undefined Investment Thesis New Fortress's (NASDAQ: NFE) investment thesis is quite simple: Invest now if you believe refinancing is imminent, wait as projects come online, and the stock will re-rate higher. Alternatively, a safer option is to wait for confirmation of the refinancing. Price will be higher; however, returns will still be great. Once all projects are operational, New Fortress will generate more than $1.6 billion in EBITDA. Current market cap is less than $3 billion. Business Overview New Fort ...

New Fortress Energy Inc. NFE reported worse-than-expected second-quarter financial results on Friday. New Fortress Energy reported quarterly losses of 41 cents per share which missed the analyst consensus estimate of 7 cents per share. The company reported quarterly sales of $428.01 million which missed the analyst consensus estimate of $509.24 million, according to data from Benzinga Pro. "Our Adjusted EBITDA in the second quarter of $120 million was well below our expectation of $275 million. This was lar ...

Company Operations and Infrastructure - The company operates natural gas and LNG infrastructure, with a mission to provide cleaner, reliable energy while generating a positive economic impact worldwide [146]. - The Montego Bay Facility processes up to 60,000 MMBtu of LNG per day, while the Old Harbour Facility can process up to 750,000 MMBtu of LNG per day [151][152]. - The Miami Facility, with a liquefaction capacity of approximately 8,300 MMBtu of LNG per day, is set to be sold for $62 million, expected to close in Q3 2024 [158]. - The company has binding contracts for LNG volumes from two U.S. LNG facilities, each with a 20-year term, expected to commence in 2027 [159]. - The first Fast LNG facility began production in July 2024, with plans to expand capacity as additional units come online [159][166]. - The company is developing multiple modular liquefaction facilities to provide low-cost LNG supply, utilizing advancements in modular technology [166]. - The Barcarena Facility is expected to process over 1 million MMBtu from LNG per day and commence operations in the second half of 2024, including a 15-year gas supply agreement with Norsk Hydro ASA [173]. - The Santa Catarina Facility, with a processing capacity of approximately 500,000 MMBtu from LNG per day, is expected to commence operations in the second half of 2024 [176]. - The company plans to install up to two FLNG units off the coast of Louisiana, capable of exporting approximately 145 billion cubic feet of natural gas per year, equivalent to 2.8 MTPA of LNG [170]. - The La Paz Power Plant, with a maximum capacity of 135MW, was placed into service in Q3 2023 [157]. Financial Performance - Consolidated Segment Operating Margin for Q2 2024 was $158,351,000, with a gross margin of $120,938,000 [186]. - Total revenue for the Terminals and Infrastructure Segment decreased by $262.3 million for the three months ended June 30, 2024, compared to the three months ended March 31, 2024, primarily due to contract terminations and maintenance issues in Puerto Rico operations [198]. - Total revenue increased by $35.1 million for the six months ended June 30, 2024, compared to the same period in 2023, driven by higher volumes delivered [199]. - For the six months ended June 30, 2024, volumes delivered to downstream customers were 42.1 TBtu, up from 26.1 TBtu in the same period of 2023 [199]. - Cash flow from operating activities decreased to $163.0 million for the six months ended June 30, 2024, down $340.9 million from $503.9 million for the same period in 2023 [246]. - The company recognized $90 million in deferred earnings from contracted sales for the six months ended June 30, 2024 [197]. - Consolidated Segment Operating Margin (Non-GAAP) for the six months ended June 30, 2024, was $542.6 million, down from $644.7 million in the same period of 2023 [193]. - Total revenue for the Ships segment decreased by $78.6 million for the six months ended June 30, 2024, compared to the same period in 2023, largely due to the disposition of the investment in Hilli LLC [211]. Costs and Expenses - Cost of sales increased by $154.8 million for the six months ended June 30, 2024, compared to the same period in 2023, due to increased LNG procurement costs [201]. - Vessel costs increased by $47.3 million for the six months ended June 30, 2024, compared to the same period in 2023, as additional vessels were chartered to support operations [203]. - Operations and maintenance costs increased by $47.5 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to the grid stabilization project in Puerto Rico [206]. - Selling, general and administrative expenses increased by $33.4 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to increased share-based compensation expenses [218]. - Interest expense increased by $21.7 million for the six months ended June 30, 2024, compared to the same period in 2023, due to an increase in total principal outstanding from additional borrowings [222]. Investments and Financing - The company completed forward sales in Q2 2024, receiving a prepayment of $90.0 million, with revenue to be recognized in the third and fourth quarters of 2024 [207]. - The company has entered into a Backstop Agreement to potentially issue senior secured notes up to an aggregate principal amount of $875 million to fund the repurchase of outstanding 2025 Notes [231]. - The company borrowed $284.4 million under the BNDES Credit Agreement in Q1 2024, mainly to repay the Barcarena Term Loan and fund the Barcarena Power Plant development [255]. - The company entered into an EB-5 Loan Agreement for up to $100.0 million to develop a new green hydrogen facility in Texas, with an interest rate of 4.75% [257]. - The PortoCem Bridge Loan allows borrowing up to R$2.9 billion ($269.9 million) due in October 2025, with no principal payments required until maturity [260]. - The company repaid $188.4 million in Equipment Notes in full, incurring a prepayment premium of 3% [262]. Regulatory and Market Conditions - The company is challenging regulatory decisions regarding the development of an LNG terminal and power plant in Ireland, which could materially affect operations [177]. - Average Henry Hub index pricing decreased by 15% for the three months ended June 30, 2024, compared to the previous quarter [198]. - A 100-basis point change in market interest rates would affect the fair value of fixed-rate debt by approximately $79.6 million [268].

New Fortress Energy (NASDAQ:NFE) Q2 2024 Earnings Conference Call August 9, 2024 8:00 AM ET Company Participants Chance Pipitone - Investor Relations Wesley Edens - Chairman and Chief Executive Officer Andrew Dete - Managing Director Brannen McElmurray - Managing Director and Chief Development Officer Christopher Guinta - Chief Financial Officer Conference Call Participants Benjamin Nolan - Stifel Gregory Lewis - BTIG Craig Shere - Tuohy Brothers Tarek Hamid - JPMorgan Operator Good day and welcome to the N ...

Group 1: Earnings Performance - New Fortress Energy reported a quarterly loss of $0.41 per share, significantly missing the Zacks Consensus Estimate of $0.09, and down from earnings of $0.58 per share a year ago, representing an earnings surprise of -555.56% [1] - The company posted revenues of $428.01 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 9.09%, and down from $561.35 million in the same quarter last year [2] - Over the last four quarters, New Fortress Energy has surpassed consensus EPS estimates two times [2] Group 2: Stock Performance and Outlook - New Fortress Energy shares have declined approximately 54.9% since the beginning of the year, contrasting with the S&P 500's gain of 11.5% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.49 on revenues of $696.04 million, and $2.03 on revenues of $2.67 billion for the current fiscal year [7] - The Zacks Rank for New Fortress Energy is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Group 3: Industry Context - The Oil and Gas - Integrated - International industry, to which New Fortress Energy belongs, is currently in the bottom 22% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

The market expects New Fortress Energy (NFE) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 9, 2024, might help the stock move higher if these key numbers ...

Group 1: Company Developments - New Fortress Energy Inc. has successfully started liquefied natural gas (LNG) production at its first floating liquefied natural gas (FLNG) unit, FLNG 1, which is expected to deliver its first cargo in August 2024 and then enter full production [1] - The company has secured a $700-million loan for the construction of its second FLNG unit, FLNG 2, which is anticipated to be completed in the first half of 2026 [5][6] - The FLNG complex is progressing rapidly, with the first unit already producing LNG, and the company emphasizes that such large infrastructure projects enhance its financial and operational value [7] Group 2: Production Capacity and Technology - FLNG 1 utilizes New Fortress's proprietary Fast LNG solution, with a total production capacity of 1.4 million tons per annum (MTPA), equivalent to approximately 70 trillion British thermal units (TBtu) [2] - The new liquefaction facility for FLNG 2 is expected to implement the same proprietary technology used in FLNG 1 [2] Group 3: Industry Context - The energy sector includes companies like SM Energy, VAALCO Energy, and Energy Transfer, with SM Energy currently holding a Zacks Rank 1 (Strong Buy) and VAALCO and Energy Transfer both holding a Zacks Rank 2 (Buy) [3] - VAALCO Energy operates in upstream operations with a diversified presence in Africa and Canada, indicating a positive production outlook [4] - Energy Transfer is a midstream player with a diversified portfolio of energy assets, boasting a pipeline network extending over 125,000 miles across 44 states, suggesting a positive outlook for the company [10]

The surge can be attributed to New Fortress Energy's commitment to providing reliable and clean energy to the world by using liquefied natural gas (LNG). As compared to other fossil fuels such as coal, LNG has much lower carbon emissions and is an essential part of the energy transition worldwide. NFE owns and operates natural gas and LNG infrastructure and is well-positioned to capitalize on the growing demand for LNG. Further, the company has recently sold off its liquefaction and storage facility in Miam ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to__________ Commission File Number: 001-38790 New Fortress Energy Inc. (Exact Name of Registrant as Specified in its Charter) (State or other ...

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $340 million for the quarter, aligning with estimates and tracking guidance for the year [1] - GAAP net income for the quarter was $54 million or $0.26 per share, but after adjusting for nonrecurring charges, net income was $138 million or $0.67 per share [89] Business Line Data and Key Metrics Changes - In Puerto Rico, the company has secured an 80 TBtu island-wide contract, increasing total contracts to 105 TBtu, which represents a significant portion of the island's energy needs [18][60] - In Brazil, the company has 12 MTPA of LNG import capacity and contracts for 2.2 gigawatts of power, leading to a projected $500 million contracted EBITDA on a run rate 2026 basis [32][42] Market Data and Key Metrics Changes - The company highlighted Brazil as a major opportunity, with a forecasted need for 20 gigawatts of firm power to be added to the grid by 2032, including 8 gigawatts to be auctioned this year [78] - The energy consumption and natural gas consumption per capita in Brazil lag significantly behind developed countries, indicating substantial growth potential [39] Company Strategy and Development Direction - The company aims to accelerate the transition from distillate fuels to natural gas in Puerto Rico, which is expected to save ratepayers $1 billion annually [19] - In Brazil, the company is focused on providing reliable power and flexible fuel supply to meet the growing energy demands, leveraging its LNG terminals [38][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects in Puerto Rico and Brazil, emphasizing the alignment of the company's strategy with public policy and economic needs [62] - The company anticipates significant growth in EBITDA, potentially doubling to nearly $1 billion by 2028 through its operations in Brazil [42][54] Other Important Information - The company is in the final stages of commissioning its FLNG unit, expecting the first cargo in June, which represents a significant operational milestone [55] - A recent incident involving a pipe fracture was reported, but it is expected to be repaired quickly without significant impact on operations [43] Q&A Session Summary Question: Can incremental Puerto Rico growth beyond the 80 TBtu contract be linked to liquid fuel pricing? - Management indicated that the current contract supports the transition and that future contracts may migrate to a Henry Hub index as the market evolves [72] Question: Thoughts on adjusted EBITDA performance and the impact of the FEMA contract? - Management noted that the settlement from the FEMA contract would primarily contribute to earnings, and the transition to gas is expected to occur rapidly [75] Question: What is the forecast for firm power needs in Brazil? - Management highlighted the Brazilian regulator's forecast for a need for 20 gigawatts of firm power by 2032, with ongoing capacity auctions [78]