[Main Announcement & Q1 2025 Results Overview](index=1&type=section&id=Main%20Announcement%20%26%20Q1%202025%20Results%20Overview) [Sale of Jamaican Assets](index=1&type=section&id=Sale%20of%20Jamaican%20Assets) New Fortress Energy (NFE) has finalized the sale of its Jamaican assets and operations to Excelerate Energy for $1.055 billion, with proceeds primarily allocated to reducing corporate debt and aligning with the company's near-term focus on asset sales and deleveraging - NFE completed the sale of its Jamaican assets to Excelerate Energy, Inc. for **$1.055 billion**[1](index=1&type=chunk) - The assets sold include the LNG import terminal in Montego Bay, an offshore floating storage and regasification terminal in Old Harbour, and a 150 MW Combined Heat and Power Plant in Clarendon[2](index=2&type=chunk) - Proceeds will be used to pay down **$270 million** of the Revolving Credit Facility and **$55 million** of the Term Loan A facility, with the remainder added to cash on the balance sheet[7](index=7&type=chunk) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) For the first quarter of 2025, NFE reported an Adjusted EBITDA of $82 million, a net loss of $197 million, or $(0.73) per diluted share, and ended the quarter with a total cash balance of $827 million Q1 2025 Financial Metrics | Metric | Value | | :--- | :--- | | Adjusted EBITDA | $82 million | | Net loss | $197 million | | EPS (fully diluted) | $(0.73) | | Total cash balance | $827 million | | Unrestricted cash | $448 million | - The Q1 2025 Adjusted EBITDA of **$82 million** is considered to be entirely from core earnings, consisting of terminal and vessel operations, without one-time gains seen in prior periods[4](index=4&type=chunk) - Revenue from terminal operations has been largely unchanged since the termination of the temporary power contract in Q1 2024, as the emergency power plants were sold to the Puerto Rico Electric Power Authority in March 2024[4](index=4&type=chunk) [Business Outlook and Development Updates](index=1&type=section&id=Business%20Outlook%20and%20Development%20Updates) NFE expects future earnings to be boosted by one-time events and core earnings growth from development projects in Brazil and Nicaragua, along with expansions in Puerto Rico, with significant progress made on the CELBA power plant and Fast LNG asset optimization - Future earnings in 2025 are expected to be boosted by one-time events such as a FEMA claim, FSRU sub-charters, and a Genera incentive payment[5](index=5&type=chunk) - Development projects in Brazil are progressing on-time and on-budget, with the **624 MW CELBA plant** **~95% complete** and expected to start generating earnings in Q3 2025, while the adjacent PortoCem plant is over **50% complete**[5](index=5&type=chunk) - The company's Fast LNG asset has been fully commissioned and is undergoing optimization projects to increase its liquefaction capacity[5](index=5&type=chunk) [Financial Statements and Non-GAAP Reconciliations](index=2&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliations) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) In Q1 2025, NFE's total revenues decreased to $470.5 million from $690.3 million in Q1 2024, resulting in an operating loss of $18.5 million and a net loss of $197.4 million, or $(0.73) per diluted share, a significant shift from prior-year profitability Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | (in millions, except per share) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $470.5 | $690.3 | | Operating (Loss) Income | $(18.5) | $184.5 | | Net (Loss) Income | $(197.4) | $56.7 | | Diluted (Loss) Income per Share | $(0.73) | $0.26 | Consolidated Statements of Operations (Q1 2025 vs Q4 2024) | (in millions) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Total Revenues | $470.5 | $679.0 | | Operating (Loss) Income | $(18.5) | $230.3 | | Net (Loss) | $(197.4) | $(223.5) | [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, NFE's balance sheet reported total assets of $13.03 billion and total liabilities of $11.12 billion, with total stockholders' equity at $1.87 billion, reflecting slight increases in assets and liabilities compared to December 31, 2024, and including assets and liabilities held for sale related to the pending Jamaica transaction Consolidated Balance Sheets | (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $447.9 | $492.9 | | Total current assets | $1,473.7 | $1,610.1 | | Total assets | $13,028.1 | $12,867.5 | | **Liabilities & Equity** | | | | Total current liabilities | $1,473.7 | $1,707.4 | | Long-term debt | $8,931.5 | $8,355.7 | | Total liabilities | $11,115.8 | $10,777.8 | | Total stockholders' equity | $1,871.5 | $1,999.1 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) NFE's key non-GAAP metrics, Adjusted EBITDA and Total Segment Operating Margin, experienced significant year-over-year declines in Q1 2025, primarily driven by a decrease in the Terminals and Infrastructure segment's operating margin Adjusted EBITDA (in millions) | (in millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $82.3 | $313.5 | $340.1 | Segment Operating Margin (in millions) | Segment Operating Margin (in millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Terminals and Infrastructure | $74.6 | $206.1 | $350.1 | | Ships | $31.4 | $34.1 | $34.2 | | **Total Segment Operating Margin** | **$106.0** | **$240.2** | **$384.3** | - The company defines Adjusted EBITDA as net income adjusted for items including interest, taxes, depreciation, amortization, transaction costs, non-cash share-based compensation, and other non-recurring or non-operating expenses to provide a supplemental view of ongoing business performance[20](index=20&type=chunk)[21](index=21&type=chunk)

Core Viewpoint - New Fortress Energy Inc. is under investigation for potential securities fraud and unlawful business practices following a significant decline in its financial performance in Q1 2025 [1][3]. Financial Performance - New Fortress reported total revenue of $470.5 million for Q1 2025, a decrease from $690.3 million in Q1 2024, indicating a year-over-year decline of approximately 31.8% [3]. - The company experienced a net loss of $197.4 million, or $0.73 per share, compared to a net income of $56.7 million, or $0.26 per share, in the same period of the previous year [3]. Stock Market Reaction - Following the release of the disappointing financial results, New Fortress's stock price fell by $4.27 per share, representing a decline of 62.98%, closing at $4.27 per share on May 15, 2025 [4].

Company Overview - New Fortress Energy, Inc. is an energy company that develops, finances, and operates liquefied natural gas (LNG) facilities and power plants globally [3] - The company operates through two segments: "Terminals and Infrastructure," focusing on LNG production and distribution, and "Ships," which provides LNG storage and transportation services [3] Allegations and Financial Performance - Edelson Lechtzin LLP is investigating potential violations of federal securities laws involving New Fortress due to allegations of providing misleading business information to investors [1] - On May 14, 2025, New Fortress announced its financial results for Q1 2025, reporting a total revenue decline of $219.8 million compared to Q1 2024, resulting in a net loss of $197.4 million, down from a net income of $56.7 million in the same quarter of the previous year [4] - Following the financial announcement, New Fortress' stock price fell by $4.27 per share, approximately 62.98%, closing at $4.27 on May 15, 2025 [5]

Core Viewpoint - New Fortress Energy's stock has significantly declined due to disqualification from a key government auction in Puerto Rico, alongside disappointing Q1 results and worsening credit issues [1][2][5][6] Group 1: Stock Performance - Shares of New Fortress Energy fell by 14.5% as of market close, coinciding with broader market declines in the S&P 500 and Nasdaq Composite [1] - The stock's decline is attributed to negative news regarding the company's exclusion from a government auction [1][2] Group 2: Auction Disqualification - New Fortress Energy has been disqualified from a Puerto Rican government auction aimed at securing temporary power generation, specifically for an 800-megawatt contract [2] - The company has reached out to Puerto Rico's Governor requesting reconsideration of the disqualification [3] Group 3: Financial Performance - The company recently announced Q1 results that did not meet Wall Street's expectations, contributing to negative market sentiment [5] - New Fortress Energy sold its Jamaican LNG import terminal in Montego Bay for $1 billion, which, while providing immediate cash, poses a risk to future revenue streams [5] Group 4: Credit Rating and Leverage - The company's credit rating has deteriorated further, exacerbating its ongoing financial challenges as it is heavily leveraged [6] - There are multiple issues facing New Fortress Energy, leading to a lack of a compelling turnaround case in the near future [6]

Core Viewpoint - New Fortress Energy Inc. is under investigation for potential securities fraud and unlawful business practices following a significant decline in its financial performance in Q1 2025 [1][2]. Financial Performance - New Fortress reported total revenue of $470.5 million for Q1 2025, a decrease from $690.3 million in Q1 2024, representing a decline of approximately 31.8% [2]. - The company experienced a net loss of $197.4 million, or $0.73 per share, compared to a net income of $56.7 million, or $0.26 per share, in the same period of the previous year [2]. Stock Market Reaction - Following the release of the disappointing financial results, New Fortress's stock price fell by $4.27 per share, or 62.98%, closing at $4.27 per share on May 15, 2025 [3].

Core Viewpoint - New Fortress Energy's stock experienced a significant decline of 62.7% following the release of disappointing Q1 2025 financial results, which revealed a substantial loss that exceeded Wall Street's expectations [1][2]. Financial Performance - The company reported a Q1 2025 loss of $0.73 per share, contrasting sharply with a net profit of $0.26 per share in the same quarter last year, indicating a severe downturn in financial performance [2]. Asset Management - New Fortress Energy sold its Jamaican LNG import terminal in Montego Bay and other assets to Excelerate Energy for approximately $1 billion, a move aimed at addressing its dire financial situation and high debt levels [3]. - The company plans to allocate around $325 million of the proceeds from the sale to reduce existing debt, highlighting its focus on improving its financial stability [3]. Credit and Market Position - The company's credit rating is below investment grade, which restricts its ability to secure long-term contracts for LNG assets in Latin America, forcing it to rely on short-term agreements that negatively impact profit margins [5]. - The current market conditions and the company's financial issues suggest a lack of compelling reasons for a turnaround in the near future, making it an unattractive investment [5].

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing and trading, having navigated significant market events such as the dotcom bubble and the subprime crisis [2] - The research provided aims to maintain high quality despite language barriers [2]

Financial Data and Key Metrics Changes - The core earnings for Q1 2025 were consistent with expectations, showing a stable trend from previous quarters [5] - EBITDA forecast for the year is now estimated to be between $1.25 billion and $1.5 billion, which is an increase from previous estimates [5][6] - The company reported a net loss of $200 million for GAAP, translating to a loss of $0.73 per share, with no material one-time items affecting adjusted EPS [53] Business Line Data and Key Metrics Changes - The Jamaica sale generated net proceeds of approximately $778 million, with a gain of $430 million, contributing positively to the financial outlook [7][50] - The company has taken back surplus FSRUs and relet them at higher rates, resulting in an estimated profit of $143 million [9][10] - Total segment operating margin for Q1 was $106 million, down from $240 million in Q4 2024 [52] Market Data and Key Metrics Changes - Brazil is expected to contract 10 to 15 gigawatts of capacity, with upcoming capacity auctions anticipated to take place in early 2025 [36][38] - The energy system in Puerto Rico is described as underinvested and in need of new generation, with significant opportunities for the company to provide temporary power and convert existing diesel plants to natural gas [40][42] Company Strategy and Development Direction - The company aims to simplify its balance sheet and lower debt costs by moving towards asset-level financing [16][17] - Focus on generating repeatable, long-duration cash flows from core assets, particularly in Brazil and Puerto Rico [23][24] - The strategy includes leveraging existing infrastructure and securing long-term contracts to enhance financial stability and growth prospects [22][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the resolution of the FEMA claim, which amounts to $659 million, and expects a positive outcome in the near term [8] - The company is well-positioned to capitalize on growth opportunities in Brazil and Puerto Rico, with strong regulatory support and rising demand for integrated LNG to power models [38][40] - Management emphasized the importance of controlling logistics and supply chains to maximize efficiency and profitability [22][23] Other Important Information - The company has a strong liquidity position, ending Q1 with $448 million in cash and $275 million available under its revolving credit facility [55] - The company is in advanced discussions for additional FSRU contracts, which could contribute significantly to future earnings [51] Q&A Session Summary Question: Can you elaborate on the restricted cash on the balance sheet? - The restricted cash is primarily related to capital expenditures in Brazil, specifically for the Selva and Porto Sim power plants [59] Question: Is the company considering open market repurchases of debt? - The company is evaluating opportunities to refinance its capital structure and may consider repurchasing debt at a discount if advantageous [60][64] Question: What is the strategy for bidding in the Puerto Rico power opportunity? - The bidding process requires a unitary cost of power, and the company is leveraging its existing infrastructure to provide competitive bids [69] Question: What is the status of the Nicaragua project? - The company is finalizing the restructuring of its PPA with the government and is close to completing the power plant and terminal [80][82]

Financial Data and Key Metrics Changes - The core earnings for Q1 2025 were consistent with expectations, with historical core earnings showing stability [4][3] - Adjusted EBITDA for Q1 was reported at $82 million, with a forecast for EBITDA plus gains for the year between $1.25 billion and $1.5 billion, higher than previous estimates [4][51] - The company reported a net loss of $200 million for GAAP, translating to a loss of $0.73 per share, with no material one-time items affecting adjusted EPS [52] Business Line Data and Key Metrics Changes - The Jamaica sale generated $1.055 billion in gross proceeds, resulting in net proceeds of approximately $778 million after debt repayment and fees, contributing to a gain of $430 million [6][49] - The company has focused on asset sales, debt reduction, and deleveraging, with the Jamaica sale being a significant step in this direction [11][12] - The FSRU contracts signed recently are expected to contribute approximately $200 million in future earnings, with potential for additional cash flow from ongoing discussions with counterparties [50] Market Data and Key Metrics Changes - The company is positioned to register over 2 gigawatts of projects in the upcoming Brazil capacity auction, with strong market confidence reflected in third-party project requests [36] - In Puerto Rico, the energy system is described as underinvested and in need of new generation, with opportunities for temporary power and gas supply contracts [38][40] Company Strategy and Development Direction - The company aims to simplify its balance sheet by transitioning from a corporate debt structure to asset-level financing, focusing on long-duration cash flows [15][16] - Growth opportunities are identified in Brazil and Puerto Rico, with significant investments made in Brazil to establish a resilient business [23][24] - The company is committed to addressing liquidity issues and refinancing its debt structure to lower costs and extend terms [64][65] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resolution of the FEMA claim, with a high degree of reengagement with the Army Corps [7] - The company remains confident in the structural needs for power in Brazil, despite delays in the capacity auction [35][91] - In Puerto Rico, management highlighted the urgent need for new power generation and the potential for significant cost savings through conversion to natural gas [40][42] Other Important Information - The company ended Q1 with $448 million in cash and $275 million available under its revolving credit facility, totaling over $1.1 billion in pro forma liquidity [53] - The construction progress of key power plants in Brazil is reported at 95% for the Selva plant and over 54% for the Porto San plant, despite challenges from weather conditions [27][30] Q&A Session Summary Question: Can you elaborate on the restricted cash on the balance sheet? - The majority of restricted cash is related to CapEx in Brazil, specifically for the Selva and Porto San power plants, with some cash expected to be freed up post-Jamaica transaction [58] Question: Is the company considering open market repurchases of debt? - The company is evaluating opportunities to refinance its capital structure and may consider retiring debt at a discount if available [60][63] Question: What is the strategy for bidding in Puerto Rico's power opportunity? - The bidding process requires a unitary cost of power, and the company is leveraging its existing infrastructure to participate effectively [68][69] Question: What is the status of the Nicaragua project? - The company is in the final stages of restructuring the PPA with the government, aiming for a structure similar to long-term gas contracts in Brazil and Puerto Rico [78][80]

Financial Performance & Projections - Q1 2025 Adjusted EBITDA was $82 million[8], with zero net deferred earnings from contracted sales and $10 million of depreciation in cost of sales from Fast LNG 1[64] - The company expects 2025 AEBITDA to be between $1.25 billion and $1.5 billion, higher than previous estimates, including ~$500 million in core earnings and $750 million to $1 billion in one-off gains[9] - Net loss attributable to stockholders in Q1 2025 was $200 million, a $42 million decrease QoQ[67] - Total liquidity after the Jamaica sale is $1.116 billion, including $393 million from the sale[67] Jamaica Sale & Debt Reduction - The sale of the Jamaica business for $1.055 billion is expected to yield net proceeds of $778 million[16] and a book gain of ~$430 million[11] - Proceeds from the Jamaica sale will be used to pay down $270 million of revolver debt and $55 million of Term Loan A[56] FSRU Sub-charters - Sub-chartering four FSRUs is expected to generate $312 million nominally over the lives of the contracts[11, 61], with a PV10 of ~$236 million[11] Brazil Operations - Construction of CELBA 2 is ~95% complete, with cash flows expected to commence in the second half of 2025[42] - PortoCem is ~54% complete, with capacity revenues expected to commence in the second half of 2026[42] - The company has registered for 2 GW+ of its own projects in the upcoming Brazil energy auctions and has been requested by 3rd parties to supply gas to 3 GW+ of projects[46, 47]