NewFortress Energy Results Presentation Deck
Endnotes
(19) "Illustrative Adj. EBITDA Goal" means our goal for Adj. EBITDA under certain illustrative conditions, presented on a run rate basis by multiplying the Illustrative Adj. EBITDA Goal average
volume we expect to sell in the last quarter of the relevant period by four.
"Adj. EBITDA" is calculated by taking the net loss, plus (i) depreciation and amortization, (ii) interest expense, (iii) other expense or income, (iv) contract termination charges or loss on mitigation
sales, (v) loss on extinguishment of debt, (iv) tax expense, and (vii) adjusted for expenses not otherwise indicative of our ongoing performance, including non-cash share-based compensation
expense and non-capitalizable development-related expenses.
Adj. EBITDA 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 certain selling, general and administrative costs. Our current cost of natural gas per MMBtu are higher than the costs we would need to achieve our Illustrative Adj. EBITDA
Goal, 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 Illustrative Adj. EBITDA Goal 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.
(20) "Debt / Illustrative Adj. EBITDA Goal" is calculated by dividing our total debt of $980mm by our Illustrative Adj. EBIDTA Goal for each period. For more information about Illustrative Adj.
EBITDA Goal please see Endnote 19.
(21) "Committed" means our expected volumes to be sold to customers under (i) binding contracts, (ii) non-binding letters of intent, (iii) non-binding memorandums of understanding, (iv) binding
or non-binding term sheets or (v) have been officially selected as the winning provider in a request for proposals or competitive bid process, in each case, as of the period specified in the
Presentation. Some, but not all, of our contracts contain minimum volume commitments, and our expected volumes to be sold to customers reflected in the Presentation are substantially in excess
of such minimum volume commitments. Our near-term ability to sell these volumes is dependent on our customers' continued willingness and ability to continue purchasing these volumes and
to perform their obligations under their respective contracts. If any of our customers fails to continue to make such purchases or fails to perform its obligations under its contract, our operating
results, cash flow and liquidity could be materially and adversely affected. References to Committed Volumes in the future and percentages of these volumes in the future should not be viewed
as guidance or management's view of the Company's projected earnings, is not based on the Company's historical operating results, which are limited, and does not purport to be an actual
representation of our future economics.
(22) "Capacity" refers to the technical, regulatory or physical limitation on our facility's volume capacity, which could be our physical or permissioned capability to deliver LNG to the facility,
landed or floating storage capacity at the facility, the loading or unloading rate of LNG or natural gas to or from the facility, or the technical capacity of the regasification equipment. For our
projects in development, these capacity volumes represent our estimates of the limiting technical, regulatory or physical factor based on regulatory, technical and engineering advice that
management has received. "Available Capacity" is the Capacity of each facility, less the Run-Rate Volumes from Committed customers as illustrated on this Slide 12.
(23) Our Operating assets during the second quarter of 2020 were the Montego Bay Facility, Miami Facility, Old Harbour Facility and San Juan Facility year to date through July 29, 2020. These
metrics are tracked by management through formal reporting systems and informal escalation paths. There can be no assurance that we will achieve similar results in the future and future results
could differ materially from previous results. The results of any particular facility are not representative of the results of facilities as a whole, and as our operating history is limited, past performance
is not a reliable indicator of future results and should not be relied upon for any reason.
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