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Q4 2020 Investor Presentation – Fortress Energy, Inc.

Fortress Energy, Inc. · Mar 1, 2021 · 48 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. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 1
    March 2021 Q4 2020 Investor Presentation
  2. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 2
    Delivering Positive Energy Worldwide Our Vision We want to light the world. Billions of people around the planet lack access to affordable power. Electricity should not be a luxury good. Our Mission Our mission is to provide…
  3. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 3
    1. Executive Summary 2. Business Update 3. Operating Performance 4. Fast LNG 5. Hydrogen Update 6. Financing Update 7. Appendix 3
  4. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 4
    Executive Summary Since last quarter, weve had several major developments Powerful organic growth; major acquisitions of terminals & ships portfolios; FLNG IP Significant organic terminal growth to 9 terminals 1 Finalizing…
  5. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 5
    Executive Summary Were expanding rapidly & executing on our goals March 2020 Today 1 Year+ From Now Expanding 5 Terminals 9 Terminals 11 Terminals our terminal 2 operating (Montego Bay, Old Harbour) 4 operating (Montego Bay, Old…
  6. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 6
    1. Executive Summary 2. Business Update 3. Operating Performance 4. Fast LNG 5. Hydrogen Update 6. Financing Update 7. Appendix 6
  7. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 7
    Business Update 3 We have become the premier global gas-to-power company in the world High-quality assets in strategic, high-demand geographies lead to immense growth Shannon, Jamalco CHP, Ireland Jamaica Montego Bay,…
  8. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 8
    Business Update We have expanded to 9 committed terminals Operational In construction In development Montego Bay, La Paz, Suape, Jamaica Terminal Mexico Terminal Brazil Terminal(3) 135MW power plant 288MW power plant Old Harbour,…
  9. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 9
    Business Update Expect 2 additional terminals FID in next 90-120 days 2 developments increase our footprint to 11 terminals(13) Santa Catarina, Brazil Shannon, Ireland Offshore terminal in southeast Brazil with Large scale LNG…
  10. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 10
    Business Update Brazil has a globally unique volume and margin opportunity First mover advantage in 35 MTPA natural gas market just beginning to emerge from state-owned monopoly Why Brazil Why now Large country with significant &…
  11. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 11
    Business Update Terminals strategically located to take advantage of market opportunities Large market opportunity Strategic terminal locations Opportunity to grow gas demand (45mm GPD market) by replacing HFO & diesel 1 Barcarena…
  12. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 12
    1. Executive Summary 2. Business Update 3. Operating Performance 4. Fast LNG 5. Hydrogen Update 6. Financing Update 7. Appendix 12
  13. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 13
    Operating Performance Terminal growth results in significant increase in gas and power volumes(15) Ireland 20mm 19mm GPD 15mm Suape, Barcarena, Santa Catarina 12mm GPD GPD 10mm +Suape power, Sergipe power, SE Asia…
  14. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 14
    Operating Performance In addition to Hygo, we also recently agreed to acquire Golar MLP Generates 300mm operating margin & solves long-term ship and logistics needs(16) Over time, acquired vessels In interim, ships add stable…
  15. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 15
    Operating Performance Current terminals + near-term FID generate significant Illustrative Op. Margin Committed + Pipeline Run-Rate 3,000 2,632 2,000 1,200 Committed 832 Run-Rate 1,000 125 - FY 19 FY 20 YE 21 22+ Operational +…
  16. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 16
    Operating Performance Financial performance Operating Results Financial Metrics Stabilized volumes in operating terminals Q4 Q3 Q4 QoQ 2019 2020 2020 Change Normalized for maintenance outages, we were in line with expectations…
  17. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 17
    1. Executive Summary 2. Business Update 3. Operating Performance 4. Fast LNG 5. Hydrogen Update 6. Financing Update 7. Appendix 17
  18. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 18
    Fast LNG Gas supply is our biggest risk & our biggest opportunity Our committed system requires 5.1mm GPD or 3.0 MTPA of natural gas in the near-term 5.1 Committed run-rate gas GPD (mm) 3.3 demand is 5.1mm GPD (3 MTPA)…
  19. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 19
    Fast LNG Index-priced gas supply is also one of our customers biggest risks LNG available in the market is typically indexed to Henry Hub natural gas, Brent crude oil or JKM Brent crude oil prices have nearly doubled in last year…
  20. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 20
    Fast LNG Fast LNG at-a-glance Were ready to declare FID on our own Fast LNG thats cheaper and faster to build (24) (25) Our Fast LNG solution is cheaper and faster to build Floating LNG (FLNG) cryogenic flexible ship to ship…
  21. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 21
    Fast LNG Fast LNG: best-in-class counterparties Liquefaction & Turbine & Installation & Jack Up Rigs & Gas Treatment Module Compressor Supply Owners Engineering Flexible Hoses Engineering, Procurement & Fabrication 21
  22. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 22
    Fast LNG Fast LNG target locations NFE is targeting locations with existing infrastructure and significant access to underutilized natural gas North Sea 7 Bcf/d of gas production throughout the region Pacific Basin 17 Bcf/d…
  23. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 23
    Fast LNG Fast LNG changes everything Each Fast LNG installation aims to increase our annual operating margin by 150mm Market cost of LNG (/MMBtu)(1) 5.50 150mm = Fast LNG Cost of LNG (/MMBtu) (-) 3.50 potential Savings…
  24. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 24
    1. Executive Summary 2. Business Update 3. Operating Performance 4. Fast LNG 5. Hydrogen Update 6. Financing Update 7. Appendix 24
  25. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 25
    Hydrogen Update Zero Blue is our near-term solution for emissions-free hydrogen We will address current large-scale demand for hydrogen in downstream applications like ammonia and methanol Steps we are taking to Blue commercialize…
  26. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 26
    Hydrogen Update Zero Green is our longer-term solution for carbon-free hydrogen Green hydrogen is a growing market with huge potential that we see as major step towards a carbon-free future Steps we are taking to Green…
  27. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 27
    1. Executive Summary 2. Business Update 3. Operating Performance 4. Fast LNG 5. Hydrogen Update 6. Financing Update 7. Appendix 27
  28. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 28
    Financing Update Material improvements in operating metrics since financing Volume Op. Margin Goal Geographic & Cash Logistics Gas Growth Flow Diversity Capabilities Supply 5.1mm GPD committed 1.2bn committed, 9 terminals 9…
  29. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 29
    Financing Update Capital structure evolution Pre-Close Post-Close Capital Structure Capital Structure 10.1bn Total Capitalization 13.3bn Total Capitalization Corporate Debt 2.75bn 20% 1.25bn 12% Corporate Debt +New 200mm…
  30. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 30
    1. Executive Summary 2. Business Update 3. Operating Performance 4. Fast LNG 5. Hydrogen Update 6. Financing Update 7. Appendix 30
  31. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 31
    Appendix We have 2 key additions to our portfolio These additions increase our systems gas demand by 1 MTPA CFE (Mexico) Southeast Asia Supply contract with CFE has Offshore terminal & been awarded; truck LNG 300MW gas to power…
  32. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 32
    Appendix Announced 3 separate transactions for 5.1bn equivalent enterprise value 1 Acquiring Hygo Energy Transition Ltd. Private LNG-to-power business Consideration 3 terminals & power plants in Brazil Includes countrys largest…
  33. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 33
    Appendix Not all terminals are created equal High-volume Brazil terminals are expected to dramatically increase our addressable market (29) Terminals Pre-Acquisition Acquisition Terminals (GPD) Current Max. (GPD) Current Max.…
  34. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 34
    Appendix Barcarena Terminal Terminal strategically-positioned at the Amazon River delta to serve stranded demand Barcarena Terminal Barcarena Terminal Market description 1 Margin profile similar to other NFE terminals with 4-5x…
  35. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 35
    Appendix Suape Terminal Locationally advantaged LNG terminal in Northeast Brazil with close access to major pipeline network Suape Terminal Barcarena Terminal Market description 1 Gas volumes potential orders of magnitude…
  36. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 36
    Appendix Sergipe Terminal Existing 1.5 GW combined cycle power plant with option to expand Sergipe Terminal Barcarena Terminal Market description 1 Fully operational LNG terminal servicing a 1.5 GW power plant Close proximity…
  37. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 37
    Appendix Santa Catarina Terminal Only LNG terminal the Southpositioned to capture robust southern market Santa Catarina Terminal Barcarena Terminal Market description 1 High volume terminal with best-in-class margin potential…
  38. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 38
    Appendix Acquisitions significantly de-risk our global shipping needs Our total portfolio needs(21),(22) Large scale vessels acquired 8 FSRU 44 FSU 12 vessels 9 FSRU 4 FSU 13 vessels Asset Vessel Need Vessel Size 1 Old Harbour,…
  39. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 39
    Appendix Transactions dramatically diversify our earnings profile No one asset accounts for more than 15% of cash flow Last Meeting +MX, Nicaragua, + Hygo, Suape & SE Asia, & FLNG GMLP 2 5 10 geographies geographies geographies…
  40. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 40
    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,…
  41. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 41
    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…
  42. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 42
    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 +…
  43. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 43
    Appendix Operating margin reconciliation (in thousands) 2019 2020 Net income/(loss) (204,319) (263,965) Add: Contract termination charges and loss on mitigation sale 5,280 124,114 Selling, general and administrative 152,922…
  44. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 44
    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…
  45. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 45
    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…
  46. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 46
    Endnotes 9. Illustrative Annualized Operating Margin Goal means our goal for Operating Margin under certain illustrative conditions, presented on a run rate basis by multiplying the average volume we expect to sell on a gallons per day…
  47. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 47
    Endnotes 10. Committed Volume, Committed Portfolio or references to Commitments means our expected volumes to be sold to customers under binding contracts, awards under requests for proposals, and the agreement being finalized in for our…
  48. Q4 2020 Investor Presentation – Fortress Energy, Inc. – slide 48
    Endnotes 20. Pipeline opportunities or In Discussion refers to potential customers (i) with whom we are in active negotiations, (ii) for whom there is a request for proposals or competitive bid process, or (iii) for whom we anticipate a…

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