New Fortress Energy Inc. (Nasdaq: NFE) (“NFE” or the “Company”)
today reported its financial results for the first quarter of
2024.
Summary Highlights
- Adjusted EBITDA(1) of $340 million in the first quarter of
2024
- Net income of $57 million in the first quarter of 2024
- Adjusted EPS(2) of $0.67 on a fully diluted basis in the first
quarter of 2024
- EPS of $0.26 on a fully diluted basis in the first quarter of
2024
- Funds from Operations per share(3) of $0.92 on a fully diluted
basis in the first quarter of 2024
- Illustrative Adjusted EBITDA Goal(4) of ~$2 billion in the full
year 2024
"This has been a tremendous quarter for the company with a
number of significant milestones. We have completed the
construction of our first FLNG unit and are currently commissioning
the asset, with First LNG expected later this month and first full
cargo expected in June. We commenced operations in Brazil at both
of our LNG terminals and have 2.2 gigawatts of power under
construction. Additionally, we completed the sale of the power
plants that we developed for FEMA in Puerto Rico and concurrently
won an 80 Tbtu island-wide gas contract, paving the way for
significant expansion of our business in Puerto Rico. These
milestones underscore our commitment to growth, sustainability, and
long-term shareholder value," said Wes Edens, NFE chairman and
chief executive.
Financial Highlights
We generated significant Funds from Operations per share(3) of
$0.92 on a fully diluted basis in the first quarter of 2024, the
majority of which was generated by contracted downstream
assets.
At the same time, we expect a significant decrease in our
Capex(5) compared to the prior year. We executed several
transactions to further support our cash flows and balance sheet
during the quarter, including the sale of non-core assets and
issuance of 2029 Notes. Net proceeds from this issuance were mainly
used to repay a portion of our 2025 Notes and Revolving Facility,
as well as fund capital projects.
On May 7, 2024, NFE’s Board of Directors approved a dividend of
$0.10 per share, with a record date of June 15, 2024 and a payment
date of June 27, 2024.
Financial Detail
Three Months Ended
(in millions)
March 31, 2023
December 31, 2023
March 31, 2024
Revenues
$
579.1
$
758.4
$
690.3
Net income
$
151.6
$
214.9
$
56.7
Diluted EPS
$
0.71
$
1.06
$
0.26
Adjusted net income(6)
$
187.6
$
206.6
$
138.4
Adjusted EPS(2)
$
0.90
$
1.01
$
0.67
Terminals and Infrastructure Segment
Operating Margin(7)
$
402.1
$
373.2
$
350.1
Ships Segment Operating Margin(7)
$
78.7
$
54.2
$
34.2
Total Segment Operating Margin
$
480.8
$
427.4
$
384.3
Adjusted EBITDA(1)
$
440.0
$
387.6
$
340.1
The Company continues to evaluate opportunities to refinance all
or a portion of its 6.75% senior secured notes due September
2025.
Please refer to our Q1 2024 Investor Presentation (the
“Presentation”) for further information about the following
terms:
1)“Adjusted EBITDA,” see definition and reconciliation of this
non-GAAP measure in the exhibits to this press release.
2) “Adjusted EPS” is not a measurement of financial performance
under GAAP and should not be considered in isolation or as an
alternative to any measure of performance or liquidity derived in
accordance with GAAP. We calculate Adjusted EPS as Adjusted Net
Income (Note 13 below) divided by the weighted average shares
outstanding on a fully diluted basis for the period indicated. We
believe this non-GAAP measure, as we have defined it, offers a
useful supplemental view of the overall evaluation of the Company
in a manner that is consistent with metrics used for management’s
evaluation of the Company’s overall performance. Adjusted EPS does
not have a standardized meaning, and different companies may use
different definitions. Therefore, this term may not be necessarily
comparable to similarly titled measures reported by other
companies.
3) “Funds From Operations per share” means net income
attributable to stockholders, computed in accordance with GAAP,
excluding gains or losses from sales of assets, depreciation and
amortization and impairment charges divided by the weighted average
shares outstanding on a fully diluted basis. We compute FFO in
accordance with our interpretation of standards established by the
National Association of Real Estate Investment Trusts (“NAREIT”),
which may not be comparable to FFO reported by REITs that do not
define the term in accordance with the current NAREIT definition or
that interpret the current NAREIT definition differently than we
do. We believe that FFO is helpful to investors as supplemental
measures of the performance of our
infrastructure investments. We believe that FFO can facilitate
comparisons of operating performance between periods by excluding
the effect of depreciation and amortization related to our
infrastructure investments and impairment charges, which are based
on historical costs and may be of limited relevance in evaluating
current performance. Our definitions and calculations of these
Non-GAAP financial and operating measures and other terms may
differ from the definitions and methodologies used by other
registrants and accordingly, may not be comparable. These Non-GAAP
financial and operating measures do not represent cash generated
from operating activities in accordance with GAAP, nor do they
represent cash available to pay distributions and they should not
be considered as an alternative to net income attributable to
stockholders, determined in accordance with GAAP, as an indication
of our financial performance, or to cash flows from operating
activities, determined in accordance with GAAP, as a measure of our
liquidity, nor is it indicative of funds available to fund our cash
needs, including our ability to make cash distributions.
4) “Illustrative Adjusted EBITDA Goal” means our forward-looking
goal for Adjusted EBITDA for the relevant period and is based on
the "Illustrative Total Segment Operating Margin Goal" less
illustrative Core SGA assumed to be at approximately $150mm for
2024 including the pro rata share of Core SG&A from
unconsolidated entities. For the purpose of this presentation, we
have assumed an average Total Segment Operating Margin between
$5.38 and $43.49 per MMBtu for all downstream terminal economics,
because we assume that (i) we purchase delivered gas at a weighted
average of $6.20 in 2024, (ii) our volumes increase over time, and
(iii) we will have costs related to shipping, logistics and
regasification similar to our current operations because the
liquefaction facility and related infrastructure and supply chain
to deliver LNG from Pennsylvania or Fast LNG (“FLNG”) does not
exist, and those costs will be distributed over the larger volumes.
We assume all Brazil terminals and power plants are Operational and
earning revenue through fuel sales and capacity charges or other
fixed fees. For Vessels chartered to third parties, this measure
reflects the revenue from those charters, capacity and tolling
arrangements, and other fixed fees, less the cost to operate and
maintain each ship, in each case based on contracted amounts for
ship charters, capacity and tolling fees, and industry standard
costs for operation and maintenance. We assume an average Total
Segment Operating Margin of up to $147k per day per vessel. For
Fast LNG, this measure reflects the difference between the
delivered cost of open LNG and the delivered cost of open market
LNG less Fast LNG production cost. These costs do not include
expenses and income that are required by GAAP to be recorded on our
financial statements, including the return of or return on capital
expenditures for the relevant project, and selling, general and
administrative costs. Our current cost of natural gas per MMBtu is
higher than the cost we would need to achieve Illustrative Total
Segment Operating Margin Goal, and the primary drivers for reducing
these costs are the reduced costs of purchasing gas and the
increased sales volumes, which result in lower fixed costs being
spread over a larger number of MMBtus sold. References to volumes,
percentages of such volumes and the Illustrative Total Segment
Operating Margin Goal related to such volumes (i) are not based on
the Company’s historical operating results, which are limited, and
(ii) do not purport to be an actual representation of our future
economics. Actual circumstances could differ materially from the
assumptions, and actual performance and results could differ
materially from, and there can be no assurance that they will
reflect, our corporate goal.
5) For future periods, Capex or net Capex reflects management’s
estimate of total expected cash payments in such period less cash
proceeds received by the Company for related asset sales or direct
asset financings. Investors are encouraged to review the related
GAAP financial measures, and not to rely on any single financial
measure to evaluate our business.
6) “Adjusted Net Income” means Net Income attributable to
stockholders as presented in the relevant Form 10-K or Form 10-Q
for the relevant financial period as adjusted by non-cash
impairment charges and gains or losses on disposal of our
assets.
7) “Total Segment Operating Margin” is the total of our
Terminals and Infrastructure Segment Operating Margin and Ships
Segment Operating Margin. Our segment measure also excludes
unrealized mark-to-market gains or losses on derivative instruments
and certain contract acquisition costs.
Additional Information
For additional information that management believes to be useful
for investors, please refer to the presentation posted on the
Investors section of New Fortress Energy’s website,
www.newfortressenergy.com, and the Company’s most recent Annual
Report on Form 10-K, which is available on the Company’s website.
Nothing on our website is included or incorporated by reference
herein.
Earnings Conference Call
Management will host a conference call on Wednesday, May 8, 2024
at 8:00 A.M. Eastern Time. The conference call may be accessed by
dialing (888) 256-1007 (toll free from within the U.S.) or
+1-323-701-0225 (from outside of the U.S.) fifteen minutes prior to
the scheduled start of the call; please reference “NFE First
Quarter 2024 Earnings Call” or conference code 9244538.
A simultaneous webcast of the conference call will be available
to the public on a listen-only basis at www.newfortressenergy.com
under the Investors section within “Events & Presentations.”
Please allow time prior to the call to visit the site and download
any necessary software required to listen to the internet
broadcast. A replay of the conference call will be available at the
same website location shortly after the conclusion of the live
call.
About New Fortress Energy
Inc.
New Fortress Energy Inc. (NASDAQ: NFE) is a global energy
infrastructure company founded to help address energy poverty and
accelerate the world’s transition to reliable, affordable, and
clean energy. The Company owns and operates natural gas and
liquefied natural gas (LNG) infrastructure and an integrated fleet
of ships and logistics assets to rapidly deliver turnkey energy
solutions to global markets. Collectively, the Company’s assets and
operations reinforce global energy security, enable economic
growth, enhance environmental stewardship and transform local
industries and communities around the world.
Cautionary Statement Concerning
Forward-Looking Statements
This press release contains certain statements and information
that may constitute “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. All
statements contained in this press release other than historical
information are forward-looking statements that involve known and
unknown risks and relate to future events, our future financial
performance or our projected business results. You can identify
these forward-looking statements by the use of forward-looking
words such as “expects,” “may,” “will,” “can,” “could,” “should,”
“predicts,” “intends,” “plans,” “estimates,” “anticipates,”
“believes,” “schedules,” “progress,” “targets,” “budgets,”
“outlook,” “trends,” “forecasts,” “projects,” “guidance,” “focus,”
“on track,” “goals,” “objectives,” “strategies,” “opportunities,”
“poised,” or the negative version of those words or other
comparable words. Forward looking statements include: our
expectation regarding raising external financing; the successful
development, construction, completion, operation and/or deployment
of facilities and the timing of first gas or first LNG, including
our FLNG, Brazil, Nicaragua and Puerto Rico projects, on time,
within budget and within the expected specifications, capacity and
design; our expectation regarding increases in earnings and
decreases in capital expenditures beginning in 2024, Illustrative
Adjusted EPS and FFO Goals; our expectation regarding the common
dividend; and future strategic plans; and all the information in
the exhibits to this press release. These forward-looking
statements are necessarily estimates based upon current information
and involve a number of risks, uncertainties and other factors,
many of which are outside of the Company’s control. Actual results
or events may differ materially from the results anticipated in
these forward-looking statements. Specific factors that could cause
actual results to differ from those in the forward-looking
statements include, but are not limited to: risks related to the
development, construction, completion or commissioning schedule for
the facilities; risks related to the operation and maintenance of
our facilities and assets; failure of our third-party contractors,
equipment manufacturers, suppliers and operators to perform their
obligations for the development, construction and operation of our
projects, vessels and assets; our ability to implement our business
strategy; the risk that proposed transactions may not be completed
in a timely manner or at all, including related to the Company’s
proposed Asset Sales, including whether a market will develop for
such assets and whether the Company will be able to agree to
acceptable pricing and other terms offered by potential buyers;
inability to successfully develop and implement our technological
solutions, including our Fast LNG technology, or that we do not
receive the benefits we expect from the Fast LNG technology;
cyclical or other changes in the LNG and natural gas industries;
competition in the energy industry; the receipt of permits,
approvals and authorizations from governmental and regulatory
agencies on a timely basis or at all; new or changes to existing
governmental policies, laws, rules or regulations, or the
administration thereof; failure to maintain sufficient working
capital and to generate revenues, which could adversely affect our
ability to fund our projects; adverse regional, national, or
international economic conditions, adverse capital market
conditions and adverse political developments; and the impact of
public health crises, such as pandemics and epidemics and any
related company or government policies and actions to protect the
health and safety of individuals or government policies or actions
to maintain the functioning of national or global economies and
markets. These factors are not necessarily all of the important
factors that could cause actual results to differ materially from
those expressed in any of the Company’s forward-looking statements.
Other known or unpredictable factors could also have material
adverse effects on future results. Any forward-looking statement
speaks only as of the date on which it is made, and we undertake no
duty to update or revise any forward-looking statements, even
though our situation may change in the future or we may become
aware of new or updated information relating to such
forward-looking statements. New factors emerge from time to time,
and it is not possible for the Company to predict all such factors.
When considering these forward-looking statements, you should keep
in mind the risk factors and other cautionary statements included
in New Fortress Energy Inc.’s annual and quarterly reports filed
with the Securities and Exchange Commission, which could cause its
actual results to differ materially from those contained in any
forward-looking statement.
Exhibits – Financial Statements
Condensed Consolidated Statements of
Operations For the three months ended December 31, 2023 and March
31, 2024 (Unaudited, in thousands of U.S. dollars, except share and
per share amounts)
For the Three Months
Ended
December 31, 2023
March 31, 2024
Revenues
Operating revenue
$
643,037
$
609,504
Vessel charter revenue
67,192
46,655
Other revenue
48,129
34,162
Total revenues
758,358
690,321
Operating expenses
Cost of sales (exclusive of depreciation
and amortization shown separately below)
258,485
229,117
Vessel operating expenses
9,092
8,396
Operations and maintenance
61,938
68,548
Selling, general and administrative
48,056
70,754
Transaction and integration costs
2,159
1,371
Depreciation and amortization
62,164
50,491
Asset impairment expense
10,958
—
Loss (gain) on sale of assets, net
(21,534
)
77,140
Total operating expenses
431,318
505,817
Operating income
327,040
184,504
Interest expense
76,951
77,344
Other (income) expense, net
(13,586
)
19,112
Loss on extinguishment of debt, net
—
9,754
Income before income from equity method
investments and income taxes
263,675
78,294
Income (loss) from equity method
investments
(2,766
)
—
Tax provision
46,037
21,624
Net income
214,872
56,670
Net (income) loss attributable to
non-controlling interest
2,335
(2,589
)
Net income attributable to
stockholders
$
217,207
$
54,081
Net income per share - basic
$
1.06
$
0.26
Net income per share - diluted
$
1.06
$
0.26
Weighted average number of shares
outstanding – basic
205,032,928
205,061,967
Weighted average number of shares
outstanding – diluted
205,563,276
205,977,720
Adjusted EBITDA For the three months ended March 31,
2024 (Unaudited, in thousands of U.S. dollars)
Adjusted EBITDA is not a measurement of financial performance
under GAAP and should not be considered in isolation or as an
alternative to income from operations, net income, cash flow from
operating activities or any other measure of performance or
liquidity derived in accordance with GAAP. We believe this non-GAAP
measure, as we have defined it, offers a useful supplemental view
of the overall operation of our business in evaluating the
effectiveness of our ongoing operating performance in a manner that
is consistent with metrics used for management’s evaluation of our
overall performance and to compensate employees. We believe that
Adjusted EBITDA is widely used by investors to measure a company’s
operating performance without regard to items such as interest
expense, taxes, depreciation, and amortization which vary
substantially from company to company depending on capital
structure, the method by which assets were acquired and
depreciation policies. Further, we exclude certain items from our
SG&A not otherwise indicative of ongoing operating
performance.
We calculate Adjusted EBITDA as net income, plus transaction and
integration costs, contract termination charges and loss on
mitigations sales, depreciation and amortization, asset impairment
expense, interest expense, net, other (income) expense, net, loss
on extinguishment of debt, changes in fair value of non-hedge
derivative instruments and contingent consideration, tax expense,
and adjusting for certain items from our SG&A not otherwise
indicative of ongoing operating performance, including non-cash
share-based compensation and severance expense, non-capitalizable
development expenses, cost to pursue new business opportunities and
expenses associated with changes to our corporate structure,
certain non-capitalizable contract acquisition costs plus our pro
rata share of Adjusted EBITDA from certain unconsolidated entities,
less the impact of equity in earnings (losses) of certain
unconsolidated entities and gains from the sale of assets.
Adjusted EBITDA is mathematically equivalent to our Total
Segment Operating Margin, as reported in the segment disclosures
within our financial statements, minus Core SG&A, including our
pro rata share of such expenses of certain unconsolidated entities.
Core SG&A is defined as total SG&A adjusted for non-cash
share-based compensation and severance expense, non-capitalizable
development expenses, cost of exploring new business opportunities
and expenses associated with changes to our corporate structure.
Core SG&A excludes certain items from our SG&A not
otherwise indicative of ongoing operating performance.
The principal limitation of this non-GAAP measure is that it
excludes significant expenses and income that are required by GAAP
to be recorded in our financial statements. Investors are
encouraged to review the related GAAP financial measures and the
reconciliation of the non-GAAP financial measure to our GAAP net
income, and not to rely on any single financial measure to evaluate
our business. Adjusted EBITDA does not have a standardized meaning,
and different companies may use different Adjusted EBITDA
definitions. Therefore, Adjusted EBITDA may not be necessarily
comparable to similarly titled measures reported by other
companies. Moreover, our definition of Adjusted EBITDA may not
necessarily be the same as those we use for purposes of
establishing covenant compliance under our financing agreements or
for other purposes. Adjusted EBITDA should not be construed as
alternatives to net income and diluted earnings per share
attributable to New Fortress Energy, which are determined in
accordance with GAAP.
The following table sets forth a reconciliation of net income to
Adjusted EBITDA for the three months ended March 31, 2023, December
31, 2023 and March 31, 2024:
(in thousands)
Three Months Ended
March 31, 2023
Three Months Ended
December 31, 2023
Three Months Ended
March 31, 2024
Total Segment Operating Margin
$
480,817
$
427,352
$
384,260
Less: Core SG&A (see definition
above)
40,796
39,780
44,112
Less: Pro rata share Core SG&A from
unconsolidated entities
14
—
—
Adjusted EBITDA (Non-GAAP)
$
440,007
$
387,572
$
340,148
Net income
$
151,566
$
214,872
$
56,670
Add: Interest expense
71,673
76,951
77,344
Add: Tax provision
28,960
46,037
21,624
Add: Depreciation and amortization
34,375
62,164
50,491
Add: Asset impairment expense
—
10,958
—
Add: SG&A items excluded from Core
SG&A (see definition above)
11,342
8,276
26,642
Add: Transaction and integration costs
494
2,159
1,371
Add: Other (income) expense, net
25,005
(13,586
)
19,112
Add: Changes in fair value of non-hedge
derivative instruments and contingent consideration
111,141
(1,491
)
—
Add: Loss on extinguishment of debt,
net
—
—
9,754
Add: Loss (gain) on sale of assets,
net
—
(21,534
)
77,140
Add: Pro rata share of Adjusted EBITDA
from unconsolidated entities
15,431
—
—
Add: Loss (income) from equity method
investments
(9,980
)
2,766
—
Adjusted EBITDA
$
440,007
$
387,572
$
340,148
Segment Operating Margin (Unaudited, in thousands of
U.S. dollars)
Performance of our two segments, Terminals and Infrastructure
and Ships, is evaluated based on Segment Operating Margin. Segment
Operating Margin reconciles to Consolidated Segment Operating
Margin as reflected below, which is a non-GAAP measure. We define
Consolidated Segment Operating Margin as GAAP net income, adjusted
for selling, general and administrative expense, transaction and
integration costs, contract termination charges and loss on
mitigation sales, depreciation and amortization, asset impairment
expense, gains on asset sales, interest expense, other (income)
expense, loss on extinguishment of debt, net, (income) loss from
equity method investments and tax (benefit) expense. Consolidated
Segment Operating Margin is mathematically equivalent to Revenue
minus Cost of sales minus Operations and maintenance minus Vessel
operating expenses, each as reported in our financial
statements.
Three Months Ended March 31,
2024
(in thousands of $)
Terminals and Infrastructure
⁽¹⁾
Ships
Total Segment
Consolidation and
Other
Consolidated
Segment Operating Margin
$
350,072
$
34,188
$
384,260
$
—
$
384,260
Less:
Selling, general and administrative
70,754
Transaction and integration costs
1,371
Depreciation and amortization
50,491
Interest expense
77,344
Other expense, net
19,112
Loss on sale of assets, net
77,140
Loss on extinguishment of debt, net
9,754
Tax provision
21,624
Net income
$
56,670
Three Months Ended December
31, 2023
(in thousands of $)
Terminals and Infrastructure
⁽¹⁾
Ships
Total Segment
Consolidation and Other
⁽¹⁾
Consolidated
Segment Operating Margin
$
373,154
$
54,198
$
427,352
$
1,491
$
428,843
Less:
Selling, general and administrative
48,056
Transaction and integration costs
2,159
Depreciation and amortization
62,164
Asset impairment expense
10,958
Gain on sale of assets, net
(21,534
)
Interest expense
76,951
Other (income), net
(13,586
)
Loss from equity method investments
2,766
Tax provision
46,037
Net income
214,872
(1)
Consolidation and Other also adjusts for
the exclusion of the unrealized mark-to-market gain or loss on
derivative instruments in our segment measure.
Three Months Ended March 31,
2023
(in thousands of $)
Terminals and
Infrastructure
Ships ⁽1⁾
Total Segment
Consolidation and Other
⁽2⁾
Consolidated
Segment Operating Margin
$
402,139
$
78,678
$
480,817
$
(126,586
)
$
354,231
Less:
Selling, general and administrative
52,138
Transaction and integration costs
494
Depreciation and amortization
34,375
Interest expense
71,673
Other expense, net
25,005
(Income) from equity method
investments
(9,980
)
Tax provision
28,960
Net income
$
151,566
(1)
Ships includes our effective share of
revenues, expenses and operating margin attributable to our 50%
ownership of Hilli LLC, prior to the disposition of this
investment.
(2)
Consolidation and Other adjusts for the
inclusion of the effective share of revenues, expenses and
operating margin attributable to 50% ownership of Hilli LLC in our
segment measure and exclusion of the unrealized mark-to-market gain
or loss on derivative instruments.
Adjusted Net Income and Adjusted Earnings per Share
(Unaudited, in thousands of U.S. dollars, except share and per
share amounts)
The following table sets forth a reconciliation between net
income attributable to stockholders and earnings per share adjusted
for non-cash impairment charges and losses on disposals of
assets.
Three months ended March 31,
2023
Three months ended December
31, 2023
Three months ended March 31,
2024
Net income attributable to
stockholders
$
150,206
$
217,207
$
54,081
Non-cash impairment charges, net of
tax
—
10,958
—
Loss (gain) on sale of assets
—
(21,534
)
77,140
Loss on disposal of equity method
investment
37,401
—
7,222
Adjusted net income
$
187,607
$
206,631
$
138,443
Weighted-average shares outstanding -
diluted
209,325,619
205,563,276
205,977,720
Adjusted earnings per share
$
0.90
$
1.01
$
0.67
Funds from Operations
For the three months ended March 31, 2024
(Unaudited, in thousands of U.S. dollars, except share and
per share amounts)
The following table sets forth a reconciliation between net
income attributable to stockholders and Funds from operations
("FFO") and FFO per share. We have defined FFO as net income
attributable to stockholders, adjusted by depreciation and
amortization, gains or losses from the sale of assets and
impairment charges, each as reported in our financial
statements.
Three months ended March 31,
2023
Three months ended December
31, 2023
Three months ended March 31,
2024
Net income attributable to
stockholders
$
150,206
$
217,207
$
54,081
Depreciation/amortization
34,375
62,164
50,491
Non-cash impairment charges, net of
tax
—
10,958
—
Loss (gain) on sale of assets
—
(21,534
)
77,140
Loss on disposal of equity method
investment
37,401
—
7,222
Funds from operations
$
221,982
$
268,795
$
188,934
Weighted-average shares outstanding -
diluted
209,325,619
205,563,276
205,977,720
Funds from operations / share
$
1.06
$
1.31
$
0.92
Condensed Consolidated Balance Sheets As of March 31,
2024 and December 31, 2023 (Unaudited, in thousands of U.S.
dollars, except share amounts)
March 31, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
143,457
$
155,414
Restricted cash
171,476
155,400
Receivables, net of allowances of $12,828
and $1,158, respectively
335,313
342,371
Inventory
186,584
113,684
Prepaid expenses and other current assets,
net
201,953
213,104
Total current assets
1,038,783
979,973
Construction in progress
5,797,511
5,348,294
Property, plant and equipment, net
2,175,882
2,481,415
Equity method investments
—
137,793
Right-of-use assets
726,391
588,385
Intangible assets, net
211,854
51,815
Goodwill
776,760
776,760
Deferred tax assets, net
27,549
9,907
Other non-current assets, net
125,632
126,903
Total assets
$
10,880,362
$
10,501,245
Liabilities
Current liabilities
Current portion of long-term debt and
short-term borrowings
$
291,518
$
292,625
Accounts payable
524,535
549,489
Accrued liabilities
417,612
471,675
Current lease liabilities
147,793
164,548
Other current liabilities
185,415
227,951
Total current liabilities
1,566,873
1,706,288
Long-term debt
6,734,860
6,510,523
Non-current lease liabilities
552,619
406,494
Deferred tax liabilities, net
93,083
44,444
Other long-term liabilities
36,645
55,627
Total liabilities
8,984,080
8,723,376
Commitments and contingencies
Series A convertible preferred stock,
$0.01 par value, 96,746 shares authorized, issued and outstanding
as of March 31, 2024 (0 as of December 31, 2023); aggregate
liquidation preference of $96,746 and $0 at March 31, 2024 and
December 31, 2023
96,655
—
Stockholders’ equity
Class A common stock, $0.01 par value, 750
million shares authorized, 205.0 million issued and outstanding as
of March 31, 2024; 205.0 million issued and outstanding as of
December 31, 2023
2,050
2,050
Additional paid-in capital
1,043,652
1,038,530
Retained earnings
561,422
527,986
Accumulated other comprehensive income
64,179
71,528
Total stockholders' equity attributable
to NFE
1,671,303
1,640,094
Non-controlling interest
128,324
137,775
Total stockholders' equity
1,799,627
1,777,869
Total liabilities, convertible
preferred stock and stockholders’ equity
$
10,880,362
$
10,501,245
Condensed Consolidated Statements of Operations For
the three months ended March 31, 2024 and 2023 (Unaudited,
in thousands of U.S. dollars, except share and per share
amounts)
Three Months Ended March
31,
2024
2023
Revenues
Operating revenue
$
609,504
$
501,688
Vessel charter revenue
46,655
76,524
Other revenue
34,162
919
Total revenues
690,321
579,131
Operating expenses
Cost of sales (exclusive of depreciation
and amortization shown separately below)
229,117
184,938
Vessel operating expenses
8,396
13,291
Operations and maintenance
68,548
26,671
Selling, general and administrative
70,754
52,138
Transaction and integration costs
1,371
494
Depreciation and amortization
50,491
34,375
Loss on sale of assets, net
77,140
—
Total operating expenses
505,817
311,907
Operating income
184,504
267,224
Interest expense
77,344
71,673
Other expense, net
19,112
25,005
Loss on extinguishment of debt, net
9,754
—
Income before income from equity method
investments and income taxes
78,294
170,546
Income from equity method investments
—
9,980
Tax provision
21,624
28,960
Net income
56,670
151,566
Net (income) attributable to
non-controlling interest
(2,589
)
(1,360
)
Net income attributable to
stockholders
$
54,081
$
150,206
Net income per share – basic
$
0.26
$
0.72
Net income per share – diluted
$
0.26
$
0.71
Weighted average number of shares
outstanding – basic
205,061,967
208,707,385
Weighted average number of shares
outstanding – diluted
205,977,720
209,325,619
Condensed Consolidated Statements of Cash Flows For
the three months ended March 31, 2024 and 2023
(Unaudited, in thousands of U.S. dollars)
Three Months Ended March
31,
2024
2023
Cash flows from operating
activities
Net income
$
56,670
$
151,566
Adjustments for:
Depreciation and amortization
50,491
34,608
Deferred taxes
(6,822
)
—
Share-based compensation
5,248
—
Movement in credit loss allowances
11,588
(167
)
Loss on asset sales
77,140
—
Loss on extinguishment of debt
9,754
—
(Earnings) recognized from vessels
chartered to third parties transferred to Energos
(23,952
)
(31,954
)
Loss on the disposal of equity method
investment
7,222
37,401
Other
12,697
(2,743
)
Changes in operating assets and
liabilities:
(Increase) decrease in receivables
(8,656
)
28,136
(Increase) in inventories
(85,539
)
(2,271
)
(Increase) in other assets
(19,394
)
(27,966
)
Decrease in right-of-use assets
57,190
13,336
Increase (decrease) increase in accounts
payable/accrued liabilities
63,208
(43,400
)
(Decrease) in amounts due to
affiliates
(3,479
)
(2,519
)
(Decrease) in lease liabilities
(62,090
)
(9,709
)
(Decrease) increase in other
liabilities
(71,226
)
55,822
Net cash provided by operating
activities
70,050
200,140
Cash flows from investing
activities
Capital expenditures
(683,449
)
(563,268
)
Sale of equity method investment
136,365
100,000
Asset sales
328,999
—
Other investing activities
(1,695
)
—
Net cash used in investing
activities
(219,780
)
(463,268
)
Cash flows from financing
activities
Proceeds from borrowings of debt
2,164,687
700,000
Payment of deferred financing costs
(25,781
)
(5,903
)
Repayment of debt
(1,944,044
)
(1,080
)
Payment of dividends
(32,326
)
(649,796
)
Other financing activities
(4,919
)
—
Net cash provided by financing
activities
157,617
43,221
Impact of changes in foreign exchange
rates on cash and cash equivalents
(3,768
)
948
Net increase (decrease) in cash, cash
equivalents and restricted cash
4,119
(218,959
)
Cash, cash equivalents and restricted
cash – beginning of period
310,814
855,083
Cash, cash equivalents and restricted
cash – end of period
$
314,933
$
636,124
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240508188466/en/
Investor Relations: Chance
Pipitone ir@newfortressenergy.com
Media Relations: Ben Porritt
press@newfortressenergy.com (516) 268-7403
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