New Fortress Energy Inc. · NASDAQ:NFE
New Fortress Energy — Investor Presentation (December 2021)
27 slides from New Fortress Energy's investor presentation, December 2021
Slide 1: Investor Presentation December 2021
December 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. Market Update 3. Energy Ports (Prop. Co.) 4. FLNG (Op. Co.) 5. Energy Transition (Zero Parks) 6. Appendix 3
Slide 4: Significant Op. Margin increase in Q3 2021
Executive Summary Significant Op. Margin increase in Q3 2021 We achieved our Q3 Op. Margin Goal and are increasing our future targets Total Segment Operating Total Segment Operating Margin(1) ($mm) Margin(1) for Q3 was ~$210mm 2020 2021 2H 2021 Illustrative Total Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Segmen
Slide 5: The last quarter was extraordinary for NFE
Executive Summary The last quarter was extraordinary for NFE Organic growth, Fast LNG and the energy transition all create significant opportunities for our business • Organic growth opportunities in existing markets require manageable capex and are expected to result in margin expansion Terminals •
Slide 6: Agenda
1. Executive Summary 2. Market Update 3. Energy Ports (Prop. Co.) 4. FLNG (Op. Co.) 5. Energy Transition (Zero Parks) 6. Appendix 6
Slide 7: There is systemic underinvestment in oil & gas
Market Update There is systemic underinvestment in oil & gas Shrinking investment in baseload energy to back up intermittent power Market has underinvested in fossil fuels Fossil fuel investments have been declining, ahead of the energy transition and lag green projects in 2021(ii) Estimated Global
Slide 8: Climate & economic shocks have sent LNG prices soaring
Market Update Climate & economic shocks have sent LNG prices soaring Climate-related events put significant stress on energy system Gas prices have increased Shocks to energy system are happening more significantly this year(i) frequently, increasing short-term gas demand $45 $40 Lack of rainfall in
Slide 9: Demand for LNG is expected to exceed supply materially
Market Update Demand for LNG is expected to exceed supply materially Modest amount of incremental gas supply overwhelmed by projected demand Drivers of incremental gas demand Supply gap especially critical in next few years as transition to renewables still underway(i) 800 Coal to gas 700 Oil to gas
Slide 10: Agenda
1. Executive Summary 2. Market Update 3. Energy Ports (Prop. Co.) 4. FLNG (Op. Co.) 5. Energy Transition (Zero Parks) 6. Appendix 10
Slide 11: Energy ports business (Prop. Co.) has grown significantly over the past year
Energy Ports (Prop. Co.) Energy ports business (Prop. Co.) has grown significantly over the past year Prop. Co. includes terminals, ships, logistics and people Energy ports (Prop. Co.): We’ve seen immense growth in last year Q3 2020 Now 1. Terminals Terminals 3 11 Ships 5 25 2. Ships(4) 4 trucks, 29
Slide 12: Our energy ports now extend from Central & South America to Europe & Southeast Asia
Energy Ports (Prop. Co.) Our energy ports now extend from Central & South America to Europe & Southeast Asia 11 terminals operational(3) or under development(5) Jamalco CHP, Jamaica Shannon, Miami Liquefier, USA Ireland Montego Bay, Jamaica San Juan, Puerto Rico La Paz, Mexico Old Harbour, Jamaica B
Slide 13: We serve some of the largest gas markets in the world
Energy Ports (Prop. Co.) We serve some of the largest gas markets in the world Markets we are expected to enter in next 6-12 months increase our footprint dramatically Operational Markets Development Markets Jamaica BCS, Mexico Brazil Sri Lanka Puerto Rico Nicaragua Ireland South Africa ~13mm ~8mm M
Slide 14: Expect significant Op. Margin growth over next 18 months as terminals come online
Energy Ports (Prop. Co.) Expect significant Op. Margin growth over next 18 months as terminals come online(3) Illustrative Total Segment Op. Margin Goal(2) ($mm) Online Date(3) 2021 2022 2023 Operating(3) Terminals Montego Bay Operational Old Harbour Operational Puerto Rico Operational Mexico Operat
Slide 15: Current gas supply matched to demand
Energy Ports (Prop. Co.) Current gas supply matched to demand NFE has 4 gas supply contracts to purchase at least 100% of our committed(6) demand over the next 5 years 2019 2020 2021 2022 2023 2024 2025 2026 # of Cargos Demand(7) 4 12 14 23 30 31 28 24 # of Cargos Received/ 4 12 19 24 33 33 33 25 Ex
Slide 16: Improving NFE credit profile provides greater access to competitive LNG supply
Energy Ports (Prop. Co.) For future growth, improving NFE credit profile provides greater access to competitive LNG supply Becoming investment grade will dramatically increase LNG sourcing options and reduce supply costs Over 95% of LNG is sold to IG offtakers(9) Reaching IG expected to result in(10
Slide 17: Organizing business as simple, stand-alone enterprise creates significant value
Energy Ports (Prop. Co.) Organizing business as simple, stand-alone enterprise creates significant value Business divided into “Energy Ports (Prop. Co.)” and “Op. Co.” businesses Energy Ports (Prop. Co.) Op. Co. high cash flow minimal cash flow low operating exposure development expense significant
Slide 18: Agenda
1. Executive Summary 2. Market Update 3. Energy Ports (Prop. Co.) 4. FLNG (Op. Co.) 5. Energy Transition (Zero Parks) 6. Appendix 18
Slide 19: How does Fast LNG work?
FLNG (Op. Co.) How does Fast LNG work? Fast LNG is less expensive and faster than traditional FLNG Fast LNG is a mobile, floating natural gas liquefaction platform Floating LNG (FLNG) cryogenic flexible ship to ship transfer (5 years ago) hose system liquefier storage vessel jackup rig LNGC FSRU con
Slide 20: Plan to deploy Fast LNG across two distinct business lines
FLNG (Op. Co.) Plan to deploy Fast LNG across two distinct business lines Expected to provide stable cash flows plus significant upside 1. Tolling(11) 2. Merchant • NFE owns & operates • NFE owns & operates • High credit-quality 3rd • NFE owns volumes party tolls or rents infrastructure • Less predi
Slide 21: Agenda
1. Executive Summary 2. Market Update 3. Energy Ports (Prop. Co.) 4. FLNG (Op. Co.) 5. Energy Transition (Zero Parks) 6. Appendix 21
Slide 22: Advancing energy transition by investing in blue and green hydrogen
Energy Transition (Zero Parks) Advancing energy transition by investing in blue and green hydrogen We are taking a meaningful step towards decarbonization by investing in today’s economical solution 1 Full decarbonization will not happen overnight ~75% of all GHG emissions come from three main secto
Slide 23: Our plan forward
Energy Transition (Zero Parks) Our plan forward Expect to use our existing terminal and logistics operations to transport and distribute blue and green hydrogen H2 Build blue hydrogen Utilize existing NFE Transition heavy & green hydrogen assets and infrastructure polluter industries plants for tran
Slide 24: Our first Zero Parks project
Energy Transition (Zero Parks) Our first Zero Parks project We’ve made significant advancements on our first blue hydrogen project Expect to acquire key site on U.S. Gulf 1 New Coast in the next month Shipping Dock gas CO2 pipeline water Blue Key design and contracts expected Ammonia 2 Plant Q1 2022
Slide 25: 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. Forward-looking statements
Slide 26: Endnotes
1. Endnotes “Total Segment Operating Margin” means the sum of (i) Net income / (loss), (ii) Selling, general and administrative, (iii) Depreciation and amortization, (iv) Interest expense, (v) Other (income) expense, net (vi) Contract termination charges and Loss on Mitigation Sales, (vii) Loss on e
Slide 27: Endnotes
Endnotes 5. “Under Construction”, “In Construction”, “Under Construction”, “Development,” “In Development” or similar statuses means that we have taken steps and invested money to develop a facility, including procuring land rights and entitlements, negotiating or signing construction contracts, and
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