New Fortress Energy (NFE) 13 Aug 192019 Q2 Earnings call transcript

Company Profile

Participants

Alan Andreini	Head of Investor Relations
Wesley Edens	Chief Executive Officer and Chairman of the Board
Brannen McElmurray	Chief Development Officer
Christopher Guinta	Chief Financial Officer
Devin Ryan	JMP Securities
Benjamin Nolan	Stifel
Spiro Dounis	Credit Suisse
Jonathan Chappell	Evercore

Call transcript

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Operator

Good day, ladies and gentleman. And welcome to NFE Second Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call will be recorded.

to host like Mr. today's now would introduce for your conference, I Andreini, Relations. of Alan Investor Head may you Sir, begin.

Alan Andreini

LLC earnings operator. welcome to Energy all you, of quarter Thank I you the would New call. like to second XXXX Fortress

Energy Joining the our of our Board; yesterday. Chairman CEO earnings website the to Officer. Development that are, New Throughout me posted Brannen we Chris supplement McElmurray, reference are Wes going today and our and Edens; CFO; Fortress Chief Guinta, to the was call, the

If I'd it you done that suggest so, have not already you download now.

will measures in comparable found we these GAAP A addition, measures be today's of be can the In discussing earnings some financial reconciliation directly measures during supplement. non-GAAP to most the call.

would encourage to will statements point made our results. and differ actual looking These uncertain Now with contained certain disclaimer the statements materially regarding and forward to forward that be investor in in release review statements like are to press report risk regarding you before the financial by and Wes, the I turn future filed quarterly presentation factors We non-GAAP today out may measures our from statements call review looking including SEC. over nature earnings. the their I to

call like would to to I Now turn over the Wes.

Wesley Edens

everyone. will it follow as Great. to the to the folks I Welcome, going Thanks, supplement Alan. and refer well. I'm that that Alan think mentioned

So let's start number on Page X.

we flow quarters. into company. in with from of about our couple the development significant just focused, have Brannen the to of to materials, through second. the on course, then terrific revenue that a talk you'll to potentially transforming product associate had of You terminals significant us. know, months see, as development year. you're start we're good you a year been the obviously, amounts know, first our in side. into when in And an of next very customers. But been operating company the six see you that And go the much, will start increases a for It's We've

run Puerto QX terminal XXXX. we to is being full days reach Jamaica, from project now rate the completed. away in Rico

additional long just The plants We expecting us. and construction terminals two that a online list a online continues end since fully on of large last the Downstream. Jamaica about second the be sources be scale one in days. We’ve Brannen fourth other in They're come by close fully pipeline X.X that we and the going are completed construction in that of quarterly big a our out, we signing matter quite designed for talk country completed, there's a projects of and megawatt build of have we we're megawatt to expect Rico, in MoU goal terminals quarter. of has volumes online to about pursuing. here demand our completed will power added Puerto call. gallons situations million to project committed that under The to we Mexico. to QX is under the XX Mexico that JPS how XXX XXXX. by Jamaica, got in

reliability. and that know they incidents businesses you safety quarter, in our recordable the the had We've these there. Operating young be Next, zero availability, where XXX% right. of now you we company know of excellence place can that if extreme, put the the metrics, course don't good where operational a businesses list. serious you top rules are XX.X% as second we about know is are feel really in We you in right follow know consequences

or or power thunder, plant six the in just million finance terminal Jamaica. billion his months binding our initiatives. to we're Puerto commitment $X sometime against some steal spend did $XXX for Chris estimated sign on next Lastly, very to Rico financing, good financial so. time path Not I'll And Jamaica our a but we down on have in

all into growth kind we terminals get of the it page let's the terms number you deck So these in that if X. expect go as to divine come tells of Page online. This

day per in per average first sense. throughput the second not Our but XXX,XXX quarter in higher modestly was than quarter it's day, meaningful was gallons the a

the next the click us You can XXXX fourth start early go through as quarter see of then and of in to we year. in up third escalate really the quarter part

online. So us taking gas as their been They've comes from all commissioning. harbor

to deployed now. the by of from about month them fully expect be We a middle September, so

our talk Brannen about see will and that then are of volumes and going we to you green, the out Rico. plant both And first that logged plant. Puerto So then get the see

fully be October. is down we by see We're hard to the on in partner that, working prep of blue is middle And hard that expect working start well. We completed through and there the then as in Jamaica. to come our the volume

quarter year, day per the next of second second X.X kind gallons of quarter that's X.X. million up at ending year. By XXX,XXX this So

these So committed activity. don't the of any pipeline only, volumes are reflect

see Page number dollars then and X, you'll turns cents. how into Put that to

So level. then basically by deployed. to $XX million fully And the time million going in up $XXX earnings at QX, we're a terminal

So really much. very

about that, in half very talk go from as next an fully million of $XXX deployed And volumes incremental of pipeline. story the billion. perspective. X.X we just the to XXX about going by go know just gallons example, by the But of earnings day from the I'll based, we gallons is million approximately this about the time, XX time be middle path. an terminal Now as is the total passage We've you X.X a we it's million is what be, got million of this beneficial you year. convert down can generates of to earnings throughput If

we're So start to that. the now the on is And in good leverage a extraordinary. in execute system place

turn to going talk to about Brannen. I'm Brandon developments. to So over

Brannen McElmurray

to everyone. X. Great. us. Page Good morning, Thank I'll you, Wes. you joining for Thank refer

properties serves terminal which for and our on the backbone progress energy. network our great make to continue of We gateways

assets volumes Juan four San just in two committed four Importantly, Montego through two XX% and Harbor, Old operating La Bay, of construction. are and of the Paz are our flow

Juan San And there, through QX. terminals per We additional serve it in our customers, looks gas to million just glow looks were network. importantly, as in to actually represent day we going four of committed it's These have we expect throughput. X.X And to expectations. capacity terrific. We of gallons like our exceed it lots to built add downstream

terminals, which very downstream On Page is been are to we've side, X, connecting productive. our on we what the

talked most And than customers. our the both XX% and just of utility credits projects, four load substation. because are an know, power turban five Harbor, Jamalco X&X, higher volume. We and that projects Juan Subsequently, has our also to plant San by typically additional make we supported customers, a an up little through we committed megawatts. have going base our original about are as was price frequently taken Bogue, XX better think our to big added which of consume up XXX it is they're and taken volumes the committed Montego that you Old balance by a pay we Bay, upgrade

what capacity time, economy XXX out grow grow that the to believe area. is additional added will So megawatts we would as just with megawatts in over started XXX

super of additional know, we're know, expanding, excited, our the assets. you you you terrific, we're know So about possibility

as have Old In Wes we mentioned, delivered terminal. our Harbor,

that going terminal throughout the by into developed gas terms megawatt come it's XXX base our asset the support power the as they gas and them process. put been plant looks The continue up operational online of we'll of September So operations. is commissioning like right and utility in fully middle has to providing running load to about on

So we're about that super particular excited project.

operating, I are Of referenced, mentioned as construction. the four are I under in two two that

responsibility Importantly, plant XXX – that there we're building utility, in unit, in megawatt San power diesel for. begun, we're natural terminal, which The Juan, prep we're the conversion also the conversion which up owns who from XXX to a has a gas. megawatt assisting of taking

QX. expect that And to units in a terrific for we customer deliver think that We to be importantly, base going terminal. load that's those

we've time expect power in megawatts was go plants. of XX Jamalco and that just to XXX XXX And of for Greenfield. additional on is another And equivalent, budget we experiences that taken megawatts power gives plant, is us QX. of a that to which deliver and on set electricity, responsibility importantly, megawatts develop steam a

to X. Page Then I'll flip

to our focus downstream continue centers. for two and Power as plants, properties. know, categories fuel. the that availability are gas supply terminal downstream add on we The existing you and constant data assets require We plants to developments feed of power

are industrial facilities So they're basically to reliable very work data key their making terrific approximation power. operating power. that, And XX% customers But our their the close essentially, cheap, of is are costs data terminals. for are ingredient center for centers a a

essentially, mean, terrific thing another data power, at used So asset. properties look Google, Amazon, they're are credits, we're I Microsoft, adding downstream typically Facebook, side, just users the about super XX/X center these as excited because potentially like we data Apple. center a and that is for by people of

So we're that most other and markets pieces users. of along potential the can in data the customer center power we plant at real our looking to downstream are other that add

industry Just power the their XXXX, megawatts week center expect XXXX, five alone is to And with keep per implies about put it data Microsoft XX $XXX the they'll companies billion up about gigawatts in in XXXX. about the business. spent building in to of top in infrastructure In we context. world internet which consume. billion, cloud that spend $XX on XX to

we're following. they that And we're asset need building, reliable, the essentially, this that cheap a So real is energy. which trend core is

side, On context. it to just in put the power

X of would megawatts would development the XXX in discussions customers We side, about for, XXX we about in have development have megawatts center about megawatts responsibility represents some at responsibility million for. per in XXX with X take day. which about currently, which discussion, and And we on some gallons our in of data take gigawatts about

Wesley Edens

emphasize cannot I Yeah, enough.

around ourselves. creating basically own essentially our or downstream We think projects. are these end demand in the develop up most negotiated with many assets I we important terminals respects our

data the So the data building who guy centers we owns if centers. we're know

feels So the think very in really very like long you is data raw really still is very, are development drives of that the have, power me the center power project referenced material Brannen in shape we these And know, core which to I the innings things. a what asset we is is that game. that that early terrific

eye a keep good we'll this. So on

promise there. our very have I We stuff, little lot but a of anticipating think volumes, building there's in this

done it's by So Brannen. well

So know, you the next section you business our if the look at Number Page our core flipping of to terminals. XX,

that right first one there's city, of in half we development San gas in Montego will behind Juan commissioned it, Harbor, done La commissioned. Old Bay, are so Two just four by QX that on XXXX. in be central now the first in the the in already are the capital Luanda list Paz online the quarter QX. year, third So projects next would pulling in Angola, harbor.

that's Soyo power look rendering back is we datacenter terminal referenced. be North in would of at plant Page if power assets up Shannon, and is development a Ireland on plant as That's facility the that you the number the an well. a brand think other country. there. picture the of in what the offshore There's associated an north serve X, is will as the what and that

In extraordinary. Page business XX, is the the leverage operating of

right say, money, in for essentially can your two for all if costs, infrastructure The flip that's it or use be bad a can I the very As business, you and what and you for something it you also we four. is then three lose to use side one It's margins. true, marginal little infrastructure it, don't though, extraordinary that's on purpose have purpose, And build outcome. build and now. one want or

in the the we $XXX as of converting through if we're flow converge, in volumes that left now, pipelines terminal million having Earnings, the now, know, right of hand XX XX% $X.X here, add another billion right committed bar on million chart of gallons they So would you side level. conversations earnings.

amount an growth. of So extraordinary it's

more The in rendering actually hand your what right case now. side, flaws the of where study it actual customer a right business works

customers, of west, power look in So at the along We building industrial the to the look south. we the customers terminal at in we then Harbor, San edges plants the the look Juan north in country. at

brings many, we So out in many going online customers us for here this of to Brannen? Rico there's project be they'll Brannen all that minute. first Puerto that and a we think come in built

Brannen McElmurray

bet. you Yeah,

from call, have incessantly on reasons. we perfect. As we from Wes One, of standpoint, know, operations to, then you lots have us two a our the kind standpoint, you to beginning reputation industrial of at of a are alluded our that focused properties. for human be And for work the people in you know,

day and, make can be they that home go we And can know, so good their you we stewards, need families. sure so to every that see

safety going on the four and on that environmental. I'm But track the we health XX, page to highlight metrics

are which world Importantly, you we've particular And category. this kind this extremely know, record of zero had know, good. maintains, in we incidents you class believe, quarter,

know, zero So health you work and had we've and incidences, process zero know, issues. environmental zero, you issues,

On to serve reputational, our which again, our this is the metric, availability ability when tracks side, know, needed. you customers

were something you statistic unscheduled. standpoint, we service quarter, includes, our vigilant These, essentially consistent that on of means we did history, continue assets, both we customers know, you how out you plots, hours operating remain our continue maintain and of can is reliability not this XXX%, know, throughout For many pretty ever improve for counting this kind scheduled which From and of none get that. us a XX% result maintenance, know, which to for as get run has a did. our been we of which we

love think from operational reflects, So, know, we which you it performing, a and know, are how I assets about design perspective. we construction how you think our

have And the X,XXX most you know, ship personally which differentiating side, then On statistic in I think you this think is the we LNG our over experience. hemisphere. I I'm innovative and most truck of, and that, importantly, know, it transfers, reflects, proud because

player we our we credentialing of for a whereas customers, in player. experienced business, experiences So leverage also for our credibility, the new but started most for quickly particular This we grown set regulators. into as the

transfer did ports they for get back written operate. technology to example, we've to our ship watch Jamaican, U.S. taken brought we you as in on our to the Coast we operation the that and ship Guard in to know, ships So in U.S. they around properties which

To probably now one turn just it over, page.

Wesley Edens

with the market. current One, is you of the state mentioning affairs know, thing worth LNG

assuming been you view, for graph, allows of of model that's is year price prices the financial tough on very us gone our point can So a LNG, The quite forecast. outcome that from for $X.XX, win LNG, then big are lower see It's beneficial big, from to Chris's it's in we short given forecast the a our for been $X.XX which a a cargoes. us.

million volumes, a over current every little worth is dollar per our year. dollars At XXX

So very significant. it's

the next at locking to think, in I forecast earnings now it'll good going the And is financing hard investors We clear are also what helps very the our looking prices. of terms years, going forward. having be five a on think over and I facilitate, side. view It us

portfolio lower in expect So the XX, in I you will XX, new days know, material that these we XX some next would make additions and prices. to lock our

in off is been U.S. head own drawn It's My supply, and been of the unseasonably also big as an eastern historically is that and is of that in abundance that think uncertainty full particular challenges in winter uncertainty. on. lots months. is between trade into about view what going one things know, the of difficult stuff they've is in – this already And the and a now this market of and the Europe. China, taker, forth here has oil trade storage obviously, the given back right I all you China. the The are the going and That's reflecting you

excess So there's to long addressing an term, technical do I factors of be there's that think series think going demand. a the in of this. are I

LNG for in market down that short good something there's think on us in. market This for And now the presents a term. we're the so to good a focusing locking that going and be I road opportunity

So, Chris?

Christopher Guinta

Thanks, great. Wes. Yeah,

our quarter over talk results on from the about turn laid of goals talk our progress quarter about last So out then And And XXXX. a to on minutes initiatives financial I'll talking Wes quick toward valuation. I'll the call. that call our to the we views and back spend few financial about second then our

the of very additional first in that driven customers Bay that's in to the due the off, on about call. turban and from XXXX increased the was to QX directing from volume also XXXX The of Montego scale increases a But XXXX I'm small So largely the facility. you seen we Bay, served XX,XXX XX talked from to QX gas then being day, Page to end that increase XXXX about presentation. Montego sold QX turned in you've last gallons

of gas increase related Harbor The power was driver commissioning XXXX the to to terminal supply in quarter-over-quarter volume the Old other take Old Harbor to starting to plant.

talked through Going at a is one that due longer on is line, down taken an the again volumes that the expensive for we XXXX. if being the additional that us remainder Old entirely cargo the to little just that to us should to at we behind operating cargo the things than that XXXX. I'm you It expected have But commissioning. see purchased the pleased increase were the last plant that largely say that by by look the was took power call of burn quarter margin cargoes of discussed revenue, driven the to volumes. and been end for cargo Then being about bit of Harbor of previously was kind Centrica

quarter of that's margin, the margin. the FSRU, XXXX two Floating Storage there Freeze Regasification site, an Golar we kind and see operating the is a driver on On is operating terminal. best and that related is increase to being Harbor other this Perhaps Old expect news the from the Unit, to to the the last negative

are in you'll into margin when see number quarter, turning running forward. was as later both through going positive old volumes gas Bay. this turn introduce As is us we operating Montego small And volume the then Harbor, said an on additional to scale Juan, San

talk to very bottom But to balance of about sheet. just quickly page down the the moving the

$XXX pro probably the National $XXX show is line partner forma the million. and end at hand between at We've million. $XXX know fully underwritten here on million cash hand bridge with, I'll would added from You quarter financing the we're bond of on pleased which extremely a around have Commercial further. cash Bank sits we two the The committed to the about Jamaica, in that talk which

on takeaway big million the project point. on hand, But at to this cash $XXX fund committed number that is this fully you've every that

the the the the fully sheet the terminal, Juan the in plus that's power Old all on forma are and there, San financing. plant cash the includes terminal terminal Harbor that with remaining Jamaica, completion So La funded pro Paz of anything balance Jamalco

in Moving QX to what talking page is our number financing XX. we had perspective. of which from quickly call, about This of the update kind an is goals a

a The one obtaining Jamalco financing Jamaica. the was the first plant commitment power and for in

have further million has them a $XXX still back We to their bit generated flow bonds, from fully commitment. the talk on and But the little And underwritten Those page importantly, XX. gas cash about when more terminal NFE we'll non-recourse to the to Harbor power plant. financing run Jamalco cash agreement terminal mean, that we well, rate about of about alluded from sales the as Old think I million. $XXX the flow, the Wes The NFE.

be should terms to on debt that somewhere of four able cash You on three stream. flow that to between get

to So out market the we they to themselves QX this put contracts terminal just a by financing back the terminals early year, the more anticipating secured later have. and going are that permanent place in

that plus that that financing, some fashion liquefier up to just remaining of it the through sequence What does, seek to the project of Pennsylvania proceeds additional in fund to the costs of you the we the and the fire construction facility. then Pennsylvania. level would is allows back of And then some the free in debt this liquid reason this

able outlines financing. the Jamalco just in I but go owners’ about I'm build is party in million we're related On the and cost the some this excited package you those $XXX about won't third facility. finance know, of million most order of that costs What to the debt plus through costs, Page this $XXX to, is against the And collateral XX, kind of costs. detail, to

to produces to debt dividend cash the parents. long so service, then million and a Jamalco debt power retain as to still in the we facility compliance in million that about the cash $X the covenants, you're interests you debt flow, flows back can Importantly, year plant of minus the the service the to $X equity

So of it allows a we beyond were lot what upside forecasting.

Wes, I you. will over turn it to

Wesley Edens

Chris. thanks, Great,

based the go The our unlimited Just transition we our Talk open we'll Pages this There through then And you of for is into to big assets period fields world, services that to valuation, as some ability the and massive. quickly, and of opportunity gas building unlocking expert along. are company, infrastructure infrastructure is to and I'll what and think for up and about know markets, bringing a you know, goes XX our we this and virtually online XX time. for we very picture natural and have around now is over, the oil demand questions. develop the over it combination those go for at. market solve, complex from demonstrated the short renewables key issues to is

You building, know, everything. for significant. and we're are the we paying designing, margins that Again, results We're importantly, it. from doing are we most we're because are that operating,

extraordinary, harvest the then margins to significant savings some cases to really always are business you is true still economic through in from and saving customers, able benefit know, still customer first that our energy having on. our comes what to really anywhere costs of XX% and view is and pass in their XX% are We the based

asked they know, the we that small, addresses is empathetic to the looking and focusing whether they're think big asked about I customers get It than time. trying for an I good I of and we've it number think are something there's what actually a say your or reasons the been as sounds such from all question solution, the put then solve why basic think been competition us. trying customer I all core powerful with you successful have coming stem tool. in the time but that incredibly cases, what to a And lots empathy I And of important a the as why forward is problems, is the what Lastly, in for, and their many on really ethos, like company. needs, one, is just it's customer rather all being solution forward, up competitive

design, and combine build, pay manage that with for. You

think yourself. we die. you to it side Project in financing that I these go is understand business, the finance where on how projects fully pay was will I didn't into got before important the for countries

ability So a in self-fund thoughtful these to prudent and having the way.

substitute we've in Chris alternatives. really about is is just have As building demonstrated, you and development, for cold talked you hard that you're picture cash asset and flowing, cash lots an at being that's financing built able there to it, it, company, there's of is that you we when look When once what if were develop XX, the no valuation. how translates yourself, Page the and so think behind into

infrastructure $XXX run quite it million If you which run earnings rate multiple, the consistent level, other with point, are take $XX enterprise XX out at you at debt apply other think take ports, significant times related $XXX we terminals, times, and simply so or a where that rate share, in actually premium that value that’s million implies today. terminal a is $X.X capital, of an net billion, to of

to committed plus use don’t convert a able be this a of We And volumes, to as you much know to share. an north then discussion then portfolio. going the at the XX% an look existing of $XXX only If that share we’re goes I how $XX illustration. volumes

the at the In things at the we world, that we big don’t as we’re the portfolio terminal, different in only can look at jurisdictions, markets, how other but to think not more other these and unlimited. that be. I transactions, other When other more around addition, add our add the future countries think capability looking know We is opportunities, I other virtually grow pipeline. existing

is. be higher prospects for feel the And to shareholders. It’s what meant about as price go just an than is where meaningfully illustration good forward it night. this So share or we violation last we all was of extremely our

that, over operator? turn our questions, to with So let’s

Operator

question our Ryan comes from Devin Thank [Operator you. from Instructions] And Securities. JMP first

line Your open. is

Devin Ryan

Great. on questions. facility. guess, guys. for Thanks question the Good downstream taking I first morning, my

opportunity, of positioning just to win competitive set, If I evolving articulated. customers. on having little a data success. expand bigger a to And been more are than like quite us guys lot these think you clearly, sounds opportunity possible, initially center So bit, the a the with deals bit has which

you yourself. think I negotiating mentioned against

that kind complex what the model was full why array and to offer? can So And how replicate? of can services competitors you difficult different the services the than offer is

Wesley Edens

part XX% data Well, data The expense on it, the power. all expenses, of this. of Bran center touched the, specifically center and at is on operating the

And so really, really and and meant the with an of be in an we buildings industrial simplest this air we terms, of of centers, illustration next When really simple reliable power. some firm as the space data XX example. to of actual we Florida to South think develop or five think industrial part has feet, And conditioning then square a different six firm, developers million of X and in the more put together good pad.

that redundant between is themselves the build and happens there the the done differences is inexpensive magic on the to the are that reliable, customer of experience that, data and most to and bulk center and amount and shell are by center. data what But of know inside the happens addition You to power. develop, obvious side considerable design to importantly shell at of the and

think end it so developing think to I for well things come like I next first, be may are at solution we be for case it, are good again, the see the And violated, instead that where back centers because sources, good I it our them, day, of that before, we thing, simple two such all think think on asked of what’s data over And the touched what’s sounds see as those do but needs synergistic. supposed power that provide the people the we to we putting I to a and a over opposed customer. customers’ to help are

of of is, two the very, it the example that having of but and the keen big work do all it So talking to to mean, with really that’s we’re with ability number to I And headwaters end very robust them kind certainly think we’re center a data our them. it’s then we the basic discussions. ethos, yourself. discussions in I all Shannon, using users, are and

the well. own manner, not everyone that different a At see mean, is I’m was out does I afraid though and on something these today benefit from we’re way year I’m but lot massive that a the I’m nothing course, on I because together. developing not And prudent is our of these end as it’s a as – even really having independently there’s there’s and there day, increase figure together substitute there of pieces I do competition. are expenditures, no and substitute things it actually that experiences There it will relaxed a putting more them that is don’t complicated, or ago, our apply benefit and all that success. time, we of because do the don’t over had. believe just about we’ve all But of it those seen is two frankly, to every that what through than that’s for together, not really is and of business. them. actually learn we we’ve of the And doing experience And And in over can no aspect over again. from you there’s just we over lot

it’s those go and then big to to else somebody experiences that, world. need and well a they have pretty for think compete I with as

feel really good landscape. competitive about we So the

Devin Ryan

costs, detail, mean, and kind the of little in Wes. there. does than building just, the you’re if you the modeled were a out. may, Great, impact how kind today this plant forward. risk I urgency detail a guess LNG of initially even reward sense How can impact the for in I just and about moving lower with the thinking thanks or on Pennsylvania just follow-up, of I more liquefier much maybe Pennsylvania lower we go And if as

I’m a fair economic case story. But here. it kind still of upside adds to there’s As of the also sure an amount complexity

So just hear how case I’m as financing whether the changed all? also thinking about well? then the at just you’re to And curious and there it’s here,

Wesley Edens

deemphasize financial Yeah, look, model. we clearly

the So is there’s of dollar it model. associated another with economics in

is the around $X. to six our today, not months just from ship price was LNG. and create Pennsylvania think $X.XX in We would that’s In that started something changed So bring the publicly. when comparable that we we model

So benefit there a is still there.

X.X is a times, $X.XX year. $XXX million So gallons million roughly

so worthwhile of economics is a reduced what’s we but significantly the XX% prices. sense on the LNG of by chart think and So shells obviously it’s very happened be margin pursue, good in you’d to certainly cost urgency

proceed incremental Chris think, financing, exactly excess really as we’re $XXX with generate as alluded, think probably I million in from we I So proceeds, the FID. away it’s capital

So it’s from not huge a pull there.

readily, can that of kind isn’t get financing project You leverage.

that And it’ll we we be and successful. quiver will done. so there they one have think out of more the build the I And in do arrow terms in will things I be think that

is will it And part so material not the numbers. in we prudently and a not our right is It do prescription now. of

from years X, production have own million of it I years XX tons could X, where be That’s is, material, this coming to haul. X now supply. in X so. think, with clearly but X, And think from important be now, demand your the I it it for X, right not we’re and the now, as on could case the is long supply

Devin Ryan

Thanks, Understood. Wes. Okay.

Operator

our question And comes from Stifel. from you. Ben Nolan Thank next

open. Your line is

Benjamin Nolan

Great. Thanks, guys.

relates milestones looking some my and if you Or any My any Dominican I question be to specifically for haven’t that I’m when question what to the projects one color convert curious expect should we first yet been when of committed Republic. might and Ireland the So have to you definitive? those you fully potential Golar, can as give from being maybe or have if those? idea follow.

Wesley Edens

by the events by Yeah, followed you the can GSA, permits followed hands, construction. chain followed by start I’d sheet, MoU say term all is of negotiate in

So the – that’s those of of development. kind path the are

of might have Ireland right the I now. to the is closest view probably probably this and different list on my Brannen FID a and think top

that set promise need have hand in a we to Difficulty] [Technical enhance of We

Operator

is this hear operator, me, pardon to And the we’re able not anymore. you

Wesley Edens

Operator?

Operator

can We now. you you may hear proceed. Sir,

Wesley Edens

worked I on think to Okay. very, top that helpful us, probably previous Well, the not I’m it. also we project of to I list because years – was, very but a precisely of we’re is that the had development sure projects, build is into been not add what we’ve Ireland, planning where to the bought

in is the track. milestones and the a where in path. perspective, completed. sheet, on our are one the we term in is permanent assigned what So actual in And the as good that going think, Puerto project side? so it in about MoU completed I the with obviously, there being achieved, GSA, There then and are from are term that’s commitments. all then down FID MoU, Golar the permitting in two it a very one in very process we actually it the is, into is them anticipate, is binding terminals, La the are four So the on Jamaica, Rico, we Paz discussions we And in converting but the substantive sheet, updating

gone path other ones and on station. the that yet we are have are not The that to MUFA behind others there

We and having. are contemplating we’re conversations

folks. we for how that’s anticipate So updating

Benjamin Nolan

they’re that. it, I’m My is maybe there’s number not, off just different that and number that in question use there design do Wes, envision relates or for entirely for curious offshore, it FSR towards but is to you of XX working with every under Appreciate looks if you’re what number different not of is like kind looking the some of doing a development. shelf Slide sort at sure terminal designs, next infrastructure whether sort this It’s bespoke onshore, and the or Brannen Okay. being I’m of situation? a you’re of

Brannen McElmurray

that. is This take can Brannen, I

you great So emits if of – rightly can a kind observation.

we product sort what now every seen. all So if the one that applies effectively, in type we’ve we’ve situations kind you of at we’ve look of of done, that done think

we So call product, you of our kind or plus what have, product, you landed if then can offshore, hybrid will. and hybrid

of starting at of up of to a we and to next probably that with design we kind the look year, iPhone, developing we came roll where now a now then kind years come point the ago, take we’re call the to X.X out which reference XX would of can in year. what you right, out X.X, moving energy it, design we’re basically sort iterate now model are it’s once for terminals, sort our a it, where think, We

the supply So off and an components, and the standard that you from it then way believe you inside is, terminal, energy about shelf we those a advantage or to probably Europe or thirds do plugged site a construction Louisiana, in then fabrication that, of the control construction. is project to then cost work importantly, either our And climate component, of parallel And you huge site, perspective, from be only, you will ship that’s and or can terminal, construction get us two we in our reliability, have and facility Texas, cost we if can case, on have a controlled, facility Because fabrication. think built, processes, then in our site generally the not skid in in. that time. the quality and your away terms run in typically allows chain it our every but most in the entitlement control of and your and

to repetitive, in advantage come enough goal product if the in going can everything else faster. you. which cheaper standard be would XX%, along to compete offering, with plus, under XX% from So you to because the is and and the makes a be get effectively of delivery anyone months, XX%, a And to you’re where build, versus tries meaningful a who compelling really X start string to goal and between XX extremely standing operate have those we it’s we

Benjamin Nolan

appreciate Fair there. I more over. thanks certainly than lot. Thanks. enough. I’ll that was That’s I very expecting But it Brannen a thorough, turn

Operator

Thank you.

Spiro Suisse. from comes question Dounis Credit next from Our

is line Your open.

Spiro Dounis

guys. Hey, good morning,

with constructing think few more And Or that you return just first yet? out they market ones maybe the starting be place of bit the potential them? gotten projects should if scope has to returns? are should will color power we moved? these you sort similar the with be MoUs And of more about on just the you’ve in provide how or you’re specifically, a wonder If there sign the Angola, recent little plants

Wesley Edens

The in burn the in replace else markets today, one it’s work. that people comes challenges existing fuel, so are that they it is significant have sometimes dirty, they power contaminated diesel projects up expensive, largely happens they something things and actually and to service it’s with diesel a Angola plants, of these take the the

have plants fuel. from in So their some significant they downtime of contaminated

because frankly, to obvious So one something easiest they most serving easiest to it’s a thing the to, field replacement of execute, the which are since it’s is specific. customers strategy, benefits very kind the

up customer. So handful plant there’s converted, are there’s a brand that that potential plant that developed Luanda, in in is one plants new be targeted to Soyo new spanking be a would

to Returns much at needs fair be data judgments the power we’ve the what scope at, contemplated we’re et So cetera in nature seen. of And not think the consistent returns of that’s are We look good looking any this add think business. very the look and environment with we line places looks think try a these the what the we other that we of the in are that obviously that’s returns others, think what we’re also the situation applications very look wonders. could and the centers are, with downstream moment. capital about down of return. at doing road, we degree what’s other difficulty other We like, execute, make we but

Spiro Dounis

be you next Angola, market, bring surprised to guys When quickly then the financing I just by think maybe how to needs committee what’s with category you target? year. that? able into I to that do And think convert the latest And you you sticking do that late hit Understood. still going guess, you’ve are about to guess got?

Wesley Edens

the I hope does, it we by think the will of be goes if year. as it committed end

the condition discussion something developed, that develop use that so you a he you’re there’s standing time able this just, talks types about port star, reasons all and different by we But the starts we that if can year, facilities execute I’d be greatly the from and by process. has of the accelerates the it, when to of quickly infrastructure what helps be Luanda kind think is situation access have next and the One whether always their things Brannen of that in so. we the the accessory good hopes to year existing a our and in like process. position play I into the discuss providing think and kind energy is those it marine can place moves would expectations, we end that to the we plug plans the in say, particularly environment, that’s that of ahead is that of Luanda, convert marine in a believe and to

Spiro Dounis

to financing, and facility, that targeting would this terms may or billion guys you able in into you of tap round financing? Okay, of are to another then dollar go

Wesley Edens

Yeah.

current everything as said, we Chris the put in we as we we the think in we that fund facility, the now. between on can have Jamaica, hand, cash place list Now, debt right are on

incremental excess we of between for ample now there’s over and capacities don’t before operations funders And year million have trust the we of capital the equity. facility. sources certainly anticipate even from terminal have next will to So $XXX issue

So we think well we’re going to on be financed it.

Spiro Dounis

place, exploiting the of maybe operating ginning point commercializing Last tracks on and out makes out versus maximizing getting the how really, going one about operating new more I wondering leverage bouncing terminals, current and thin But dual that yourself infrastructure and you sense? you’re obviously contract, not are spreading business. going that do exploiting or and discussion What’s guys you what up your about here think and for too then leveraging guys for leverage between balance really guess, in the really current you’ve you just think me. how also, there? total got uses, Great. of sort in running where sort several

Wesley Edens

what kind I’d kind on small his have of say, before stuff, developments in very smaller not from the then of but the scale are very an terminal small separating he big that development. of development But focusing talented, in on focused is diminutive a big we the we out all operational standpoint, just a downstream spends lot time it’s terminal Brannen.

as creates how just that’s side. we the on And scalability we platforms. the believe different ourselves. see downstream patterns across patterns terminal we organized side, That’s on also seen, So emerge we the emerge

customers Lucas. a it’s whether in Bay, solutions, of see same the kind we San Cabo, in Baker's needing Bahamas or resort So

it So if in that, can actually to or or experiences, a cash converting experiences place we are construction lot the with very focused existing so trying And and the the on in we’re the then terminals use of a and we’ve to wheel manner. stuffs adding one needs there in and flow, another. we downstream recreate similar think and export on in prudent to construction the

I new to literally the around by the hardly some globe. because in and of it a an it cropping manner respects opportunity time a really decision is a there something up week or that that tell just goes without I And mean, pursue are everyone, focus. decisions takes earnest important is a commitment of in not takes most certain but commitment capital, also day

pursue be those pass things of we whole and more the able we’ll and develop that a to far the without on go pyramid. we So more company, top at on actually to we But as things hopefully, more spreading of take as them. ourselves

Spiro Dounis

Got it. everyone. the color. Appreciate Thanks,

Operator

sorry, our Evercore. question Jon Instructions] taking from and question Thank we be – comes from And our will Chappell from you. next I’m final [Operator

open. is line Your

Jonathan Chappell

morning, just and clear. want Wes guys. on to Good question, follow-up Thank last Chris, be you. that Yeah, I to

said you I of job terminals and the laying do the for everything great the did on construction for at a you committed this under point. Chris financing that financing So just think list. think that Wes, out

size, but from that think perspective. Shannon is pretty sense, a from So I huge Angola volume makes

fully dollars? have what Shannon, specifically? about the entire So move the Well, commitments billion And us would else committed financing you the would Shannon? something with talked forward you you for remind today, need can based covered even you capital on Ireland be or if potential if that we

Wesley Edens

yes, answer it The would. is short

the that dollars, roughly appeared that It’s hundred designed couple million a financing. has right total of basically right. but cost is, specifically, like think the So now terminal been we

doc a and power then of which perspective, non-technical provides and my kind then plant So onshore right. NGL in vaporization fancy infrastructure,

think And as be options downstream will use couple that’s customers $XXX have the many given them. So centers Power financing a we to, that. and we data many, we for million for together. of think pre-power nature of talking we’re the tied the

there’s billion lots dollar the ways choose think comes under project finance. that we of different or whether the to you So facility, onto finance

anticipate moment we financing and time, development easier. more high aspect quite power worth to themselves is build, won’t in building becomes quality, of megawatts customers high that in XXX of into. a a so you a So at that quality, credit but you’re anything’s of scaled are the jurisdiction likely XXX obviously don’t very about the same Also, bit mean, very possible, credit it – you’re much downstream it’s megawatts be I talking

downstream scale that, year, at all that be we we finances next sometime in beyond And do so to up will million lot looked end I and think what development you the stuff is the with a that terms part permits, couple terminal, of eventually how to out, how sometime a in around hope so into can’t of the the at here summer, have the we call on. turns and our $XXX

Jonathan Chappell

we if third pretty Page is new about taking assume XX, Okay, XXX that down said, you makes to for And it rate, talked run meaningful, and as and Chris, XXX go sense. then I Wes from XXX that to that’s not the quarter.

comfort that. about in locking just how for about he five we and volatile has market And years, getting period? you year then locking something massive on clear Wes XXX in very be talked in there commodity a that how seasonality, typically then a get plan let’s for five So do mentioned about

Christopher Guinta

of end simply base Hub that’s just you $X.XX if those, of or as Henry NLG, the take so, take at Hub $X.XX roughly of just know the Henry You in XXX tons you plus math up XXX rate using well. plus

$X.XX. all, the ranges five Now, actually if it’s the if look use between at it ports, you we $X.XX XXX

Wesley Edens

XX%, roughly XX% customers are downstream of our Hub Henry what base. And

the $X $X.XX, or end $X.XX, price on is to of or day, or going of downstream, mirrored be Henry Hub $X.XX picking the the the at side. So it’s demand

terminals years help significant. two we these locking move five and our perspective. to from existing we’re be finance that to ability both that or obviously of And right somewhere with have right now, to of we’ll for we’re maybe it lots with we I earnings supply lockstep. are And the able confident things highly financing, that those kind of And range. in things they’ll talking numbers, updated but stability also, assets think in things folks to, going specific use of the and highly, So five plus generate that do, supply is in there’s am an

good hope So then. those are I update the for we two things a call have you together and time of quarter the we by have good think idea while another it’s a will

Jonathan Chappell

It’s definitely good idea.

visibility, want closer mean, as to – something the it’s right in As be thinking just about shouldn’t we’re thinking maybe to about of I seven quarter, we XXX, something mean, August I be this now. though. correct? is in far range third that in isn’t is be middle clear, should levels we the the historical the

Wesley Edens

use would year experts, I probably and that’s think before more it with as next probably But I’m good remodeling start then but think, the not to hopeful of I that that. X.XX the think start I prudent. modeling date deliver will a that’s place I of I perspective, kind but

Jonathan Chappell

massive the a laid you the on you Okay. into it’s liquefy That would bit makes put of in $X that and even versus thing XXX, return also little a sense. And then that final a clarification equity what need just out or to project.

the more really the you X next can Or focus to how So kind still for for those liquefied possible the on today? that it’s you say now time XX focus right on comments? see just a of a clarify it put mean, further you not months start back of we on downstream the progressing? based to as should burner XXXX kind Is

Wesley Edens

Brannen prominence in worry time? on, comes You right things to now,

Brannen McElmurray

sure. Yep,

So this is Brannen.

in So couple actually issued. our we’ve hand and up been from received come permits we a have of it’s side the but those on on permits, so the plant the calls, air permit,

the site terms So ready of you kind that made were and on could and be if look, forward. so clearing go moving we’re now, grading the or getting it would be for made to of leveling we’re in decision

in So the is probably the think of right XX Wes, is think I to months, it. articulated sort past, as FID plus way about

that day. decision the event made of the have at was end or March, online would in then a in the year you XXXX So

Wesley Edens

we we’ll lockstep something just And so something about returns go Right, a will everything we significant our see Christo do is plant report I we’re terms still what I it hand. adds we frankly, of $XXX Brannen Yeah, more with that, how are and we focus then the to have through a report moved process, add, certainly it one thing. things turns prospectively is let’s thought while not which specific expectations in the it, think, as complexity financing numbers while much intend but to due can that, valuation. in And we that in think a course. think on the the have others. going but net are complete get terms positive out when story, it out. execute has in now before to EBITDA marginal get sorting I on. to it’s in good think the million we’re talk were, I in negative permitting was is excellent. and and We And of the I do we’ll for ahead our But just what it terminals, this let’s that said very But what mean, it fully is

Jonathan Chappell

Okay. Thanks. Thanks, Chris. Brannen and

Operator

over question-and-answer back the Andreini for closing to Alan you. Thank remarks. to conclude And for I like our And does any conference. conference turn today’s session that

Alan Andreini

you Thank operator. Thanks, on today’s all call. for participating

any questions out have free please to contact you reach feel our press release. information is follow-up my me, QX on to If

forward you updating Finally, look at to QX. you. Thank we

Operator

today’s thank in gentlemen, conference. and you Ladies for participating

program. the conclude Just

Everyone disconnect. day. have all wonderful a may You

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