New Fortress Energy (NFE) 9 Aug 242024 Q2 Earnings call transcript

Good day, and welcome to the NFE Second Quarter 2024 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Chance Pipitone. Please go ahead.

Thank you, Sumaira, and good morning, everyone. today's XXXX where results. joining our will for quarter second you conference we call, discuss Thank our subheading The be on of available is by under call being replay the recorded Investors and Presentations. Events and will website the section a location, through will call. find today's that we At the will presentation same you walk on now includes CEO, call the to Chairman and as Please including and over review it this risk hand disclosures Edens. Wes information, important factors. With that, I'll our

deck Please call, through Great. posted have that referring Thanks, slide welcome, catching to well we this to everybody. here. our on refer to forward to Chance, we up. as website run we look a lot on the and I be that, as but will

So let's with numbers start the on Page X.

were well first of that quarter result was quarterly in earnings of miss with our -- miss delay for below deployment asset. target of $XXX in $XXX was our $XXX goal million entirely FLNG the of X a the EBITDA million The our million. Our the

Our $XXX It's well this accomplishment. it it's a a this online a July project we we good year bring and year $X is and is investment been bringing reasons, million performing in since major flow. month an variety billion-plus very today's last That's of goal it as and in achieved the This then. missed incredibly April generates of market a valuable news this XX, to free several timeline cash then bad news. we and for months. did the The is on online by online bring

impact few a quarter is impact as business impact big of material and recently even a the a a has the months and profitable delay highly result on we the of the it's concluded. but of that big had So on

of we talk plus EBITDA billion. Guidance few year The expected of also the the the We'll our customers quarter week early in We -- At planned forecast up We remainder shut our production million fire to $XXX for a back is a This total of is down future and is expectations point, present for be Brandon, a past, this over and is financial for we $XXX don't As a by that we'll achieve Brazilian Nicaragua year, Basically, billion. that get is million. asset here. thus, QX $XXX to we $XXX this running transfer recently year been for will the just a impacted this That made results approximately has delay are production had shown the expect to last million. becomes July. well. until X, Page claim good first somewhat now maintenance is full expect FEMA online [ existing news as contract contracted. just cargo goal $X.X this project X, and for our and full QX company. Flip September, billion. morning. the the then and then got of then of performed the performing be the first our addition XXXX, $XXX $X.X for assets. with will cornerstone that from reduced our that of a bit a The production and this we the quarter FEMA with up the quarter's of the and it unit good for thereafter. In I full said, made of to is quarter volumes million a shortly bring partial and next in -- revenues of is XX% for a this and Page impacts levels quarter million residual recap we that ] are minutes will a up range of please. first and In the the X billion of us. $X.X goal was of about the XXXX, $X.X a concluded our to

very feel there achieving I about is that upside these through about significant we feel halfway room only So results. XXXX. confident given for we're

Andrew the contracts in addition, of go billion with In a grow remainder online in we materially, through $X.X Brazil to expect just our mid-XXXX, coming moment. this will which [indiscernible]

Page to X. Turning

math business very is easy now and for Our model the broadly year. understand to and diversified here's next

this X of approximately is XXX at TBTUs XX LNG. point ton TBTUs. supply total equals Our

sell gas ship TBTU. plants as $X, business, our XXX XX I Rico, The Xx thus, cost simple net tons is simple In So margin. margin now at million the in weighted and various you to are order we goal CapEx. organic million. countries range activities, asset the million approximately focused fall have $XXX plus that It's the or terminals the is are largest own proportion -- us to investment, to and we The our margins unit get capital into in or we up. behind you respect $XXX FLNG watershed project market are more gas X.X logistics the Total invested $X.XX X more ships our a of the produced these free $X, cash a of additional And investment which with contracts. of power million a multiply to to from average The The markets by portfolio is the million is equals extent results. function quarter. you next terms, gives go Page the margin, customer this our billion. Obviously, put shown general, X Simply at $X.X X to top. X. is particular, behind here capacity $X of today page represents power is average total. $X.XX of year. which simple in quarter, Henry along levels, and is We've $X X arithmetic, Puerto can a billion and and achieve shows billion math. Flip no greatly of our to numbers create is a little operating is for and X.X FLNG event in of profit flow. Page Brazil net and the pretty current countries approximately on our They of $XXX approximately to the facility weighted or between XXX for $X.X margins supply approximately current these tons, highest. ships $X.X million in portfolio this and said, the but by we added in a roughly our of from invested We've been of just those us. in Cost and the are we our investment for LNG our Hub highlighted earnings with average singularly FLNG $XXX to deployment now or using about grow X organically reduces terrific on service. Operationally, had Xx forecasted

that X to There's entire a requires earlier I'll equity Nicaragua also us. through. capital was just complete, leave a days, Planned of Andrew FLNG is maintenance is production this and are hive cargo the and of to in second. terminals Completion equity from additional activity nearly great X X actually run go Brazilian no we morning. First for complete. tonight The through FLNG finance that I'll starts which triggered transferred full and an show financing, expect thereafter.

completed. So left-hand XXX% that #X, is built of if let's is you the power It's that have well, flip talk the picture This plant over about of -- plant. XXX-megawatt to we Page Nicaragua. the on side power a

installed country you can the picture more as is will the of up. construction the built are see be jetty pipeline. a kit of think years last that. for couple the on the I XX% ready those weeks to for XX first is All to miles FSU here, an materials it's ready waiting last the were That new the power is installed. in it in X-mile The Five in away, bit to there's modern and and from delivered ship of show be operations. be complete, last plant jetty,

in and to begin thereafter. We be completed that expect operations September

Our power neighboring to power Nicaragua line, located to countries. then the allows export next plant IDB us is also from which to

this a Nicaragua American feel Central terminal. we a is actually -- just not but like terminal So

a activity that turn there's a come result to of over will amount think let that. With as that Andrew? I significant Andrew. of it to

Page a update Good for morning, similar on I'm X Brazil. Wes. Thanks, everybody. on

So want and part X future that big to here. are big we assets check on a of in of future projections kind that growth our

the power The first plant. Selva is X

the with plant XXXX. power July XXX-megawatt our COD of that's So

and see a there. a going one-on-one on well there's in half track year. combined fully a can This from picture ton big a cash PPA You the site but small cycle Brazil, on we're debt commence and XXX-megawatt XX% next today with financed activity the of and It's power BNDS complete picture, XX-year left. a flows of to second of is plant, that on

going is there. everything So great

As you power adjacent already. to few plant which our a has had operational for know, X into been now Barcarena We've terminal, cargoes this months. Barcarena loaded different is

we we've is the San very acquired this and Port right that December, Barcarena made To everything operating of is is and we're in project Selva. So well, in then. progress great going since the great our project, and so --

a power PPA. plant, So XX-year X,XXX-megawatt

site on We've picture right, we're are on great on full made to which made starting actually Mitsubishi fully is step And We which is made the turbine. the has Gutierrez. up now proceed you of andra We've can And consortium, pour progress then given as construction foundation, cleared. the big our see the on us. for permitted. from the fully notice to a Mitsubishi progress great

Alumina volumes through Hydro of commissioning we by of commission really for about the boilers picture which demand schedule of well track, well, And we of the the the terminal. of see moving calciners XXXX. Norsk the of well the can actually half X Barcarena COD, their up is refinery is XX% second You as ahead on Alunorte X Gas them. our contract one. are to and are

to really be to planned X by just the a turn by operational. There's very is October Barcarena power Barcarena on. which update full the be Page things Brazil. about check to a of terminal, X to up plants TGS in Brazil together went EBITDA for contracted million on from and expect One through and year, at XX terminal, We coming on our we when well. Flipping further I is also on XXXX our of want other then we is $XXX that ramp this bit contract

current then out the $XXX second from the is our EBITDA terminal Santa which And of million by TGS really contracted in thing expect So XXXX. of is growth we Brazil, that our book Catarina. of

We to year. auction are expecting happen this the power

margin a other power plus and compensate contract to owns the we builds fixed which That of X.X on pay We and power. mix expect for plants will win between supply. a us be gigawatts us that that gas NFE will power a supply

we Brazil we million, auction have great margin. going X million believe can update structure $XXX XX. contracted this We and increase our that EBITDA over and have Page another I'm and growth of capital in next so So structure power Catarina Santa in the next years. the move to X to on to CapEx $XXX by

So we have X pages of the through really to structure we steps on here a NFV. main walk next initiatives. for XX, capital have And few our Page

soon refinance to year. notes of that our due next as in notes is to September as extend existing look the We'll First were maturity of XXXX those possible.

refinancing. backstop an to existing commitment this have We

best that those execution so refinancing soon and secure in And like here we the refinanced to the market getting we'll is be can. of kind on we that notes get feel

less Second to to EBITDA debt secured we're that's by target leverage Xx senior corporate to XXXX. and EBITDA, is going than

below on XXXX as is our math doing well guidance kind XXXX our shown with effectively see you of and of for as we're in right how can here. debt-to-EBITDA that laid side the kind out debt have we can the metrics. then And You what all LTM where XXXX see that

we through, $X.X online, XXXX, below XXXX, that and be EBITDA forecast in grow debt when other EBITDA. and turn continue to be went to of debt we'll then billion which exactly EBITDA Porton would Wes As and Xx EBITDA to in assets almost Xx Brazil

to for more flow free thing create for kind we here, corporate leverage The comfortable projections up kind at to So through of amount of a overall basically how the very based our is walk long-term kind I thing of at going end on cash to we're service that want course, next And point available of to our first holders. make to to and show equity CapEx. then is of debt continue overall cash the more, for deleverage level.

for So XX the here Page FLNG overview and CapEx XXXX. The obviously, is we're then remaining of part a X. key into done XXXX with is, point

our precipitously. downstream revenues bite-size We've CapEx of down and CapEx finish to going on XXXX. generating out projects got start is small So our kind in those

Puerto the of here leads then which page. net have FLNG here on on about You have the we the through is we can loan million That Rico that against X, CapEx term well, X. Nicaragua, of And $XXX to see CapEx netted Mexico, for Brazil, the year. also as FLNG end

CapEx a $XX that net million for the of then of really, from in million we've perspective, 'XX. about So CapEx. got remaining And off drops way of XXXX, part $XXX

flipping generation. that impacts So is Page cash how to XX we'll see materially the

we what of is So very to from our service. available to for our kind walk wanted EBITDA reported flow what provide simple cash do adjusted here debt a really numbers is

of generate deleverage So the eventually cash cash course, debt, to and then, pay we flow. have also free

debt $XXX up we In with SG&A. We're up CapEx for $X.X of debt of part going of end adjusted billion So of in of we're going to decrease all XXXX, the to and flow we're cash to going with start end EBITDA, billion $X but service. cash XXXX, adjusted EBITDA, $XXX we available and million million decrease remaining service.

wanted corporate does effectively to level to capital that which spend this flow just X section, business. sort overall on looking the is which for is long-term then for us. XX things provide CapEx the on structure, first numbers our Page free here lowering loan how really the of leverage. leads higher real the a showed of what migrate actually this is to cash And asset So to important leverage initiatives and to we And few page

long-term contracts lower leverage with debt, benefit equity holders. and having our longer-term bring corporate we're debt. and harmonizes really cost assets the longer-term down it by is first And able The we to of to

we $X So billion life, cash have our cost, FLNG expect replacement X flow of asset. and annual $XXX asset, the useful at million kind to XX-year of

about think $X.X asset of very which achievable. we is we're So showing debt illustrative billion,

TBTUs at simple of XX-year sales. contract Brazil, expect gas plants, duration, almost On corporate leverage. FLNG of we of And on the NFE of with asset corporate value construction. we'd a that we and basically end for NFE back another billion which the up have would to we've billion And $XXX migrate That, the the of using of XXXX, right gigawatts debt. Wes rate the Xx power enterprise mean enterprise the on where of together to lower-cost million average cash asset long-term a duration assets then in $X is about XX debt level would level long-term to that sustainable capital side, get to with LTV we'll X.X $X EBITDA assume with billion our with of then flows leverage over million of which leverage, $X structure in can run $XXX and XX% duration contracted you. long-term on we're billion XXXX, billion value, $X level firm time aligned assets EBITDA $X.X level and long-term we from

Thanks, Andrew. Great.

business really just which initiative, new our here around continuation about that many is for of had many, talk years. let's we've So an existing

Page Barcarena, big business or management at part systems We our big, X here Sandino new #XX. and Mexico, between then Rico, Lapas, gigawatts Jamalco own and course, the A power is in Jamaica, of power NFE development flip Brazil. of to manage of Puerto those of of our So Puerto project, and systems.

have or gigawatts in visibility talk turbines development we'll in We a form We are modular Power just of available for that about of overall. are development own in second. leader global that Systems a X this

the highly our with is very in power reliable deployment here respect experience particular modular, and of very, to So significant systems.

Puerto project. and in year, provides baseload grid pause what that Page megawatts about we with design we availability XXX now. modular the federal are to built the here the where let is of that, the tenants. But was with built achieve assisting to this XXX It impact now to plants of believe FEMA power the to just and most about in the days. grid claim the that reliable me last and we the stable shown put far power XX% to and Rico. X government the with this power right talk of before XX%. We're It you the for If of #XX, over pictures just by and total data United contract are is States in I the talk to turn it do right going can Brannen, we that center and Brannen? portion

a originated Yes. responded the phone, Thank to of megawatts with grid you, project entering of Wes Wes. just And power. Really a for XXX about stated, appreciate into build which Puerto on Rico. initiating FEMA NFE as X for were stabilization this reminder, for a by X-year contracts, mission folks each that. duration as

to in built in in something. deployment is days. perspective, large-scale online, power, grid fastest Just history of NFE on Army power the this the which put it of the U.S. the saying it It's put XXX Corp, actually

in XX, of Puerto XX% out there. to particular, how Rico end further to which decided put I very it power part apply and it's PR this In infrastructure in power by put day. power be that thousands addition, are for solution, conclude. Puerto couple reliable, X not would every currently slides. To this that essential particular context, key customers the at other sold these power. grid, particular to think an a of is about hundreds we'll without piece On And will plants FEMA these in XX% of grid Rico supplied which NFE of importantly, of available applications, is contracts talk X -- a to March receiving in Most the the to of dates particular XX% the this though, had it, of plants

with service. entered In addition, disruption island-wide of into TBTU we an contract no XX

continue Rican power point the view Puerto plants operate without the people. These to from interruption. of So of

contracts change a end X if to in government does were or they the have a strategy. have contracts need, in our in because a change right a change early years, policy Importantly,

government obligation to payments certain has However, if the make contractors to happens, those contracts. who that the an performing under are

have have the going team, $XXX last amount contractor, The be they, under to that are extensive considered dollars to the to claim our specialize several is To a as of it $XXX which a an be including of are the been what the over package claim these in turn, We an formal this, the it Weston, is through that process billions to with type professionals a months submitted within own perspective, in our process of put Four circumstance. to this entitled together we who Corps. what to prime package which put submitted Army claim under settlement is we under we were rules, essentially remaining of who have that's in owed outside entitled under million, million, approximates in on process. this would contracts Corners there well of and

go is In terms which they steps, to next are known. and claim path people the as a of we through once we results process, well-worn update will settlement a will

the applied that, can over I'll the U.S. And how for about that deployed part us talk the perhaps use, Page note XX. fastest-growing IP applications, this of area reliability it concepts, to speed including its we is turn technology what of IP and Wes that I at fast to power showed it to the in though created this availability, that the we power infrastructure and more inside other be team we certain important for on of extensive created which project, of the utilization that think to use providing including

Thanks, Great. Brannen.

markets most found that of most these power the power and have type need power emerging needs are typically systems importantly, that So in significant are now.

is on or now, in needs what reflective solution that years some of or a their are. not the power them simply power So X giving actually X needs X turns of

it home hyperscaler there's need another market a users. As data much out, center that to closer has turns similar very

quite You of similar, wouldn't actually, that would similar. emerging think markets be scale they hyper users power for but center are and data

#XX. Step incredible needs formed these computing to of occurred providing out Amazon, XX focused data traditionally into to of a that we on solutions X of the availability, centers users site, growth needs, their Microsoft their on to companies site shows thousands company, one, To literally new latency has this modest that call centers end and mitigate hands have the of look are these is close a Page power. to #XX, lines as computing to meet Step of servers we they've identify own power but been applied steps data that utility the power in for locate issues. it the country those built these cloud built supply others. amounts of Page you Conde Power moved kind centers. been on initially. grid If city local outlined there to of subject have Page is

process data The can in that -- is redundancy just they install And data What it's the the And to These is construct X the those own Mexico local grids, power, to reliability, In power in now. Page years connections in power need redundancy. so need which steps schematic connection the the basic backup center done a to additional what provide X #XX. Rico then elsewhere. we addition their are and markets to to new and generation island Puerto the that that shows center X Brandon was increase same creating we terms, necessary formula, power consumers, is provide local backup as grid is to and actually followed. customers. described installed simple take we've require which we that power number struggle with their this designing. tenants for

a on the at Basically, backup percent system increasing of that on and the that number quick are XXX%. can turbines data Rico, and which our the XXX do And units reliability you extremely a Puerto efficient days turbines to see high, very very for both upper the an and shown that well middle make already reliability. it array shown XXs and is has left-hand take schematic, X in deploy for in over in ultimate you XX-plus necessary of side, system that path by upper you right-hand side. additional users achieve are you very, center and So are that way, the then so reliability, experience the then look you

Page utilizing by the major we're of power. constraints addressing meter this up XX, So business running. development all The on-site digital is behind the and infrastructure

site data is or either identify on center working as a a we're speak. to partner our X site, step with own we both and So on

preparing very Pennsylvania. to the particular, that and inexpensive permits are attractive Ohio, centers natural are in of we gas, their We file on a abundant population because as believe, site and own well in we Pennsylvania physical which very proximity terrific is to large combination. as

fast identify is the a smart on grid, So works. island X previous sites page achieve we get process which in permits in turn which step doing the of portfolio number right which of power to hand outlined is our X our suitable factors, are utilizes a we situations. same year. that and the number a that outlined, is this in I to and developed site and install now, have we Step next think for X XX, power on is tower redundancy Page state-of-the-art very

the we Wales large years have Pennsylvania, in site We which fired in ago.

permitted the a power in so compelling. redundancy this capacity the and have the located power to data the as tenser which provide of build a in to business we're provide where of economics grid that pipeline power XXX-acre Brazil, power meter site Shannon, have is which to on we the are very to is provide X,XXX The in We Ireland, behind there. Ireland well. can we megawatts plant to TBG large off site site gas a have provide intending for in potentially a part the the center And site then

It's into data flow, a a very with that creditworthy. an tenants cost of low is provide successful, very would for This for expectation this spend given days finance appealing. are center of period. cash very metrics if very, commitment certainty we likely X we'll to and can at it this the extended attributes growth business which as are us enter for to Our this shareholders long-term valuation industry, exciting allow the it's

Chris? to more a So lot that. come on

Wes. Thanks, everybody. Yes. Good morning,

to through for turn earnings #XX Let's and Slide a talk moment.

have Wes initiatives second from quarter. I'll the financial through Andrew, the the covered which of of and heard the results company, bulk you've financing As quickly the for walk

through QX, of $XXX Total we million we to million the from segment. $XX terminals had margin addition another operating operating from in sales. quarter, as margin Ships on our million associated with customers sales this to downstream $XX was And did LNG in

be a our it's margin the back in deferred $XXX to When QX. operating million. explained and is will but result that further in was you earnings, The deliveries $XX for XX-Q, for will million, line payment earnings So out this received occur total $XXX first segment $XXX EBITDA QX and deferred of quarter the gas compares a a QX. adjusted million of which million SG&A during

throughout the million of earnings associated volumes sales, XXXX. balance with these On and of EBITDA $XXX we locked in these record and commodity pricing

X driven decrease mentioned, volumes previously was contract. large power termination expected with in available the adjusted decrease FEMA is part to of by quarter-over-quarter in be made As the up sell. EBITDA FLNG to predominantly the This from

the result. and did occur those EBITDA the of in was million However, $XXX not QX

once $XXX around from quarterly you million. X, the expect FLNG a to of be quarter would volumes we EBITDA mentioned, Wes full As have adjusted

net on back Moving Slide a million share. change modest share the for #XX. a to $X.XX was adds which noncash loss diluted an to We charge a show per a $X income the only of $XX $X.XX net basis. adjusted There's or million GAAP impairment which income, on or quarter,

the EBITDA just Also, and we to $X.XX half operations the is collect and or when repeat of funds which claim in be as we received. up $X.XX $XX had will the add million first of XXXX, the net million income per you QX, period that if on income for So we've during past, share. of something a or adjusted in from it mentioned QX from share FEMA $XXX and recognized

Chance to wanted that, that call I our Q&A. for Puerto Jamaica, in is quarter, a of the to Rico, I'll team. With back the NFP's turn mention uptime Mexico, tenacity to the operating XX% Finally, assets over testament had reliability which for and

some Thanks, let's up Chris. the for Operator, if open lines would, you Q&A.

from Instructions] take We'll our Stifel. Ben first question Nolan with [Operator

Yes.

how the relates the question maybe to you've flexibility half It through you this first of on my back looks a million or in might thoughts Is of Can that? number? contract. the feel it So timing? come like you around EBITDA slip that for Any And event about to the $XXX year? related got maybe that XQ talk into next how year? you any

just sort Yes, the I'll Thank out lay Brannen. this as what for you probably of Ben, and And it demystify an this it. is use opportunity question. kind of to

the perspective fully settle you of As call, of early. that government counterparties in to to the that there And Under for particularly happens, they're and you you up. set you've to idea of as the I tried and cetera, that made. government from would performed, and the go is basically playbook original have they has Government When a that trying put terminate been respect through et years. kind said very the commitments, place rules various to a circumstances. the right the on had contract to was is true X investments with kind

mind what X to COD. kind complete work the keep of XXX and time of at I realize for was we megawatts build concept actually did think that power them in the key plants, is here

positioned key So concept. think, were I in turned functionally, the plant, we on the do effect power the time which commitments, we all investment at that a the things to other is, business the

So go time the contracts time the you this obviously, gross of them, finished, math, that kind when with of measured it X of in dollars. those have the aggregate under sort owing billions know amounts to from the through they stop you would it's of kind if you process

extensive an we've through our who dialogue with counterparty. So is Weston, gone

gear, also around particularly of through that and of that professionally make cetera. the zeroed for time like business the We who provided. and kind the we of fuel all then And kind infrastructure, in was have fact folks do and ships to our with logistics respect et ton work of it being with respect government. chain work, the to terminals really lots this did positioning on process, to And concepts. One we have X that is

you around kind up -- and through up items $XXX million. of line right the to those go rules, all add you entitlement when actually So adds

then their of them a and They, but name around, the turn, process. put on their We So as point. it. initial on settlement to enter send paper stayed puts on turn effectively, with then submitted up best take back thought a same is into you and it will of the of did and contract Corp for had what And on of put with little at they Weston. essentially, the in to numbers then takes processing. it that a was some thousands Army piece pages that, bit in

Now our counterparty. Weston is

be So then dealing the Army with. And the person Corps. will that's actually we'll ourselves that presumably, make for available we

because a on I no to keep just be you're about the there certainty that talking But around. a process would in think mind there As timing, is government that following.

We checklist. diligence over have dialogue X or forth information, providing is and on functionally off you're somebody's months last in for back been details the checking the doing what X going

make to ourselves talk process, it. that wants so about we'll available continue anybody as soon And as

belief we quarter. the settle I in will is this pretty is our to soon, get think to third and engagement goal try here our that

generation would [indiscernible] I that? in that should it. there appreciate anything all way online it thinking about stand gas in then with quarter. ADTBTU is Is second fourth should idomide there that absorb sticking a I Puerto the reaching in get generation, of And sufficient of be And power mean, the for Okay. that that could the Rico side the to threshold? anything incremental and is way of that power

Yes.

me -- because I'm it by answering just way start the let this it. ended So you in of going to way

the Rican X.X system actually right? about peaks about needs way it. That's of the X,XXX think Puerto megawatts is it strategy It think is this the to our to at gigawatts. power, because think way I

You need what they of about that. XXX megawatts and megawatts of need. Today, XXX operational don't you reserve, XXX megawatts have That's reserve. of generation reserve maintenance

be is what's through our we'll available converted, our be so process time. the we're those Migas that metrics including will other the functionally, additional will our power X or process, gens own with to PX that certainly projects over through either converted, getting ready hit doing, power, the plants plus And adding we plus plus made expectation happen mega is

often, words, almost that be to ready could done, to it. are comes more The becomes down is gas about and In generation, currently up we're that then going XX, regulatory through go think then to we displace inefficiency the process and that other what the about As cheaper are costs will fuel other in ever it go gas term. things it that hyper both likely of turned order in dispatch soon talk diesel to as order short today. There's convert on likely on once focused complete. the and paperwork to relates we it's running. have But and gens, as we on will in to turned mega merit because and it megawatts to merit a in we as that today, more that gas, XX are

you to our and numbers that, X And that when now to through is the model, went thing other -- the easy amplify is Ben page. so I business on

it including that, already Of Puerto of about Rico contract. upsize TBTUs. XXX in is the So Not XXX contracted. the right?

the happy on of supply coincidence contractor, Also we to same the illustrative Rican are into essentially through is margin just Puerto now. XX Brandon or that So right margin contracts. volumes to about that go those TBTUs, and the results about incremental order contracted sold those The is XX% you're go marketplace. as are a in you if there contracts buy fuel the have volumes margin actually the you the the incremental XXXX XXX% other so talking is out so XX%

The those about So market on $XX contracts the for price. $XX. LNG margin sale would today be is is about

incremental our serve or There's literally risk other. really long doesn't way goal the Obviously, matter. term no it customers. is X to So really

there. So we want serve to customers our

you needs, at is when beyond said, power far power have cheaper they're Brendan place. for the what cleaner They're As contract in of the significant. and island-wide power, and they scale and look the the size

fulfilling a again, the basically the significant is in amount feel we of have think products portfolio to market, same. that same markets upside beyond we that. of And ability contract it price point like material, is is that existing now, the right actually pricing then that the and the and the we grow we'll organic gas for utilize all simply the in So there's the our last

actually coincidence, in there's no whatsoever. exposure real financial happy that So

today. So sense. it's makes price an that If incredibly secure

Lewis And BTIG. with we'll take our next from Greg question

I Ben in some with comments. want guess just to I follow of up the

where financing thinking as are the the we're So to on think is commodity side? about we market up, today, about those our we kind And that coming of and spreads. hedging we how about thinking looking are around natural do? pricing gas, How we and realizing about there. How are just the something Is that exposure. update thinking our actively power with an

We essentially have no exposure.

TBTUs. portfolio we of XXX I As said, have a

demand in You right spreads have what hand top pipeline with a current that. net our deliver demand basically is current are behind And market TBTUs to on large XXX for to customers. -- of the

terms purely there's basically is really right? have we now. of LNG, of business, basis or We list make business our in our it portfolio a So a that we long-term spread a We on buy couple own. gas that right manufacture purchases

of average logistics is our The contract in offtake well to in excess of XX deliver it. have middle then simply We provide contracts. term and long-term the years. We

to spent $X to is spread have building this when really it we roughly billion get So business. point. a It's

showed $X guidance $X.X billion year. there. we between think the as across billion is business, XXX the year. that think number our billion, invested year. this with billion. $X.X of last TBTUs So the Notably, capital coming you which $X.X get made as for $X.X [indiscernible] to $X.X to whatsoever, additional that margin operating million is times the that going results, make $XXX roughly a possibly We amount plus dollars of is no we you tremendous billion to We ship is can, gets simple we're FEMA next

hand, in that. of what millions add of hundreds dollars contract Brazil, capacity in As payments long-term to Andrew incrementally, is said, additionally

have really has rock in essentially billion you highly diversified, with So in solid more CapEx sides business growing to no the now EBITDA $X.X it. is gun do spend which a it is for

Obviously, business now us. couple XX-year the So disappointing, had measuring of a It That's you're a a it of of across profile but happens. that's frame, quarter behind months. the and right business now. delay operates of that Unfortunately, time like works the well. this the X-month a are results

of so and company -- went got lower a we goal the incredibly that in longer productively incrementally just very prospects go doing debt the real have is term great to Andrew And we through really and there in cost good really, over and detail, debt have feel get we perform financial feel the We've time about is here and as like have, to footing less secure. term. the path to and short we'll it, we through for as the

the of a the years Okay. pricing. obviously, fast mean, that we country. opportunity look couple And or I power the is the opportunity in to on just and the auction opportunity? bit over talk should that an that of where just saw be we around area we thinking little next then I today your the that as bring about how solution PGM guess about Could Ohio. everyone Pennsylvania news -- and you

Yes.

think I got land. are has but nearby, the the and very in a large perhaps combination got is that It's just of and United It's gas. for world. which it perhaps long-term population not the actually very inexpensive States, market development, plentiful around center data best it centers

today index lighting is $X.XX. the today, gas So around

is is actual I or If did XX go megawatts, if it attractive. challenge of they a not thousands hundreds, megawatts or relatively going and in grid So it a for for apply of worth component really, X that typically problem. payment of that's need outlined. now they on. connection, a develop the what and actually get the saying, short energy for I move they're data The and real power utility in order, exactly They providers XX really center to

seen so then and at PJM you've backup. others, And the real utilities, what a is a and AEP

portfolio in IP, the power access have that it The And solutions that valuable. fast we as described, we also turbines. or process, Brannen to process. other X-year That's turbines is maybe a now that we valuable of to X-month not we is a plus warehouse, X-year or what's have, can incredibly simply have And business incredibly where needs a the X-year have. a what come they was a or that in. responsive X-month previously So a be is

knowledge have the this And we quickly. and you this. actually ability then need that to provide install so the to the feedstock and

developed that fiber. It's actually So site the phenomenal over site, on adjacency It's the from a It's closed is plant. the actually years. last [indiscernible] natural we down pipeline. to got process the basic several power large take have road a we just in a gas Talend

to they of power, provide you We redundancy mimic can user. it and and for permits, then of So turn gives of build that is prospective XXXX. There a the with our an it's center a simply that way we can so think, like power, in they attractiveness redundancy it power, XXXX. would it sense except allows data build we to no some to then power and grid on a get do out grid, the get island apply in

we In fact, the could or X country, time the around utilities that years line to power years think be of most X get or for the years. X

are many for there's ask answer business. their them, go your them is hyperscaler So of tenants, prospects great. The call favorite what their

the at go we systems that's we a opinion, at data Ask I prosecute that. best And This my Ohio they Pennsylvania opportunity And these do what lot powerful prospects the are very build people data very together bunch not and X and low-cost have. centers both of centers. data are supply are a What place that, combination. the There's provider the them this very, think need, great. for That's to from what to job expert of and a their is abundant to can what that's less basically and power that providing be centers. me-too of business. gas. What have do answers demand think a power that and power things terrific the fast getting is a with hyperscalers those reliable are lots are in they because decidedly is where the is point want That's now for we have that of and you we is. places

And from Tuohy with Brothers. take Shere question we'll Craig next our

you produced the growth that XXXX or of and how restricted do contracted better do or a XXXX. changing see in Nicaragua, downstream economically after internally in you worse XXXX, growth So see LNG the further by supply for

It's a Craig. really question, good

relatively LNG. at a prices height high. what is of to are As compared reasonably shortage you still conflict of the Ukrainian where still Russian but elevated, the were they know, modest still there That's

as point numbers other of places market there It's or that. in to online that XXXX, Henry forecasted year long is you significant good at Hub what of cetera. of plus a amount around supply the significant amount at in et in a marketplace higher LNG dramatically XXXX down in kind Those a you than So supply and is that's is next LNG roughly think $X.XX time. for $X.XX add be coming term. the move a so would come Venture be cost $XX, to And $XX.X $X to beyond. In proxy the Qatar has an the is $X maybe and if it that's that XXXX, Global of cost or buy $X world.

think a up bit this of window. so we're asset that first why we is there and running. getting focused a That's on So

think downstream. that, very So today, it's much is we a normalized XXXX, power the the XXXX, In market, more After more XXXX, a market. normalized valuable.

that in also spent but of allows Jamaica, demand. we list, growing. billion Rico, to developing our countries us -- are also Puerto America, access incremental $X downstream being that our the and largely that so those And portfolio Brazil top the markets Mexico, large Central are have

from feel of of there's lot supply the So customers we of We out to think years. a couple of like organic of next availability own our and over our take gas growth we've care do lot couple portfolio. years a to got a our come of there's

are numbers now, being So in actually contracted right feel several the rock And dollars are we it's with Brazil precision. are in another the solid. million detailed great in hand billion feel Andrew that are the hundred as increments $X.X like we and built

grow we point think this we are right where now a very we that So much $X.X this can and is billion chance business substantial is that. at

netbacks point, for your $X.X I Okay. And follow-up, to mean, term liquefaction. a less, as long contracted

value the that was basically that $X you over FLNG is the in Or to X we time? average implicit your $X.X way additive downstream should see I that some slides, in just think in of effective do $X.X for $X.X margin? netback included see presumed

basically it's own asset No, the -- producing is it's producing included the in gas market $X of of the our over the The think into we versus it benefit well billion. couple actually margin. Really, years is portfolio. next of over

market dollars benefit. you over XX just the production So versus billion couple it TBTUs in is over $X.X simply next it incremental look take if and the at of of

one, came taking think gives And being actually online to cost the another today in the the two, of $X way I replicate billion. of that $X.X is asset you number it. roughly just of higher of in prices and of, number just terms advantage benefit a combination business billion So the

asset that's margin and us the the of just way XXX business have, growth that is your exists the $X.X amount that's an at this in billion how impact production value, company, of has that before of, simply fact, way integrated our the baseload book times Brazil. -- this of our finances, we value. plus kind billion $X But the $XXX billion TBTUs over the well the we in model you're additional That's what on gives simple million, the So our an at this end cetera. et the $X.X business time, cetera, and that the we in big et the describe day, view as the of

not model. contracts the business a a very It's a bunch to the subjectivity things There's simplified wishing it's greatly about is really to that credit of greatly, no So lumpiness that offtake exposure long-term and There's with this. and of diversified business. no forecasting exists, to and really real it. we're straightforward hoping and core There's long-term it. little

next Tarek our from with take JPMorgan. we'll question And Hamid

I'd the and business And time? that about the are business? of love Kandi to think some capital for of how you how thinking you get financing about guys you sort color over more intensity do

because the tenants. very We basically high contracts of in offtakes it be the of very, very nature creditworthy to very, little terms are is think to capital intensity very going long

where just we'll of amount or sign and we capital-light capital think payments very So we -- a down modest for But transformers business the long or X think on it's a turbines payments. basically -- but it's it's think that, term, capital term, contracts. things highly business those little really down cash is like long nature it of equity we a flow-generative very given with

love give notes. I'd the is you can address any secondly, plan when 'XX on then you And Helpful. to starting just sort color senior and on of your 'XX

you the you've prepared in had hand said the think I commitment during a on remarks, 'XX.

address market look, not Andrew. that -- we near we'll obviously It's that's in extend Yes, the best be maturity to could it looking term. it's but We out we very need right. be, like feel and to the the

this Wes any the to Eden turn or additional time, back I at closing conference And remarks. for will

you. thanks, in near Well, speaking the you feedback, to in. Thank we appreciate dialing everyone, for and the to look and I calls all Great. the forward future.

concludes Thank this you. you Thank And today's participation. your call. for

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