New Fortress Energy Inc. · NASDAQ:NFE
New Fortress Energy — Q1 2020 Earnings Presentation
23 slides from New Fortress Energy's earnings presentation, May 2020
Slide 1: Q1 2020 Investor Presentation
May 2020 Q1 2020 nvestor Presentation g NewFortress energy
Slide 2: We want to light the world
We want to light the world. Billions of people around the planet lack access to affordable power. Electricity should not be a luxury good. Our mission is to provide capital, expertise and vision to address this problem while also making positive and meaningful impacts on communities and the environm
Slide 3: Agenda
1. Executive Summary 2. Terminal Operations 3. Financial Performance 4. Appendix
Slide 4: Executive Summary: Highlights
Executive Summary Highlights Record volumes sold: * January: ~700k gpd * February: ~730k gpd * March: ~830k gpd * April: ~1.0mm gpd * Goal of 1.5mm - 2.5mm gpd for remainder of 2020 Montego Bay, Old Harbour and San Juan are Complete and fully Operational”) New business pipeline is very robust COVID
Slide 5: Volumes Continue to Grow
Executive Summary Volumes Continue to Grow * Our goal is for volumes to average 1.5mm - 2.5mm gpd for remainder of 2020 * Current pipeline could add meaningfully to this goal Illustrative Operating Margin 3,500k (2) 3,000k Goal(2) ($mm) 3,000k Gallons per Per Quarter Annualized’) 2,500k Day (mm) 1.0
Slide 6: COVID-19 Impact
Executive Summary COVID-19 Impact * Customers still using significant volumes of gas & power * Oil prices have collapsed * Total margin reductions have been ~20% + Natural gas still offers a compelling alternative mv LNG“) vs. Diesel (5): LNG was more affordable than diesel for all but 15 days in th
Slide 7: New Business is Robust
Short listed in Puerto Rico temporary power RFP Travel limits are challenging, but discussions are still very active Terminals are the “portals” for us to bring LNG and power to countries around the world Our focus is on these 10 regions In particular, we are currently active in these 5 regions Exec
Slide 8: Agenda
1. Executive Summary 2. Terminal Operations 3. Financial Performance 4. Appendix
Slide 9: Terminals Are Fully Complete
Executive Summary Terminals Are Fully Complete San Juan, Puerto Rico LNG Facility Completed in March 2020 Units 5 & 6 are fully converted and utilizing natural gas
Slide 10: Executing Our Puerto Rico Strategy
Executive Summary Executing Our Puerto Rico Strategy [ NFE is executing its strategy to gasify Puerto Rico and facilitate efficient generation for the island | First Gas Achieved!®) Marine Systems Operational Truck Loading Completed Significant Capacity() Y Averaged over 620k gpd last week Vv 3 succ
Slide 11: Operational Asset Performance: Health, Safety & Environment
Health, Safety, & Environment (“HSE”) Availability Reliability LNG Truck & Ship Transfers Terminal Operations Operational Asset Performance Achieved “three zeros” for HSE incidents for operating assets\1 Y Zero (0) days away from work incidents Y Zero (0) recordables for health or process safety ¥ Z
Slide 12: Agenda
1. Executive Summary 2. Terminal Operations 3. Financial Performance 4. Appendix 12
Slide 13: Financial Performance: Operating Results
Financial Performance Financial Performance Operating Results Financial Metrics Volumes: Increased 217k gpd or 40% from O4 largely due to Jamalco CHP Plant coming online Revenue: Increased by $4.7mm from Q4 driven by volumes sold, but offset by a 22% decrease in average Henry Hub for the quarter alo
Slide 14: Financial Objectives
Financial Performance Financial Objectives We are focused on optimizing our primary cost centers | 4 Key Areas of Opportunity Healthy Balance Sheet OR OR ORC) Cash SG&A: $80mm/year (current run-rate) Shipping: $85mm/year (current run-rate) Interest Expense: $85mm/year (current run-rate) Gas: over 60
Slide 15: Illustrative Operating Margin Goal from Committed Volumes
Financial Performance Illustrative Operating Margin Goal''®) from Committed Volumes('?) As Committed Volumes become Operational, revenue & Illustrative Operating Margin Goal are expected to increase substantially Illustrative Annualized Operating Margin Goal $500 $464 $400 $381 $387 $300 $200 $100 .
Slide 16: Agenda
1. Executive Summary 2. Terminal Operations 3. Financial Performance 4. Appendix 16
Slide 17: Operating Margin Reconciliation
Appendix Operating Margin Reconciliation (in thousands) Q1-19 -19 Q1-20 Net income/(loss) $ (60,292) $ (38,370) $ (60,055) Add: Selling, general and administrative 49,749 30,091 28,370 Loss on mitigation sale . 5,280 208 Depreciation and amortization 1,691 2,209 5,254 Interest expense 3,284 4,955, 1
Slide 18: COVID-19 Update
Appendix COVID-19 Update NFE is committed to providing essential services through the pandemic Our Response Partner with local organizations to deliver food & essentials to Jamaicans every BOO _ twonects ih Food for the Poor Jamaican healthcare 240 workers with Ministry of Health and Wellness Puerto
Slide 19: 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. Certain statements regardi
Slide 20: Endnotes
Endnotes (1) “Commissioned”, "Operational", “In Operations", “Operating”, “Completed”, “Completion”, “Online” or “In Service" with respect to a particular project means we expect gas to be made available within thirty (30) days, gas has been made available to the relevant project, or that the releva
Slide 21: Endnotes
Endnotes (4) "LNG" is an illustrative LNG fuel price for customers of at least 100 MW in the Caribbean of 115% of Henry Hub plus $6.00 per MMBtu. This information was from Bloomberg as of May 4, 2020. This price is not meant to include any infrastructure or capacity charges, and our customers’ and p
Slide 22: Endnotes
Endnotes (12) “Reliability” means the percentage of time the facility is operable less planned or unplanned downtime for our Montego Bay Facility, Miami Facility and Old Harbour Facility during the first quarter of 2020. There can be no assurance that other facilities, future facilities or the same
Slide 23: Endnotes
Endnotes These costs do not include expenses and income that are required by GAAP to be recorded on our financial statements, including the return of, or return on, capital expenditures for the applicable project. Our current costs per MMBtu are higher than the costs we would need to achieve our Ill