NEW YORK–(BUSINESS WIRE)–New Fortress Energy Inc. (NASDAQ: NFE) (“NFE”) and Apollo (NYSE: APO) announced today that they have entered into their previously announced joint venture (the “JV” or the “Platform”) to establish a Platform that now owns and operates 11 Liquefied Natural Gas (“LNG”) infrastructure vessels consisting of floating storage and regasification facilities, floating storage vessels and LNG carriers. The platform is named Energos Infrastructure (“Energos”) and is approximately 80% owned by Apollo managed funds and 20% owned by NFE.
Apollo and NFE also announced Energos’ leadership team, led by newly appointed Chief Executive Officer Arthur Regan. Regan is an experienced marine industry chief executive and operating partner of Apollo, having founded and led both public and private equity companies over the past three decades. He began his career as an officer on merchant ships, including as a captain. Regan will also serve as a director on the Energos board of directors. In addition, Kevin Kilcullen has been appointed Chief Financial Officer of Energos. Kilcullen was previously CFO at publicly traded Diamond S Shipping until the completion of its recent merger transaction.
Energos is a global maritime infrastructure platform, underpinned by long-term contracts and benefiting from NFE’s downstream LNG operations and development activities, as well as Apollo’s leading investment and maritime experience. The platform provides critical LNG delivery, storage and regasification infrastructure for energy countries around the world, which can reduce their reliance on oil and coal to reduce carbon emissions and potentially deliver significant cost savings. In addition to servicing NFE projects worldwide, the platform also serves a diversified customer base of utilities and energy companies worldwide under third-party contracts.
The 11-vessel portfolio consists of 6 Floating Storage and Regasification Units (“FSRUs”), 2 LNG Tankers (“LNGCs”) and 3 Floating Storage Units (“FSUs”). As part of the transaction, NFE has agreed to charter ten of the vessels from the platform for a period of up to 20 years, and those charters have commenced immediately or will commence upon the expiry of the vessels’ existing third-party charter agreements. The platform will also seek growth opportunities to support both NFEs and third parties to support the energy transition and strengthen energy security globally.
“Reliable energy infrastructure is essential to addressing the global energy crisis and reducing emissions,” said Wes Edens, chairman and CEO of New Fortress Energy. “We are excited to work with Apollo to create a leading LNG company for marine infrastructure that will amplify our efforts to bring cleaner fuel and energy security to customers around the world.”
Brad Fierstein, Partner at Apollo, said, “Energy transition and energy reliability are global priorities and core to Apollo’s sustainable investment 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.”
Energos’ total implied business valuation is approximately $2 billion based on the JV transaction. Apollo Capital Solutions provided debt advisory and placement services to the JV and the debt financing was led by Brookfield Infrastructure Debt and also included a syndicate of other debt funds managed by Global Infrastructure Partners, HPS Investment Partners, LLC and Carlyle Global Credit. Investec Inc. and BMO Capital Markets Corp. completed the arrangement of revolving credit facilities in support of the transaction. NFE was advised on the transaction by Akin, Gump, 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 on the transaction.
Energos Infrastructure will be headquartered in Stamford, Connecticut.
About New Fortress Energy
New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company formed to help alleviate energy poverty and accelerate the world’s transition to reliable, affordable and clean energy. The company owns and operates natural gas and liquefied natural gas (LNG) infrastructure, vessels and logistics facilities 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 protection and transform local industries and communities around the world.
Apollo is a high-growth, global alternative wealth manager. In our wealth management business, we strive to provide our clients with excess return at every point of the risk-return spectrum from investment grade to private equity, focusing on three investment strategies: yield, hybrid and equity. For more than three decades, our investment expertise has met our clients’ financial return needs and provided companies with innovative capital solutions for growth through our fully integrated platform. With Athene, our retirement savings division, we specialize in helping clients achieve financial security by offering a range of retirement savings products and acting as a solution provider for institutions. Our patient, creative and knowledgeable approach to investing aligns our clients, the companies we invest in, our people and the communities we impact to expand opportunities and deliver positive outcomes. As of June 30, 2022, Apollo had approximately $515 billion in assets under management. To learn more, please visit www.apollo.com.
Cautionary Language Regarding Forward-Looking Statements
This release contains forward-looking statements. All statements contained in this release, other than historical information, are forward-looking statements, which involve known and unknown risks and relate to future events, our future financial performance or our projected business results. You can qualify these forward-looking statements by using forward-looking words such as “expect,” “may,” “will,” “about,” “forecast,” “intend,” “plan,” “estimate,” “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 the energy transition to accelerate; the Platform’s ability to own and operate the Vessels and serve a diversified customer base; the ability of the executive team to manage the operation of the platform; Benefit from the experience of the JV partners; the chartering of certain vessels to NFEs; anticipated growth strategy and ability to meet growing demand for cleaner fuels and energy security around the world; the ability of reliable energy infrastructure to address the ongoing global energy crisis and for a low-carbon future; total implied enterprise value; and the location of the platform. It is uncertain whether any of the events anticipated in the forward-looking statements will or will occur, or, if any of them occur, what effect they will have on the operating results and financial condition of the Platform, NFE and Apollo or the stock prices of such parties .
These forward-looking statements represent the Company’s expectations or beliefs regarding future events and the results described in this press release may 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 Company’s control, which could cause actual results to differ materially from those discussed in the forward-looking statements . Factors that could cause or contribute to such differences include, among others: the JV’s ability to implement its business platform, operate the vessels and realize anticipated efficiencies and benefits; general risks associated with new businesses; shared risks associated with joint ventures and successful integration of the companies, including the timing and amount of commitments or commitments to fund operating and/or capital expenditures, default by the joint venture, limited or no control over management, the business or the operation of the joint venture company and the subordination of creditors’ claims in the event of a liquidation or reorganization; non-payment or non-performance by any of the NFE’s or the JV’s customers or suppliers, including but not limited to non-payment or non-performance by any party to the Charters; the parties’ ability to implement their respective plans, projections 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; business interruption after the transaction; and the impact of public health crises, such as pandemics (including coronavirus (COVID-19)) and epidemics, and any related corporate or government policies and measures designed to protect the health and safety of individuals, or government policies or measures to maintain them the functioning of national or global economies and markets. These factors are not necessarily all important factors that could cause actual results to differ materially from those projected in NFE’s forward-looking statements. Other known or unpredictable factors could also have a material adverse effect on future results.
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