NEW FORTRESS ENERGY LLC (NYSE:NFE) Q1 2019 Earnings Conference Call - Final Transcript

May 15, 2019 • 08:30 am ET


NEW FORTRESS ENERGY LLC (NYSE:NFE) Q1 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen. Welcome to the NFE First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question and answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this call will be recorded. I would now like to introduce your host for today's conference, Sara Yakin, Head of Investor Relations. Please go ahead.

Sara Yakin

Thank you, Chris, and good morning, everyone. I would like to welcome you today to New Fortress Energy's First Quarter 2019 Earnings Call. Joining me today are Wes Edens, our CEO and Chairman of the Board, Chris Guinta, our CFO and Brannen McElmurray, our Head of Development.

Throughout the call, we're going to reference the earnings supplement that was posted to the New Fortress Energy website this morning. If you have not already done so, I would suggest that you download it now.

Before I turn the call over to Wes, I would like to point out that certain statements made today will be forward-looking statements. These statements by their nature are uncertain and may differ materially from actual results. I encourage you to review the disclaimers in our press release and earnings supplement regarding forward-looking statements and to review the risk factors contained in our annual and quarterly reports filed with the SEC. In addition, we will be discussing some non-GAAP financial measures during today's call. A reconciliation of these measures to the most directly comparable GAAP measures can be found in our earnings supplement.

With that, I'd like to turn the call over to Wes.

Wesley R. Edens

Great. Thanks, Sara, and welcome, everyone. As Sara said, we posted on our webpage, the website the presentation which we're referring to, so if you could turn to page two, I'll start there. First quarter was the last quarter that we'll have as a company before volumes really start to come in and accelerate. So the earnings for the quarter are actually negative as we're just starting the ramp up. So, operating margin, which is our defined cash flow at the terminals themselves, a loss of $7.9 million. Total loss for the quarter, $60 million, of which about half of that were one-time expenses related to the IPO and public market activity. So that'll be the end of that.

Q2 is when we begin to see significant ramp-up of our volumes. And as you can see -- and we'll go through this in detail on the next page -- the numbers accelerate actually rapidly. So, first quarter this year, negative $7.9 million. Using the contractual cash flows, first quarter 2020, $262 million. End of next year as we're fully ramped up on these three properties -- Jamaica, Puerto Rico, and Mexico -- $322 million.

In the quarter, committed and in-discussion volumes increased substantially year-over-year. In addition, there's a significant shadow book behind us, a tremendous amount of commercial activity that we are very optimistic about, and we think that you're going to see significant amounts