New Fortress Energy(NFE) - 2020 Q4 - Annual Report

Financial Performance - Total revenues for the year ended December 31, 2020, were $451.65 million, a significant increase from $189.13 million in 2019, representing a growth of 138%[413] - Operating loss for 2020 was $155.36 million, compared to a loss of $187.28 million in 2019, indicating an improvement of 17%[413] - Net loss attributable to stockholders for 2020 was $182.15 million, compared to a loss of $33.81 million in 2019, reflecting a substantial increase in losses[413] - For the year ended December 31, 2020, total revenues increased to $451.65 million, up $262.53 million from $189.13 million in 2019, driven by higher operating revenue from LNG sales[445]. - Operating revenue from LNG sales was $318.31 million for 2020, an increase of $172.81 million from $145.50 million in 2019, largely due to volumes sold from the Old Harbour Terminal[445][446]. - The net loss for the year ended December 31, 2020, was $263.97 million, compared to a net loss of $204.32 million in 2019, indicating a deterioration of $59.65 million[445]. Assets and Liabilities - Long-term debt as of December 31, 2020, was $1.24 billion, up from $619.06 million in 2019, representing a 100% increase[413] - Total assets increased to $1.91 billion in 2020 from $1.12 billion in 2019, marking a growth of 70%[413] - Total long-term debt obligations as of December 31, 2020, amounted to $1,675,203, with $87,703 due within one year[500] - Total contractual obligations as of December 31, 2020, were $4,357,541, including long-term debt, purchase obligations, and lease obligations[500] Cash Flow - Cash flows from operating activities improved to $(125,566) in 2020 from $(234,261) in 2019, a change of $108,695[471] - Cash flow used in operating activities was $125,566 for the year ended December 31, 2020, a decrease of $108,695 from $234,261 in 2019[472] - Cash flow used in investing activities was $157,631 for the year ended December 31, 2020, down by $218,533 from $376,164 in 2019[473] - Cash flow provided by financing activities increased to $819,498 for the year ended December 31, 2020, an increase of $216,891 from $602,607 in 2019[475] Expenditures and Costs - Cost of sales for 2020 was $278.77 million, an increase of $95.41 million from $183.36 million in 2019, primarily due to a 200% increase in volumes delivered[449][450]. - Operations and maintenance costs for the year ended December 31, 2020 were $47,581, an increase of $20,682 from $26,899 for the year ended December 31, 2019[453] - Selling, general and administrative expenses for the year ended December 31, 2020 were $124,170, a decrease of $28,752 from $152,922 for the year ended December 31, 2019[456] - Charter costs associated with the expanded fleet increased Cost of sales by $5,763 for the year ended December 31, 2020[451] - Contract termination charges for the year ended December 31, 2020 were $124,114, significantly higher than $5,280 for the year ended December 31, 2019[457] - Depreciation and amortization for the year ended December 31, 2020 was $32,376, an increase of $24,436 from $7,940 for the year ended December 31, 2019[460] - Tax expense for the year ended December 31, 2020 was $4,817, an increase of $4,378 from $439 for the year ended December 31, 2019[464] Projects and Facilities - The Miami Facility has a liquefaction capacity of approximately 100,000 gallons of LNG (8,300 MMBtu) per day, operational since April 2016[425] - The Old Harbour Facility commenced operations in June 2019 and can process approximately 6 million gallons of LNG (500,000 MMBtu) per day[423] - The company is developing an LNG regasification facility and power plant in Puerto Sandino, Nicaragua, with a capacity of approximately 300 MW, consuming about 700,000 gallons of LNG (57,500 MMBtu) per day[427] - The La Paz Facility in Baja California Sur, Mexico, is expected to supply approximately 270,000 gallons of LNG (22,300 MMBtu) per day for 100 MW of power, with potential expansion to 350,000 gallons (29,000 MMBtu) for 135 MW[426] Acquisitions - The acquisition of Hygo is expected to close in the first half of 2021, with NFE acquiring 18.6 million shares of NFE Class A common stock and $50 million in cash for GLNG, and 12.7 million shares and $530 million in cash for Stonepeak[428][431]. - Upon completion of the Hygo acquisition, NFE will acquire one operating FSRU terminal and a 50% interest in a 1.5 GW power plant in Brazil, along with a fleet of vessels including the Golar Nanook and two LNG carriers[431]. - The GMLP acquisition will also close in the first half of 2021, with GMLP common units converting to $3.55 in cash per unit, and a purchase price of approximately $5 million for the General Partner's membership interests[432][434][436]. - Following the GMLP acquisition, NFE will gain a fleet of six FSRUs and four LNG carriers, primarily operating in Brazil, Kuwait, Indonesia, Jamaica, and Jordan[437]. Debt and Financing - Debt financing commitments obtained total $1.7 billion, including a $1.5 billion senior secured bridge facility and a $200 million senior secured revolving facility[469] - The company issued $1,000,000 of 6.75% senior secured notes on September 2, 2020, with no principal payments due until maturity on September 15, 2025[477] - The company incurred $37,051 in fees related to the Credit Agreement and extinguishment of the Term Loan Facility[485] - The company recognized a loss on extinguishment of debt of $7,195 in the consolidated statements of operations due to the repayment of Senior Secured Bonds and Senior Unsecured Bonds[497] Contracts and Agreements - The company entered into four LNG supply agreements for the purchase of 415 TBtu of LNG from 2021 to 2030, with annual commitments of approximately 68 TBtu from 2022 to 2025[503] - The Company has long-term, take-or-pay contracts to deliver natural gas or LNG, limiting exposure to price fluctuations, with pricing based on the Henry Hub index plus a contractual spread[520] Operational Insights - The Company has five vessels under time charter leases with non-cancellable terms ranging from nine months to seven years[505] - Lease commitments for port space range from 20 to 25 years, with a land site lease having a remaining term of approximately five years and an automatic renewal term of five years for up to an additional 20 years[506] - The Company executed multiple lease agreements for ISO tanks in 2020, with lease terms commencing in Q1 2021, each lasting five years[507] - Revenue from sales of LNG delivered by truck is recognized at the point of delivery, with operating revenue presented on an aggregated basis[511] - A 100-basis point change in market interest rates would affect the fair value of fixed-rate debt by approximately $52 million[531] - The Company primarily conducts operations in U.S. dollars, with limited exposure to foreign currency exchange fluctuations[532] - The Company has not experienced significant impacts on development projects due to the COVID-19 pandemic, as many contracts contain fixed minimum volumes[521] - The Company plans to utilize its own liquefaction facilities to manufacture LNG at attractive prices, reducing exposure to future price variations[520] - The Company performs recoverability assessments of long-lived assets based on expected future cash flows and market demand for LNG and natural gas[524]