Earnings call transcript Q2 2023

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Operator

Good day, everyone. And welcome to the NFE Second Quarter 2023 Earnings Conference Call. Today's conference is being recorded and all phone participants are in a listen-only mode, but later you will have the opportunity to ask questions.

To get us started today with opening remarks and introductions, I am pleased to turn the floor to Managing Director of Strategy and Investor Relations, Mr. Chance Pipitone. sir. ahead, go Please

Chance Pipitone

here Jim. call morning, our where recent and XXXX you, Energy. joining second Thanks today’s results, future highlights, operational conference we development, New And Thank Fortress everyone. good for quarter at Perfect. will discuss

second is the you release section available And Investors that recorded and our in XXXX and will Presentations. website press under quarter the As by call will our on the on location, replay find and Jim a corresponding regarding walk being we’ll said, Events today’s same the of be results call. the subheading presentation through

As will we we be that presentation, the proceed through referring discussion, to

encourage presentation, addition within important will forward-looking our non-GAAP of to the participants that find a these We description contained and you important disclosures to disclosures same to risk review in related SEC series of factors statements In measures. filings. also financial

Now, Energy of Chairman senior let’s And our call. and today Pipitone. team. the Chris Director Officer; Dete, me at CFO; managers of name other Wes Business; leadership Chance again Guinta, Andrew are our My is dive Chief Executive into Managing New New Edens, Fortress joining our and our

you. to over Wes,

Wesley Edens

Lots Great. welcome, about And everybody. talk Nice, Chance. today. of

there. three, number numbers So with let's start page and go the from

some just flat were function quarter, The for is of the XXX% quarter-over-quarter. of Quarterly down results for the the quarter sales. million, a of $XXX earnings Virtually timing that solid. cargo core of is EBITDA were for the quarter. geography The first basically

million XXXX that year, rest now year. more the to the $X.X significantly, half, year we're the so this up very, first as incredibly of future billion little $XXX XXXX, Perhaps, last still a function $XXX last of bright. of guidance delivering in for we solid for just rest of year, the Compared million and first importantly, And see the of half a billion guidance our earnings is $X.X year. year, the late, the bit the of but projects very for for few of this there reduction in in

number at a four. page of You page This flip the very interesting very, beginning is to presentation. the

So we projects, for the to invested, same five of exciting say company. major now billions hard very After delivering years and have time. are work essentially many at infrastructure these the many all the times least,

Having that $X.X of in And assets. billion and producing that's Obviously, there's actually projects for a projects couple potential change. company, a company. assets into construction turn life revenue huge invested material revenue it One, producing productive, points the you're is here. converting increases huge, revenue our a as into greatly changing

changes revenues mix the forward. one that from from Two both That our reliability improves is, that XX% a of one is it customer earnings going nature coming of about of sales our customer to volumes, company sales quality, greatly and of the all merchants transparency our going to virtually today is forward.

see then both itself to year half manifest in the second going that You're future. going this on the of and

already company. explain, with the larger much, a fleet, click But PREPA us, up a is potential. major ones there. done a this about talk the that projects as with acquisition McElmurry [ph] massive Brandon in of Genera, massive, the we the temporary for opportunity will we've detail. will is is Puerto Rico, through new number to now. the Three, market tremendous markets now it huge us, opens I'll much which markets of for but

Number by increasing company, as increase throughput our two, online of addressable total market. a that capacity Two greatly large XX%. capacity Huge coming Brazil. nearly terminals

are the them online coming entry it, in few both of weeks. next into Our first

country. amounts the first All terminal grow capacity and We increasing finally material to CapEx. importantly, materially Three, in first are to our Ireland. auction together we're most LNG and, last the without power close these very our quarter, won and believe only of be additional

company, our for we of little as It's to apex now amazing in the capital made operate no moment very of the happen. thousands have grow a XX and spend. through spend, and just transformational an revenues work be all us possible It's additional next This need that dedication literally and is with hard and of the people to will made capital truly to us. XX this days

Just league. a at hard. our another build. it's foothold the very markets. It arena. built to What it's to And CapEx. get a was million It's my hard few appreciate hard but little context to It's two-and-a-half identify in Milwaukee of hard years get for here arenas if biased, arena us work, I'm in the to equivalent That how And, ago, which total big countries building is. time a a Bucks, best throughout at NFE to little business. we billion in the six doing commercial is it $X.X in took of and view because actually course, plenty these years hard an world, and in of it's in same to A hard, of in infrastructure $XXX about Amazing execute. sounds deliver it's it's is the we're of fund. line

around feasible doing dangerous what And dedicated, it or organized which some doing world, That done experimental. it same in time, been is it's if form, said, which the unproven many and and nothing is many reasonable many, And we you're are. before. cases, or in both that the all makes times at here we're

projects. These are big construction

to so all done, significant and reliable in So will the do, go will of very but there's CapEx, going the day. forward, straight that company. become a on and debt now flows produce They'll company company. cash very of we it's once talk future. bottom not-so-distant to shot things line, for And an investment we're require the every track, us much transform and truly does grade flow, about straight And the deleverage reduce to cash the little

avenues major infrastructure grow, with exactly at right time. markets essential the New to

number page projects. of the are These So X. list a

Rico which in is speak, the which about. of power, deployed process that weeks So, Barcarena there's liquefier, other and we as half is Puerto Guinta of FLNG talk the in terminals the operational two Catarina materially will billion X, Santa the talk plant, has infrastructure half complete. Brandon operational, significant a $X.X Dete on few will company. that La plant will which be Chris Andrew being Paz next to about, And about. will the talk been megawatt go last one, which as commissioned a right converted from in that has now. XXX being power of producing, are we Brazil revenue construction impact is

in of because been to of XXXX you Page see terminals the those below. here XXXX the in to five three capacity in company. is perhaps number page has of the XXXX. my listed this one on yellow, seven going X each in of is it history presentation has in and page shows What the entire favorite that here The XXXX from one

Just show as TBtus, reference, tons million X XX we point of XX of LNG a TBtu. is

of in So X Bay, business XX% ton this was our basically started with Montego we of capacity. –

We markets year. as these have grown capacity that have materially XXX to TBtu online come next different of XXX today, TBtus

As these you'd terminals follow. volumes LNG then through then expect,

So, TBtu in beyond TBtu XXXX, X XX TBtu XXXX, forward. XXX in TBtu XXX and going growth this that substantial year,

as bottom this XXXX, gone progression convert that XXXX to to XXXX, of you'd look EBITDA, in losing even about we're obviously, $X.X we're course, money to developing the place billion billion $X.X at million expect We essentially of follow. a $XX year, It's remarkable assets, in has to line. EBITDA. to one million truly breaking $X.X lastly, XXXX, from which where billion in in from $XXX And

So a truly remarkable path. remarkable,

turn me about let to our that, Chris Great. With to it over talk FLNG X.

Christopher Guinta

we X morning, Wes. of everybody. where provide number some turn Great. slide Please number And on the X. completion LNG to Thanks, added details good Fast

incredible the end Mexico, progress of by to Corpus major goal this by we continue thanks and Christi effort of mentioned, and at team quarter. to the as So our our nearing continued make COD we're in

shipyard. still have the At of in various completion, rigs each and at the we're this achieved rigs in point, of the remaining queue while the commissioning systems mechanical process are

As comprised the unit with X, three subsea connected the dehydrates gas around is module. of This August prepares X. riser X the and and expected a is is and and reminder, processing to gas mobilize X is installed for This names liquefaction. the Pioneer specific to it Pioneer XX. be FLNG rigs

the into Pioneer vapor box X mobilize August change is to around expected includes together Hughes module which that compressor, installed unit liquefaction chart XX. This the is be cold Baker LNG. and the and

accommodations, and installed Pioneer mobilized power already hub, control offshore. the and electrical this X houses that been has and is unit the

and From a assembly completed, tap marine activities standpoint, installation the have the on X asset including kilometer been all a the of to construction mooring for storage vessel. anchor FLNG the our hot pipeline, pipeline lateral [indiscernible] our installation

Penguin, to in moorings its all our completed in activities and Altamira installed where storage ready has addition, up to In month. and vessel, make this later floating its currently it will clear the transit hook of

then sell units gas weeks PX sail their couple to in introduce expect we to the first to cargo our offshore, first The location XXXX. PX next is and September next step of and October and of over in

we've NFE is market traditional to model. that focus that before, greater a prosecutes on As speed much much more stages discussed as to organized opposed the parallel the linear with projects in path various timeline follow

When given XX will believe in engineering future and in we we've be half deploy it's looking done modules FLNG completed us and year. design, second to of at that X months. additional modules allows is around FLNG, what next the This and X already the all

onshore a ton, come will balance for costs the of $XXX of installation is to around While modules in the future expected of FLNG be of X ton. and a cost roughly shy $XXX plant just

X, intended to strategy that value If of slide we've is this number you employed. to the really the turn evidence

efficiencies. while to to decision we're did the engineering units build still Our lead completing

outweigh FLNG challenges However, the far the we on resulting benefits incurred X.

the into portfolio that are feel primary FLNG our reasons two Moving slide, value. we poses down supply there outsized why really adding

effectively LNG own when ahead come that FLNG now value can any for means the well competitive First, of supply free, you'll online. asset of the

a will to assume online the side with demonstrates project other that on the three believe here. of supply around graph XXX% The years. LNG page this $X Hub XXXX. TBtus year, average that's traditional XXX I'm agreement And available three forward you is We curve years versus if capacity alluding between plus The of left the before come for Henry what per on available LNG XX no sale. next over at of TBtus difference $X.XX

you in in proceeds online. COD the that If $X.X TBtus, is our billion project approximately competing between time XXX a and when you get by our multiply

latitude business. risk of supply issues LNG the impacts knock-on very wake by locked schedules flexibility you regas when our that loading running operational chain. supplier supply advance, when in own term over SPAs, to point serve is our provides second it have downstream of the in little a to Remember long a lead curtailments greater which that could in operational global year provides you're Further, our having customers. you into The you're

portfolio core the As having supply prepared our customer that own satisfy to of be to FLNG a our way as offtake serve a agreements all can of is to result, complement our needs. best

off customers. With that, capacity to hand Andrew the I'll and to call about talk

Andrew Dete

on here in our Chris. XX. more slide Thanks, got page I've capacity on going X are We're through bit that to a And three went everyone. around little slides dig Good Wes in on what terminals. morning,

shows XX an slide of to Bay, of So, NFE. calculate We're the our at Montego LNG terminal the example how terminal. which going is we take capacity first

COD. XXXX QX So,

cubic landed is meters X,XXX Bay Mo storage. of

And So bullet we alongside. picture then tanks can ship the In the you vessel in of onshore have there. left see coming the an and the the then LNG storage. part both picture,

in our Public main Mo the long JPS, for on Bay to Jamaica gas supply Bogue also hub a term is contract And powerplant. small scale serving it's Jamaica. Service,

we truck serve loading. mostly hospitality Bay industrial from terminal, So customers Montego through XX the over and

is the right capacity. calculate how On side we

So aggressive. nor get we reloads meters assume that conservative, two a comfortable week. we is and cubic times then XX year. meters by we multiplying convert have a kind of storage That's XX meters pace a we really a to our year, by XX We into a too cubic And is for of capacity XX,XXX That's refilling. week take and of weeks cubic X,XXX TBtus do XXX,XXX take TBtus. what right about at we we it our not a

it shows So I'll XX, takes the and page basically which on put the that left portfolio across side. that into rubric

before terminals, XXX about XXXX. then total So year the all operating end showing we're our And four these expansions online what we which are that expect bring of are TBtus. to

a million then So Puerto using of and portfolio. regas our XX than upsize, year-end ton, rule the equals thumb number Brazil, which of Catarina Brazil of Or and total us Santa XXXX. capacity a XXX% All Barcarena XXX in That's of greater increase to XX in X about TBtus between TBtus. Nicaragua. now get Rico in tons

track volumes the terminals. our LNG And the utilization on show numbers through how right those

a have MTPA through about we'll the XX portfolio of of LNG of end regas regas. by So going of portfolio supply about XXXX, X.X of MTPA a

the about yellow just a box rate right the there in So on side. XX% utilization that's

walks increases XX a Page these growth capacity. through from we how in of bit little see coming

main ways grow two from So will in which here. NFE

increased we have The current our terminals. And first to as in to past. the second enter is grow markets and new in utilization is continue the

we reasons NFE. growth There's why extremely a advantageous organic think and increasing few for is utilization

First, relatively modest. utilization call is out the terminal that current

So operationally growth, commercially. growth lot both room at of for organic about XX%, we accretive a This is have highly margin. and

the So in growth has operations. because low have terminal case, paying and but already not onshore CapEx, it typically we doesn't our we infrastructure, incremental also are the very, this have for for only any incremental paid FSRU very so the OpEx

to push have. the the are on new new to or terminal currently we accretive we that any So margins what customers volumes

is in in the portfolio Puerto at development go and of position a to and happen as really a Brandon of Rico, with is growth embedded then continue being which for we have these the we going is Rico we example jewel the crown And we happening. example to the our great growth to That's how the markets. over sort the third the position of through moment see that that grow next rest portfolio in going few see Puerto years. our

also side, right continue we'll develop to terminal infrastructure. the On new

then looking Ireland, population opportunities been, South which Central the high for on both So a XX% to relative exciting relatively over in they're Caribbean Vietnam, to where in on opportunity return we America in capital and addition Africa we're the opportunities commercially. capital We the Brazil have and are markets we've and and traditionally also at terminals, also growth, LNG. of that target high typically so their represent invested light,

capacity. then in portfolio terminal out call grow And continuing see value we want we to the to

across much going This better TBtus seven, makes across portfolio So flows as then XXX the LNG to Wes cash opportunities terminal going XX diversity walked one to and tremendous and of a through, growth of as and capacity that scale increasing organic go. business unlocks TBtus. we for NFE time,

over it now. Brandon turn I'll to

Unidentified Company Representative

Andrew. for And Thanks, all Thank us. you joining morning. good

XXXX. As since the investing in Puerto Wes the Rico at been call, of we've mentioned beginning

a So little refer context. I'll to slide you just of XX. bit And

Puerto of history. mainland. highly unusual year Rico Commonwealth million the which is HFO and a and million diesel a imports X.X people with US generate amazing XX to US to barrels It with is power, culture over compared

of In XXX% being by has renewable addition, it stated goal XXXX. a

It's The it's transition heavily generation distillates unreliable over in increased from and to today is support that power gas to away exists inefficient, move old, renewable opportunity positioned time. not and carbonized. perfect energy And integration resources. of renewables importantly, to integrate the natural most

Hurricane a record in started to opened call XXXX, the involvements plant severely grid. XXXX time the and electrical struck next world. in in September of Puerto for type island across Rico the Maria terminal LNG and San north to of the NFE's X the facility in NFE power rebuild its Juan Category the XXXX. Like damaged in In the responded others, island hurricane to that

the The power island terminal of fuel efficient the to significantly the quickly to most and with megawatts importantly, emission dispatchable and of the of has deployment XXX to grid island's gas. respond both generated power terminal by needs reconstruction date of NFE supported the to the of positioned Most low accelerate dollars savings and diesel displacing millions natural renewables. the of

XX,XXX serves gigawatts, gas. XXXX, generation and the operating underway. T&D and distillates a PREPA miles XX about two-thirds sites. utility of the publicly X billion X.X fueled around XX. with page gigawatts a In customers, got demand of by to $X.X US across move It power in X peak million of I utility third PREPA owned largest on is privatization budget,

someone To mainland. Historically, has has context, significant been than most is electrical in the US. system power put Rico in that underinvestment there there it likely times expensive to reliable and in in the Puerto someone led more lose least XXX to the

for be and the the distribution privatized the government a funds In Government has accelerate Rico private privatized decided XXXX, and reconstruction needed energy the better transmission XXXX, transition. Government owner. In the with won that to XXXX took generation a NFE over in compete process. The Puerto system July privatization year, of an And the PREPA name of XXXX, for it of year, In to to is use launched generation. privatization. system Genera, under same NFE decided which the mandate it this privatization company.

and Today, people, $X NFE billions reconstruction manages fuel, operating over system, generation XX% of rebuild budget of the XXX generation dollars of system. which funds including about X is to gigawatts. the billion

Improve cost. simple. lower is and mandate Our reliability

the resilient Rico. on XX. a coordination of page which $XX is grid and to in all billion for power efficient that with to carbon model government its be a investing move a are The creating Commonwealth system, US and Puerto government will mainland to reliable, grid in expect focused to zero world. we very power rebuild lead federal clean in the agencies The I the the

include The can requires peak model systems how that demand, the serve a other gas, be which storage. power to would by energy power expect we still result and for done. hydrogen are The fueled dispatchable system

additional power On was selected of launched in to a generation days turning to to grid of to Palo Hurricane power on emergency stabilizing installed In page units and on for the bring NFE July, megawatts current of responded we all process, existing grid. this is, and Juan, expect process on island the completing working beginning weeks. fast provide X several power. be completed that in call Seco wake the in the FEMA megawatts XXX XX that to in assets units XXX deploying XX, power in in up where it immediately. process that installation terminal at and expertise, In for of is to by Rico. and acquire stabilize I San Fiona, to we're focus FEMA to late megawatts of event XXX an two of gas the of years the NFE the XXXX, and at in next called the the Puerto our provide

for fast give deployment, have across its date. and you such a context developments done To we the NFE brought portfolio to that experience entire the

used and emissions way. and skills gear, balance in megawatts electric and other Our type support infrastructure to project accomplished of turbines, This substations this a and, team voltage FEMA this controls, time. the fastest plant in a NFE clean in of ever the power of world. installed high is most the installed importantly, record fueling all XXX by lot sustainable the

is The I move additional and There over government page would can to megawatts is ways provide reach term help installed example which the that their are several XX. currently NFE Rico one, fill next that need contemplated goals. being megawatts and the that months. megawatts to short best capacity are Number island increase for XXX with Puerto US the immediate this the to now. installation several the be power

any two, fuels expensive support carbon and Number renewables. supply and to away power diesel plants distillate position conversions intensive and from to system power the oil of better existing transition

be A of to support today of capable installed and that plant is this continuing additional gigawatts great diesel example being about would of converted. possible, X.X HFO where which is

positions to The any several renewables term three, but island is island's over must metro participate X.X gigawatts expand power where be dispatchable plant Juan Number which San the supply that and in which is, in over to long still demand, installed the decades, us next the solution. requires XX% terminal of maintain mainland transitioning will area to perfectly accelerate of goal. peak power. the our

$XX do and efficient to a world, reliable will to grid the a how others be area which government's facilitate to power carbon will billion similar to are again goals will system, the that commitment the situation, rebuild it. lead model around The for this over invest US zero

dispatchable end affordable supported energy state Puerto expect power be will Rico The renewable power will fueled we that storage. in be and supported gas, hydrogen by by by

it could supports high same the a great seek that to quality model in believe NFE integration can we is for accelerate we us, transition infrastructure We believe the Through transition. accelerate Puerto and that Rico we that be and areas. replicated other the transition world around best Genera, with operation and others renewables. of example as to want one energy

And I'll with it over turn Chris. to that,

Christopher Guinta

to Performance turn second [Technical number Thanks, XXXX. for XX of Brandon. financial quarter Difficulty] Please slide the

$XXX and During combined $XXX us XXXX. EBITDA with first million QX, million the revenue half adjusted which of $XXX of million QX we for of EBITDA, had in adjusted had at

margin appendix. operating for $XX Terminals was million more you $XXX and Segment segment. And million the find can the for Ship in detail

net The basis. is $XXX was on million, per $X.XX quarter the share diluted a income which for

This of total around quarter, margin we EBITDA an to XX volumes, in $XX equates which TBtus sold per average MMBtu.

primary cargo the $XXX the mentioned, during the in QX for of about sales, Wes decrease to or opposed As quarter-over-quarter. driver the XX% accounts is EBITDA change as which QX million of

earnings basis, we through from an a downstream are on term the On long sold of our to earnings a replacing basis. sale volumes cargo regas go forward perspective, customers being with most terminals

XX% Perhaps which the cash to sales adjusted around terminals, of best example our EBITDA. of flows this is of through contracted the over downstream XXXX EBITDA XXXX adjusted from XX% will derived of migration be

Just to with sales out, around XX we've over This building is term investment predictable average contracted that net to XX% years, term these grade been spread counterparties. long the being business of toward. is the point

June, $XXX financing, incremental asset the financing $XXX us million an term be a of in $XXX end balance financing, quick million here another in sheet. the level X. we've of with And Since the turbine total on FLNG that taken $XXX against out million comment includes and to closed will an bringing finally, million on which loan

basis. assets company funded finance choosing And by is discrete the note, sheet. once trend can then This historically, operational, them we to on we And execute. to continue will back our standalone has balance just lever on asset a projects development to are the a growth our

turn over Chance. that, to I'll call the With back

Chance Pipitone

Yes. Thank you, Chris.

to up the back Let's questions. I'd the turn for love lines operator. open to it

Operator

from Instructions]. first Bank. at Deutsche Chris hear [Operator Robertson We'll

Chris Robertson

those to back [Technical question walk the why FLNG you Difficulty] under much just with [Technical come circle last next guidance for of the on talk CapEx to are construction? X latest these trying just for to financing Just wanted compared those Chris, construction. are CapEx about Difficulty] two I'm CapEx a to can currently units especially still XXXX guidance and through the when as to guidance year? regards Maybe here, in the for has get update and X down under XXXX so

Christopher Guinta

over already X the invested equity. and of we've cost of X using FLNG XX% Fundamentally,

So, the view is the able the borrow we that to be fund CapEx to remaining should asset against plans. debt

completed From terminals. a and $XXX we've than around you on spend almost terminal the all $XX Santa Nicaragua. a CapEx million the Barcarena and That's – basis, standpoint, about on Catarina have maintenance only all a less for million $XX forward a remaining. we year And year then, CapEx have go for million

question. Just $X.X your the We've circling number of back already against X. FLNG to funded billion top

So, that modest complete there's costs asset. year remaining very to this

Chris Robertson

those and said FLNG you X, already invested XX% two. X in you've On over

Christopher Guinta

That's right. right. That's

Wesley Edens

cash they Yeah. little on are one and you sheet, we've or to constructing constructed of when with a can past. other financing financing Maybe pursue producing assets an of on bit, just asset then power done amplify plants, That's assets the when the what the you're balance in go flows, aspects business basis.

levels of now that the the the you precipitously attractive of at why going phase those the one phase, assets so is so, to increases operating goes aspects markedly. the And from the of and business financeability the construction down CapEx are reason that significant

X That in into go it complex capital entirety X. terms assets, FLNG then X so, in incremental at FLNGs it's additional CapEx low. invested $X.X and thus so or we that total and is need financeable the in that billion FLNG CapEx of the the its it's look and X in to $X.X complete And billion so to in the you the spectrum across needs is very X, if we've the the

So a it the all very to the And apex of assets, It it's straightforward into be apex, very a in very, drop as easy, producing say finance. converts actually it is I is now it this income to in CapEx. truly CapEx. appears stuff. precipitous drop precipitous When

they at to complexes, are liquefier financed look LNG speaking, approximately When at loan the XX% you generally value.

Those there, that contracts look or or other if and is that's side, Venture the of in term are minus any you for they're at debt it. that construction. So complexes by the supported on Global they're long out these that's which – plus financed highly while Cheniere are

downstream have our of In case, is essentially asset customers, we And they the these now completed. lots support assets.

extremely So it this makes the straightforward. financeability of

Chris Robertson

I – onshore has is guess, projects guess follow-up of come with as around been savings, there rather cost any I proposal? offshore line the final have than this any the questioning original

Wesley Edens

Yeah, cost no. Massive savings.

anything, Chris The a billion the million X.X asset, But get premium as $X.X first under for first just [indiscernible]. liquefier Pioneer for tonne of ton. is you said, a $X,XXX so the

numbers onshore the fairly For and X and down X those costs significantly. and go utilizing existing infrastructure,

Christopher Guinta

Yeah.

alone, about on think the So, we million modules $XXX each. to is down million cost $XXX

rig play. modifications improvements here. million the two. across won't $XXX any that's need So or And than site call, work, complete to offshore miraculous. really stuff. This full as to do then We last the imagine, And It's had those onshore berthing, would have as tanks, you has can is definitely in cheaper talked you to geotech. everything and the about already site, is its we had plug

Operator

at Mike Patterson from Morgan hear we'll Next, Stanley.

Michael Patterson

question shares the preferred Golar LNG, regarding on your X.XXs. is My

And like solicited. currently I'll your of do you these any shareholders at the were or what's Yesterday disservice showing traded A XX%. that. XX.X. a about They went Some delisted. time have Pink the these to They ago, preferreds on They're give can't quite Sheets. preferreds? was seems Do trade yield. not plans example. on the on it marginable. And They you be XX% an traded through comments just these about it to a market

Christopher Guinta

offline, talk through we this. This and me a Why can you is shoot Chris. note don't

you are through go happy have it talk I'm before this put We to available. out through The can offline. And information and publicly we financials it.

Michael Patterson

a respect, email tried on I do with three Well, response get about return all to in, months, for call I've and due never this.

come can not they're so, address these that listed? And you consider how listing you would And shares?

Christopher Guinta

to Mike, do And those are required everything we compliance equity so. provide shares in private so when were the delisted We the not shares. continue we for XXXX. listed. with took will GMLP They

Michael Patterson

you're So trading to it shareholder. call on like dollar $X.XX do but to And right? it's But at at ever I I'd I responded and with doing the all. anything take answered, regarding this just like it get sounds a them, not fine offline, to just going them say, the can't you're

Christopher Guinta

look Mike, stay all those we a what with in you're compliance shares. we're on to describing. And that's information But basis. the provide happy we quarterly required at

Operator

next will today Lochridge Our at from Bank come of question Cameron America.

Cameron Lochridge

getting Congrats Puerto in up. set everything Rico on

moving And be well. sounds Xs will like FLNG

So congrats on that.

ask, unpack some XXXX. little to to a the wanted CapEx the really and regards nuances wanted that maybe bit. want just and I around you for with piece – last between and of and just the I sorry, financing and circle the guidance I to quarter, were CapEx understand really, what But XXXX back on expecting there's CapEx XXXX billion now difference difference There's what expecting year in you're about last unpack to quarter's XXXX. quarter's. $X messaging last to this

delta just if So you don't through us that help there walk mind?

Wesley Edens

Yeah.

debt I from capital kind that balance that had. of it's we've to that using already X we're FLNG and think, were and the the place Chris and believe put X first fundamentally, in able construction of to financed question X. describing the we X We X invested what

the quarter-over-quarter fundamentally just presentation debt that showing it's [indiscernible]. the think I is in we use a to that are So able this capacity difference

Christopher Guinta

sheet that, years. the in about on a last at of handful now. capital right the few look got you've over we been if funded From the Of structure total of billion X, $X balance infrastructure so has company number $X and standpoint, billion page

infrastructure So, on amounts of investment sheet. massive balance

revenue of big from the difference financing go As once I projects assets from standpoint to financeability them is producing, materially. construction that really a the changes said,

equity material producing why have all all We've They're going amounts forward. of really the don't And already turning at into made substantially. believe financeability with that, that's them investment. CapEx to now we'll invest the so, up that goes now And we assets. revenue of

infrastructure billion, to $X.X a in infrastructure, bit next a on my on EBITDA world. forecast yield. $X.X infrastructure roughly I'm aware that's of billion, any best it's knowledge, To the the of the business, in And context year, company of yield XX-plus-percent the core of anything our producing to that's the billion give and and the company, which just little of quality $X

you that's the goes front customer-facing long-term you're why out kinds of projects right seeing longer. financeability it's of when so produce now. revenues Obviously, play and your transformational. revenues, up revenues eyes what those in those essentially of That's And and

Cameron Lochridge

slated it, now billion originally be billion debt to is of equity In equity going CapEx the $X.X CapEx and, $X.X of call was that Is fair? other words, be CapEx. that billion to $X

Christopher Guinta

exactly right. That's

Cameron Lochridge

Puerto as XXXX as last especially Rico's be What Rico, Obviously, disappointing in really online, guidance you also coming And as well, Rico, to $X.X we half far Moving give we us Puerto what a big year. expecting billion? Puerto context? to generally. expecting contribution that Can lot back Barcarena some there? should on are

Wesley Edens

different volumetric on terminal of the each I'll constituents. whole Puerto kind factors a what for don't talk a show to capabilities it's that. guidance markets. market or think great our about That's for through that country really There's let of Rico specific variety margin market. provide by specifically. a reasons, lots of Andrew We Brandon these appropriate counterparty's basis. But to in idea apply not are a we walked of don't

we simpler possible. competing and make that understand and be easier host not there's But that would So of model, that. I it appreciate really other a to that factors

through. the So go volumes you see can

Rico, Puerto the – be short term in turned I'll short – actually talk power will again, the particular – short Brandon the about in this let but very on. term, and term

is Palo island now. So running. It's plant up on right plant reliable probably the most the Seco and power

I think XX-plus-percent.

handful being the projects weeks last San well. in COD gangbusters. to up actually there's follow. of whole host So like a it's then other and running from performing The project as is And of Juan and

if Maybe, that little. could about you talk a Brandon,

Unidentified Company Representative

anchored it As the this which the Andrew about amazing power amazing, north. support asset, the embedded other I terminal capacity terminal we've the earlier, adjacent to that's But we got built We megawatt think is way the for in is Wes expansion as said, it, around it. there's plant to think in referenced XXX projects. and

a power terminal on incremental on And using over HFO distillates, the retire two-year XXX can that support you installed then I then island as that currently arrangement. the Puerto example is think are the are is assets replaced, the to develops best megawatts and time. that there that are Rico as today imagine, as installing and those we're

what term, term think is Puerto So the intermediate long should about has short the way time, expect term and Rico the strategy a it you evolving to is over And then by X,XXX so that megawatts your installed demand over peak and fueled natural even are of gas/hydrogen time, increases megawatt incremental others hits type being some blend renewables it your as online. aspect. come

population that critical that of Juan of metro piece principal sits area. again, the in San XX% infrastructure the the region. terminal And The in lives is NFE

pass that or of all way transition some that form asset. in shape through So, will

contribution you should to time. grow And so, over the expect

Wesley Edens

opinion, doubt, As world in event without said, largest energy happens be a it a transformation our in commonwealth States. the of Brandon United and to is it the

the available got got the do has resources. electricity the amazing now, an tremendous and island And place, things. for energy the so, but system. they've right It's to Right capital

XXX don't for a right? pay market And feel of we're transformation Hawaii, the the island there's any commonwealth. got in the for the is, except shut Chicago, as very commercial it's so, We that taxes, Miami We Puerto the you more we doubt, be tremendous would of significant the to very, New And or And without world. opportunities if just right thick that's significant and in answer. an to be we're off blessed as very at in that Rico. or the power biggest are York happy there. times of opportunities the commercial a lived it's in do thing feel as not to there's be than more result. it. thick to likely what aware got right to potential importantly, energy be I So think But like opportunities really a obviously, people

next more and of to lot a come there's in So months the handful years.

Operator

Jefferies, our at have Burwell question. Sam next you

Sam Burwell

maybe fairly secured with a The ask going interest of there's amount respect at adding to these sheet that's expense I lot And like CapEx against has seems come fact material point, this on but that debt. the but been belabored from of it's a assets, perspective. It balance you're this.

So, sheet in The like, debt? expense what are been you terms EBITDA you comfortable with adding interest of lowered. How are layering to balance guidance much on? comfortable has the

half can going flow CapEx how of back start if we for the can free soon pretty genuine the probably cash there's revolver? so expect is year the be flow paying generation, in but free So light, that guys cash you down to

Wesley Edens

Immediately.

balance the You sheet, an look unleveraged at actually sheet. balance it's incredibly

the So that that all liquefier, the the Brazilian so stuff on, all all assets, of we're assets we working have in, basically invested unleveraged. that's liquefier the

unleveraged that actually against balance the and And to are of now about dollars of that are talking on put now putting revenue sheet. are billions you into you'll assets you them them. generation, billions So start leverage now producing

infrastructure You of a not lot aware are say on that low what we expense. as there's an of and leveraged company I'm asset-based as interest debt earth.

it's opposite describe. way exactly So to think I actually the

immediately I the needed start expect flow go equity literally then amounts construction. think of eight and turn period be six it. next should such balance little that has during capital there you to them to into weeks, four of flow. for weeks, We've as an that now, weeks, done sheet. And you capital use with on use fund time, the is material of building CapEx, produce short of for to go will deleveraging to capital and timeframe the to to the period big cash on been on, weeks, so of these unleveraged Right two amounts the turning incredibly it's cash

virtually now, this and the we're So, the thereafter, running. quarter roughly be from through third quarter halfway stuff to right a timing standpoint, up we all fourth expect and

immediate and see impacts to line. flow the you'll cash bottom so, deleveraging on And

Sam Burwell

what on number? be CapEx that that that follow-up was just – XQ. million? comprised So, that The It deployed in was would looks the like $XXX

Christopher Guinta

X it's Yeah, FLNG of and That's X, the bulk X. predominantly it.

Wesley Edens

you is. door. the billion all all in capital the $X.X projects. is capital list We Yeah, in the Puerto show The some capital Rico. out these It's what projects. We

So, it ironic. is

to literally of I can against The that of revenue go aware actually, opposite balance sheet think actual financed installed assets. Puerto the debt, levels, It's infrastructure finance we're hard competitive debt most projects. at power now very actually your quite financed do and for that Rico, producing, Barcarena done company. put the plant, question. right? balance to an power sheet. in so I'm producing very, to And why our our That's It on is it's we we've they're unleveraged plant it them. straightforward we've construction revenue we that going We've produce it's

is. invest you to a as it's bottom cash It it build when $X actually financial against and actually start times. like billion be think a sheet – the to right into the infrastructure That's in line. to our put and think standing I a start And about assets. going company, to is of – the going and from company what That you're with. debt of foundational sheet we've word we've modest balance the it, And the going terms now transformational all to used now. balance to of fortress many bring forward, happen amounts picture flow It's I've going is managed

Operator

comes of Rice. today Malloy Martin at Johnson question from line next Our the

Martin Malloy

volumes through wondering was Brazil those about commercial around announcements broadly that. terminal talk I put could and the of you additional to opportunities potential terminals if the and timing maybe

Christopher Guinta

complete. is mechanically Barcarena

we'll EBITDA and to see accretive up in operating very port, at expansion the Hydro. kind year start Norsk contract and the margin months. will than hope of opportunities little actually of customers, other but immediately next this smaller We bit pipeline. to which COD find material We a agreements some will Hydro, still connect the be guys four We QX of with terminal. a right to those few There's for with the our meaningful us, over Norsk can that

but we power there's to boilers, on of the process, side, both refining world. obviously lot providing their Beyond still alumina Hydro hope fire well Norsk on that, growth their can we process and biggest more side. so as the our the expand do and the in refinery volumes them, that's We're for would with to alumina a calcination time, volumes to obviously over as sort

more to definitely there. do So

we're our plant. And XXX XX% power then, on complete cycle combined megawatt

XXX there, for interesting energy Brazil, that another of effectively coming various which all another We but of more accommodate that land up kind kind they're based, over in some of that some exciting capacity options parcel could megawatts. site. flavors, based, some are There's are power more have

that for capitals avenue form of power regional sort gas growth There's regional kind a Brazil power There's Brazil. the region the coming import and throughout the distribute interesting northern a bring of also to the growth. sort few of see It's in of to ton up gas we it import so, in then in to point think for of region. there. And Barcarena projects. We is auctions really of sole place gas

a always, accelerates when lot in on. that And happening we turn So, Barcarena. actually

being the now. an in yard, So, converted the Celsius is FSRU into

We expect Barcarena that commissioned to arrive terminal in QX. at

very for excited that. So

on physical exciting. into progress It's very that, existing great had amazing sites. Barcarena, an today, complete we've the pipeline a terminal system. an connects construction Catarina, Santa is With unlike We're mechanically which

South into built we well a terminal connecting TBG the pipeline as so, got pipeline Brazil. XX in kilometer the system as And

So it's very exciting.

south That the we're opportunities gives on us to services there's also some kind pipeline a of services the sell of as a so companies, are the we pipeline provide. looking to of that of who power capacity in and to pursuing, the And pipeline, then the year basically, to sort well. end now number of for balancing other sell gas customers and actually can story between

time, access terminal act a gas already for enough all. or into at the as region to of power point import can't of today then, gas can't sort South main And gas access the that Brazil. using over gas So, plants

around few months, So a signing of QX come really kind lot online that over XX. to that's the our activity commercial more next where mechanical contracts and up getting there. And completion, asset accelerating of we're

really lot more on future time come spend That's to just calls. in look in the to Brazil. a that So, start. And more

Wesley Edens

Yeah.

turn on largest costs. the don't the to they in The billions the by on of Barcarena thousands of gas. you're Norsk tons doing have. biggest The about COX. that And and believe, oil I the off essentially the what is South buyer aluminum so, And with smelter and world, is America. we of dollars the again they will in is do we we turn which enough projects other talking the of is fuel Hydro, And of thing oil probably save that in to thousands save will going real have plant, which next that environment Hydro, the Norsk impact do

of saved customers something across and look talked like this an get there, to country and make out the portfolio, The We we've I'll we have dollars. effort a billions our of impact and about doing, billions Rico, diesel natural Mexico, Jamaica of of last Xx price years, of country gas the of roughly countries into delivered switching gas these of Commonwealth Puerto the delivered number into impact diesel the the versus is. the is on

to these country. billions cost of countries. as cases, one their And is in So dollars a billions it's fuel many and cost their number of

as want everyone in wants. big others, and what our the of well. by environmentally A, We this investing world that's of that of all we B, critical doing So, saved part money And we've That's but and to stone the stepping friendly. much, more course, much is tremendous hydrogen so. a want them And amounts major, carbon. initiatives this we've infrastructure a getting countries. made zero major

question X the so is the or company center a times Last the just to toll leverage. finance company a back company, leveraged company, want with whole I of with probably to roads, ports a The thing get even or data to and X the infrastructure. infrastructure average tune X or X on of

Our assets are turning now. on

an in is It's it's XX that infrastructure. year somehow, And notion different average massively the times. of actual next infrastructure what our an end so the far from of of infrastructure company. years. just like. is a And contracts billion term leveraged the by roughly our reality complex. leverage X looks is Our is highly like, And $X company We're

I I my $X would my way sales about coffee billion in shops, of shops the the simple if think be on forward again, owned terms, it coffee this, in I'll and because the that. billion I'm XX valuation tomorrow. just And $X no years, billion, coffee billion, I in to one's next have billion, beyond where, and buying $XX billion, $XX collect zero, expecting over growing infrastructure $XX $XX do

is low. So, it is The And our investment customer term is vast majority long it cash essential infrastructure. customers. leverage very of very grade It's to flows.

we reinforce around. of I of the kind company. it. just sure think talked That's you want just to think I hear from because I make proposition to me the want economic I of that how directly

Martin Malloy

using flavor strategy of hydrogen industrial the I a want ask follow-up. interest and the project these for I your there. could has level talks power in as got know terms and you us projects. also down a give Just about of Entergy hydrogen first did plant is about by know surrounded if to for customers I potential offtake from a industrial that maybe customers

Ken Nicholson

here. Martin, question. it's materials. slides Ken actually a the that of the included I'll We in Nicholson appendix take few

more be of we there's something and a we're make more is remainder on. lot as broadly through there's hydrogen because the to a going talking our think about way I XXXX going

great. doing is Beaumont

mentioned it. huge market. You Yes,

for One demand. the of markets biggest hydrogen

great well. the I it's first So would to for extremely our are say place us start commercial facility. a conversations going

megawatts Our deal set our XXX for equivalent hydrogen provider of technology with is production.

I systems, fuel on lot of building megawatts. that Under in Beaumont be companies of option petrochemical that hydrogen. that extremely multiple that pipes. refineries of And an demand other demand. land likely from have there's The are option to is we is including deal, hydrogen to will heck producers, it There's consumers coming on exercising plenty of several available for would of to and clean we expand. pipeline say is expansion. XXX the The site a a expand we a and nexus

to cost low distribution so market. Beaumont/Port the have Arthur we And entire

So well. going very Beaumont. step one in That's

far facilities pure should focused dynamic from good Beaumont. that an an Pacific US, business think, play the being number on be I and hydrogen At what's and made. Northwest, the additional sector. a mover in green incredibly This progress Coast, the first site same not time, we're of the a on Gulf Northeastern largest new progressing Look, really

Operator

Ryan from Levine Citi. hear at we'll And

Ryan Levine

What's have I assumptions are just drivers to question. variance the in of what And time your driving one your forecast that? SG&A any clarifying period?

Christopher Guinta

all we kind bring are you of got, of we've a bring the driven business, When SG&A chance the and from a for a how people, what there we a just lot feel And start as an mature a process. Ryan, potential you costs organized, are at organic lot look then, how over up being and systems, build by scratch as back you And time, a businesses. are, grounds like and capabilities you you're in of et processes significant The company. things, assumptions our go have the savings of of kind to it a lot cetera. real you up you validate do reset

that associated is got now a there Genera for think and company actually where power Rico also for us into the factor Puerto essentially are company. another I down the we've operating big that's big move people a

activities feel we So of in that. and terms centralize We like of there's amount back terms many potential of and tremendous office rationalize can we whatnot, just our think in normalizing that. a of

spend of out and down – comes lot or handful goes of obviously, spend everything activity as tremendous years, $X That that of a there's in off And now and a costs in with this of and billion building significant amount a of And billion this on. precipitously. again, you infrastructure infrastructure one goes that costs else. down $X move phase

SG&A generates process that and same think next much year kind actually it. see, And so, much And lower for you refined really certainly, much, can and us costs. you'll I rationalize the of more lean that results

Ryan Levine

the certain of there within to region has cut opportunity Is streamline some that company costs? the a biggest or those

Christopher Guinta

in really side. the operation It's

into the happen. logistics scale, lot and but provide think that you've about it. lot and stuff. power what who that we how single you you that's people people it's And And nature going that, people of each is business of is is inefficient, got. ships operate operate a get the of who terminals there these just we've It's exactly should because to biggest as be logistics grow operate sectors, to it, cost think, shipping you probably think who a come side plants If the the more got of you cost efficiencies on I need the in

our simply terminals out how in efficient actually Brazil, massive by use more those ships. build cost as and modify savings you new out in you improve take in As we these terminal we Puerto Rico, just being

and and I really really, is that shipping significant phase you're the of significant efficient. we And over need more then be to reality changes from going it that efficient we're start, that really to areas. need operationally you experience was standing a kind get side it SG&A you So optimize, the And it. of wish those think of the the as couple easier And see of and up to changes of to which build next my I do that's quarters two in is through. going

Operator

any Mr. final remarks And question sir, for Pipitone, you today. that our back have. it our closing you, I from or will is audience turn additional to that

Chance Pipitone

We you, Jim. for answer always you joining thank to available today. Thank everyone questions. remain us Perfect. as And

rest the investor team contact you. relations please at the of ir@newfortnessenergy.com. day. you If enjoy the Thank And

Wesley Edens

Thanks, everyone. Great.

Operator

Ladies joining. does conclude and today's And gentlemen, teleconference. thank we this for all do you

You may now disconnect your lines.

New Fortress Energy (NFE) 8 Aug 232023 Q2 Earnings call transcript