New Fortress Energy Inc. Q3 FY2024 earnings call

• FLNG Operations: Prior to maintenance, ran for 14 days at 105% of nameplate capacity. Had a meeting in Houston to discuss debottlenecking and operational improvements. Just completed the fourth cargo, and has operational flexibility due to a 35,000 cubic meters storage buffer. - Brazil Construction: CELBA 2 is 80% complete, expected to generate cash flows in the second half of 2025. Portocem project is ahead of schedule, at 25% complete vs. planned 15%. - Nicaragua Terminal: 300 MW power plant is 100% complete, jetty and FSU are 95% complete, expected to be operational in Q1. - Strategic Update: Began identifying strategic partners for businesses including Brazil, Puerto Rico, Jamaica, etc. Assets have characteristics of infrastructure investments with long-term supply, little CapEx, and long-term customer commitments. - Jamaica Business: Has 23+ customers, supplies ~30 TBtus/year, owns and supplies major power plants on the island, critical for Jamaica's energy transition. - Refinancing: Completed refinancing to extend debt maturities, bolstered liquidity with $727 million incremental corporate liquidity.

In the third quarter, adjusted EBITDA was $176 million. Total segment operating margin was $220 million, with $185 million coming from sales to customers via downstream terminals and cargoes sold to the market, and $35 million from the ships segment. Core SG&A for the quarter was $26 million. A $60 million prepayment for cargoes to be delivered in 2025 was reflected in deferred earnings.

• Fourth quarter guidance reduced modestly due to FLNG maintenance, resulting in lower FLNG volumes. - Brazil CELBA 2 is forecasted to generate cash flows in the second half of 2025. - Puerto Rico terminal is expected to be operational in Q1. - FLNG 2 CapEx timing can be toggled to manage cash flows.

• Uncertainty surrounding the resolution of the FEMA claim, as its outcome could materially affect forecasts. - Complexity of strategic transactions, as large individual deals make specific forecasting away from operations more challenging.

Q: Status of FLNG 2 CapEx, regulatory approval with Mexico, and timing toggle?

A: Can toggle CapEx timing to manage cash flows. Relationship with Mexico remains strong, but permits for FLNG 2 are pending. CapEx is expected to resume at full rates in January.

Q: Puerto Rico guidance difference, power plant conversions?

A: Previous guidance north of 100 TBtus didn't reflect market opportunity. New administration in Puerto Rico likely to drive gas conversions of power plants like MegaGens, Mayaguez, etc.

Q: Long-term focus changed?

A: Basic plan of providing gas and power to areas with deficits remains, assets have infrastructure investment characteristics, and selling assets could help deleverage the company.

Q: FSRU market sub-chartering opportunities?

A: Surplus FSRUs have sub-charter potential, with one short-term charter at a material discount, potentially uplifting EBITDA.

Q: Free cash flow 2025, data centers?

A: EBITDA less unfunded CapEx expected to be positive in 2025. Data centers in Wyalusing have potential tenant, with high market interest.

Q: Ship logistics, SG&A?

A: FLNG logistics are simple, with ships filling in Altamira and going to Puerto Rico. SG&A core is down for three consecutive quarters, with transactional costs in Q3, and core SG&A expected ~$25 million in 2025