8-K: New Fortress Energy Reports Strong Q4 and Full Year 2024 Results, Exceeding Expectations

New Fortress Energy announces positive Q4 and full year 2024 results, surpassing Adjusted EBITDA guidance and achieving key operational milestones.

Summary

• New Fortress Energy (NFE) reported its financial results for the fourth quarter and full year ended December 31, 2024.
• Adjusted EBITDA for Q4 2024 was $313 million, exceeding the guidance of $200-$220 million.
• Full year 2024 Adjusted EBITDA reached $950 million, surpassing the guidance of $835-$855 million.
• The company reported a net loss of $224 million in Q4 2024 and $242 million for the full year, primarily due to costs associated with debt refinancing, including a $260 million loss on extinguishment of debt in Q4.
• Adjusted Net Income was $29 million in Q4 2024 and $101 million for the full year.
• Adjusted EPS was $0.13 on a fully diluted basis in Q4 2024 and $0.46 for the full year.
• EPS was $(1.11) on a fully diluted basis in Q4 2024 and $(1.25) for the full year.
• NFE's total cash balance as of December 31, 2024, was $966 million, with $493 million unrestricted.
• The Fast LNG asset has been completed and was placed into service for accounting purposes in December 2024 and has been routinely producing above nameplate capacity since the start of the year.
• NFE extended its 80 TBtu island-wide gas supply contract in Puerto Rico and adjusted its incentive structure on the Operation and Maintenance agreement between NFE subsidiary Genera & PREPA in exchange for a $110 million payment.
• In Brazil, the 624 MW CELBA power plant is nearly 88% complete.
• NFE completed a $2.7 billion issuance of new senior secured notes due 2029 to refinance existing debt, resulting in approximately $300 million in additional liquidity.
• The company also completed a $400 million common equity offering in October 2024.
• In February 2025, NFE issued additional notes in Brazil raising $350 million to repay existing debt and increase liquidity.
• In March 2025, the company upsized its Term Loan B by an additional $425 million.

Sentiment

Score: 7

Explanation: The report highlights positive financial performance in terms of Adjusted EBITDA, exceeding guidance. However, the net loss due to debt refinancing costs tempers the overall sentiment. The completion of key projects and strategic initiatives contribute to a moderately positive outlook.

Positives

• Adjusted EBITDA exceeded guidance for both Q4 and the full year.
• Completion and commissioning of the Fast LNG asset.
• Extension of the Puerto Rico gas supply contract and adjustment to the Genera & PREPA agreement.
• Successful debt refinancing, increasing liquidity by $300 million.
• Completion of a $400 million common equity offering.
• Progress on the 624 MW CELBA power plant in Brazil, which is nearly 88% complete.
• Upsizing of the Term Loan B by $425 million.

Negatives

• The company reported a net loss of $224 million in Q4 2024 and $242 million for the full year 2024.
• The net loss was primarily driven by costs associated with debt refinancing, including a $260 million loss on extinguishment of debt in Q4.

Risks

• The company's ability to export liquefied natural gas depends on obtaining necessary permits and approvals from governmental and regulatory agencies.
• There is no assurance that the company will receive required permits, approvals, and authorizations from governmental and regulatory agencies in connection with the exportation of liquefied natural gas on a timely basis or at all or that, once received, the company will be able to maintain in full force and effect, renew or replace such permits, approvals and authorizations.
• The company may not generate any revenue until full commercial operations have begun for certain projects.

Future Outlook

NFE expects to benefit from the recently announced Brazil power auctions in June, providing opportunities for gas-to-power plant development. The company also anticipates continued cost savings and emissions reductions from its Puerto Rico operations.

Management Comments

• This has been a strong fourth quarter for the Company as we achieved Adjusted EBITDA of $313 million, surpassing our guidance of $200-$220 million.
• Earnings for the year also held strong as we achieved Adjusted EBITDA of $950 million, surpassing our guidance of $835-$855 million.
• Our results have benefited from the recognition of income from optimizing our current LNG portfolio.
• The liquefier has been operating smoothly and has been routinely producing above nameplate capacity since the start of the year.
• This significant milestone concludes the development of a cornerstone asset that secures NFEs LNG supply and enhances the energy security of our downstream customers across the globe.
• These agreements provide significant opportunity to generate substantial cost savings and significantly reduce emissions by converting existing plants from diesel to LNG, and also reinforce NFEs longstanding commitment to delivering reliable and clean power to Puerto Ricans at the lowest cost possible.
• We also believe that NFE should be in prime position to take advantage of the recently announced Brazil power auctions expected to occur in June this year, which will provide a significant opportunity for both brownfield & greenfield gas to power plants that can either be developed by NFE or supplied via our LNG terminals.
• This transaction, combined with the $400 million common equity offering completed in October 2024, marked an important step forward in strengthening the Companys balance sheet and positions the Company for future sustained growth.

Industry Context

The announcement reflects NFE's strategic focus on expanding its LNG infrastructure and operations globally, particularly in regions with growing energy demand. The company's investments in Fast LNG technology and power plant developments align with the industry's broader trend towards cleaner energy solutions and energy security.

Comparison to Industry Standards

• Comparing NFE's Adjusted EBITDA growth to peers like Cheniere Energy (LNG) and Tellurian (TELL) would provide a benchmark for operational efficiency.
• The completion of the Fast LNG asset positions NFE competitively against other LNG exporters such as QatarEnergy and Woodside Energy (WDS).
• The Puerto Rico gas supply contract extension can be compared to similar agreements in the Caribbean region to assess its value and impact.
• The progress of the CELBA power plant in Brazil can be benchmarked against other power plant projects in the region, such as those by Eletrobras and Engie Brasil Energia, to evaluate its timeline and efficiency.

Stakeholder Impact

• Shareholders will be impacted by the financial performance and strategic initiatives outlined in the report.
• Employees are affected by the company's growth and project developments.
• Customers in Puerto Rico will benefit from the extended gas supply contract and potential cost savings.
• Suppliers and creditors are impacted by the company's financial stability and debt refinancing activities.

Next Steps

• Continue commissioning the Fast LNG asset.
• Participate in the Brazil power auctions expected in June 2025.
• Focus on cost savings and emissions reductions in Puerto Rico.
• Advance the development of the CELBA power plant in Brazil.

Key Dates