New Fortress Energy Inc. (NASDAQ: NFE)

New Fortress Energy Inc. is a global energy infrastructure company that focuses on providing natural gas and liquefied natural gas solutions to markets around the world. The company owns and operates terminals pipelines storage facilities and an integrated fleet of ships to deliver LNG and natural gas to power plants industrial users and utilities. In addition New Fortress Energy Inc. has developed a modular liquefaction technology known as Fast LNG to produce low cost LNG supply for its own terminals and for third party customers. The firm aims to address energy poverty and support the transition to reliable affordable and cleaner energy sources.

New Fortress Energy Inc. generates revenue primarily through the sale of LNG and natural gas to its downstream customers and through the provision of power generation services under long term power purchase agreements. The company also earns charter revenue from vessels that are leased to third parties under time charter arrangements. Service fees from operations and maintenance contracts such as the agreement with the Puerto Rico Electric Power Authority for thermal generation assets contribute to income. Additionally the firm derives income from the sale of cargoes and from the utilization of its own Fast LNG production to supply its terminals.

The company operates through the following segments: Terminals and Infrastructure and Ships.

• Terminals and Infrastructure includes the full value chain from natural gas procurement and liquefaction to logistics storage and regasification. This segment operates terminals in Puerto Rico Mexico and Brazil and manages the associated pipelines and power generation facilities. It also encompasses the company’s own LNG production from the Fast LNG units and the coordination of vessel deployment for its terminal operations.

• The Ships segment consists of floating storage and regasification units floating storage units and LNG carriers. Certain of these vessels are currently chartered to third parties under long term agreements and are part of the Energos Formation Transaction. As those charters expire the company plans to redeploy the vessels for its own terminal operations thereby moving them into the Terminals and Infrastructure segment.

New Fortress Energy Inc. occupies a competitive position in the global LNG market as an integrated provider that controls both supply and logistics assets. The company faces competition from other large LNG exporters and midstream firms such as Cheniere Energy Tellurian and various national oil companies. Its competitive advantages stem from its proprietary Fast LNG technology which enables faster and lower cost liquefaction projects and from its fleet of ships that can be redirected between third party charters and internal use. Long term take or pay contracts with utilities and industrial customers also provide a stable revenue base.

The company serves a diversified customer base that includes major utilities and industrial users. Specific customers named in the filing are the Puerto Rico Electric Power Authority (PREPA) and Comisión Federal de Electricidad (CFE) which is Mexico’s national power utility. New Fortress Energy Inc. also supplies natural gas to the Alunorte alumina refinery in Brazil through a subsidiary of Norsk Hydro ASA. Additional customers include power producers under its various power purchase agreements and industrial end users that receive LNG via truck loading facilities at its terminals.