New Fortress Energy Inc. (NASDAQ:NFE) Q3 2023 Earnings Call Transcript

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So I think the short answer is the Army Corps program is $5 billion. They publicly announced it. They will scope that out over the coming months, and then we will participate and compete. And so far, we’re to an out. So I feel pretty good about that.

Chris Robertson: Okay. So yes, to clarify, it could include additional downstream power generation assets and not just selling gas into the market.

Brannen McElmurray: Correct. I think the — probably a way to think about it is it’s very similar to the two projects that we’ve completed, which is 350 megawatts. They just may be at different locations.

Chris Robertson: Okay. Great. That’s super helpful. Thank you.

Brannen McElmurray: You’re welcome.

Wesley Edens: Craig, maybe just to wrap up because I think we’ve done other questions. The nine years since we started the company, spent $7.5 billion building of infrastructure, have seven terminals that are now up and six of them are operational, dominant positions in Brazil and Puerto Rico. The scale of the business now is truly massive. $2.5 billion roughly in revenue expected for this year. We expect to roughly double that revenue for next year, so $2.5 billion going to something close to $5 billion. The conversion of that into free cash flow is probably between 40% to 45%. And we trade at the lowest multiple in any infrastructure company I’m aware of on planet Earth. So it’s good to be first at something, I guess. But with respect to the kind of valuation, obviously, I’m disappointed, but I expect that will change meaningfully as we actually deliver these results in Q4 and Q1 end points thereafter.

And so I think we will get the investors that we deserve, and we’ll get the valuation that we deserve. And for those of you that are investors in now, I think we’ll be very well rewarded for it. But really a terrific year for us to date. I think it sets us up extremely well both the end of the year and for next year with all the big changes not only in Puerto Rico, but in Brazil and other markets around the globe, something that we don’t talk about a lot is the developments that we’ve had in the hydrogen business. That is a business that is, we think, the dominant hydrogen business in the United States on the green side as far as I’m aware, it may well be the only meaningfully profitable hydrogen business that comes out of the IRA at this point.

The business plan that Ken and others have come up with is one that I really support, which basically is to turn the hydrogen business into a production that actually occurs at the place where it’s used. So you take — first, you solve a chemistry problem and the transportation problem to solve for because you’re actually utilizing right where you’re making it in place. So it’s a very, very exciting time for the company, and we feel great about the quarter that just concluded and the prospects that are going forward. And I want to thank everyone for taking the time to listen. And we look forward to updating you on our full-year results in Q4 sometime early next year. Thank you.

Operator: And that was our final question from the audience today. Mr. Pipitone, I’ll turn it back to you, sir, for any additional or closing remarks you may have.

Chance Pipitone: Yes. Thank you, Melinda, and thank you, everyone, for joining us today. Again, we remain available as always to answer any questions, please just contact the Investor Relations team. And thank you again. Enjoy the rest of your day.

Operator: This concludes today’s teleconference. We thank you for your participation. You may disconnect your lines at any time.

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