New Fortress Energy Announces First Quarter 2024 Results
New Fortress Energy Inc. (Nasdaq: NFE) reported strong financial results for the first quarter of 2024, with highlights including Adjusted EBITDA of $340 million, net income of $57 million, and Adjusted EPS of $0.67. The company achieved significant milestones, including the completion of its first FLNG unit and the commencement of operations in Brazil. Financially, NFE generated Funds from Operations per share of $0.92 and expects to reach an Illustrative Adjusted EBITDA Goal of ~$2 billion for the full year 2024.
New Fortress Energy Inc. reported robust financial results for the first quarter of 2024, including Adjusted EBITDA of $340 million, net income of $57 million, and Adjusted EPS of $0.67.
The company achieved significant milestones during the quarter, such as completing the construction of its first FLNG unit and commencing operations in Brazil, with 2.2 gigawatts of power under construction.
NFE generated Funds from Operations per share of $0.92 on a fully diluted basis in the first quarter of 2024, primarily driven by contracted downstream assets.
The company expects to reach an Illustrative Adjusted EBITDA Goal of approximately $2 billion for the full year 2024, highlighting its commitment to growth and long-term shareholder value.
- None.
Insights
New Fortress Energy Inc.'s first quarter financials are notable for the reported Adjusted EBITDA of $340 million, indicating a substantial measure of the company's operating profitability. However, there is a notable decrease from the previous quarters, suggesting potential challenges or shifts in operational efficiency. The disclosed Net income of $57 million, alongside an Adjusted EPS of $0.67, provides investors with a snapshot of the company's profitability and earning power per share. The Funds from Operations per share at $0.92, above the actual EPS, could imply a strong cash flow position, which is critical for maintaining and expanding operations.
The strategic moves highlighted, such as the commissioning of the FLNG unit and expansion in Puerto Rico, exhibit the company's pursuit of growth and may signal future revenue streams. However, investors must weigh these developments against the capital expenditures and their impact on the company's debt profile, particularly with the mention of issuance of 2029 Notes and repayment strategies.
The introduction of a dividend can be a double-edged sword, signaling confidence in the company's cash flow while also representing a commitment to payout cash that could be utilized for further expansion or debt reduction. The dividend of $0.10 per share is a new factor for investors to consider in their evaluation of the stock's income-generating potential.
When assessing New Fortress Energy's performance in the context of the broader energy sector, the commissioning of an FLNG unit and the commencement of operations in Brazil mark significant advances in the company’s asset base and regional footprint. These ventures can increase the company's ability to meet emerging global energy demands, particularly for Liquefied Natural Gas (LNG). The sale of developed power plants for FEMA and the secured gas contract in Puerto Rico demonstrate flexibility in capitalizing on diverse energy opportunities.
Yet, the shift in operating margins in the Terminals and Infrastructure Segment as well as the Ships Segment must be factored in as a key indicator of sector-specific performance. Operating margin compression can point to increased competitive pressures or cost increases, pivotal considerations for investors evaluating the company's sector position.
Finally, the stated goal to refinance its senior secured notes due 2025 reflects ongoing balance sheet management, which is essential for sustaining operations and pursuing strategic initiatives in the capital-intensive energy sector.
From a risk perspective, the sale of non-core assets and issuance of 2029 Notes mentioned in New Fortress Energy's financial results could indicate a strategic reshuffling of the company's portfolio to reduce risk or to reallocate resources to higher-potential projects. However, the specifics of such transactions, including the identity of the non-core assets and the terms of the notes, would require careful analysis because they can significantly influence the risk profile of the company.
The ability to generate funds from operations at a higher level than reported earnings suggests that the company's underlying assets are productive and generating cash flow, but investors should be cautious not to overlook the reported net income decline when considering the company's financial health.
Strategic financing maneuvers to manage and refinance debt, such as repaying portions of the 2025 Notes, should be seen in light of the company's long-term financial strategy and how it aligns with risk tolerance levels of stakeholders. The company's approach to capital management will be critical in maintaining financial flexibility amidst market uncertainties and evolving energy sector dynamics.
Summary Highlights
-
Adjusted EBITDA(1) of
$340 million -
Net income of
$57 million -
Adjusted EPS(2) of
$0.67 -
EPS of
$0.26 -
Funds from Operations per share(3) of
$0.92 -
Illustrative Adjusted EBITDA Goal(4) of
~ in the full year 2024$2 billion
"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
Financial Highlights
We generated significant Funds from Operations per share(3) of
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
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
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
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
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,
Exhibits – Financial Statements
Condensed Consolidated Statements of Operations
|
|||||||
|
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
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
|
|
Three Months
|
|
Three Months
|
|||||
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
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
|
|
Ships |
|
Total
|
|
Consolidation
|
|
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
|
|
Ships |
|
Total
|
|
Consolidation
|
|
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
|
|
Ships ⁽1⁾ |
|
Total
|
|
Consolidation
|
|
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 |
(2) |
Consolidation and Other adjusts for the inclusion of the effective share of revenues, expenses and operating margin attributable to |
Adjusted Net Income and Adjusted Earnings per Share
(Unaudited, in thousands of
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
|
|
Three months ended
|
|
Three months ended
|
||||
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
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
|
Three months ended
|
Three months ended
|
||||
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
|
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 |
|
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, |
|
96,655 |
|
|
— |
|
|
|
|
||
Stockholders’ equity |
|
|
|
||
Class A common stock, |
|
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
|
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
|
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 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508188466/en/
Investor Relations:
Chance Pipitone
ir@newfortressenergy.com
Media Relations:
Ben Porritt
press@newfortressenergy.com
(516) 268-7403
Source: New Fortress Energy Inc.
FAQ
<p>What were New Fortress Energy's Adjusted EBITDA and net income for the first quarter of 2024?</p>
New Fortress Energy reported Adjusted EBITDA of $340 million and net income of $57 million for the first quarter of 2024.
<p>What was New Fortress Energy's Adjusted EPS for the first quarter of 2024?</p>
New Fortress Energy's Adjusted EPS for the first quarter of 2024 was $0.67 on a fully diluted basis.
<p>What was New Fortress Energy's Funds from Operations per share in the first quarter of 2024?</p>
New Fortress Energy generated Funds from Operations per share of $0.92 on a fully diluted basis in the first quarter of 2024.
<p>What dividend did NFE's Board of Directors approve on May 7, 2024?</p>
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.
<p>What significant milestones did New Fortress Energy achieve in the first quarter of 2024?</p>
New Fortress Energy completed the construction of its first FLNG unit, commenced operations in Brazil, and had 2.2 gigawatts of power under construction.
