New Fortress Energy Inc. (NASDAQ: NFE) (“NFE”) and Apollo (NYSE: APO) today announced that it has entered into the previously announced joint venture (the “JV” or the “Platform”), establishing a platform which now owns and operates 11 liquefied natural gas (“LNG”) infrastructure vessels consisting of floating storage and regasification assets, floating storage vessels and LNG carriers. The platform has been named Energos Infrastructure (“Energos”) and is owned approximately 80% by funds managed by Apollo and 20% by NFE.
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Apollo and NFE also announced Energos’ management team, led by new chief executive Arthur Regan. Regan is a seasoned maritime industry general manager and operating partner of Apollo, having built and led publicly traded and privately held maritime businesses for the past three decades. He began his career as an officer on merchant ships, notably sailing as a captain. Regan will also serve as a director of the Energos board of directors. Additionally, Kevin Kilcullen has been appointed Chief Financial Officer of Energos. Kilcullen was previously chief financial officer at publicly traded Diamond S Shipping until the close of its recent merger deal.
Energos is a global marine infrastructure platform backed by long-term contracts, benefiting from NFE’s downstream LNG exploration and development activities, as well as the leading maritime and investment experience of NFE. ‘Apollo. The platform provides essential infrastructure for the delivery, storage and regasification of LNG to supply countries around the world, which can reduce their dependence on oil and coal to reduce carbon emissions and enable cost savings. potentially substantial. In addition to serving NFE’s projects globally, the platform also serves a diverse customer base of utilities and energy companies around the world under third-party charters.
The portfolio of 11 vessels includes 6 floating storage and regasification units (“FSRU”), 2 LNG carriers (“LNGC”) and 3 floating storage units (“FSU”). As part of the transaction, NFE agreed to charter ten of the platform’s vessels for a period of up to 20 years, and these charters commenced immediately or will commence upon the expiration of existing third-party charter agreements. ships. The platform will also seek growth opportunities in support of both ENF and third parties to support the energy transition and strengthen energy security globally.
“Reliable energy infrastructure is critical to addressing the global energy crisis and reducing emissions,” said Wes Edens, president and CEO of New Fortress Energy. “We are excited to partner with Apollo to launch a leading LNG maritime infrastructure company that will enhance our efforts to bring cleaner fuel and energy security to customers around the world.”
Brad Fierstein, Apollo Partner, said, “Energy transition and energy reliability are global priorities and are at the heart of Apollo’s sustainable investing platform. We are very pleased to complete the JV transaction with NFE and to have an industry veteran like Art at the helm, leading the company into its next phase.
The total implied business valuation of Energos is approximately $2 billion based on the JV transaction. Apollo Capital Solutions provided debt advisory and investment services for the joint venture and the debt financing was led by Brookfield Infrastructure Debt and also included a syndicate of other credit funds managed by Global Infrastructure Partners, HPS Investment Partners, LLC and Carlyle Global Credit. Investec Inc. and BMO Capital Markets Corp. led the arrangement of revolving credit facilities to support the transaction. NFE was advised by Akin, Gump in the transaction, Apollo was advised by Vinson & Elkins LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP, and the Credit Group was advised by Milbank LLP. Morgan Stanley and DnB Capital Markets acted as financial advisors to NFE in connection with the transaction.
Energos Infrastructure will establish its headquarters in Stamford, CT.
About New Fortress Energy
New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to help alleviate energy poverty and accelerate the global transition to reliable, affordable and clean energy. The company owns and operates natural gas and liquefied natural gas (LNG) infrastructure, vessels and logistics assets to rapidly deliver turnkey energy solutions to global markets. Collectively, the company’s assets and operations aim to support global energy security, enable economic growth, improve environmental stewardship, and transform industries and local communities around the world.
About Apollo
Apollo is a high growth global alternative asset manager. In our asset management business, we seek to provide our clients with excess return at every stage of the risk-reward spectrum, from investment grade to private equity, with a focus on three investment strategies : yield, hybrid and equities. For more than three decades, our investment expertise on our fully integrated platform has met the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by offering a range of retirement savings products and acting as a solution provider to institutions. Our patient, creative and knowledgeable approach to investing aligns our clients, the companies we invest in, our employees and the communities we impact, to expand opportunities and achieve positive results. As of June 30, 2022, Apollo had approximately $515 billion in assets under management. To learn more, please visit www.apollo.com.
Caution Regarding Forward-Looking Statements
This communication contains forward-looking statements. All statements in this communication other than historical information are forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance or our projected business results. You can identify these forward-looking statements by using forward-looking words such as “expects”, “may”, “will”, “approximately”, “predicts”, “intends”, “plans”, “estimates”. , “anticipate”, or the negative version of these words or other comparable words. Forward-looking statements include: the platform’s ability to support reliable, cleaner and more affordable energy to support the transition, reduce countries’ dependence on oil and coal, reduce carbon emissions and enable cost savings, and accelerate the energy transition; the Platform’s ability to own and operate the vessels and serve a diverse customer base; the ability of the management team to manage the operations of the Platform; benefits to be drawn from the experience of the JV partners; the chartering of certain vessels to NFE; anticipated growth strategy and ability to meet growing demand for cleaner fuels and energy security globally; the ability of reliable energy infrastructure to address the current global energy crisis and a low-carbon future; total implied enterprise value; and the location of the Platform. There is no certainty that any of the events anticipated by the forward-looking statements will occur or occur, or if any of them occur, what impact it will have on the results of operations and financial condition of the platform, NFE and Apollo or the stock price of these parties.
These forward-looking statements represent the Company’s expectations or beliefs regarding future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are necessarily estimates based on current information and are subject to risks, uncertainties and other factors, many of which are beyond the control of the Company, which could cause actual results to differ materially from results. discussed in the forward-looking statements. statements. Factors that could cause or contribute to such differences include, but are not limited to: the joint venture’s ability to implement its business platform, operate the vessels and realize the efficiencies and benefits planned; common risks associated with new businesses; common risks associated with joint ventures and the successful integration of businesses, including the timing and amount of operating and/or capital expenditure funding commitments or obligations, non-performance by the joint venture, limited or no control over the management, business or operations of the joint venture joint venture and subordination of creditors’ claims in the event of liquidation or reorganization; non-payment or non-performance by any of NFE’s or the JV’s customers or suppliers, including, without limitation, non-payment or non-performance by any of the charter parties; the ability of the parties to implement their respective plans, forecasts and other expectations; adverse regional, national or international economic conditions, adverse capital market conditions and adverse political developments; volatility in the price or demand for LNG products; disruption of business following the transaction; and the impact of public health crises, such as pandemics (including the coronavirus (COVID-19)) and epidemics and any related corporate or governmental policies and actions to protect the health and safety of individuals or government policies or actions to keep national systems functioning. or global economies and markets. These factors are not necessarily all important factors that could cause actual results to differ materially from those expressed in NFE’s forward-looking statements. Other known or unpredictable factors could also have a material adverse effect on future results.
Any forward-looking statement speaks only as of the date on which it is made and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time and it is not possible for the Company to predict all of these factors. When reviewing these forward-looking statements, you should keep in mind the risk factors and other cautionary statements contained in our annual report, quarterly reports and other reports filed with the SEC, which could cause its actual results differ materially from those contained in any forward-looking statements. search statement. We assume no obligation to update these forward-looking statements, although our circumstances may change in the future.
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