<\/p>\n
New Fortress Energy Announces First Quarter 2023 Results<\/b><\/p>\n
NEW YORK–(BUSINESS WIRE<\/a>)– Summary Highlights<\/span><\/b><\/p>\n Puerto Rico<\/i><\/p>\n Fast LNG<\/i><\/p>\n Terminals<\/i><\/p>\n Commercial<\/i><\/p>\n Hydrogen<\/i><\/p>\n Other Developments<\/i><\/p>\n \nOn May 3, 2023, NFE\u2019s Board of Directors approved a dividend of $0.10 per share, with a record date of June 15, 2023 and a payment date of June 28, 2023.<\/p>\n Financial Highlights<\/span><\/b><\/p>\n \n\u00a0<\/p>\n<\/td>\n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n (in millions)<\/i><\/p>\n<\/td>\n March 31, 2022<\/b><\/p>\n<\/td>\n December 31, 2022<\/b><\/p>\n<\/td>\n March 31, 2023<\/b><\/p>\n<\/td>\n<\/tr>\n \nRevenues<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n505.1<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n546.4<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n579.1<\/p>\n<\/td>\n<\/tr>\n \nNet income<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n241.2<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n65.8<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n151.6<\/p>\n<\/td>\n<\/tr>\n \nDiluted EPS<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1.13<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.30<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.71<\/p>\n<\/td>\n<\/tr>\n \nAdjusted net income<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n161.8<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n182.7<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n187.6<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EPS<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.77<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.87<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.90<\/p>\n<\/td>\n<\/tr>\n \nTerminals and Infrastructure Segment Operating Margin(12)<\/sup><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n211.1<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n196.0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n402.1<\/p>\n<\/td>\n<\/tr>\n \nShips Segment Operating Margin(12)<\/sup><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n89.0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n87.5<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n78.7<\/p>\n<\/td>\n<\/tr>\n \nTotal Segment Operating Margin(12)<\/sup><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n300.1<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n283.4<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n480.8<\/p>\n<\/td>\n<\/tr>\n Adjusted EBITDA(1)<\/sup><\/b><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 257.7<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 239.3<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 439.7<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Ple<\/i>ase refer to our Q1 2023 Investor Presentation (the \u201cPresentation\u201d) for further information about the following terms:<\/i><\/p>\n<\/td>\n<\/tr>\n \u201cAdjusted EBITDA,\u201d see definition and reconciliation of this non-GAAP measure in the exhibits to this press release.<\/i><\/p>\n<\/td>\n<\/tr>\n \u201cIllustrative Adjusted EBITDA Goal\u201d is based on the “Illustrative Total Segment Operating Margin Goal” less illustrative Core SGA assumed to be at $180 million for all periods 2023 onward including the pro rata share of Core SG&A from unconsolidated entities. \u201cIllustrative Adjusted Net Income Goal\u201d is based on the “Illustrative Total Segment Operating Margin Goal” less interest expense, tax expense, SG&A not included in core SG&A, including business opportunity screening costs and stock compensation, equity investment income, interest income, and depreciation and amortization. \u201cIllustrative Total Segment Operating Margin Goal,\u201d or \u201cIllustrative Future Goal\u201d means our goal for Total Segment Operating Margin under certain illustrative conditions. These illustrative financial metrics are based on management\u2019s expectations and are not based on generally accepted accounting principles and should not be relied upon for any reason. There is no guarantee that we will reach our goals and actual results may differ from our expectations. Please refer to this explanation for all uses of this term. \u201cIllustrative Adjusted EBITDA Goal\u201d reflects the volumes of LNG that it is our goal to sell under binding contracts multiplied by the average price per unit at which we expect to price LNG deliveries, including both fuel sales and capacity charges or other fixed fees, less the cost per unit at which we expect to purchase or produce and deliver such LNG or natural gas, including the cost to (i) purchase natural gas, liquefy it, and transport it to one of our terminals or purchase LNG in strip cargos or on the spot market, (ii) transfer the LNG into an appropriate ship and transport it to our terminals or facilities, (iii) deliver the LNG, regasify it to natural gas and deliver it to our customers or our power plants and (iv) maintain and operate our terminals, facilities and power plants. For vessels chartered to third parties, this illustration reflects the revenue from ships chartered to third parties, capacity and tolling arrangements, and other fixed fees, less the cost to operate and maintain each ship, in each case based on contracted amounts for ship charters, capacity and tolling fees, and industry standard costs for operation and maintenance. There can be no assurance that the costs of purchasing or producing LNG, transporting the LNG and maintaining and operating our terminals and facilities will result in the Illustrative Total Segment Operating Margin Goal reflected. \u201cIllustrative Adjusted Net Income Goal\u201d reflects our Illustrative Total Segment Operating Margin, less interest expenses from our debt facilities assuming a weighted average interest rate of 8% on $6.6 billion pro forma outstanding debt offset by capitalized income of $150 million per year from 2023 onward, taxes at an effective tax rate of approximately 15%, non-core illustrative SGA, approximately $13 million per year illustrative income from equity investments in joint ventures, interest on outstanding cash balances equal to approximately 8% on unrestricted cash accounts, and depreciation and amortization in an aggregate amount of $40 million per quarter on our operating assets, including FLNG depreciated over a 20-year life starting on its expected date of start of operations. For the purpose of this presentation, we assumed no other income and expenses to be incurred under generally accepted accounting principals. For the purpose of this presentation, we have assumed an average Total Segment Operating Margin between $12.94 and $18.35 per MMBtu for all downstream terminal economics, because we assume that (i) we purchase delivered gas at a weighted average of $6.12 in 2023, (ii) our volumes increase over time, and (iii) we will have costs related to shipping, logistics and regasification similar to our current operations because the liquefaction facility and related infrastructure and supply chain to deliver LNG from Pennsylvania or Fast LNG (\u201cFLNG\u201d) does not exist, and those costs will be distributed over the larger volumes. For Hygo + Suape assets we assume an average delivered cost of gas of $16.00 in 2023 based on industry averages in the region. We assume all Brazil terminals and power plants are Operational and earning revenue through fuel sales and capacity charges or other fixed fees. For Vessels chartered to third parties, this illustration reflects the revenue from ships chartered to third parties, capacity and tolling arrangements, and other fixed fees, less the cost to operate and maintain each ship, in each case based on contracted amounts for ship charters, capacity and tolling fees, and industry standard costs for operation and maintenance. We assume an average Total Segment Operating Margin of up to $182k per day per vessel and our effective share of revenue and operating expense related to the existing tolling agreement for the Hilli FLNG going forward. For Fast LNG, this illustration reflects the difference between the delivered cost of open LNG and the delivered cost of open market LNG less Fast LNG production cost. Management is currently in multiple discussions with counterparties to supply feedstock gas at pricing of approximately $4.31 per MMBtu, multiplied by the volumes for Fast LNG installation of 1.4 MTPA each per year. These costs do not include expenses and income that are required by GAAP to be recorded on our financial statements, including the return of or return on capital expenditures for the relevant project, and selling, general and administrative costs. Our current cost of natural gas per MMBtu are higher than the costs we would need to achieve Illustrative Total Segment Operating Margin Goal, and the primary drivers for reducing these costs are the reduced costs of purchasing gas and the increased sales volumes, which result in lower fixed costs being spread over a larger number of MMBtus sold. References to volumes, percentages of such volumes and the Illustrative Total Segment Operating Margin Goal related to such volumes (i) are not based on the Company\u2019s historical operating results, which are limited, and (ii) do not purport to be an actual representation of our future economics. We cannot assure you if or when we will enter into contracts for sales of additional LNG, the price at which we will be able to sell such LNG, or our costs to produce and sell such LNG. Actual results could differ materially from the illustration and there can be no assurance we will achieve our goal.<\/i><\/p>\n<\/td>\n<\/tr>\n Refers to the award of a 10-Year contract for the operation and maintenance of PREPA\u2019s thermal generation assets with the goal of reducing costs and improving reliability of power generation in Puerto Rico awarded to our subsidiary, Genera PR LLC (“Genera”), in the first quarter of 2023. Pursuant to the award, we expect to receive an annual management fee and be eligible for performance-based incentive fees, beginning after the service period under the contract commences.<\/i><\/p>\n<\/td>\n<\/tr>\n Lead times and expected development times used in this press release indicate our internal evaluations of a project\u2019s expected timeline. They refer to us completing certain stages of projects within a timeframe and within a spectrum of budget parameters that, when taken as a whole, are substantially consistent with our business model. These timeframes include assumptions regarding items that are outside our control, including permitting, weather, and other potential sources of delay. To the extent that projects have not yet started or are currently under development, we can make no assurance that such projects are on track within the timeline parameters we establish. Additionally, the construction of facilities is inherently subject to the risks of cost overruns and delays. If we are unable to construct, commission and operate all of our facilities as expected, or, when and if constructed, they do not accomplish our goals, or if we experience delays or cost overruns in construction, estimates regarding timelines, budget and savings could be materially and adversely affected.<\/i><\/p>\n<\/td>\n<\/tr>\n 6)<\/i><\/p>\n<\/td>\n 7)<\/i><\/p>\n<\/td>\n 8)<\/i><\/p>\n<\/td>\n 9)<\/i><\/p>\n<\/td>\n Refers to the date on which (or, for future dates, management’s current estimate of the date on which) natural gas is first made available in our projects, including our facilities in development. Full commercial operations of such projects will occur later than, and may occur substantially later than, the date of first gas. We cannot assure you if or when such projects will reach the date of delivery of first gas, or full commercial operations. Actual results could differ materially from the illustration and there can be no assurance we will achieve our goal.<\/i><\/p>\n<\/td>\n<\/tr>\n 10)<\/i><\/p>\n<\/td>\n 11)<\/i><\/p>\n<\/td>\n 12)<\/i><\/p>\n<\/td>\n Additional Information
\nNew Fortress Energy Inc. (Nasdaq: NFE) (\u201cNFE\u201d or the \u201cCompany\u201d) today reported its financial results for the first quarter of 2023.<\/p>\n\n
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\n \n \n 1)<\/i><\/td>\n \n \n 2)<\/i><\/td>\n \n \n 3)<\/i><\/td>\n \n \n 4)<\/i><\/td>\n Refers to the selection by the U.S. Army Corps of Engineers of Weston Solutions, Inc. (\u201cWeston\u201d) to support Puerto Rico\u2019s grid stabilization project with additional power capacity to enable maintenance and repair work on the island\u2019s power system and grid. We have entered into agreements with Weston for the installation and operation of 150MW of additional power to be generated at the Palo Seco Power Plant in Puerto Rico as well as the supply of natural gas. We have also entered into agreements with Weston for the installation and operation of 200MW of additional power to be generated at the San Juan Power Plant in Puerto Rico as well as the supply of natural gas. We have also entered into agreements with Weston for the installation and operation of 200MW of additional power to be generated at the San Juan Power Plant in Puerto Rico as well as the supply of natural gas.<\/i><\/td>\n<\/tr>\n \n 5)<\/i><\/td>\n \n \n \n Refers to the award of a 10-year contract by the Single Electricity Market Operator (SEMO) to Shannon LNG Limited, a subsidiary of NFE, for the delivery of 400 MW of electricity generation capacity at the site in Kerry, Ireland by October 1, 2026. The contract was awarded following a competitive auction process, operated by SEMO, and regulated by the Commission For Regulation of Utilities (CRU) and the Northern Ireland Authority for Utility Regulation (NIAUR).<\/i><\/td>\n<\/tr>\n \n \n \u201cOnline\u201d, \u201cOperational\u201d, “Operating”, “Completion”, “Completed”, \u201cCOD\u201d or \u201ccommercial operations date\u201d, \u201cCommissioning,\u201d \u201cCOD\u201d or \u201ccommercial operations date\u201d, \u201cCommissioning,\u201d \u201cDeployment\u201d or similar statuses (either capitalized or lower case) with respect to a particular project means we expect gas to be made available within sixty (60) days, gas has been made available to the relevant project, or that the relevant project is in full commercial operations. Where gas is going to be made available or has been made available but full commercial operations have not yet begun, full commercial operations will occur later than, and may occur substantially later than, our reported Operational, Completion or Deployment date, and we may not generate any revenue until full commercial operations has begun. We cannot assure you if or when such projects will reach full commercial operations. Actual results could differ materially from the illustrations reflected in this press release and there can be no assurance we will achieve our goals. Our ability to export liquefied natural gas depends on our ability to obtain export and other permits from the United States, Mexican and other governmental and regulatory agencies, which we have not yet obtained. No assurance can be given that we will receive required permits, approvals and authorizations from governmental and regulatory agencies in connection with the exportation of liquefied natural gas on a timely basis or at all.<\/i><\/td>\n<\/tr>\n \n \n Refers to the binding short-form agreements with Comisi\u00f3n Federal de Electricidad (\u201cCFE\u201d) related to the (i) expansion and extension of NFE\u2019s supply of natural gas to multiple CFE power generation facilities in Baja California Sur, and (ii) sale of NFE\u2019s 135 MW La Paz power plant to CFE. These transactions are subject to customary terms and conditions and execution of final long-form binding definitive agreements. We cannot assure you if or when we will enter into long-form definitive agreements related to such projects or the terms of any such agreements. Furthermore, upon execution of long-form definitive agreements, we cannot assure you if or when conditions to such agreements will be satisfied, or if we will obtain the required approvals for the transactions set forth in such agreement.<\/i><\/td>\n<\/tr>\n \n \n \n \n \n \u201cUnder Construction\u201d, \u201cIn Construction\u201d, \u201cUnder Construction\u201d, \u201cDevelopment,\u201d \u201cIn Development\u201d or similar statuses means that we have taken steps and invested money to develop a facility, including execution of agreements for the<\/i> development of the project (subject, in certain cases, to satisfaction of conditions precedent), procuring land rights and entitlements, negotiating or signing construction contracts, and undertaking active engineering, procurement and construction work. Our development projects are in various phases of progress, and there can be no assurance that we will continue progress on each development as we expect or that each development will be Completed or enter full commercial operations. There can be no assurance that we will be able to enter into the contracts required for the development of these facilities on commercially favorable terms or at all. If we are unable to enter into favorable contracts or to obtain the necessary regulatory and land use approvals on favorable terms, we may not be able to construct and operate these assets as expected, or at all. Additionally, the construction of facilities is inherently subject to the risks of cost overruns and delays, and these risks of delay are exacerbated by the COVID-19 pandemic. If we are unable to construct, commission and operate all of our facilities as expected, or, when and if constructed, they do not accomplish our goals, or if we experience delays or cost overruns in construction, our business, operating results, cash flows and liquidity could be materially and adversely affected.<\/i><\/td>\n<\/tr>\n \n \n Refers to the agreement between the Company and Golar LNG Limited (\u201cGLNG\u201d) for the sale of NFE\u2019s ownership stake in the 2.4 MTPA floating liquefaction facility Hilli in exchange for the return of 4.1 million NFE shares and $100 million in cash. As part of the agreement, NFE also extinguished $323 million in debt obligations associated with its interest in the Hilli.<\/i><\/td>\n<\/tr>\n \n \n \u201cTotal Segment Operating Margin\u201d is the total of our Terminals and Infrastructure Segment Operating Margin and Ships Segment Operating Margin. “Terminals and Infrastructure Segment Operating Margin” includes our effective share of revenue, expenses and operating margin attributable to our 50% ownership of Centrais El\u00e9tricas de Sergipe Participa\u00e7\u00f5es S.A. (\u201cCELSEPAR\u201d), prior to the disposition of this investment in the fourth quarter of 2022. “Ships Segment Operating Margin” includes our effective share of revenue, expenses and operating margin attributable to our ownership of 50% of the common units of Hilli LLC prior to the disposition of this investment in the first quarter of 2023. Hilli LLC owns G<\/i>olar Hilli Corporation (\u201cHilli Corp\u201d), the disponent owner of the Hilli.<\/i><\/td>\n<\/tr>\n<\/table>\n
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<\/span><\/b>For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investors section of New Fortress Energy\u2019s website, www.newfortressenergy.com<\/a>, and the Company\u2019s most recent Annual Report on Form 10-K, which is available on the Company\u2019s website. Nothing on our website is included or incorporated by reference herein.<\/p>\n