New Fortress Energy (NFE) 4 May 232023 Q1 Earnings call transcript

Good day, ladies and gentlemen, and thank you all for joining us for this NFE First Quarter 2023 Earnings Conference Call.

As a reminder, all lines are in a listen-only mode, but later you will have the opportunity to ask questions.

To get us started with opening remarks and introductions, I am pleased to turn the floor to Mr. Patrick Hughes with Investor Relations. Welcome, sir.

good and Jim, you, morning, everyone. Thank a joining discuss our for and highlights, to today’s business. for NFE’s conference will we operational be continues what which during and bright first development future our call recent Thanks very quarter results, XXXX

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

on quarter our release And results website, will in same fact, presentation press first at find through call. corresponding regarding the location our walk on XXXX that and a we’ll you that today’s

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

the is Executive Andrew Officer; Energy other our with our our and Chief are and underway Fortress team. of get Financial leadership Officer; Chairman Chief call. senior Wes New members And let’s Patrick joining Chris today at This Dete Now, Edens, here me and Hughes. Guinta,

you. to Wes, over

Thanks, updates Great. lot welcome, today. have of I to a and Patrick, everyone. good through go

let’s with usual. So the as deck start

So on start let’s Page number X.

the quarter Just cash looking for at million, $XXX good $XXX very and good to $XXX to starting start year. flow from very the million, revenue quarter financials adjusted right, million. the Segment left free EBITDA

segment free of year GAAP a $X.X billion, adjusted our see income, we right net billion, was income confirming on $X.X can at and EBITDA that of $X.X Push page, for little the flow estimated bit revenues $X to cash billion. the you billion are guidance the

increases significant from themselves year, increases significant the were last before. from year which So

the couple On we provide the metrics box, side of in I hand a right at. that the basically look

be revenues into $X.XX. billion of versus revenues and translated XXXX share. Adjusted EBITDA free roughly per per So goal in in cash that of share, billion the billion approximately XXXX $XX $X.X objectives would $X.X $XX.XX segment $X.X flow

and a I’ll second, just estimated be – attention pay flow but something I lot a year. bit XX% in So for little is margin, of about which free that to to the a talk is cash this

translating the an cash into health simply ratio, So our free at the flow clip revenues of business. wellness that when XX% reflects and is and extraordinary

So the lay we and the and let’s way do I Page earnings and simply calculate try look our with the our that, just at X. to actually that at way What ourselves, out tried number is I’ve that here look scorecard. progress

this way the every things field. We the way financial of out. to conform laying to are making the GAAP make attempt ultimately simple statements financials leveling possible of playing are

are quarter, but are lot this effort I So we putting next of of think there, the and numbers, course, as you’ll well. see GAAP a quarter

cargos attempt this the as business to be make And and actually just start top is. to going sell do ships. our money free we plus operating that our we terminals cargo power business, the terminal math as the the You’re to the sales make on that is really simple us gas business the for because bottom, sell the to of We sell. and margin from as clean to volumes are

accounting financed, that. on have in We there’s complexity portfolio a that’s ships some and

adjusted amortization financials back you But you the net down depreciation, of minus depreciation gives the SG&A then taxes and we course, adding subtracting simple are the to EBITDA income, cash flow. gets interest you free core numbers that brings GAAP in reflect in

to that and So you follow way important is course be actually of lots in should the I’m are oversimplifying that there’s the rules very for GAAP this account. purposes example, – there we able nuances how of But the are business. of

rules so some free that thumb high to course, that side, are, XX%, And out of of revenue that XX% conversion and conversion adjusted from the actually cash turns the of approximately the of right significant jump of very adjusted a is, EBITDA is flow. amount that the result hand financials of goal, of on into then EBITDA revenues into

So that’s view the we’ll way business we through go and that’s way the the try financials. the and

So with to Page flip that, let’s X. number

of go terminals expected, earnings we business. The think what operations the So have growth we in and supported construct the for countries been which significant basically and clean energy, has continued to the power is and material. our the by is energy we and growth organic establish business. It’s expansion business that got needs terminals is

through, the these established here year Brandon example Puerto And eventually an then but are and in both cash we’ll now numbers course time and you throughout quarter forward, this and and of seeing you’re flows. in then impact continue first in operations those grow of the once walk this to expand through have go operations, what just significant. And volumes, over at a a basically beachhead the that are, second will Rico to

energy in in went the in new and couple respects. energy Russian with not were usable modest prices high from invasion to prices making many the years, dislocations large in TTF by has part commitments. caused In and that relatable prices last really very, the prices people very paralyzed customers

of activity terminals. they a lower before, in we’ve significant in what as alternatives. significant remained as at seen reset volumes have look prices than for were of time, increases customer they And normal, than terms The everyone, we through in what and new higher over very And they a is period to you’ve which activity, stagnant. the energy think inquiry the healthy so result, relatively are for if our put the you increases of customer

the very the of the business We’ve durability selling last what terminals stuff. is to little the business impact had earnings and versus the hedging couple of cargo over and that extent, of you the pay cargo productive some sales to. but we old money That’s our the making high, for breakout most and helped come is the years. low which with buying There’s quality some our wrong but fashioned an our way, duration nothing attention terminals from and earnings

the at these XXXX, through a to look XXXX. for the I’m following numbers just turn the and But back Brandon and of you if I’ll it historical just going this page, for at walk numbers estimates second. our basically over and to XXXX So looks guidance XXXX

very If P&L, see the you obviously just can top actually are estimates substantially. moved follow and line, you our for along the what very, terminals annual it’s

million terminals million in in XXXX, $XXX XXXX. in $XXX

has said paralyze people prices dramatically. did at time. point So energy as I in higher That changed really that

billion flat over that year Adjusted billion, Cargo from Ships year. then relatively but increase a in current guidance our XXXX, $X.X roughly also decrease is same. billion EBITDA bit, sales million last XXXX. $XXX for modest So the core from $X.XXX is number the flat period. a SG&A going in down over relatively the so $X little

is billion $X guidance XXXX. for Our

the itself $XX in et XXXX, transactions, massive lots [ph] amounts year, past economic the more last XXXX. there a stuff, million from which million year a XXXX, from significant are $XXX non-control increase obviously there’s So only the Not in Helius of $X.X income of billion the increase from in skipped activity, Net was before. big you Brazil down transactions, if cetera. noise but

have washed it. of of There’s basically a out things that different been bunch

expect is then is which normalized forward, free of numbers going you’re This of quarter health course see a noise, business. but the of and still there measure to of from flow, cash bit a very this the we ultimate point

we reflect in million but what guidance official million I $X.X $XXX business XXXX. as to numbers, for billion XXXX, So these wanted estimate the today. XXXX, see $XXX XXXX, our are not in

will in structurally the is business next simple this expect basis. think terminals The about we the to business we a year and that later continue this here, significant coming with our that especially talk impact over have where of see going to we of next opportunity online the year and we that on grow course core incremental for volumes business, FLNG Chris the year, amounts us year,

So not flows increase, and earnings go the total of the the durability quality but well. and again, those only as of flows cash up cash to quantity to

the business the in XX over Nowhere have a there’s months last impact of than on been significant bigger Puerto in all constructive. we had Rico, there, some development our

Brandon. give to let example that, through with turnover And walk and me the just Brandon? a

that. really Page Great. refer I’ll Thank Wes. to X. you, appreciate I

As putting us really for embedded is the us that of terrific assets to terminal to a Rico terminal the value Wes example position and a our in respond Puerto we mentioned, have needs. in customer

their terminal energy really So providing as our recall, of Puerto to opened vision of energy Rico, own vision in you transition. XXXX we accelerate infrastructure with the to critical

on an around truck to Today, the regas and transportation commercial, grid. in us customers to various From has LNG terminal perspective, island move on the loading infrastructure power, provides island bays, which are allows it that sector. customers industrial, the capability, an to off fuel

drive of allows significant LNG course, supply robust terminal. a very chain to volumes the expandable to that And and us

which expansion a really All of arrive. uniquely capacity, respond and to puts embedded that terminal us positions in position they the needs as when customer to with

U.S. on I’ll you megawatts have Page power, And which into let’s to really them X. supplemental the island, is So translates an puts or sense of power, situation a the for $XX system and outage which is activity. to about allowed the creates to kind us call cost this instability XX% likely energy of that from Puerto has an grid, would than, short economic out the a Rico in this put What every XXX give the government economic earlier to do Puerto year high I additional of very million situation say, flip Rico of about there Mainland in a a more perspective, outage you just

over obviously $XXX it’s year, And lost million course significant. so extremely so to economic the in of result of the about expected activity,

disasters, last extremely fact situation there over and months. are further vulnerable exacerbated hurricanes such XX by that many to as examples This the is natural which earthquakes, the they’re

done season, need XX margin. power starts which So existing what particularly out it has situation, stabilize help to needs did additional ensures age that grid. came would the they importantly, provide on about coverage XX fleet, we years. would then And XX, That be before hurricane both days. capacity said, of government in an adequate work which and the average us stabilize It most maintenance their that reserve an for to about is

maintain for essentially an by economy So that unexpectedly reliable can power and XX% they that’s things output. industrial as stable off driven come

done, existing at we’ve sense megawatts we X, out an We augment signed what they earlier so have capacities first generation the And power a this Page On have. they for call brought at to that supplemental station the you flipping give March contract Seco. to year. came XX, our existing Palo power for of XXX into in

for we so time, roughly for first last XXX I’m about Juan we contract up so fired report at word additional the days XX, have signed time at to we the generators the evening, pleased XXX the infrastructure just XX that yesterday the actually which go. signed April contract, existing From from San megawatts for days later, XX we about an megawatts. terminal, the

and expect by June So both be around that’s in supplemental fully power XX. on to total, turn sites that XXX operational XX will we and June

XXX has from addition, further megawatts this government In replicated ability believe believe through we And transition. particular that struggle from megawatts world that in particular the that same go manage increasing a to the be the jurisdictions to in strategy other capacity. around the also this suffering the XXX we available are has terms issue to that as the strategy compliment, energy of strategy to can

that, Chris. I’ll to over think I with turn it So

everybody. Brandon. Good Thanks, morning, Great.

you the Fast the we’ve business our our give Let – number I’ll our business projects. produce beginning, you best Fast on but not that the LNG the the three for customers. and enhances update shareholders, by only fully to known three to me ways. way maximum direct is critical value, integrating an for please in also LNG always Slide From XX,

us access market, from tight to a and in It a credit supply that’s provides physically perspective. competitive LNG

LN increase downstream global provides control the will supply, sell for of assets And which us it portfolio into into economics incremental to extract flexibility chain. valuable Second, our G or our LNG over logistics enables three, Fast market. we our when

We shipyard than with modules. we rigs, much executing controlled access in a say we’re on true top long. takes greenfield able and the land. the as By cheaper environment, projects, them twice deploy can a to here to is IP in which we as that slide, build on faster as the and quality a As craftsmen them on on ships or the believe construction

final number phases Slide Fast project point, construction LNG our program for to offshore the we’re this is nearing operations. At completion. our The Turning prepare we executing XX, first of while arrive installation been is pipeline have on the and modules rigs site. on anchor currently lifted, and are rigs, complete completed, undergoing awaiting set and to mooring and testing. and integration The

of be Our from days and expecting to sale XX the to month introduced have to system team the the into in gas the over XX rigs is Ingleside next July.

expectation August. Finally, that is we announce in COD our will

Ingleside to training, the installation Our rigs order between COD. simulator possible and full themselves And finally, in competency the team commissioning location regarding from is currently and undergoing control familiarizing commissioning yard much with working full and is the now time on with complete to room, and drills, in first in as working asset. shorten operations, is team the the gas

Turn expected XX. And XXXX. units construction critical procurement the be talk on FLNG quickly modules We’ve all by were to lead Slide is X. obviously Both just modules. underway, about X let’s QX the for items completed and long and to ordered

with Prior CFE this deploy putting operate intent efficiently. excited thing new land. these more modules is allow would announce them partnership versions new modules fixed quicker we’re contemplating and jacket FLNG them of platforms one of offshore, on to that Now, signed letter install to but us on we’ve our much to the the a

Turn to Slide I XX, a provide and bit more can color.

onshore very reason excited similar about Altamira We’re for to offshore. project one the the

massive and allows the it’s years, asset. Our CFE remains highly operationalize underutilized technical effectively sitting idle terminal with The has us for the if been valuable to import the five infrastructure right onshore modular liquefaction past design the solution. paired but an

LNG as So import years networks needed terminal. including and way million much will cubic liquifier, XXX,XXX LNG done world-class for marine ago, the Altamira Sabine same into all The the Pass convert a excellent XX gas power X.X cold are that infrastructure. major a CFE ton is current kept meter terminal NFE was to with tanks aspects supply facility and terminal and access export with

I X.X existing of two and all modular, site an utilize we and the export well mtpa the NFE’s terminal’s tell The it’s new you maintained toured and personally extremely We’ve facility. can that terminal, of infrastructure. trains impressive

provides significant alliance installed with development new and constructed, NFE the timing ahead procurement strategic the during versus Our and with the trains tremendous Both and any CFE, be today. starting scratch liquifier. construction progress advantage build coupled of operational a from years other XXXX will

that, Andrew. I’ll it turn to With over

Thanks, morning, make everyone. I I this have to want points, Good three morning. Chris.

update macro gas first The global the will be quick a for markets.

through geographies. sort try XXXX and and of we’ll portfolio view our our contracted apply that supply we’ll third, sales downstream. Second, we’re to LNG current our zoom business of in And to our core in what go and in seeing the year on

index top, domestic So TTF, Page we’re turning Hub, index XX, and have a really and Henry international reduced the XX to last what led concerns gas seeing much declines. Europe, much volatility. cases, the At the is significant widening we’ve spread lower and prices also plot to seen both months. winter for supply gas the In between European In gas U.S. lower sharp LNG. after last both we and U.S.

have actually over upside to it’s offline think where in people we and remains to prices level engage We are certainly new in long-term willing at Europe. us settled it, very for remaining, on in, hit situation be a a positive Russian terms to transact in conversations that contracts. to gas of risk see and supply as normal Wes a at

As we already a enter $XX or by $XX that is curve $XX. the winter, today at and is forward kind December next curve we of about have

in remain somewhat an scenario some but So these of jittery prices. on undersupplied in, the risk we pricing certainly that market and

the flat even last forecast declines next couple this over $X, we’re really that’s were meaningful years U.S. That low have also places But the beyond. has dramatic, per Permian price experienced production online largely you turn export the MMBtu. in and in other until XXXX in Henry today, $X the don’t as associated gas Hub have you we more gas capacity at year in the from time dramatic remains U.S. big

exporting our to that bottom what Henry business, for So gas page of really in U.S. basically Hub it means is is and supportive remains the to taking spread markets. the our which growth TTF this

of can between TTF that MMBtu $XX maintained see and and kind about per per XXXX XXXX. today, spread Henry spread $XX the about widens to a end of So have Hub by a you MMBtu throughout we

Just this payback of three the time in of just FLNG went years. that to that one on forward is curve unit kind context, our for under well economics Chris put through,

and a flip Let XX bit little to me to apply business. that our

we global here gas to we’ve of what is tried which of what page, the operate, is compete La Puerto Rico. and in and tried places Paz show specific to page, for put we put the for Jamaica Mexico diesel, cost averages we’ve energy So for portfolio NFE. illustrative the in prices And then typically very core the against at that Then terminal, where middle the to our bottom the an indices geographies. for top, the of QX at

accelerate And terminals opportunity in to see our here what can never the almost has is downstream you better. growth been

and infrastructure the graph terminals, supply. to of having downstream connect which the customers. graph, end the then actually middle by bottom the the our the we is the LNG connect the to of deliver the And to middle infrastructure have of basically control We this supply that and to the top infrastructure, midstream basically graph the to graph the of

of the to all into from go supply per MMBtu. $X low-XXs we per our MMBtu context $X So kind way

global the rather the us to to opportunity a overall integration try really these are power the and of middle sense of the for page. you markets that in give really serve energy downstream term the this into So just selling industries margin to how than then customers allows short

Turn growth. here to Page story The is XX.

to going up kind to In overall chart our is from think the XX supply an on so of TBtus. I XXX that, side, is That’s XX% XXXX. in for go left TBtus be eye LNG important of bit apologies a XXXX, it. numbers So through the this it’s of do but

from contribution then turning online X existing the year. this contracts supply our see can from and You FLNG

XX% have is about the we We to going XXX contracted XX growth. in XXXX customer have today about great which contracted volumes, TBtus to and business in of we’re – TBtus That’s so a and do XXXX, sales volumes, open have In more XXXX. of continued beyond. at foundation

to So Chris turning one, from three XXXX. the XXX% XXX XXXX. earlier That and TBtus in TBtus two then from includes TBtus. FLNG will schedule, online on XXX showed and That’s up XX go

Santa contracted are the on XXX have terminal, the that right with Developments sell XXXX. Then TBtus terminal, terms us construction XXX just done Catarina TBtus. that basically Nicaragua and of nearing TBtus turning open XXXX. the XX looking completing what’s of have the are of and of We or to volumes in comes out overall end the seven of construction and front in Barcarena terminal today sales discussion in at in contracts TBtus XXXX in from we of we’re

this would Beyond in showing year organic from that, out FLNG TBtus we’re that well close that as one, is point we partial a year when rate expect growth to In two, XX those I’d XXXX. is and number. thing three The XXXX, fully assets. we to XXX our be in a XXXX run

by but increased show basically TBtus, which terms to this, tried XX% of in XX terminals. we our So in have is year-over-year growth organic about

turn I’ll that, With to it Wes. back

Great.

off and walked to that tried numbers on, it business and the XX%, our other the this much and activities to EBITDA is have enterprise XX%, of private businesses, of got is way. from what jump four capital When thought there kind revenues you mean, market those earnings that I’ll an we’ve cash a understand us flow, and cash there, look at of which And brief When intensive back is XX%. as comparables financials. of are I through standpoint revenues of the that obviously generate that industrial perform typically construction companies free business One conversions answer in at a it allows to activities public industrial you are a of of has lot we market really the has free our lower. each fine the and page. to inside about have two distinct when integration. groups we So that our look the the conversion Chris look thoughts, to of they much, across give and flow

on But of of companies have business, element they course. that the solely profit are course, those for a of focused each motive, one of themselves

free is speaking there there course in to tends So across terminals there is from sectors providers. the conversion and board managers, flow liquefaction, broadly cash XX%. range those are and terminal shipping, power XX% The to of

would for themselves, convert So together our all to a free any sentence rather that flow free today. From And XX% XX% profit standpoint, the is any what a is have those we view course, think of of otherwise but of complexes cash industrial motive in be flow industrial view to simple those a XX%. we’re aggregate result able our to to very XX%, good. activities I businesses of don’t by we business cash why XX%, is have that what XX% conversion these

through And probably I this of think that’s our we’ll you’ll out call this. kind – that We’ve over see done internally is quarterly backdrop go this really on work But some next share that for the time. to this. borne at

fairly We And filing to last that for that expect The night. or business I us think. that’ll our one. provide us authorized night with have an Zero file registration to basically for company statement SEC we to And update straightforward Parks other hydrogen dividend to this company enterprise our process one the summer. filing a of I incremental registration on last the the shareholders. morning, business. separate is Board that is wanted out this a sometime basically That The allow as

file with accounting describes it the that documents a business, describes of the gives it, basically for the company. You full picture the SEC

that depending to By dividend event, and is, forth But business complex days. they how from shareholders. this effective statement summer, There’s registration to and days a to position have this we’ll then an company back it’s of any out They on on sometime to expectations. our the thus will XXX in XX comment be can that are period going days range it. how a busy and XX

ammonia, stock. NFE is terms, a I of for am with I business. of up This that development I think would a expect end this share more to impact green optimistic to of – users geolocate to shareholder this steel, The of material taken impacts a simple In it. green on it. cement than we have ever plants approach next hydrogen, of that the is

when green or hydrogen So start start hydrogen, a with the with That and a you to breaking electrolyzer transport. problem you taking an a problem quickly as because transportation before, then into out. it’s said chemistry up of challenging I the turns molecule

standpoint, those most building we’re is So in logical approach the over to users heart to all in are users, from big there’s it our for the plants way et to Beaumont, ammonia facility cetera. big it. do that Texas, this geolocate of ammonia, lots which do is first cement, fact, basically of next steel, and And the users to are petrochemical activities, there there’s in is There refineries, place. of the

with – I and decarbonize so The of some lot So spend principal say like that a the activities filed information on be it and say look not that. we’ll about Chris? bottom-line to to be company this. is we’ll part this. forward this lot big obviously, When statements process, on share the a point. the impact But of wanted to intend I the to the hydrogen confidentially, is to to there talking these you And just we is update information on you, registration about it. we’ll publicly, ways We we and of world significant. of are we have one you to likely have more that when industrial the time with to feel publicly there’s on of effort available green finish we is think a at

Yes.

the the for for quarter. XX Slide first results to turn Let’s financial

three million in EBITDA appendix in our The in and the the operating any quarter. from XX, is obviously and in March highest ship months the The margin the segment, million number $XXX detailed For had was $XXX had revenue, and million release. we’ve terminal $XX that’s press $XXX million ever adjusted ended segment EBITDA. we in adjusted

charges. income Adjusted $X.XX excluding $XXX was million, share per net which for impairment quarter the when is

discharge MMBtu. during total over This quarter, to the the quarter, here per margin interest first we we X.X as a the $XX for which in have back in of Hilli $XXX sold exchange million been of comment share volumes, reminder, just – a retired, in of transaction, our close off-balance in XX and $XXX EBITDA Golar did sold equates average debt. since sheet XX% TBtus other an in to million which million cash, One shares, we and

point We the Turn to the by bespoke company really external funded responsive plans. require is slide. had we’ve choosing assets, non-core Slide the This our execute on Be to informative a does internally financing near-term Demonstrating XX. to not past. in to cash growth to generated financings, want through executing flows. historically out that company has our based sell growth asset and questions

objectives and actuals we’ve expenditures including of on XXXX our include of our the all – development slide, this The the provided year. FLNG. inflows of demonstrate from we and years. have These same ample fund remainder numbers to the On development, drivers two will over next our all including to for QX expectation continue liquidity information

on detail plus we’ve CapEx, out CapEx as maintenance well. provide this the terminals, more which includes by ship bit little and growth CapEx related To broken a any

For FLNG one four the showing units this three, FLNG for spend includes to is for spent aggregate and date five. remaining through the and cost

any dividends share. current of Finally, we’re can additional not a quarterly you page, see beyond our this as forecasting $X.XX payment on

that continue is as accretive and earnings. to way flows projects best view reinvest development grow continuing our the to Our into cash to

XX% we And transactions, the know, to XX. [indiscernible] all to undergoes sale back and XXXX, sold in Hilli. interest on Slide you and throughout please Move as we executed Golar, in XXXX,

structure As transactions greatly. the simplified capital to, and Wes overall debt alluded these our reduced

On show comprised the of left is three side we sheet really the of current the just page, things. balance

corporate revolver, $XXX which the is First, million.

level bonds the turns leverage. of of tranches discrete in two just over amount it’s you asset in amount When million. $X.XX of – financings and $XXX of $X over earnings, of borrowings it two add billion third, Second, implying of the against billion billion up, two $X

requested that and and weeks, more we review upgrade the Over our continuing the with of hopes met path. agencies gone rating initiate two past a four we’ve of the

is calls, a BB step on be the the outlined including within of predictability but contract we’ve the to agency’s flows, notching our be As an quality one first a earnings and counterparties, plan. In goal your to ratio, to fully modest grade, things to increase credit mentioned is day funded with high lead category. prior maintaining leverage would that toward cash goal, the investment that working diverse capital have in duration upgrade,

an earnings $X year, it over we bluntly, are put growing in leverage approximately basis, sales we’ve we Two, of exactly we terms to over And $X.X billion under can frankly, three to XX% to adjusted have of billion XXXX. visibility done our all for our as and fiscal grade ratios on And investment activities. mentioned, Number EBITDA that. LTM development be under one, XXXX. this self-fund four, estimate counterparties. XXXX year two Three, I our

to have you and If an case that evolved turn over supports some upgrade. XX, metrics included quick for credit Slide we’ve time our

time of to in billion The turns. in our retirements associated debt from first negative we’ve you is to dramatically over And combination increased increased EBITDA now is below operating countries. rating operate as see, XX with EBITDA the lastly, this three from sales year, our turn As us of leverage. can $X puts different as two assets the at we’ve gone and which the well XX lowered asset

we operating maintain incidents maintained continues rate. evidence reliability. and customers. to with uninterrupted near working and our prowess collective incident seen total but you’ve quarter, X.X approximately with recordable ensure XX the supplies power our our XX, focus to certainly globe, tirelessly gas safety during and not each had We and around least, over Slide perfect Last no on our slide XXX QX to this Finally, delivered employees it TBtu

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

Chris. Thanks, Q&A. we’re Jim, for think ready I some

If you up queue the could tee please.

Thank [Operator of you, first Nolan Ben question from come gentlemen. today the Our Instructions] will at Stifel. line

the nest I’m to questions into Thanks. appreciate I all FLNG guys. a time few try to going one. here

well, nested here’s or my is first The question.

should any different, And both then any the all the as process, relates update how might respect CFE? about economics So how the any and impacts and profit onshore, but curious this how update to process? the on we also sharing with OpEx be the MARAD to also Lakach for operating think on of Altamira then Louisiana it

Hit sequence. Ben. Hey them in

Louisiana have with application still the project. MARAD our we for in So,

try in work option regarding active as permit We’re Pemex permitting future. deal Q&A of there’s for with we’ll that work release just engineering to and try would and the get them the be working engineering a and FLNGs With for And continuing to to with the Lakach, an but be over now we’re equipment that right side. with to the on time, installed. negotiates on needed

crew economics to have through believe takes is more we For frequent ferry offshore onshore, which supplies, not offshore, ship I you tugs, too consumables, to you ship standby mean, do are go that you water, transfers, efficiencies. many to have there boats, significant operating people you have but details, have to et move cetera.

partner I we power in onshore. mean, gigawatt that has a of significantly Adding have this CFE over power area. in of access could the cheaper the is a power. negotiated, has to not this, and needed worth All generation and receive who you been not

maybe there. see some And efficiencies so we there’s

released share, far you to the we’ll the have as discussions as that more disclosed we And not and with and the in to shareholders coming over course the quarters. expect profit information active be of And we’re CFE.

described, a now out of this the are a is piece of of really we or just beauty. they’ve I Yes, that where usable. mean rock LNG elements number terminal little tour a site many a of – got weed And terminal. of and the there times. Chris bit, exporting thing a it’s import import a an There’s to Ben, that of the path a course, amplify the constructed site ironic, of U.S. not infrastructure are import take beautifully in terminal that the will the place or first is really, is follow it’s the

happens So to a the in be as wharfs tanks, usable. the would be wharfage the all pipeline activity, directly the feet access land just cubic things of actually receive completely that are and to infrastructure, And the to piece flat XXX,XXX and place. the next ideal power the Chris there perfect said, marine of course transit to those put

They’ve current modular we’ve of partner the is we have situation. underutilized a CFE. this. It’s about where great good one And ours had it’s construction in by it been form ideal the So really and an that dialogue its treatment model, go rigs, they the the into go engaged in gas ship, to liquefaction to can modules, can basically flexibility a allows up the go jack land. can us they modules the onto anywhere go put also they can

out the I because Gulf right, path you’re be where Coast, location most really hurricane of the is terminal the to entire this, of unquestionably direct And the think reliable the that with zone. in it LNG

Louisiana as there’s significant hurricanes frequently So that. by cases and of are there, downtime of course in Texas, result some a hit they’re

you of Here that. due are south

compared to result, other as significant your the think liquefier, frankly Gulf so be it’s a to all positive. offshore going our compared And a I reliability, installation, but to Coast both

So hard whatnot, [indiscernible] on but about quite this. path optimistic economics working and on we’re permitting

All right. it. I guys. Thanks appreciate

question from Stanley. ahead. Devin Morgan comes at next go Our Please McDermott

for detail Thanks Hey, today. all good helpful morning. the

dates And my if onshore formal following turning just Altamira from from one also LNG could I on put context and is the targeted then I’m through XXXX to is and and trying are of just specifically there? permitting service opportunity. you any some get an in into to there here with versus onshore a deal into happen what So wondering path, first what up the into differences offshore? talk LOI, this needs milestones the to this the was

The Ingleside undergoing lead a put has bit, construction in both to to Yes, and procurement existing the really component arrive be that All second yard module. infrastructure so work, all be will tying to little long plant and gas now. a completed two of three modules expect deconstruct the into and marine in right executed the existing it’s we quarter the those XXXX. kitted be are and is to infrastructure. onshore into completed balance the the to and been on final And modules civil

their conjunction CFE supportive teams the work. to the and our From this. to design and all with CFE. permitting of great we currently the and efficient very Secretary asset finalize to by of at the now operators have CFE make with perspective, engineering related the that are are all President, CFE the The underutilized in all with right the is terminal partnership doing that Again, a the So contracts this through permit experienced hoops. move an Energy, of for

pipeline, not them in saving also but money the of by terminal. only transportation but the we’re in So costs, the use of

think that And contracts meetings a to So it agreement circle we through then it’ll is go take few these and installed several here that finalizing more price have construction to detailed. with anything a back fixed we guys, to weeks. and are term of later take them Devin, a I these a question, modules finalized fixed onshore. from that answers your to Hopefully on getting matter expect happy separate call today but

using in Yes, the guidance. sales on see that’s the you I the fall additional is my helpful It’s detail and building this, next bit in on blocks you’re if guide? was the XXXX assumptions follow-up the little talk then appreciate FLNG about to And buildup I cargo great. there. detail a more year’s also the that of could wondering within units where

source a of product really portfolio. is FLNG into the The

from from Shell that comes just an we Cheniere out So of It third-party both contracts will providers Global. where feather aggregate the an FLNG cost you see cost. our and like have Venture as into for And laid the and Andrew aggregate simply LNG.

what we simplest doing think an to terminals, to generated the by calculate cost, We of fairest of economic use it. that’s net that and spread. do the allocate revenues then basically way and standpoint aggregated And from is so the kind take terminals the an

basically don’t into view source a that. to the just go FLNG we So rather a itself profit but be of good sold to center,

we forwards, well. the obviously prices using for shifts transport have quarter. the we’re cost portfolio TTF current [ph] the built And basically that’s our on Henry marked into just as and the Hub strip And then

prices we we’re using the for So market forward.

Very I in as guide be should Great. mean, of well. helpful. stability that there lot a

So that’s detail. Thanks great. for the

bet. You

Sam Wolfe Margolin Research. with

next our have You question.

Hey, good morning, everybody. Thanks.

Sam. Hi,

story – the it really think I here integration. So is vertical

to you not participate shortages costs extraction want gas, participate to of You price power, of gas, not gas. want the and of market in in

of the that, the sensitive commercial is play demand just sort within so cost of to renewables I is curve. because returns think still to and of lowest solution it’s we’ve questions short chain. regulators just the better seen power supply viewed a than pure because more market it these capacity within you in the in part when markets as get And very anybody is what prices. get seems makers And like the policy But press

is this across value sort industrial and price and headwinds? markets seeing? of commercially, specifically of grow prosecute whole the to in are gas you position And at just in just So I guess chain this where a what power curtailments kind you not plan not really see as

example into use Well, and are as is do. is system. But it’s over all do. I’ll things. introduce One a efforts use Jamaicans Kenyans because Americans the much look, couple yes, I world XX% XX% electricity electricity definitely one as the real much people there by use think renewables to same their Jamaicans

So East three in in use you the Africa in person a what days. average year uses

a business the we countries a so countries scarce. of There Many vast, the industrialized availability decarbonization or Americans, do matter a are which simply vast not demand. it’s where places is obviously So doing. of of are actual amount vast, trade, Europeans, the emerging other of course, Western of is power

like insufficient something have XX% the that amount so you gas electricity has electricity world’s of – incredible. needed and the So population the of is

seen I you’ve prices gas gas a diesel price gas the material still – $XX were when that is said, high, discount is thought gas. an and out to what nobody $XX price. effective very Andrew as $XX laid really the at actually I when Today The this one. or this or afford quite And at chart can

to anyplace else, using turn you to that bargain natural So to extent electricity diesel. on it’s the use need gas versus a

notion for access the all that to energy just free this It’s I of need fiction. that like is And thought simply energy the stability, I actually security power carbon think is instantaneously is we’re renewable just matters the energy everywhere, all that think also for it amount but obviously it’s to you somehow the or going quite significant. and that there’s displace

to that figure because XX, the or and look when is integration complicated And at out XX what it’s it’s you vertical industrial or point vastly anybody numbers business complexes that XX And free actual the is the not more that. pure talk But economically happy better it to of play, are than things. than else that’s actually our we is two one. I’d conversion see. more offline cash greater you be significantly number the with about One, flow

that’s people. with there And And we bringing power gas logistics it’s two, we like number to do to significant are the Namely, for to everybody. impediments what have are needed chain, breaks business, perfectly feel a inadequately, that provide because there’s that’s our to have respect done and we that. to be logistics have to infrastructure to needed one done is done in there if whole the for be any the of down. and nine are and them And things that capital is exercise, XX constructed and chain

actually I’m amount the to a you going long short proposition very other of credit the think world, I it’s thing then And when significant vast. question top what of going to demand particular, a build the again, industrialized a give development terminal the value countries host a they’re to of at to And of these look not capital value last say of by around creates lacks systems energy probably where the in answer I’ll supply place it’s that’s to in issues, in infrastructure it’s an is access is whole pyramid. is, the you a creating the be beyond a and But issues as issues, things. and there’s

that. And significant no in Catarina, cetera, that but better see et example demand see Mexico, Barcarena, in exists – exist frankly, Santa Puerto we et see incremental demand we Rico, significant through incremental all demand significant than We’ll in they’ll cetera. incremental

us simple. the into very country, And we it’s but very, with that that terminals an are these provide know grounded entry

you provide them your spread to the effective cost, guidance. to economic over flows it product build you three you be better makes line margins two your use a and customers take or purpose next If economics one actually actually for can the and increase. and because and bottom than more four, It the out infrastructure it sense for now or can the time

of in business. a course, just world all the for decarbonization So point, is – think we to it. great I close many the to It’s that we’re not trump and where card access energy the of for the reality in thing places but a is do the is it but that,

have it’s It’s All then and has to maintenance like to you’re right. or that purchase timeline pulled you not if a Thanks flexibility Thank lot if any or that just have you be hook forward quick project, because follow-up. but it you. about purchasing so if on on commitments much. question through a I gas procurement And Louisiana your there’s affect if any the of have a that – gas pipe.

purchase Yes, no have we obligations.

that all. have would commitments change either. Nothing at the timeline the there no We project of

so much. you Thank

Thanks, Sam.

Robertson Our Deutsche. at next Chris question Please comes from go ahead.

morning, update here? that the good project timeline Hey, FLNG from project for on any remaining first taking everyone. quick permitting just a around you give Thanks the for non-construction and questions. can Chris, my

No.

We’re excellent have doing, the and the support regulators. we at CFE from team

permits construction have hand. We in all

our the are license the permits to our license be We’ve expected received received next by all export export Mexican awaiting DOE this end DOE and – FTA We’re week. is operating and expected of that the month. from on

process kind to third onshore you of back talk to can regarding here about and just how going behind transitioned from And of it. first came really being that? kind focused discussions module Altamira and those project, Yes. the that the Got second offshore Okay. just when about focus more the

Sure. if it’s the to a rig, it’s I key, So longer little is land-based this tanks module is able the fixed existing secret I is infrastructure, cheaper right? the and the opportunity. existing faster. capitalize it’s it and it module any be the depending use marine infrastructure is for deployment. on cheaper jacket, takes on Offshore answer simple and mean mean, deployed The slide. we can ship the in sauce bit on set a

and they to months talking possible. we’ve happen of. spoken they’re have see to that said thing able operational three to about that the quick and And support us asset been We’ve last most not use want this see that to something and is project they this. really this the as as out over to the them make the They have the want CFE

Got Thank Yes. you. Okay. it.

Bank go at Please Cameron America. Lochridge ahead. of

guys. great morning, terminal also and start side you on disclosures ask here. for questions to really just I quickly some about good the that. Thanks and Hey, appreciate my for off of thank I taking the margins business. wanted really

the look Santa come for on margin influence bit us Catarina So from at in you pieces seems online. the wondering of Barcarena terminals implied XXXX, But help terminals. kind determine to downstream for little and if down bit going its a just and to that margin behind imply guidance I unpack presumably of that margin $XX XXXX your little about what’s a if some moving can and understand the a

Cameron, Andrew. it’s Hey

terminals. you Those – in them right together, slightly think when mean about have we’re got I turning that like different ballpark. certainly we’re all we the right. on average I profiles three you’re new in XXXX,

think about margin. over of clear long-term And just And sense We a can overall how that’s I you from the kind in that get into pie perspective. of not it. terms contracts time. it’s have particularly average complicated I think now shakes relatively and them we of out

and you first what your be, to done. as new – tend the getting base But the terminal they’re you’re terminal and right? the that see bulk that you’ll going is to loading lowest margins a a expense load, that get when be up is of Because a that

the looked which Rico margins three first didn’t ago. about the So was Puerto but at we I do – for turned looked just now it the in years three when we on, from this separately, ago we years terminal at

lower today the to be across are of margins much our XX%. because our they would and using capacity factor we’re XX% Those same terminals versus than today where obviously infrastructure about is

extent we have over other and then better are that you of deploy to solutions, other capacity get the going time. across your So power obviously margins customers or that to incremental a ton

the it’s the go XXXX the power to the paying and start in Barcarena baseload infrastructure. example bottom year the Yes, where Cameron, perfect too, be will with we’ll plan next right because is like for then of we kind line

this wanted to that slated drillships helpful. that X I’m you. units onshore correctly or about some were Got are if infrastructure about, so then be ask the it. those have I that And going slated or to thinking for Got originally for you. given – my now it. marine X, Thank frees what Paz FLNG whether it’s and That’s follow-up, up La Louisiana

way safety gone up of part rigs around there’s has the the Louisiana, been think there. ride so the case process the In on concern the far, permitting jack and may some I the of

could so some free of to units assuage these to may move And may that this maybe up in ships bring Mexico any kind onshore that process? and permitting concerns accelerate ride

up, There’s and free is on – very marine capital we’re work three The yes, two, for of has construction. them undertaken answer to focused the of been liquefaction amount for and the that’s answer continues. and that gas got the the prepare treatment what [indiscernible] deployment ships we’ve acceptance to question and significant is right? FID could still one, So the infrastructure that and a the on is modules

that specific the to you’re product to very applications the respect With merit employ. looking are to the application,

that’s an so, lot site we benefit about a lot And the the different doing we’re restarting because obviously, a be would if you that now. clock, abbreviated manner – basically to hopefully, of some the done. solution not to get of anticipating the would done been that right be of work in there’s a work of the that But But already things we’ve usable go be engineering, that. were

Gulf, mean, right questions reading is I having it now are, with grouping it. not the application What’s on over questions concerns this the more the it. of activity. a actually the new and they’re together infrastructure all up jack about simply And our jack than place. to goal is liquefaction used is up the them rigs Our are new so about is finish in rigs

those – are their they all have think of good reasonable the and answers And reasonable so questions it. questions. nature we They’re good and and to

optimistic that course. quite get due we’re through we’ll in so that And

Next we’ll Burwell at Sam Jefferies. hear from

terminals on XX, billion. like in guys, focusing the $X.X Hey a wanted the morning. that’s you the if I figure FLNG, ask question for up CapEx CapEx to XXXX, good Slide add on

two, XQ. correct? that’s the solid rest drop for for that the and You implies that’s FLNG, just spent – Is indeed $XXX XXXX $X.X off year? case. to in units So in pretty the into three, point XXXX And and a wanted one, XXXX another billion not the million confirm respectively of the clarification, of then and just in CapEx

and on and two Yes. and is, do does and money units and two that’s answer off spent number to five. The this one, the We short of already expect a yes, been include yes. both then questions drop – three, completion four

those think margins And the follow-up be about understood. the sequentially? year. sort figure margin on like through quarters the in Okay, a all? should – trajectory how a like but guys look Rico Puerto to we at there through I to that coming got about probably you sales the Doesn’t for like those in margin steady like Should uplift blended then of disclosed should contributing just should ramp taper explicit should we curious the off assume year. quarter-on-quarter XQ. And that the of or per cargo for a the blended pretty rest would think MMBtu how margin but year, And it were I quarter,

remainder XX the short to we had implied answer for and the year. is there say, stay about of expect of margins around the would I Yes. we

higher and quarters, You’re we would for profit expect first through were coming in to cargo That’s third the Yes. two you going a have exactly exactly right correct. have the that little quarters that downstream sold bit to are but the increased than you’re margins fourth going in terminals. sales are that

cargo versus a about – from business the analysts the of got economics mean, and the investors questions lot terminals sales. from of I we the

given is this or that. of obvious to the terminals way about terminal specific for like responsive so like responsive We to it’s right countries like said, wouldn’t we’re it. wouldn’t it, Customers That wouldn’t any And directly customer to be it, sensitive disclosing performance very think reasons. it.

it there you to So that are And of but it full to that’s clear we representative business. what investors are by Chris annually, said, think we – reporting helpful give hopefully economics of the we the very as year. the and think that’s other a numbers snapshot shown are And doing and of those alike.

clear So to across well. you quarter, window the there activity they may of I really really, got kind reflect the variations that think year. but use soas We guys do hope be for the that’s and

Understood. Thanks it. guys. Got

ahead. this Morgan Sean at Evercore. question from morning Please next Our will come go

Your line is open.

a talking rolled and out parks was cost blue of for of Hey, cost has hydrogen. blue hydrogen increased or gone company been bit. thanks gas time the were And team. know has kind Thanks then, about zero a for May question, guess XXXX, little for back of of My to got I since feedstock me of quite kind squeezing go changed while I the if bit. at we it’s quite lot’s a kind in. definitely a The the down we since generation natural

a And shifted on following theme. mindset talk also just blue our of little hydrogen. about bit thinking, based kind green just of can your hydrogen you from on of presentation kind to because maybe that terms it then So seems today’s that bit we’ve a little in

sort guys thoughts of on sort to to versus related power decision renewables that expected treasury green generation Just where come know matching your out debate. annual in curious of of of the you sort and hourly

been hydrogen time. the the has Well, green on – focus whole our

is So based if but economics path. the hydrogen, performers different we’ve that a blue business there green very electrolyzer looked think the that on and solutions are on definitely path the was hydrogen ammonia we – blue have than blue hydrogen, at different attractive we that there very, seen

in biggest that electrolyzers megawatts of put XXX land where So specifically, Texas, project is engaged then in a the Beaumont, the country. demand a localized product. we hydrogen the the is in place. think – is There’s the in To ton would for date, of plant there’ll one the are we of of product of balance projects be. and be a not it piece biggest size green

And that And of conclude we the sales the we’re expect short-term. think to so filing our that’s will I we – in all doing. detailed product in that

don’t specifically more want talk that. about to I So

years two exist didn’t IRA ago. The

only that hydrogen. of course, production credits implementation into is is I and the make is from green our We standpoint, losing And better. picture So going we think The on. neutral people is kilogram from modestly that that money the of which and it $X are big making for think a or obviously business think to money improve something focused takes technology business, a here, better very important. those economics

lot are renewables So and efficiencies I think obviously of the renewables have wind the to and been and price down – a the have efficiency point dramatic in in as over in gone people come which dramatically. parallels other solar the change dramatically up in years,

detail the we that all will that more credit make get and one. the with the And becomes the things when we benefit We meeting think line into more how projects and you capital simple it exciting on makes full production again, economically share And on sector. happen we efficient. IRA flow think the the that, the be on And we’ll a time answer public same we’re influx kind of things it to companies is think. those it’ll got have with filing the to of have of will with and new the this very bottom we viable, views

from gas just the Okay. follow-up procurement clarify. Louisiana to just Thanks, to I then for wanted Wes. question earlier, on And

Louisiana terminal? purchase regulatory sort before it of long kind say up pair to gas do do you lead E&Ps? And of from out you – that kind approval what does So to need of How right take no to line like, upstream in time guys off there’s the outstanding now. of obligations supply sell

So XXX we access pool that gas have to a readily from south back supplies access Louisiana. and back to across pipe run

we So purchase we’re today. no not – have commitments

cubic about volumes, worried molecule. XXX a We’re small about able day. I source million mean, to are right? being the feet These not it’s

don’t We committed issue this see that’s nothing So an going as now. forward.

Okay. Thanks, Chris.

additional back And remarks. and today. that closing our I will to any was for or turn our final audience question from our to it team Hughes Mr. leadership

questions Thanks us good as to available guys we Jim, for to I wish everyone you think may always you. you joining we’re We all arise, Thank set today. answer a additional remain as here. and day. they

this you participation. gentlemen, and does conference. Ladies your Thank for [indiscernible]

disconnect now may lines. your You