New Fortress Energy Inc. · NASDAQ:NFE
New Fortress Energy — Q2 2024 Earnings Presentation
41 slides from New Fortress Energy's earnings presentation, August 2024
Slide 1: Q2 2024
August 2024 Q2 2024 NewFortress energy
Slide 2: Agenda
1. Executive Summary 2. Capital Structure & Capex Update 3. Klondike Digital Infrastructure 4. Financial Results 5. Appendix
Slide 3: Executive Summary: Quarterly financial results
Executive Summary Quarterly financial results Illustrative Goal) $mm 2023 Q1-24 Q2-24 2024 2025 Total Segment Revenue?) $2,435 $690 $428 $2.6bn°?) $2.9bn) Total Segment Operating Margin) $1,452 $384 $248 $1.6bn'>) $1.4bn) Less Core SG&A‘) ($170) ($44) ($38) ($150}7) ($100)7) Less Deferred Earnings f
Slide 4: Executive Summary: Annual financial results
Executive Summary Annual financial results AEBITDA\) 2023 || 2024 b> | 2025 Illustrative Goal(10) Illustrative Goal Q1 Q2 Q3 Q4 $1.3bn $340mm $120mm $175mm $275mm $1.3bn ( J Y + FEMA claim = $1.4 - 1.5bn(1 2025 increase driven by ramp-up in FLNG1, Brazil & Nicaragua g 4 al
Slide 5: Executive Summary: Volume financial bridge
Executive Summary Volume financial bridge 2025 vol & ill 7 + (16) 170 TBtu Supplier TBtu Puerto Rico $8.00 $7.00 Avg. Illustrative Margin!" On Hand 3 Jamaica $4.50 = ; ~$1,200mm Source A 45 Nicaragua $5.00 > Source B 52 Mexico $8.00 * FLNG 1 70 Brazil $8.00 ee Tatra Shue Sfp het Total 170 NetAvg. $7
Slide 6: Executive Summary: Average business margin
Executive Summary Avg. business margin $7.00/MMBtu'"”) + $100mm
Slide 7: Executive Summary: Operational highlights
Executive Summary Operational highlights FLNG1 operational'%) & continuously running since commissioning run on 7/19 + Expect First Cargo 8/920) + Planned outage of ~7 days following First Cargo, then expect full production + Addition of FLNG1 to asset base increases company’s asset value by ~$2bn+
Slide 8: Puerto Sandino, Nicaragua construction
Executive Summary FUeITO SaNGINO, INICaragua CONSTFUCTION 7U /o COMplete
Slide 9: Brazil update
Executive Summary Brazil update CELBA.2.is.~70%.complete.& Portocem.is.underway.and.ahead._of schedule + Both LNG terminals operational''%); completed STS at both terminals in Q2 * Norsk Hydro commissioning ongoing; gas volumes up to ~60% of contract demand, full ramp up expected by Oct.(23) CELBA.2
Slide 10: Near-term growth at TGS and Barcarena
Executive Summary Near-term.growth.at TGS. Existing contracts at Barcarena Existing contracts grow to ~$500mm Illustrative Run-Rate Adj. EBITDA(22) by 2026 * CELBA 2 630 MW Power Plant with 25-year PPA of greenfield power development * PortoCem 1.6 GW Power Plant with 15-year PPA and/or supply to ex
Slide 11: Agenda
. Executive Summary . Capital Structure & Capex Update . Klondike Digital Infrastructure . Financial Results . Appendix 11
Slide 12: Capital structure & leverage overview
Capital Structure & Capex Update Capital structure & leverage overview Refinance 2025 Senior Secured Notes, <4x Debt / Adj. EBITDA) by 2026 Illustrative(25) Refinance existing 2025 notes 2023 2024 TO + Extend maturity as soon as possible June 30 + Existing commitment to backstop refinancing Adj. EBI
Slide 13: Capex overview
Capital Structure & Capex Update Capex overview Capex to complete existing projects & realize contracted EBITDA manageable over remainder of 2024 to 2025 Illustrative Goall27) Capex (excl. FING) Brazil (net of financing draws}27) $mm $50 - (+) Mexico $mm $12 (+) Nicaragua $mm $24 $43 (+) Puerto Rico
Slide 14: Significant increase in free cash flow generation
Capital Structure & Capex Update significant increase in free cash flow generation Converting corporate debt to long-duration asset-level debt significantly more cash flow available for debt service & free cash flow to equity Illustrative Goal Remaining 2024 2025 Adj. EBITDA ~$1.0bn ~$1.3bn (-) Net
Slide 15: FLNG1 & Brazil capital structure
Capital Structure & Capex Update FLNG1 & Brazil capital structure Longer-duration, lower-cost debt attainable by refinancing corporate loans with asset-level debt FLNG1 NFE Brazil 30-year useful life'S2) 18-year average contract duration ~$2bn replacement cost?) ~$500mm of Illustrative Run-Rate $1,5
Slide 16: Agenda
. Executive Summary . Capital Structure & Capex Update . Klondike Digital Infrastructure . Financial Results . Appendix 16
Slide 17: Global leader in power systems development & management
We are a global leader in power systems development & management eS & F WwW ~9 GW°9) of power owned & managed ~2.5 GW under construction Portfolio of 2 GW”) of modular power available for development Klondike Digital Infrastructure La Paz, Mexico Puerto Sandino, Nicaragua Barcarena, Brazil Jamalco,
Slide 18: Puerto Rico case study: rapid modular power deployment
Klondike Digital Infrastructure In particular, we have extensive experience rapidly deploying modular, reliable power systems Puerto Rico case study Palo Seco Fast Power San Juan Fast Power Overall GT1 G12 GT3 GT4 GIS GT6 GI7 GI8 GI? GTIO WV Fastest solution to Ly Provided 15% of mReliability m Avai
Slide 19: 2014 2020 2030
35 30 25 20 15 10 5 0 2014 2020 2030
Slide 20: Data centers traditionally located near end users
Klondike Digital Infrastructure Data centers have traditionally been to minimize latency issues Identify a Site Locate close to end-users/city centers to mitigate latency Apply to local utility for power Power supply subject to grid availability Necessary to supply own power redundancy Requires conn
Slide 21: We're providing Island Power
Klondike Digital Infrastructure We're providing “Island Power” 4 Small, modular units ee omcuane | T 1B.BkV> 345k ABBAVD 34.5kV IBBKV> 345KV ‘Data Center Switchgear & UPS w/Back-up Diesel Generators 3} / Extra redundancy I | I I I i I Reliability off the grid is to the size of the largest unit; prov
Slide 22: Addressing major constraints of digital infrastructure development
We're addressing all major constraints of digital infrastructure development Klondike Digital Infrastructure by utilizing behind-the-meter, on-site power ° v = Identify site with data center partner or our own site Power and land permits are the largest time constraints Develop state-of-the-art smar
Slide 23: Sites suitable for fast power data center development
Klondike Digital Infrastructure We have a number of sites which we believe are very suitable for “fast power” for data center development - Y ay t Wyalusing,.PA®®) 500+ MW contracted capacity 335-acre site currently owned Marc | pipeline interconnection located less than 1 mile from site 1,000+ MW E
Slide 24: Agenda
. Executive Summary . Capital Structure & Capex Update . Klondike Digital Infrastructure . Financial Results . Appendix 24
Slide 25: Financial Results: Another strong quarter
Terminal Op. Margin Financial Results Another strong quarter on sustained customer volumes Q1 2024 022024 QoQA Downstream Op. Margin ($mm) $350 $202 ($148) (+) Cargo Sale Op. Margin ($mm) $12 $12 (+) Ships Op. Margin ($mm) $34 $34 $0 Total Segment Op. Margin ($mm}4) $384 $248 ($136) (-) Core SG&A ($
Slide 26: Financial Results: Net income and EPS
Financial Results Another strong quarter on sustained customer volumes Q1 2024 Q2 2024 Qo0A Adj. Net Income (Loss)($mm/*") $138 ($85) ($223) Adj. EPS ($/share), Diluted'42) $0.67 ($0.41) ($1.08) Net Income (Loss) (attributable to Stockholders) eis $54 ($89) ($143) EPS ($/share), Diluted $0.26 ($0.44
Slide 27: Agenda
. Executive Summary . Capital Structure & Capex Update . Klondike Digital Infrastructure . Financial Results . Appendix 27
Slide 28: Adjusted EBITDA
Adjusted EBITDA (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 i
Slide 29: Adjusted EBITDA
Appendix Adjusted EBITDA {in thousands of U.S. dollars) FY 2023 Q1 2024 Q2 2024 Total Segment Operating Margin $1,451,690 $384,260 $248,351 Less: Core SG&A 169,246 44,112 38,190 Less: Pro rata share of Core SG&A from unconsolidated 14 _ _ entities Less: Deferred earnings from contracted LNG sales -
Slide 30: Adjusted EBITDA
Appendix Adjusted EBITDA (in thousands of U.S. dollars) FY'23 Q1 2024 Total Selling, general and administrative $205,104 $70,754 Core SG&A 169,246 44,112 SG&A items excluded from Core SG&A 35,858 26,642 Q2 2024 $70,578 38,190 32,388 30
Slide 31: Segment operating margin reconciliation Q2 2024
Appendix Segment operating margin reconciliation Three Months Ended June 30, 2024 , Terminals and , Consolidation B (in thousands of $) hao Ships Total Segment Sona ra Consolidated Total revenues 385,428 42,578 428,006 - 428,006 Cost of sales (2) 221,860 - 221,860 - 221,860 Vessel operating expenses
Slide 32: Segment operating margin reconciliation Q1 2024
Appendix Segment operating margin reconciliation Three Months Ended March 31, 2024 Consolidation Terminals and (in thousands of $) hao Ships Total Segment “Ons Consolidated Total revenues 647,737 42,584 690,321 - 690,321 Cost of sales) 229,117 - 229,117 = 229,117 Vessel operating expenses - 8,396 8,
Slide 33: Segment operating margin reconciliation FY2023
Appendix Segment operating margin reconciliation Year Ended December 31, 2023 Consolidation and Terminals and (in thousands of $) Total Segment Consolidated Infrastructure Other (2) Total revenues 2,141,085 293,605 2,434,690 (21,394) 2,413,296 Cost of sales (1) 764,828 = 764,828 112,623 877,451 Vess
Slide 34: Adjusted Net Income and EPS
Appendix Adjusted Net Income and EPS (in thousands of U.S. dollars except for share amounts) Q1 2024 Net income (loss) attributable to stockholders (GAAP) 54,081 Non-cash impairment charges, net of tax - Loss (gain) on sale of assets 77,140 Loss on disposal of equity method investment 7,222 Adjusted
Slide 35: 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 Loss (gain) on sale of assets Loss on disposal of equity method investment Funds from operations Weighted-average shar
Slide 36: 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 37: Endnotes
Endnotes “illustrative Goals’ or Goals means our forward-looking view for the relevant metric. The goals are based on certain managementassumptions applicable to the relevant metric, The goals are not based on the Company's historical operating results, which are limited, and are provided for illust
Slide 38: Endnotes
10. iW. 12. 13. 14, 15. 16. 17. Endnotes “illustrative Adjusted EBITDA Goal” for the second half of 2024 and full year 2024, 2025 and 2026 means our forward-looking goal for Adjusted EBITDA for the relevant period and is based on the “Illustrative Total Segment Operating Margin Goal" less illustrati
Slide 39: Endnotes
18. 19. 20. 2. 22. 23. 24, 25. 26. 27. 28. 29. @ Endnotes Management's estimates based on improved efficiency in the company’s operations in Puerto Rico and additional savings based on shipments from the Company's FLNG 1 facility. “Full production’, ‘Operational’, "Completed’, “Placed into service"
Slide 40: Endnotes
30. 31. 32. 33. 34, 35. 36. 37. 38. 39. 40. oy 42. Endnotes Growth SG&A are costs that are directly related to NFE’s investment on expansion, development, growth, and other similar items. Taxes are estimated based on previous tax periods in which taxes have averaged under 8-10% of Adjusted EBITDA. B
Slide 41: Endnotes
43, Endnotes “Funds From Operations" and “Funds From Operations per share" means net income attributable to stockholders, computed in accordance with GAAP, excluding gains or losses from sales of assets, depreciation and amortization and impairment charges. We compute FFO in accordance with our inte