New Fortress Energy Inc. · NASDAQ:NFE
New Fortress Energy — Q4 2023 Earnings Presentation
48 slides from New Fortress Energy's earnings presentation, February 2024
Slide 1: Q4 2023 Investor Presentation
February 2024 O4 2023 NewFortress energy
Slide 2: Agenda
. Executive Summary . Customers & Terminals Update . FLNG Update . Financial Results . Appendix
Slide 3: 2023 was a transformative year for NFE
Executive Summary 2023 was a transformative year for NFE Illustrative Goal?) : $mm FY'21 FY'22 FY'23 FY'24 | Q1-23 Q2-23 Q3-23 Q4-23 Total Segment i Revenuel’? $1,696 $2,613, $2,435 ~$3.8bn'°) $601 $561 $514 | $758 Profitfrom Cargo g574 $691 $443 ~$304 | $251 $191 $1 Sales | Adj. EBITDA) $605 $1,071
Slide 4: Operational Highlights
Executive Summary Operational Highlights Barcarena & Santa Catarina terminals are complete'>) Agreed to acquire 1.6 GW PPA from Ceiba Energy and transfer to Barcarena'’®) Completed installation of FEMA San Juan emergency power (200 MW) Completed installation of FEMA Palo Seco emergency power (150 MW
Slide 5: Financial Highlights
Executive Summary Financial Highlights 2023 was.a.transformative year for NFE as we evolved from a development company to an operating company EPS & Funds From Operations!) per share have more.than.doubled. from 2022 to 2023 & our goal is to nearly double. them.again this year $/share EPS (diluted)
Slide 6: We are a fully integrated power & LNG company
Executive Summary We are a fully integrated power & LNG company Our terminals are a significant & sustainable competitive advantage We own, manage or provide fuel (natural gas) to 30 plants with total capacity of ~8.7 GW'26) Country Own Manage _ Fuel Supply Total MW Jamaica 150 - 339 489 Puerto Rico
Slide 7: Agenda
. Executive Summary . Customers & Terminals Update . FLNG Update . Financial Results . Appendix
Slide 8: Puerto Rico
Customers & Terminals Update Puerto Rico
Slide 9: NFE first came to Puerto Rico after Hurricanes Irma & Maria
Customers & Terminals Update NFE first came to Puerto Rico after Hurricanes Irma & Maria devastated the island & left millions without power critically damaged Puerto Rico's power grid ped a State-o a . ai to Support ruerto nico Tor the long-term 2017 2017 . Acquired land & began developing our LNG
Slide 10: We continue to invest greatly in cheaper, more reliable power for PR
Customers & Terminals Update We continue to invest greatly in cheaper, more reliable power for PR 3, we expanded our presence in Puerto Rico through 2 major development Selected to build for Selected by P3 to FEMA across two sites under 24-month contracts RFP was released in 2021 as part of larger e
Slide 11: Majority of Puerto Rico's generation assets managed by NFE or GeneraPR
Customers & Terminals Update With these developments, the majority of Puerto Rico's generation assets are now managed by NFE or our subsidiary GeneraPR'2®) However, currently, Puerto Rico’s power grid is heavily reliant on diesel/HFO & suffers from inefficiency & low reliability PREPA thermal.genera
Slide 12: NFE engaging with FEMA, US Army Corps & Puerto Rican government
Customers & Terminals Update To further these goals, NFE is engaging with FEMA, US Army Corps & the Puerto Rican government on a broad range of projects Projects include bringing advanced generation & storage technology to Puerto Rico Examples.of.current.initiatives \ | Battery energy storage system
Slide 13: Brazil
Customers & Terminals Update Brazil 13
Slide 14: Barcarena terminal is now operational
Customers & Terminals Update Barcarena terminal is now operational5) COD: Q1 2024(15) Alunorte (Norsk Hydro) CELBA Power Plant 29.5 TBtu/yr ~50% complete Starting Mar 2024 for 15 years COD July 202520)for 25 years COD July 202620 for 15 years ESRU terminal capacity: ESRU maximum send out: Terminal c
Slide 15: COD: Q1 2024
COD: Q1 2024115) OO TB O00 qd $100 e al & pipe
Slide 16: Brazil has a growing need for new gas and power
Brazil has a growing need for new gas and power... Customers & Terminals Update 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 Robust local ——J Need for new -— Growing demand
Slide 17: Hydroelectric power accounts for 60% of Brazil's current power system
Customers & Terminals Update Hydroelectric power accounts for 60% of Brazil's current power system Brazil's power system is heavily dependent on rainfall 25% thermal Brazil's power sourcest) 15% other renewables Hydroelectric works when it rains... VY Low-cost é (i) Source: ANEEL (ii) Chart Source:
Slide 18: Significant near-term opportunities in Brazil
Customers & Terminals Update 2 significant near-term opportunities in Brazil Regional constraints on gas supply & new power auctions will drive incremental growth in Brazil L Regional gas supply constraints amidst increasing demand 2. Brazil forecasts need for 20 GW of new, dispatchable power by 203
Slide 19: Current contracts are operational & growing over next years
Customers & Terminals Update Current contracts are operational & growing over next 2 years Existing.contracts becoming operational Nearterm growth Existing contracts for 30 TBtu, 2.2 GW power & 18-yr avg. duration Leveraging existing infrastructure to address Brazil's two main problems 2024 Contract
Slide 20: NFE to acquire 1.6 GW, 15-yr power contract at Barcarena
Customers & Terminals Update NFE to acquire 1.6 GW, 15-yr power contract to be constructed at Barcarena L ion-highligt + Announced acquisition of ~1.6 GW PPA in Brazil from Ceiba Energy, a portfolio company of Denham Capital in Q4 2023(14) * PPA provides NFE high-quality contracted cash flows ° 15-y
Slide 21: Agenda
. Executive Summary . Customers & Terminals Update . FLNG Update . Financial Results . Appendix 21
Slide 22: FLNG Update
FLNG Update We launched our FLNG solution in Jan. 2021 We wanted to create a solution that’s quick to market to secure our own supply for our downstream customers Late 2020, we needeckto.seme.customers with our LNG portfolio, but... ULTRA Historically, the LNG production market has been dominated by
Slide 23: FLNG Update
FLNG Update Given our time requirements, we developed our FLNG solution in the fastest way possible What did we do? & Built “modules” Executed early on long lead Resulting in at Kiewit shipyard MSELUEWEM MSs E esc better construction on speed to market Baker S3 * Easter <P tiger SIEMENS (2 years vs
Slide 24: FLNG Update
FLNG Update Days.away-from-first LNG Will be fastest large-scale LNG project ever developed March 2021 March 2024 24
Slide 25: FLNG Update
FLNG Update Q3 2025'20) Q1 2026!°)
Slide 26: Fast LNG facilities are fully subscribed
FLNG Update Our Fast LNG facilities are fully subscribed'$® with supplying our downstream demand ELNG facilities 1.& 2 provide significant volumes to. downstream.customers Expected volumes from FTA countries ~70TBtu + ~70TBtu = ~140 TBtu a = FLNG FLNG to our downstream < =| facility 1 facility 2 cus
Slide 27: Agenda
. Executive Summary . Customers & Terminals Update . FLNG Update . Financial Results . Appendix 27
Slide 28: Record setting $1.3bn Adjusted EBITDA for FY 2023
Financial Results Record setting $1.3bn Adjusted EBITDA for FY 2023 Q4 2022 | Q4 2023 YoY A YE 2022 YE 2023 YoY A Terminal Downstr. Op. Margin ($mm) $63 $372 $309 $205 $767 $562 op. margin (+) Cargo Sale Op. Margin ($mm) $133 $1 ($132) $691 $443 ($248) * $1.3bn of Adj. EBITDA) for FY (+) Ships Op. M
Slide 29: Robust free cash flow generation
Financial Results Robust free cash flow generation $mm Funds From Operations("") ~$1.25bn (-) Net Capex'25) ~($250mm) NFE has transitioned into a mature company with growing & stable cash flows to support a disciplined financial policy 29
Slide 30: Agenda
. Executive Summary . Customers & Terminals Update . FLNG Update . Financial Results . Appendix 30
Slide 31: FSRUs
FSRUs in fleet 7 Celsius, Winter, Gallant, Freeze, Eskimo, Igloo, NR Satu FSRU terminals 4 Barcarena, Jamaica, Santa Catarina, Puerto Rico Appendix NR Satu, Igloo, Eskimo (currently chartered to 3° parties) Mexico, Altamira Nicaragua @ Dedicated FsRU Dedicated Storage > Puerto Rico Old Harbour, Jama
Slide 32: Adjusted EBITDA reconciliation
(in thousands of U.S. dollars) Net income Add: Interest expense Add: Tax provision (benefit) Add: Depreciation and amortization Add: Asset impairment expense Add: SG&A items excluded from Core SG&A Add: Transaction and integration costs Add: Other (income) expense, net Add: Changes in fair value of
Slide 33: Core SG&A reconciliation
(in thousands of U.S. dollars) Total Selling, general and administrative Core SG&A SG&A items excluded from Core SG&A FY'21 $199,881 137,144 62,737 Appendix Adjusted EBITDA Q4 2022 $70,099 44,120 25,979 FY'22 $236,051 174,410 61,641 Q1 2023 $52,138 40,796 11,342 Q2 2023 $55,803 47,381 8,422 Q3 2023
Slide 34: Segment operating margin reconciliation Q4 2023
Appendix Segment operating margin reconciliation Three Months Ended December 31, 2023 (in thousands of $) Terminals and ships Total Segment Consolidation Consolidated Total revenues 695,068 63,290 758,358 Z 758,358 Cost of sales 259,976 - 259,976 (1,491) 258,485 Vessel operating expenses - 9,092 9,0
Slide 35: Segment operating margin reconciliation Q3 2023
Appendix Segment operating margin reconciliation Three Months Ended September 30, 2023 Consolidation Terminals and (in thousands of $) Infrastructure Ships Total Segment ‘and Other 2) Consolidated Total revenues 447,905 66,557 514,462 - 514,462 Cost of sales 208,683 - 208,683 (423) 208,260 Vessel op
Slide 36: Segment operating margin reconciliation Q2 2023
Appendix Segment operating margin reconciliation Three Months Ended June 30, 2023 Terminals and Consolidation (in thousands of $) Thain Ships Total Segment Other), Consolidated Total revenues 495,504 65,841 561,345 - 561,345 Cost of sales 222,371 - 222,371 3,397 225,768 Vessel operating expenses ~ 1
Slide 37: Segment operating margin reconciliation Q1 2023
Appendix Segment operating margin reconciliation Three Months Ended March 31, 2023 Consolidation Terminals and (in thousands of $) Infrastructure Ships Total Segment and Other 2) Consolidated Total revenues 502,608 97,917 600,525 (21,394) 579,131 Cost of sales 73,798 - 73,798 111,140 184,938 Vessel
Slide 38: Segment operating margin reconciliation Q4 2022
Appendix Segment operating margin reconciliation Three Months Ended December 31, 2022 Terminals and Consolidation and jated Consoli (in thousands of $) Ships) Total Segme Infrastructu Other (2) Total revenues 457,324 106,990 564,314 (17,945) 546,369 Cost of sales 232,436 - 232,436 (96,537) 135,899 V
Slide 39: Segment operating margin reconciliation FY 2023
Appendix Segment operating margin reconciliation Year Ended December 31, 2023 Consolidation and Terminals and (in thousands of $) Infrastructure Total Segment Other) Consolidated Total revenues 2,141,085 293,605 2,434,690 (21,394) 2,413,296 Cost of sales (1) 704,828 - 764,828 112,623 877,451 Vessel
Slide 40: Segment operating margin reconciliation FY 2022
Appendix Segment operating margin reconciliation Year Ended December 31, 2022 Consolidation and Terminals and (in thousands of $) Infroctracturet™) Ships?) Total Segment areal Consolidated Total revenues 2,168,565 444,616 2,613,181 (244,909) 2,368,272 Cost of sales 1,142,374 ~ 1,142,374 (131,946) 1,
Slide 41: Segment operating margin reconciliation FY 2021
Appendix Segment operating margin reconciliation Year Ended December 31, 2021 Consolidation and Terminals and (in thousands of $) Infroctracturet™) Ships?) Total Segment areal Consolidated Total revenues 1,366,142 329,608 1,695,750 (372,940) 1,322,810 Cost of sales 789,069 ~ 789,069 (173,059) 616,01
Slide 42: Funds From Operations
Appendix Funds From Operations (in thousands of $ except for share amounts) FY'21 Q4 2022 FY'22 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY'23 Net income attributable to stockholders 97,104 64,127 194,479 150,206 119,248 61,221 217,207 547,882 Plus: Depreciation/Amortization 98,377 36,201 142,640 34,375 42,1
Slide 43: 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, referred to herein as the "Presentation." FORWARD-LOOKING STATEMENTS. All statements contained in t
Slide 44: Disclaimers
Disclaimers PAST PERFORMANCE. Our past performance is not a reliable indicator or indicative of future results and should not be relied upon for any reason. There can be no assurance that the future performance of the Company, or any project, investment or asset of the Company, will be profitable or
Slide 45: Endnotes
Endnotes “Total Segment Operating Margin’ is the total of our Terminals and Infrastructure Segment Operating Margin and Ships Segment Operating Margin. "Terminals and Infrastructure Segment Operating Margin" included our effective share of revenue, expenses and operating margin attributable to our 5
Slide 46: Endnotes
10. "1 12. 13. Endnotes “illustrative Adjusted EBITDA Goal" 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 $150mm for 2024 including the pro rata share of Co
Slide 47: Endnotes
14, 15. 16. 17. 18. 19. 20. 2. 22. 23. 24, Endnotes “Downstream” or “contracted downstream’ or “contracted terminals" represents all our earnings, revenues and all other financial metrics, including assets, related to our Terminals and Infrastructure Segment, excluding cargo sales and certain deriva
Slide 48: Endnotes
27. 28. 29. 30. 31. 32. 33. 34, 35. 36. Endnotes Management's estimate of potential capacity and utilization at the Company's operating terminals and terminals under development. Actual capacity may be lower, especially for terminals that are not yet fully Operational (Barcarena, Santa Caterina and