New Fortress Energy Inc. · NASDAQ:NFE
New Fortress Energy — Investor Presentation (July 2020)
23 slides from New Fortress Energy's investor presentation, July 2020
Slide 1: Investor Update
July 2020 NewFortress energy
Slide 2: Financial Update, Operational Update, Appendix
1. Financial Update 2. Operational Update 3. Appendix 2
Slide 3: Financial Update Summary
Financial Update Financial Update Summary 1 NFE’s goal is to generate significant annualized revenue: • $700mm+: Jamaica + San Juan(1) • $400mm+: Mexico + Nicaragua, which we expect to reach First Gas(2) by the end of 2020(3) • 10+ projects in pipeline(4) 2 Largest single cost is gas – we are buying
Slide 4: We Are Canceling Contracted 2020 LNG Cargoes & Buying Spot
Financial Update We Are Canceling Contracted 2020 LNG Cargoes & Buying Spot 2020 LNG cargoes were contracted at: Take advantage of weak We have ~$7/MMBtu terminated our LNG market by buying spot cargoes but… remaining 2020 cargoes Expect to net $15-25mm current LNG market Cost of $105mm from buying
Slide 5: Currently Low Gas Prices Create Opportunity
Financial Update Currently Low Gas Prices Create Opportunity We can capitalize on depressed LNG market to source cheap, long term natural gas supply LNG prices have fallen ~85% from a year and a half ago(13) Historical Px $10.00 Natural gas market was Our Plan $9.30/MMBtu oversupplied by ~6%(14) at
Slide 6: Transitioning From Start-Up to Operating Company
Financial Update Transitioning From Start-Up to Operating Company Illustrative Annualized Operating Margin Goal(17) from existing facilities is ~$400mm+; Mexico & Nicaragua (Operational(18) by end of year) add ~$150mm 34 12yr 1.0GW 1.9mm customers avg. contract term generation equivalent (19) Commit
Slide 7: Together, These Initiatives Increase Shareholder Value
Financial Update Together, These Initiatives Increase Shareholder Value 1H 2020 2H 2020 1. Simplifying Capital Structure Class B Shares LLC Class A Shares(21) C Corp(22) 2. Negative Op Margin $400mm + $150mm(23) Strengthening Financial Position Not Rated Rated(24) Debt Costs: ~8% Debt Costs: ~5%(25)
Slide 8: Operational Update
1. Financial Update 2. Operational Update 3. Appendix 8
Slide 9: Our Current Operations
Operational Update Our Current Operations 5 operating facilities with robust project pipeline 5 2 Miami, Florida Montego Bay, San Juan, operating facilities in La Paz, Mexico Jamaica Puerto Rico facilities construction Jamalco CHP, Jamaica Old Harbour, Jamaica 10+ 11 projects in target In Operation
Slide 10: How Our Business Operates Today
Operational Update How Our Business Operates Today Our business requires a seamless marriage of: gas supply, logistics, infrastructure, transportation & power Type of Port Onshore (Montego Bay, San Juan) Our First Innovation Prior to NFE (5 years ago) large offshore storage vessel small shuttle vess
Slide 11: Our Next Phase: Delivery in 3-6 Months vs. 24 Months
Operational Update Our Next Phase: Delivery in 3-6 Months vs. 24 Months Our latest infrastructure solution dramatically reduces project timelines and costs by 50%+(28) Our Proprietary ISO Flex System ISO containers • Big ship directly to ISO storage containers on small offshore support vessels (“OSV
Slide 12: Accelerated Timelines Make Growth Prospects Compelling
Operational Update Accelerated Timelines Make Growth Prospects Compelling Reduced timelines mean more new projects turning on faster, with $250-$300mm project costs yielding ~$100-$200mm Illustrative Annualized Operating Margin Goal Illustrative Economics 300 MW (average solution) $250 – $300mm proj
Slide 13: Remaining Year Goals
Remaining Year Goals June July July - August Q3 2020 Q4 2020 Converted Class B Bought down LNG Rating of BB for Run Rate in First Gas in common stock into cost for 2020 existing Puerto Rico Mexico & Class A common facility(34) Nicaragua shares Sign MOUs (35) for 4 of 10+ pipeline projects 13
Slide 14: Appendix
1. Financial Update 2. Operational Update 3. Appendix 14
Slide 15: Valuation Indicates Significant Untapped Value
Appendix Valuation Indicates Significant Untapped Value Q4 2020 $ in millions Project Economics(42) 2021 Annualized Illustrative Operating $150 Margin Goal $ in millions Miami, Jamaica, PR + Mexico & Nicaragua (-) Interest Expense(43) ($15) Summary: Net $135 Number of Projects(44) Illustrative Equit
Slide 16: ISO Containers
Appendix ISO Containers 552k ISO containers in market as of year end 2018 and projected to reach 1.1mm by 2026 (45) Key Stats ISO Container Regional Volumes • The International Organization for Standardization (ISO) was created in 1947 11% 12% • ISO Container was founded in the 1960s 7% 20% • Rising
Slide 17: 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 reg
Slide 18: Endnotes
Endnotes Certain of the below Endnotes include forward-looking statements. Please see our note regarding “Forward-Looking Statements” on the slide titled “Disclaimers” of this Investor Update (the “Presentation”). Please evaluate this Presentation in connection with the risk factors in our public re
Slide 19: Endnotes
Endnotes – (9) Based on the assumption that we have between $800mm and $1,000mm in debt and reduce our interest rate by 3.0%. Neither NFE nor its Credit Facility, as further defined in our financial statements, have a current credit rating as of the date of this Presentation. There can be no assuran
Slide 20: Endnotes
Endnotes – (17) “Illustrative Annualized Operating Margin Goal” means our goal for operating margin under certain illustrative conditions, presented on a run rate basis by multiplying the average volume we expect to sell in the quarter of the relevant period by four. Operating margin means the sum o
Slide 21: Endnotes
Endnotes – (20) “Committed” means our expected volumes to be sold to customers under (i) binding contracts, (ii) non-binding letters of intent, (iii) non-binding memorandums of understanding, (iv) binding or non-binding term sheets or (v) have been officially selected as the winning provider in a re
Slide 22: Endnotes
Endnotes – (29) “Est. Costs of Construction” means management’s internal estimates of construction and development costs related to the ISO Flex System and without the ISO Flex System, including costs related to the marine, regasification, truck loading, power and transportation infrastructure. Thes
Slide 23: Endnotes
Endnotes – (40) “Illustrative Equity Value” is calculated by multiplying the Net by the Multiple of 15 times. This information is for illustrative purposes only and is not intended to be a projection of our equity value. In addition, there can be no assurance that a multiple of 15 times is the corre
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