New Fortress Energy Inc. · NASDAQ:NFE
New Fortress Energy — Q1 2021 Earnings Presentation
29 slides from New Fortress Energy's earnings presentation, May 2021
Slide 1: Q1 2021 Investor Presentation
May 2021 Q1 2021 Investor Presentation
Slide 2: Delivering Positive Energy Worldwide
Delivering Positive Energy Worldwide Our Vision We want to light the world. Billions of people around the planet lack access to affordable power. Electricity should not be a luxury good. Our Mission Our mission is to provide capital, expertise and vision to address this problem while also making pos
Slide 3: Agenda
1. Executive Summary 2. Fast LNG 3. Hydrogen Update 4. Operating Performance 5. Appendix 3
Slide 4: Successfully closed Hygo Energy Transition Ltd & GMLP acquisitions
Executive Summary 3 Successfully closed Hygo Energy Transition Ltd & GMLP acquisitions Acquired for Growth will be Establishes $5.1bn funded from us as the asset sales leading LNG to No additional power company equity issued Expect to close in the world our first asset Committed Illustrative sale in
Slide 5: 2 additional terminals will be online in next 60 days
Executive Summary 2 additional terminals will be online(2) in next 60 days Terminals add significantly to our run-rate Illustrative Annualized Op. Margin Goal(1) La Paz, Mexico Puerto Sandino, Nicaragua ISOFlex LNG import facility ISOFlex LNG import facility & 135MW power plant & 300MW power plant F
Slide 6: Brazil terminals expected to be online in Q1 2022
Executive Summary Brazil terminals expected to be online(2) in Q1 2022 Hygo terminals in Brazil are well advanced in development(6) 1 Barcarena Barcarena • Anchored by Norsk Hydro(7) Terminal • Will serve Amazon basin: >100 liquid fuel power plants with >3.0 GW of power 1 • Brazil’s highest power pr
Slide 7: Additional terminals increase volumes significantly
Executive Summary Additional terminals increase volumes significantly $911mm Illustrative Annualized Op. Margin Goal(1) by August, growing to $1.6bn as SE Asia(9) and Brazil projects turn on 16.2mm (i,ii) 16.0mm 14.0mm 12.0mm Gallons per day 10.0mm + SE Asia(9), 12.6mm Brazil, & 8.0mm In-Discussion
Slide 8: Agenda
1. Executive Summary 2. Fast LNG 3. Hydrogen Update 4. Operating Performance 5. Appendix 8
Slide 9: Securing long-term, fixed price gas through Fast LNG
Fast LNG Securing long-term, fixed price gas through Fast LNG(12) Our goal is to create $3-4/MMBtu fixed price LNG What is Fast LNG(12)? Floating LNG (FLNG) cryogenic flexible ship to ship transfer (5 years ago) hose system liquefier storage vessel LNGC jackup rig FSRU converted to floating liquefie
Slide 10: We have partnered with best-in-class counterparties
Fast LNG 3 We have partnered with best-in-class counterparties The technology The rigs The final product(14) The installation 10 10 Kiewit Shipyard, Ingleside, TX
Slide 11: We are making significant progress on Fast LNG
Fast LNG 3 We are making significant progress on Fast LNG(12) First Fast LNG(12) facility expected to be online by YE 2022 March 2021 May 2021 Next 60-90 days July 2022 90 days later YE 2022 Declared FID Secure gas Complete supply installation Secured 2 Complete First Gas(15) jackup rigs constructio
Slide 12: We are targeting offshore assets
Fast LNG We are targeting offshore assets Targeting locations with existing infrastructure and significant access to underutilized natural gas North Sea ~7 Bcf/d of gas production throughout the region Pacific Basin 17 Bcf/d from the Permian & significant pipeline infrastructure Mediterranean ~75 Tc
Slide 13: Fast LNG significantly increases Illustrative Annualized Op. Margin Goal
Fast LNG Fast LNG(12) significantly increases Illustrative Annualized Op. Margin Goal(1) Terminal First Gas(15) Date Committed Volumes(3) (mm GPD) In-Discussion Volumes(4) (mm GPD) Total Volumes(5) (mm GPD) $1.6bn Illustrative Annualized Op. Margin Goal(1) Pre-FLNG Montego Bay Operational 0.4 0.1 0.
Slide 14: Agenda
1. Executive Summary 2. Fast LNG 3. Hydrogen Update 4. Operating Performance 5. Appendix 14
Slide 15: Our next step
Hydrogen Update Our next step A year after forming Zero, we’re announcing our first meaningful commercial investment in the clean energy space Q1 2020 Today Formed Zero and announced our “ We believe the actionable opportunity today lies in clean & ” goal to reach zero emissions renewable fuels. Ann
Slide 16: 99% of the fuels market needs to be replaced with renewable or clean fuels
Hydrogen Update 99% of the fuels market needs to be replaced with renewable or clean fuels The problem The market The opportunity Today, 51 billion tons of GHG Of the 36 billion barrels of fuels Opportunity to are released into the atmosphere used annually, less than 1% replace 99% each year are ren
Slide 17: Focused on clean & renewable fuels
Hydrogen Update Focused on clean & renewable fuels Two paths to accelerate a decarbonized economy 1. Renewable, fossil-free, 2. Clean, hydrogen-based fuels made from recycled, fuels such as blue ammonia repurposed materials H SMR + H vegetable animal oils carbon fats renewable capture N H H diesel H
Slide 18: What do we need?
Hydrogen Update What do we need? We plan to form a JV with Fortress Transportation and Infrastructure (FTAI) to commercialize this opportunity Why partner with FTAI? Our needs FTAI has multiple high-utility infrastructure assets that meet our needs Jefferson Terminal, Texas Access to logistics 1 • P
Slide 19: Our plan: Zero Parks
Hydrogen Update Our plan: Zero Parks Zero Parks will be clean energy hubs centered around low-cost production of blue hydrogen and renewable fuels 2 projects FID in next 90-120 days Project Profile(16) 1 Renewable diesel / jet fuel $200-$300mm capex to build each project 2 Blue hydrogen / blue ammon
Slide 20: Agenda
1. Executive Summary 2. Fast LNG 3. Hydrogen Update 4. Operating Performance 5. Appendix 20
Slide 21: Operational asset performance
Operating Performance Operational asset performance Achieved “three zeros” for HSE incidents for operating assets(17) Health, Safety, & Zero (0) Lost Time Injuries Environment (“HSE”) 0 Zero (0) Recordable Health and Safety Incidents Zero (0) Spills, Uncontrolled Releases, or Loss of Containme
Slide 22: Current terminals + FID generate significant Illustrative Annualized Op. Margin Goal
Operating Performance Current terminals + FID generate significant Illustrative Annualized Op. Margin Goal(1) Committed + $2,881 $3,000 In-Discussion $2,000 $1,200 Committed $911 $1,000 $125 - FY ’19 FY ’20 YE ‘21 Run-Rate Operational + + In-Discussion, Actuals Actuals Development + FLNG Illustrativ
Slide 23: Financial performance
Operating Performance Financial performance Operating Results Financial Metrics • Volumes and Revenue were consistent Q1 Q4 Q1 QoQ from Q4 2020 2020 2021 Change • Operating margins were down from prior quarter due to higher LNG costs Volumes Sold, Average (k GPD) 755 1,410 1,440 30 • Cash SG&A incre
Slide 24: Agenda
1. Executive Summary 2. Fast LNG 3. Hydrogen Update 4. Operating Performance 5. Appendix 24
Slide 25: Operating margin reconciliation
Appendix Operating margin reconciliation (in thousands) Q4 2020 Q1 2021 Net income/(loss) $ (485) $ (39,509) Add: Selling, general and administrative 32,869 45,181 Depreciation and amortization 10,013 9,890 Interest expense 14,822 18,680 Other expense (income), net 826 (604) Tax expense (benefit) 2,
Slide 26: 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 regardi
Slide 27: 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 28: Endnotes
Endnotes 2. “Online”, “Operating”, “Operational”, or “Turn On” with respect to a particular project means we expect gas to be made available within thirty (30) days, gas has been made available to the relevant project, or that the relevant project is in full commercial operations. Where gas has been
Slide 29: Endnotes
Endnotes 10. “Adjusted for maintenance” means that amount of cash flow that could be generated from optimized performance of all projects at full operational capacity. 11. GMLP & Hygo Op. Margin means the annualized figure for operating margin we expect to achieve from GMLP’s and Hygo’s existing ope