New Fortress Energy Inc. · NASDAQ:NFE
New Fortress Energy — Q1 2019 Earnings Presentation
27 slides from New Fortress Energy's earnings presentation, May 15, 2019
Slide 1: Q1 2019 Investor Presentation
New. Fortress Energy QO1 2019 Investor Presentation May 15, 2019 g NewFortress energy
Slide 2: Q1 2019 Overview
Q1 2019 Overview Q1 2019 Results + ($7.9)mm operating margin”; ($60.3)mm net income/(loss) o ~$30mm in non-cash compensation and transaction costs © Q2 2019 begins significant ramp up of Committed volumes?) + Committed volumes and In Discussion volumes‘) increased substantially year over year o Ther
Slide 3: Illustrative Operating Margin Overview
Q1 2019 Overview Illustrative Operating Margin Overview As Committed volumes come online, revenue & Illustrative Operating Margin are expected to increase substantially Mexico coming online | $in millions $318 Jamalco CHP coming online") | Puerto Rico coming online Old Harbour volumes ramping Q1 201
Slide 4: Commercial Update
Q1 2019 Overview Commercial Update 2.6mm GPD of Committed volumes with an additional 14.5mm GPD of In Discussion volumes Industrial Transportation Data Centers Power Solutions for custom version from HFO, diesel, & pro} natural gas Conversions of ca , buses, & ships to natural gas Energy solutions t
Slide 5: Development Update
Q1 2019 Overview Development Update") NFE has 4 large projects with remaining cost of $259mm("15), which comprise over 80% of Committed volumes Overview) First Total Committed Gas\17)_— Project Cost Volumes Offshore terminal, FSRU $86mm (Floating Storage RegesifcationUnit)& 12019 0mm 771k = natural
Slide 6: Large Scale Development Update: Old Harbour Offshore Terminal
Large Scale Development Update Old Harbour Offshore Terminal Overview & Major Milestones Budget Tracker Site Total Delivered Capacity Project complete; Project Spend First Gas Volumes('®) on time & at budget $86mm Q12019 6.0mm GPD $86mm * Q42017: Construction began * Q1 2019: Delivered first gas Mar
Slide 7: Large Scale Development Update: San Juan Micro Fuel Handling Facility
Large Scale Development Update San Juan Micro Fuel Handling Facility Overview & Major Milestones Budget Tracker Site Total Expected Capacity 33% of total project spend to date Project Spend _First Gas Volumes San J $118mm —-Q3.2019-—-2.7mm GPD featay, $39mm s * 12019: Construction permits received *
Slide 8: Large Scale Development Update: Jamalco CHP Plant
Large Scale Development Update Jamalco CHP Plant Overview & Major Milestones Budget Tracker Site Total Expected 60% of total project spend to date Project Spend First Gas $195mm Q1 2020 $117mm $78mm = Q3 2018: Construction permits received Jamalco CHP Plant * 03 2018: Construction commenced in Sept.
Slide 9: Large Scale Development Update: La Paz LNG Terminal & Power Plant
Large Scale Development Update La Paz LNG Import Terminal & Power Plant Overview & Major Milestones Budget Tracker Site Total Project Expected First Capacity 23% of total project spend to date Spend Gas Volumes $132mm Q2 2020 1.0mm GPD $30mm = 4 2018: Generation license & interconnection agreement c
Slide 10: Operating Results, Liquidity, & Financing
Operating Results, Liquidity, & Financing Operating Results Increase in revenue due to added volumes and four new customer sites online Higher COGS due to increased cost of LNG Higher operation and maintenance expense driven by $2.5mm non-cash charge associated with straight lining a ship charter Hi
Slide 11: Liquidity & Financing Plan
Current Financing Liquidity & Financing Plan: 3 Main Initiatives”) Operating Results, Liquidity, & Financing Liquidity & Financing Plan Current Debt Net Debt???) Interest Rate(22) Maturity Date(?3) $500mm $499mm outstanding Terminal Financing Jamalco CHP Power Plant PA Liquefier $82mm Amount ($mm) L
Slide 12: Terminals Form the Backbone of our Valuation
Valuation Terminals Form the Backbone of our Valuation NFE is developing a global portfolio of irreplaceable LNG terminal infrastructure Terminals are Core Infrastructure... ...that Compare Favorably to Ports * NFE builds and operates 3 basic solutions * Exclusive supplier of natural gas * Currently
Slide 13: Valuation Indicates Significant Untapped Value
Valuation Valuation Indicates Significant Untapped Value Many container and liquid ports trade at 12.5x to 20x?) We believe NFE's Illustrative Annualized Operating Margin’ will grow substantially over the near-term Adding new terminals and/or converting In Discussion volumes to Committed would gener
Slide 14: Appendix
Appendix
Slide 15: Our Business is Simple
Appendix Our Business is Simple We help customers replace oil-based fuels with natural gas - the cheaper, cleaner, renewable-friendly alternative g NewFortress ener ueeT Ae gy uo" 1 See ~ I -<. ~ I “= ~ I =~ ~ i) = “~ “~ ~ > v Industrial Transportation sanen 15
Slide 16: Gas-Oil Spread Expected to Remain Wide
Appendix Gas-Oil Spread Expected to Remain Wide Natural gas is a significantly cheaper and less volatile alternative to oil 20-Yr Historical Brent and Henry Hub Prices2% ($/MMBtu) tH Brent Gas-Oil spread widens and Y~ expected to stay wide } $9/MMBtu current spread $30 $25 $00 Gas-Oil spread narrow
Slide 17: NFE Builds Infrastructure That Creates Access to LNG
Appendix NFE Builds Infrastructure That Creates Access to LNG ¥ Introduce LNG in markets that previously lacked access v Establish NFE's strong market position Power v Assets are highly utilized and become essential to energy landscape , Transportation . Bae Logistics Terminals SS NS, \ baa N. SS e
Slide 18: Operating Margin Reconciliation
Appendix Operating Margin Reconciliation Three Months Ended March 31 2018 2019 (10,913) (in thousands) $ $ (60,292) Netincome/(loss) Add: Selling, general and administrative 11,869 49,749 Depreciation and amortization 696 1,691 Interest expense 1,603 3,284 Other (income) expense, net 32 (2,575) Tax
Slide 19: Disclaimers
Appendix 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 written comments, is referred to herein as the “Presentation.” FORWARD-LOOKING STATEMENTS. Certain statement
Slide 20: Endnotes
Appendix Endnotes (1) Operating Margin Operating Margin is a non-GAAP financial measure. For a reconciliation of Operating Margin as well as an explanation of this measure, please see the Appendix to this Q1 2019 Investor Presentation (the "Presentation”). As used in this Presentation, Operating Mar
Slide 21: Endnotes
Appendix Endnotes (4) Development or In Development "Development" or “In Development’ or similar statuses means that we have taken steps and invested money to develop a facility, including procuring land rights and entitlements, negotiating or signing construction contracts, and undertaking active e
Slide 22: Endnotes
Appendix Endnotes (7) Average GPD As used in this presentation, Average GPD or Average Gallons Per Day refers to the average number of LNG Gallons sold per calendar day over the period indicated. (8) Opera nal, In Service or Completed “Operational”, “In Service" or "Completed" with respect to a part
Slide 23: Endnotes
Appendix Endnotes (10) Because we are not currently profitable, we are providing to you the Illustrative Operating Margins that we aspire to achieve. The Illustrative Operating Margin, as presented on a run rate basis, represents the product of (1) the volumes of LNG we aspire to be able to produce
Slide 24: Endnotes
Appendix Endnotes (13) NFE is currently In Discussion with potential Data Center customers but has not yet executed any binding commitments. NFE views Data Centers as a meaningful potential new customer base, but we cannot assure you that we will be able to secure new committed customers or the volu
Slide 25: Endnotes
Appendix Endnotes (19) Spend to Date or Project Costs to Date As used in this Presentation, the "Spend to Date" or “Project Cost” represents our estimate of the project cost as at the referenced date for each of these development projects, or as at May 13, 2019 if no date is given, and includes our
Slide 26: Endnotes
Appendix Endnotes (25) The trading multiples used are based on trading multiples applied to other generally comparable industry participants, including public and private participants. Management believes these multiples represent multiples that may reasonably be applied to the Operating Margin we m
Slide 27: Endnotes
Appendix Endnotes (27) Illustrative Share Price The Illustrative Share Price is intended to provide context for the potential Share Price that could be obtained if we are able to execute our business plan and our assumptions prove correct both with respect to our Company performance as well as the a