NewFortress Energy Results Presentation Deck
Endnotes
(13) Refers to the corporate family credit rating that NFE received from Moody's and S&P. There can be no assurance that NFE will become an investment grade company on the timeline that we
expect or at all. There are many factors that impact borrowing costs and our ability to refinance our debt or raise funds in the future, so there can be no assurance that rated debt would allow us
to reduce our borrowing costs or lower our interest rate.
(14) There are many factors that impact borrowing costs and our ability to refinance our debt or raise funds in the future, so there can be no assurance that rated debt or any other development
discussed in this Presentation would allow us to refinance our debt to reduce our borrowing costs or lower our interest rate.
(15) "free cash flow" means our goal for free cash flow under certain illustrative conditions, presented on a run rate basis by multiplying the free cash flow average volume we expect to sell in the
last quarter of the relevant period by four.
"free cash flow" is calculated by taking the net loss, plus (i) depreciation and amortization, (ii) non-cash interest expense, (iii) other expense or income, (iv) Contract termination charges and Loss
on mitigation sales, (v) loss on extinguishment of debt, (vi) tax expense, and (vii) adjustments for expenses not otherwise indicative of our ongoing performance, including non-cash share-based
compensation expense and non-capitalizable development-related expenses.
free cash flow would not include expenses and income that are required by GAAP to be recorded on our financial statements, including the return of or return on capital expenditures for the
relevant project, and selling, general and administrative costs. Our current cost of natural gas per MMBtu are higher than the costs we would need to achieve a free cash flow which would make it
appropriate to distribute dividends, and the primary drivers for reducing these costs are the reduced costs of purchasing gas and the increased sales volumes, which result in lower fixed costs
being spread over a larger number of MMBtus sold. References to volumes, percentages of such volumes and the free cash flow goals related to such volumes (i) are not based on the Company's
historical operating results, which are limited, and (ii) do not purport to be an actual representation of our future economics. We cannot assure you if or when we will enter into contracts for sales
of additional LNG, the price at which we will be able to sell such LNG, or our costs to produce and sell such LNG. Actual results could differ materially from the illustration and there can be no
assurance we will achieve our goal.
(16) Regarding the Company's future consideration of paying a dividend, any decision regarding the payment of a dividend would be subject to evaluation and approval by our Board of
Directors on a quarterly basis. In making such a determination, the Board of Directors would evaluate factors it deems relevant, including, but not limited to, the Company's current and projected
financial condition and available liquidity; investment and other capital needs; contractual obligations; and other factors deemed relevant by the Board of Directors in making its determination.
There can be no assurance that the Board of Directors will declare a dividend in the future or, if any dividend is declared, the timing or amount of any dividend declared.
(17) Based on the total assets under management for the yield and income funds in the United States and Canada, based on data from NASDAQ.
(18) "Operational" or "Turning On" with respect to a particular project means we expect gas to be made available within thirty (30) days, gas has been made available to the relevant project, or
that the relevant project is in full commercial operations. Where gas is going to be made available or has been made available but full commercial operations have not yet begun, full
commercial operations will occur later than, and may occur substantially later than, our reported Operational date. We cannot assure you if or when such projects will reach full commercial
operations. Actual results could differ materially from the illustrations reflected in this presentation and there can be no assurance we will achieve our goals.
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