New Fortress Energy Inc. · NASDAQ:NFE
New Fortress Energy — Corporate Update (September 2024)
35 slides from New Fortress Energy's corporate update, September 2024
Slide 1: September 2024
September 2024 NFE NewFortress energy
Slide 2: Overview
. Overview . NFE Detailed Disclosure . Recent Material Developments . NFE Transition . Appendix
Slide 3: Overview
Overview * Brazil, Nicaragua & FLNG1 update
Slide 4: Overview
. Overview . NFE Detailed Disclosure . Recent Material Developments . NFE Transition . Appendix
Slide 5: NFE Detailed Disclosure
NFE Detailed Disclosure expect steady remainder of 2024 & significant stability & growth AEBITDA Forecast") Annual $1.3bn $1.3bn Margins Forecast?) 170 TBtu ~$1,200mm + = $1.4bn to $1.5bn') ~$1.3bn in 2025
Slide 6: NFE Detailed Disclosure
NFE Detailed Disclosure ~$1.3bn in AEBITDA in 2025, Brazil contracted AEBITDA expected to increase total terminal AEBITDA by ~$225mm (+) Puerto Rico $7 53 (+) Nicaragua $7 25 Total Terminals $7 155 (+) Market Sales $7 7 (+) Ships (-) SG&A Total NFE $375 $175 $1,075 $50 $125 ($100) ~$1,300 (+) Increm
Slide 7: NFE Detailed Disclosure
NFE Detailed Disclosure Free Cash Flow expected to increase significantly”) Leverage expected to decrease substantially ($mm) (-) Capex - Net” ($1,000) ($67) ($25) ($25) (-) Debt Service® ($475) ($625) ($625) ($675) (-) Vessel Charter Payments'\”) ($125) ($125) ($175) ($175) (-) Ship Op. Margin (Red
Slide 8: NFE Detailed Disclosure
NFE Detailed Disclosure earnings expected to grow in 2025 as assets under construction become operational FEMA claim target is $659mm Brazil & Nicaragua contribute significant AEBITDA & cash flow in 2025/2026/2027 - $ 1 3 b n '24E '24E AEBITDA re) "O5E AEBITDA PR Claim { svectedl PF Claim Adj sr Nic
Slide 9: NFE Capex detail & trends
NFE Detailed Disclosure NFE Capex detail & trends Substantial decline expected in Capex from 2024 to 2025 Construction Capex ! Power Plants"4) $450 $400 I $850 $425 Terminals $100 $50 $150 $50 Total Construction Capex''5) $550 $450 ! $1,000 $475 202dE 20255 ! . Construction Capex $550 $450 I $1,000
Slide 10: LNG supply & demand are growing & matched
NFE Detailed Disclosure LNG supply & demand are growing & matched * Our * We expect to have modest, long volumes to 2025 Demand\"”) 2025 Supply"®) Portfolio''?) Source Timing”) Q3 2026 Terminals On Hand Contract D (+) Contract A ostiog) nestlona 1D U (+)FLNG 2 70 24 2026 (+) ContractB (+) FING 3 70
Slide 11: Overview
. Overview . NFE Detailed Disclosure . Recent Material Developments . NFE Transition . Appendix 11
Slide 12: NFE is now a fully integrated, global power & LNG company
Recent Material Developments With the addition of Brazil, Nicaragua & FLNG1, NFE is now a fully integrated, global power & LNG company * Our business is simple - we deliver power & gas to customers in our market, and target * Our supply & demand for NFE has 7 terminals across 5 countries & owns, man
Slide 13: Three areas of focus for significant improvements in earnings profile
Recent Material Developments Three areas of focus that we believe will result in significant improvements in our earnings profile 2. Nicaragua 13
Slide 14: AEBITDA Forecast expected to grow from contracted cash flows
Recent Material Developments Based only on contracted cash flows, AEBITDA Forecast expected to grow f $0 today to $450mm+®) over next two years as power projects completed Two regionally critical LNG terminals in operation 2 GW of power plants, $450mm in AEBITDA Forecast in 2027 $450 N/A 14
Slide 15: LNG terminals are the scarce resource for adding new power capacity in Brazil
Recent Material Developments LNG terminals are the scarce resource for adding new power capacity in Brazil LNG import terminals are key to meet growing baseload demand!), plus, the gas required for additional thermal capacity @ LNG Terminal Entry Point Barcarena, NFE @ NFE Terminals — TAG Pipeline c
Slide 16: Brazil: 2025 expected developments
Recent Material Developments Brazil: 2025 expected developments Barcarena 630 MW power plant Norsk Hydro gas sales 73% complete today Up to ~30 TBtu / yri4) Expected to be 100% complete by July 2025(19) TGS 100 MW power plant Expected to be 100% complete by Q1 2025('3) 16
Slide 17: Brazil: 2026 expected developments
Recent Material Developments Brazil: 2026 expected developments Barcarena 1,600 MW power plant 13% complete today Expected to be 100% complete by August 26 COD("9) 17
Slide 18: 25-year PPA with Nicaragua government
Recent Material Developments 25-year PPA with Nicaragua government?27) easy access to other Central American countries & markets upside to export power & gas AEBITDA Forecast of $175mm in AEBITDA in 2025 $225 N/A 2024 2025 2026
Slide 19: Nicaragua power plant 100% complete; terminal 95% complete
Recent Material Developments 300 MW power plant is 100% complete; terminal is 95% complete significant regional demand for gas & power 19
Slide 20: FLNG1 timeline: mechanically complete, first cargo
Recent Material Developments Q1 Aug. 9 2024 2024 | : Mechanically First complete Cargo!?9) Unit is operational & expect 70 TBtu (1.4mm tonnes) production
Slide 21: 1.4mm tonnes name plate capacity
Recent Material Developments 1.4mm tonnes name plate capacity Customs ruling obtained ree i La pase July 19, 2024(29) August 9, 202429) August 31, 2024 Estimated market value: $3bn to $3.5bn(30)
Slide 22: Potential FLNG economics
Recent Material Developments Potential FLNG economics NG is expected to be in short supply through 2028( The estimated excess value to deliver in next 3 years compared to long-term contracts (HH + $2.50) is ~$1.2bn(27) * Construction costs are approximately $1500 to $1600/tonne or ~$2bn(3°) (sum of
Slide 23: Overview
. Overview . NFE Detailed Disclosure . Recent Material Developments . NFE Transition . Appendix 23
Slide 24: NFE Transition
NFE Transition 1. Downstream business 2. Upstream liquefier business NewFortress energy Downstream Upstream Infrastructure (FLNG1, FLNG2 & FLNG3) eS high cash flow/low & we capex downstream believe development pipeline of FLNG2 & FLNG3 are at compelling timelines & costs to develop Any separation tr
Slide 25: NFE Transition: FTAI example
NFE Transition No better example of the potential benefit of this exists other than FTAIS2) FORTRESS TRANSPORTATION & INFRASTRUCTURE “wy FTAI was formed in 1. Cash flow 2. Infrastructure May 2015 with ME sson (=== two distinct business lines jm Infrastructure Aircraft / engine development leasing 25
Slide 26: FTAI combined share price performance
$100 $140 $120 $20 $40 $60 $80 – May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Combined Pre-Spin Feb-19 May-19 Aug-19 Nov-19 Feb-20 FTAI Aviation May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 Nov-21 FTAI Infrastructure Feb-22 May-22 Aug-22 Nov-2
Slide 27: Overview
. Overview . NFE Detailed Disclosure . Recent Material Developments . NFE Transition . 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
Slide 29: Appendix: 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: Appendix: 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: Disclaimers
Disclaimers NO OFFER; NO RELIANCE. This Presentation is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and may not be relied upon in connection with the purchase or sale of any security. You should not rely on this Present
Slide 32: 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 33: Endnotes
Endnotes “Adjusted EBITDA Forecast’ for the second half of 2024 and full year 2024, 2025, 2026 and 2027 means our forward-looking target for Adjusted EBITDA for the relevant period and is based on the" Total Segment Operating Margin Forecast less Core SGA assumed to be at approximately $66 million f
Slide 34: Endnotes
10. iW. 12. 13. 14, 15. Endnotes “Adjusted EBITDA Forecast for Brazil” includes amounts related to an agreement that we have entered into to acquire a Power Purchase Agreement (“PPA”), The contractis subject to a number of closing conditions, including that, regulators confirm the continued effectiv
Slide 35: Endnotes
19. 20. 2. 22. 23. 24, 25. 26. 27. 28. 29. 30. 31. 32. Endnotes Management estimates based on the potential increases in supply available to the Company in the next few years. There can beno assurance that these deadlines will be met or that the Company will receive the full supply from these contra
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