Josh Kane from investor relations started the conference call by welcoming all the participants to the investor update call. He introduced Wes Edens, the CEO and Chairman of the New Fortress Energy board, and Andrew Date, the company representative based in Brazil. All the participants in the conference call included:
- a) Josh Kane- Investor relations
- b) Wes Edens- Chairman and chief executive officer
- c) Andrew Dete-Managing director
Conference Call Participants
- a) Alonso Guerra García-Scotiabank
- b) Max Yaras-Morgan Stanley
- c) Sean morgan- Evercore
- d) Greg Lewis-BTIG
- e) Martin Malloy-Johnson rice.
The call’s purpose was to answer some questions that had arisen in the previous week over the Brazil market opportunity. Members received instructions to download the reference materials from the company’s website before Wes took over.
Wes Edens welcomed everyone and reminded them that the call’s goal was to take them through Brazil’s market opportunity. The CEO announced the separate transactions the previous week. The total enterprise value was $5.1 billion. The already paid amount was $2 billion, the equity value is $2.18 billion. The company planned to make a cash payment of $580 million while $1.6 billion was to come from NFE shares.
Wes Edens further informed members that they had already bought 288 million megawatts worth of PPA’s. There were plans to purchase Golar LNG Partners’ common stock for $1.5 billion, all in cash. The CEO echoed that their business was selling power and gas in developing countries, providing capital, infrastructure, assets, and people expertise. He pointed out that the market demand for these products was tremendous.
Wes Edens, answering the central question as to why the investment was to occur in Brazil, explained that there was a ready market there. Brazil’s population is high, hence a considerable need for the products that the company was providing. Andrew Dete, the New Fortress representative as he spoke, confirmed this market opportunity in Brazil. On the query about the payments, Wes told the members that the company could handle them. Wes answered all questions satisfactorily, and the operator concluded the conference call.