Last10K.com

New Fortress Energy Inc. (NFE) SEC Filing 10-K Annual Report for the fiscal year ending Friday, December 31, 2021

New Fortress Energy Llc

CIK: 1749723 Ticker: NFE

 Exhibit 99.1

 
111 W 19th Street, 8th Floor
New York, NY  10011

New Fortress Energy Announces Fourth Quarter 2021 Results and Declares Dividend of $0.10 per Class A Common Share

February 28, 2022

NEW YORK -- New Fortress Energy Inc. (NASDAQ: NFE) (“NFE” or the “Company”) today reported its financial results for the fourth quarter and full year 2021.

Fourth Quarter Highlights

Financial results

NFE is pleased to report our highest quarterly and annual net income and EPS in our history

o
Net income of over $151 million and EPS of $0.72 per share on a fully diluted basis for Q4 2021

o
Net income of over $92 million and EPS of $0.47 per share on a fully diluted basis for the year ended December 31, 2021

NFE is adopting Adjusted EBITDA as our new financial performance measure

o
Adjusted EBITDA(4) increased almost 100% over the previous quarter to approximately $334 million in Q4 2021 from $170 million in Q3 2021

o
Adjusted EBITDA was over $604 million for the year ended December 31, 2021

Business update

Robust LNG sales and power revenues produced record revenues in Q4 and FY 2021

Signed 10 new commercial contracts in 2021 including:

o
~30 TBtu, 15-year supply agreement replacing oil-based fuel at Norsk Hydro’s Alunorte alumina refinery with gas to be supplied from our Barcarena Terminal in Brazil

o
Gas supply agreement with CFEnergia supplied from our La Paz, Mexico terminal for the fuel supply of two power plants in Baja California Sur, Mexico

Elevated and volatile commodity market environment creates significant tailwinds for NFE’s business

Our development projects in Nicaragua and Brazil are advancing on schedule

o
Nicaragua power plant is fully complete and awaiting First Gas(2)

o
Construction of the Barcarena offshore terminal, its associated pipeline and citygate are significantly advanced and the marine terminal at near physical completion

o
Construction at our Santa Catarina Terminal is significantly advanced, with onshore and offshore pipeline laying already commenced, the FSRU approaching drydocking and the terminal projected to be ready for FSRU mooring in early Q2 2022

NFE has signed a term sheet(5) with Transnet Port Terminals, a division of Transnet SOC Limited, for use of a marine berth for a large ship in Richards Bay, South Africa


Fast LNG update

Executed HOA for deployment of our first Fast LNG asset scheduled for Q2 2023 with Eni S.p.A.’s fully owned subsidiary, Eni Congo (“Eni”)(6)

o
FLNG 1 will be deployed on Eni’s Marine 12 project offshore of The Republic of Congo; NFE will receive a combination of a tolling fee for the next 20 years plus the right to purchase 50% of the LNG created(6)

We have taken FID(3) on our second Fast LNG unit, which is expected to be placed into service in Q3 2023

o
This asset will utilize the same modularized liquefaction technology as our FLNG 1 asset and have a nameplate capacity of 1.4 mtpa

o
NFE has also purchased two marine assets that can be used as the operational base for FLNG 2 and future FLNG assets

LNG supply

During 2021, NFE purchased over 0.75 mtpa of additional annual supply taking us to over 2.4 mtpa, which fully covers estimated downstream demand through 2026

In addition, we are actively looking to add long-term volumes from US producers to best match long-term demand in high-growth markets

Energy transition

We are making significant progress in the development of our clean hydrogen business, NFE Zero Parks

We are nearing FID(3) on our first NFE Zero Parks facility, a 100MW green hydrogen facility expected to be one of the largest of its kind in the United States

We expect to capitalize NFE Zero Parks to fund development of a portfolio of clean hydrogen projects, our next step in building the world’s leading energy transition company

Financing update

Expanded access to capital to fund our developments

o
Issuing up to $285 million of bonds in Jamaica, $160 million funded to date

o
Expanding revolver capacity by up to $200 million

o
Achieved a credit rating upgrade to BB-

Exploring financing alternatives, including assets sales that will allow us to redeploy capital at significantly higher yields

Our Board of Directors approved a dividend of $0.10 per share, with a record date of March 18, 2022 and a payment date of March 29, 2022


Financial Highlights

   
Three Months Ended
   
Year Ended
 
(in millions, except Average Volumes)
 
September 30, 2021
   
December 31, 2021
   
December 31, 2021
 
Revenues
 
$
304.7
   
$
648.6
   
$
1,322.8
 
Net (loss) income
 
(17.8
)
 
$
151.7
   
$
92.7
 
Terminals and Infrastructure Segment Operating Margin(1)
 
$
115.7
   
$
278.4
   
$
481.2
 
Ships Segment Operating Margin(1)
 
$
94.8
   
$
94.8
   
$
265.2
 
Total Segment Operating Margin(1)
 
$
210.5
   
$
373.2
   
$
746.4
 
Adjusted EBITDA(4)
 
$
169.9
   
$
334.0
   
$
604.6
 
Average Volumes (k GPD)
   
2,051
     
2,881
     
2,005
 


Record quarterly revenue of over $648mm, increasing approximately $344mm from the third quarter; revenue for the year ended December 31, 2021 was over $1.3 billion

Adjusted EBITDA(4) of approximately $334 million in Q4. Record quarterly Total Segment Operating Margin(1) of approximately $373 million, resulting from:

o
Terminals and Infrastructure Segment Operating Margin increased due to the impact of increased natural gas pricing and LNG cargo sales

o
Consistent contribution from Ships Segment Operating Margin from Q3 2021

Annual Adjusted EBIDTA(4) of over $604 million and Annual Total Segment Operating Margin(1) of over $746 million

o
Record Terminals and Infrastructure Segment Operating Margin(1) led by LNG cargo sales and the inclusion of the results of our investment in the Sergipe Power Plant acquired as part of the acquisition of Hygo Energy Transition Limited (“Hygo”) in the second quarter of 2021

o
Our Ships Segment, acquired in the acquisitions of Golar LNG Partners Limited (“GMLP”) and Hygo in the second quarter of 2021, contributed $265 million to Total Segment Operating Margin(1)

Please refer to our Q4 2021 Investor Presentation (the “Presentation”) for further information about the following terms:
1) “Total Segment Operating Margin” is the total of our Terminals and Infrastructure Segment Operating Margin and Ships Segment Operating Margin. Terminals and Infrastructure Segment Operating Margin includes our effective share of revenue, expenses and operating margin attributable to our 50% ownership of Centrais Elétricas de Sergipe Participações S.A. (“CELSEPAR”). Ships Segment Operating Margin includes our effective share of revenue, expenses and operating margin attributable to our ownership of 50% of the common units of Hilli LLC. Hilli LLC owns Golar Hilli Corporation (“Hilli Corp”), the disponent owner of the Hilli.
2) “First Gas” means the date on which (or, for future dates, management's current estimate of the date on which) natural gas is first made available to our projects, including our facilities in development. Full commercial operations of such projects will occur later than, and may occur substantially later than, the First Gas date. We cannot assure you if or when such projects will reach the date of delivery of First Gas, or full commercial operations. Actual results could differ materially from the illustration and there can be no assurance we will achieve our goal.
3) “FID” means management has made an internal commitment to commit resources (including capital) to a particular project. Our management has not made an FID decision on certain projects as of the date of this press release, and there can be no assurance that we will be willing or able to make any such decision, based on a particular project’s time, resource, capital and financing requirements.
4) “Adjusted EBITDA” see definition and reconciliation of this non-GAAP measure in the exhibits to this press release.
5) NFE’s term sheet with Transnet Port Terminals is subject to entering into definitive agreements.
6) NFE’s project with Eni is subject to entering into definitive agreements.


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 Tuesday, March 1, 2022 at 8:00 A.M. Eastern Time. The conference call may be accessed by dialing (866) 953-0778 (from within the U.S.) or (630) 652-5853 (from outside of the U.S.) fifteen minutes prior to the scheduled start of the call; please reference “NFE Fourth Quarter 2021 Earnings Call."

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newfortressenergy.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.

A replay of the conference call will be available after 11:00 A.M. Eastern Time on March 1, 2022 through 11:00 A.M. Eastern Time on March 8, 2022 at (855) 859-2056 (from within the U.S.) or (404) 537-3406 (from outside of the U.S.), Passcode: 2763528.

About New Fortress Energy Inc.
New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to help accelerate the world’s transition to clean energy. The company funds, builds and operates natural gas infrastructure and logistics to rapidly deliver fully integrated, turnkey energy solutions that enable economic growth, enhance environmental stewardship and transform local industries and communities.

Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements” including our expected volumes of LNG and our ability to supply LNG and natural gas in the future, including under our definitive agreements, such as the agreements with Norsk Hydro and CFEnergia; current elevated and volatile commodity market environment creating significant tailwinds for NFE’s business; expected First Gas date for our Nicaragua Power Plant; completion of construction and commissioning of our Nicaragua and Brazil projects; ability to maintain our expected development timelines; our ability to finalize and execute definitive agreements in connection with our term sheet with Transnet Port Terminals; our ability to finalize and execute definitive agreements with Eni and to fulfill all of the conditions precedent to effectiveness under our HOA; expectations regarding our benefits from our Fast LNG asset and ability to use our current assets for our Fast LNG project; expectations regarding our ability to place our Fast LNG asset into service within our expected timeline; our ability to match our LNG supply and demand profile; our expected needs for LNG supply in the future; our ability to reach FID on our NFE Zero Parks facility; capitalization of NFE Zero Parks; and the implementation and success of our financing alternatives, including any asset sales. You can identify these forward-looking statements by the use of forward-looking words such as “expects,” “may,” “will,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of those words or other comparable words. These forward-looking statements represent the Company’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the risk that the volumes we are able to sell are less than we expect due to decreased customer demand or our inability to supply; our ability to successfully benefit from current elevated and volatile commodity market environment; the risk that our development, construction or commissioning of our facilities will take longer than we expect; the risk that we may not develop our Fast LNG project on the timeline we expect or at all, or that we do not receive the benefits we expect from the Fast LNG project; cyclical or other changes in the demand for and price of LNG and natural gas; the risk that the foregoing or other factors negatively impact our liquidity and our ability to capitalize our projects; and the risk that we may be unable to implement our financing strategy or to effectively leverage our assets. Accordingly, readers should not place undue reliance on forward-looking statements as a prediction of actual results.


Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in the Company’s annual and quarterly reports filed with the SEC, which could cause its actual results to differ materially from those contained in any forward-looking statement.

IR and Media:
Brett Magill
bmagill@newfortressenergy.com


Exhibits – Financial Statements
 
Condensed Consolidated Statements of Operations
For the three months ended September 30, 2021 and December 31, 2021
(Unaudited, in thousands of U.S. dollars, except share and per share amounts)

   
For the Three Months Ended
 
   
September 30,
2021
   
December 31,
2021
 
Revenues
           
Operating revenue
 
$
188,389
   
$
548,395
 
Vessel charter revenue
   
78,656
     
87,592
 
Other revenue
   
37,611
     
12,644
 
Total revenues
   
304,656
     
648,631
 
                 
Operating expenses
               
Cost of sales
   
135,432
     
282,477
 
Vessel operating expenses
   
15,301
     
20,976
 
Operations and maintenance
   
20,144
     
18,356
 
Selling, general and administrative
   
46,802
     
74,927
 
Transaction and integration costs
   
1,848
     
2,107
 
Depreciation and amortization
   
31,194
     
30,297
 
Total operating expenses
   
250,721
     
429,140
 
Operating income
   
53,935
     
219,491
 
Interest expense
   
57,595
     
46,567
 
Other (income), net
   
(5,400
)
   
(3,692
)
Loss on extinguishment of debt, net
   
-
     
10,975
 
Net income before loss from equity method investments and income taxes
   
1,740
     
165,641
 
Loss from equity method investments
   
(15,983
)
   
(8,515
)
Tax provision
   
3,526
     
5,403
 
Net (loss) income
   
(17,769
)
   
151,723
 
Net loss (income) attributable to non-controlling interest
   
7,963
     
(866
)
Net (loss) income attributable to stockholders
 
$
(9,806
)
 
$
150,857
 
                 
Net (loss) income per share – basic
 
$
(0.05
)
 
$
0.73
 
Net (loss) income per share – diluted
 
$
(0.05
)
 
$
0.72
 
                 
Weighted average number of shares outstanding – basic
   
207,497,013
     
207,479,963
 
Weighted average number of shares outstanding – diluted
   
207,497,013
     
210,511,076
 


Adjusted EBITDA
For the three months ended December 31, 2021
(Unaudited, in thousands of U.S. dollars)
 
Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered in isolation or as an alternative to income/(loss) from operations, net income/(loss), 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 the Company’s 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 (loss), plus transaction and integration costs, contract termination charges and loss on mitigations sales, depreciation and amortization, interest expense (net of interest income), other expense (income), 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 of exploring new business opportunities and expenses associated with changes to our corporate structure, plus our pro rata share of Adjusted EBITDA from unconsolidated entities, less the impact of equity in earnings (losses) of unconsolidated entities.
 
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 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/(loss), 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 (loss) and diluted earnings (loss) per share attributable to New Fortress Energy, which are determined in accordance with GAAP.
 

The following table sets forth a reconciliation of net income (loss) to Adjusted EBITDA for the 3 months ended September 30, 2021 and December 31, 2021:
 
   
Three Months
Ended
September 30, 2021
   
Three Months
Ended
December 31, 2021
   
Year Ended
December 31, 2021
 
Total Segment Operating Margin per Form 10-K
 
$
210,478
   
$
373,150
   
$
746,430
 
Less: Core SG&A (see definition above)
   
38,496
     
38,003
     
137,144
 
Less: Pro rata share Core SG&A from unconsolidated entities
   
2,047
     
1,110
     
4,726
 
Adjusted EBITDA
 
$
169,935
   
$
334,037
   
$
604,560
 
                         
                         
Net (loss) income
 
$
(17,769
)
 
$
151,723
   
$
92,711
 
Add: Interest expense (net of interest income)
   
57,595
     
46,567
     
154,324
 
Add: Tax provision
   
3,526
     
5,403
     
12,461
 
Add: Depreciation and amortization
   
31,194
     
30,297
     
98,377
 
Add: SG&A items excluded from Core SG&A (see definition above)
   
8,306
     
36,894
     
62,737
 
Add: Transaction and integration costs
   
1,848
     
2,107
     
44,671
 
Add: Other (income) net
   
(5,400
)
   
(3,692
)
   
(17,150
)
Add: Changes in fair value of non-hedge derivative instruments and contingent consideration
   
2,316
     
472
     
2,788
 
Add: Loss on extinguishment of debt, net
   
-
     
10,975
     
10,975
 
Add: Pro rata share of Adjusted EBITDA from unconsolidated entities
   
72,336
     
44,746
     
157,109
 
Less: Loss (income) from equity method investments
   
15,983
     
8,515
     
(14,443
)
Adjusted EBITDA
 
$
169,935
   
$
334,007
   
$
604,560
 

(1)
Includes the Company’s effective share of Adjusted EBITDA of CELSEPAR of $52,179 and $24,173 for the three months ended September 30, 2021 and December 31, 2021, respectively, and the Company’s effective share of the Adjusted EBITDA of Hilli LLC of $20,157 and $20,573 for the three months ended September 30, 2021 and December 31, 2021, respectively. Includes the Company’s effective share of Adjusted EBITDA of CELSEPAR of 99,512 for the period after the acquisition of Hygo Energy Transition Ltd through December 31, 2021, and the Company’s effective share of the Adjusted EBITDA of Hilli LLC of $57,597 for the period after the acquisition of Golar LNG Partners Limited through December 31, 2021.


Segment Operating Margin
(Unaudited, in thousands of U.S. dollars)

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 (loss), adjusted for selling, general and administrative expense, transaction and integration costs, contract termination charges and loss on mitigation sales, depreciation and amortization, interest expense, other (income) expense, loss on extinguishment of debt, net, income from equity method investments and tax 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 December 31, 2021
 
(in thousands of $)
 
Infrastructure and
Terminals ⁽¹⁾
   
Ships ⁽²⁾
   
Total Segment
   
Consolidation and
Other ⁽³⁾
   
Consolidated
 
Segment Operating Margin
 
$
278,354
   
$
94,796
   
$
373,150
   
$
(46,328
)
 
$
326,822
 
Less:
                                       
Selling, general and administrative
                                   
74,927
 
Transaction and integration costs
                                   
2,107
 
Depreciation and amortization
                                   
30,297
 
Interest expense
                                   
46,567
 
Other (income), net
                                   
(3,692
)
Loss from extinguishment of debt
                                   
10,975
 
Loss from equity method investments
                                   
8,515
 
Tax provision
                                   
5,403
 
Net income
                                   
151,723
 

⁽¹⁾ Terminals and Infrastructure includes the Company's effective share of revenues, expenses and operating margin attributable to 50% ownership of CELSEPAR. The losses attributable to the investment of $18,580 for the three months ended December 31, 2021 are reported in loss from equity method investments on the consolidated statements of operations and comprehensive income (loss).  Terminals and Infrastructure does not include the unrealized mark-to-market loss on derivative instruments of $472 for the three months ended December 31, 2021 reported in Cost of sales.
⁽²⁾ Ships includes the Company's effective share of revenues, expenses and operating margin attributable to 50% ownership of the Hilli Common Units. The earnings attributable to the investment of $10,065 for the three months ended December 31, 2021 are reported in loss from equity method investments on the condensed consolidated statements of operations and comprehensive income (loss).
⁽³⁾ Consolidation and Other adjusts for the inclusion of the effective share of revenues, expenses and operating margin attributable to 50% ownership of CELSEPAR and Hilli Common Units in our segment measure and exclusion of the unrealized mark-to-market gain or loss on derivative instruments.

Three Months Ended September 30, 2021
 
(in thousands of $)
 
Infrastructure and
Terminals ⁽¹⁾
   
Ships ⁽²⁾
   
Total Segment
   
Consolidation and
Other ⁽³⁾
   
Consolidated
 
Segment Operating Margin
 
$
115,638
   
$
94,840
   
$
210,478
   
$
(76,699
)
 
$
133,779
 
Less:
                                       
Selling, general and administrative
                                   
46,802
 
Transaction and integration costs
                                   
1,848
 
Depreciation and amortization
                                   
31,194
 
Interest expense
                                   
57,595
 
Other (income), net
                                   
(5,400
)
Loss from equity method investments
                                   
15,983
 
Tax provision
                                   
3,526
 
Net loss
                                   
(17,769
)

⁽¹⁾Terminals and Infrastructure includes the Company's effective share of revenues, expenses and operating margin attributable to 50% ownership of CELSEPAR. The losses attributable to the investment of $27,792 for the three months ended September 30, 2021 are reported in loss from equity method investments on the condensed consolidated statements of operations and comprehensive income (loss).  Terminals and Infrastructure does not include the unrealized mark-to-market loss on derivative instruments of $2,316 for the three months ended September 30, 2021 reported in Cost of sales.
⁽²⁾ Ships includes the Company's effective share of revenues, expenses and operating margin attributable to 50% ownership of the Hilli Common Units. The earnings attributable to the investment of $11,809 for the three months ended September 30, 2021 are reported in loss from equity method investments on the condensed consolidated statements of operations and comprehensive income (loss).
⁽³⁾ Consolidation and Other adjusts for the inclusion of the effective share of revenues, expenses and operating margin attributable to 50% ownership of CELSEPAR and Hilli Common Units in our segment measure and exclusion of the unrealized mark-to-market gain or loss on derivative instruments.


Year Ended December 31, 2021
 
(in thousands of $)
 
Infrastructure and
Terminals ⁽¹⁾
   
Ships ⁽²⁾
   
Total Segment
   
Consolidation and
Other ⁽³⁾
   
Consolidated
 
Segment Operating Margin
 
$
481,207
   
$
265,223
   
$
746,430
   
$
(164,623
)
 
$
581,807
 
Less:
                                       
Selling, general and administrative
                                   
199,881
 
Transaction and integration costs
                                   
44,671
 
Depreciation and amortization
                                   
98,377
 
Interest expense
                                   
154,324
 
Other (income), net
                                   
(17,150
)
Loss from extinguishment of debt
                                   
10,975
 
(Income) from equity method investments
                                   
(14,443
)
Tax provision
                                   
12,461
 
Net income
                                   
92,711
 

⁽¹⁾ Terminals and Infrastructure includes the Company's effective share of revenues, expenses and operating margin attributable to 50% ownership of CELSEPAR. The losses attributable to the investment of $17,925 for the year ended December 31, 2021 are reported in income from equity method investments on the consolidated statements of operations and comprehensive income (loss).  Terminals and Infrastructure does not include the unrealized mark-to-market loss on derivative instruments of $2,788 for the year ended December 31, 2021 reported in Cost of sales.
⁽²⁾ Ships includes the Company's effective share of revenues, expenses and operating margin attributable to 50% ownership of the Hilli Common Units. The earnings attributable to the investment of $32,368 for the year ended December 31, 2021 are reported in income from equity method investments on the condensed consolidated statements of operations and comprehensive income (loss).
⁽³⁾ Consolidation and Other adjusts for the inclusion of the effective share of revenues, expenses and operating margin attributable to 50% ownership of CELSEPAR and Hilli Common Units in our segment measure and exclusion of the unrealized mark-to-market gain or loss on derivative instruments.


Condensed Consolidated Balance Sheets
As of December 31, 2021 and 2020
 (Unaudited, in thousands of U.S. dollars, except share and per share amounts)

   
December 31, 2021
   
December 31, 2020
 
Assets
           
Current assets
           
Cash and cash equivalents
 
$
187,509
   
$
601,522
 
Restricted cash
   
68,561
     
12,814
 
Receivables, net of allowances of $164 and $98, respectively
   
208,499
     
76,544
 
Inventory
   
37,182
     
22,860
 
Prepaid expenses and other current assets, net
   
83,115
     
48,270
 
Total current assets
   
584,866
     
762,010
 
                 
Restricted cash
   
7,960
     
15,000
 
Construction in progress
   
1,043,883
     
234,037
 
Property, plant and equipment, net
   
2,137,936
     
614,206
 
Equity method investments
   
1,182,013
     
-
 
Right-of-use assets
   
309,663
     
141,347
 
Intangible assets, net
   
142,944
     
46,102
 
Finance leases, net
   
602,675
     
7,044
 
Goodwill
   
760,135
     
-
 
Deferred tax assets, net
   
5,999
     
2,315
 
Other non-current assets, net
   
98,418
     
86,030
 
Total assets
 
$
6,876,492
   
$
1,908,091
 
                 
Liabilities
               
Current liabilities
               
Current portion of long-term debt
 
$
97,251
   
$
-
 
Accounts payable
   
68,085
     
21,331
 
Accrued liabilities
   
244,025
     
90,352
 
Current lease liabilities
   
47,114
     
35,481
 
Other current liabilities
   
106,036
     
43,986
 
Total current liabilities
   
562,511
     
191,150
 
                 
Long-term debt
   
3,757,879
     
1,239,561
 
Non-current lease liabilities
   
234,060
     
84,323
 
Deferred tax liabilities, net
   
269,513
     
2,330
 
Other long-term liabilities
   
58,475
     
15,641
 
Total liabilities
   
4,882,438
     
1,533,005
 
                 
Commitments and contingencies (Note 20)
               
                 
Stockholders’ equity
               
Class A common stock, $0.01 par value, 750.0 million shares authorized, 206.9 million issued and outstanding as of December 31, 2021; 174.6 million issued and outstanding as of December 31, 2020
   
2,069
     
1,746
 
Additional paid-in capital
   
1,923,990
     
594,534
 
Accumulated deficit
   
(132,399
)
   
(229,503
)
Accumulated other comprehensive (loss) income
   
(2,085
)
   
182
 
Total stockholders' equity attributable to NFE
   
1,791,575
     
366,959
 
Non-controlling interest
   
202,479
     
8,127
 
Total stockholders' equity
   
1,994,054
     
375,086
 
Total liabilities and stockholders' equity
 
$
6,876,492
   
$
1,908,091
 


Condensed Consolidated Statements of Operations
For the years ended December 31, 2021, 2020 and 2019
(Unaudited, in thousands of U.S. dollars, except share and per share amounts)

   
Year Ended December 31,
 
   
2021
   
2020
   
2019
 
Revenues
                 
Operating revenue
 
$
930,816
   
$
318,311
   
$
145,500
 
Vessel charter revenue
   
230,809
     
-
     
-
 
Other revenue
   
161,185
     
133,339
     
43,625
 
Total revenues
   
1,322,810
     
451,650
     
189,125
 
                         
Operating expenses
                       
Cost of sales
   
616,010
     
278,767
     
183,359
 
Vessel operating expenses
   
51,677
     
-
     
-
 
Operations and maintenance
   
73,316
     
47,581
     
26,899
 
Selling, general and administrative
   
199,881
     
120,142
     
152,922
 
Transaction and integration costs
   
44,671
      4,028      
-
 
Contract termination charges and loss on mitigation sales
   
-
     
124,114
     
5,280
 
Depreciation and amortization
   
98,377
     
32,376
     
7,940
 
Total operating expenses
   
1,083,932
     
607,008
     
376,400
 
Operating income (loss)
   
238,878
     
(155,358
)
   
(187,275
)
Interest expense
   
154,324
     
65,723
     
19,412
 
Other (income) expense, net
   
(17,150
)
   
5,005
     
(2,807
)
Loss on extinguishment of debt
   
10,975
     
33,062
     
-
 
Net income (loss) before income from equity method investments and income taxes
   
90,729
     
(259,148
)
   
(203,880
)
Income from equity method investments
   
14,443
     
-
     
-
 
Tax provision
   
12,461
     
4,817
     
439
 
Net income (loss)
   
92,711
     
(263,965
)
   
(204,319
)
Net loss attributable to non-controlling interest
   
4,393
     
81,818
     
170,510
 
Net income (loss) attributable to stockholders
 
$
97,104
   
$
(182,147
)
 
$
(33,809
)
                         
Net income (loss) per share – basic
 
$
0.49
   
$
(1.71
)
 
$
(1.62
)
Net income (loss) per share – diluted
 
$
0.47
   
$
(1.71
)
 
$
(1.62
)
                         
Weighted average number of shares outstanding – basic
   
198,593,042
     
106,654,918
     
20,862,555
 
Weighted average number of shares outstanding – diluted
   
201,703,176
     
106,654,918
     
20,862,555
 
                         
Other comprehensive income (loss):
                       
Net income (loss)
 
$
92,711
   
$
(263,965
)
 
$
(204,319
)
Currency translation adjustment
   
3,489
     
(2,005
)
   
219
 
Comprehensive income (loss)
   
89,222
     
(261,960
)
   
(204,538
)
Comprehensive loss attributable to non-controlling interest
   
5,615
     
80,025
     
170,699
 
Comprehensive income (loss) attributable to stockholders
 
$
94,837
   
$
(181,935
)
 
$
(33,839
)


Condensed Consolidated Statements of Cash Flows
For the years ended December 31, 2021, 2020 and 2019
(Unaudited, in thousands of U.S. dollars)
 
 
Year Ended December 31,
 
   
2021
   
2020
   
2019
 
Cash flows from operating activities
                 
Net income (loss)
 
$
92,711
   
$
(263,965
)
 
$
(204,319
)
Adjustments for:
                       
Amortization of deferred financing costs and debt guarantee, net
   
14,116
     
10,519
     
5,873
 
Depreciation and amortization
   
99,544
     
33,303
     
8,641
 
(Earnings) of equity method investees
   
(14,443
)
   
-
     
-
 
Dividends received from equity method investees
   
21,365
     
-
     
-
 
Sales-type lease payments received in excess of interest income
   
2,348
     
-
     
-
 
Change in market value of derivatives
   
(8,691
)
   
-
     
-
 
Contract termination charges and loss on mitigation sales
   
-
     
19,114
     
2,622
 
Loss on extinguishment and financing expenses
   
10,975
     
37,090
     
-
 
Deferred taxes
   
(8,825
)
   
2,754
     
392
 
Change in value of Investment of equity securities
   
(8,254
)
   
-
     
-
 
Share-based compensation
   
37,043
     
8,743
     
41,205
 
Other
   
(5,271
)
   
4,341
     
1,247
 
Changes in operating assets and liabilities, net of acquisitions:
                       
(Increase) in receivables
   
(123,583
)
   
(26,795
)
   
(19,754
)
(Increase) Decrease in inventories
   
(11,152
)
   
23,230
     
(50,345
)
(Increase) in other assets
   
(1,839
)
   
(35,927
)
   
(39,344
)
Decrease in right-of-use assets
   
28,576
     
41,452
     
-
 
Increase in accounts payable/accrued liabilities
   
17,527
     
55,514
     
3,036
 
Increase (Decrease) in amounts due to affiliates
   
108
     
(1,272
)
   
5,771
 
(Decrease) in lease liabilities
   
(36,126
)
   
(42,094
)
   
-
 
(Decrease) Increase in other liabilities
   
(21,359
)
   
8,427
     
10,714
 
Net cash provided by (used in) operating activities
   
84,770
     
(125,566
)
   
(234,261
)
                         
Cash flows from investing activities
                       
Capital expenditures
   
(669,348
)
   
(156,995
)
   
(377,051
)
Cash paid for business combinations, net of cash acquired
   
(1,586,042
)
   
-
     
-
 
Entities acquired in asset acquisitions, net of cash acquired
   
(8,817
)
   
-
     
-
 
Other investing activities
   
(9,354
)
   
(636
)
   
887
 
Net cash used in investing activities
   
(2,273,561
)
   
(157,631
)
   
(376,164
)
                         
Cash flows from financing activities
                       
Proceeds from borrowings of debt
   
2,434,650
     
2,095,269
     
347,856
 
Payment of deferred financing costs
   
(37,811
)
   
(36,499
)
   
(8,259
)
Repayment of debt
   
(461,015
)
   
(1,490,002
)
   
(5,000
)
Proceeds from IPO
   
-
     
-
     
274,948
 
Proceeds from issuance of Class A common stock
   
-
     
291,992
     
-
 
Payments related to tax withholdings for share-based compensation
   
(30,124
)
   
(6,413
)
   
-
 
Payment of dividends
   
(88,756
)
   
(33,742
)
   
-
 
Payment of stock issuance costs
   
-
     
(1,107
)
   
(6,938
)
Net cash provided by financing activities
   
1,816,944
     
819,498
     
602,607
 
Impact of changes in foreign exchange rates on cash and cash equivalents
   
6,541
     
-
     
-
 
Net (decrease) increase in cash, cash equivalents and restricted cash
   
(365,306
)
   
536,301
     
(7,818
)
Cash, cash equivalents and restricted cash – beginning of period
   
629,336
     
93,035
     
100,853
 
Cash, cash equivalents and restricted cash – end of period
 
$
264,030
   
$
629,336
   
$
93,035
 
                         
Supplemental disclosure of non-cash investing and financing activities:
                       
Changes in accounts payable and accrued liabilities associated with construction in progress and property, plant and equipment additions
 
$
108,790
   
$
(12,786
)
 
$
(48,150
)
Liabilities associated with consideration paid for entities acquired in asset acquisitions
   
10,520
     
-
     
-
 
Consideration paid in shares for business combinations
   
1,400,784
     
-
     
-
 
Cash paid for interest, net of capitalized interest
   
154,249
     
27,255
     
6,765
 
Cash paid for taxes
   
17,319
     
58
     
28
 




The following information was filed by New Fortress Energy Llc (NFE) on Tuesday, March 1, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside New Fortress Energy Llc's 10-K Annual Report:

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Schedule Ii
Schedule Ii (Details)
Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Changes In Stockholders' Equity
Consolidated Statements Of Operations And Comprehensive Income (Loss)
Accrued Liabilities
Accrued Liabilities (Details)
Accrued Liabilities (Tables)
Acquisitions
Acquisitions (Tables)
Acquisitions, Asset Acquisitions (Details)
Acquisitions, Glng Management And Services Agreements (Details)
Acquisitions, Gmlp Merger (Details)
Acquisitions, Hygo Merger (Details)
Acquisitions, Unaudited Pro Forma Financial Information (Details)
Adoption Of New And Revised Standards
Commitments And Contingencies
Commitments And Contingencies (Details)
Construction In Progress
Construction In Progress (Details)
Construction In Progress (Tables)
Customer Concentrations
Customer Concentrations (Details)
Debt
Debt (Tables)
Debt, 2025 Senior Secured Notes (Details)
Debt, 2026 Senior Secured Notes (Details)
Debt, Chp Facility (Details)
Debt, Debenture Loan (Details)
Debt, Interest Expense (Details)
Debt, Lessor Vie Debt (Details)
Debt, Long-Term Debt (Details)
Debt, Outstanding Debt Repayable (Details)
Debt, Revolving Facility (Details)
Debt, Vessel Term Loan Facility (Details)
Earnings Per Share
Earnings Per Share (Details)
Earnings Per Share (Tables)
Equity Method Investments
Equity Method Investments (Tables)
Equity Method Investments, Carrying Amount Of Equity Method Investments (Details)
Equity Method Investments, Celsepar (Details)
Equity Method Investments, Changes In Equity Method Investments (Details)
Equity Method Investments, Hilli Llc (Details)
Financial Instruments
Financial Instruments (Tables)
Financial Instruments, Fair Value (Details)
Financial Instruments, Interest Rate And Currency Risk Management (Details)
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables)
Goodwill And Intangible Assets, Composition Of Intangible Assets (Details)
Goodwill And Intangible Assets, Estimated Aggregate Amortization Expense (Details)
Goodwill And Intangible Assets, Goodwill (Details)
Income Taxes
Income Taxes (Tables)
Income Taxes, Changes In Valuation Allowance On Deferred Tax Assets (Details)
Income Taxes, Components Of Income (Loss) Before Income Taxes (Details)
Income Taxes, Income Tax Examinations, Undistributed Earnings And Preferential Tax Rates (Details)
Income Taxes, Income Tax Expense (Details)
Income Taxes, Reconciliation Of Income Tax To Effective Tax Rate (Details)
Income Taxes, Significant Deferred Tax Asset Or Liability (Details)
Income Taxes, Uncertain Taxes (Details)
Inventory
Inventory (Details)
Inventory (Tables)
Leases, As Lessee
Leases, As Lessee (Tables)
Leases, As Lessee, As Lessee, Right-Of-Use Assets, Current Lease Liabilities And Non-Current Lease Liabilities (Details)
Leases, As Lessee, Components Of Operating Lease Costs (Details)
Leases, As Lessee, Future Payments Due Under Operating And Finance Leases (Details)
Leases, As Lessee, Supplemental Cash Flow Information (Details)
Organization
Organization (Details)
Other Current Liabilities
Other Current Liabilities (Details)
Other Current Liabilities (Tables)
Other Non-Current Assets
Other Non-Current Assets (Details)
Other Non-Current Assets (Tables)
Prepaid Expenses And Other Current Assets
Prepaid Expenses And Other Current Assets (Details)
Prepaid Expenses And Other Current Assets (Tables)
Property, Plant And Equipment, Net
Property, Plant And Equipment, Net (Details)
Property, Plant And Equipment, Net (Tables)
Related Party Transactions
Related Party Transactions, Agency Agreement With Pt Pesona Sentra Utama (Details)
Related Party Transactions, Celse Inventory Purchases (Details)
Related Party Transactions, Hilli Guarantees (Details)
Related Party Transactions, Summary (Details)
Restricted Cash
Restricted Cash (Details)
Restricted Cash (Tables)
Revenue Recognition
Revenue Recognition (Tables)
Revenue Recognition, Lessor Arrangements, Future Lease Payments (Details)
Revenue Recognition, Lessor Arrangements, Property, Plant And Equipment And Lease Income (Details)
Revenue Recognition, Summary Of Other Revenue (Details)
Segments
Segments (Tables)
Segments, Reconciliation Of Net Income (Loss) To Operating Margin (Details)
Segments, Summary Of Segment Information (Details)
Share-Based Compensation
Share-Based Compensation (Details)
Share-Based Compensation (Tables)
Significant Accounting Policies
Significant Accounting Policies (Policies)
Significant Accounting Policies (Tables)
Significant Accounting Policies, Contract Termination Charges And Loss On Mitigation Sales (Details)
Significant Accounting Policies, Goodwill (Details)
Significant Accounting Policies, Impairment Of Long-Lived Assets (Details)
Significant Accounting Policies, Property Plant And Equipment Net (Details)
Significant Accounting Policies, Revenue Recognition (Details)
Significant Accounting Policies, Taxation (Details)
Subsequent Events
Subsequent Events (Details)
Vies
Vies (Tables)
Vies, Assets And Liabilities Of Lessor Vies (Details)
Vies, Lessor Vies (Details)
Vies, Other Vies (Details)
Vies, Summary Of Payment Obligations (Details)
Vies, Summary Of Sale And Leaseback Arrangements (Details)
Ticker: NFE
CIK: 1749723
Form Type: 10-K Annual Report
Accession Number: 0001140361-22-007364
Submitted to the SEC: Tue Mar 01 2022 5:15:59 PM EST
Accepted by the SEC: Tue Mar 01 2022
Period: Friday, December 31, 2021
Industry: Natural Gas Distribution

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