New Fortress Energy (NFE) Conference Call Summary Company Overview - **Company**: New Fortress Energy (NFE) - **Date of Call**: March 18, 2026 - **Key Event**: Announcement of a significant debt-for-equity exchange transaction Core Points and Arguments 1. **Transaction Overview**: NFE completed a debt-for-equity exchange, which is one of the largest consensual restructurings ever completed, supported by major creditors and expected to be approved by shareholders [3][5] 2. **UK Restructuring Plan (UKRP)**: The transaction utilized a UKRP process allowing the exchange of debt for equity while maintaining uninterrupted operations and customer service [4][6] 3. **Debt Reduction**: NFE's corporate debt will be reduced from approximately $5.7 billion to about $527 million, representing a reduction of over 90% [6][10] 4. **Equity Structure Post-Transaction**: Existing shareholders will own 35% of the new NFE after the transaction, with significant dilution from the issuance of new shares [8][10] 5. **Separation of Entities**: The old NFE will be split into two entities: BrazilCo (a private company) and the new NFE, which will continue as a publicly traded integrated LNG to power company [6][10] 6. **Capital Structure**: The new capital structure includes $527 million in corporate debt and $2.5 billion in preferred equity, with a simplified and stronger balance sheet [11][12] 7. **Cash Flow Profile**: The company anticipates significant cash flow from its operations, with a target leverage of 2-3 times EBITDA, consistent with investment-grade issuers [11][12] 8. **Operational Stability**: The restructuring is expected to enhance operational stability and growth potential, particularly in light of current energy market conditions [17][19] Additional Important Content 1. **Stakeholder Engagement**: The company emphasized the importance of collaboration with employees, customers, vendors, and creditors to achieve a successful outcome without resorting to bankruptcy [20][21] 2. **Cost Reductions**: NFE has reduced operational expenses by $55 million for 2026, $70 million for 2027, and over $200 million cumulatively in 2028 and beyond [23][24] 3. **Future Growth Initiatives**: Key initiatives include the completion of the Nicaragua terminal, gas conversion projects in Puerto Rico, and deployment of turbine assets to enhance cash flow [35][50] 4. **Earnings Projections**: NFE projects adjusted EBITDA of over $400 million for 2027, with potential for significant incremental EBITDA from additional gas supply contracts [42][43] 5. **Liquidity Position**: The company ended the year with $225 million in unrestricted cash and has a minimum liquidity requirement of $100 million, ensuring financial stability post-restructuring [46] Conclusion - The restructuring positions NFE for a stable and growth-oriented future, with a focus on matching supply and demand in the LNG market while maintaining operational integrity and financial health [52][53]

March 2026 Transaction Update The Transaction utilizes a UK process (UK RP) that allows us to… Exchange debt for equity and other consideration (i) with our various creditors Allows us to continue to run the Company without interruption during this process i. Consideration for creditors includes a combination of new debt, preferred and common equity. UK Restructuring Plan Transaction Update 2 UK RP Transaction Update We have reached an agreement with our creditors to exchange debt for our equity (1) The pla ...

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]