New Fortress Energy (NFE) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Our ability to continue as a going concern is dependent upon our ability to complete certain transactions and delay capital expenditures
2. 02Our ability to implement our business strategy may be materially and adversely affected by many known and unknown factors
3. 03We are subject to various construction risks
4. 04Operation of our infrastructure, facilities and vessels involves significant risks
5. 05We depend on third-party contractors, operators and suppliers
6. 06Failure of LNG to be a competitive source of energy in the markets in which we operate, and seek to operate, could adversely affect our expansion strategy
7. 07We operate in a highly regulated environment and our operations could be adversely affected by actions by governmental entities or changes to regulations and legislation
8. 08Failure to obtain and maintain permits, approvals and authorizations from governmental and regulatory agencies and third parties on favorable terms could impede operations and construction
9. 09When we invest significant capital to develop a project, we are subject to the risk that the project is not successfully developed and that our customers do not fulfill their payment obligations to us following our capital investment in a project
10. 10Failure to maintain sufficient working capital could limit our growth and harm our business, financial condition and results of operations
11. 11Our ability to generate revenues is substantially dependent on our current and future long-term agreements and the performance by customers under such agreements
12. 12Our current lack of asset and geographic diversification could have an adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and prospects
13. 13Because we are currently dependent upon a limited number of customers, the loss of a significant customer could adversely affect our operating results
14. 14We may not be able to convert our anticipated customer pipeline into binding long-term contracts, and if we fail to convert potential sales into actual sales, we will not generate the revenues and profits we anticipate
15. 15Our contracts with our customers are subject to termination under certain circumstances
16. 16Competition in the LNG industry is intense, and some of our competitors have greater financial, technological and other resources than we currently possess
17. 17Cyclical or other changes in the demand for and price of LNG and natural gas may adversely affect our business and the performance of our customers
18. 18Our risk management strategies cannot eliminate all LNG price and supply risks. In addition, any non-compliance with our risk management strategies could result in significant financial losses
19. 19Any use of hedging arrangements may adversely affect our future operating results or liquidity
20. 20We are dependent on third-party LNG suppliers and the development of our own portfolio is subject to various risks and assumptions
21. 21LNG that is processed, transported and/or stored on FSRUs and transported via pipeline is subject to risk of loss or damage
22. 22We rely on tankers and other vessels outside of our fleet for our LNG transportation and transfer
23. 23Hire rates for FSRUs and LNG carriers may fluctuate substantially. If rates are lower when we are seeking a new charter, our earnings may decline
24. 24We may not be able to fully utilize the capacity of our FSRUs and other facilities
25. 25The operation of our vessels is dependent on our ability to deploy our vessels to an NFE terminal or to long-term charters
26. 26Vessel values may fluctuate substantially and, if these values are lower at a time when we are attempting to dispose of vessels, we may incur a loss
27. 27Maritime claimants could arrest our vessels, which could interrupt our cash flow
28. 28We seek to develop innovative and new technologies as part of our strategy that are not yet proven and may not realize the time and cost savings we expect to achieve
29. 29Technological innovation may impair the economic attractiveness of our projects
30. 30Our Fast LNG technology is not yet proven and we may not be able to implement it as planned or at all
31. 31Our data center infrastructure business has no operating history, and we may not recognize revenue or operating income in the future
32. 32Our data center business strategy depends on the successful development of our projects and any delays or unexpected costs associated with such projects may harm our growth prospects, future operating results and financial condition
33. 33Our data center business model depends upon the demand for data centers
34. 34We have incurred, and may in the future incur, a significant amount of debt. The agreements governing our significant indebtedness place restrictions on us and our subsidiaries, reducing operational and financing flexibility and creating default risks
35. 35Despite our substantial level of indebtedness, we and our subsidiaries will be permitted to incur additional indebtedness in the future. This could further exacerbate the risks associated with our substantial indebtedness
36. 36Our business is dependent upon obtaining substantial additional funding from various sources, which may not be available or may only be available on unfavorable terms
37. 37We have entered into, and may in the future enter into or modify existing, joint ventures that might restrict our operational and corporate flexibility or require credit support
38. 38The swaps regulatory and other provisions of the Dodd-Frank Act and the rules adopted thereunder and other regulations, including EMIR and REMIT, could adversely affect our ability to hedge risks associated with our business and our operating results and cash flows
39. 39We may incur impairments to long-lived assets
40. 40Weather events or other natural or manmade disasters or phenomena, some of which may be adversely impacted by global climate change, could have a material adverse effect on our operations and projects, as well as on the economies in the markets in which we operate or plan to operate
41. 41Existing and future environmental, social, health and safety laws and regulations could result in increased or more stringent compliance requirements, which may be difficult to comply with or result in additional costs and may otherwise lead to significant liabilities and reputational damage
42. 42changes. Such regulations are subject to change, and it is possible that ASEA or other Mexican regulatory bodies may impose new or revised requirements that could increase our operating costs and/or capital expenditures for operations in Mexican offshore waters
43. 43We are subject to numerous governmental export laws, and trade and economic sanctions laws and regulations, and anti-corruption laws and regulation
44. 44Our charterers may inadvertently violate applicable sanctions and/or call on ports located in, or engage in transactions with, countries that are subject to restrictions imposed by the U.S. or other governments, which could adversely affect their business
45. 45Increasing transportation regulations may increase our costs and negatively impact our results of operations
46. 46Our chartered vessels operating in certain jurisdictions, including the United States, now or in the future, may be subject to cabotage laws, including the Merchant Marine Act of 1920, as amended (the “Jones Act”)
47. 47We may not own the land on which our projects are located and are subject to leases, rights-of-ways, easements and other property rights for our operations
48. 48We could be negatively impacted by environmental, social, and governance (“ESG”) and sustainability-related matters
49. 49Information technology failures and cyberattacks could affect us significantly
50. 50Our insurance may be insufficient to cover losses that may occur to our property or result from our operations
51. 51Our success depends on key members of our management, the loss of any of whom could disrupt our business operations
52. 52We may experience increased labor costs and regulation, and the unavailability of skilled workers or our failure to attract and retain qualified personnel, as well as our ability to comply with such labor laws, could adversely affect us
53. 53Our business could be affected adversely by labor disputes, strikes or work stoppages

Risks Related to the Jurisdictions in Which We Operate

1. 54We are subject to the economic, political, social and other conditions in the jurisdictions in which we operate
2. 55Our financial condition and operating results may be adversely affected by foreign exchange fluctuations

Risks Related to Ownership of Our Class A Common Stock

1. 56The market price and trading volume of our Class A common stock may be volatile, which could result in rapid and substantial losses for our stockholders
2. 57A small number of our original investors have the ability to direct the voting of a significant amount of our common stock, and their interests may conflict with those of our other stockholders
3. 58Future sales and issuances of our Class A common stock, securities convertible or exchangeable into our Class A common stock or rights to purchase our Class A common stock could result in additional dilution of the percentage ownership of our shareholders and may cause our share price to fall
4. 59The declaration and payment of dividends to holders of our Class A common stock is at the discretion of our board of directors and we do not expect to pay dividends for the foreseeable future
5. 60We may issue additional preferred stock, the terms of which could adversely affect the voting power or value of our Class A common stock
6. 61Sales or issuances of our Class A common stock could adversely affect the market price of our Class A common stock
7. 62An active, liquid and orderly trading market for our Class A common stock may not be maintained and the price of our Class A common stock may fluctuate significantly

General Risks

1. 63We are a holding company and our operational and consolidated financial results are dependent on the results of our subsidiaries, affiliates, joint ventures and special purpose entities in which we invest
2. 64We may engage in mergers, sales and acquisitions, divestments, reorganizations or similar transactions related to our businesses or assets in the future and we may fail to successfully complete such transaction or to realize the expected value
3. 65A change in tax laws in any country in which we operate could adversely affect us
4. 66We have been and may be involved in legal proceedings and may experience unfavorable outcomes
5. 67If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our Class A common stock or if our operating results do not meet their expectations, our share price could decline
6. 68We are unable to predict the extent to which global pandemics and health crises will negatively affect our operations, financial performance, nor our ability to achieve our strategic objectives. We are also unable to predict how a global pandemic may affect our customers and suppliers