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New Fortress Energy Announces First Quarter 2024 Results

New Fortress Energy Inc. (Nasdaq: NFE) (“NFE” or the “Company”) today reported its financial results for the first quarter of 2024.

Summary Highlights

  • Adjusted EBITDA(1) of $340 million in the first quarter of 2024
  • Net income of $57 million in the first quarter of 2024
  • Adjusted EPS(2) of $0.67 on a fully diluted basis in the first quarter of 2024
  • EPS of $0.26 on a fully diluted basis in the first quarter of 2024
  • Funds from Operations per share(3) of $0.92 on a fully diluted basis in the first quarter of 2024
  • Illustrative Adjusted EBITDA Goal(4) of ~$2 billion in the full year 2024

"This has been a tremendous quarter for the company with a number of significant milestones. We have completed the construction of our first FLNG unit and are currently commissioning the asset, with First LNG expected later this month and first full cargo expected in June. We commenced operations in Brazil at both of our LNG terminals and have 2.2 gigawatts of power under construction. Additionally, we completed the sale of the power plants that we developed for FEMA in Puerto Rico and concurrently won an 80 Tbtu island-wide gas contract, paving the way for significant expansion of our business in Puerto Rico. These milestones underscore our commitment to growth, sustainability, and long-term shareholder value," said Wes Edens, NFE chairman and chief executive.

Financial Highlights

We generated significant Funds from Operations per share(3) of $0.92 on a fully diluted basis in the first quarter of 2024, the majority of which was generated by contracted downstream assets.

At the same time, we expect a significant decrease in our Capex(5) compared to the prior year. We executed several transactions to further support our cash flows and balance sheet during the quarter, including the sale of non-core assets and issuance of 2029 Notes. Net proceeds from this issuance were mainly used to repay a portion of our 2025 Notes and Revolving Facility, as well as fund capital projects.

On May 7, 2024, NFE’s Board of Directors approved a dividend of $0.10 per share, with a record date of June 15, 2024 and a payment date of June 27, 2024.

Financial Detail

 

Three Months Ended

(in millions)

March 31, 2023

 

December 31, 2023

 

March 31, 2024

Revenues

$

579.1

 

$

758.4

 

$

690.3

Net income

$

151.6

 

$

214.9

 

$

56.7

Diluted EPS

$

0.71

 

$

1.06

 

$

0.26

Adjusted net income(6)

$

187.6

 

$

206.6

 

$

138.4

Adjusted EPS(2)

$

0.90

 

$

1.01

 

$

0.67

Terminals and Infrastructure Segment Operating Margin(7)

$

402.1

 

$

373.2

 

$

350.1

Ships Segment Operating Margin(7)

$

78.7

 

$

54.2

 

$

34.2

Total Segment Operating Margin

$

480.8

 

$

427.4

 

$

384.3

Adjusted EBITDA(1)

$

440.0

 

$

387.6

 

$

340.1

The Company continues to evaluate opportunities to refinance all or a portion of its 6.75% senior secured notes due September 2025.

Please refer to our Q1 2024 Investor Presentation (the “Presentation”) for further information about the following terms:

1)“Adjusted EBITDA,” see definition and reconciliation of this non-GAAP measure in the exhibits to this press release.

2) “Adjusted EPS” is not a measurement of financial performance under GAAP and should not be considered in isolation or as an alternative to any measure of performance or liquidity derived in accordance with GAAP. We calculate Adjusted EPS as Adjusted Net Income (Note 13 below) divided by the weighted average shares outstanding on a fully diluted basis for the period indicated. We believe this non-GAAP measure, as we have defined it, offers a useful supplemental view of the overall evaluation of the Company in a manner that is consistent with metrics used for management’s evaluation of the Company’s overall performance. Adjusted EPS does not have a standardized meaning, and different companies may use different definitions. Therefore, this term may not be necessarily comparable to similarly titled measures reported by other companies.

3) “Funds From Operations per share” means net income attributable to stockholders, computed in accordance with GAAP, excluding gains or losses from sales of assets, depreciation and amortization and impairment charges divided by the weighted average shares outstanding on a fully diluted basis. We compute FFO in accordance with our interpretation of standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which may not be comparable to FFO reported by REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do. We believe that FFO is helpful to investors as supplemental measures of the performance of our infrastructure investments. We believe that FFO can facilitate comparisons of operating performance between periods by excluding the effect of depreciation and amortization related to our infrastructure investments and impairment charges, which are based on historical costs and may be of limited relevance in evaluating current performance. Our definitions and calculations of these Non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other registrants and accordingly, may not be comparable. These Non-GAAP financial and operating measures do not represent cash generated from operating activities in accordance with GAAP, nor do they represent cash available to pay distributions and they should not be considered as an alternative to net income attributable to stockholders, determined in accordance with GAAP, as an indication of our financial performance, or to cash flows from operating activities, determined in accordance with GAAP, as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make cash distributions.

4) “Illustrative Adjusted EBITDA Goal” means our forward-looking goal for Adjusted EBITDA for the relevant period and is based on the "Illustrative Total Segment Operating Margin Goal" less illustrative Core SGA assumed to be at approximately $150mm for 2024 including the pro rata share of Core SG&A from unconsolidated entities. For the purpose of this presentation, we have assumed an average Total Segment Operating Margin between $5.38 and $43.49 per MMBtu for all downstream terminal economics, because we assume that (i) we purchase delivered gas at a weighted average of $6.20 in 2024, (ii) our volumes increase over time, and (iii) we will have costs related to shipping, logistics and regasification similar to our current operations because the liquefaction facility and related infrastructure and supply chain to deliver LNG from Pennsylvania or Fast LNG (“FLNG”) does not exist, and those costs will be distributed over the larger volumes. We assume all Brazil terminals and power plants are Operational and earning revenue through fuel sales and capacity charges or other fixed fees. For Vessels chartered to third parties, this measure reflects the revenue from those charters, capacity and tolling arrangements, and other fixed fees, less the cost to operate and maintain each ship, in each case based on contracted amounts for ship charters, capacity and tolling fees, and industry standard costs for operation and maintenance. We assume an average Total Segment Operating Margin of up to $147k per day per vessel. For Fast LNG, this measure reflects the difference between the delivered cost of open LNG and the delivered cost of open market LNG less Fast LNG production cost. These costs do not include expenses and income that are required by GAAP to be recorded on our financial statements, including the return of or return on capital expenditures for the relevant project, and selling, general and administrative costs. Our current cost of natural gas per MMBtu is higher than the cost we would need to achieve Illustrative Total Segment Operating Margin Goal, and the primary drivers for reducing these costs are the reduced costs of purchasing gas and the increased sales volumes, which result in lower fixed costs being spread over a larger number of MMBtus sold. References to volumes, percentages of such volumes and the Illustrative Total Segment Operating Margin Goal related to such volumes (i) are not based on the Company’s historical operating results, which are limited, and (ii) do not purport to be an actual representation of our future economics. Actual circumstances could differ materially from the assumptions, and actual performance and results could differ materially from, and there can be no assurance that they will reflect, our corporate goal.

5) For future periods, Capex or net Capex reflects management’s estimate of total expected cash payments in such period less cash proceeds received by the Company for related asset sales or direct asset financings. Investors are encouraged to review the related GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

6) “Adjusted Net Income” means Net Income attributable to stockholders as presented in the relevant Form 10-K or Form 10-Q for the relevant financial period as adjusted by non-cash impairment charges and gains or losses on disposal of our assets.

7) “Total Segment Operating Margin” is the total of our Terminals and Infrastructure Segment Operating Margin and Ships Segment Operating Margin. Our segment measure also excludes unrealized mark-to-market gains or losses on derivative instruments and certain contract acquisition costs.

Additional Information

For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investors section of New Fortress Energy’s website, www.newfortressenergy.com, and the Company’s most recent Annual Report on Form 10-K, which is available on the Company’s website. Nothing on our website is included or incorporated by reference herein.

Earnings Conference Call

Management will host a conference call on Wednesday, May 8, 2024 at 8:00 A.M. Eastern Time. The conference call may be accessed by dialing (888) 256-1007 (toll free from within the U.S.) or +1-323-701-0225 (from outside of the U.S.) fifteen minutes prior to the scheduled start of the call; please reference “NFE First Quarter 2024 Earnings Call” or conference code 9244538.

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newfortressenergy.com under the Investors section within “Events & Presentations.” Please allow time prior to the call to visit the site and download any necessary software required to listen to the internet broadcast. A replay of the conference call will be available at the same website location shortly after the conclusion of the live call.

About New Fortress Energy Inc.

New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to help address energy poverty and accelerate the world’s transition to reliable, affordable, and clean energy. The Company owns and operates natural gas and liquefied natural gas (LNG) infrastructure and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. Collectively, the Company’s assets and operations reinforce global energy security, enable economic growth, enhance environmental stewardship and transform local industries and communities around the world.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain statements and information that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than historical information are forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance or our projected business results. You can identify these forward-looking statements by the use of forward-looking words such as “expects,” “may,” “will,” “can,” “could,” “should,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “believes,” “schedules,” “progress,” “targets,” “budgets,” “outlook,” “trends,” “forecasts,” “projects,” “guidance,” “focus,” “on track,” “goals,” “objectives,” “strategies,” “opportunities,” “poised,” or the negative version of those words or other comparable words. Forward looking statements include: our expectation regarding raising external financing; the successful development, construction, completion, operation and/or deployment of facilities and the timing of first gas or first LNG, including our FLNG, Brazil, Nicaragua and Puerto Rico projects, on time, within budget and within the expected specifications, capacity and design; our expectation regarding increases in earnings and decreases in capital expenditures beginning in 2024, Illustrative Adjusted EPS and FFO Goals; our expectation regarding the common dividend; and future strategic plans; and all the information in the exhibits to this press release. These forward-looking statements are necessarily estimates based upon current information and involve a number of risks, uncertainties and other factors, many of which are outside of the Company’s control. Actual results or events may differ materially from the results anticipated in these forward-looking statements. Specific factors that could cause actual results to differ from those in the forward-looking statements include, but are not limited to: risks related to the development, construction, completion or commissioning schedule for the facilities; risks related to the operation and maintenance of our facilities and assets; failure of our third-party contractors, equipment manufacturers, suppliers and operators to perform their obligations for the development, construction and operation of our projects, vessels and assets; our ability to implement our business strategy; the risk that proposed transactions may not be completed in a timely manner or at all, including related to the Company’s proposed Asset Sales, including whether a market will develop for such assets and whether the Company will be able to agree to acceptable pricing and other terms offered by potential buyers; inability to successfully develop and implement our technological solutions, including our Fast LNG technology, or that we do not receive the benefits we expect from the Fast LNG technology; cyclical or other changes in the LNG and natural gas industries; competition in the energy industry; the receipt of permits, approvals and authorizations from governmental and regulatory agencies on a timely basis or at all; new or changes to existing governmental policies, laws, rules or regulations, or the administration thereof; failure to maintain sufficient working capital and to generate revenues, which could adversely affect our ability to fund our projects; adverse regional, national, or international economic conditions, adverse capital market conditions and adverse political developments; and the impact of public health crises, such as pandemics and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets. These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of the Company’s forward-looking statements. Other known or unpredictable factors could also have material adverse effects on future results. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no duty to update or revise any forward-looking statements, even though our situation may change in the future or we may become aware of new or updated information relating to such forward-looking statements. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in New Fortress Energy Inc.’s annual and quarterly reports filed with the Securities and Exchange Commission, which could cause its actual results to differ materially from those contained in any forward-looking statement.

Exhibits – Financial Statements

 

Condensed Consolidated Statements of Operations

For the three months ended December 31, 2023 and March 31, 2024

(Unaudited, in thousands of U.S. dollars, except share and per share amounts)

 
 

 

For the Three Months Ended

 

December 31, 2023

 

March 31, 2024

Revenues

 

 

 

Operating revenue

$

643,037

 

 

$

609,504

 

Vessel charter revenue

 

67,192

 

 

 

46,655

 

Other revenue

 

48,129

 

 

 

34,162

 

Total revenues

 

758,358

 

 

 

690,321

 

 

 

 

 

Operating expenses

 

 

 

Cost of sales (exclusive of depreciation and amortization shown separately below)

 

258,485

 

 

 

229,117

 

Vessel operating expenses

 

9,092

 

 

 

8,396

 

Operations and maintenance

 

61,938

 

 

 

68,548

 

Selling, general and administrative

 

48,056

 

 

 

70,754

 

Transaction and integration costs

 

2,159

 

 

 

1,371

 

Depreciation and amortization

 

62,164

 

 

 

50,491

 

Asset impairment expense

 

10,958

 

 

 

 

Loss (gain) on sale of assets, net

 

(21,534

)

 

 

77,140

 

Total operating expenses

 

431,318

 

 

 

505,817

 

Operating income

 

327,040

 

 

 

184,504

 

Interest expense

 

76,951

 

 

 

77,344

 

Other (income) expense, net

 

(13,586

)

 

 

19,112

 

Loss on extinguishment of debt, net

 

 

 

 

9,754

 

Income before income from equity method investments and income taxes

 

263,675

 

 

 

78,294

 

Income (loss) from equity method investments

 

(2,766

)

 

 

 

Tax provision

 

46,037

 

 

 

21,624

 

Net income

 

214,872

 

 

 

56,670

 

Net (income) loss attributable to non-controlling interest

 

2,335

 

 

 

(2,589

)

Net income attributable to stockholders

$

217,207

 

 

$

54,081

 

 

 

 

 

Net income per share - basic

$

1.06

 

 

$

0.26

 

Net income per share - diluted

$

1.06

 

 

$

0.26

 

 

 

 

 

Weighted average number of shares outstanding – basic

 

205,032,928

 

 

 

205,061,967

 

Weighted average number of shares outstanding – diluted

 

205,563,276

 

 

 

205,977,720

 

Adjusted EBITDA

For the three months ended March 31, 2024

(Unaudited, in thousands of U.S. dollars)

Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered in isolation or as an alternative to income from operations, net income, cash flow from operating activities or any other measure of performance or liquidity derived in accordance with GAAP. We believe this non-GAAP measure, as we have defined it, offers a useful supplemental view of the overall operation of our business in evaluating the effectiveness of our ongoing operating performance in a manner that is consistent with metrics used for management’s evaluation of our overall performance and to compensate employees. We believe that Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation, and amortization which vary substantially from company to company depending on capital structure, the method by which assets were acquired and depreciation policies. Further, we exclude certain items from our SG&A not otherwise indicative of ongoing operating performance.

We calculate Adjusted EBITDA as net income, plus transaction and integration costs, contract termination charges and loss on mitigations sales, depreciation and amortization, asset impairment expense, interest expense, net, other (income) expense, net, loss on extinguishment of debt, changes in fair value of non-hedge derivative instruments and contingent consideration, tax expense, and adjusting for certain items from our SG&A not otherwise indicative of ongoing operating performance, including non-cash share-based compensation and severance expense, non-capitalizable development expenses, cost to pursue new business opportunities and expenses associated with changes to our corporate structure, certain non-capitalizable contract acquisition costs plus our pro rata share of Adjusted EBITDA from certain unconsolidated entities, less the impact of equity in earnings (losses) of certain unconsolidated entities and gains from the sale of assets.

Adjusted EBITDA is mathematically equivalent to our Total Segment Operating Margin, as reported in the segment disclosures within our financial statements, minus Core SG&A, including our pro rata share of such expenses of certain unconsolidated entities. Core SG&A is defined as total SG&A adjusted for non-cash share-based compensation and severance expense, non-capitalizable development expenses, cost of exploring new business opportunities and expenses associated with changes to our corporate structure. Core SG&A excludes certain items from our SG&A not otherwise indicative of ongoing operating performance.

The principal limitation of this non-GAAP measure is that it excludes significant expenses and income that are required by GAAP to be recorded in our financial statements. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measure to our GAAP net income, and not to rely on any single financial measure to evaluate our business. Adjusted EBITDA does not have a standardized meaning, and different companies may use different Adjusted EBITDA definitions. Therefore, Adjusted EBITDA may not be necessarily comparable to similarly titled measures reported by other companies. Moreover, our definition of Adjusted EBITDA may not necessarily be the same as those we use for purposes of establishing covenant compliance under our financing agreements or for other purposes. Adjusted EBITDA should not be construed as alternatives to net income and diluted earnings per share attributable to New Fortress Energy, which are determined in accordance with GAAP.

The following table sets forth a reconciliation of net income to Adjusted EBITDA for the three months ended March 31, 2023, December 31, 2023 and March 31, 2024:

(in thousands)

 

Three Months

Ended

March 31,

2023

 

Three Months

Ended

December 31,

2023

 

Three Months

Ended

March 31,

2024

Total Segment Operating Margin

 

$

480,817

 

 

$

427,352

 

 

$

384,260

Less: Core SG&A (see definition above)

 

 

40,796

 

 

 

39,780

 

 

 

44,112

Less: Pro rata share Core SG&A from unconsolidated entities

 

 

14

 

 

 

 

 

 

Adjusted EBITDA (Non-GAAP)

 

$

440,007

 

 

$

387,572

 

 

$

340,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

151,566

 

 

$

214,872

 

 

$

56,670

Add: Interest expense

 

 

71,673

 

 

 

76,951

 

 

 

77,344

Add: Tax provision

 

 

28,960

 

 

 

46,037

 

 

 

21,624

Add: Depreciation and amortization

 

 

34,375

 

 

 

62,164

 

 

 

50,491

Add: Asset impairment expense

 

 

 

 

 

10,958

 

 

 

Add: SG&A items excluded from Core SG&A (see definition above)

 

 

11,342

 

 

 

8,276

 

 

 

26,642

Add: Transaction and integration costs

 

 

494

 

 

 

2,159

 

 

 

1,371

Add: Other (income) expense, net

 

 

25,005

 

 

 

(13,586

)

 

 

19,112

Add: Changes in fair value of non-hedge derivative instruments and contingent consideration

 

 

111,141

 

 

 

(1,491

)

 

 

Add: Loss on extinguishment of debt, net

 

 

 

 

 

 

 

 

9,754

Add: Loss (gain) on sale of assets, net

 

 

 

 

 

(21,534

)

 

 

77,140

Add: Pro rata share of Adjusted EBITDA from unconsolidated entities

 

 

15,431

 

 

 

 

 

 

Add: Loss (income) from equity method investments

 

 

(9,980

)

 

 

2,766

 

 

 

Adjusted EBITDA

 

$

440,007

 

 

$

387,572

 

 

$

340,148

Segment Operating Margin

(Unaudited, in thousands of U.S. dollars)

Performance of our two segments, Terminals and Infrastructure and Ships, is evaluated based on Segment Operating Margin. Segment Operating Margin reconciles to Consolidated Segment Operating Margin as reflected below, which is a non-GAAP measure. We define Consolidated Segment Operating Margin as GAAP net income, adjusted for selling, general and administrative expense, transaction and integration costs, contract termination charges and loss on mitigation sales, depreciation and amortization, asset impairment expense, gains on asset sales, interest expense, other (income) expense, loss on extinguishment of debt, net, (income) loss from equity method investments and tax (benefit) expense. Consolidated Segment Operating Margin is mathematically equivalent to Revenue minus Cost of sales minus Operations and maintenance minus Vessel operating expenses, each as reported in our financial statements.

Three Months Ended March 31, 2024

(in thousands of $)

Terminals and

Infrastructure ⁽¹⁾

 

Ships

 

Total

Segment

 

Consolidation

and

Other

 

Consolidated

Segment Operating Margin

$

350,072

 

$

34,188

 

$

384,260

 

$

 

$

384,260

Less:

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

 

 

 

 

 

 

 

70,754

Transaction and integration costs

 

 

 

 

 

 

 

 

 

1,371

Depreciation and amortization

 

 

 

 

 

 

 

 

 

50,491

Interest expense

 

 

 

 

 

 

 

 

 

77,344

Other expense, net

 

 

 

 

 

 

 

 

 

19,112

Loss on sale of assets, net

 

 

 

 

 

 

 

 

 

77,140

Loss on extinguishment of debt, net

 

 

 

 

 

 

 

 

 

9,754

Tax provision

 

 

 

 

 

 

 

 

 

21,624

Net income

 

 

 

 

 

 

 

 

$

56,670

Three Months Ended December 31, 2023

(in thousands of $)

Terminals and

Infrastructure ⁽¹⁾

 

Ships

 

Total

Segment

 

Consolidation

and

Other ⁽¹⁾

 

Consolidated

Segment Operating Margin

$

373,154

 

$

54,198

 

$

427,352

 

$

1,491

 

$

428,843

 

Less:

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

 

 

 

 

 

 

 

48,056

 

Transaction and integration costs

 

 

 

 

 

 

 

 

 

2,159

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

62,164

 

Asset impairment expense

 

 

 

 

 

 

 

 

 

10,958

 

Gain on sale of assets, net

 

 

 

 

 

 

 

 

 

(21,534

)

Interest expense

 

 

 

 

 

 

 

 

 

76,951

 

Other (income), net

 

 

 

 

 

 

 

 

 

(13,586

)

Loss from equity method investments

 

 

 

 

 

 

 

 

 

2,766

 

Tax provision

 

 

 

 

 

 

 

 

 

46,037

 

Net income

 

 

 

 

 

 

 

 

 

214,872

 

(1)

Consolidation and Other also adjusts for the exclusion of the unrealized mark-to-market gain or loss on derivative instruments in our segment measure.

Three Months Ended March 31, 2023

(in thousands of $)

Terminals and

Infrastructure

 

Ships ⁽1

 

Total

Segment

 

Consolidation

and

Other ⁽2

 

Consolidated

Segment Operating Margin

$

402,139

 

$

78,678

 

$

480,817

 

$

(126,586

)

 

$

354,231

 

Less:

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

 

 

 

 

 

 

 

52,138

 

Transaction and integration costs

 

 

 

 

 

 

 

 

 

494

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

34,375

 

Interest expense

 

 

 

 

 

 

 

 

 

71,673

 

Other expense, net

 

 

 

 

 

 

 

 

 

25,005

 

(Income) from equity method investments

 

 

 

 

 

 

 

 

 

(9,980

)

Tax provision

 

 

 

 

 

 

 

 

 

28,960

 

Net income

 

 

 

 

 

 

 

 

$

151,566

 

(1)

Ships includes our effective share of revenues, expenses and operating margin attributable to our 50% ownership of Hilli LLC, prior to the disposition of this investment.

(2)

Consolidation and Other adjusts for the inclusion of the effective share of revenues, expenses and operating margin attributable to 50% ownership of Hilli LLC in our segment measure and exclusion of the unrealized mark-to-market gain or loss on derivative instruments.

Adjusted Net Income and Adjusted Earnings per Share

(Unaudited, in thousands of U.S. dollars, except share and per share amounts)

The following table sets forth a reconciliation between net income attributable to stockholders and earnings per share adjusted for non-cash impairment charges and losses on disposals of assets.

 

 

Three months ended

March 31, 2023

 

Three months ended

December 31, 2023

 

Three months ended

March 31, 2024

Net income attributable to stockholders

 

$

150,206

 

$

217,207

 

 

$

54,081

Non-cash impairment charges, net of tax

 

 

 

 

10,958

 

 

 

Loss (gain) on sale of assets

 

 

 

 

(21,534

)

 

 

77,140

Loss on disposal of equity method investment

 

 

37,401

 

 

 

 

 

7,222

Adjusted net income

 

$

187,607

 

$

206,631

 

 

$

138,443

 

 

 

 

 

 

 

Weighted-average shares outstanding - diluted

 

 

209,325,619

 

 

205,563,276

 

 

 

205,977,720

 

 

 

 

 

 

 

Adjusted earnings per share

 

$

0.90

 

$

1.01

 

 

$

0.67

Funds from Operations

For the three months ended March 31, 2024

(Unaudited, in thousands of U.S. dollars, except share and per share amounts)

The following table sets forth a reconciliation between net income attributable to stockholders and Funds from operations ("FFO") and FFO per share. We have defined FFO as net income attributable to stockholders, adjusted by depreciation and amortization, gains or losses from the sale of assets and impairment charges, each as reported in our financial statements.

 

Three months ended

March 31, 2023

Three months ended

December 31, 2023

Three months ended

March 31, 2024

Net income attributable to stockholders

$

150,206

$

217,207

 

$

54,081

Depreciation/amortization

 

34,375

 

62,164

 

 

50,491

Non-cash impairment charges, net of tax

 

 

10,958

 

 

Loss (gain) on sale of assets

 

 

(21,534

)

 

77,140

Loss on disposal of equity method investment

 

37,401

 

 

 

7,222

Funds from operations

$

221,982

$

268,795

 

$

188,934

Weighted-average shares outstanding - diluted

 

209,325,619

 

205,563,276

 

 

205,977,720

Funds from operations / share

$

1.06

$

1.31

 

$

0.92

Condensed Consolidated Balance Sheets

As of March 31, 2024 and December 31, 2023

(Unaudited, in thousands of U.S. dollars, except share amounts)

 

March 31, 2024

 

December 31, 2023

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

143,457

 

$

155,414

Restricted cash

 

171,476

 

 

155,400

Receivables, net of allowances of $12,828 and $1,158, respectively

 

335,313

 

 

342,371

Inventory

 

186,584

 

 

113,684

Prepaid expenses and other current assets, net

 

201,953

 

 

213,104

Total current assets

 

1,038,783

 

 

979,973

 

 

 

 

Construction in progress

 

5,797,511

 

 

5,348,294

Property, plant and equipment, net

 

2,175,882

 

 

2,481,415

Equity method investments

 

 

 

137,793

Right-of-use assets

 

726,391

 

 

588,385

Intangible assets, net

 

211,854

 

 

51,815

Goodwill

 

776,760

 

 

776,760

Deferred tax assets, net

 

27,549

 

 

9,907

Other non-current assets, net

 

125,632

 

 

126,903

Total assets

$

10,880,362

 

$

10,501,245

 

 

 

 

Liabilities

 

 

 

Current liabilities

 

 

 

Current portion of long-term debt and short-term borrowings

$

291,518

 

$

292,625

Accounts payable

 

524,535

 

 

549,489

Accrued liabilities

 

417,612

 

 

471,675

Current lease liabilities

 

147,793

 

 

164,548

Other current liabilities

 

185,415

 

 

227,951

Total current liabilities

 

1,566,873

 

 

1,706,288

 

 

 

 

Long-term debt

 

6,734,860

 

 

6,510,523

Non-current lease liabilities

 

552,619

 

 

406,494

Deferred tax liabilities, net

 

93,083

 

 

44,444

Other long-term liabilities

 

36,645

 

 

55,627

Total liabilities

 

8,984,080

 

 

8,723,376

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Series A convertible preferred stock, $0.01 par value, 96,746 shares authorized, issued and outstanding as of March 31, 2024 (0 as of December 31, 2023); aggregate liquidation preference of $96,746 and $0 at March 31, 2024 and December 31, 2023

 

96,655

 

 

 

 

 

 

Stockholders’ equity

 

 

 

Class A common stock, $0.01 par value, 750 million shares authorized, 205.0 million issued and outstanding as of March 31, 2024; 205.0 million issued and outstanding as of December 31, 2023

 

2,050

 

 

2,050

Additional paid-in capital

 

1,043,652

 

 

1,038,530

Retained earnings

 

561,422

 

 

527,986

Accumulated other comprehensive income

 

64,179

 

 

71,528

Total stockholders' equity attributable to NFE

 

1,671,303

 

 

1,640,094

Non-controlling interest

 

128,324

 

 

137,775

Total stockholders' equity

 

1,799,627

 

 

1,777,869

Total liabilities, convertible preferred stock and stockholders’ equity

$

10,880,362

 

$

10,501,245

Condensed Consolidated Statements of Operations

For the three months ended March 31, 2024 and 2023

(Unaudited, in thousands of U.S. dollars, except share and per share amounts)

 

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

Revenues

 

 

 

Operating revenue

$

609,504

 

 

$

501,688

 

Vessel charter revenue

 

46,655

 

 

 

76,524

 

Other revenue

 

34,162

 

 

 

919

 

Total revenues

 

690,321

 

 

 

579,131

 

 

 

 

 

Operating expenses

 

 

 

Cost of sales (exclusive of depreciation and amortization shown separately below)

 

229,117

 

 

 

184,938

 

Vessel operating expenses

 

8,396

 

 

 

13,291

 

Operations and maintenance

 

68,548

 

 

 

26,671

 

Selling, general and administrative

 

70,754

 

 

 

52,138

 

Transaction and integration costs

 

1,371

 

 

 

494

 

Depreciation and amortization

 

50,491

 

 

 

34,375

 

Loss on sale of assets, net

 

77,140

 

 

 

 

Total operating expenses

 

505,817

 

 

 

311,907

 

Operating income

 

184,504

 

 

 

267,224

 

Interest expense

 

77,344

 

 

 

71,673

 

Other expense, net

 

19,112

 

 

 

25,005

 

Loss on extinguishment of debt, net

 

9,754

 

 

 

 

Income before income from equity method investments and income taxes

 

78,294

 

 

 

170,546

 

Income from equity method investments

 

 

 

 

9,980

 

Tax provision

 

21,624

 

 

 

28,960

 

Net income

 

56,670

 

 

 

151,566

 

Net (income) attributable to non-controlling interest

 

(2,589

)

 

 

(1,360

)

Net income attributable to stockholders

$

54,081

 

 

$

150,206

 

 

 

 

 

Net income per share – basic

$

0.26

 

 

$

0.72

 

Net income per share – diluted

$

0.26

 

 

$

0.71

 

 

 

 

 

Weighted average number of shares outstanding – basic

 

205,061,967

 

 

 

208,707,385

 

Weighted average number of shares outstanding – diluted

 

205,977,720

 

 

 

209,325,619

 

Condensed Consolidated Statements of Cash Flows

For the three months ended March 31, 2024 and 2023

(Unaudited, in thousands of U.S. dollars)

 

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

Cash flows from operating activities

 

 

 

Net income

$

56,670

 

 

$

151,566

 

Adjustments for:

 

 

 

Depreciation and amortization

 

50,491

 

 

 

34,608

 

Deferred taxes

 

(6,822

)

 

 

 

Share-based compensation

 

5,248

 

 

 

 

Movement in credit loss allowances

 

11,588

 

 

 

(167

)

Loss on asset sales

 

77,140

 

 

 

 

Loss on extinguishment of debt

 

9,754

 

 

 

 

(Earnings) recognized from vessels chartered to third parties transferred to Energos

 

(23,952

)

 

 

(31,954

)

Loss on the disposal of equity method investment

 

7,222

 

 

 

37,401

 

Other

 

12,697

 

 

 

(2,743

)

Changes in operating assets and liabilities:

 

 

 

(Increase) decrease in receivables

 

(8,656

)

 

 

28,136

 

(Increase) in inventories

 

(85,539

)

 

 

(2,271

)

(Increase) in other assets

 

(19,394

)

 

 

(27,966

)

Decrease in right-of-use assets

 

57,190

 

 

 

13,336

 

Increase (decrease) increase in accounts payable/accrued liabilities

 

63,208

 

 

 

(43,400

)

(Decrease) in amounts due to affiliates

 

(3,479

)

 

 

(2,519

)

(Decrease) in lease liabilities

 

(62,090

)

 

 

(9,709

)

(Decrease) increase in other liabilities

 

(71,226

)

 

 

55,822

 

Net cash provided by operating activities

 

70,050

 

 

 

200,140

 

 

 

 

 

Cash flows from investing activities

 

 

 

Capital expenditures

 

(683,449

)

 

 

(563,268

)

Sale of equity method investment

 

136,365

 

 

 

100,000

 

Asset sales

 

328,999

 

 

 

 

Other investing activities

 

(1,695

)

 

 

 

Net cash used in investing activities

 

(219,780

)

 

 

(463,268

)

 

 

 

 

Cash flows from financing activities

 

 

 

Proceeds from borrowings of debt

 

2,164,687

 

 

 

700,000

 

Payment of deferred financing costs

 

(25,781

)

 

 

(5,903

)

Repayment of debt

 

(1,944,044

)

 

 

(1,080

)

Payment of dividends

 

(32,326

)

 

 

(649,796

)

Other financing activities

 

(4,919

)

 

 

 

Net cash provided by financing activities

 

157,617

 

 

 

43,221

 

Impact of changes in foreign exchange rates on cash and cash equivalents

 

(3,768

)

 

 

948

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

4,119

 

 

 

(218,959

)

Cash, cash equivalents and restricted cash – beginning of period

 

310,814

 

 

 

855,083

 

Cash, cash equivalents and restricted cash – end of period

$

314,933

 

 

$

636,124

 

 

Contacts

Investor Relations:

Chance Pipitone

ir@newfortressenergy.com

Media Relations:

Ben Porritt

press@newfortressenergy.com

(516) 268-7403

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