New Fortress Energy (NFE) 29 Feb 242023 Q4 Earnings call transcript

Good morning, everyone, and welcome to the New Fortress Energy Fourth Quarter and Full Year 2023 Earnings Conference Call. Today's conference is being recorded, [Operator Instructions] To get us started today with opening remarks and introductions, I am pleased to turn the floor over to Managing Director of Strategy and Investor Relations, Mr. Chance Pipitone. Please go ahead, sir.

Thank you, Lisa, and good morning, everyone. here today's quarter where results, and operational and joining our will recent for highlights fourth record full future you conference we call, discuss developments, Thank NFE. at year XXXX

by and subheading regarding the will said, results find location, full corresponding of recorded be Investors is As our Presentations. that and we'll replay under In year Lisa the the call on website you release fourth and presentation and quarter a being through the will press available Events today's on our same section that walk call.

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

the at let's Energy call. and today you. Managing Brannen me My into again Director; Edens, McElmurray, and CFO; joining is name Chairman Andrew Chris and New Director. over you. Dete, Now to Wes, Guinta, dive CEO; Thank Chance Fortress Managing Wes are Pipitone,

Great. welcome, and everybody. Thanks, Chance,

usual, here As beginning. ago, please the said, we to posted as Chance let's start that just deck minutes few the a refer and at

that EBITDA an XXXX Page XXXX to perspective, to in billion quarter. operating the this we're from quarter $X.X poised very double for million was as good a X year. EBITDA, more So share XXXX, well X. earnings and for per year. record Fourth roughly quarter, than a in FFO doubled and again $XXX

now products terminals of that through power. which it's and a see reflects cargo business profit cargo at our on the operating but -- results. to the number, in essentially QX, financial Most sales you'll you gas fully our and the second the is tremendous QX importantly, line, second line contribution sales, look down, not from customers and So the X from it's sales in our when

opposed to quantity quality And operating so very company. the an of much development the were a from -- those terrific. earnings And as both company now and

very, good actually thing. very it's So a

and earnings If have metric the when business, takes is bottom, from that funds depreciation real is means we adds infrastructure growing. and balance noncash which the that billions of simply that dollars that's look I right actually like from amortization. many on is per operation, the borrowed now, we a we items put and estate this share back sheet here. you have at our it, it applicable think of What say

of amount significant sheet. a there's So assets on balance

so simply power adding the the accurate And earnings gives of of items back noncash reflection more company. a those

FFO XXXX. look a about So when actually with XXXX, talk is $X.XX major major, our in $X-plus We'll $X.XX in and at it's XXXX guidance it now for for because Brazil issue you in us.

years from We about of have $X things that a now couple a for rate a plus us that to a are will operations think takes in of we right or funds the minutes, few that on talk Andrew significant books from in amount run basis. actually

is portfolio can think these something at competitive core and year the and our year we the over plus a projected very, for significant growth year, attack but XX% aggressively. earnings we combination XX-plus with Obviously, earnings. a a very significant levels, of rate us of undervalued results, So gives with along feel We last $X-plus very go these this advantage. a that that share at duration this now

at look Page Let's #X.

highlights. highlights, short So many, the of are there condensed operational which we page on were a which just into absolute

term. Puerto other our confident and security, on the here I in is growth these obviously last lastly, are most island's that look combination the now iceberg. news our and a we're presence We're massive for won't the right actually Brazil the that the power really see We've but short LNG Rico, that energy for the in terminals We Santa already is and in is grow that. lot the several both the of additional with which we and Barcarena government are complete the that late the night. It's in that The steal and plants to last is a I built Andrew's at coming. terminals auctions, the are and the to a these and on. very, came the the appreciated In We Catarina reliable thunder, part us that a business the FEMA with Brannen the both power EBITDA us. Brazil. potential continue existing X been last $XXX tip there's closely the of have result, sizable really something for give prospects power there million years. we on fronts installations significant. will advantage, become has very market year. market in start essential there. Fast our what but competitive different very working news huge of which are business itself added plants are to island. and power around When Brazil hope business power basically on plus Let's of this you be in of massive. working and from initiatives now middle success future large quite The many for to the highlight yesterday, you'll hooked a back from gas runs massive up. our

in facilities. first term, our installed So of short the we

cargo the LNG the first March and month of month the expect in of first in April. We

very, while of be note tail installation the it's in of project. the the been delayed, little would end LNG it's at planet. And history we're a bit obviously, fastest that very that So still the to it important

produce bit we done. We a balance, recently feel well That's always quarter is our Construction that believe now announced as good step capabilities that what expansion X has a the slipping meaningful But are fully these out that, brings to of as and our export The amount financed. our actually objectives. creates obviously FLNG taken, powerful existing very, developments, very terminal we substantial our of as terms that's XXXX. other we beats the Puerto to business that April. FTA that in result Rico well. little So on in X [ customers just the ability have begins from very recent believe in with and ] aggressive of even disagree very, onshore liquefaction Rico will We that facilities covers because a as us only linking turn as we facility it in we're of we model. FTA in has these first downstream than about we not a downstream both countries with company facilities. more but Puerto to And the make the in LNG will the the pause by government this affected well countries. downstream a

financial in circled both run very quantity would have that So year good the The most is part, the of already we place earnings. side, quality number highlight is the highlights in okay, a news. Page that's this and very that the on one reflects, right-hand for Brazil. rate tremendous X, in thing what I

basically $X-plus years FFO to $X So cash now $X.XX are to operational there. we when $X.XX from flow. fully to obviously, X is going from The

and in Brazil advantage gross our and financially. with have And expected this that like the the and competitive in same markets net the $X-plus the peaked have different in in, got XXXX At the duration of time, significantly portfolio we bright we $X We future decrease us below. is we've operate and extremely feel year. these from and to CapEx

can roughly the for bottom of You across down XXXX go net XX% XXXX. page to see the numbers the by

which pillars run the terms the highlights is very that it for generate We decline both also the create and will the terminals We means operating the to key our basically think X at manner. in in gas the sales of and going terms, advantage what distributable a go others business power manage forward. Page of the to is simple but basically gateway cash and are markets, simple competitive bottom that flow the in in provide line page So is company, then for we earnings a And us X massive for sustainable for are us. look a timely to that page, our CapEx. this that this hard terminals. to

so gives confidence the it our so much us of in And businesses. growth

side the very On the are that of left-hand on power you'll company. we side, see power a much

power. X.XXX So gigawatts of

provide a both manage fuel supply largely is company that So own, right matched. our gas and now to the business in large very very, power we

see a not intention growing. the LNG actually quarters at our were be -- decline not market say prices the our X in actually that in is like but our And for would earnings we year, price. changes of only the are you to they exposed stable, and last to when look you I results world's precipitous So

utilities. very, very have throughput, the like So terminals amounts intention, bottom not that upside is while we LNG. results our to that but to of on are significant are It's amounts they tied they into speak line market they evidence the potential prices clear significant not it. The -- currently for also of have

in Jamaica, our XX%. of XX% Brazil, Mexico, Rico we utilization Nicaragua, use Puerto XX%; only XX%; So XX%;

terminals a have to got us these They for them. move upside. little more through of CapEx So no essentially require amount or substantial product

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powerful to it's a that, Puerto to turn Brannen it talk I'll combination. With Rico. Brannen? about very very, over So

Thank you, Wes.

X presentation. Page to move the Let's of

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now Page Turning XX. to

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in the of was The the awarded April the emissions Port second reliability to of a Together, months grid and sites 'XX of later hundreds just millions dollars reduced to September. grid excess few XXX of the delivered and XX% to provide site, NFE these megawatts. payer. in project with in Rico power San the power generate of savings rate Juan XX%,

reduce for mandate to rigorous the Hanera Hanera, is its system fleet. privatization each Hanera cost NFE These and that over July started of X in increase reliability, generation developments on of second emissions. lower at thermal these say in first with PREPA's The and X Puerto a fleet we privatization wins to ratepayers thermal of XXXX the on year won the operations. least X the generation build goals delivering to to decade the continue I'm to NFE's is proud tangible took in X Rico. process. PREPA's manage the subsidiary, franchise goals during further enhanced next work

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allows switch, initiatives Our a NFE well to of variety fuel other deliver and choice rate to to Puerto provider the supplemental payer. execute as to positioned the is strategies value us infrastructure of that Rico fuel power on such footprint optimization be

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business in accelerate to bring markets transition. This We are in as energy NFE invest provider team be continue Andrew? essential opportunity Rico These drives readily can jurisdiction, will there the now there. infrastructure. made Andrew value tremendous to to franchise for the solutions Brazil solution similar creating to experience addressing to by the choice. I our talk seeking expand to Puerto building adding his the and and and applied of exciting they turn it projects other challenges, advances other in and over he NFE about

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are within day but each totally planned, did other. and getting of a arrive of basically also each day they hooked And so other not up a within

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On that the the right problem side they've had. is

So is, very with these intermittent what a had all energy price. that you've volatile sources, means

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know things that that the to many enough when for Today, were of years. of XX plants would storing the one these that about built, we're first last so And is energy capable lasts reservoirs hydro days. Brazil storage

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is of there opportunity in Brazil underline the the gas. One enough really isn't things

So is in there's to lot gas capacity. gas There's both Brazil today. and a industrial power of for enough but go use for this a industrial not the economy thermal around use, gas there

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NFE ways. has focused distinct in opportunity identified very X and this

On side, we're trying the what strategy. regional left is underline our to

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to that the continue regional for power started import states. is other So and Santa the targeting, at really in Catarina off-takers now to neighboring what we've There develop point we're then we opportunity industrial highlight we're the region. And want are main that terminal. the we'll LNG in

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went the growth the near-term side On right through. I is just

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operational leverage. to is demonstrate significant our third just the So piece

we So place, have and when the in XXX of of we the already contracts add XX this the contract megawatts to BTUs Barcarena, power. gas X

terminal And the paying this from and So our for straight to expenses. now already of FSRU including we're of what really drops make we'll contract the all line expenses, bottom Barcarena.

this So have expect opportunity PPA to you, bodies to made great Chris. us. very Brazil. to it here March. Thank collaboratively with We're transfer progress the regulatory for We've to regulatory a working I'll really in and and in Barcarena turn exciting sign-off

Good Andrew. morning, Thanks, everybody.

through XX to our flip Slide Let's FLNG talk projects. and

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onshore contract installation. have our contract fixed a for with modules a price and price fixed for the date We certain civil date our contractor certain

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year the turn XX, now quickly to run Slide fourth through performance the So I'm financial and to full the going quarter and XXXX. for please

adjusted $XXX of and Just downstream also the was had $XXX per for share per and share we XXXX, earlier, for through was $X.XX the or only million sold nearly segment the included in income The fiscal per page, This is $X.XX now million that in XXXX. margin with customers. $X.XX is cargo from $XXX Total operations should earnings we total to QX, $XXX as of per the produced little we came our be was In sales double XXXX. very charters. as earnings full year a there customers coming our of terminals. fourth CapEx flows share. quarter with here in well. or which no from the volumes downstream described half punchline XX% we which we year vessel required, million year but each open $X.X XXX% produced Wes meaningful XXXX. $XXX nearly case year. the had And equity magnitude quality basis terminals is Net of cash up We've QX per from funds the in this million share diluted billion $X.XX for the market to not XXXX, million from or on from our million earnings quarter second sales on our EBITDA, that record produced and And operating $XXX

Slide billion we're $X.XX operations XXXX that address for that earlier, turn XX. Finally, discussed pay net monitor to around the is down less showing to to of million including table which a of in left on market to the potential can was debt. and evaluating ordinary the due CapEx be around side refinancing $XXX And $X page, opportunities funds notes including the expected X.XX% from we the To that continue billion, is course, used the our debt will XXXX end, conditions. are we actively maturities

in asset Puerto working of by of the power quarter. With share that, operations items funded with level back for cash key X with to flow commercial six, X on construction and process driven of FNG I'll goals, Five, debt. turn over executing growth call policy Two, our and increasing to Brazil. Four, volumes affirming As long-term FLNG our focus our initiatives per dividend Three, to the reduction, of refinancing gigawatts we power part asset free be by agencies Rico. pause And Chance One, deleveraging portfolio XXXX. debt and of in and sales. for X. per X Q&A. ratings fuel switching $X.XX over and on are adding

and moment Lisa, some lines. would up Operator, receive Chris. to you, questions a open Thank let's you please the take

question Chris first Our Deutsche Bank. comes with Robertson Instructions] [Operator from

strong here. performance public potential meaningful speak around wind early here. EBITDA seen as Puerto FEMA provide Rico to we've been to the on the current adjusted what's switching what's quarter-over-quarter what the down Congrats Can kind sources with contracts, FEMA income longer-term There's importantly, last power side? a the change reports and it's Wes, filings over Rico few quite step Puerto to in opportunity just growth you And to contracts just of more happening any fuel cash the its of and and that the quarters, wanting involvement given assets? the the that in mid-March. uplift broadly those as some obvious related this means for regards generation

and as fair it answer. question. to a regards mean with over Yes, that's Brannen actually amount public a to to turn plants as great I whatnot. statements, contract of the both the there's And power to been I'm well gas going

question. And Go it's -- have great feel address so it, Brannen about. let great we me a It's ahead. is a but something this

Yes. Thank you, Wes. Great question.

it's best kind I with to of think facts. start the

Rico in and X, of look government, an them. Rico and news operational FEMA X-year including Rican that of of if through power, we're side at purchase statement the Governor halfway governor megawatts there. the Governor good for There's the units The in between the you about Puerto have Puerto of the the megawatts to We Puerto aggregate, now place is XXX of those agreement remain of been have to these support XXX contracts installed kind power. but

transfer Rico. Puerto to NFE of So ongoing. the process a units from there those It's is government have public to

I think Puerto that XX% couldn't the most look you that without dynamics, system represents XXX XX% their almost of reserve megawatts will become importantly, power if which at to installed it, is into the And megawatts go -- achieve base. XXX margin. will Rico that

look if infrastructure, criticality you So essential. become the the it at now of has

transition plants as diesel evolving, the provide or X the services at going way are off. is power to over gas essentially look what's be of there's terms happening it's the renewables. of the to conversion you fuel place, grid time, opportunity gigawatt will And switch in In to Puerto its ancillary from going run thermal continues Rico effectively supplemental HFO a because And to then if grid and future, about that, is potential perspective.

later. from to e-perspective, -- megawatts all But future. now, ultimately So then the ancillary the strategy fueling, and there a our that is providing, power services under its supporting we we're be for indefinite expect in scenarios,

a I ask Can just Brad. helpful, follow-up? That's

ahead. Go

line power to take the Like you of of on to that would the plants, how conversion in and many from the switch How that diesel spread opportunity gigawatt opportunity? across? type on terms of mentioned. Just gas? that just What terms over does a conversion follow-up in is be it natural that long time of HFO

to to ready is there depending think converted, you X are XX to there anywhere gas executed near CCGT think be of to ready, recall last are like not months. solution, existing plant which opportunities to for there's happened there opportunities. be in the that So sort gas affairs. consider time you plans fact a from to in can the terms X so need today, of fueling want current X, on few because we is opportunities simply and dissimilar process. converting then conversion medium-term X And we probably I a there, it's project The good are in and development of the that fortunate if that state already Juan months is medium-term San what X X actual X to a and they all we've

a actually pretty it's rapid So process.

island. so throughout opportunities the exist And these

Yes. that's helpful.

the the to of one in that fastest critical -- something. everything need history installation period, is power if the the Army FEMA that has add the provided a thing Corps, if happened of which the during of and existing reflects a Brannen is Those think you indeed says place. the put the Brannen you short-term I'd price for just that And plants is think because earn saying as

-- performs plan and both the on converted for that that as gas underway. potential longer our these balance, term price services we that expect well For will than growth ancillary get is our We power. there's this lower at continue significant Puerto people for will are perhaps for think it other this currently both for initiatives system. simply Rico a as But that others both guidance emergency more plant for as

good but nothing news. it's So

Wolfe comes next question our And Margolin Sam from with Research.

it on the then restruck. A new are term whatever price most then because investors and question follow-up between the is are like where basically, in Rico the scenario another because ratios there or will Puerto as And way, changes if your price and the a gets you pro of come upside lot be and a variables affected? but leverage resolution to ultimately inbound of on of negotiation Puerto salient and model think get that But forma or recontracting, volumes balance agreement sort ratios leverage do to we put there on basis? see a when something positive is, go-forward sheet and a from a FEMA a side Rico you business the any new I this for

kind is echo I'll little a I the I question. This -- Yes. think bit mean, Brandon. take I'll of I with where last that. I started

important. I think it's

what Rico look will acquire megawatts Puerto you they a at the itself is are through If moving we they process saying, where XXX that build.

and close near will I think permanent. an to those transaction expectation in the unions standpoint, make that term need from

should that a will a strategy that. that from we So for expect from sheet use around And makes with their you generally. the perspective and cash way others plan capital a in credit and consistent sense, proceeds Chris balance will receive that standpoint, of kind mechanical

Yes.

think... I

also, I address to just it. let's of are contracts. a term those Well, through mean, X-year halfway we

down us Brannen part to busy people on the From interest our people's understand we of so will the what that energy part of every work for at the Rico. that. massive there's Puerto and for And Hanera, XXX day. are I there happen understand conclusion standpoint, while a solution are whole there

the it's the to so have best the fact possible predict that we information. other simply future And exactly than not

the see about both of and the the that governor federal others are Rico as nature government publicly well the these assets. as You in Puerto statements made by

And Juan, about only and the where additional is. bulk bulk the outcome of very math that great bottom I feel under the the the we material and megawatts think on people power area of the in that's of line. positive San island And so a the be for us. sheer of that any the We're the LNG X,XXX you terminal that's to of And power needs take situation, converted, it. when

are the So facts. those

to is about are feel be very, soon about it that but there's more out the future And insight public lot happy to things. based to the respect process. this so more on than there different as we question, can't as like good be But our understand we'd I responsive, statements a predict of it, the I'd that. with as very And as to well on do we'll we share own resolution that, further like

kind clear. Brazil, not No, landscape, maybe too, follow-up upside the I this to And both about Rico, demand volume had, markets. a it's overall you power Understood. a just that's just good to and in in hear there And off and and of competitive date, really just good actually, thoughts can your too, the all love but your in Puerto these today to very your ultimately, have maintain transition you would kind of there. a is market domain done you've fencing to position? of protecting And I job how competitive landscape your what about share

it enormous forward. a We is think country the import country. because is in little doesn't they I all that shine massive X think capacity need renewable valleys country, is for terminals a doesn't basically real us of the XX% But billion, the effectively, have not something the standby the right? if their amplify or countries, investment sun bit the in I I and gas actually a huge mean wind about the of What is but now of really a X Yes. We renewable. power, hydroelectric it between the this about provide to how model an like or and power other rain a it's is including necessitates the an Brazilian government power. peaks of the to we United in investment So way for Brazil I that blow. portfolio, has it's operating the potentially, Andrew the other additional for power renewable want a today, massive effectively States. that managed should out. with $X.X going doesn't thought -- job historically he I made did terrific mean we've laying been

gigawatts issued it And is billion power, XX massive back $XX auctions for going capacity whatever have have so amounts these or to done power. -- of is they and what they

a vibrant So real them And and activity well. actually because an large it. finances doing such support there's them it's have of country, that that as a internal capital history they markets these

we the we today, a has Pará. is remarkable essential what have flow coming decarbonization that terminal be of of valuation that planet, because handful I on I of Government $XXX we in rating value up, a not already the dramatically. the the in the nominal, contribution the the And we've to have We that all. there eyes. next to of in reflected like middle that's of what hand the of of needed the in the good right, a that counterparts we is to one EBITDA -- new our And like in year down project because be yesterday. this an gas the effect amazing. competitive And with and this just will run the advantage with month in probably on. think can remarkable in were particular, It's going their to that rate combination person. don't it Amazon, sensitive XXXX. parts at it's I is It's all contracted clear thing cash from And April intend feel this. there. environmentally just see opened change of State feel and country. a But in current that value will There's coming stuff our across is It's that feel host is project. is by now you Minister is company I something you the the the So in see expect entire of the in like agencies auctions our with South, see it's of generates is When months. million desperately the most investors in been of yesterday Energy

that gives a show running these are which are and perhaps major the massive provider and to now try We advantage. up the provider And that competitive gas, or we'll only us you. detail of

buy. is are gateways perhaps what that that think prevent opened it's developments and I And about and of terms, terminal and anybody where also ago. the said the other competing is this a commodity that only also you. clear terminals of yesterday that enough started terminals the -- crystal them course, time and build except the that it's service with clear to allow the gateways to people years can't are can in you they is I themselves The not Brazil in time customers, just your were money, the you from So X

with so time in us all And is to compete you now a machine. right Brazil need

If you go just to back be years, can X and there, with going you're neck right us. neck

time have that you If thing machine now, it's don't to a complicated be to with. going compete pretty

competitive different all but think thing in I characteristics. Puerto same all as speak The it competitive Rico, more et cetera. is Mexico. Brazil thing terminals markets terms. the our And I an Perhaps long-term position. advantage. same So in things versus unbelievable is have of something about us are on thing them basis applies none same for sustainable characteristics, actually applies in a attractive couldn't us the And of Rico. applies for have Puerto All in is these Nicaragua, same The that clear is which and

next And caller we'll to Tuohy with the our question, Craig Brothers. move with Shere

with your beyond that fuel with at this X, a with X X Brazil got CPX, fill that's is the net to material sugar MTPA of an at all deployments of I Global And you've within timing attractive LNG. up Venture dramatically you rush, wind way requires opportunities that, and moment, got short with years, But And Puerto great contract upstream downstream being you've believe, least kind all but FLNG SPA that contracting could Rico the these go switching supply. in doubt. and an even FEMA growth. maybe in So very

being over do balancing sources And is, X becomes X up of next wind you first this uses to degree your downstream a years? pedal it you more about governor So foot growth? do issue, the to of specifically, my think question see an the how LNG and the plus on

It's a great question.

is, interesting question this LNG since you to supply pose decade. what it, think are the what you're we provide think concerns are. think years. me of contracted like of where to the people's and business, transparent about end of the doubling the by question mean world very of that been in going that that is at most concerned of fully The then the we is and book you downstream because to of next come roughly in most I that. very the customers couple produce to we've world what opposite support the I I our is of now our we it's When I over terms look the actually

obviously good And feel so we about very that.

look In part liquefiers build more to later mean we that the or the to to more choose do think, if addition, can to term, likely, decade. of massive market there's either continue supply amount in longer it. we we'll simply I a I the of supply

far not lot short customers then list. world 'XX knowledge, really, our gone more the I that we've scarce supply to of -- by and resource anywhere my of about up our to focus can frankly, ecosystem investment like a will in there's And think be I LNG short-term most supply the But period. of think, think to And not. right of business that to ourselves. own beyond liquefiers be terminals abundance through is and running 'XX, And many than be LNG the kind likely ways a the I excess much there's that, in lot has dresses around has the downstream all a get providers the term, into. downstream an our terminals, can the collection with of In so and that issue things long the respect 'XX, operational, service all for of the create addressed. 'XX, that that nobody needs there's I long-term on these in already short that am to capacity so therefore, it's now, that, concerned the and different other that same up many, come just

be company based kind a we of given well. macro So landscape on are, positioned couldn't I honestly, better think where the as we as

But hurdles Great. is XXX% cost contracting, terms you regulatory this And delivery. of a is X that last on better so that great make this place firm sense have left all question and everything Mexican on FLNG have of in What contracting we approvals? in at to in? point? Is locked

Yes.

the we're I FLNG think on Craig. following same path that did X, we

you for desire forward and path contract in is we that partner. can has the everything all the through to you The this President, a move for this approval. his to project have applied So have for your I'll the tell strong moving administration that successor expressed have CFE now we -- been everything quickly. cabinet, apply as or of

attractive this with them, to they're make don't massive financial Again, the and your now extremely again, using getting benefit infrastructure the going government for paying themselves really with online. partner of here, forward. challenges any to that plus for we we're incentive project. the project as existing this expect in and get not So effectively profits the

mean have, Yes. what volumes all for for we a this that be the the a project. And existing else anybody Puerto new has said production will essentially, ban is a difference long-term approvals ban. that which with FTA bring is mean, I own to expect versus which that massive home our a I ability not our got again right existing to we want volumes, downstream us reiterate I we to earlier, Rico now, of obviously, have

We all at located. it because by the are Happily, time. actually we now our standpoint, it's are it be we where doesn't that. as about we're point what expect position only that some care so a our it in in company know future, downstream that from But will happen. of can't resolved we will predict the we of right course, because great and don't

next Sherif our Elmaghrabi caller, to move we'll And BTIG. with

own themselves advantage supply of a long-term LNG a is goal LNG guess, reason price own I if arbitrage they of but couple half still why take is integrated model way, the asking future? to to company this your kind of in there the that present is your of first, So the questions couldn't ago, the different of any realizing terminals,

as the business. want Really, business of we the to in full don't merchant We ourselves really be integrations. view

integrate transport from to gas. to liquefaction we So our to ourselves terminals power

to predictable this of that -- of have And these that. ourselves see to in us as results compare our that, the with same you'll them benefit again, We that think and our think at that want results, look be And don't very part were future. And company over half of goal insulated period, merchant in world. manage We company a and operating both upside we the now have forward for we swings. the TTF or continue price to the delivery so companies as these different in to results point a don't to is the that also I around to the successfully focus to terminals I'd want be of to business. markets second JKM as very our year. decline other we of predict at the look our the and exposed and be going with growing from price to

So objective. I is made that have And the think -- getting clearly that strides we in there. we great are

to a we and we about in bit X what again, the last so said actually doing to But in that. terms think process. we feel we really good of are a were going a do, quarters, So of it's row

a you through Do time how holding after have opportunities want win better sense gigawatt have is sense long the or we And turnaround long these pull volumes gas after auction could more a of on And to you how then Brazil auction? idea the that, terminals? some I announced? see Brazil. A of the get in additional that power a So plus do

work Yes. it. think and it's how minute auctions I X actually about because Maybe I'll let Andrew interesting. talk the spend through go quite

Yes, for question. sure. the Thanks

day. So the generally, those auctions same are decided

not sorry, transparent. done an day. they They've They're are electronic the platform. generally, very decided And same

see bids the happen. all that can You

of in maybe consult There the is we history, into kind auction. they'll take be will or associated So to a with next kind couple public and a account will firm they'll date consistent the data the weeks, -- be for they'll be expect then different happen a actual which auctions. and month announce for rules will those summer. month that month, on auction of kind way sometime of the of set is that with this a things, the There this

a on will and day, bid the exactly June the So know platform. the at what won right? At June they'll you XX, of let's just XX, not kind assume you've price. if run electronic So end second, that's of for or

question contract, exactly would actually that an and for your we auctions will happens, new generation existing is probably know And answer online? be of what interesting that X -- because to auction be when generation. how X. think that X going that's we be been to which And actually It thing of subsets need start. that come is start Now or don't for might not so there's is may kind X-year work But a X- The the there's so time generation, for a think going PPAs new to or probably desire for that way be important matter. a capacity will the those the actually immediately. gets there'll we the existing is frame to great to be it which

an can plants contracted and of are contract out. But not start immediately. kind all government then plants to so And the for auction, your still you going has this the are for win if want to existing PPA, that and today, the plant example,

there'll So of that's exciting start for and early Then typical if volumes you to an auction we which ability those generation, XXXX XXXX kind earlier. new think earlier finish with be could PPA be lead will in and new to in the starting XXXX.

simple for in configuration simple auctions construction the that's capacity cycle right, so And Brazil of because these more process. is a interesting, much

able than going start take be a bit will generation to may later. to construction, new but we so and sooner be that, the obviously, is little And

Yes.

through as that be day, in auction of that I think an announce of date. bids On there the day terms the the be when thing participating will the just the making it there, interesting the be Andrew market and be you're seeing this electronic with own there by end will you'll your the the a team it's you're that so the as that talking adjusts And how course live will award. awarded. over date, of is and in auctions, they

which it could gas but awarded. are into government us generation. -- was with to path This nuance laudable. it's perhaps transparent creates up talking the power that Again, is have this approached there to if that that a them incredibly it south. very very is, there Brazilian that the a people in which very the has are the mean an don't capital it an in soon effective the process. are I Brazil, clear is unique new it's for creates it that outcomes I in it or bid, of So are the that's them future option XX bid path years characteristic gives future, of of generation plants X be be Andrew are X and again, manner will for buttoned X its in And constrained terminals last existing clear about, of ours, where in be think the existing a

we of this And walk for in people think advantage a is Jamaica So I'm in Again, counterparties April -- think it's or Brazil, just I or massive. are hope this I this we're we sometime us May down probably which making on going Brazil because not to stand-alone think not opportunities in education agencies call. rating opportunity to think tremendous. there as the host, this. Jamaica, through take I the investors, will

I so look more forward Andrew. And time to spending with along

next question Citi. our And Levine with comes Ryan from

And end or jurisdiction? terms Two of the of that rates PPA down do consumer? Rican power the how in see One, create the location further any the rate to and step more sales, impetus Puerto in impact in investment ratepayer of you there's extent impacting for that does payer the questions. the plants, potential monetization that

Go ahead, Brannen.

have just and in off-reef. say, a most they Rico the of we'll The for the something anywhere service. kind pay I the worst start with can Puerto in think power is people U.S. I

the of kind that's point. So starting

or XXX look of you on of XX% short megawatts time, period the even off of that the in at about $X.XX rate impacts the the If in, kind just roughly rate. put retail it's we

old you're years. plant is So with there of average HFO on and basis, diesel go-forward the what technology, competing burns about a the because age that is XX

or so technology about you're X.X%, versus XX rates are be twice brand-new X%, which bad. would as today, So talking XX heat that roughly

well fact that that charge. in the where anybody also think but of they excess the So what there delivery would delivered distillate of pair with of both cost off source once is really it fuel because the you from,

to with. You compete have headroom lot of a

So for diesel roughly look $XX it's you MMbtu. example, of at price an today, about if the

for win rate pair. And so an MMbtu Rican a than less today is the $XX anything Puerto

of So there's a lot of headroom in kind numbers. those

Okay. And then switching gears.

What's in how interest the a there's composition the this a billion number. that capitalization. out much that put material And You that FLNG CapEx Is $X.X gross And is I excluded XX, it? at you of think X stage? footnote mentioned number?

Yes.

power by it money we that's about got number, So into [ that's don't year it about QX. spend various Brazil X.XX been $XXX million breaks the the in to on ], thus of plus far works the complete right? some that's $XXX an project, to So really FLNG break total is down little spent already annualized in a million, up but plant

spend switching the next about and Rico $XXX got Puerto to you've million fuel expect on around X that we over years. Finally,

in half about it's XXXX. so And

yes, it's less far that million. interest, capitalized As exclusive and that's $XXX in as number, than

And so you ask the thought question. might and then I Ryan, answer I'll

company, people going being FLNG address committed, have evaluate kind a that company. now our X financed basically with financing million now the our definitely $XXX to we fully on and book. have potential as opportunities we're maturities refinancing updated shorter-term we're in bond So And to of our announced results the

So actively right conditions, rises and to kind the monitor level. to something we are the which of going market that's now

both are performance to So a we -- the shorter-term basically have. through and got of but Rico quarters different needed opportunities kind in Puerto address, couple we've and as We we has we and to material get elsewhere, and of the well evaluate maturities have are that market a every that. performance updates flower the definitely and Brazil of season going as clarify business as both of to CapEx. conditions monitor especially

And Pipitone, or today. question final audience I'll Mr. turn from for have. to that it additional may back you, closing sir, was the remarks our you any

today. as Again, of we you, remain and Relations for Lisa, again. your the always, Investor Please day. thank you, the everyone, Thank And to questions. you Enjoy available, contact rest answer joining thank team. us any

today's now conference may participation, you concludes disconnect. Thank for your call. this gentlemen, and you Ladies