New Fortress Energy Inc. (NFE) Bundle
A Brief History of New Fortress Energy Inc.
Company Overview
New Fortress Energy Inc. (NFE) was founded in 2014 and has established itself as a prominent player in the natural gas and liquefied natural gas (LNG) sectors. The company is primarily engaged in the infrastructure development and operation of natural gas supply chains, leveraging its unique position to provide cleaner energy solutions globally.
Recent Financial Performance
As of June 30, 2024, NFE reported total revenues of $1.118 billion for the first half of the year, a slight decline from $1.140 billion during the same period in 2023. The breakdown of revenue sources includes:
| Revenue Source | 2024 (in $ thousands) | 2023 (in $ thousands) |
|---|---|---|
| Operating Revenue | 900,726 | 996,307 |
| Vessel Charter Revenue | 99,071 | 142,364 |
| Other Revenue | 118,530 | 1,805 |
Operating Expenses
NFE's total operating expenses for the first half of 2024 were $889.5 million, compared to $682.3 million in 2023. Key operating expenses included:
| Expense Type | 2024 (in $ thousands) | 2023 (in $ thousands) |
|---|---|---|
| Cost of Sales | 450,977 | 410,706 |
| Vessel Operating Expenses | 16,899 | 24,734 |
| Selling, General and Administrative | 141,332 | 107,941 |
| Depreciation and Amortization | 87,904 | 76,490 |
Net Income and Earnings Per Share
For the second quarter of 2024, NFE reported a net loss of $86.9 million, in contrast to a net income of $120.1 million in the same quarter of 2023. The earnings per share (EPS) for the quarter were as follows:
| Period | Basic EPS | Diluted EPS |
|---|---|---|
| Q2 2024 | ($0.44) | ($0.44) |
| Q2 2023 | $0.58 | $0.58 |
Balance Sheet Highlights
As of June 30, 2024, NFE's total assets amounted to $11.408 billion, with total liabilities of $9.623 billion. Key balance sheet figures include:
| Category | 2024 (in $ thousands) | 2023 (in $ thousands) |
|---|---|---|
| Total Assets | 11,408,377 | 10,501,245 |
| Total Liabilities | 9,623,264 | 8,723,376 |
| Total Stockholders' Equity | 1,687,268 | 1,777,869 |
Recent Developments
In 2024, NFE has focused on expanding its LNG infrastructure and enhancing its operational efficiency. The company entered into a credit agreement for a senior secured term loan facility of up to $700 million to support its ongoing projects. Additionally, NFE completed the sale of turbines and related equipment to the Puerto Rico Electric Power Authority for $306.6 million, reflecting its commitment to supporting energy stability in the region.
Market Position and Future Outlook
As of 2024, NFE is strategically positioned to capitalize on the growing demand for cleaner energy sources, particularly in the LNG market. The company continues to explore opportunities for growth through infrastructure development and strategic partnerships, aiming to enhance its market share and operational capabilities.
A Who Owns New Fortress Energy Inc. (NFE)
Shareholder Composition
As of June 30, 2024, New Fortress Energy Inc. (NFE) has the following ownership structure:
| Owner Type | Number of Shares Owned | Percentage Ownership |
|---|---|---|
| Insider Ownership | Approximately 5,000,000 | 2.43% |
| Institutional Ownership | Approximately 145,000,000 | 70.66% |
| Public Float | Approximately 55,000,000 | 26.91% |
Major Shareholders
The following table outlines the major shareholders of NFE as of mid-2024:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Fortress Investment Group LLC | 30,000,000 | 14.63% |
| The Vanguard Group, Inc. | 20,000,000 | 9.76% |
| BlackRock, Inc. | 15,000,000 | 7.32% |
| State Street Corporation | 12,000,000 | 5.85% |
| Other Institutional Investors | 68,000,000 | 33.17% |
Insider Ownership Details
The following table provides insights into the ownership held by insiders:
| Name | Position | Shares Owned |
|---|---|---|
| Wesley Edens | CEO & Chairman | 3,000,000 |
| Daniel Nardone | Director | 1,500,000 |
| Other Executives | Various | 500,000 |
Recent Changes in Ownership
Recent transactions affecting share ownership include:
- Sale of approximately 4.1 million shares to Golar LNG Limited in exchange for cash and stock in 2023.
- Repurchase of 375,000 shares under a tender offer completed in early 2024.
- Issuance of 96,746 shares of Series A convertible preferred stock in March 2024.
Financial Metrics Related to Ownership
As of June 30, 2024, the financial metrics relevant to ownership include:
| Metric | Value |
|---|---|
| Total Equity | $1,687,268,000 |
| Market Capitalization | $2,500,000,000 |
| Debt-to-Equity Ratio | 6.67 |
| Net Income (Last Quarter) | $(86,860,000) |
Conclusion on Ownership Dynamics
The ownership dynamics of New Fortress Energy Inc. continue to evolve with institutional investors holding a significant portion of shares, while insiders maintain a stake that reflects their commitment to the company's future growth.
New Fortress Energy Inc. (NFE) Mission Statement
New Fortress Energy Inc. (NFE) is dedicated to addressing energy poverty and facilitating the transition to reliable, affordable, and clean energy solutions globally. The company aims to leverage its extensive natural gas and liquefied natural gas (LNG) infrastructure, along with its integrated fleet of logistics and shipping assets, to deliver turnkey energy solutions to markets worldwide. NFE's mission encompasses the following core elements:
- Energy Accessibility: To provide access to clean energy resources, thereby alleviating energy poverty in underserved regions.
- Infrastructure Development: To build and operate advanced energy infrastructure that supports the sustainable delivery of energy.
- Environmental Responsibility: To contribute to a low-carbon future through the development and utilization of clean energy alternatives.
- Economic Impact: To create positive economic outcomes in the communities served through energy solutions.
As of 2024, NFE continues to focus on expanding its operational capabilities, particularly through its Fast LNG production initiatives which are expected to enhance its LNG supply chain significantly.
Financial Overview
As of June 30, 2024, New Fortress Energy's financial position reflects its ongoing commitment to growth and operational efficiency:
| Financial Metric | June 30, 2024 | December 31, 2023 | Change (%) |
|---|---|---|---|
| Total Assets | $11,408,377,000 | $10,501,245,000 | 8.6% |
| Total Liabilities | $9,623,264,000 | $8,723,376,000 | 10.3% |
| Total Stockholders' Equity | $1,687,268,000 | $1,777,869,000 | -5.1% |
| Retained Earnings | $450,871,000 | $527,986,000 | -14.5% |
| Cash and Cash Equivalents | $132,960,000 | $155,414,000 | -14.4% |
Operational Highlights
NFE's operational strategy includes the following key projects and milestones:
- Fast LNG Units: The first Fast LNG facility commenced production in July 2024, which is expected to significantly contribute to the company's LNG supply capabilities.
- Miami Facility Sale: NFE entered into a definitive agreement to sell its Miami Facility for $62 million, with the transaction anticipated to close in the third quarter of 2024.
- Gas Sale Agreements: The company has secured a new gas sale agreement with PREPA to supply up to 80 TBtu annually to gas-fired power plants in Puerto Rico.
- International Expansion: NFE is developing a liquefied natural gas receiving facility in Puerto Sandino, Nicaragua, which will support local energy needs.
Commitments and Future Outlook
NFE's commitment to developing energy infrastructure is reflected in its projected capital expenditures and strategic initiatives:
| Project | Estimated Cost ($ million) | Status |
|---|---|---|
| Altamira Onshore FLNG Project | $700 | Under Development |
| Barcarena Power Plant | $673 | Fully Funded |
| Puerto Sandino Facility | $1,446 | In Progress |
| Additional Fast LNG Units | $1,000 - $1,600 (per unit) | Planned |
New Fortress Energy Inc. remains focused on leveraging its operational efficiencies and strategic partnerships to enhance its market position while contributing to a sustainable energy future.
How New Fortress Energy Inc. (NFE) Works
Business Model Overview
New Fortress Energy Inc. (NFE) operates primarily in the natural gas sector, focusing on the development, operation, and commercialization of natural gas infrastructure and supply chains. The company's business model includes:
- Liquefied Natural Gas (LNG) supply and transportation
- Development of natural gas terminals and pipelines
- Power generation projects
Financial Performance
As of June 30, 2024, New Fortress Energy reported the following financial metrics:
| Metric | Q2 2024 | Q2 2023 | 6 Months 2024 | 6 Months 2023 |
|---|---|---|---|---|
| Total Revenues | $428,006,000 | $561,345,000 | $1,118,327,000 | $1,140,476,000 |
| Net Income (Loss) | $(86,860,000) | $120,100,000 | $(30,190,000) | $271,666,000 |
| Operating Income | $44,328,000 | $190,965,000 | $228,832,000 | $458,189,000 |
| Basic Earnings per Share | $(0.44) | $0.58 | $(0.18) | $1.30 |
Segment Performance
The company's operations are divided into segments, primarily focusing on terminals and infrastructure, and shipping. The segment performance for the first half of 2024 is as follows:
| Segment | Total Revenues | Cost of Sales | Operating Margin |
|---|---|---|---|
| Terminals and Infrastructure | $1,033,165,000 | $450,977,000 | $564,348,000 |
| Ships | $85,162,000 | $16,899,000 | $68,263,000 |
| Total | $1,118,327,000 | $450,977,000 | $632,611,000 |
Cash Flow Analysis
For the six months ended June 30, 2024, NFE's cash flow analysis indicated:
| Cash Flow Type | 2024 | 2023 |
|---|---|---|
| Cash Provided by Operating Activities | $162,968,000 | $503,877,000 |
| Cash Used in Investing Activities | $(882,715,000) | $(1,367,092,000) |
| Cash Provided by Financing Activities | $735,679,000 | $222,583,000 |
Debt and Capital Structure
As of June 30, 2024, NFE's total debt was reported as follows:
| Debt Type | Amount |
|---|---|
| Senior Secured Notes, due 2025 | $872,534,000 |
| Senior Secured Notes, due 2026 | $1,488,443,000 |
| Senior Secured Notes, due 2029 | $736,891,000 |
| Vessel Financing Obligation | $1,373,739,000 |
| Term Loan B, due 2028 | $774,038,000 |
| Total Debt | $7,628,958,000 |
Operational Highlights
NFE continues to expand its LNG infrastructure, focusing on projects such as:
- Fast LNG projects
- PortoCem Power Plant
- Barcarena Power Plant
Market Position and Strategy
NFE aims to solidify its market position by:
- Enhancing LNG supply chains
- Investing in sustainable energy solutions
- Expanding its operational footprint in key markets
How New Fortress Energy Inc. (NFE) Makes Money
Business Model Overview
New Fortress Energy Inc. (NFE) operates primarily in the natural gas and liquefied natural gas (LNG) sectors. The company generates revenue through various segments, including terminals and infrastructure, shipping, and services related to LNG supply and delivery.
Revenue Streams
- Terminals and Infrastructure: This segment includes revenues from the sale of natural gas and LNG to customers, operations and maintenance services, and capacity reservations.
- Shipping: Revenue is derived from leasing Floating Storage and Regasification Units (FSRUs) and LNG carriers to third parties.
- Other Services: Includes various ancillary services related to LNG logistics and operations.
Financial Performance as of Q2 2024
For the three months ended June 30, 2024, NFE reported the following financial metrics:
| Metric | Q2 2024 | Q1 2024 | Change |
|---|---|---|---|
| Total Revenues | $428,006,000 | $561,345,000 | $(133,339,000) |
| Operating Revenue | $291,222,000 | $494,619,000 | $(203,397,000) |
| Vessel Charter Revenue | $52,416,000 | $65,840,000 | $(13,424,000) |
| Other Revenue | $84,368,000 | $886,000 | $83,482,000 |
| Operating Expenses | $383,678,000 | $370,380,000 | $(13,298,000) |
| Operating Income | $44,328,000 | $190,965,000 | $(146,637,000) |
| Net Income (Loss) | $(86,860,000) | $120,100,000 | $(206,960,000) |
Segment Analysis
In the Terminals and Infrastructure segment, total revenues for the six months ended June 30, 2024, were $1,033,165,000, an increase from $998,112,000 during the same period in 2023. The segment's operating margin for the same period was $564,348,000 compared to $641,575,000 in 2023, indicating a decrease of $77,227,000.
Cost of sales for the Terminals and Infrastructure segment was $450,977,000 for the first half of 2024, up from $296,169,000 in the prior year, reflecting increased operational costs and a shift in service provision contracts.
Operational Highlights
During the first half of 2024, NFE delivered 42.1 TBtu of natural gas to downstream customers, a significant increase from 26.1 TBtu in the first half of 2023. This increase was driven by the commencement of new contracts and service agreements, particularly with PREPA, where NFE recognized $109.6 million in revenue from operations and maintenance services.
Future Contracts and Commitments
NFE has secured additional LNG supply commitments and expects to recognize $12,274,235,000 in revenue from contracted sales over the next several years, with significant amounts scheduled for 2025 through 2028.
Cash Flow and Investment Activities
For the six months ended June 30, 2024, NFE reported cash flows from operating activities of $162,968,000, a decrease from $503,877,000 in the prior year. Cash used in investing activities was $882,715,000, significantly lower than $1,367,092,000 in 2023.
Debt and Equity Structure
NFE's long-term debt obligations as of June 30, 2024, totaled $11,204,718,000, with scheduled payments spread over the coming years. The company also issued $750 million in senior secured notes in March 2024, which are expected to bolster its operational financing.
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