NFE - Earnings call transcript Q4 2024 | New Fortress Energy Inc.

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Operator

Good day, and welcome to the NFE Fourth Quarter 2024 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Matt Renard, Managing Director for introductory remarks. Please go ahead.

Matt Renard

Thank you, and good afternoon, everyone. today's and where full joining our will for quarter fourth year you conference we call, discuss Thank XXXX results. being Investors website is replay and call recorded be will This available Presentations. on the the section under our of subheading Events and by same a that At walk location, we will call. today's on you will find the presentation through Please and non-GAAP as includes information important it this measures. review on statements forward-looking CEO, turn Wes over Chairman Edens. I'll to it that, and With our

Wesley Edens

in. Alright. Great, everyone, dialing and Matt, thanks, for

and start let's the jump just it here So we that out. with sent into presentation

starting financial So results annual financial on and Page X, quarterly results.

very concluding over That's good roughly So previously guidance very very, quarter. in increase XX% had quarter, the good million year. $XXX a the that very, for EBITDA we a provided.

for and for beat guidance positive So in confirming this our a that. beyond. $X were it XXXX billion for total. of year big outlook We Very was

the So we very, profile that report. good business gas by power the integrated tremendous. numbers, of a an to is The run very We're company.

countries, five or gigawatts power. seven manage have We XX own of nearly terminals,

So a to the massive It's is barriers has which once now, capital-intensive news. entry. is very a to But largely build, created bad significant it's competitive business it as very, it portfolio.

we EBITDA the to is an sustainable years competitive that use. or that where And opportunity basically, are X that So advantage in XX% next grow right think just have terms markets, more. focusing feel current we we by we the we is now by on our

how we on how the if big but So execute huge and numbers, opportunities I big these are that's markets know, them. are

this things amount cost the There year that it what we and then couple in and We're little dramatically. And thus you Those outstanding have thank want people for work and first have. over last the of very we the CapEx year, give very ahead. to of reduce Growth great and them. debt all this the actually. year, work think we tremendous our far the debt I -- our of this months tremendous a excited of by of was of are there's goals the with to big way accomplished that

more with Page financial So the little update. bit to turn on X. detail A that, let's

the is XXX clear that so the the us, is basically, million and coming of million. positions the make to for of asset to the show So the was significantly and $XXX now the in FLNG $ the quarter are here's do crystal and contributing us and What earnings, that future. online the volumes continue star quarters there to portfolio ahead. the also the and returns optimize allowed in The created significant star

us number and focus the So two deleveraging. two, core is of and areas markets, growth our for in number sales asset long-term one;

of of in a the the bit terms So of detail business. little the

the the update ourselves Page In markets months capital the last so, different set extended X well equity, out we XXXX. in billion XXXX. equity. to $X.X issued million to We now million sheet basically $XXX and the of plans liquidity corporate Total our billion $X.XXX that what to million and upsized, the very the as including $XX of growth. period done $XXX in busy and Term X, up balance of markets that my And of debt in and we activities October, a In B our new strengthen Loan increase own we $XXX terms capital million liquidity or year. ton then raised maturity put refinanced extended corporate consolidated sheet, our $XXX in future million. it's Brazil, revolver -- execute we and been November, closed have recently in transactions, October for the in a up March, We a as are. to it's which of terrific at facility Increased today was us to in million. $XXX start place bond balance

to simple. deleverage, to which is hand. debt We the are simplify very reduce goal all we well The we capital want in costs, of want want structure to and

turn Page now to X. let's So

catalyst spread? this LFNG our Gas we said, versus supply next a entering supply couple update, service But our it question. at base over side, time, goes excess now I will surplus price of that demand sell was Do next and on as as And today line years. forward. cargoes a markets definitely blue excess you TTF demand to we us. the and then for comes sell of until significant the we The wait demand. chart, Or look the current we hedge see of leads to big over excess this right-hand represents If have come -- online? as capture result, in the incremental core do the the

people above goes that yellow over couple fairly flattens as the So -- it down substantially onto represents have of amount or our expect to come more you and that market. of base then return. more profitability can see gas out the the years and The we box last next gas

we So down the with customers above yellow return returns line to the the that. to the base that amount we The is bottom. sell That's if generate. our

or that get did get on that, we think the the a box And smaller. or that it geopolitical waited have hedge a the in it events in actually particular, particular, market. let would time in, bit is, the live resolution we of for so we ride? for profound if we And alone can transpire, some question and impact think the do simply the all to do in prospects some quite a of sell just Or nothing I could kind war, the with bigger Ukraine-Russian we this? yellow

right It the to cash upside decision right the we to on if puts of the the balance. We insulated, make. struck answer optionality. but did a and so to goes And higher, significant approach portion a elevated if what market market by of our lot falls, It's for judgment was we it, good still our It's conservative the keep felt earnings. good stays derisk, balance or cash was flow. sheet, we're retain our that for sell us

So with result our FLNG a very, volumes. good very

just on our talk Page LNG going going them some X, about time about Chris to going to in talk Puerto breeze we're I'll is spend to Rico. these assets. detail. Fast about I'm because talking some

on commercial our in us management ] biggest Lots tremendous for [ senior The have our We Brazil. opportunities Leandro Dawson and Jeremy exist Kuna markets. talk of phone greatest about to activity. the

lot a that about there's we're Chris? forward talk we that So to. to have looking

Christopher Guinta

appreciate Yes. it. Thanks, Really Wes.

milestone these to expertise to optimizations. Notably, Since of FLNG dedication we process nameplate taking allowed in navigated have production our successfully gas achieving to in the and our operating exceptional we're the proactive capacity, highest our January windows late is demonstrating several reached So pleased optimal X first performing testament maximize operational above achieved key These nameplate when mentioned, to advantage uptime, us excellence. a enhance operators. as report measures asset that Wes of commitment we approximately team's outages asset conditions. implement capacity, the July, planned in efficiency production ensure was of to and XXX% is

strategies, to XX date, significant parallel, and To lower procurement consolidating renegotiating approximately taken vendor In including service shipped totaling improving TBtu. XX other contracts third-party steps support. we operating costs, cargoes we've

rise Additionally, by the XX%. approximately community our local XX% will of made increasing operators We region. the to to this proportion progress in Mexican of long-term XXXX, we've tremendous local figure workforce in anticipate reinforcing investment course commitment to the our over the

our to the expected Dulce yield annual Another molecules $XX of Hub, chain. which supply of underway is is further $XX from initiative optimize key Agua the million to direct and sourcing savings million

On year XXXX. a its officially the life step us This consistently the milestone marks of front, to significant of X ability ahead. in the asset asset's the in XX, exceptional performance service place due for into as continued cycle FLNG December accounting success and produce, and positioned the to we

have talk access is. construction tanks Category view mid-XXXXs and one birthing FLNG Flipping hurricane ideal access, whichever project an the reminder, only about the including generally, the has operational as Access direct that America, FLNG power infrastructure waters XX. Shell a in turn and are different with the years hit named is Altamira is open import to the before. infrastructure terminal. gas cubic and was point X. The it export pipeline and by cold the that Gulf heard only location and to to XX incredible Mexico, the to with last now. compared A on of materially a XXX,XXX protected us onshore from as operational of Gulf at meter includes X. a terminal in an incredibly this to or quick your an deepwater facility, comment project And of facility in facility was built Investors as an it Slide

same and have chosen time. engineering On didn't We started we FLNG the X, location. construction initially a at deployment

to partners. conceivable materially. of offshore early with that conditions We're is any Contrast constraints engineer making stark. construction have we've build sea also in So as as the easier to and with X as-built modules our in for taken to the know team condition The and gas this development and scenarios. engineered the our manpower weather the FLNG something was challenges which the what and multiple case drawings, of differences the the X the these already construction composition too asset able FLNG all project of now done impacted designed, had much of project to are schedule we well price, FLNG is all X and

January are location. the the and supply using procurement and We received. completion at basis as line construction time. the are and agreement summer signed for the the updates started of with slide, closely same process We outlined On in CFE expect Altamira FLNG a the we've additional gas deployment a provide CFE that construction the onshore as for of for commence this started currently as current asset. terminal in X working partnership the the to XXXX a of on the with permits and and modules time facility engineering FLNG next module and X onshore QX expected design of We XXXX

back-end the XXXX be we Over spent million on that $XXX remaining expected in spent spend to $XXX and or procurement about about The be is in with of last the million spent XX with loaded XXXX the $XXX being to million, remainder XXXX. the in months, to bulk modules.

-- X, shift Given construction the built FLNG X to given we built exact get risk are and the same for price for schedule were that modules certainty. the that contractor modules we the we that able to FLNG and

back X, a and needed. yard over Kiewit to the we or of of over it And As complete of kit shipped when on large as Puerto the to already the for majority ready the were at that, result modules. Rico. Wes pieces XXXX, of February either -- XX% I'll are With turn be

Wesley Edens

Thanks, Chris. Great.

let's flip Page the to page, XX. following So

a Rico Here's of facilities. bunch dots a represent in map Puerto with dots. power plants different The of

NFE there anerocites. facilities fuel their peakers new for plants, that So and plants targets there's power are are builds power the other switch. and current There's

So lots of dots on map. the

Just of we are. a bit where context little to

So March provide in have we Two right on the the our adjacent, runs of Army two today, where gas San there LNG which Core two a for gas Juan facility through contracts, the that and plant dot, built we where contract that to is plants provide San one we is are to the yard. the that XXXX. Juan power we gas have yellow X X we one

burn business That about time XX us. opportunity just generate the and switch currently billions derivative, TBtus save represent opportunity for The those X gas, conversions, about TBtus a amount natural ton for in to total and massive other of second, total to is talk X road. massive LNG. XX years about of take I'll significant basically by for a dollars miles The that is the Ricans diesel assets a and millions, in between XXX two of down in hundreds of The a us Rico Puerto them demand. the production of which of fuel-ready Puerto together over actually for

power build Lastly, business They the new in their significant. build years also very in announced January. XX plant new is first

and for comes it XXXX. in when We XXX providing to estimate TBtus that are the in need total gas for XXX We power volume. the new that between total will going be online generate

we to $XXX you in it all total. If now, to that million that million the you add million $XX grows take between $XXX up, have

biggest we gas Rico we're truly, where than of be. this a market we opportunity There's of fraction this nobody to believe on So market can that's better on are. the power the in position the Puerto world. and a Potentially today perform to access behalf in

Page have quickly. X The of San that real orange just Juan is and these that we seen the flip side that a X let's So times. boat you've XX, our in sits many are page front boat is the the photos facility. leased left-hand

there or weekend half side, contracts just that TBtu this on I'll of We about is two more in It less than island-wide and other use On it for talk the expired contract. year. of the XX March half a about a XXth, that it little one extended And contract right-hand are assets just And today. in that, we contract. second. a

Page XX, opportunity with. to to for win us help the easiest earliest for them the convert Rico and is and short-term Puerto

So XXX used are show megawatts, diesel. they we currently four there burning are here. that plants are They actually significantly.

a they are would at high prices The $X for roughly so they a cost high government for gas. what made diesel has pay priority. natural what between would And These and it pay priority. savings today's the be

on double Rico million the aligned of portfolio would Puerto very $XXX are $XXX alone our We This with save million a to year. that. size and them

So and something term. focused both on on a short very it's that win-win are the sides we in very,

term, new Page XX, it's all power. long about

power Puerto built expensive in the Rico situation. more So plant and before, bit desperate built power in context. XXXX for of is of XX% less the plant a little reliable, That's power. Average XXXX,

plant one schematically. be XXX-megawatts. upsized is that a years to to have new built originally to XX announced have First in is the plant. here power it They scheduled XXX-megawatt It shown they be be was that

provider to We are project. gas the that

$XXX margin able tremendous in amount in of customers XX benefit And business, the beachhead a capital roughly all for TBtus. At of having margins, no essentially the So the to that's for XX us. we're capital-intensive today's course, CapEx. XX This with years it margin million is roughly service at years spent efficiently. and generates of establish now this

roughly temp this think next the X-year already of We San be currently TBtus allows over power million contract growth. year. taken that and the in bulk contract, XX Page island-wide can to on the is XX. we announced Yesterday, extension savings that the Juan by fuel X. that to the them the from is of grow X maximum the We've the over use XX Puerto Rico TBtu gas up $XXX saved XX

way So converting Rico. to more more we gas savings this and for Puerto think the power more in burning plants by is manner fastest

having We this an fine. million is the basically, PREPA incentives about and with though in clearly $XXX us the the was Because incentive So paid had in of We've But let's as a with incentive ever from wanted exists of our billed the since last the or savings. more were of charge that the change for agreement They as contract. our gas gas didn't structure. it, one. initially generated which July And said the also them the XX% earned got fixated structure at basically $XX.X feel the million. between of became, from We heart incentive Mean $XXX Genera, first of have of We in Even on fuel of fee utilize times grow the government billed a XX. they consultation The that that comfortable by contract simple. government either is that and -- late we actually owned them, this that this the number savings to and paid base we talk million of course of then. the Page them million plants, over year announced after day them get basically and we convert operations night them cost is the lot Genera contract government a $XXX down business subsidiary and and payment. itself O&M sell there. quite wholly fee. very the manages -- exchange

you're what so we're focused lot it compromise with of And find understand a we consultation again, us. after, on is try try what, come with we know of focused and a and let's for works we'll both up and -- on, that you them, said,

$XXX goals. to save and A), them gas. more revenues more want generate billions money by get supply million, have One, B), to make owed. we we're be because trying more a our as and paid, we're in And we of to so, justly productive wanted and two grow owed Two, savings. we're of dollars We doing business; fuel

diesel So than manner this to more feel fuel with aligned try and compromise. $XXX generate would the to on a us. far that we are they Together, of we incentives. that island eliminate have us pay save decided off million. the for the in potentially them then They us We oil, incentive agreed and they structure take billions

With So about it's to let operations. a our Kunia win-win. very Dawson and Brazil briefly Leandro it over that, much Jeremy talk [ to of me ] turn Fellas

Unknown Executive

XX, Wes. much, Kunia to be NFE pleased name Good [ session, the over My Dawson. afternoon, this the in very everyone. X I'm Starting you NFE partner presenting of highlight since Brazil, Thank incredible Brazil Brazil want is past I to Leandro Jeremy on made take achievements Hygo. my alongside to in acquisition opportunity the almost years now ], Slide and has the

in have business During the the we this terminal. impressive significant LNG shareholders. with to Brazil. showcases per a a that our successful teraBtus supply prepared capacity laying assets approximately XXX to substantial and This time, for operate slide two investments each value sustainable groundwork deliver We terminals we of made year now built

the pipelines, operating to with aluminum Northwest key Barcarena one Brazil large the in big in to already you no one customer, hydro refinery. serve the a Our see is region terminal, can access

construction impressive under that plants our installed two capacity. in terminal an the Soon gigawatts of totaling power X.X will serve also of own region,

the used same gas is terminal, Catarina commissioned in major role Brazil to amazing XXXX. is terminal a terminal, import that capacity and for in of power Bolivia only a believe in purchase contracted is the which power the and an long-term ready will energy region. terminal from existing the reinforcing is way, following but Brazil, we I a secure gas by agreements to position capacity player The could will slides. not south be Furthermore, connected scheduled own upcoming XXXX our with details auction, to South for plants most pipeline to opportunity happen terminal play Brazil's landscape. the the on our fully opportunity We more provide as in services by and in Santa our Brazil, after to key auction projects, auction the also our in provide auction June NFE, the

Now let's contracts. move Slide to have existing want I built foundation business, overview And our an emphasize strong continuing Brazil to with through the XX, please. our of we in

with GSA on injected addition long-term long-term in into existing that terminal the the gas was for the secured than already capacity XX already over have revenue far any In XXX% to inflation-adjusted with run. This stable gigawatts secured It long only as years all the have ensures purchase do and side mentioned we to a agreement contracts price. the those contracts. NFE power terminal a those Brazil the I of necessary has Alunorte important project. agreements is It's its Barcarena funding, in for the stream PPAs. power concerned, plant still which highlight before, commodity equity funding we and almost supply of on contracted. I'm with contracted contracts, existing predictable pass-through PPAs, With they have commodity as also X.X index no NFE Both Alunorte in long-term risk the for that more

capacity in for until will believe margins a gigawatts NFE repricing upcoming the looking the requires South capital necessary would of Brazilian for wave XX are its additional This Terminal, growth registered represent the and elevates higher double debt for And of already also gas our long-term commitment could fully over focused of represents already has as financing NFE Meaning potential highlight in And their capacity contracts. the the NFE auction terminal, completion. and like next portfolio. terminal that great many secured And participate we our Brazil. projects, after its again, NFE auction. these gigawatts diligence investment June, This of action built opportunities. to we our that part in of to our Brazil. which the own market confidence expecting to foundation we auction are The expansion the which second ahead, near-term minimal is to to have growth big the for potentially capacity. over auction supply a contract could have And TGS was on the a that the on and size will front, I funded players X in in long-term that material disbursed. demonstrates

about give the Moving to XX, to an auction. Slide I'm going guys you overview

the advantage first So, and location. slide Supply a in existing terminals positioned to region products the this the part demand greenfield not that flexible all, of auction. reliable It's to but gas. of serve anticipated also our ideally upcoming highlights assets currently of TGS lack access from strategic only

If you to XX, move Slide please.

mentioned, I significant power for see in growth potential we scheduled auction the a June. As

As like system and PPAs gigawatts energy also to and between will the term project the plants and power JKM auction plants. fee pay similar is of years one and is years the auction we the XXXX from an own award fee new those international energy existing will of between be awarded that a called will very indexes, produce The contracts, the fee including existing be XX spot be plant, for in power its where for TTF. linked X.X PPA contracts this power XX to XXXX, can the to indices capacity power. Those Barcarena, expected project operation to whenever they to to for commence The gigawatts in and power will XX projects. this XX new our said,

projects. an own from supply before, NFE additional As our of mentioned X third registered received of requests gigawatts parties I for and this gigawatts to have gas already X projects to auction,

supply projects. to date little is very gas of terminal terminal commercial and capacity and starting targeting plan CapEx needs. utilizing operation revenue capture in of the that stream again the highlight terminal parts and substantial we as part already as new existing to to for with services, to NFE's, aiming supply September dedicate projects early of XXXX it's Our XXXX, equity and can between XXXX course, Supply growth important including of

our At this This our now we the strong opportunities demand that to stage, is LNG players and until overbooking in have an value terminal. Brazil date. underscores need of the select the only projects will support we the to for best of these to in auction growth our integrated of and few able power capabilities. provide is And right NFE capabilities. one Brazil

in that growth construction. Brazil. sure, to update We Brazil's the significant you development. who This it on Dawson, I an confident generate share I'm our give contribute a leading security value, position the provider of will Jeremy auction, over will capacity in a shareholders and NFE for will energy our economic and as are substantial will hand to now awarded energy reinforcing further secure

Jeremy Dawson

We're the schedule ahead Thank I'd you, everybody. I'm start I afternoon, building for I'm on one couple Slide operating Brazilian start assets. schedule. of to are like just good a of on upfront. responsible Leandro, case, construction. bottom with would and good news, slides. Dawson. line -- on budget. is we're Jeremy like The have to and XX. I with just we also the My But In name

able we the and in able CapEx have of regulatory is could for of and an themselves. any being risk, good to I capable contracting to on together. we've of is have delay consortiums have construction And eliminate geographical point we of slide, to right terms coming that done side back the out company. to to this leakage. excellent managing And risk parties that nice the or a any the back the I'd to outcome your most draw the also assets So job like attention If you which map been this cluster

the a then the Hydro in down into power second. about the just our refinery left, those of I'll both middle You Norsk plant right can see the alumina locations, And of in photo. just talk Alunorte

into becoming is to with assets assets to approximately will we are conclude the this of poor our that per in have demand then XX cluster frequent. cycle current in to gas start that a That on dispatch feet able plants a going Norsk. Norsk got XX And in cubic per But annum I'd increases volumes like CapEx counterparty cluster. summer. we very Brazil, of the tenure is million currently contract March It's This more with of which This be contract. contract, a next with year a in for creditworthy profitable 'XX. Hydro power servicing XX-year TBtu started be of potential Barcarena daily and hydrology that is in on supplying TBtus our facility. -- of a as per of month a the XX approximately we're cluster delivered upsizing basis, years day will to which a

quite power efficiency PPA to that's process plants, an plant cycle waste generated a a about dispatch to a which annual on about which amount project. although two important passes power heard an you significant all power have heat power plant output for by they're they're It by basis, expected through simple of XX% XX% that the mentioned of very does. update is XX-year plant a plant has before. The both you've and projects, We power terms -- different. give power on with power a is XXX-megawatt is Celba technology. using plant them. Mitsubishi and I'll The They're complete, before. the Leandro increase power That's this that captures and compared means any plant water combined a cycle the combustion turbine steam basically a to it which course, the plant, cycle

the of In of inflation dat,e adjusted. half of second pass-through and commercial this this will operation asset occur or the risk in year. terms COD, also The commodity

This different. used but Celba, the simple plant, is is application, is quite XX-year expected have nature of the start, a is It's power X.X and peak sort generally a is support, asset following cycle the XX% be which PortCem will asset. project, which The this to you summer. at has when fast of which COD kind of complete, is than less PPA a gigawatt dispatch any

you I now XX, I one. on and of If construction Slide get these each detail specifically please. the to go assets could a about want little talk to have bit into more

X the terms a the cycle, As phase mention, more plant and it's I Celba and combined bit this of is engineering in XXX-megawatt project. the being erection complex did of

And to consortium, been able Engineering the consortium. goals So and an on of chose Japanese place project firmly cost also secure on terms and consortium, of budget. schedule with lump-sum overruns the Toyo of a which time our engineering we consortium, and contracts, heavy Mitsubishi on have turnkey in equipment chose aligns risk the supplier. We the as completion

The XX% complete. project is

As commissioning. said, already started I we've cold

year. annually of second 'XX. we flows allows this We and power for project, the every semester onto introduce for a week, site especially the to commence this the project, the water the the plant, project. able second cash will for said, steam will water cycle. in us cycle of very important into a combined milestone Just had commissioning provide And which were firm water dispatch as I treatment to This project half start during

primarily construction rather that few a we project the construction makeup, and projects. the right. much are focused consortium related cycle of combined different the have activities because see complex on is a the photos a cycle. more than can simple different You of there to erection PortoCem, A civil nature

strong scope. turnkey of Brazil a experienced with has this contracts. chose is complete in basis part stage, joint track partnered Mitsubishi good and is They're planned, a the construction that of very our several very and is a a XX% contractor we to with local civil The very lump-sum project experienced record compared at on XX%. in also the So completion

So 'XX, capacity being immediately by commence revenues system ready I the being half the to significantly of we're we a payments to exchange said capacity schedule. pleased quite as of this in of notified in for healthy be a ahead a online before, It asset. The be upon This is contract capacity where standby is, very second will as before. I earn said contract operator.

to the in In very or point case, out one in inherent in the which world. challenges and that this interesting on wanted sort of interesting two Amazon. building area I constructing remote highlight PortoCem, of rainy we're are a -- the photos

that can erected essentially That very photo have season. do feet and tent the a to lot is long. feet balance see high It the equipment we is of over the first XXX during where almost bottom You going an area work a site. XX large the of on installation tent in of the left, we're site and rainy civil covering plant of over

arrive gas five the advanced could we that we It's interference one so That the is air the XXX is the one photo ISO route for of right dome Mitsubishi site. a and them will the you. XXX it months right I'll gas about with turbines. after we're construction rating that without in We're project United that. that departing state-of-the-art. the of to created of customer as currently you second manufacturing cooled turbines photo, two we the NFE. from currently a to fleet of an the Chris that, largest going one JAC gas is turbine. when largest that's the -- Port continue two facilities en output advanced States. megawatts. There Mitsubishi a as this second class world, largest in Savannah, these of world to of design -- in update. is route Mitsubishi's turn the of It to being the a turbine the are the now. loaded, it X see They'll about in Thank comes essentially, available turbines of own our It financials owner weeks, season. Georgia over is X few in turbines This in any on arrive -- gas weather at now to So of after over Then power other rainy With en

Christopher Guinta

Super. Thanks, Jeremy.

the fiscal quarter next walk on liquidity. on well and as and year both XXXX turn Let's update flow the to more cash the I'll an results section, for detail a as through financial little

included financing activities, We've some Slide to both and turning comments So past XX. on present.

the sheet. familiar, 'XX exchanged of 'XX that $XXX tranche in company included of notes of notes, all to refinancing series proceeds million 'XX notes, you're where XXXX a $X completed of $XXX balance a billion $X.X new transactions we As $XXX cash billion about of QX the XXXX, into million new of million

we revolver amendment $X to million lenders credit As billion part that our of of transaction, facility to an $XXX of XXXX. with agreed the revolving extend into October

addition, issued additional million $XXX our we CEO. In personal investment of anchored primary equity an by from

on earlier, $XXX we replacing this, XXXX which of loans select to in supportive associated asset sheet, the sales our as out incremental used million program. generate capital our can which place. level transaction investors commitments debt $X and under corporate better On that any Term fund we long-term down the And underway. with where X million. Wes institutional be balance pay cash at Loan This today, Loan FLNG payoffs, about funded $XXX facility used to well amount CapEx of and refinancing facility to have was priced relationship after Friday, processes we be will group Term terming talked of the members expect with has a situated billion debt. fees progression and the are in we raised from natural This proceeds closing of The B upside to puts are bank terminated net A asset we're further

that any using retire extend we event be will a to for in us. a we focus near-term do Specifically, from could sales proceeds asset but them, to eligible notes XXXX or the refinancing is

of this My once asset with delevering will that as the out have final right offtake which corporate level FLNG the corporate units, positive to maturities would take we and we the think will alike. profile, debt would we Loan we the combination our of Loan ratings, in is as Term extending completed, seen while expect term, structure that a well improvements interest agreements. Term to long-term holders B as capital is well these and debt expect Longer secured in equity of by best debt our financing the to We steps, downgrades result some A comment as be long-term here think the that lead upgrades. to remainder

takeaway portion the CapEx. and as is raise the of to and equity that pay refinancing And transactions a in completed to from as debt can we to result has capital that Slide we were committed company page our you well the long, see of this QX, as service XX. the the monetizing supply Flipping liquidity ample

adjusted be left have updated the to as has presentations, billion, the prior XXXX included already this Wes afternoon. $X this we've the that EBITDA side On page, a in embedded of walk flow we've cash in estimated described we

this on associated fully exclude FLNG sheet, CapEx, it but on continues is plant which costs with the On either now includes we balance to committed cash Brazil power financing funded sheet or CapEx, as facilities. cash through X balance restricted the have the that

For excluded to said with third associated to that's have year and we've we important balance notes, earnings but loans. of are 'XX consistent adjusted this of The the $X We've of term to to coming fiscal ship portion for documents But the delever. of this the we're discretion XX% publicly, charter any expense. represents assuming the assumes from debt of the service, hire that sale the XXXX. we've we that running a use again, proceeds a and pay debt. This from debt cash An in interest sheet. generated it in through asset proceeds. off billion that flow does is use RCF way the with And excluded on simple, sale keep the for paydown portion go of assumes results of asset is to parties, this the million minimum here and company note million includes EBITDA keeping the in what pay charter $XXX portion $XX of proceeds the that refinancing, cash exercise excess the off costs all pro rata increased of work, debt the

side to On from the cash alumina then of that year, proceeds balance beginning is financing million. add Term the we $XXX Loan was page, the the B just the million, $XXX have unrestricted right closed, show of which that,

our repayment of suite And negative from the $XXX the finally, FEMA million have of inflows after which million. cash $XXX debt cash the -- page. and the You of funds of side of yields expectation left claim, flow taxes

end-of-year of All in of results billion. an cash projection excess in balance $X.X this

to just $X.X margin and was Slide have Total XX, million for segment fiscal XXXX. Turning under results. the year and billion forward operating $XXX financial we for QX

'XX, operating incurred downstream through year. percentage XX% had up quarter. $XX $XX about margin. we of the million segment for from the margin $XXX was contributed for customers to largely which or cargoes similar transactions. professional year from is is and million market the For million which the A is total $XXX the to the the of due ships, were the our which around SG&A operating fees In QX, the refinancing for that million, slightly sold QX, this terminals full million sales from to XX% year for is revenue exists third full to the which Core for $XXX quarter QX, of

million or this is nil For was the year. the earnings were in in revenue previously fiscal quarter included quarter but segment that QX, and and line $XXX for XXXX, cargo a million represents The sales million deferred $XXX contemplated EBITDA recognized they $XX were for XXXX in per in forecasting we're fourth until not year QX QX.

and of for result the the the year million or third all of XXXX. for adjusted a $XXX As punch million line, this full EBITDA quarter $XXX

on Moving XX. to Slide

of million of For refinancing. and net of the the a to equity related with issuance charges debt. year of importantly, or of But part XXXX $XXX share. extinguishment of $X.XX QX, million $X.XX loss the for is the the that loss or net million $XXX which results for a GAAP million loss a noncash new fiscal as majority $XXX by issued per largely the $XXX driven was a was associated 'XX. QX a notes, of is share of

share items million that $XX income a other or million nonrecurring and $XX.XX for we for If in out, would of $X.XX result the and net QX $XXX you full income a of year net share. adjust

year, million fourth million. Finally, $XX quarter and funds for from operations for the $XXX the of fiscal

million fuel press year under just morning fiscal prior the regarding QX 'XX, out associated more 'XX, with release PREPA. contract little the we QX QX for incentive shared statement savings the recognized incentives and our termination -- notably of we've the high-level on impact fuel previously of In want that to the and PREPA. I a the financial earnings Now with this expand the financing $XX quarters, Genera

we that given However, are revenue. incentive that changing having reverse contract, are we to this

million $XX recognized we had during million fuel and $XX to in So savings in million another $XX been QX, recognize QX. during intending QX, fuel in savings we

periods, So cash year 'XX we future fiscal were is previously in hand. for million projecting in an and be that will the over excluded $XX but additional deferred EBITDA

Now, need disclosures to given over we ensure daily week, extra changing the a has couple of in appropriate been days past the XX-K. this and presentation

not XX-K note, So expect final as our within under adjusted the PREPA deal. turn the and week. It earnings a it I'll call that filing that notification earnings release of statement to result, income important any included do the results the Rule late over the a for the some Wes With will will material filing though, is reflective XXb-XX in back changes released SEC end additional filed with the of these updates. that, and X-K to we SEC. to Further, EBITDA today. expectation we file the be before the of are We is numbers our furnished with

Wesley Edens

Great.

questions. couple of and brief then a we'll to go updates, Just

three the actually save like thought end. most to I asked frequently the to So I questions, would

said We've public before, questions about sales. all asset information. So the this this is

can at and though, We ways. and pay proceeds as Which, way from us It pay than of old-fashion to two, values we we intend forward. company. use assets you move sell accretive Number bigger a do, become those are down factor two that you and bigger to and one will debt. for making down can more spend the money debt. that Deleveraging very by focused on deleveraging to happen using happen can the course, of

Jamaica. we asset that first The on focused are is

So went Jamaica is the country we first. where

most contractually. million time and in oldest it's is TBtu businesses these happens over It's its that's of about all of just by So assets. $X that CapEx $XXX because of and of to market, Virtually a loss flow very cash downstream It's an in years little credit years is suffered run never XX XX-plus generate attractive up It's dollar the market. supply. assets are running, it's profile We what about entire downstream there's It's EBITDA. U.S. based. our developed that XXX% review, got they're got extremely to demand gas history. of once them. XX-plus of

down it market, phenomenal actually It's So we're very, a a in asset. phenomenal lucky is there. very that have people with good to work we and

So now not it's although there. on outcome asset. the surprisingly, a And in quarter. for process of very folks. exact handful hard go you from to it's We're fourth been kind timing kind we'll like, has of this, We with thus the process always then the predict after a if very this a and far been different positive in back soft of started a final

update. asset the it's sale So

for FEMA, disaster with word, works a a my productive us, providers. then contracts in a out everyplace we play both and FEMA, you the in seriousness, but administratively turn prime it letter role, that in contractor, is that by Corp, in also that They place FEMA. massive relief money very favorite just way contracted is FEMA all else. West paid in has Rico, period with who then obviously wildfires that the four time the turn is of a Army have the Puerto like been -- very,

we So role deeply value respect. it's critical that a critical, and

comprehensive interactions the with had of Corp in-person most folks. kind Army the have We

and in terms terms our think this of explaining -- and contract. learned I lot the about all aspects the the them us between to what of them a exactly amount have whatnot. accomplished of think is in interaction from an about level date the of process and we right have provide there good now, I how that explaining the different business -- us say and that we've great we nature and a how of and And the the is understanding gas constructiveness and is a them high it. of for can we an that them very all-time they across feel interactive but at FEMA between not respect between process about of It's board definitive does sure, and

in effort January center the Klondike there. provide data filed developments. portfolio -- asset we in is Lastly, and is get plant that We is That building Pennsylvania. first in to power air that early our we the to permits have build would to for asset power that our -- permits

respect of are expect And news we marketing middle of hopeful year, and to the good we'll in those later construction year. the consummation that it. with sometime this We with get this have to

updates. three the are those So

Last in year a $XXX it's is at you quarter in million been thing $XXX say QX, when the a and obviously year EBITDA, would million look I total, heck the just the of EBITDA. in period.

is what for said just guidance -- what Our billion, year we're we reaffirming which next is $X before.

the significant markets incredibly power power us. of gas are biggest ones two We're that the the power flow plant, both to that positioned we expect upcoming, could that in Brazil, through the well biggest perhaps went in in market the in are most opportunity world. the they and biggest be in Our to have The on first Leandro for auctions us. as importantly, second Rico, produce the the assets Puerto opportunities. half cash for South. turn and North year

XX% in area. live are Juan, We geographic provider that San of sole the over the of where in gas people

well positioned. we we're incredibly So feel like

for was a beginning been balance very busy It at of The productive better has $X.XXX in very, shape structure is than year billion Capital it much the later. it. wise us. and sheet

have We went Chris liquidity, as through. excellent

simplify poised have. the business. we that deleverage, grow those the perspectives are And are We to and

a up pause, it we'll So with and questions. to that, open I will very much. take you Thank

Operator

first Instructions]. we'll with Ben question Stifel. our take [Operator Nolan And from

Benjamin Nolan

questions. you taking appreciate my I

start, first, much talked us? is has between bit that of on have the then little you're a on you you talk And I locked annual been portion available? that fixed. of a to supply. TBtus for Slide position. open put you in buying it maybe How XXX Can about a wanted context the about me we you and effective that So quantify maybe could, Can help your little X, producing where if what you spread

Wesley Edens

majority sold or or is our customer of for downstream majority position, a vast destined The of either Yes. hedged. the it

So that our there we actual as caveat being of we to up slightly that that I would we let long the position more as potentially think there made, basically, box show ahead. was, And the the said, was didn't really Ben. extent the With something evaporate. that derisk lot decision to yellow the that, than want But is volatility a portfolio. to

point, to somehow eroded to, And so in then Or TTF exposed not in us sheet. our be this we decrease and to either at already balance in is profits we TTF the the had were somehow goal that increases actually that short. hurt because

And actually why and we right so approach conservative that thought we up. hedge one, that's it the the was

be are when first the here volumes. FLNG are the Obviously, in will portfolio are we of comes interested already the talking buying them. into 'XX, X incremental people that that Those kind those part volumes to in of

good a to it's position in. So be

that it's are but position, a yet sheet balance not long So neutral. something the be that it. would about -- the deliverable deliverable a is But we essentially on positions technically

price either -- said, so moves. we've discretely from either we committed or insulated we I that So have as hedged sold, them are actually have we

Benjamin Nolan

number undertake, in question, in update had Puerto I guys conversations And Jamaica. past, give that you or Could were looking they -- where that be and Okay. those that look on are that maybe like, in for you we've were then saving in know my cost first next would in in the or a process? Islands be of all, meaningful there of initiatives what any how you to [indiscernible] Rico

Wesley Edens

ships out say from the of the I'd the are the FSRUs majority and Yes, savings balance sheet. of cost

some they're gap got us realize opportunities And we've talked market about initiatives are So and more profit come between market. we've the to to the back try Those have to priced. on where that under FSRUs that side. are

kind five of to of side, ships increased we the When trying two the -- five we're we've number abundance provided from two. Puerto from and of the the that we to we reduce ships. -- increased to we On supply in of Rico. other got portfolio gas an We started

and also the in that will we're tremendous meaningful. effort able and Puerto well well, that is chain, that focused what berth on have of we other to We a and -- they're now. in then right refurbishing time a think supply of And be ship to bigger take a basically and spent So upgrading Rico that's underway. amount initiatives handful we simplify that

significant a of of really One version lot pretty that, of we've every basically opportunities. shipping that things imagine, can And millions touch think of about much been there you that have in as the built terminal we we of the everything business, has as interesting are learned part And things. you some dollars. that is is just worth

reduce is you use can can of efficiently, or two it just So focus. the meaningful a you amounts money, if ship save or really and that more

we've really grow On a hard business there's people opportunities always and think of the have that But to the and we continue work people side, effectively. core obviously, great to extremely whatnot. got

side definitely there's think so we good that ship opportunities to labor on less think some meaningful of do And there's on the we work. But side. the it,

Operator

from next our we'll question And Chris take Bank. with Robertson Deutsche

Christopher Robertson

of there. a to but power the overview going Leandro laying did was Brazil I auction, good an ask pretty about job

wanted a that X of question ask gigawatts power of your bit registered own more specific you him I a So to projects. about the

Just what something like And CapEx about How of number in look makes you that? of different gigawatts? turbines? thinking the X estimated the terms source are like might you where that for up that projects would

Unknown Executive

Hi, Chris, question. thanks for your

I projects. straight went gigawatts to the for this said, be availability. the thing we X will registered to turbines most we secure as So in I And we auction And difficult it. you have mean, point. did --

O&M one of security partners. from are have the turbines our we So that

the plants, we to and only So not we is XXXX I'm are turbines qualified projects, for which have kilowatt somehow CapEx sites with we And to EPC available, also lump but we auction spread date, partner what connected many for and over at same projects different provide also we just Nevertheless, to sum we for those last be have around mirroring The for gas per the would pipeline going hired us. confident $XXX year are full that two do that the here that turnkey total. interested be those did they other 'XX that 'XX. PortoCem, initially. the COD

that June a So the auction could number bit. until increase in

Christopher Robertson

a guys Okay. assets existing I are have here you're going conversations coming when in How with gas talking and partners guess as potential are to supply those follow-up, a you the that as capacity dispatch potential does payments and variable conversation? that. on part of sharing of like? Is for in what that addition part in to the that spread potential fixed the some look the partner. Or

Unknown Executive

discussing And power Yes, a are plants absolutely, those what -- there with produce whenever kind the we end gas system supplying about to potentially gas in assets. to are call mean available of day, power right? Chris. option, the I is projects Because of brownfield the need needs.

whenever they gas required are power. produce they So need to to buy

be it's which terminal our to fee, need So pay it's call going call strike mean, over price to And a I plus that call is a JKM. premium us, gas the for gas a option, order that will buy option. in the yes, to option they for premium

all charging already done the contracts expecting have whenever high I they fees are buy in yes, or the they that strike price terminal So capacity would we that gas. before players in country, because a fees the say

So all now, having discussions the are that right already we that they are direction. on

Operator

question our Elmaghrabi Sherif We'll with next from take BTIG.

Sherif Elmaghrabi

A couple Rico. Puerto on

First, can a volumes Island-wide How to some to contract. lot the that as over $X seems like guidance, we it upside plants of gas? these of older of think EBITDA there's about billion building to under switch quickly

Wesley Edens

regas can they as quickly as Really get installed.

is simply needs that regas entirely sits just convert which unit The plant It's buffer and they mega a are place. gens basically It thing. plant, put now in a gas a connected system you Mayaguez stock, Cambalache tank of to gas hat. same And XXX actually The gas-ready convert the fairly we at of megawatts. XXX them a and regas could between The it. a the can do, regas in have is actually kind actually so plant It's actually quickly. is if so ready. regas the drop what of you

asset the plant Aguirre work. then is actually ready some technical And today. The needs other

is So them. the conversions one we and significant, with short-term the the opportunity and it factors became on the really had of discussions

we incentives. with money with say, power would the still they our and incentive even save objectives want notion As uncomfortable it uncomfortable share look, it island, to And that And notwithstanding just selling down I revenues they of an want were be the the and more were that's to an want and the lot we certain what contract, to sit and and a save you -- generating are calls for in and gas money. though objectives. easy provide to we basis, on said, go-forward the they save on to gas they we earning want contract and was decision to

and few And There easy in so a is transaction. a life simple win-wins. truly that it's one of This very, are are things them. very

we're part we So to initiatives that, activity conversion significant a there's these the the on on because our think do we going and side. on of manifest that be happy to think quickly amount that become benefits will

Benjamin Nolan

March? And of are renewal work number contract helpful fixed like how longer of a the every contract kind then extension for just term, roll does options does Island-wide there it or color. That's

Wesley Edens

security. for in of would like the an recognize couple to contract and more couple Obviously, it part new months ago it. energy options. us, instability for different energy RFP time, of of what said, we to to the terms Only they a get a into extension critical run is creates a the volume came to a sector year-by-year really add tenor more first They have today. duration. me There's government the as significantly their gas of critical of more came would that the But

XX years talked is years or XX duration a And longer. so this even or something having of we about

on that's what know new like we the new on tenor looks a the the signed power contract So that plant, we XX-year.

the time expect associated of what on expect now. So it -- with would portion but now. in it there future up end they happens a of than being with that I I would And at be right specific have duration, something that not-too-distant will least that will right significantly longer no

Operator

with next our take Brothers. Tuohy from question Shere Craig We'll

Craig Shere

or the with XX -- just the contract Island-wide PREPA. extending on longer question term, continuing renewing with On about TBtu

you initial diesel-link were diesel-linked. the were forever, but is I sales. your it just -- years, So XX supply may on like ahead. But margin XX sales island that this go be sales, TBtu But in won't mean gas gas right?

Wesley Edens

initiative ironically was because linked crystal definitely diesel-linked it was our to It was make to won't our savings We clear, The initiative. a it there want be. savings.

So like we diesel.

diesel, us XX% it end notion It's at save and that they say, really of selling objected pricing incentive you It the And was you'd money. day. you the became of Why for the of you're charging not but also to just discussion. So gas, been that at of the it, of -- the wasn't that this XX% heart hard. are the an

I the new think new Hub power the and signed plant we contract is base. that Henry

think different were diesel when they we a artifact Hub-based from That certainly an Henry redo trying be go transaction not this will to fit that of It's the natural part I a to savings. it. do. was a to

perspective, just megawatts to gas it X put again, burning to X.X mean, of have But needed. new diesel plants or gigawatts today, I XXX in power have, you of probably you

or are another XXX We built XXX that right whatever. that are now megawatts peaker plants being have the or

this. them talked a running mean steamer on boilers amount to of for old some converting of even plants, about their tremendous room we've So gas. those there's I with

now that, assume bet they that That the kind the more will profitable us. a part fact logical if emissions, seems opens we'll like on very more think that outcome. have gas. based this that of it, we've And will bet. it's I of to do gotten it's be for a up. our incentive that I sell people and So on right? That's want It less And save log money I that think past point kind a of jam then

And that's what That's both aspect the of actually us. the win-win opportunity of it. short a like given a is great seems so for run in the

Craig Shere

you're have Henry sufficient to respectable diesel Hub the plus? from Henry with LNG at conversion availability, given And the margins plus, still you selling Hub confident

Wesley Edens

of We think with portfolio. the across appropriate that are do. margins and the consistent rest We the are they what

sell quite XXX level, affect I it So said, the And need gas you're add think margin it good obviously, TBtus. basis. your -- but on it's be you total situation. some that may a Like if the at all a more could up, volume you the I XXX or probably likely XXX or

size many of currently XX many, have. you the the TBtus So times

just savings, a could huge billions deploying think there's and and be it's there's efficiencies savings And of that us, much in -- billions frankly. of obviously market. of them, -- of for a lot gas, a So lot dollars we there's for

Craig Shere

XXXX I $XXX Got just to And $X in payments EBITDA? the of quick, you. want billion the a [indiscenible] guided real confirm part is million

Wesley Edens

is. It

Operator

our Suki take One. with Capital Wade from next question We'll

Wade Suki

missed If Just interim could. kind sales speak to I $X.X thought the guidance, might sort from an could if step there's of things billion. somewhere, it was if guidance, you one have of on parts in guidance, I around like are I billion $X but moving wonder anything I the nonrecurring? asset prior embedded to

Christopher Guinta

$X we're of guidance would The FEMA the XXXX. billion in is not exclusive No, plan. for claim change simple that same That's the claim. the including be

Wade Suki

speaking book, you so and Any the frame. That's kind just think to the book switch book open up these running the X, is color give cargoes third-party bit, if little wondering to give gears the FLNG 'XX/'XX get time you of what on situation the out us just us question what I third-party -- it might supply would maybe I not term, could dovetail be and excluding a Ben's years, supply talking whatnot. the in color earlier, longer supply be have able on projects I'm it. X supply great. about about Got was I and on thought. -- And and to

Wesley Edens

coming have on more gas, function the thus I the Europe why the The mean, available. you tightness with impact, to profound particular and of I that would back obviously, markets, a on shortness if was That's go, prices the further that Russian Yes. a the in of in is Europe gas out -- on the into is in market the gas. really pass, Russian in certainly restrictions European worldwide. supply think,

a further out. go activity go prices the there's out, you the tremendous on amount obviously and As of side construction

is lot And that -- looking of gas longer-term for there's if you a especially so you're tenor, available.

million long-term respect to portfolio, with we contracts. our of in So tons do a couple have

our FLNGs. have own We

have long So we very dated.

maybe I supply. layer as portfolios, to extend that look -- likely duration and of to amounts some then think you're in in you of these other also then

portfolio. it's large So a

well it. -- I we said, a is as matched basis, As on it's we can make like it current as feel

usage of all different So into the amounts to best on Generate But it. elevation some do that's significant price. to upside and levels these. what in of predicting the earnings still some of it's advantage our the take but maintain with portfolio, customers, try like the the different derisk you're factors to there's always abilities, we

I And especially available creditworthy goal. think, But is so readily for lots longer gas, with there's term, that the longer-term downstream. projects, of that's

Wade Suki

you Appreciate it. squeeze Thank Perfect. Can so more much. one I in?

Wesley Edens

Sure.

last the I you're think question.

Wade Suki

again, more plants. existing adding sort and if the Okay, great. plants. thinking about Thank you. expanding Brazil that I'm anything be PortoCem -- thinking great. I'm in to do Is that of there auction? would so of maybe just up, there's and Anything the anything like it's or kind wondering Anything Celba coming capacity creatively you there more auction that, with can in the participate whether creative

Wesley Edens

incremental only contracts. think we that on them we long-term very That They're that. commit answer even can tied I once. terminal. Leandro the committed, unfortunately, can So for capacity is and there the PortoCem said, The are plants to Celba at right?

options And that in they so on and the of gas, et and obviously, cetera. have, it. opportunity, cash unbelievable the in greenfield our something there array power the terms Leandro that the down both guys sites Jeremy terminal, that's in the auctions judgment, of in of thick brownfield and and flows, The are other an are the both

the either overall amount in sheet. opportunities focused in or maximize balance built but The the now of a just to past, minimize there's where actually lots tremendous one acquired that that, the ways. CapEx, terminal of is I our bought free the business of point on flows, cash these different without grow on flow We impetus plants. different would building very reinforce stuff think to partner and then is We're we that cash PPAs

it, lots in going So so think be opportunity on. while capital you to put to we we And very into actually of that we're can so. do that's something there's that, focused think this {indiscernible], very,

Operator

any the remarks. additional this for I'll back turn conference or At time, closing

Wesley Edens

it a on night. again Great. forward soon. Well, to you your Monday time We everyone, talking appreciate thank Thank and for you. you, look to

Operator

And that concludes for today's your call. participation. Thank you

disconnect. now may You

New Fortress Energy (NFE) 3 Mar 252024 Q4 Earnings call transcript