New Fortress Energy Inc. · NASDAQ:NFE
New Fortress Energy — Corporate Update (October 2023)
40 slides from New Fortress Energy's corporate update, October 2023
Slide 1: Company Update
October 2023 NewFortress energy
Slide 2: NFE is a $10bn+ leading LNG infrastructure company
Executive Summary NFE is a $10bn+ leading LNG infrastructure company with long-term, diversified & stable cash flows Focused on growing volumes in markets where NFE is already operational, requiring minimal additional capex(1) Large portfolio of critical & irreplaceable energy infrastructure Robust
Slide 3: Our earnings are increasing significantly in both size & quality
Executive Summary Our earnings are increasing significantly in both size & quality Material growth in core terminal earnings with Puerto Rico expansion & Brazil coming online(5) • Focus is on long-term downstream customer earnings • Expect terminal earnings to grow from ~$850mm this year to ~$2.2bn
Slide 4: Earnings understate the value of our business
Executive Summary While our earnings have grown significantly, we believe that measure alone significantly understates the value of our business The value of our company is generated by 3 main components: Value of Value of Forward Value of Surplus Infrastructure Assets Customer Contracted Terminal C
Slide 5: ~$7.5bn in infrastructure built or purchased in the last 9 years
Executive Summary Infrastructure Our mission is to deliver cleaner, cheaper gas & power to customers around the world To deliver on our mission, we have built or purchased ~$7.5bn in infrastructure in the last 9 years 7 Terminals(6) ~6000 MW from power plants(7) 37 Ships(8) 3 Liquefiers(9) Jamaica (
Slide 6: Forward Customer Contracted Margin (FCCM)
Executive Summary Forward Customer Contracted Margin (FCCM)(10) Our Illustrative FCCM Goals are based on long-term gas and power contracts, averaging 12 years in duration Our business 1. We provide gas or 2. We provide 3. We collect a long- is simple power to customers all logistics & term spread wi
Slide 7: The targeted value of our FCCM could exceed $13bn
Executive Summary The targeted value of our FCCM could exceed $13bn(10) FCCM has grown ~33% annually over the past 8 years $16.0bn $13.6 $14.0bn 33% CAGR $11.6 $11.7 Barcarena $12.0bn $10.2 Nicaragua $10.0bn Puerto Rico $8.0bn $6.7 La Paz $6.0bn Old Harbour Montego Bay $4.0bn $2.5 $2.5 $1.8 Miami $2
Slide 8: Terminal capacity
Executive Summary Terminal capacity Our 7 terminals, all of which will be online in 2024, allow us to bring gas to countries around the world How to calculate terminal capacity(11) Rule of thumb: ~50 TBtu = 1mm tonnes Estimated capacity(12) Storage at terminal x frequency it can be refilled TBtu MTP
Slide 9: NFE is a stable & rapidly growing business
Executive Summary In sum, NFE is a stable & rapidly growing business with expected Free Cash Flow(13) of ~$1.8bn in 2024 Value of Value of Forward Additional Growth Infrastructure Assets Customer Contracted Through surplus capacity at + + Margin (FCCM)(10) existing terminals ~$7.5bn ~$13.6bn Illustr
Slide 10: Capital plan
Executive Summary Capital plan Financing Earnings & asset sales Planned financings targeted to raise + Between now and the end of 2024, $400mm+ of new capital which will we expect to generate ~$2.5-3.0bn enable us to fully fund FLNG 2’s capex(1) in free cash flow(20) Rapid deleveraging We will use t
Slide 11: Project/infrastructure updates
Project Updates Project/infrastructure updates We have a number of significant projects that are at or near completion Project Expected COD(21) Description 350-400 MW of gas-fired FEMA power (150 MW at Palo Seco, 200-250 MW Puerto Rico Power COD achieved at San Juan) located near & supplied by our S
Slide 12: 350-400 MW of FEMA power recently online in Puerto Rico
Project Updates 350-400 MW of FEMA power recently online in Puerto Rico Through our San Juan facility, 2 power installations & subsidiary GeneraPR, we manage majority of the island’s generation assets NFE built & operated assets GeneraPR operated assets Our subsidiary, GeneraPR, took over PREPA oper
Slide 13: 135 MW La Paz, Mexico power plant now online
Project Updates 135 MW La Paz, Mexico power plant now online Achieved COD in September 2023 Provides much needed cleaner & more reliable energy to the grid Agreement to sell plant to CFE (Mexico’s power utility) in 2024, further enhancing NFE’s ability to internally fund strategic growth initiatives
Slide 14: FLNG 1 is installed & connected to gas
Project Updates FLNG 1 is installed & connected to gas FLNG 1 consists of 3 platforms (all onsite in Altamira) Platform I Platform II Platform III Function: Gas treatment Function: Liquefaction Function: Utilities FLNG 1’s rapid deployment provides incremental LNG supply to fulfil our downstream nee
Slide 15: FLNG 2 already under construction & expected to be deployed onshore Altamira
Project Updates FLNG 2 already under construction & expected to be deployed onshore Altamira World-class import terminal with nearly 100% expected reliability has everything needed to quickly convert into an export facility Area map 2 GW+ from Signed LOI with CFE to 3 power plants develop onshore Al
Slide 16: High-volume Brazil terminals coming online
Project Updates High-volume Brazil terminals coming online Vast amount of organic growth potential from Brazil projects coming online this year(21) Barcarena Barcarena • Norsk Hydro (BBB/Ba3) serves as anchor customer with 15-year GSA • Sole natural gas supply source in region • Margin profile simil
Slide 17: Disciplined financial policy supports deleveraging
Financial Policy Disciplined financial policy supports deleveraging NFE has transitioned into a mature company with growing & stable cash flows to support a disciplined financial policy Stable Disciplined Expect extensive dividend policy(23) capital management deleveraging • Confirming $0.10 per sha
Slide 18: Appendix
Appendix 18
Slide 19: We identify places where affordable, reliable, cleaner energy is in short supply
Appendix - Company & Asset Overview We identify places around the world where affordable, reliable, cleaner energy is in short supply and deliver the solution How our business works Step 1: Step 2: Step 3: Step 4: Build LNG Source LNG Operate ships & Sell gas and import from the market logistics ass
Slide 20: NFE's path to becoming a global, integrated LNG infrastructure player
Appendix - Company & Asset Overview NFE’s path to becoming a global, integrated LNG infrastructure player 2014 2015 2016 2019 2020 2021 2022 2023 2024 NFE First LNG Export first Initial Public First Gas at Hygo Sold 50% stake Created Santa Catarina founded at Miami LNG from Offering on Jamalco acqui
Slide 21: Montego Bay (Jamaica)
Appendix - Company & Asset Overview Marked the beginning of Jamaica’s energy diversification Montego Bay (Jamaica) Facility Ship-to-shore with landed storage and truck loading facility Capacity 0.4 Mtpa Function Supply natural gas to the 145MW Bogue Power Plant operated by Jamaica Public Service Com
Slide 22: Old Harbour (Jamaica)
Appendix - Company & Asset Overview Serving as a regional hub for LNG distribution in the Caribbean Old Harbour (Jamaica) Facility FSRU and associated infrastructure & power plant Capacity 3 MTPA (FSRU) | 150 MW (power plant) Function Supply gas to the 190MW Old Harbour Power Plant owned & operated
Slide 23: San Juan (Puerto Rico)
Appendix - Company & Asset Overview Bringing cleaner energy to Puerto Rico San Juan (Puerto Rico) Facility Onshore micro-fuel handling facility Capacity 1.3 MTPA Function Supply LNG to on-island industrial users and natural gas to the PRERA San Juan Power Plant owned and operated by Puerto Rico Elec
Slide 24: Barcarena (Brazil)
Appendix - Company & Asset Overview Supplying the Amazon river basin with cleaner energy Barcarena (Brazil) Facility FSRU and associated infrastructure & power plant Capacity 5.9 MTPA (FSRU) | 624 MW (power plant) Function Supply gas to Alunorte Alumina Refinery owend by Norsk Hydro ASA and NFE Barc
Slide 25: Santa Catarina (Brazil)
Appendix - Company & Asset Overview Bringing LNG to southern Brazil Santa Catarina (Brazil) Facility FSRU and associated infrastructure Capacity 5.9 MTPA Function Supply gas into the local power and industrial markets and be connected to existing inland Transportadora Brasileria Gasoduto Bolivia-Bra
Slide 26: La Paz (Mexico)
Appendix - Company & Asset Overview Powering La Paz with positive energy La Paz (Mexico) Facility Onshore LNG receiving facility & power plant Capacity 3 MTPA (LNG facility) | 100 MW (power plant) Function Supply LNG to multiple CFE power generation facilities and NFE La Paz power Plant Commercial O
Slide 27: Puerto Sandino (Nicaragua)
Appendix - Company & Asset Overview Supporting more consistent power in Nicaragua Puerto Sandino (Nicaragua) Facility FSRU and associated infrastructure & power plant Capacity 3 MTPA (FSRU) | 300MW (power plant) Function Supply natural gas to NFE Puerto Sandino Power Plant in connection with a 25-ye
Slide 28: Adjusted EBITDA
Appendix Adjusted EBITDA (in thousands of U.S. dollars) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Net income $(32,926) $(31,671) $(78,076) $(204,319) $(263,965) $92,711 $184,786 Add: Interest expense 5,105 6,456 11,248 19,412 65,723 154,324 236,861 Add: Tax provision (benefit) (361) 52
Slide 29: Adjusted EBITDA
Appendix Adjusted EBITDA (in thousands of U.S. dollars) FY 2019 FY 2020 FY 2021 FY 2022 Total Selling, general and administrative $152,922 $120,142 $199,881 $236,050 Core SG&A 94,133 91,980 137,144 174,410 SG&A items excluded from Core SG&A 58,789 28,162 62,737 61,640 29
Slide 30: Segment operating margin reconciliation
Appendix 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 789,069 - 789,069 (173,059)
Slide 31: Segment operating margin reconciliation
Appendix Segment operating margin reconciliation Year Ended December 31, 2022 (in thousands of $) Terminals and Total Segment Consolidation and Consolidated Ships (2) Infrastructure (1) Other (3) Total revenues 2,168,565 444,616 2,613,181 (244,909) 2,368,272 Cost of sales 1,142,374 — 1,142,374 (131,
Slide 32: Free cash flow reconciliation
Appendix Free cash flow reconciliation (in thousands of U.S. dollars) FY 2021 FY 2022 Net (loss) income attributable to stockholders 97,104 194,479 Depreciation and amortization 98,377 142,640 Free cash flow (Non-GAAP) 195,481 337,119 32
Slide 33: Adjusted Net Income and Adjusted EPS
Appendix Adjusted Net Income and Adjusted EPS (in thousands of U.S. dollars except for share amounts) FY 2021 FY 2022 Net income attributable to stockholders (GAAP) 97,104 194,479 Non-cash impairment charges, net of tax — 381,302 Loss on disposal of investment in Hilli LLC — — Adjusted net income (N
Slide 34: 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 35: Disclaimers
Disclaimers FORWARD-LOOKING STATEMENTS (con’t.). These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of the Company’s forward-looking statements. Other known or unpredictable factors could also have material
Slide 36: Endnotes
Endnotes 1. For the periods ending December 31, 2021 and 2022, Capex reflects the amounts presented in the Company’s 2022 Form 10-K. For future periods, Capex reflects management’s estimate of total expected cash payments in such period less cash proceeds received by the Company for related asset sa
Slide 37: Endnotes
Endnotes 4. This statement reflects management’s estimate of anticipated volumes and sales prices to customers who have an investment grade credit rating. 5. This statement reflects management’s estimate of expected earnings growth, which growth is expected to be driven meaningfully by increased sal
Slide 38: Endnotes
Endnotes 10. “Forward Customer Contracted Margin” or “FCCM” means the nominal contracted operating margin on a specific date of signed downstream contracts for the remaining term of the respective customer contracts. NFE calculates FCCM using the following methodology: (1) NFE first calculates month
Slide 39: Endnotes
Endnotes 13. “Free Cash Flow” or “FCF” is not a measurement of financial performance under GAAP and should not be considered in isolation or as an alternative to income from operations, net income, cash flow from operating activities or any other measure of performance or liquidity derived in accord
Slide 40: Endnotes
Endnotes 21. Expected COD, lead times and expected development times used in this Presentation indicate our internal evaluations of a project’s expected timeline. They refer to us completing certain stages of projects within a timeframe and within a spectrum of budget parameters that, when taken as
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