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January 2021 Investor Update – Fortress Energy, Inc.

Fortress Energy, Inc. · Jan 21, 2021 · 34 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. January 2021 Investor Update – Fortress Energy, Inc. – slide 1
    January 21, 2021 Investor Update
  2. January 2021 Investor Update – Fortress Energy, Inc. – slide 2
    1. Executive Summary 2. FAQ: How will we pay for this 3. FAQ: How does this fit with capital-light business model 4. FAQ: Why Brazil 5. FAQ: Why buy ships vs. leasing 6. FAQ: How does FLNG fit into business model 7.…
  3. January 2021 Investor Update – Fortress Energy, Inc. – slide 3
    Executive Summary Announced 3 separate transactions for 5.1bn equivalent enterprise value(1) 1 Acquiring Hygo Energy Transition Ltd. Private LNG-to-power business Consideration 3 terminals & power plants in Brazil(2) Includes…
  4. January 2021 Investor Update – Fortress Energy, Inc. – slide 4
    Executive Summary Our business is simple We sell power & natural gas in developing countries around the world by providing capital, infrastructure, assets & expertise Objective 1: Democratize access to power Objective 2: Provide…
  5. January 2021 Investor Update – Fortress Energy, Inc. – slide 5
    Executive Summary Growing from 5 to 9 terminals(7) We reach new markets via terminals Our goal: 15-20 terminals globally by YE 2021, focused on largest & fastest-growing markets Montego Bay, Jamaica La Paz, Mexico San Juan,…
  6. January 2021 Investor Update – Fortress Energy, Inc. – slide 6
    Executive Summary Not all terminals are created equal High-volume Brazil terminals are expected to dramatically increase our addressable market(10) Terminals Pre-Acquisition Acquisition Terminals (GPD) Current Max. (GPD) Current…
  7. January 2021 Investor Update – Fortress Energy, Inc. – slide 7
    Executive Summary NFE has become the premier global gas-to-power company in the world(12) High-quality assets strategically located in target geographies(11) Terminal Power plant FSRU FLNG + 4x LNGC Key target…
  8. January 2021 Investor Update – Fortress Energy, Inc. – slide 8
    Executive Summary Brazil terminals offer significant op. margin upside with limited project costs(13) Capex per Terminal Potential Op. Margin (mm/year) Terminal Project Power Project Terminal Costs Costs Total potential market is…
  9. January 2021 Investor Update – Fortress Energy, Inc. – slide 9
    Executive Summary New portfolio + pipeline targeted to generate 1.6bn+ Illustrative Op. Margin(14) Combined company targets Illustrative Op. Margin of 895mm at closing, almost doubling once pipeline projects come online Hygo + Suape…
  10. January 2021 Investor Update – Fortress Energy, Inc. – slide 10
    Executive Summary Expanded footprint positions us to lead global carbon-free power transition We aim to replace natural gas with emission-free hydrogen across our global portfolio We already to Opportunity serve the sectors most…
  11. January 2021 Investor Update – Fortress Energy, Inc. – slide 11
    Executive Summary Today we are addressing some FAQs about these transactions 1 2 3 4 5 How will How does Why Why buy How does we pay for this fit into Brazil ships vs. the FLNG this our capital- lease ships fit into our light…
  12. January 2021 Investor Update – Fortress Energy, Inc. – slide 12
    1. Executive Summary 2. FAQ: How will we pay for this 3. FAQ: How does this fit with capital-light business model 4. FAQ: Why Brazil 5. FAQ: Why buy ships vs. leasing 6. FAQ: How does FLNG fit into business model 7.…
  13. January 2021 Investor Update – Fortress Energy, Inc. – slide 13
    How will we pay for this Multiple sources of funds in excess of needs(17) Committed expenditures can be funded by a combination of: 580mm cash for Hygo 600mm cash + 300-400mm committed project costs 200mm revolver 880-980mm…
  14. January 2021 Investor Update – Fortress Energy, Inc. – slide 14
    1. Executive Summary 2. FAQ: How will we pay for this 3. FAQ: How does this fit with capital-light business model 4. FAQ: Why Brazil 5. FAQ: Why buy ships vs. leasing 6. FAQ: How does FLNG fit into business model 7.…
  15. January 2021 Investor Update – Fortress Energy, Inc. – slide 15
    How does this fit with capital-light business model Capital-light growth model: recycle assets & redeploy capital to high-growth terminals Future growth expected to be funded by cash flow from operations and recycling of stable…
  16. January 2021 Investor Update – Fortress Energy, Inc. – slide 16
    1. Executive Summary 2. FAQ: How will we pay for this 3. FAQ: How does this fit with capital-light business model 4. FAQ: Why Brazil 5. FAQ: Why buy ships vs. leasing 6. FAQ: How does FLNG fit into business model 7.…
  17. January 2021 Investor Update – Fortress Energy, Inc. – slide 17
    Why Brazil Brazils emerging gas market presents huge opportunity Brazil is a unique opportunity: 35 MTPA natural gas market just beginning to emerge from Petrobras monopoly Why Brazil Why now Large country with significant &…
  18. January 2021 Investor Update – Fortress Energy, Inc. – slide 18
    Why Brazil Terminals strategically located to take advantage of market opportunities Large market opportunity Pipeline proximity allows Opportunity to grow gas demand (45mm GPD market) access to most of country by replacing HFO &…
  19. January 2021 Investor Update – Fortress Energy, Inc. – slide 19
    1. Executive Summary 2. FAQ: How will we pay for this 3. FAQ: How does this fit with capital-light business model 4. FAQ: Why Brazil 5. FAQ: Why buy ships vs. leasing 6. FAQ: How does FLNG fit into business model 7.…
  20. January 2021 Investor Update – Fortress Energy, Inc. – slide 20
    Why buy ships vs. leasing Buying ships is better than leasing for long-term use Example calculation: Golar Winter Own cost(25) (annual) Savings Lease cost(24) 120mm value amort. 6mm (20-yr) (annual) 7mm/yr Op. & maintenance…
  21. January 2021 Investor Update – Fortress Energy, Inc. – slide 21
    Why buy ships vs. leasing Acquisitions significantly de-risk our global shipping needs Our total portfolio needs(21),(22) Large scale vessels acquired 8 FSRU 4 FSU 12 Vessels 9 FSRU 4 FSU 13 Vessels Asset Vessel Need Vessel…
  22. January 2021 Investor Update – Fortress Energy, Inc. – slide 22
    1. Executive Summary 2. FAQ: How will we pay for this 3. FAQ: How does this fit with capital-light business model 4. FAQ: Why Brazil 5. FAQ: Why buy ships vs. leasing 6. FAQ: How does FLNG fit into business model 7.…
  23. January 2021 Investor Update – Fortress Energy, Inc. – slide 23
    How does FLNG fit into business model FLNG is the future of liquefaction FLNG is what FSRUs were 20 years agowe are investing at the beginning of an industry-disruptive future (Operational) Acquisition will give us FLNG…
  24. January 2021 Investor Update – Fortress Energy, Inc. – slide 24
    How does FLNG fit into business model FLNG could allow our entire system to be supplied with low-cost LNG FLNG manufactures LNG for 3/MMBtu Step 1: Own the terminals Step 2: Build our own Step 3: Supply system with FLNG(27) 3…
  25. January 2021 Investor Update – Fortress Energy, Inc. – slide 25
    1. Executive Summary 2. FAQ: How will we pay for this 3. FAQ: How does this fit with capital-light business model 4. FAQ: Why Brazil 5. FAQ: Why buy ships vs. leasing 6. FAQ: How does FLNG fit into business model 7.…
  26. January 2021 Investor Update – Fortress Energy, Inc. – slide 26
    Appendix Hygo: Sources & Uses 3.1bn Enterprise Value Hygo: Total acquisition cost of 2.18bn NFE to issue 950mm stock and pay 50mm cash to GLNG for 50% stake in Hygo NFE to pay cash to Stonepeak for 180mm preferred equity + 350mm…
  27. January 2021 Investor Update – Fortress Energy, Inc. – slide 27
    Appendix GMLP: Sources & Uses 1.9bn Enterprise Value GMLP: Total acquisition cost of 1.4bn NFE to issue 1.4bn of corporate debt to pay for GMLP (516mm ship facility + 380mm NOR bonds + 197mm Eskimo SLB + 59mm Nu. Regas Satu SLB +…
  28. January 2021 Investor Update – Fortress Energy, Inc. – slide 28
    Appendix Post-closing asset overview 9 terminals 7 power plants Montego Bay, Jamaica La Paz, Mexico Jamalco, Jamaica Sergipe, Brazil Operational Under development 150MW 1.5GW Operational Operational Old Harbour, Jamaica Sergipe,…
  29. January 2021 Investor Update – Fortress Energy, Inc. – slide 29
    Disclaimers IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the…
  30. January 2021 Investor Update – Fortress Energy, Inc. – slide 30
    Endnotes Certain of the below Endnotes include forward-looking statements. Please see our note regarding Forward-Looking Statements on the slide titled Disclaimers of this Investor Update (the Presentation). Please evaluate this…
  31. January 2021 Investor Update – Fortress Energy, Inc. – slide 31
    Endnotes (9) Under Construction means In Construction, Under Construction, Development, In Development or similar statuses means that we have taken steps and invested money to develop a facility, including procuring land rights and…
  32. January 2021 Investor Update – Fortress Energy, Inc. – slide 32
    Endnotes (14) We define Operating Margin as the sum of (i) Net income / (loss), (ii) Depreciation and amortization, (iii) Interest expense, (iv) Other (income) expense, net (v) Contract termination charges and Loss on Mitigation Sales,…
  33. January 2021 Investor Update – Fortress Energy, Inc. – slide 33
    Endnotes (15) Project Costs means managements internal estimates of the costs of development and construction of projects from current state through commercial operations. These costs do not include all costs included in generally…
  34. January 2021 Investor Update – Fortress Energy, Inc. – slide 34
    Endnotes (22) This number of FSRUs includes the conversion of the Golar Penguin and the Golar Celsius, currently owned by Hygo, from LNGCs to FSRUs. There can be no assurance that this conversion will be successful on a particular…

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