Capital Clean Energy Carriers Corp. · NASDAQ:CCEC
Capital Clean Energy Carriers — Capital Product Partners — IPO Roadshow (November 2023)
28 slides from Capital Clean Energy Carriers's IPO roadshow presentation, Nov 13, 2023
Slide 1: Q3'23 Earnings Presentation: Transformative Acquisition of 11 LNG Carriers
Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-274680 November 13, 2023 Q3’23 Earnings Presentation Transformative Acquisition of 11 LNG Carriers 11.13.23 capitalpplp.com
Slide 2: Important Notice
The issuer has filed a registration statement (including a prospectus) with the SEC Important Notice for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more c
Slide 3: Q3'23 Review
01 Section Q3’23 Review
Slide 4: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights ▪ Financial Performance & Operating Highlights: ▪ Net income for 3Q2023: $17.0 million ▪ Declared common unit distribution of $0.15 for the quarter ▪ Partnership’s operating surplus: $41.7 million or $7.2 million after the quarterly allocation to the capital reserve 1 ▪
Slide 5: Statements Of Comprehensive Income
Statements Of Comprehensive Income ($ In Thousands) For the Three-Month Period Ended For the Three-Month Period Ended September 30, 2023 September 30, 2022 Revenues 95,526 71,858 Expenses/ (income), net: Voyage expenses 4,124 4,386 Vessel operating expenses 19,479 14,779 Vessel operating expenses –
Slide 6: Operating Surplus For Calculation Of Unit Distribution
1 Operating Surplus For Calculation Of Unit Distribution ($ In Thousands) For the Three-Month Period Ended For the Three-Month Period Ended 30-Sep-23 30-Jun-23 Partnership’s net income 17,038 7,412 Adjustments to net income Depreciation, amortization, unrealized bonds exchange 23,858 19,783 differen
Slide 7: Balance Sheet
Balance Sheet ($ In Thousands) As Of As Of September 30, 2023 December 31, 2022 Assets Current Assets 152,609 166,323 Fixed Assets 2,257,158 1,781,897 Other Non-Current Assets 40,425 48,544 Total Assets 2,450,192 1,996,764 Liabilities and Partners’ Capital Current Liabilities 153,527 118,580 Long-Te
Slide 8: Transformative Acquisition of LNG Carriers
02 Section Transformative Acquisition of 11 LNG Carriers
Slide 9: Transformative Acquisition to Reposition CPLP
Transformative Acquisition to Reposition CPLP CPLP to acquire 11 latest generation two stroke (MEGA) LNG carriers from Capital Maritime & ✓ Trading Corp. (“CMTC” or “Sponsor”) to be delivered from 2023 to 2027, creating a fleet of 18 latest generation LNG carriers Name change to Capital New Energy C
Slide 10: Attractively Priced and Conservatively Funded Acquisition
Attractively Priced and Conservatively Funded Acquisition 1 Acquisition Price of $3,130 million with acquisition multiple representing 8.4x EBITDA over one-year period ($ in millions) Sources Uses Vessel Debt $2,377 11 LNGCs $3,130 Rights Offering 500 Transaction Fees 4 Loan Arrangement & Other Sell
Slide 11: Transaction Backed by Significant Sponsor Support
Transaction Backed by Significant Sponsor Support ✓ 1 ✓ $500 million Rights Offering available to all unitholders at a price of $14.25 - $14.50 ✓ Rights Offering 100% backstopped by Sponsor at no fee ✓ ✓ All holders of Common Units as of November 24, 2023, (“Record Date”) will receive non-transferab
Slide 12: Robust Charters and Exposure to Strengthening LNG Market
Robust Charters and Exposure to Strengthening LNG Market Years LNGC NBs Contracted Revenue Charter Acquisition 1 As of Vessel Delivery Charterer 3 Type Structure Daily Rate 15/12/23 Year In Million 4 Average per year 1 Amore Mio I Oct-23 Qatar Energy 2.8 TC Delivery at Closing 2023-2024 $123.3 $131,
Slide 13: CPLP Expected to Have the Largest Fleet of MEGA LNG Carriers
CPLP Expected to Have the Largest Fleet of MEGA LNG Carriers 2-stroke vessels favored due to significant environmental and efficiency benefits 1 2 Two Stroke LNGC Fleet LNGC Fleet Firm Charter Duration (Vessels) (Years) 18 6.5 7 13 4.5 4.1 13 11 4 2 NA 2 0 CPLP DLNG FLNG CLCO CPLP FLNG CLCO DLNG New
Slide 14: LNG Vessels are a Core Component of Natural Gas Value Chain
LNG Vessels are a Core Component of Natural Gas Value Chain ▪ LNG is prevailing as the main supply source of natural gas ▪ Natural Gas (NG) exporters are switching to LNG in order to add flexibility to their sales portfolio ▪ LNG shipping is a significant part of the natural gas value chain due to s
Slide 15: Strong Liquefaction and Trade Growth
Strong Liquefaction and Trade Growth 70% Increase in Global Liquefaction Capacity expected by 2030 (Projects Under Construction only) LNG Trade & Liquefaction Development ▪ Global liquefaction capacity stands at 465 mtpa, 900 60 % Increase in with four (4) projects and total of 8.3 mtpa Global LNG T
Slide 16: Orderbook versus Availability
Orderbook versus Availability Breakdown Of Orderbook Orderbook Dynamics Improving 100 Commited 90 ◆ Currently 300 vessels on order 13 80 70 Uncommited ◆ Orderbook-to-fleet ratio slightly lower than the peak as 60 newbuilds deliver and ordering has slowed 7 50 ◆ Eight (8) LNGCs were ordered in Q3 202
Slide 17: Fleet Evolution – Larger, More Efficient Vessels
Fleet evolution – Larger, More Efficient Vessels Savings Two Stroke Vessels Favored Compared to Other Daily Difference VS 2-Stroke (US-Japan-US) (USD/day) Propulsion Technologies (Steam / DFDE / TFDE) $275,000 $250,000 $225,000 DFDE ◆ More efficient propulsion – savings of up to 100tn of fuel per ✓
Slide 18: LNG Shipping Balance
LNG Shipping Balance Shipping demand driven by new liquefaction projects coming online and fleet replacement LNG Shipping Supply / Demand Balance (+140k cbm excluding FSRUs) Shipping Shipping Supply Demand 1000 Demand / If the volume distribution of LNG from the US Gulf adjusts faster than Removals
Slide 19: Significant Increase in Revenues and EBITDA when Fully Delivered
Significant Increase in Revenues and EBITDA when “Fully Delivered” 1 1 Total Fleet: EBITDA (per year) Total Fleet: Adjusted Free Cash Flow (per year) $148.0 ($ in millions) ($ in millions) $614.1 Increase by Increase of 153% 206% $99.6 $371.0 $243.1 $48.4 $243.1 $48.4 Existing Fleet Pro Forma Fleet
Slide 20: Commitment to Unlock Value for our Unitholders
Commitment to Unlock Value for our Unitholders Sponsor and management focused on units trading towards underlying Net Asset Value ✓ Name change to Capital New Energy Carriers L.P. (Ticker: CNEC) to be completed by ✓ year end ✓ Intention to explore conversion from Limited Partnership to corporation.
Slide 21: Pro Forma Net Asset Value Comparison
Pro Forma Net Asset Value Comparison Significant opportunity for CPLP to trade up to peer levels given its best-in-class LNG carrier fleet dynamics CPLP Pro Forma NAV Estimate ($ in Millions) Comparative Price / Net Asset Value (NAV) 1 Current Fleet (charter attached value) $2,540.8 3 1.00x Total Ca
Slide 22: Containership Divestiture
Containership Divestiture Containerships divestiture expected to unlock value to support deleveraging and growth ✓ CPLP owns 15 containerships with a currently estimated net asset value (“NAV”) in excess of $400 ✓ 1 million ✓ Debt currently outstanding is approximately $402 million and subject to $2
Slide 23: Capital Allocation Strategy
Capital Allocation Strategy ▪ Significant cashflow generation potential of transformed CPLP with a fully delivered fleet of 18 LNG carriers creates strategic optionality for go-forward capital allocation policy ▪ Opportunities for capital deployment (following mandatory debt repayment) include: ▪ In
Slide 24: Appendix
03 Appendix
Slide 25: Dropdown Transaction Structure
Dropdown Transaction Structure Transformation into the Leading Publicly-Traded Owner of LNGCs Explore Transformation of Corporate Structure Explore Divestiture of Containership Vessels ` Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 Q4’26 Q1’27 1 (+) Rights Offering ♦ Row T
Slide 26: ROFR to Potentially Diversify Energy Transition Fleet
ROFR to Potentially Diversify Energy Transition Fleet LCO2 Newbuildings Vessel Name Hull No. Delivery CBM Type Yard Active 8398 2025 22,000 LCO2 & LPG, Ammonia Carrier HHI Amadeus 8399 2026 22,000 LCO2 & LPG, Ammonia Carrier HHI ✓ First-ever state-of-the-art 22,000 - cbm liquid CO2 (LCO2) ✓ Ability
Slide 27: Assumptions
Assumptions ▪ Annual debt amortization: $118 million. Estimated amount of the average annual amortization for each vessel basis $2.38 billion debt ▪ Interest rate: Average margin of 1.97% over the 5 year SOFR swap rate of 4.27% ▪ Interest Expense: Interest rate multiplied by the average of Vessel De
Slide 28: capitalpplp.com
capitalpplp.com
Capital Product Partners — IPO Roadshow (November 2023) on 6ix