- Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, please standby. Good day. And welcome to the New Fortress Energy Third Quarter 2022 Earnings Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Patrick Hughes, Managing Director, Investor Relations. ahead. go Please

Patrick Hughes

and Energy’s Jake, everyone. to Welcome Thank quarter good XXXX Fortress third earnings New you, morning, conference call.

contains this replay Presentation, we section will also financial a As be forward-looking to Presentations. At the which said, call will We our series location within important risk The refer during review to recorded & non-GAAP today’s factors being filings. Jake disclosures in the to you same statements participants and subheading available presentation Events and by our QX disclosures addition on of Investors measures. find call. encourage the related contained important the description SEC website of these our under is to will XXXX Investor of

to Patrick after is turn let’s Hughes. New Energy. This call. Relations Investor today’s look Fortress at here I Now

our as Wes to Dete, Officer; Chief Joining I well as Wes. responsible Edens, Officer; today the Director our of will Financial Managing Chairman me Chief turn Guinta, over Andrew With call team. Chris several members and that, other activities, our Commercial are Executive for

Wes Edens

Thanks, and Great. calling everyone in Patrick, for morning. this thanks

So as the here deck to morning. to usual, going posted we am refer this that investor I

and up great. along, So could pull if you it that be would follow

financial from was quarter. year. puts significantly just of So It’s QX well the quite quarter four. very that our let’s general, million million, billion up on was a actually start in basis Very, year QX on track page great the us for a for $XXX $X.X EBITDA, a number and goal $XXX -- on productive ago in company. was another solid financially for quarter

the share side We the group them supply with is have our progress details significant feel them, two am are Corpus that. people down about detail. introduce the we Christi equity our team aspects what executing last of talking FLNG talented we doing down week course, to I actually side. side, us hosted The to of the business. very made Chris about about a talk not who demand some for great investors, also and that business, the will we analysts, participants major we other in in got addition, and of of that on only In supply but large there,

On all the demand time lot of talk dislocation it’s is spend on really In that. lot the short-term, to world side, a demand. that know and there’s the about of Andrew about. in a question aspects the and we a of the significant two will

about to in mission the have much particular, specifically. most talk our very have. the the problems and we the provide people needed in seen that that world the of in will dislocations to Europe, the have power company exacerbated Long-term, needs We in the world the that mission only and is places that

we So well. talk a will lot about as that

that’s have billion. goals So Other $X.X sides, is year next of next guidance financial significant for aspect quarter year $X.X great. to our illustrative increased billion both from our of the we

and Andrew now So talk in a right what just will the moment. adjustment significant on that see based in about we upward world here

page at it new for a of side and supply-demand kind five. number look So helpful. on I us This page, presenting new particularly format the is find

see can On the the top you the of supply side. summary

FLNG tons of million are second and upward Lots kick are of X in in TBtus, to XXXX, about the and as XXXX, we expectations half volumes XXXX, profound XXXX. to of volume. business. X of on for this but X.X million lots you about XXX in TBtus XX can what so equals closing volumes XXXX and right TBtus fairly the actually tons in in, then see in tons you a adjustment our XX shift making in terms TBtus year, big see can year right over our and different adjustments in a next then of the volumes particular, last gas, the the So this TBtus, rest TBtus XXXs follow XX million year, FLNG

And take at look second So is realized positions. margin which down, the we our now those on volumes. the that have line

put, volumes, simply if So adjusted the and you margins equals took that times EBITDA.

So clearer of the more transparent I a at couldn’t be way and looking business.

in You of margins $XX.XX. we XXXX, XXXX realized can TBtu, $X.XX for see

EBITDA Our results billion in in a $X.X forecasted $XX.XX.

of realize That should world see is higher long-term. the you happening So of very So short-term, what the the world, opportunities But improvement gotten there. we are each intuition to obviously margins what’s the but are then in match margin years. on as not has these your right? dislocated, focused the

side, $XX, if the you gas for right-hand through those the in the side up spend will to what EBITDA you around look margins $XX.XX illustrative so on in lot sale in ended largely years have high about a billion and at $X.X Andrew low normalized talking ranging is of those is world, on the what achievable and we to But customers other we to done side. the the believe our $XX, again, power with of billion $X.XX time from on side this. XXXX And

world and our there’s inventory of assumes way But the across this we we obviously, hope across already significant is to, helpful. what that that growth effectively think you all the this I portfolio. it that find opportunities our have a amount Now, and equals of that very at looking committed we supply it have discreet in

look let’s six. that, with So, page number at

With operational next the $X.X on news the over operating approximately targeted generator good on we flows cash years flow. $XX Cash today billion. three are side, cash a billion, significant the of hand free

across in we and FLNG three the company, other $X out we CapEx got to plus that backing have the initiatives expect years. finish generate simply liquidity our next to the we required over So billion

the amount what and The down a are then you box question with do that? choices So three significant the is do of liquidity obvious in below.

and Number investments. either make then buying back two, dividends, additional and those of obviously capital or stock issue of all you company can deleveraging the company you can deleveraging one, to some things. combination shareholders, the return number So by

going we take in on respect this is we to with about or And XX have liquidity of and the a shareholders make a and specifically are or days doing We around intend our December lot XXth are, what to intentions the next significant target to dividend path so. analysis short-term have with talked come statement we do and yet is of in to to We the clear over capital. Board what our amount now. our yesterday conclude the that out long-term and about policy the with a particular to both

exercise. a serious it’s So

we capital. As cut our proverbial great about and to sheet at business grow those a once it balance us in capital and you return are are we it’s the shareholders, potentially amounts our of things do the things say, look into when going when to old position to significant puts But talking we situation to are structure, measure twice, capital account. take

to words, a come or worth that is will on seven picture before a be in Page my team. I of to words. page more X,XXX so. is month worth this XX,XXX turn the might If last here the over So rest it

I may that one at very are in up on. is question, look be the of of get in in in a Europe the major we three Europe, have talks love a natural when there and the do invasion that, one this the I to gas started in carry in a of factors that margins think So Asia, in in cheap zero XXXX, much And something higher a you most moved era obviously That’s I out to My years. mention and and the But out watch actually are economically. in the in to down normal of right rate, to settled get to scaled look do markedly dislocation policy is the at chart that shape normalize, this chart higher Most what so And actually things particular, on happen that other past, relatively chart things when what a the importation or months the that. course, level included change is to own have impacted and that LNG other. you higher indeed COVID is it think, really, yellow of I for is will pronounced see could Henry that the once impact been rate. timeframe a form country, the situation chart that, JKM It’s world think in print they around in with actually settle them keep part to that lot this or place caused has us is But what is when and marginally outside or impact. the But box, you in has we this They particular, the Russian new back you the perhaps, in crisis we when prices it in is could world new think, the this occurring could balance a is a would because the about is see, that the the there maybe fashion to China, I’d change a for end notably actually developed in you, a that we start eventually gas. this what that energy, perspective When the normalized? nine will is normalize, of TTF eye is actually carefully. about normal your expect number Hub significant on the for overall. you this expect big out really the about spike. notable margins that continue not talks dramatically you Asia will a there I many is, for business, July indices something for something are if obviously to and imbalance in before full this markedly. has step synchronized significant world. is, What’s thing today. The here, add

massive that second. regardless think the chart to States, you a keep and what’s last. here will is an So billions United I about talk there and Andrew happen interesting have about to so a developed this are energy. need different that is over these of even world power in course, that many, for turn many about Chris. that But eye need and a Europe, desperately it just Asia, of your the in Chris? outside on. to something going I in But markets people in this are the demand about Europe, of will

Chris Guinta

morning. Thanks, Wes. Yeah. Good

to doing slide fast increase it you our I portfolio update XXXX. nine number you let the slide, XXXX see what to are direct supply and portfolio will on this from LNG On me can actively our and developments. specifically substantial in Let LNG we through you growth

contracts supply X metric on per year XXX TBtu When XXXX have be current XXX this coming went or you in TBTu we volumes, will last approximately XX to year through Our the from short-term. TBtu additional layer TBTu online an XXXX. XX in tons annum FLNG

will the unit to XXXX. and remaining year first end so TBtu turn five or for will growing two operations than of then XXXX begin next The XXX in TBtu volumes from will the result less XXX May now. June This in September before years XXXX, in on

number about progress slide in to turn let’s LNG. and talk the Now XX

Corpus week many opportunity an in glimpse have As the last attended, us we a give and you of it’s made. Christi Investor you know a in great to for event investors of hosted we an progress and Kiewit shipyard and Analyst

FLNG highlights we and asset to completion in in Number XXth team excellent nothing March are, efficient and be deployed As on accountable one, doing we June the making and on difficult, The expect we of and to are overly then but two achieve or complicated May XXXX. mechanical mentioned takeaways operating last and that does are it on the from the to progress the event the quarter have organized, COD another. week one the X require and is site, key

deployment the slides. of couple various options, we in Second, permits a locations, for we our will outline made including in progress huge which

As rapidly mentioned, is our FLNG approaching completion. X

where goes the levels picture that is these On that smaller first Each on the rigs. module onto third page, Module of then rigs tons. a modules jackup and will one a will the lifted large have this gas the in the be for Below goes jackup picture accommodations the modules treatment rig. left modules modules showing and one utilities installed. there’s under for the of we assemble the Module will be high, levels the rig. two completed way rig on X to to will where will goes when liquefaction second top X,XXX over we of X be

demolition We complete and has enhancements we upgrade completion the and the have operations the foundation, well strengthening Further, of once as whole as a systems. the construction deployment to completed and of nearing for are the marine middle are completed. and in been the of overall the FLNG preparing

our as the asset have that’s the is We to hired test system work Once working in completed, team commission commissioning possible. much as the of we immediately. to yard activate and can

people Regarding talked installation, work FLNG begun Flip slide these immediately site, it’s pipelay, expanded already we spots, to operations of FLNG our that on once in things has could have and to XX ensure once three training begin are completed tie-ins, operations. before, have we to the locations And doing be six is simulations deployment riser in we all itself, subsea FLNG order to we have different team on units. but ready mooring, to which our we asset to options about accommodate up operate location. and the to to can

As President pipeline. the with transported feed signed the Director where up Obrador meeting binding were U.S. López the to -- CFE, units three in into for Mexico Altamira. deploy City Mexican we documents at we Wes to via would Tuxpan for waters molecules another gas mentioned, This Sur de utilize another of and

permit have review. applications are We those submitted all final undergoing and

this by have permitting We support process. relevant vocal public agencies active, all in

the permit We expect early complete year. next to process

pipeline where MARAD to our application we is gas box of existing and would assets. FLNG from our West submitted location offshore. unit the This install utilize two Delta reverse XX to infrastructure second onshore flow again The

to October lifted we XXXX. to As expect many and of of half track This our draft the soon. environmental was on order on in permits study EPA you know, final our us puts very stock clock impact XXth receive first issue

then innovative location summer will complete third seven partnership XXXX. in The and is field. Pemex NFE to complete wells with an the Lakach producing begin

gas We approximately be will of sure number undeveloped will semisubmersible use our X, two-thirds into to stranded reserves feed this to XX. proven Pemex gas used speed model, which and as the use captures which NFE sends but remainder the third drillship. will the to like to Sevan LNG. remaining turn We for gas and slide and send shore really to for the gas and a to please FLNG portion for Turn

this complete. on Let’s each and months two three where when page mobilize, provides are week last to These schedules they of simplifying which are units about COD. page are it completion this Corpus, roadmap design a months install for a then but talk we in of be shows dates to the they building, takes The before mechanical of and result and the being the built reaching between with the units commission focus repeatability. to expected are

bulk design from have on hookup a using providers and and or done FID month X each line to time to two obviously, to fabrication unit. COD. of is X, one months the to of mobilize all a on to we three-month can the marine install using to we all the process. ordered lead is months and module down XX future and uniform items already the of months have about XX the about same to common in months commissioning are modules, By procurement XX FLNG months, long two-month Further, engineering told, The critical XX each on unit be the make units infrastructure we units. the We ready is across through for the the

equipment, for Chart turbines, Shell Baker cold marine for Siemens Hughes the box, gas cetera. for for compression, [ph] Gor et So there’s

that, the turn will So, Andrew. to security. LNG current see but reliable our you need energy to us boost growing is years. two also over With portfolio over the growing of only downstream supply conclusion, can in next expanding rapidly capitalize to These not dynamics for will and market fuel on global LNG positions it I perfectly

Andrew Dete

all rigs Amazing was have be to be team Hello, the week last side, and important us. everyone. and look you in stand kind in see my commercial those lot [ph] And parts to It great moment a and done. Chris. a It’s on very of to what Corpus component Thanks, to with them. fun of the Chris and out on role on about lifted for the Christi.

So as Chris X just in of the went through MTPA NFE is new creating volumes short-term.

to takes showed XXX X.X which, MTPA X.X MTPA, our that So Chris X as MTPA from portfolio up rate about a by TBtus XXXX is total run on basis. to

what generally these want to way on is you beginning globally, am since commercial good we minute creates selling returns. think strategy the strategy I sustainable with that to frame is So power long-term see he’s in same business that affordable a XX our mission do core spend And will a to in a duration a we the now expanding long is access and great of page had mission. volumes what line for both the which and is

page side, we of And an what chart the so on the XX showing is really on energy density world. left are

is world by tagline of electricity the XX% XX is the So consumed countries. just

that consumption. that we we so of energy these in And that’s way energy markets towards every and what what are day one only other dense believe less consumption, see going is are these more kind electricity countries more and

of think about U.S. have and But this. Wes followers of and what consume. consumes a consume Jamaicans the I we a I Jamaica long almost know, you tenth pay consume Kenyans royalty as to if in say what to tenth to about

we today. case, it a is by we that opportunity a is by places supply, markets, affordable affordable what provide time which market, that so to supply. see in curtailed that in only these and is is what in And see demand we really the and have huge spend And tremendous more don’t power

in we what right at people of of years when that to don’t so Europe a page, have this side redirected XX first time the of and EIA, on energy access story is That’s flows generally for coal And electricity, actually in that increasing first the seeing canary the data bit they world about about the from number on are which look the time broader of about developed the access data is the mine XXXX. to world showing towards they new are collecting electricity the being short energy basis. a a in being global and of

what why we margins sets the today term, really important over can it’s want we long we and integrating insight think going framework us. on continue achieve sustainable supply opportunity differentiated this how we So that I the believe LNG to give is do what by production, think our long-term. to we for with power to are that. the And is to some

to So really is flipping an NFE XX. integrated power page company today.

different supplied converted, power megawatts X,XXX assets. have power built We eight to-date over and acquired across of

here have And so we truly want forward. we a downstream dimension background we opportunity Selling going business. done what and is is to power what as the provide on some assess

all loop, on integrated have consumers It’s and experience has even through basis it’s are on the adding been a typically consumer jurisdictions. to across we resilient and credit necessity it ones extremely and our downturn, supply power. all paid very of a more Power acquired difficult replace a service to to and been operating, it’s the long-term in that now these more countries time credit global off to contractual we expensive to effectively perspective. are and provides economic positive and to close businesses, these very it’s industrial turn a way We basic we do down are going from

today over are are the to either operational we forward. going the really or we going to and is that an speak what an related of been X,XXX So megawatts owner do a to going supplier XX% NFE of volumes have power

So flipping then page XX. to

the On Chris of the talked left side are supply about. the dimensions that

will be new XXX be XXX rate TBtus of kind XXXX. contracts So spoken current of for is on going in about power and rule demand XXX basis we run use will and be X,XXX a that we where that to are supply. for so supply. megawatts XXX that going TBtus in that’s TBtus Roughly, TBtus a new our with megawatts of LNG to XX are XXX about translates of that every to that TBtu fill of thumb we

in side, of plant plant right are XXX XXX we South megawatts in That’s development the and On power on new in Jamaica. Africa power those megawatts. in Barcarena, the of in X,XXX XXX-megawatt our power already Ireland, megawatts

growth We a in also have to markets pipeline over development gigawatts. X

up are the to so what is is, what demand MTPA, want to of about as we dimension downstream we opportunity us and of development integrate it XX, the over take this that to power that of already done On and margin page size we in ramps perspective. before And trying overall in portfolio I to front is have what show a here half on volume. want actually our opportunity do X.X to with from that that’s supply of

So competitive power, we the in and page, starts it’s about difference a competitive long-term that the selling PPA growth between this of That’s plant we on $X.XXX. Typically, at a the That there’s also it $X.XXX think we is around around kind their think of is of but payment in or rates. of is, either value these build when the cost power. what costs the the side what capacity power left roughly to me per CapEx, kind which markets. really think about return world on

$X.XX we cycle hour. per we megawatts simple see as XXX long-term an So power kilowatt power, about rate of for all-in can of for sell

heat Assuming sale $XX a of per X,XXX that’s a about gas. rate, MMBtu

$XX to production of the cost for what going believe we about and a term. long on which $XX $X also about going line MMBtu. showed of $XX earlier, in Wes That’s margin for $X with transport MMBtu, is Our historicals gas FLNG total to leads to plus

billion XXXX our looking margin, margin goals show of get as our So to are bottom the page showed back margin. rate in $XX we earlier XXXX, that at run $X.X XXX this we we that’s of of to page, in to TBtus

looking with the line in we is we forward. going are what in past really do to and have this what so done And

kind Let how of and page then there. XX to me get address we flip

us that’s been about it’s because about basis. the in unprecedented So for there’s and a long be and amazing to LNG for position, different effectively amazing the short-term building opportunity time an an to on supply market past, thing opportunity is business this today a have this

simple of of MTPA a we actually left metric, one new effectively XXXX we is of gas zero. XXXX, we those XX there to modeling XXXX, been in pipelines, the side it. page, for follow doing to gas which and ton have do was in plus Russian Europe back cargoes the variable in On X,XXX you there highly and LNG it’s through detailed problem, like terminals there’s XXX you about this, in LNG need go of who supply to but -- was MTPA a balances XXXX, and That’s replacing of XX to expect be kind

And carry will pocket the continuing so but on showed that believe about XXXX, And there’s is the I a lot which short. is graph market be we the to what in be all think, the which short-term opportunity. when previously, our be right, is around to happen said we today, we effectively in really price one will

in in little position going to are because So building want terms we goes we has LNG very today over opportunity this of going into infrastructure Europe to describe a the some how further attack are Europe, just bit time that infrastructure to and market. it integrated regas substantial in to near-term. with a we to LNG you is and this opportunity out of Page power. a good very these we XX the how connected are term long understand details to

year So X,XXX price. a index on trades the slots there’s an approximately cargo LNG about terminals, market XX and

TTF. in It’s Europe network and Netherlands other So at that in the to price. gas is the gas basis in countries trade TTF different the networks the main called index the effectively some

two that great of is got we most very us is different thing the things. Now life for NFE’s have from

existing have and have a price. got got market We centralized infrastructure we

an exchange a So on centrally individual We at go we effectively don’t can to cleared find index sell price. buyers. have

in to And the getting choke we this so new in and we are full, There with the new the which creating into vision. the will expand this that for that Gasunie capacity, the to well years. as suppliers places available not But first infrastructure other infrastructure, enough anything, next probably, terminal for are there market very Germany, especially make but other obviously, is those of is there be be that now points like and to to supply MTPA turn will to online gas we that’s some and Europe, be Russian us really regas Netherlands, Russian partnered here, to new which Again, replacing Europe. XX terminals to probably which of in getting tight since for few XXX Italy more able terminals, flows, highlighted XX are terminal into try dimension Eemshaven infrastructure will new opportunity.

it the It experience a the NFE and infrastructure short-term is which returns. and will that us be into sell build that something existing market expertise it’s price, And really is competitive to provides and provides believe at great Europe downstream, real so a power way basis, long-term as what supply, do. LNG On the to has the able we is to expand of advantage. using we to differentiated margins the portfolio competitive we giving service

to And so are deploy that’s little more. to bit talking about we how forward information long-term we Patrick. a going to look and LNG how Back more all are these on looking volumes opportunity the and

Patrick Hughes

am Thanks, XX. Andrew. on I slide

spend going hydrogen. We few minutes to are talking just about a

are in what petrochemicals, a zero during and real plays with will a on the strategic kind we cornerstone as significant power, number So hydrogen impact of of as I actually, refining, the it of are I’d those a a we storage look business, we areas said manufacturing we lot transportation, a like Wes we think continue third in But we opportunities decarbonization. clean economy, play role a saying progress that strong has cement by we a sectors steel from make in In recent to are the energy and start of guess, at of And the have abate to what months, particular, tertiary and calling can you very quarter. -- many renewable and things difficult continue hydrogen areas seeing, industrial believers big future. hydrogen role like in where perspective. there’s related in also especially secondary opportunities times, to

we really days clean said, life. of a that of hydrogen seeing are to early economy in come the really All

talked with over about a start and will quarters and back asset other to Beaumont items let’s to turn I we step the we then the Chris. few past before have call So in through you

space true industrial So we are really scale Beaumont, hydrogen a the plant advantage in green with proud in -- first-mover our to be Texas. first

kind that hydrogen, line. X,XXX the a initial green inside hydrogen customers so property hydrogen refineries facility, are lots tons hydrogen, of producing of per four producing today At we the demand is which year. will our others right outside our of industrial sense for both of activities, We operational, in and transactions put refineries To are XX biggest tons three in are is XX in it right in many or day it its Beaumont familiar and use and a area about with perspective, our immediate which be be and over expect and U.S. the natural again, lots of big there, in us it have of tons we vicinity just XX,XXX scale. of that capable a XXXX. the are tons of will itself Southeast green level, that day building center which XXX-megawatt per becomes once in from past in Texas

be day times tons to what is X,XXX alone would over produce per our initial XX in able our So phase. plant

demand immediate of and growth potential region. plenty the plenty So in of

electrolyzers the hydrogen. essentially As deal many we manufacturer are machines the secured the the including quarter, that make They in equipment our of lead Plug our during with facility, long the our Power. for know, you of

with actually these see you Entergy the up the on of first XX, course, an The to show helping of with our in as we power connections, provide other will been and slide of great units potential we site partner start we that XXXX Also far. There our agreement at will during is to at transformers on that are a and assembly said, have site. renewable areas with collaboration to Entergy, in the high facets operations, agreement the the looking and quarter, they them. side, are multiple XXXX. I the also but power so signed complete site

is investment in energy history So now really big legislation is The U.S. know, going made to to this clean it Congress spur Reduction the transmission, best electric projects, build you major than be XX, a climate the out, on hydrogen years. things other largest of probably, annual of capture Act infrastructure, Earlier anywhere the solar, possible. U.S. actually storage, in investment the next is toward expected the many the clean a makes so-called that more turns like of as of investment spending slide trillion ever known and as XX place in of tripling as made the year, to network world. commitments of will really to the the infrastructure $X over this and Inflation hydrogen include That all carbon

our which kilogram quite are credit, allows $X our produce per from way. focused, profitable to really We clean scalable green course, hydrogen hydrogen very on industry profitable business an marginally of hydrogen to economic and in production and takes the

So is you go XX. to in page slide the which section, hydrogen the last

plan last capitalize call, U.S. on and mentioned, other near shared in call. are project together is projects locations in the our we multi-asset particular, here separately Marcellus putting around the What the working our last clean on Coast infrastructure we our doing a are pure-play this hydrogen business we on in is really business We to Gulf the future. As and in

continued for have Beaumont learned several pieces last a and months, we together the we lot. have the put to all Over

to really We needed. the those optimize actually very hydrogen for customers, including demand hydrogen to being where they projects, about thoughtful applying future our and in our is, putting where approach place learnings are are right really clean these markets

are are building the Beaumont. the all about is in Beaumont to stamping really So country. out and all that good things we and in put of be five of expected leading this scale of relatable initially industrial platform hydrogen we the model project our equivalent parts the basically terms, clean using kind business the other To

So XXX about this you Beaumont your is year XXX-megawatt to see facilities. on XX,XXX tons megawatts about equivalent per that number or screen

more this on see, there’s much front. As you to come can

our for touch with will soon path separate again and of We in you. capitalization. expansion key commercial details Beaumont milestones be at to over and Chris,

Chris Guinta

will through to run performance quickly us financial turn XX. QX. Please I slide the Patrick. for Thanks, Great.

appendix. is For income we when of $X.XX $XX the and the approximately on $X.X can is for find million, share billion with per terminal EBITDA a Net adjusted another segment $XX had ended which in three which months The million excluding quarter, million segment $XXX September more about onetime items. ship XX, million, you from $XXX the the detail XX-month basis. trailing margin operating was

the quarter This total long-term. excess did margin do X.XX on both a obviously have per Move of in sold slide around MMBtu, is averaged volumes, TBtus to is but which over which Hub operating and we average XX. Andrew period. [ph], what we costs is effect an which to in equates Henry saying can obviously revenue an of pass-through, $XX XX

sheet side it can of you it XXXX now, versus picture. and We as different see, as it’s XX, are the by showing balance a side where at a is June completely

result M&A executed a assets, of on incredible have initiatives. worth work fully of funds monetize As promise growth which our over our to the teams, we $X billion our of

of bonds We have respectively. just corporate X.X%, at X.XX% debt two to the simplified tranches and

consolidated have million Jamalco position. flexible provide us also of $XXX NFE, sheet included revolver which our non-recourse here. credit asset-level we the currently and cost We debt, it thus balance our have is a which needed low undrawn cash lastly, in but And an given $XXX as to is is million access letter bonds, facility, and capital

with in the is over capital. see, As billion available profile strong liquidity $X.X you can

use an completion, ratio are times. with trailing than talk $X.X X we will of is or our them. seven online upgrade this we well slide the to coming progress rating think slide We and to If XX, goals turn made have for you the agencies weeks. to financial we on in significant positioned debt-to-EBITDA XX-month have mentioned, billion, our either and to look EBITDA as with we forward less nearing I terminals approximately speaking Today,

on As comes online first rapid under FLNG second FLNG our online. deleveraging you bottom will time the times X below will comes left, There as later the asset graph be -- see one next with leverage each X the can year. be we is at once unit

is plus page, Finally, capital of facility availability at cash combined the show the the we our the right $X.X initiatives. our bottom hand operating flow into billion, on with cash which working fully FLNG funds

a hours customers XX%, and in XX, able facilities this asset continued no back and hurricanes up reliability incidents important Finally, to focus of shutdown teams rate. remains least, being Guard. and not In clear Last activity that Florida excellent TBtus our slide notice incident during QX had within to X.X QX, above were and the effectively then over but note back shows on XX world-class running company. that, on With South this and we to maintain while fall XX we delivered the operating total our all turn Caribbean operations and safely from the certainly Coast Patrick. I to call recordable our safety the had approach

Patrick Hughes

Chris. Thanks,

couple So, of Jake, I a think, we questions. are to take ready

would instructions to explain could the great. callers that the be you if So .

Operator

will course. begin Instructions] [Operator with we with Of Nolan And Stifel. Ben

Ben Nolan

where. on like just to what floaters would the that jackups Altamira appreciate in I for start understanding and FLNG side line go I first It bit I wanted mean to Yeah. Louisiana. the would a feels is goes guess here. Thanks. that the the time little

to the all time all, that like of lines with does anything of that? sort right, First is, MARAD process is at change it and approvals or respect and if it

Wes Edens

-- see Ben. The Government we Friday, with in you Chris of Mexico on to Corpus. said, Hey, our Good signed It’s right tour last agreements week. the after as Wes.

Altamira, that place units so And great. allow have us which is agreements to we into definitive

One there’s So it. is business, us two that a a two that place is FLNG building unit having put certainty say gives the lot the of to and matter. with things that

about And so of different opportunities feel the like first Mexico done feel and we situation there. our this have many we great in is

we Second, engaged process with to with MARAD, them. respect have very a

team permitting in at them point. Our is with daily this interactions

once while satisfied a start the permit them along they clock they by detailed recently. you statute. grant they can that they you process If stop you they and responses We more went there’s have ask As the this to line, are XXX-day have questions so. here to basically the have through give know, period then done clock a that exactly you

really first Altamira clock has of they these say of units. candidates point, sites, clock feel of restarted project end the we which about, of assets they But because the That deploy a They allow I’d and So would sides. the to those stopped both very in diversification year in for are of bit to be October, August. the most further a the great we at middle think, lead at that. would would along company in the goal the our modest the on little are in active applied next so this us for both for incremental a to process. addition give units be

is. that’s it where So

Altamira, later So in midyear I’d in be one we say now, the Louisiana. the in year first second right one would

Ben Nolan

all? Okay. Louisiana, process the in change that And if a it’s float does at if or it’s

Wes Edens

in permitting really are floating We as platform Louisiana. both the fixed rate, well the as

do to expect both We there.

out, to right? this. I So on very try we either as Chris be laid or, So think specific

to pretty got We view calendar a on. as the have goes detailed that

November March, then thereafter. due the few first of So in and one yard out one months second in every

liquefiers lot a of infrastructure. as said us the of in terms gives nature marine regardless infrastructure it the the So them of the of the install we same before, we substance are the on. flexibility Obviously, of

Ben Nolan

update I stand one. but Okay. I at extra it has Perfect. sort it where real just does think moment? an on And any get and on quick, been the Ireland, of But off,

Andrew Dete

Yeah.

make gone We in that comments in want of published we power, things before security supply position questions by LNG extended to a we review we and sure other through And that recommends sure but and make confident previously There’s have which do now the definitely been has will and in the the are so as final well. review. of gets good the our are that working the day think have been permit of are there. and bit. a Obviously, dates megawatts very the to we terminal XXX some government here there’s year, that LNG the happen. that we clear government includes about permitting are are both it Ireland we finalized public on answer supporting to collaboratively end kind authorities the every So

Ben Nolan

time. Andrew. for and Thanks the I appreciate, All right. Wes

Wes Edens

Yeah. Thanks, Ben.

Operator

to Margolin We will now Sam move Wolfe with Research.

Sam Margolin

morning, taking questions. everybody. Good Hey. the Thanks for

Wes Edens

Hi.

Sam Margolin

converting prepared that’s you in great. You operating this to margin are much the remarks year and pointed efficiently cash more that out

needs you out. or As you and like anything major manage liquidity happen capital about how a little stand Can you with up working that the with needs LNG FLNG and how the things as capital to change positions in become production, to talk producer? to working a sheet come -- financials some bit balance respect

Chris Guinta

Hey, Sam. Chris. It’s

big So expect capital short drain at to a working it don’t we be all. is, answer

Louisiana right When being like In buying in now. sort existing the paid we supply grade of prepay, we of then industry we baseline suppliers gas not gas are that Pemex. the in be actually what in now, are from that investment fact, paying is, supply, are LNG the off function feed taking Lakach, cargoes have case strictly the is in the common right people done and contracts a start that’s we of from the each feed of arrears. CFE have the And we will or in will

is I that which is at not capital mean, the obviously, equipment, will so big unit, able the The feed and goes you be gas spend, pretty into its on all. big working to be expecting power, turning positive it’s labor cost in functionally the expect of that the I short So drags order. actual not of

Importantly I revolver That’s we the of which capital. upsize facility, flexibility, mean, a too. us to lot LC allow to the note, cheap [ph] continue in

Sam Margolin

just That’s follow-up. fantastic. then Thanks. And a

I perspective, indicate, works does. at, margin A margin, lot LNG works forward think $XX view after yours like $X as a that capacity the a margin, fully of a slides say, As capacity XXXX. lot you like of but to this TTF the less at -- supports curve $X like

business, to is, the this you question of in deliver to you against Thanks. advance you as capacity advance to this energy really want so covered competitive strategy places? And competing term as sort be do energy how this

Wes Edens

We detail world long-term dimensions as mean, of to was. reasons one what I go -- view side significant. what what we long amount the the creating the and margins virtually supply power a before the of demand are the path Yeah. that we satisfy own of The on inexhaustible in Andrew through these you show did company it. is are shortage so and power the of crisis order side the realize our we in the of economics the in the to other had started are on there

or $XX, producers $XX and look you $X, $X, -- materially you our They If of harder. at them the at materially are the gas higher $X, large $X, higher. because obviously, of $X margins are published compare to margins margins they it’s

You terminals. build to have

have You infrastructure. to build

plants. You have to power build

to have You operations have it margins everybody supply for If it. them. easy would high was to make

and side have on made have to so profound successfully. pretty done the knock we a would problems people’s solve downstream effort So

think how that tremendous. has the things is actually the of profile downstream underestimated successful been is of credit of activity I other is that of measures is that the one is One that,

in we parts So the pandemic lived global a of through still it just many of world. effects the feeling

options gotten. have do We the have power. have were of have not late they any affordable payments we hardest a that we business them. provide hit dollar the in, critical, we energy of the among and They single to from economically have the areas do they and have that is most Mean have service to

of and even generate sum on being your you is margins than significantly a personnel, capital is commitment on problems So end up and resource real-world are it complements that the and higher portfolio, those rather just on downstream you the and solving all with things upstream wholesaler. portfolio you though on time more

terms are So are that’s and things, see the retailer, very the so. that the it to every now we economics we drop of to not attributes and big level also accomplish wholesaler in benefits credit a what commitment at of just also a a in you which visibly that the mission trying bottomline, are but can just the

Sam Margolin

day. Thanks much. so great Have

Wes Edens

Thanks.

Operator

from Our Evercore. Morgan next Sean come question with will

Sean Morgan

Hey, guys.

Baja, like are to U.S. than holy grail is people of export bit going to generally that. some think, Altamira, servicing of DOE lower been potentially gas because which I it’s a Henry of where application Build a more the for priced a So able off interesting. exports, guests view from has be kind that It Hub source you for of looks capacity gas the kind of there’s lot [ph],

of So sort guys the that wellhead terms pipelines Gulf? out when transport competition you gas little to think your a gas existing play to to of jetty, in costs have couple of U.S. export relative evolve the in do there’s think the about you where further, getting believe some you a of I this

Wes Edens

in the XX% picture, developments producing right world’s that these building we jumped X% the list world obviously being that of are whether we costs on exist today that the of off five the We with leader are basin produce think I fairly day, gas there’s produced of the, economics Dulce differential, Big different sea. There’s that Agua like, top the the world five. other. now, But whole there’s in mean these. similar, land, Altamira in of of the today, transport immediately is costs, it’s in down reasons. actually host at personnel are the XX a end Louisiana. bottomline to one or actually that producing is the only in actually an units versus Coast LNG at our and competitive we the LNG Obviously, highly we additional place

world That incredibly I IP, the think, us makes that So leader. is valuable.

directly access are gas implications of that’s installations, operate increment gas, are we conditions place to well stranded a using And that the long-term is incremental in of which extraordinary. allows we next offshore. we truly order We those out to for actually actually existing the the the on So, ready equipment that gas working productive a us because that think build a us the from development benefit U.S., in think first pricing, buy that good we Pemex and there. IP we to time that’s doing will do that’s of the with are be source in it’s it’s The obviously, what to first terrific reliable that gas from pipeline couple and business. the are

we think transport. a either of the think well question direct on it answer the but basin is that the that gas that as when both but stranded side would very standard very, minus it’s source could your different are result. be and of the into step-by-step it, roughly could or to a analysis, same. they not be take account economics There incrementally are So plus But actually actually you a differential, to as next we be leg true differential

Sean Morgan

Yeah. one And All follow-up right. That’s helpful, Wes. Altamira. just quick on

week, for we talked So capacity and in in I think export X.X application total. think the about is last X.X I looking

the you expand just on pipeline want project, that case the the maximum that in MTPA X.X, also, basis? So accommodate what’s existing could sort Altamira headroom a to and infrastructure the is of

Chris Guinta

Heading -- this Chris. is

historical to use on that pipeline above right. The that X.X XX%. there’s the capacity that around X. we bit little want day. yes, pipeline exactly So, active headroom, excess to public is is understand We indicate B a discussions expand The filings capacity a

them So has, doing the their of also globally. -- being the really which of as then solving LNG transportation a problem here them helping what are with NFE we partner costs is is some and defray a market we the firm

Sean Morgan

That’s from Chris. All it right. Thanks, me.

Chris Guinta

Sean. Thanks,

Operator

Jefferies. We will now Burwell Sam move with to

Sam Burwell

parties that Good guess that next terminals of sort in come nine due are to Hey. And that morning, XX, guys slide and the and I as you to sales today, online? I terminals some seven to subject, guys. terminal given flexibility third XXXX that really year got well, continue you in have selling wanted mentioned have to on on hit you XXXX.

be? you and and what those run through one seven eighth could one are what just So would ninth then the

Chris Guinta

I am talking happy terminals. the you are about

downstream about talk kind don’t opportunities. the of You

Wes Edens

Yeah.

Chris Guinta

Old So Nicaragua, San terminals La Sandino, [ph], Santa Cammobay Harbour, Puerto are the we Paz, referencing seven Barcarena, are Juan, Catarina.

us South takes We to we expect in the are that ninth. in seventh Ireland in on to which complete from discussions developments and the Africa,

Andrew Dete

Yes.

I to On and will totally but question, here understood we XXXX on there’s I Barcarena couple question, the Hydro sure of contracts turn we the contracts. being those the first on Not through come -- big think one. Norsk continue a will

think volumes. of are showing we rate TBtus kind of XXXX I XXX run

between part So where bit now got a a of of we big end of with have where XXXX we Hydro kind Norsk bridge we being and the are little that. will

Sam Burwell

your talked done me much probably process repeatability on that how How already, you you pretty forward, about and you That the guys Thanks. remarks it think prepared do have know what but Q&A characterize be, place you have U.S. guess Okay. LNG the learned? the gone in a the follow-up of up units. the experience scale I it because is MARAD answers. would quickly I thus given process. far, be and would to the it the more first for five strikes you fast great of could going Mexico Gulf beyond and these it’s

your So thoughts I that. on am curious about

Wes Edens

and with Well, responsive. of have right? agencies, different them professional And bunch process been MARAD our the involves a interactions highly very

tens which the Gulf, number are have what So fixed probably have done you what both is, in When they they and in responsible it’s of actual permitted, don’t thousands. look that. done like XXX% have permitting we for they about and know historically, to but the in is letter feel all of platforms are script, in the obligated they I feel the do, great at what they we

So this group. very experienced very, is a

are that liquefier into they we it. power are A you thing plant, doing liquefier the that what because relative we turn has compression to Obviously, LNG. putting on really so a is not that gas what is different to have done. And a need is novel

difference, air the a professional. incremental engaged has been difference and So appropriate we permit very one their and that’s response and but entirely that it’s modest is feel

this expect variety there’s putting the have it to I Louisiana, And follow-on at, it’s marine and repeatable A, as be looked in great. cheaper places to modular approach And be, been is think to and and so it’s highly liquefaction if significantly the with Texas, that both that we think faster. building successful, be that in have developments said, and logical well on is, existing all we locations a when it which as would we infrastructure of significantly different obviously as but

today. And that ratio so I is of when the referenced what X% is XX%, it

it’s the That U.S. over off of so it where is sense, and for i.e., likely, not installations to the This because from likely. the makes XXX% us cheap cheap this over think will gas. very abundant numbers much and those very, time, coast go one the shift other just allows gas I There to and abundant is all and place simply is better. world. cheaper faster

So it’s great.

Sam Burwell

color. the Appreciate much. very Thanks right. All

Operator

Johnson Rice. to Malloy with And moving Martin on

Martin Malloy

I the but to offtake the I that Obviously, And that are Good about I a -- lot on thoughts thinking heard area, believe in how have industrial a morning. get hydrogen I’d load facility optionality. zero. there’s like your question you from that, of plant pipeline assets storage has and also down about hydrogen about can pretty underground well. that’s I have are terms take milestones of up? thinking got And Entergy as some also, scaling how you a and related large. in in they power and that to They proposed guess,

Patrick Hughes

Marty. Thanks, Yeah.

talking and hundreds then pool of So am the immediate the miles. a a diversity bit vicinity. There’s of within in about in feet are literally you of right. couple offtake I absolutely quite within

refining X,XXX So -- you which the community producing or among you four per we that of demand day are the the the three before, of tons touching on gave again, right is is so number there, are sort just hydrogen are I XX and tons.

a imagine, hydrogen, you pretty which and ton is of of are at the unique we XX quite a can popular day lot green offering. as So looking a folks

is as and mentioned I well. also Station, in storage transportation. are the indeed And and about talking then the Advanced need they time on power have you Orange on side, Entergy their over with significant are the the region County working needs called Power a the facility We

of and the hydrogen Spindletop kind like move networks have to you region. existing things of the number So pipeline all a around other

for units. trying a do it’s of us phase. what basically a it’s at is and largely options just So of news the to is -- function how we because good scale, electrolyzers fairly first -- just adding lot to look And then to straightforward about that are it’s optimize

and the the need hydrogen for more picks demand we thereafter then units XXX and in can a there’s be the up will region. of So as green first XXXX add

Wes Edens

Yeah. I inclusive zero. though are is credit you something producing bottomline the to mean is hydrogen that of production close

Patrick Hughes

Yeah.

Wes Edens

are very market to willing And obviously, people are for a of price economics the pay powerful and that it.

As what’s Patrick been greater said, needed the vastly dimensions of is what’s than produced.

also hydrogen of think, the that a upside just carbon is Act including well, immense. including this in aspects production, the period overall a production, batteries, hydrogen hobby. production relatively capital So hydrogen provides the it, number think something different is not but U.S. It’s economic it’s inexhaustible part blue are I the production, is, today, It’s it demand, can actually is we The small it, but for it’s at that green landscape. Reduction different my the There’s hydrogen and the of powerful. that energy a virtually I of very to capture levels. and actually green opinion, And of Inflation a in do aspects storage. of fact world so in across is of the number

this business is expanded would actually marginally interesting, something from still profitable is then And be that greatly. gone and which has profitable, that a be absolutely something but could so

we first, efficiencies of focused and the so, you transport just for then that’s make second you of will utility now. aspects not something until right think all the entire so actually production actually in but built this does that the hobby hope across that very it decarbonization. so of And then put that’s hydrogen, it, the And I build on the can’t material you are a but not what a the it, the be different of in role landscape, a

Martin Malloy

to rating fast And able my of on your are do will a towards up question, you to few grade progress to wanted achieve have to get and thoughts investment you projects LNG just I these that? you get Great. running and second try think before

Wes Edens

is should Well, grade hope rate us conversion EBITDA if investment significant flow the been rating And partners the we and they be along agents agents great with of seriousness. mean cash the are listening we in generation free the to that are, think cash I the flow and way. all and now.

are overstatement in when of a to an a with want dimensions XX earnings mean EBITDA the even that revisit them, agencies, we there that you to those of One and flow analysts thing existence. go from of is, about community it’s rating and say equity really investment get is actually handful XXX, we credit want credit we none to are intend in tremendous. from generation to get of to years had dialogue generated S&P look the them. the experience at cash this have as the with the the XXX great their and post maybe We I the in companies that back we not broadly $X billion first those

have so internally extraordinary been raising meaningful we largely as cash generated. other a flow people’s capital, and And amount of have produce an opportunity a it’s done so to company without

Andrew doing generate, the That’s very, are not we flow to which in. also short-term meaningful what the by others to at time that out But a the basically originally long-term a market happen. to and of that both will looking communities will believe counterparties And I got and spent is that three very of so agencies, When investors set the people and dislocation cash doing more. without it’s say asking good. on repeatability, a actually yes. business, resounding, course, sustainability is you of all it other our generate it the money which analysts, the to The when the rating the is, a cash power for provide need And we significant at we world when and sheet just is, the not doing look equity of we is balance to way do with it can question when have around do, opportunities which well answer generation of power that of amount the a question long-term cash in we a expect lot flow. excess attributes, can do invested just and gas of why and that that we those there lot

business very So a for obviously long-term. it’s good us

We impact that are we communities making a actually the on meaningful service.

not than do. optimistic you opposed agencies to financially tend that and all fairly followers. if feel until feel are that on now it’s My consistently And you performed event, account like business an process generally is have it’s I the were the rating look I considerations leaders think take are nature those report to from very be And chances the we to they at those the our we That’s things card, of on our going it’s they into we or that as what we you it. it. about and a do. we back significantly to doing better for went going side But So said the with public day what experience the is said unblemished long-term.

Martin Malloy

Thank you.

Operator

from now Greg BTIG. with question will We Lewis to a move

Greg Lewis

right Thank market, Yeah. the about to on morning, you the the on keep and seven we back we ask you good in question. fast will seeing LNG I just opportunity Wes, realizing the picture. one hour, the the going you now, MTPA Board. cadence guess are would and everybody surround are I as bigger but and there’s guys think Clearly,

see units a projects As in factor company’s we them open gas a in where we our normalized these as in our building are the see are always going environment in selling be, the will be or demand it of and with servicing road your the we point meeting i.e., our to into an or eventually, where market you of down on terms your we scenario you do future how always about big for we outside think is eye hit think projects right these is end the a are the of markets? Brazil projects are about we kind that the that way elsewhere, Caribbean, in solution gating FLNG to can

Wes Edens

servicing that the or in said, like places actually that but size a or -- are Ireland our a and even. production Yeah. the predict you That or Africa possible future. really what it’s the meet not it’s perspective initially markets saw Brazil tell are is needs we fraction Mexico it, we of visibly will demand in service. to the we I spectacular That to my on question We FLNG South actual

So build and the upside the to infrastructure markets those in organically grow tremendous. is just to continue

and the great different question thing downstream that that, normal is addendum what to I and when think new you the is it’s because answer, is, I there’s the is of the all are term I duration. addressed to provides lot Now we that’s a obviously business a it. portfolio, elements know one The an earlier debate, when longer not would that this, with done a say it

they I people when about talk returns, people sat across have X people desk many million a have The reality XX% about named for can some is So me as told have the Warren others. of XX% be just in and you the years, could or life my they duration. talking should from also returns XX make Buffett make few are investment return. or XX% that

matters So that really these portfolios from we and duration valued. is duration get the long-term significantly

other so when flexibility enter in the that the and mean as in they amount chronically that long-term world earnings actually about opinion them. of you significantly undervalued, by what it’s my terms durability think in have, both I gas need. of right quantum the complete One we thing is actually And is that that these to that you the I is that nominates significant. granted is way, contracts as by the power is under now, well underestimated of the the

needed That excess when it. more the spot advantage actually margin In an same you demand becomes extraordinary market just of knew Europe, developing supply the needed happened more needs. price. at same something it market. in say human would this significant actually across period, be they to They countries so take to it’s to meet they under is demand specific the countries. a buy and basically on normal then where of does think and they would the characteristic on allows to I not to what amounts that assume that just their incremental it is thing one able it in supply they basically the I is nominated have that always actually

the business upstream, are they very supply the two you So the Those one. a really significant partners, the generate necessary together of different. to are things the the properly it’s good then it’s you are a demand. markedly is very, nuance, deeply believe but that that downstream, actually and which only not manage But margins are if combination we going business

the thing back different they at go and or gas them gas, the spectrum, perhaps in do some across businesses, we of entire of produce does that and fact installations, they we thing the same reason consider. other a generate look to way And that why I to If They such testimony are margins either it gas that economics no it. one of the producers but have typically. use the the good gas think that a in that’s it you any do great the they ship actually

to long one. a answer So it’s your good question, appreciate Very short Thank I you. but it.

Patrick Hughes

Patrick. we close at the we given I think more the the I would might We Jake, call. are This have top is that suspect like questions. of still maybe hour. to

feel not means to may please questions out So for by free their answered, to reach who me. have all those gotten

the So, great. be call Jake, down if could you close would that

Operator

conclude for disconnect. Of course. you gentlemen, does and and now conference participation do your your We you Ladies thank today. may for this

New Fortress Energy (NFE) 8 Nov 222022 Q3 Earnings call transcript