New Fortress Energy (NFE) 28 Feb 232022 Q4 Earnings call transcript

Good day and welcome to the New Fortress Energy Fourth Quarter 2022 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. Patrick Hughes of Investor Relations. Please go ahead, sir.

good and Jess, you, morning everyone. Thank promising joining discuss our for as as the today’s business. year conference will we well very and highlights which during recent for fourth results our call XXXX Thanks outlook quarter full and

is the section available Investors recorded and our and Presentations. website under As by call will on replay Jess being said, Events the of be the subheading

going will that corresponding find location website, step are a presentation release at on same fact, you In today. the press and we to through our

As through the review we and will statements disclosures proceed important these of the that the we important and discussion addition forward-looking to contained factors risk you the will presentation. non-GAAP SEC disclosures in with financial team, within see presentation, description to of our to Wes a measures. series be to filings. We referring related participants In encourage

Investor look Now, at New let’s Hughes. Patrick get I underway is with Relations here This call. after the Fortress.

Wes and leadership team. Andrew me members senior Dete our Edens, and Joining of our and Officer; Officer; are Chief Chris our Financial Chairman today other Chief Guinta, Executive

Wes, over you. to

Great. through presentation we Thanks. we as format, posted. the that to going Welcome, everyone. are And flip usual,

at very, the is the in ‘XX. the year flow more – importantly, just Probably upcoming Page free Xx the let’s of was XXXX. solid we and so we a nearly cash world, EBITDA that have the results, the for So, and start Xx the forecast very volatile XXXX very very X. for year overall good beginning, company, markets have delivered XXXX roughly results

the of dated Those to and easy that very you model continues our comes activities. but cash does all is only for not to and from our the more the predict are of So, number earnings good very, are very us, and start More results for quality and earnings of improve. year. good good, downstream very, easy to so the actually to long-term financial absolute flows

is in There Top for PREPA. highlights. stand contract Next a power list page, handful quarter is generation of of the the out. notable the a really us for signed that we assets

PREPA baseload and the business So successful just island. the privatize parts million. management base contract, X,XXX and fee actually kind utility The power XX-year with were made An years two of to island Puerto two services that did We $XX Rico number number by megawatts is cap a distribution, main the cost power whole a share them units, one, ago and the is total, million. was we the about over to of their of of took up effort XX profit years for the of they of being, several that which X.X of transmission in for units $XXX over. ago; competed contract was in the savings basically

there a generation So as substantial is do to we extent of the expect of cost are amount to cut do, the down is the upside able that to island. which for we

make said what there Rico, our and upside sat the go When the it their Rico of intend than of for said of Puerto want reliability those basically what do. tremendous one, of we load to is on, we think for us service. It we And amount are, scorecards of number service; off, a on held that’s other cost folks people focus accountable to for, that metrics, the a make to be or both two the perform management cost that’s down, us and not this – the and couldn’t more over, shut in be make services two, press Puerto we number perform that’s island we the to we want I what basic took the for shed, in and the with on conference, of Governor the that.

In downstream side on incremental the opportunities addition lots on is lots there of development we contract, and the think whatnot. side, and this to

we So, for this down middle just terminal asset turned built on – there further solidifies actually the it what we have a in great think the of is us, COVID. foundational

of time we running. it this people COVID that up the is reminiscent the So in of working year years X me to ago get to thing like was of when what had and middle

great of and that, to talking we more the So is there it over about timing we come to to and you. take be expect service will around midyear. fully this a lot be feels is but mobilized The sometime

the more talk there to about future. So lot hopefully in a

the two, number terminals. And

our of So the of core the terminals the backbone business, it’s are our business.

near is completed terminals. Catarina second. basically about on terminals major that a South complete. about located in and in that that or areas These think, Barcarena significant Santa just opportunity. are in complete. in Dete We are North talk just we massive are two have, Andrew the Brazil basically amounts they complete will the of is are

two to is as those But we up to advantage big versus takes places. assets our customers the folks, Andrew. a a I big – time turn form most But We and are which as Norsk end the of details downstream it building. well leave of for plant us. baseload in this get baseload what there of there just power to have year march That’s a will at these we other compelling effort of customer the continues significant will Hydro, lot up think on that competitive

other turn we well But assets have great geographies we Brazil Rico, feel and that. Mexico, pursuing. Puerto downstream on we in So to opportunities got in are as Nicaragua significant that in in about as now

and all it. these running a big business of but our is of execution about is part – terminals the getting level of and up base this So

end talked Liquefiers, down last lot. Day we Investor an about We a year. hosted at of the

the near offshore first basically capacity. It’s gas way on business. of The update most is the fully us But and Chris kind to proof integrate completion. of an to give the concept will the is important. first accessing basically our get one that. one an It’s way of

So, shifted the from about talk closed, that, of deployment it, to mechanical this have now the made and of transfer operations completion have course, the it, with of significant is focus but And we progress. of our to lots kind unit, it. the of which year, we more the of

amount business shareholders. of flow that and a creates The the capital Lastly, shareholders. significant cash to returning affords of us luxury

the opportunities. keeping about but think the I make good company appropriately also is lean judgments capitalized way right incremental to

And we capital fit to see buybacks continue we months, as the or did of significant we excess combination We last do both or possibly shareholders. expect XX either we in stock generate dividends as to capital. of a through to amounts as will return quite

but was just macro about Andrew a don’t the have year X, about of anybody bit the LNG the will XXXX I some Page in So detail. a on tell talk and this call, volatility record markets. in to

already So on the market invasion box the side, markets, was the if yellow hand you go and at time look left Ukraine. is that the back there the dislocated at the in

one; a in the combination number or switchings, in a It’s So in weather of last in has you there two hand fuel the all had by substantially. the Europe Russian significant been exacerbated that side really things: what see blowup wintertime. the And right. is right on so number That weather, happened as pipelines, fortuitous abated the move was up the a two warmest the warm of price XX in that result. that already Europe is just significant disorder years

good the they is So are beneficiary fortune, which of just great.

was alternative has lot to very back thing would the or of is between what gas, have the that prices dirtier switch really not a that kind But One diesel, there clear, like is happened all over fuels, coal, Europe debate of whether fuels coal. the so converged. fuel

last up of the burning been being think most coal that was There Europe actually year end I will prolific that, year kind debate settled. in ever. I – has think of

way there when had question security So they and no environment, the between went. pick energy you is which to

prices is prices is So can that’s lower bit. a – – that, about us for the that across a has talk effect that think of net that that broadly and also in case the theme more this Andrew But world. and Certainly, been China, little I the not just you is customers. Good and price, multiply take xX, that gas for oil thumb the sounds TTF, are you it the equivalent. are for in $XX our the business. great great if gives that rule of that LNG your actually is good converged downstream while business

a So $XXX at of expensive is that It is barrel the oil of unaffordable. $XX and expensive unaffordable. equivalent and sounds xX actually

downstream that to is move very, really, for to come back where in fuel a business. our sources for to So solutions our really good productive much albeit it and line gas business, very having relatable customers more becomes higher started level, is and and because point our reasonable price power other now at actually more we down with than a

guess XXXX say crisis yet front The not of still is over. So not is the over. is I last thing us. I’d of the in winter This winter is

We next think a to again, are hole there big year. in in and activity fill But the levels try is and Europe think, big about talking have coming that more real a fuel we more weather, but switching, significant add dislocations to I winter. some they terminals, and still there possibility is of

over to last I standpoint. more XXXX be my execute. before couldn’t really the the is from flip lastly, for simple year here XXXX, page is just my So goals

year portfolio, as hand on that over side in see doubled We couple our of matched supply here, left incremental with period and that have demand. nearly have a the we have you the can

So, TBTUs was XXXX. just in on, to number XX read one. through that Supply chart

was to expect are over also that which Demand, so XXXX, forecasting be fully X-year double. than double that period. matched in XXXX, We we more to XXX in

goal volumes the in So have that the the there got. – the you show yellow circles open bottom

have lot to and XX% prices is at be So to to I the to especially a There always volatility going open you can to to with goal matched. of whatnot, and see all exposures moment. bias. bias is bias. be My our questions from market the going largely of about to be get It’s precisely impossible XX% a portfolio our always a anywhere our long be matched. is is

go power. an to to that talk we But to as have as want view gas need gives axe customers that to modern and about You them and inventory sell have to you possible. to

Downstream on, feel by XX%, see our volatility – the as our on focusing it. year and really we to manage that. And we is goes are size power, that next trying here exposure year will and this So good core business you kind goes as as and of operations. terminals, to downstream is that XX% on the customers we business, minimize about that we of

and The us side of next we our on very close power. modular the first really to portfolio is, step buying units power of gas for are

basically to as problems. as of countries Time about is talking all days. is next And be and gas give so, basis. could access goal and different the we soon to that’s something power people, couple enemy as that whatnot, utilities expedited the on if planned, of for these The it goes and in that an

you towards so kind lack a the that provide integrate as ability lot think into paper long give of more is That’s for give efficient. are article months, the shedding example is in morning then the the a have portfolio, to this term our only more step Eskom fully a of South power, there solution And of to about it. for power years, they We those see bringing problem problems places by solutions not all in has right they takes that of do it a in good if solution for solutions faced viable the big too a to is the us problem and longer Africa. the have And that a but load it. even challenge not with

general come, a about just more track keep of. to that you So, marker lots it’s to for

have applications about different announced lot think something about that. see for where a a you But that feel we it If there sense. been pretty I that means this. We it by makes is us, good successful of lot of

operations we Right become that I are The last and focused mechanical hand are short. the things we liquifiers, timeline very is the completion, said now side installation, on. thing, transport, closing on

gone have days. from we days to are double-digit So triple-digit we – in

so call daily this a very very, have, And hard before, our and have Chris working talked we we as this. about on has teams on are

for accomplishment vertical towards first for of and The to. first one something the a massive company up we do of real to look only only and stranded big it it is and a assets us, something of a is but Not the the integration offshore that proof but step is think gas with. these business, forward are running not also we concept for others, opportunities

areas. focus to the but lots are So on, two these main

turn over me let Andrew. So that, with to it

we step will do give commercially. I a Wes. We on moment want and we two really current seeing case. are we markets here talk just morning, that Good update supportive will spend the to price you, Thank then in a because levels business LNG the NFE through and are slides everyone. moment markets think that on on about NFE the time an of

there really on are key here. two Page X, starting So messages

of Ukraine. what terms the prices The side in the in amount we the of saw recap first on $XX we a the time below significantly in is the LNG of the just invasion for some price LNG higher kind is left stability, second of of and levels settling pre then seeing period XXXX with are than environment stable price area,

the leading the Hub in against basically price, year; for Brent to So graphed converts I is on parity, adjust know, Wes mentioned, the last to left TTF think LNG gas side gas content global which most then graph you to oil prices of gas been of and as has indicator Henry the oil U.S. the for relative the gas. price, which the which energy price domestic the

draw you where in exacerbated destroyed this seeing closely then into in the a Europe, XXXX year February had graph, on with the started And of work increasing demand. more the We extremely to price TTF. had opportunities time a to bouncing are then conflict. of actually the up that’s real see market watching then As prices you TTF short to relatively The spikes down, the bouncing saw experience and times price-sensitive was balance rise the doing around of in actually at the even LNG you on market. but we kind the as illiquid before supply were of globe. well that was an really invasion different at importantly, of And kind tightness we the where kind of can

to will difference remain right XXXX is seeing for very levels stable price This of necessarily but isn’t are what is pricing a we powerful today. and these say we the going a graphic the the the current gas levels, between lot level. support one that for back On simple a us showing think below end totally but of to at

the over will So what we XXXX we historicals. the settle be higher prices gas have for really course going of are been a watching to believe is that at where level than

with going At ton $XX LNG to means kind incremental starting to high-teens our levelize fuels of we levels, business. expected, in last Lack that’s prices seeing that we these And overall are power. low as that into are in just So we winter back seeing get a and back in levels levels per are in not support few come sold stability MMBtu and really system. really we level Europe for be a parity down as the globally, to for than warmer are of And turned are gas gas. what come get to prices. months, on we starting some now to still Europe. strong liquidity other at the power see see supply demand following cargoes in reduced there is of with volatility storage But the adequate supportive as

So let means a for Page more try X to NFE’s and to flip on business. me this what little focus bit

measure per of gas, what the or few content is the a volume it which have the together for things of each the XX which and content useful of as than rather shows because volatility. following on seeing the in of kind most diesel weight. all energy so side beginning it is developing of on basis, the we we of of power, in Graph prices price is convergence way these when how really XXXX last months measures months December to So MMBtu see, fuels global at energy to is And market left of now XX typically come in these are really the coal. this of look kind equalizes natural the

high some ‘XX $XX eventually they and took cheaper This expensive such MMBtu. per in which into converge of could who downwards, around to reached but fuels, that mentioned. time, gas diesel in prices levels the switched gas prices upwards, away dragged producers and coal Wes and Gas from countries started

this alternatives. has because NFE, long-term business, For a that its long-term our to in signal for fuel That’s business downstream for really competitive to gas bullish in. us being we pretty is against returned are as markets good sell of kind the

incremental But MMBtu. the that was in, industrial power, LNG selling at year, others we last over alternatives. it not gas we in or of terms supply, any we is in the per $XX to that justify had competitive average business look now So Europe the hard into downstream with when LNG are pricing really against

really in which with that’s And so for we the good customers to a be the we in, are and that business want is the long-term at signal contracts in. already us and terminals markets

we reduced. of the are the compensation point. is. demand back a really of different very, getting also from has is truth On kind it and in we fuels, we as switch been thing but want future, that about not on aggregate supply that right is very will the a further near XXXX, future have demand to in this in with capacity complicated solve the of kind demand to And an global very the as demand is really Russia the reduce that’s changed term. And the of and There supply simple only that offline. equation a And to side balance lot but simple side, reduction to which the speaks to bring supply supply

plus. that are We getting XXXX only of kind

to FLNG really we year continue because NFE, and as but that, to that by the And a we a great a argument system, gobbled long-term see incremental that through market. supply then went great supply continuing, for bring because be volatility going we downstream we there believe it’s in this levels, for on are think with of we so sort in will of of the what moment is up price a And that on comparative basis. just doing lot

that’s the So we’re market today. that in moment

Flipping to our to to our portfolio we the look commercial trying is and to really at NFE update portfolio. do we really the how what Page put is turn here. like wanted XX, page between I match am which on the to demand going business, show And supply an

compare see, to can changing So that’s numbers ‘XX of things of as use you and we and of run because see kind sort going XXXX those the I’m to kind the through rate ‘XX.

supply going really see as TBtus XXX third-party the TBtus that, of that’s increase bringing from Our XX about XXXX. to supply of X well a is you And FLNG kind mix in our by can as online. existing

this looking to I’m clean very analysis, really make FLNG at just For X today. this

then the And matching demand on side, also growth. we’re that

we’re to So TBtu from XX going XXX.

and demand market sort supply XX% point our NFE business the seeing we’re other materially increase And exposed in. long-term through is in is of about be here XXX% not in This the downstream prices. really a to that to So exact we’re terminals. increase terminal meaningful contracted wants contracted

further the keeps levels. at be is activities, about That that’s think our you a got and in, us So great XX gives then same on reasonably for XXXX and as can us for in see the we tolerable in unsold bring XXXX, ‘XX downstream of demand. some XX% but we’ve new beyond market We incremental about to TBtus about contracted. business for supply position reducing exposure volumes, which to

really, as growth lead business So business see that the spread hopefully, in in. good is in And terms spread it a XXXX of sort for and tremendous you of the little the this we’re that between of but the in seeing in we’re guys here bearing growth a that kind XXXX. way bit, to – well

tries just that Page bit. substantiate growth XX a to little

on is going ‘XX basis we this then a we our So in that through and and volumes terminal XXXX expect through downstream per tracking the see ‘XX. terminals what

and we’ve that Jamaica to rate And got come going a incremental to expecting end stays terminal. of Catarina, operations Rico, of the and stable. now XXXX and are Mexico, through announcements But are we’re up relatively to Nicaragua, you GSA, Barcarena existing through that. kind here supply all some Puerto we’re we’ve going soon. between increased demand this and on exciting terminals, So our really adding starting see here the In in we’re then demand basis here, the about to have very Santa run the turn full and that portfolio run rate that see on can

clearly we of on just end of to now front and make kind So the downstream the this in have contracted executing us long-term want of really between sure on we’re communicating great what’s we growth year. that

it turn you. I’ll Chris,

Great. Thanks. morning. Good

state ensure update Let two showing well. you X Slide modules has has an you the rigs. On me the direct FLNG at we as rigs. the things in of construction next suppliers premium Hughes. will of see, our recent can advance to through XX, you the to installed development. frame with The Baker along been Slide and of module The are our of include can support jackup see and deck And Chart pictures #XX, stability from some support and and put the the in the critical equipment the walk progressing of slides current place

close treatment module side can of On right. left gas on the the the up module Slide second XX, on liquefaction you and see the a

be or this and of will we so, land-based and and have All complete integration will and module to then X commissioning. rig begin testing the weeks lifted installed next over

activities All when XX% and construction XX% engineering over is we approximately and on this of complete to our include note procurement. that you are complete

it the And says to Slide Turning frankly, all. #XX. headline here

XXX home With and less sale FLNG installation, Altamira, in to We’re our away days construction focused first than operational Mexico. we’re commissioning its from readiness. nearing on completion, setting

is today FLNG on will take X barge expected begin Late connect work pipelay and loading this to our around and pipeline it location, and to weeks. pipelay that’s location short pipe. the our [indiscernible] week, Regarding installation, the the

arriving the which completed will perform our the then the in ensure will We will activity to to that FLNG subsea tap and risers, prior hot field. be pipe connect all subsea

as such and with while testing Kiewit of work commissioning to the hired getting enable as natural representatives we’ve manufacturers to are much time final in major components validation do can power the yard. utilities, The shore-based commissioning, which yard The controlled Also, process access the For team safety site provides by gas, original our X weeks. instrumentation partnership asset all completed. from touches construction possible. to commission us test as the in equipment to a onshore assets and capabilities systems, at gas commissioning reduces we a line offshore and turbines optimization, commissioning around of typical

Finally, regarding operations, critical and our management and these and needs, commission we’ve simulators storage including We’ve procedures And and base technicians. are training through Port at complete activities training as established hired to for our being teams, competency used maintenance of the as folks shore training. installation, working operators operations. operating offshore now Board Altamira are our ongoing our well

completion staggered all current does is mean? rig mechanical through the let our #XX, today Turn the The is and June. of be the to what me for completed So a May this first estimate on final expected includes rigs to readiness Slide XXXX. line early and update from COD. in of you This time three

the to maximize the commission readiness sequenced on of a on we’ve the mentioned basis, we As the previous have to ability offshore hook-up. and rig-by-rig ahead systems rigs slide,

and the receive of Penguin This station offshore full to other the the the activities the in rigs is starting towed be expected on yard make-ready completed hook-up Kiewit FSRU. pipelay FOCs. this in will from includes the installation the of the to and are to We’re completed also Rigs activities location and June. field be including Altamira as construction they week,

in XXXX. First and to our hit late XXXX gas July LNG June, and August to is COD expect the production in expected units will of first be

So from on liquefiers. moving our

get we will for and you performance through If you’re to QX Slide to turn financial going the #XX, go of some to XXXX.

– segment, expectations. X for EBITDA find margin our the which had more and months $XXX ship $XXX can in was share million that the adjusted in detail ended year billion was calendar of income for XXX% when per is you on or impairment million terminal the from the the which The increase $X.X $XXX is $XX million, was from operating December line And $X.XX our XXXX. excluding and net income The is $XX million an XXXX, net share, per For year, million segment we and charges. XX, appendix. with for which excluding over quarter $X.XX impairment charges, $XXX

which XX $XX to equates quarter, an margin MMBtu. per around operating average we This of volume, total sold TBtus in

plus to of is Slide accessing increase I upsize an since to repayments how end for facility XXXX. This is fluctuations. which On when completed is of match #XX, revolving or next the Hilli working the of wanted final to an and announced facility debt under Earlier month, the $X.X of million comment million million. letter NFE $XXX we and to Golar, the on the asset we cash availability an $XXX One out letter needs balance the additional of increased the close so. XX/XX, support point sheet, is flexible credit the this revolver the of to you million have upsize we in to the capital of sale week priced expected credit the $XXX facility. and credit cost and billion competitively $XXX allows of hand to under facilities these business. of to The From of availability a as on liquidity standpoint, draws our over include

about this off-balance of reduces cash million of In $XXX addition repurchase, to share debt. the payment sheet

done. Almost

said, contracts focused creating year volumes to this and under Further, billion, today. discussed stand adjusted terminals at just If around we our XXXX $X.X a under the take-or-pay quick of on thus some print new are on have downstream will as you made we Xx earnings consumers, profile. to we’ve Slide and and to increase comments Xx credit With steady XXXX the stable selling on turn estimates cash flows. Andrew levered two progress EBITDA be turning our call on the #XX, on long-term based

our and creditworthy with the diversity, Given increase our enhance counterparties, geographic the of of to quality combined earnings. continued customer sales to we’ve

contracted capital cash of investment-grade the at known factors, goals movements is combined to disciplined resistant Finally, XXXX, with company. given flows already becoming our predictable highly that majority contributed to our and market of an allocation, in These are margins. supply

finally, is the on we in trucks. terminal at to asset And a Slide operating delivered customers, reliability TBtus focus being our to this vessels our and XX%. terminals, amazing and world-class our #XX, on our remains on men a testament women our company, XX with regas QX, and around their continued In

And continue had We our saw of last, with our and safety volumes small-scale recordable costs in X.X maintain rate. no out facility. certainly using operations and terminal significant to logistics Miami during delivery QX least, incidents and our reductions we total optimize produced not incident associated but

With over questions. back for the turn I’ll to that, Patrick call

Jess, think for we’re Yes, ready I Q&A.

you If up the queue, tee can please.

Our first Cameron question comes Lochridge Instructions] America. with of [Operator from Bank

Your is go Please ahead. line open.

guys. Hey, my And taking on good for quarter. questions. the morning, congrats Thanks

Thanks.

I can when be off permitting correctly, may just you any expectations incremental maybe progress, I’m there if what expected start particularly have through helpful. chart are FLNG planning color a related And around volumes? FLNG any on going wondering out expectations come was the like, ‘XX. your to It FLNG looks been volume on if looking wanted I update then are on on. a around the in shift at provide to would the so, on that. if guys Mexico? And can Anything you note, offer you there confirm in turning on volumes

Great.

and give first walked point, take Andrew me our runs supply-demand I the unit. this Let have second. permitting a that numbers assume FLNG stuff for Cam, you who through one referenced General one, The at that Counsel, I’ll

weather the X.X net million the expected TBtus days of year. down XX during tons, and So is probably other with XX days operational volume,

front of So that’s you. the what’s in in numbers

we units incremental at demand. We as have are to is supply now. in with simply basically, that being matched discipline have development done a of matter what other a And stages incremental various of right of number look

on world. We units have lots of options Mexico, put around now we that in the forecasting Louisiana both additional and unit right to coast the situations of off other are the

in buy that that a just reference to and and lots That we is, made the is said, side. lot So we to add of disciplined equation. us and demand. if with think, really our opportunity process opportunities, I that, but that’s, are there growth our add of downstream elsewhere and course, But is don’t increase of where it And terminals the we modular gives a intended comes. the and of it part to we really, simply to to and capacity have adding demand not to the we units would incrementally be, of Brazil on did Nicaragua supply, looking the supply

that And see can’t growth not the now. to forecast side we so of we’re right other trying

There FLNG could much are some on think in But the to in we big, are So that. certainly upside think you the that those these those. upside years, we, will us is table that right very in outer numbers with of be a be is to of of front and a of what now. big front achievable reflected lot part there

Cam? that, with So

in I Cameron. This Sure. that Thanks, Wes. permitting Mexico. received is process

I think the update positive on very Mexico the permits is in a one.

We have there. engaged an excellent team fully

to engagement that line hit milestones all Mexican we earlier. We authorities remain we schedule mentioned that match with to for need continue permitting time permitting great of have the and Chris a the the to on

very there. positive a So update

on in we great. be that want online? Is you volumes, appreciate new them just follow-up FLNG. expect rather Thank If imply to that. offtake other to you, before hand? to it. to little volumes FLNG approach just a that dig merchant in I FLNG volumes I coming quick on Wes, Or words, – to in contracted want mentioned much dedicated that. I agreements not That’s I but bit. purely you both deploying offtake via prior have there bring to you’ll these to a additional very agreements could Thanks. for supply have measured

rule sight the It’s clean want these – before is to while to but line to half have build. the is take and we volume it, latter. a a said, about it’s fast being of really on. of hard actually we there unit turn a not the That Yes, units deployed

under number We and are one number and well two nearly we have done with development. three

this So be basically point got we’ve XXXX volume. back stuff would volumes the at burner, is The moving that on ahead.

volumes still would be that which one. quite could So market, prospectively in a a tight be

very at we that don’t of earnings. be the valuable volumes merchant a point time. so interject to market volatility And in want could us into lot But to

I obviously, just are to things our today take very XX a $XX, bring $X, want that’s material of of XX to to the amount is we growth. valuable. be us course, TBtus, if that, you actually And incrementally can then earnings we shareholders to which online on asset quality, at that to high Even repeatable, our this you take want be path mean, close We’re a or think path add with margin, any that’s that path on on. – incremental predictable very these is we valuable.

think get will a today, emerging growth there there incremental But is to So whatsoever, is any think – merchant of from potential way time, we over a an of way. for portfolio, here from one We unit. the without a we these have is volumes suite sure. right lot

Sure. you appreciated. months that past plan more squeeze over And of may some then I Do No, have the cargoes? in. hedged you on what out if one price could much for guys several your just open disclosing

that. number was I market a mean, obviously there We have higher. of in challenges but should obviously, is terms everything, good we hedges a thing. doing and don’t. report That’s of We don’t hedged we In made that. the hindsight,

we quite the we it’s actually but think don’t we we that no, that. So could. And disclose did best constructive,

though, results, show in that up see so... You’ll the

to We will from Solecitto Barclays. Marc move question with next our

Please go Your line is open. ahead.

we the morning. assumption ‘XX prices. Maybe wanted think your sales. then I far of compare and spot TBtus on And as XX, just cargo clarify XX Good on is if embedded to XX Hi. start implies guidance, roughly I Slides that just what the disclosures to as

or Just wanted volumes hedged to those? confirm locked you’ve if those all in already

XX or – Chris. have and mean, I is have is FLNG. There that’s about so exposure this we cargoes Yes, really do that

existing our has expected happen allocated that’s customer to that’s been that contracts, downstream already sold of expected everything remainder year. to the are course from volumes or supply the been So over of the

Mark, is of open that kind the the exposure... point, that, fair So

But those up. some hedged are cargoes of

That’s right.

positions the with modest that’s at pretty And exposure disclose We it’s point, our this we’ve not got this – high we at mid view kind don’t of The the are. only amount today Andrew absolute I then gas this you if out at net the mean, the actually price market of we’ve years. through, as look is that exactly and hedging of exposure said, of what think to we hedges year, on went modest. slide TTF the point. got going that you see pretty teens, can but to down balance,

XX% there our total We February. end the It’s so... front assumes lots still We no which, not open, at incremental course, our of of are looking downstream of in or volumes that’s of of at and that is think goal. downstream being activity, XX% us,

the are it. Got apologies missed TBtu just it, FLNG, – And using as but far That’s helpful. maybe XX your current from if strip in you guide? as I the

are. Yes. We

question. how just targeted you of about over it’s spot then follow-up your that. talk guess Got well. previous then cadence to XX% CapEx the on the And it Can on for it. the years expected Thanks thinking in at next with point? pullback are the as dependent side dividend, CapEx about to payout you relates I just prices. maybe couple partly this And the

big of categories two of Hey Mark, FLNG, kind yes, terminals. being so one one CapEx,

there So, little remaining is CapEx. very terminal

than pretty On terminal, will is say the be remaining I Majority but for two of we step going the it’s pay through in just maintenance that’s $XXX it balance. I K, would And will X, $XX the around and the left then spend. to that. to the million So, terminals think stuff million. it, to we FLNG have that spend in less Brazil QX. between And minimal, we CapEx in at

So, sorry, I you – am will I forward. thinking QX, from think and have today in

That’s in $XXX and from And we see the that Wes has or will about will million in thoughtful QX, it. forward. go X, FLNG So, all be for will how QX that others, I then in think probably And way to in it’s as that million $XXX say, would K, XX/XX to QX. you we spend. the probably continue to closer million that out, would $XXX very we about said, move probably million $XXX

our contracts legal careful taken have precision maximum our with executing excellent We that customers. allow us flexibility through in team

to are engineering we needs. has able to all construction out kind the of pace business and CapEx match largely the completed. So, been Procurement

time. Got the it. Appreciate

Jefferies. with from question Burwell Sam comes next Our

ahead. Your line Please is go open.

little guys. I FLNGs Hey they and guys X. had bit. Last the the boxes Fast cold Chart you to maybe CapEx week, just orders and reported for wanted unpack LNG made X disclosed that on a

what and other? percentage then have equipment of guys labor you so curious procured maybe And much $XXX of CapEx of of unit, is the units. So, that million of far the sort guided how equipment the for versus all per

Yes.

excuse to equipment very the has when have lead so. the maximum we ability so wants we me, on So, long side, move he been we do announced to purchased on deliberate, forward our Day, earnings Investor Wes and have we that that that pace of this construction – the flexibility the the

partners forward we ready do and equipment GE the are we can Baker Hughes, so. move with to construction, so So, the excuse Chart at on when want – on to on continue me, others that

construction and date. rule and breaking expected As make-ready. as and have you location probably a XX% of an far XX% up, online thumb, you do is is and engineering until Obviously, procurement it the don’t make-ready

XXXX, XXXX How $X be is I should helpful. year like construction. much about for CapEx of Very we I expected that you just think CapEx, non-FLNG Barcarena under the sort power Got next? it. with billion. Okay. this Is spend? And sticking still said more of be mean that’s that of how guess should think I to and that plant? a earmarked

Yes.

minimal. So, non-FLNG CapEx is pretty

and So, there are less $XX is million. maintenance any mentioned terminals, as CapEx I than

have we it’s have the a that conversion, specifics the financial can You Andrew so. bit statements. have disclosed to got talk The in Barcarena but it, about million if also alone little $XX-ish plant, and we of Barcarena FSRU or power

that months. power and of over the construction expect XX maybe so, XX we to fully fund course that the the So, of development plant or months next

EPC under being now between with built plant is sum Yes. XXXX. agreement turnkey July power The fixed price Mitsubishi a and lump

So, per pretty modest it’s a we basis, actually quarter obviously, amount of on through a the have. CapEx, a mostly of loan done kind

Yes.

will with included now forward billion we $X forward little additional with thoughtful what of So then, we announced very from the I move be pace last is on a probably our that expecting FLNG online units moving we were think to how probably at we kind quicker supply a of quarter. match there when demand. high That

from We Evercore. will Morgan question Sean our next with take

Your line go ahead. is open. Please

Hey guys.

fully gas. regarding sort it And of looks of questions a contacted I pretty Slide to the is exposure. little some I XX of be think a We have the for open of wondering loan math the third-party XXX would of like bit, helpful. contracted, FLNG, kind get that lot the by am

of yet, right? saying being on Slide sign firstly, sign any any basically to or XXX% offtake maybe Just you that kind on on contracts contracts is – you side, you after start of producing that the either would to just some other sort don’t have are have to kind pipelines contracts with you You procuring have then that And also of gas that of firm you the XX% near-term you XX? of So, now, shortly of in have procure then it upstream? instead midstream difficulty E&Ps probably there gas look and merchant, starts before operating.

Yes.

which we XXX% Texas comes contracted capacity pipeline, gas TC of a a first in Aguadulce, is subcontracting The CFE. to comes in the gas, from FLNG to with they, us. question, the are turn, are on going that X is It And right. take pipeline,

The an gas oversupply. would So, obviously. the out that’s the on obviously that that we capacity bit pipeline, CFE. is sticky plentiful. of there There come agreement Prices have with down, is be very but Texas have the

at terms is that of Henry gas there massive location flexibility buying So, in us. Hub-indexed for

So, challenge a not that’s whatsoever. Andrew?

I to we some you right. models, sign are necessarily the Hey like other about unit the fixed offtake like yes, at business think think way Yes, it think looking about might Sean. not to is,

a have through We terminals. our of fixed offtake bunch

right. showing now XX XX, years. it’s on kind that, of And average an of with think Page XX contracts life of some I

think you how about demand like So, that’s the the contracts, or Nicaragua Barcarena our about charter through think FLNG. if we

are shown that numbers entire the of aggregates portfolio. Page Andrew’s To are the XX on point,

bottom, and it’s taking the we done in specific contract, It’s that so. balance the or to and context we at balance and have So, location of Cheniere just a the the numbers individual really or are overall or the FLNG of not that supply have typically. else supply that – be it net anybody allocating we demand an Shell of

really helpful. Okay. That’s

already So, the relationships has effectively the set CFE upstream up.

and a no relying are get course, are anything is to guess sort their it kind that? price to the do relative water MMBtu sort – of Texas. Is there dollar an it there relates do there Crossing on question So, in say, also another And gas. think of of lot to just Henry Valley gas we per CFE I of CFE on pipelines What you the there? you we Hub? extra of costs is of because like transit of quantify and two margin can How need in sort built then

No, what exactly is. good guess. minus very a plus we that’s That’s or think it

Okay. Alright. Thanks Wes and time. that’s it me. the Appreciate for

bet. You

from BTIG. Lewis with Our next comes question Greg

go is line open. Please Your ahead.

updated everybody. hoping the bit of the takes. EBITDA and about taking for and little some the talk kind of puts Hey. morning to guidance of good Thank my was a and some maybe question you I

above billion the volumes, the of is. where curious EBITDA is you just $X your that around the think mentioned Street about little kind And looking bit You then guidance. still at adjusted a spread consensus, it have as if number, assumptions we

thinking So, might of be of should kind how we trying really just and some understand that delta it to be? where about maybe

It very now billion There strip. of call more of gas We today. difference included feel the the too. $X announced we that really the last had of that had out said, mean of billion. above good has Yes. little little Andrew the and Wes more lot volumes a billion volatility comfortable But on is a higher really and downstream has billion in and bit is about a November in of under We $X.X talked as Greg, call. earnings talked The estimates the I we XXXX. this the since so bit the have where scenario $X.X answer that. we FLNG more execution, it, $X little Certainly, just it feel as about termed at really a we about are question, to about timing FLNG is call, that.

great the about So, calendar very and risk, we XXXX for little billion year. feel at $X

to my will delivering some terminals. thinking the change we gas hear. And call selling to Okay. core the you not there about clearly, question deliver international the is and to are matching we how was demand or business selling, of your Has LNG been the matching more your when in reference other market, about it? any of and the That’s supplies downstream the – but ability of medium-term around outlook into – great And then talk volumes.

power. business that. before a true the basically and take terms, can I mean That gas think of power our I reflect, without of invasion. in the I there world. around And billion-plus is dislocation world. a the lot was people still There There is is more prices for think people Ukraine there the in long shortage demand premise I the X is was that on affordable there Maybe absolute is is exists of – just power power.

is are and There the you is the strong. view shortage no course when is of way think long-term and I the feel confident have yes, I and one, I the we there years macro basis, will is the for at business mean number world the of look much over and one, same fairly X-plus the in the think turn a supply. is, due very all no out right aggregate, shortage the of we that per those them. lack there to of very answer just XX% Puerto time. Nicaragua People terminals last spent And as do. as our other of into capita The in and per I demand question methodical capita power. we as handful electricity a Obviously, yes. example do. we much are. gas is Kenya have Jamaicans is People in XX% use in markets significant the well. a that done of a Jamaica resounding as or But electricity Mexico power used in Jamaica Brazil. are there use lot we Rico is in – what There on, places plants access medium-term build today, a we have terminals those products and as so and And time what in basically

are more So, this, there need feel really the good day. is a businesses question the at vast we every think I about affordable strongly Number is power. something for two, That actually right. about

feel we pretty good that something capacity have it’s things. like to So, demonstrated a do we

We perfect. are not

learning are We every day.

We that you for from think very a FLNG, have proof group except we have very, level that But of at of the of now I great good days with. which concept a having got concept are people. every proof now away

that’s is thing that’s think with good. said because are earnings So, rewarded we and and delivering companies feel year a I pretty from this, just are and then before And the being for year, not mission path, do to do. earnings they at the without their and year like the to right. surprises about of of of good And volume only said consistency living I feel shareholders going outset doubling what we pretty actual as the this the great that of kind doubling then again third quality last they to

are we $X.X $X translates That EBITDA. a earnings, So, right. billion in in billion

And of a growth missing our what company sole what to the magical significant does, we or company. is that consistent customers, going quality we – this, And time you in have very, then said more the you more are and we earnings just that very of of and upstream diversity the this only of is the of heal think the the with high-quality with as actually consider are. address this, So, that value and earnings are And the control we is have the show you right goal I FLNG terminals, we achieved more do. combination the significant the inputs what will have own we it, diversity this which That’s piece opportunities. both earnings the higher now.

the to So, question, it. your short think how sorry long I but answer about that’s for

Martin will We from take with question next Rice. Johnson Malloy our

open. Please go ahead. line is Your

I have here. kind question morning. macro of got Good a

in coming online, take increase for assets FLNG taking optionality or the potentially an maybe would of in ever upstream sense NFE gas make assets conversely interest the molecules? With gas to producer those for advantage FLNG upstream to in invest equity assets it the

It’s question. all kick something around great a It’s the time. we

power my stability ground it and law, that of of earth. jurisdiction from the the the grave the U.S. be on rule adjusted kind and would in for the system. of gas especially a think cheapest I The cradle to opinion, onto out ultimate the the in gas, integration to is gas of is of

domestic this that’s U.S. essentially where is gas first And with so it we are gas buying connecting taking And and into then we to to gas Texas, a simply are basically fantastic one markets maybe what trying international do there. out the idea. of pipeline

I in think very are the the gas assets undervalued. U.S.

so And this. not at expert an I am

actually some it. We quality relative and to have spent and looking a of of very at very, But duration lot world. very, those that think I is of the time the durability rest the inexpensive of products

that’s believer of combination or or it’s over am step think FLNG. explore obviously, we some in first that, directly is assets. a And get something first will it’s all partnership I so And the the I And whether value big of those in it’s time.

things And then will kinds connected I directly. are about. to So, opportunities system those think are think the of we that we

to And milestones be the my any wanted looking there? And I maybe zero there we hydrogen should just question, out for ask Okay. are second project. about

presentation it to the with mean out business. a thoughts that so left I actually tracks far regards are we of the Yes. are the what because – as on of I our

this a off my deserves if before, have get year to likelihood, then do so that goes goal first goal as committed our it the project fully is everything to of of is said all ground that to think And plan. and separate to a half because spin I we for in As and identity. in a separate out the company

We long lead the from Plug. have ordered items

day. We on are have it working that personnel every

have site cleared. now which is a We

We engineering have the of bulk the down.

individual to to I the the when I very, of a ask. think with U.S. The on facilities I of bunch attractive create it the build that for I leave the location important quickly of provided, a whole kind has from And government into look, beginning most what hydrogen, the – facilities. makes and on we otherwise transportation because earth the IRA the a I side. problem. think of that rather incentives those place a picture very turns hydrogen chemistry up think problem is you the an is milestones. clean than to think company, is year thought there it’s But question just good clutter So, very But would

to So, you located it. want going to next where be are use people to

Beaumont to But pretty in future. great. site Our goal is ideal I is the down have our in think on to we close specific pipelines, or close that’s hydrogen we to because customers this a actually not-too-distant are update think

production kind the and given here macro environment the and are credit U.S. for in a – think So I good. prospects the actually quite of that for the that kilogram business, $X

So, thanks for the question.

will would to remarks. And question-and-answer Edens the conference call. portion or conclude that back Mr. today’s additional I turn of for closing now like any to the

available Hughes as wish to they always, It’s day. And today. a to as Patrick take will questions Thank We here. for good you joining you. arise. you additional we it. Jess, Thanks everybody remain I answer may

We gentlemen, conclude does for you call. today’s participation. and your that thank Ladies

may day. great You a at this time disconnect have and