power capacity, expect significant further auctions to satisfy growing demand Capacity Power Auctions Ca ~$192/kW = 3 uct a go August 30¢, 2024 8 7 & 15 Years 2027 & 2028 Gas F ndex JKM or © 2023 2024 2025 2026 2027 2028 2029 2030 2031
Slide 39: The opportunity and our 2024 plan
Growth Opportunities The.opportunity s : 8 GW+ eo — NTS pi sunen t 178 Mw e elles Se aon >3.5 GW existing power without firm supply 300 TBtu+ existing baseload gas demand STRICTLY CONFIDENTIAL Our.2024 plan 1. Contract rin 2024 auctions 2. Sign with baseload customers 39
Slide 40: Barcarena growth plan: Amazon LNG hub
Growth Opportunities Barcarena growth plan: Amazon LNG hub Development of satellite terminals & new power in neighboring states Barcarena Terminal Barcarena.growthplan Macapé - Satellite Terminal Le free capacity at terminal to develop other regional gas + power sites Macapa Power Plant 14 7Btu Smal
Slide 41: Agenda: NFE in Brazil
. NFE Brazil Opportunity Brazil Macroeconomic and Power Outlook NFE Brazil Platform Growth Opportunities NEE in Brazil 4
Slide 42: NFE in Brazil
NFE in Brazil NFE entered Brazil with $3.1bn Hygo acquisition in 2021, now operates 2 LNG import terminals & constructing >2.3GW of new power NEE_built.& operated assets. CELBA 630MW Power Plant Barcarena NFE acquires Hygo (formerly Golar Power) NFE construction and Dominant Brazil for $3.1bn develo
Slide 43: Years of development & construction create an advantage
NFE in Brazil 7 years of development & construction create an advantage for existing infrastructure LNG terminals are difficult to replicate; power capacity needs are now Golar begins development... ...until NFE acquires LNG terminal & infrastructure assets in 2 2017 2018 2019 2020 2021 2022 2023 20
Slide 44: Critical energy infrastructure coming online in the near term
NFE in Brazil Critical energy infrastructure coming online in the near term 2024 2025 2026 2027 mm Operational Terminal CetBAr ower Construction ————————— $$$ —$> Operational SS Jj j+S> Portocem Power . ee ei Ce ee 44 Operation! => STRICTLY CONFIDENTIAL
Slide 45: Disclaimers
Disclaimers IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or writen comments, is referred to herein as the “Presentation” FORWARD.LOOKING STATEMENTS: All statements contained in
Slide 46: Endnotes
Endnotes Assumes 100% dispatch, -BITDA" means Adjusted EBITDA. “Adjusted EBITDA is not s measurement of financial performance under GAAP and should not be considered in isolation or as an alternative to income from operations, net income, cash flow from operating activities or any other measure of p
Slide 47: Endnotes
Endnotes ‘Growth EBITDA" or “Growth Run Rate EBITDA" Represents management estimates for the additional Adjusted EBITDA growth related to strategic initiatives of the Company for the periods presented. There can be no assurance that the Company will achieve the Growth Forecast and any Growth may be
Slide 48: Endnotes
27 28, 29. 30. 3 For the FX exposure calculations, considers power fixed revenues as BRL, power gas margin when dispatched as USD and gas contracts as USD. Endnotes Capacity payment based on $175/kW expected in 2H 2024 Capacity Auctions, inflated to operations start date in 2028. Auction bidders can
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