New Fortress Energy Inc. · NASDAQ:NFE
New Fortress Energy — Investor Day (November 2022)
35 slides from New Fortress Energy's investor day presentation, November 2022
Slide 1: Investor Day
November 2022 NewFortress energy
Slide 2: Corporate Update; Fast LNG: Overview; Design & Engineering; Marine & Shipping
1. Corporate Update 2. Fast LNG: Overview 3. Fast LNG: Design & Engineering 4. Fast LNG: Marine & Shipping 2
Slide 3: We are increasing our Illustrative Adj. EBITDA Goals
Corporate Update We are increasing our Illustrative Adj. EBITDA Goals(1) Illustrative Goal(1) Raising FY 2022 FY'21 Q1-22 Q2-22 FY'22 FY'23 Illustrative Adj. EBITDA Adj. EBITDA(2)($mm) $605 $258 $283 ~$1.1bn+ ~$2.5bn+ Goal(1) from $1bn+ to ~$1.1bn Raising FY 2023 Illustrative Adj. EBITDA Expected Hi
Slide 4: Construction of our Fast LNG units is progressing rapidly
Corporate Update As you will see today, construction of our Fast LNG units is progressing rapidly Unit Design Construction Mechanical yard completion(5) FLNG 1 Jack up rigs KOS March ‘23 FLNG 2 Fixed platform KOS November ‘23 FLNG 3 Fixed platform KOS/Mexico January ‘24 FLNG 4 Sevan Driller Sembcorp
Slide 5: We expect to deploy our first Fast LNG unit in mid-2023
Corporate Update We expect to deploy our first Fast LNG unit in mid-2023, with the next 4 deployed by YE 2024 5 units under development(5) Louisiana Altamira Lakach(9) New Orleans Progressing 15-year gas supply 7-well development permitting with agreement with with Pemex(5) Louisiana MARAD and CFE(8
Slide 6: We plan to add 7+ MTPA of liquefaction capacity
Corporate Update Our LNG volumes are expected to grow substantially due to Fast LNG We plan to add 500 Expected LNG volume build-up by YE2024 (TBtu)(i) 7+ MTPA of liquefaction capacity 400 and, with our 300 existing volumes, 200 have a portfolio of ~9.5 MTPA by 100 YE2024 0 Q2 2023 Q3 2023 Q4 2023 Q
Slide 7: Unprecedented market opportunity for new LNG volumes
Corporate Update Unprecedented market opportunity for new LNG volumes Global gas prices(i) We are Significant & ongoing 60 dislocation between uniquely US & global gas prices 50 JKM TTF HH positioned to 40 bring new LNG $/MMBtu 30 capacity to 20 market amidst 10 severe supply 0 shortages (i) Source:
Slide 8: Next steps for NFE are clear
Corporate Update Next steps for NFE are clear Uniquely positioned global integrated gas company that combines low-cost production with downstream energy distribution 1 2 3 Build 7+ MTPA of Respond to market Convert to long-term floating liquefaction opportunities in 2023-2026 downstream contracts Ad
Slide 9: Near-term: We will connect Fast LNG with gas distribution in Europe
Corporate Update Near-term: We will connect Fast LNG with gas distribution in Europe European Regas Terminals Substantial regas infrastructure 30 terminals ~3,000 LNG cargo slots Eemshaven Planned Under construction FID Operational Gas priced on a central exchange “TTF” benchmark pricing index No ne
Slide 10: Long-term: Our infrastructure creates differentiated supply opportunities
Corporate Update Long-term: Our infrastructure creates differentiated supply opportunities Our portfolio 9 11 8 terminals LNGCs FSRUs European retail distribution or FSUs TTF/NBP FSRUs open for deployment(4) Asian retail distribution 2023 1 JKM 2024 1 2025 1 Terminals, FSRUs & LNG ships are key to c
Slide 11: Expect to be able to return significant capital to shareholders
Corporate Update Accordingly, with revised Illustrative Adj. EBITDA Goals(1), expect to be able to return significant capital to shareholders We expect to generate Cash on hand/ $1.3bn $5bn+ of liquidity(12) lines available(13) over the next 3 years Available liquidity may be used for: Additional in
Slide 12: Corporate Update; Fast LNG: Overview; Design & Engineering; Marine & Shipping
1. Corporate Update 2. Fast LNG: Overview 3. Fast LNG: Design & Engineering 4. Fast LNG: Marine & Shipping 12
Slide 13: Fast LNG has been a main focus for NFE for the last 18 months
Fast LNG: Overview Fast LNG has been a main focus for NFE for the last 18 months March May July March July 2021 2021 2021 2022 2022 Announced FID(11) Purchased first 2 Began assembly in Announced MARAD Announced partnerships on Fast LNG jack-up rigs Kiewit shipyard filing for Louisiana(7) with PEMEX
Slide 14: The economics of Fast LNG are potentially transformative for our company
Fast LNG: Overview The economics of Fast LNG are potentially transformative for our company What is each Fast LNG unit potentially worth?(i) LNG Volume x Margin = EBITDA per FLNG unit x $10/MMBtu = $700mm Each 1.4 MTPA x $20/MMBtu = $1400mm x 5 units = 70 TBtu x $30/MMBtu = $2100mm (i) Illustrative
Slide 15: We believe Fast LNG is the solution the world needs right now
Fast LNG: Overview We believe Fast LNG is the solution the world needs right now Click to view video rendering 15
Slide 16: Liquefaction module & platform for our first unit
Fast LNG: Overview Today you will see the liquefaction module & platform for our first unit rendering Liquefaction module Our standardized, modular design accelerates fabrication timelines & allows scalability Current Final rendering Liquefaction platform Fast LNG can utilize a variety of readily av
Slide 17: We've secured almost all our required equipment for units 1-5
Fast LNG: Unit Update We’ve secured almost all our required equipment for units 1-5 Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Marine infrastructure MR compressors Cold boxes Gas turbine generators 17
Slide 18: Corporate Update; Fast LNG: Overview; Design & Engineering; Marine & Shipping
1. Corporate Update 2. Fast LNG: Overview 3. Fast LNG: Design & Engineering 4. Fast LNG: Marine & Shipping 18
Slide 19: We set out to create a faster and cheaper offshore liquefaction solution
Fast LNG: Design & Engineering We set out to create a faster and cheaper offshore liquefaction solution Our Fast LNG solution is an offshore natural gas liquefaction facility on platforms Traditional floating liquefiers help access stranded gas cryogenic flexible ship to ship around the world but …
Slide 20: We leverage existing marine infrastructure & redeploy it for Fast LNG units
Fast LNG: Design & Engineering We leverage existing marine infrastructure & redeploy it for Fast LNG units Significant flexibility provided by using 3 types of existing marine infrastructure Fast LNG “factory” modular approach Jack-up rigs Fixed jackets allows scalability, affordability and speed re
Slide 21: Corporate Update; Fast LNG: Overview; Design & Engineering; Marine & Shipping
1. Corporate Update 2. Fast LNG: Overview 3. Fast LNG: Design & Engineering 4. Fast LNG: Marine & Shipping 21
Slide 22: Our marine solution reduces time and costs
Fast LNG: Marine & Shipping Our marine solution reduces time and costs while leveraging our extensive marine experience rendering Floating storage significantly reduces deployment timelines vs. building onshore storage Floating storage unit (FSU) 1,000+ ship-to-ship transfers performed to date Ship-
Slide 23: We've streamlined our marine processes
Fast LNG: Marine & Shipping We’ve streamlined our marine processes 1 2 3 4 rendering rendering FSU Mooring system Transloading system STS Repurpose any LNG carrier Leverage existing Transload LNG with Transfer cargo to any for FSU with only slight technologies for high efficiency flexible LNG carrie
Slide 24: Tour of the Kiewit shipyard
Please join us for a tour of the Kiewit shipyard where you will see our first Fast LNG unit under construction! 24
Slide 25: Segment operating margin reconciliation
Appendix Segment operating margin reconciliation Three Months Ended June 30, 2022 Consolidation (in thousands of $) Terminals and Infrastructure (1) Ships (2) Total Segment Consolidated and Other (3) Total revenues 543,455 111,024 654,479 (69,624) 584,855 Cost of sales 271,948 - 271,948 453 272,401
Slide 26: Segment operating margin reconciliation
Appendix Segment operating margin reconciliation Three Months Ended March 31, 2022 Terminals and Consolidation (in thousands of $) Ships (2) Total Segment Consolidated Infrastructure (1) and Other (3) Total revenues 480,349 114,942 595,291 (90,173) 505,118 Cost of sales 235,532 - 235,532 (27,234) 20
Slide 27: Adjusted EBITDA
Adjusted EBITDA (in thousands of U.S. dollars) Q1 2022 Q2 2022 Net (loss) income $241,181 ($178,431) Add: Interest expense (net of interest income) 44,916 47,840 Add: Tax (benefit) provision (49,681) (86,539) Add: Depreciation and amortization 34,290 36,356 Add: Asset impairment expense - 48,109 Add
Slide 28: Adjusted EBITDA
Adjusted EBITDA (in thousands of U.S. dollars) Q1 2022 Q2 2022 Total Segment Operating Margin $300,083 $327,448 Less: Core SG&A 40,960 42,040 Less: Pro rata share of Core SG&A from unconsolidated entities 1,390 1,914 Adjusted EBITDA (non-GAAP) $257,733 $283,494 28
Slide 29: Segment operating margin reconciliation
Appendix – Op. Margin Reconciliation Segment operating margin reconciliation Year Ended December 31, 2021 Terminals and Consolidation (in thousands of $) Ships (2) Total Segment Consolidated Infrastructure (1) and Other (3) Total revenues 1,366,142 329,608 1,695,750 (372,940) 1,322,810 Cost of sales
Slide 30: Segment operating margin reconciliation
Appendix – Op. Margin Reconciliation Segment operating margin reconciliation Year Ended December 31, 2020 Terminals and Consolidation (in thousands of $) Ships (2) Total Segment Consolidated Infrastructure (1) and Other (3) Total revenues 451,650 - 451,650 - 451,650 Cost of sales 278,767 - 278,767 -
Slide 31: Adjusted EBITDA
Adjusted EBITDA (in thousands of U.S. dollars) FY’20 FY’21 Net (loss) income ($263,965) $92,711 Add: Transaction and integration costs 4,028 44,671 Add: Contract termination charges and loss on 124,114 - mitigation sales Add: Depreciation and amortization 32,376 98,377 Add: Interest expense (net of
Slide 32: 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 33: Endnotes
Endnotes 1. “Illustrative Adjusted EBITDA Goal” is based on the "Illustrative Total Segment Operating Margin Goal" less illustrative Core SGA assumed to be at $181mm in 2022 and $192mm for all periods 2023 onward including the pro rata share of Core SG&A from unconsolidated entities. “Illustrative T
Slide 34: Endnotes
Endnotes in fair value of non-hedge derivative instruments and contingent consideration, tax expense, and adjusting for certain items from our SG&A not otherwise indicative of ongoing operating performance, including non-cash share-based compensation and severance expense, non-capitalizable developm
Slide 35: Endnotes
Endnotes 7. Refers to the concurrent applications filed by an affiliate of NFE with the U.S. Maritime Administration (“MARAD”), the U.S. Coast Guard and U.S. Department of Energy to request all necessary permits and regulatory approvals to site, construct and operate a new offshore LNG liquefaction