New Fortress Energy Inc. · NASDAQ:NFE
New Fortress Energy — Q3 2024 Earnings Presentation
40 slides from New Fortress Energy's earnings presentation, November 2024
Slide 1: Q3 2024
November 2024 Q3 2024 NewFortress energy
Slide 2: Agenda
. Executive Summary . Strategic Update . Jamaica Case Study . Refinancing Update . Financial Results . Appendix
Slide 3: Executive Summary: Quarterly financial results
Executive Summary Quarterly financial results Q3 AEBITDA of $176mm,.matching. guidance target Forecast Smm, except where noted 2023 Q1-24 = Q2.24 3-24 04-24 2024 + ELNG 1 first full cargo sold & transported to Europe Total Segment Revenue®) $2,435 $690 $428 $525 ~$475(4) ~$2.1bn4) * Q4 guidance lowe
Slide 4: Executive Summary: Notable events
Fast LNG Corporate refinancing Executive Summary Notable events In September, first full production cargo sold to 34 party and delivered to Europe Continue to make improvements to achieve stable operations and production levels above nameplate capacity Continued solid progress on construction of 2.2
Slide 5: Executive Summary
Executive Summary
Slide 6: Executive Summary
Executive Summary YUU WIV POW)? Plalll & LING COMMinal CAPCCl lO COMMENCES OPCration il Wl 2ULO9
Slide 7: Agenda
. Executive Summary . Strategic Update . Jamaica Case Study . Refinancing Update . Financial Results . Appendix
Slide 8: Strategic Update: Our strategic focus
Strategic Update Our strategic focus 16, October 2, 2024, New Fortress Energy Inc. (the “Company”) announced a series of financing transactions that upon closing are intended to increase the Company's liquidity and financial flexibility. In furtherance of these goals, the Company has begun work to i
Slide 9: Strategic Update: Three complexes
Strategic Update Three complexes | | | Lead Mitigated commodity Little to no additional Significant exposure net capex required("2) value add Highly stable infrastructure assets that offer predictable, long-term cash flows are very valuable
Slide 10: Strategic Update: Puerto Rico, Jamaica, Brazil
Puerto Rico /FLNG1 © Customers Jamaica Puerto Rico / FLNG 1 Brazil 30+ TBtu 70+ TBtu 45+ TBtu Strategic Update Jamaica Brazil 25 20 years 17 years 330 MW 9 20 years 4 years 9000 MW 15 25 years 18 years 2200 MW 10
Slide 11: Agenda
. Executive Summary . Strategic Update . Jamaica Case Study . Refinancing Update . Financial Results . Appendix 11
Slide 12: Critical assets with nearly a decade of development already completed
Jamaica Case Study Critical assets with nearly a decade of development already completed Clarendon CHP plant 2015 2016 2017 2018 2019 2020 Construction of Construction of Old Harbour Montego Bay Clarendon terminal Rombined| terminal Montego Bay CHP plant Construction of coD Clarendon CHP Restanclpow
Slide 13: Montego Bay
Montego Bay Onshore Terminal Trucking Jamaica Case Study ap Local customers
Slide 14: Investment highlights
Jamaica Case Study Investment highlights LNG terminals & power assets are integral to Jamaica's economy & energy transition 17-year avg. remaining contract duration Henry Hub indexed supply & offtake eliminates commodity price exposure to secure fixed dollar margin Investment Grade LNG supply matche
Slide 15: Truck loading manifold
a a Jamaica Case Study Truck loadirig- manifold Flare Regasification system
Slide 16: Mooring dolphins
Jamaica Case Study ey “a Mopting dolphins 16
Slide 17: 2x Siemens SGT-800
Jamaica Case Study Be 2x Siemens SGT-800,
Slide 18: LNG terminals are critical to Jamaica's energy market
Jamaica Case Study LNG terminals are critical to Jamaica's energy market Since the introduction of LNG to the country, Jamaica has experienced a drastic decrease in debt to GDP and unemployment rate and a significant increase in credit rating Before LNG After LNG Debt to GDP: Natural gas 0% _ 64% Ol
Slide 19: Jamaican assets strategically located for future growth
Provided on spot basis Terminals near U.S. Gulf Coast and Panama Canal Long duration contracts Leverage existing infrastructure with no incremental capex A Jamaica Case Study Jamaican assets strategically located for future growth New power development & conversion CCHP facility developed & permitte
Slide 20: Agenda
. Executive Summary . Strategic Update . Jamaica Case Study . Refinancing Update . Financial Results . Appendix 20
Slide 21: Refinancing Update: Corporate debt before & after
Refinancing Update Corporate debt: before & after''5) Instrument Rate"? Maturity Principal Revolver SOFR + 2.90% Apr-2026 $1,000 O TLA SOFR + 3.75% Jul-2027 $286 r) TL-B SOFR + 5.00% Oct-2028 $852 2 Senior notes due 2025 6.750% Sep-2025 $875 Ptr Senior notes due 2026 6.500% Sep-2026 $1,500 Senior no
Slide 22: Refinancing Update: Pro forma debt maturity profile
Refinancing Update Pro forma NFE debt maturity profile>) Refinancing transaction moves $875mm of bond maturities in 2025 out ~5 years to 2029 & extends ~90% of the RCF facility out 18 months to O4 2027 $3,000 $249 $2,500 $2,000 $1,500 $mm $2,729 $700 $100 $900 $852 $499 $1,000 $500 2024 2025 2026 20
Slide 23: Agenda
. Executive Summary . Strategic Update . Jamaica Case Study . Refinancing Update . Financial Results . Appendix 23
Slide 24: Financial Results: Capex update
Financial Results Capex update Capex expected to decrease significantly over the remainder of 2025+ as projects are completed & contracted EBITDA becomes fully realized Q1'24 Q2'24 Q3'24 Q4'24"17) 2024117) 2025117) Capex per CFSIX16) $mm $683 $663 $449 NA NA NA (-) Capitalized Interest) $mm ($80) ($
Slide 25: Significant increase in Adj. EBITDA drives strong quarter
Terminal Op. Margin Financial Results Significant increase in Adj. EBITDA drives strong quarter Q2 2024 | Q32024| QoQA Downstream Op. Margin ($mm) $202 $100 ($102) (+) Cargo Sale Op. Margin ($mm) $12 $85 $73 (+) Ships Op. Margin ($mm) $34 $35 $1 Total Segment Op. Margin ($mm}4) $248 $220 ($29) (-) C
Slide 26: Net Income & EPS growth from prior quarter
Net Income & EPS growth from prior quarter Financial Results Q2 2024 Q3 2024 Qo0A Mane (Loss) (attributable to Stockholders) ($89) $9 $98 EPS ($/share), Diluted ($0.44) $0.03 $0.47 Adj. Net Income (Loss)($mm)" ($85) $11 $96 Adj. EPS ($/share), Diluted(25) ($0.41) $0.05 $0.46 Funds From Operations($m
Slide 27: Agenda
. Executive Summary . Strategic Update . Jamaica Case Study . Refinancing Update . Financial Results . Appendix 27
Slide 28: Appendix: Adjusted EBITDA
Appendix Adjusted EBITDA (in thousands of U.S. dollars) FY 2023 Net income $548,876 Add: Interest expense 277,842 Add: Tax provision (benefit) 115,513 Add: Depreciation and amortization 187,324 Add: Asset impairment expense 10,958 Add: SG&A items excluded from Core SG&A 35,858 Add: Transaction and i
Slide 29: Appendix: Adjusted EBITDA
Appendix Adjusted EBITDA (in thousands of U.S. dollars) FY 2023 Total Segment Operating Margin $1,451,690 Less: Core SG&A 169,246 Less: Pro rata share of Core SG&A from unconsolidated 14 Less: Revenue recognized from deferred earnings from cargo sales Less: Deferred earnings from contracted LNG sale
Slide 30: Appendix: Adjusted EBITDA
Appendix Adjusted EBITDA (in thousands of U.S. dollars) FY'23 Q1 2024 Q2 2024 Total Selling, general and administrative $205,104 $70,754 $70,578 Core SG&A 169,246 44,112 38,190 SG&A items excluded from Core SG&A 35,858 26,642 32,388 Q3 2024 $82,388 25,723 56,665 30
Slide 31: Segment operating margin reconciliation Q3 2024
Appendix Segment operating margin reconciliation Three Months Ended September 30, 2024 Consolidation Terminals and (in thousands of $) ee Ships Total Segment Sonretrenay. Consolidated Total revenues 482,200 43,062 525,262 42,273 567,535 Cost of sales 2) 325,292 - 325,292 - 325,292 Vessel operating e
Slide 32: Segment operating margin reconciliation Q2 2024
Appendix Segment operating margin reconciliation Three Months Ended June 30, 2024 Terminals and Ships Total Segment Consolidation — Consolidated (in thousands of $) inirastrcrire and Other“) Total revenues 385,428 42,578 428,006 - 428,006 Cost of sales (2) 221,860 - 221,860 - 221,860 Vessel operatin
Slide 33: Segment operating margin reconciliation Q1 2024
Appendix Segment operating margin reconciliation Three Months Ended March 31, 2024 Consolidation Terminals and (in thousands of $) ee Ships Total Segment Consparatie Consolidated Total revenues 647,737 42,584 690,321 - 690,321 Cost of sales“) 229,117 - 229,117 - 229,117 Vessel operating expenses - 8
Slide 34: Segment operating margin reconciliation FY2023
Appendix Segment operating margin reconciliation Year Ended December 31, 2023 Consolidation Terminals and Consolidated (in thousands of $) Total Segment Infrastructure and Other (2) Total revenues 2,141,085 293,605 2,434,690 (21,394) 2,413,296 Cost of sales”) 764,828 - 764,828 112,623 877,451 Vessel
Slide 35: Adjusted Net Income and EPS
Appendix Adjusted Net Income and EPS (in thousands of U.S. dollars except for share amounts) Q2 2024 Net income (loss) attributable to stockholders (GAAP) (88,854) Non-cash impairment charges, net of tax 4,272 Adjusted net income (Non-GAAP) (84,582) Weighted-average shares outstanding - diluted 205,
Slide 36: Funds from Operations
Appendix Funds from Operations (in thousands of $ except for share amounts) Net income attributable to stockholders Depreciation/Amortization Non-cash impairment charges, net of tax Funds from operations Weighted-average shares outstanding - diluted Funds from operations / share Q2 2024 (88,854) 37,
Slide 37: 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 written comments, is referred to herein as the “Presentation.” FORWARD-LOOKING STATEMENTS: All statements contained i
Slide 38: Endnotes
Endnotes “Adjusted EBITDA’ is not 2 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 performance or liquidity derived in accordance with GA
Slide 39: Endnotes
10. iW. 12. 13. Endnotes “Adjusted EBITDA Forecast’ for the fourth quarter of 2024 and full year 2024 means our forward-looking goal for Adjusted EBITDA for the relevant period and is based on the “Illustrative Total Segment Operating Margin Goal” less illustrative Core SGA assumed to be at approxim
Slide 40: Endnotes
14, 15. 16. 17. 18. 19. 20. 2. 22. 23. 24, 25. 26. Endnotes “Capex represents Management estimates for all cash payments in such period related to new projects or projects Under Development. There can be no assurance that the Company will achieve its Capex targets and the final Capex for such period