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Pennybacker Furthers Infrastructure Investments with Acquisition of Miami LNG

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Pennybacker Capital Management has signed an agreement to acquire a small-scale LNG business in Miami, Florida, from New Fortress Energy (NFE). The Miami Facility includes a liquefaction plant capable of producing 8,300 MMBtu of LNG daily and has a storage capacity of ~1,000 cubic meters. It can export LNG to both FTA and non-FTA countries. Financial terms were not disclosed. The acquisition is expected to conclude in Q3 2024, subject to customary conditions. Pennybacker plans to maintain existing customer relationships and expand services to new U.S. and Caribbean markets.

Positive
  • Pennybacker Capital Management is acquiring a small-scale LNG facility with a production capacity of 8,300 MMBtu per day.
  • The Miami Facility has a storage capacity of ~1,000 cubic meters and can export to FTA and non-FTA countries.
  • The acquisition is expected to enhance Pennybacker's market presence and offer cost-effective LNG solutions to new U.S. and Caribbean customers.
Negative
  • None.

This acquisition signifies Pennybacker's strategic move to expand its infrastructure portfolio, particularly in the energy sector. While the financial terms were not disclosed, the fact that Pennybacker is acquiring a facility capable of producing 8,300 MMBtu of LNG per day suggests a significant investment. LNG, or liquefied natural gas, is a growing market, especially for countries looking to diversify their energy mix and reduce carbon emissions. The capacity to export to both FTA and non-FTA countries broadens the potential market, which is a positive indicator for future revenue streams.

From a retail investor's perspective, the acquisition could mean long-term growth potential for Pennybacker, as the demand for LNG is expected to rise. However, the impact on New Fortress Energy Inc. (NFE) could be more nuanced. For NFE, divesting the Miami LNG facility might free up resources to focus on their core operations or other strategic investments. Investors should monitor how this divestment aligns with NFE's overall strategy and its impact on their financial health in subsequent quarters.

The LNG market is witnessing a significant uptick due to increased global demand for cleaner energy alternatives. The Miami LNG facility's ability to load and export LNG via both truck and rail adds flexibility to its operations, making it a valuable asset. This acquisition aligns with the broader trend of investment in sustainable and cost-effective energy solutions, reflecting a growing market opportunity.

For retail investors, it's important to consider the strategic implications of this acquisition. Pennybacker's move to integrate this facility suggests a focus on long-term market trends and a robust understanding of the LNG sector's potential growth. The ability to serve U.S. and Caribbean markets with the facility's output can drive significant revenue, providing a buffer against market volatility. However, the actual financial impact will depend on Pennybacker's execution and market conditions over the next few years.

AUSTIN, Texas, July 9, 2024 /PRNewswire/ -- Pennybacker Capital Management, LLC (Pennybacker), a leading real assets investment manager, has entered into a definitive agreement to acquire a small-scale LNG business (Miami Facility) based in Miami, Florida, from New Fortress Energy Inc. (Nasdaq: NFE). Financial terms were not disclosed. The transaction is expected to close in the third quarter of 2024 subject to customary terms and conditions.

The Miami-based business includes a small-scale liquefaction facility capable of producing 8,300 MMBtu of LNG per day with onsite storage capacity of ~1,000 cubic meters. The facility can load LNG into both truck and rail and is permitted to export LNG to Free Trade Agreement (FTA) and non-FTA countries.

"We look forward to working with the Miami LNG Team to continue serving its existing customers, as well as growing the platform to provide cost effective and sustainable LNG solutions to new U.S. and Caribbean customers," said Sam Warfield, Managing Director and Head of Critical Infrastructure at Pennybacker.

"This transaction exemplifies Pennybacker's unparalleled ability to identify and execute on investment opportunities through both the strength and relationships of our investment team and use of data analytics throughout the underwriting process, resulting in significant value creation for our investors throughout the lifecycle of the investment," said Tim Berry, Founder, CEO, and Co-CIO of Pennybacker.

About New Fortress Energy Inc.

New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to help address 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 and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. Collectively, NFE's assets and operations reinforce global energy security, enable economic growth, enhance environmental stewardship and transform local industries and communities around the world. For more information, visit https://www.newfortressenergy.com/

About Pennybacker

Pennybacker Capital Management, LLC is a real assets investment manager based in Austin, Texas, with approximately $4 billion in assets under management. The firm pursues real estate and infrastructure strategies through closed-end and open-ended vehicles across the capital structure. For more information, visit https://www.pennybackercap.com.

Media Contacts

investorrelations@pennybackercap.com

Cision View original content:https://www.prnewswire.com/news-releases/pennybacker-furthers-infrastructure-investments-with-acquisition-of-miami-lng-302192087.html

SOURCE Pennybacker Capital Management, LLC

FAQ

What company is acquiring the Miami LNG facility from New Fortress Energy (NFE)?

Pennybacker Capital Management is acquiring the Miami LNG facility from New Fortress Energy (NFE).

What is the production capacity of the Miami LNG facility acquired by Pennybacker?

The Miami LNG facility has a production capacity of 8,300 MMBtu per day.

When is the acquisition of the Miami LNG facility by Pennybacker expected to close?

The acquisition is expected to close in the third quarter of 2024.

Can the Miami LNG facility export to non-FTA countries?

Yes, the Miami LNG facility is permitted to export LNG to both FTA and non-FTA countries.

What are the future plans for the Miami LNG facility post-acquisition by Pennybacker?

Pennybacker plans to continue serving existing customers and expand LNG solutions to new U.S. and Caribbean markets.

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