Ladies and gentlemen, thank you for standing by, and welcome to the New Fortress Energy Fourth Quarter and Full-Year 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Josh Kane from Investor Relations. Please go ahead.

Thank you. I'd like to welcome you to the New Fortress Energy fourth quarter and full-year 2020 earnings call. Joining me here today are Wes Edens, our CEO and Chairman of the Board; Chris Guinta, our Chief Financial Officer; Andrew Dete, leading our Brazil efforts; Alap Shah, the Head of Fast LNG; and Jake Suski who leads Zero, our renewable and hydrogen division. Throughout the call, we're going to reference the earnings supplement that was posted to the New Fortress Energy website. If you've not already done so, I'd suggest that you download it now. In addition, we will be discussing some non-GAAP financial measures during the call today. The reconciliations of those measures to the most directly comparable GAAP measures can be found in the earnings supplement. Before I turn the call over to Wes, I would like to point out that certain statements made today will be forward-looking statements including regarding future earnings. These statements, by their nature, are uncertain and may differ materially from our actual results. We encourage you to review the disclaimers in our press release and investor presentation regarding non-GAAP financial measures and forward-looking statements and review the risk factors contained in the quarterly report filed with the SEC. Now, I'd like to turn the call over to Wes.

Great. Thanks, Josh. And thanks everyone for dialing in. So as usual, we will go through our presentation with you all here. And I've got a number of folks from the team that will pitch in their different parts. There's a lot to go through this morning. But we'll try and do so in an expedited fashion, so we leave plenty of time for questions. So, a really big quarter, big year for us. First of all, on the operating side, our operating numbers of the quarter were actually quite good, very much in line with what our expectations were. We had one terminal that was down in Puerto Rico that was part of a scheduled maintenance item. If you ex that out of, we're basically very much right on top of all the operating numbers. And Chris will go through that in details, but solid operating numbers. And again, the three zeros in terms of incidents and injuries and people without were all zero. So we had a very, very solid operating quarter and feel great about that. Developments that are at the end of their development time and just about ready to turn on in Mexico and Nicaragua. The punch line is very much on time and on budget, expect in the next 30 to 45 days both of those are essentially done and ready to go. Feel great about that. In addition to the terminals getting finished, we also announced that we won a bid to provide 250,000 gallons a day to CFE in Baja, which is great. We've long said the organic growth from our existing portfolio was a big, big part of the story going forward. They are the biggest partner for us, not just in Baja, but in Mexico, and we look forward to…

Hey, everybody. Good morning. And just wanted to go a little bit deeper on Brazil just to echo some of the comments that Wes made in the beginning. We're so excited about this because we think really this is the unique market for both volume and margin opportunity in LNG and natural gas. And three main reasons we believe that. One is the market opportunity that exists today. So, a 35 MTPA market with about 10% of LNG imports in 2019. We see basically 4 to 5 times the volume of the current NFE terminals and our terminals in Brazil at 50% to 75% of the margins. The second is the growth of that market. So, we believe the key regulatory reforms are in place to basically emerge from a vertically integrated monopoly run by Petrobras to an open and competitive gas market that will solve supply constraints and also deliver gas to new areas of the country as we see an underdeveloped gas grid and gas infrastructure develop over time. And then, the third is really the ability to combine those volumes with margin. And so, we mentioned the sort of nascent regulatory market and an ability to compete both kind of with LNG sold on Brent oil price linkages, as well as with high priced HFO and diesel in the country. And so, when we looked at this acquisition, we look at the terminals that we're now developing. We just couldn't be more excited about maintaining both the volume and the margin opportunity. I'll flip to page 11, which is an overview of the terminals that we have in Brazil. So, just to start with this, we love the Hygo business because what we saw is a really strategically located portfolio of terminals. So, tremendous job that the…

Yeah, great. Thanks, Andrew. I wanted to provide some detail on this because I don't want people to just lump Brazil in as a single point of reference for us. Each one of these terminals is unique. It has its own attributes, its own place in the marketplace. We have specific development and commercial teams that are in place for each one of these now. And we think that each of these individually has a chance to really, really outperform. So, it's a big focus for us. Andrew and the team have done a great job in integrating with the team that was on the ground already in Brazil for Golar and Hygo, which we think is a terrific team. And so, we are quite excited about that. So, Chris?

Yeah, great. So, turn to page 14. Thanks, Wes. So, thanks, guys. When you look at 14, we highlight the strategic importance of the GMLP acquisition. We're purchasing a fleet of vessels that generates a stable stream of contracted cash flows over the next few years. The acquisition also solves our long-term ship needs as we intend to integrate the vessels in our logistics chain once they roll off their current charters. In fact, when you consider the full build out of the terminals that we acquired in the Hygo transaction and combine that with our own organic growth, we forecast the need of eight FSRUs and four FSUs which, you can see in the left side of the page, pairs very nicely with what we are buying from Golar. So, while we have strong consistent cash flows from the MLP now, once the current charters for these vessels expire, we can plug them into the NFE machine and save materially on our executive logistics costs by owning the assets ourselves. When you take a look at slide 15, you can really see the velocity of growth that NFE is experiencing. As Wes talked about earlier, this page evidences that we've gone from a development company a year ago to an operating business with over $830 million of annualized operating margin once Mexico and Nicaragua come online. Further, as we ramp into the over 5 million gallons per day of committed volumes and combine that with the $300 million of cash flow from the MLP, we will be producing over $1 billion in operating margins. When you add the Fast LNG in it, this takes us to over $1.2 billion in committed operating margins. The breakdown is helpful because you can see in the – the downstream business is the…

Great. Thanks, Chris. So, let's go to page number 18 and talk about gas. As I said before, gas is one of the biggest focuses we have as a company. Gas supply is, in many respects, our biggest risk from a financial standpoint of the company. The gas is generally a stable asset in terms of commodity pricing. It's been quite a bit more stable than the oil-based fuels have been over the course of the last couple of years. Although if you look at last year, from the low to the high, I think the lowest price that I saw in LNG that was sold commercially in the world was about $1.25, the highest price I saw at the very end of the year was nearly $39. So, between them, there's a lot of stability in the middle, but obviously there's big swings on either end of that. And so, we're very, very focused on not getting caught by these swings and being able to provide our own portfolio with supply that we can actually rely on in terms of the prices we use for ourselves and then to our customers. So, when you look at page number 18, our volume is operational in Jamaica and Puerto Rico, 2.1 million gallons per day. Add in Mexico and Nicaragua, that takes it to 3.3 million. Add in Sergipe in the Southeast Asia terminals can take up to 5.1 million gallons per day. Divide that by 1.6. Because 1 million tonnes is basically about 1.6 million gallons. And we have total gas demand today of 3 million tonnes. We've contracted 2.2 million gallons per day, so 1.3 million tonnes. So, with this, we still need supply for about 55% of our portfolio, 1.7 million tons of gas demand. So, let's look…

Thanks, Wes. Good morning all. Just to give you a little bit background on my role and my technical backgrounds. I'm leading the technical solutions group and heading the Fast LNG program here at NFE. I worked at Black & Veatch for 22 years, leading the technologies group prior to joining NFE in January 2020 and was part of the team that worked on Golar Hilli FLNG a few years ago when Black & Veatch was doing engineering and design on that. So, as Wes said, we are very excited to update you on our innovative Fast LNG solution. And so, focusing on page 20, the concept we have here is the same as Hilli, except a couple of things that give us significant advantage on budget and schedule. The first one is, we are using pre-engineered fully modular design instead of a stick build design on Hilli. And then the second one is we are using jack-up rigs instead of a ship to install liquefaction modules. So, flipping on page 21, you can see we are off to a great start with our terrific partners like Chart, Fluor, Baker Hughes, Kiewit and Maersk to get the FLNG ready to be deployed in 20 months. We plan to use Kiewit shipyard in Texas for installation and possibly commissioning prior to taking the jack-up rig to the location of gas source. So, this approach allows us parallel execution of, one, manufacturing our modules in fabrication yard and then, two, preparing jack-up rig and installation modules in a controlled environment such as shipyard. This is a repeatable go-anywhere type of solution. And we plan to repeat this for the next unit FID in the next three to six months. Giving back to Wes.

Great. Thanks a lot. So, the summary of this is, what we've done is change the picture of the FLNG market from a four to five year timeline, 4-plus billion dollars in project development costs into something that is much, much more relatable. So, total cost of the FLNG unit will be about $500 million. It's a 1.4 million tonne output. As Alap said, from the LNTP, from the notice to proceed we gave last week, 16 months until we actually have the gear ready to basically install on to the drill rigs at the shipyard. Produces gas for us, we think at about $3.50. So, very simple math. For every unit that you build and install, you're generating a couple dollars of margin below what we would – are paying for gas in the marketplace. So, $150 million in net margin on a $500 million unit and it gives you tremendous certainty of supply. So, it really – it's not an overstatement to say it changes everything. It basically turns us into a fully integrated company from not just the midstream and downstream business, but now on the upstream side to control our own supply. And if you look at page 22, the next focus for us is going to be where to get the gas from. And the good news is there is stranded gas and offshore gas all over the world. It's on the – in the Gulf Coast just south of this country. There is significant resources off the coast of Brazil. West Africa is probably the single greatest supply in shallow water of gas, but it's really all over the place. And really, our focus now over the course of the next 30 to 60 days will be to identify the gas source for the first of these. And there's lots and lots of options for that. So, it's pretty exciting. And as I said on page 23, we show what the margins are for this. It's very simple. So, $5.50 minus $3.50, $2 on the capacity that we're actually building here is $150 million. So, all good.

Thanks, Wes. So, we've made some significant progress in our hydrogen efforts. After evaluating hundreds of technologies, we've identified the ones that we believe have the path to the lowest cost hydrogen production, meeting our target of $1 per kilogram, with virtually no emissions. So, what we're doing is we're focused on building two very promising businesses along these paths. The first on page 25, calling Zero Blue, which we believe has the most commercially viable near-term path. Zero Blue is focused on commercializing technology that would produce hydrogen from low cost natural resources like natural gas and coal. To make these technologies' emissions free, what you can do is actually capture the CO2 inherently in the process and then sequestering, which is basically permanently storing the CO2 underground. With that, these processes and technologies can be emissions free. A significant advantage of the technologies we've identified here is that they're ready to deploy today at commercial scale. So, we're taking several steps to commercialize Zero Blue. We're securing an exclusive license for technology that's capable of up to 99% inherent carbon capture in the next 30 days. We've found a location to sequester economically the CO2 in that process. And we're actively discussing off-take with a major consumer of hydrogen that we believe will just be a really terrific partner for us in the downstream market. We intend to move forward with our first project in the next three to six months, and we'll look to capitalize this business separately. We believe that that Zero Blue is a really scalable solution that has the potential to meet customer demand in the methanol and ammonia industries, where there's a very, very large and growing opportunity for hydrogen. On page 26, you can see the second business that we're focused on,…

Yeah. One of the first places I think you're going to see this impact is on the shipping side. What's very clear just based on the volumes of interactions and calls we've got is the shipping folks are very, very focused on their carbon footprint. I think there's a move afoot to really impose material taxes on the shipping market in terms of fuels. When Jake talks about government intervention, that's the most positive way I can think about it, is make it more expensive for people and they'll actually do the right things. That I think will translate into LNG volumes in terms of bunkering opportunities, but also ammonia. I think ammonia may be really the fuel of choice that ends up there. And so, if you have the ability to produce blue ammonia at scale, I think the market opportunity for that is tremendous. So, this is something we are deeply committed to, not just from a kind of a moral and ethical standpoint in terms of our place on being as good of a partner as we can be on sustainability issues, but there are massive profitability opportunities, I think, as part of this. And probably the path of this once we get to FID on a solution on the Blue side is really separately capitalize the company. So, be a big participant in it, but separately capitalize with either ourselves or with partners. So, something to keep an eye on. But we're excited about that. Just the last couple of thoughts, and then I'll turn it over to questions. So, on the financing side, page 28, one of the things we are preparing to do as we look towards closing the transactions ahead as we've got some financing work to do, and so what we did…

[Operator Instructions]. Our first question comes from Spiro Dounis with Credit Suisse.

First question on Fast LNG. Should we think about that strategy becoming the primary source of gas for Hygo? So, different supply arrangements and – sorry, to the extent that it is kind of the source, just curious how you're thinking about bridging supply gaps [technical difficulty] six months, but I think as you mentioned, FLNG maybe takes a little over a year. If the customer is sort of not indexed, how do you solve for that middle part?

The answer is that we do think it's going to be a significant portion of our portfolio is going to come from our own activities. But with the geographies that we service, we definitely will have needs to buy in product from the marketplace and probably sell product into the marketplace. It'll make us a much more active LNG counterparty in the business. Again, we're trying to essentially grow wheat in the fields and then sell pasta at the other end. So, it's a vertically integrated strategy, but we have a number of significant trading partners right now in terms of the majors that produce LNG. We think that'll continue on forever. But we do think that the FLNG component of it is going to be a significant part of our portfolio. And both in terms of the economics of it as well as the stability and certainty of supply, it's a meaningful step in the right direction for us.

[technical difficulty] becomes pretty apparent that age is going to be a pretty big step up for you geographically. Curious if there's more significance to that than maybe we're appreciating. And so, I'm curious, to the extent that you establish that anchor customer in Asia, you get the sense that it opens the door to the rest of Asia? In other words, is there a line of other countries behind this customer who maybe didn't want to be first, but are more than happy to follow the blueprint once you establish yourselves in the region?

When you look at the markets around the world, what we think are the five most interesting markets just based on size, of population and of economic growth and potential, Brazil is the top of the list. But then South Africa, Indonesia, Philippines, Vietnam, these are all material markets where we think there's tremendous opportunities. About 75% of the world's supply of LNG goes into the Asian region. So, it's obviously a big, big part of the overall landscape. We are excited about our first transaction there. There's another list of – a long list actually – of transactions that are behind it. And I think that when you look at the world, it's a long ways from New York to the Far East. So, establishing a presence that is local in those regions is imperative if you're going to be successful at it. But I think there's going to be a lot of activity in Asia for us, for sure. And there has to be a first one before there can be a second one. So we're very excited about this this first stab.

Our next question comes from Alonso Guerra-Garcia with Scotiabank.

Really appreciate the detail you provided. The first one on Fast LNG, you've mentioned the high [indiscernible] costs required on some of the floating liquefaction projects in the past. I guess, is the idea here with your concept that you'd essentially be able to tap into various supply sources that are ready to go or is there any meaningful upstream CapEx that you need to tap – you need to spend to sort of tap into a gas field?

I think it's mostly just the ordinary course industrial development. Version 1.0 is always less good than version 2.0 and 3.0. And really, as I said, the genesis of this is, we looked at liquification that had been done on ships and had been done very successfully, the operating history of the Hilli and the other ships has been quite good. And simply asked the question, is it possible to do it in smaller scale on existing marine infrastructure and thus kind of reduce the timeline that it takes to get it and the cost to get it? The key that – the word that a lot use that has been on the tip of our tongues is really modular aspects of it. So, basically, we went back to our counterparties, the, Charts and the Fluors and the Kiewitts and said, can we make these processes modular and thus make them easier to build, easier to install, easier to run? And the answer is yes. And so, I think that this makes so much sense. And really, in maybe the biggest aspect of that all other than just the time that it takes to do it is $0.5 billion for a project is something that is eminently financeable, and that's quite different than $2 billion, $3 billion, $4 billion. Right? And I think that that's one of the real impediments, I think, in the growth of the FLNG market has been exactly that, is that, if I said to you, I've got a project that I want to do, but it takes $3 billion or $4 billion, it takes four or five years to do, that's a pretty long pole to get that thing financed properly. Whereas $0.5 billion that we think is through and is being installed next summer, so the summer of 2022, is a much more relatable, much more addressable thing. It also then we can – we can figure that into our own calculations when we look at supply that we need for our own projects. So, it's just much more usable in every respect.

Maybe as a follow-up, on both the Southeast Asia project and the Shannon, Ireland project, they both seem pretty close to FID here in a matter of months. Can you talk to the, I guess, steps or milestones that are left for those projects before you think FID?

The Southeast Asia is just simply a matter of negotiating contracts. So, there's been intense discussions thus far that have been very, very productive. And we think that that's a matter of a short period of time, we'll be at a good place on that one. Ireland is something where we've had to go back to the drawing board from a permitting standpoint in terms of dealing with the local counterparties there. The market for what we want to provide there, we think, is a terrific one. And we're in the later stages of now being prepared to kind of follow our stuff. So, I think our thoughts on Ireland will be, file the stuff over the course of the next month or so. And hopefully, by the middle of the year, we'll have a real view as to the timing of the terminal.

Our next question comes from Ben Nolan with Stifel.

I'll start with this one. With the new Fast LNG and sort of especially also the high volumes going into the new terminals in Brazil, how does the ISO container or ISO terminal idea or concept play into this or are you sort of maybe shifting back to a more traditional methodology?

It hasn't changed at all. It's really a question, Ben, of finding the right tool for the job. So, when you've got something which is going to be a significant volumes – and for us, the volume cut off is around a 1.25 million, 1.5 million gallons per day. 1.5 million gallons per day, remember, each ISO container is 10,000 gallons. You'd be handling 150 ISO containers, which is something you can imagine doing. But that's a pretty busy terminal. At about those volumes, you're better off to shift to an FSRU strategy. But the ISO container and the ISO Flex system is about ready to be deployed. Our ship has left the shipyard off the coast of – the Gulf Coast, the NFE Zero, which is our first of these small scale ships that we're deploying, and it's headed to Mexican waters. So, both Mexico and Nicaragua will be using ISO Flex. And for a number of the other opportunities that we're looking at that are not on these sheets, we think it's really appropriate. When you get into the high volumes that we expect in the Brazilian terminals and in Ireland for that matter, those are much more FSRUs. So, that's what the equipment that we need there. But even within Brazil, we think the Barcarena terminal is really at the mouth of the Amazon River. There are many, many millions of gallons of diesel and heavy fuel oil that are burned at power plants up and down the Amazon River. And we think some form of ISO Flex will be used there as well. So it is just the tool for the toolkit is what we're looking for. And I really think it's a great solution, and one that we'll find lots of lots of chances to deploy.

As my follow-up, I guess the question is sort of what has changed on producing your own LNG versus maybe Pennsylvania? Or why wasn't this concept really rolled out, I don't know, three or four years ago? What's different now relative to sort of when you first had the idea?

If you're recommending we should have done a few years ago, I missed that phone call somewhere, Ben. It would have been a helpful one to get. Look, we have been focused on trying to close the gap on our own supply for a long time. And Pennsylvania is a project that we think has a lot of merits. We haven't given up on that by any means. But we've spent a lot of time in looking at it. And really what accelerated our thoughts in the FLNG was with the Hygo and the MLP transaction where we acquired 50% of the Hilli that kind of brought us into the tent on the IP side. We had a great partner in the form of Golar. There may be a number of ways that we work with these guys. Maybe we'll separately capitalize the company and look at it as a – there are a whole host of things that came out of it. But basically, we took our own liquification technical team, which is a very deep and capable group, and really challenged them to look at existing marine infrastructure and see if we could shorten this up and make it more relatable from a size standpoint. And that's what happened. And so, we feel really great about the process with it. And as usual, it comes down to the people and kind of suspending disbelief and try and make things happen. But I think the FLNG really does change everything because it takes our great midstream and downstream business and produces now our own supply for it, at least in large part. And I think that that's just a materially significant advancement for the business model. That's for sure.

And just as a clarification, if I could, the new Southeast Asia terminal is different than the Philippines thing that had been announced last year. Am I correct?

It is. Specifically, it's a purchase of an existing power plant with a right to then double the size of it, so kind of a 300 megawatt power plant that we would double to 600 megawatts in a country that has got, we think, a tremendous amount of opportunity for incremental demand. So, it's anchored by a very significant power asset and we are in the very late stages of kind of getting that finalized. But it is different than the Philippines MOU we signed at the end of last year.

Our next question comes from Sean Morgan with Evercore.

With the FLNG solution that that you guys are proposing now, $3.50, I guess sort of midpoint is pretty attractive. It's difficult sometimes with apples to apples to kind of figure out the true cost. Is that an operational marginal cost per MMBtu or is that including the $500 million of CapEx that you're sort of ballparking for the conversion of the jack-up rig and the installation of the midsize modules?

It's actually really simple. So, what we're assuming in this is a base cost of gas of $2.50 on an offshore basis, $0.75 to liquefy and operating costs and $0.25 cents for the marine and OpEx. So, it does not take into account the capital expenditure. And so, that's why I quoted as saying, at $3.50, we're basically producing $150 million in margin on a $500 million capital base. Right? So, that's a very simple way of doing. If we then apply financing to it, other things, I like to look at things on an unleveraged basis. I think it makes things simpler, it makes it harder to get confused. And I think, frankly, when you look at those three pieces, $2.50 and $0.75 and $0.25, the $2.50 may well end up being a very high estimate. Remember offshore, where the stranded gas is, a lot of times it is a derivative of oil activity. So, people are drilling for oil, there's a lot of associated gas that comes along with it. And especially when you're in deepwater, that is not an asset, but it's a liability. And so, that gas is reinjected in many cases, or it is flared, which is of course a horrible environmental risk. And of course, they're also just wasting the asset, basically. So, it may well be that we can actually do a lot better than this. And so, we use a range of $3 to $4. But I think that, as we get into this – and for people that are listening on the phone that have gas resources, give us a call. We've already had a number of people call us. But if you've got you know gas in your business and you'd like to talk to us about it, we think would be very interested to do so. I think the jack-up rig is a great tool for shallow water. So, it always wants you to access pre-processed molecules that come through pipelines without additional CapEx, that's great. The offshore, the deepwater is where perhaps the greater opportunities are in the semi-submersible, which are another form of marine infrastructure similar to the jack-up rig, but suitable for kind of deep water solutions. It may really be the tool that goes along with that. So, this is the top of the first inning in terms of the development of this as a business line. I think there are many, many opportunities, but the unit economics are actually really straightforward. So, $2.50, $0.75 and $0.25, that's our base case. And I think we've got a lot of room for improvement beyond that.

I appreciate that this would plug sort of your operation on the regas side in terms of the demand gap that you all have at 1.4 MTPA versus the 1.7 MTPA you're projecting kind of medium term. But you're going to be working with an upstream partner that generally these companies try to capitalize on prices if, for instance, like Saudi production were to go down and oil prices go up, you'd be able to pass kind of the cost through to yourself, but your end customer would still be subject to fluctuation in oil prices, right, just like any commodity buyer. [indiscernible] is what I'm saying.

That's true. But I think I've said this many times, if you want to make a great fortune, solve a great problem. And the great problem that people have in getting energy around the world is they are indexed to a volatile index that has no relationship to what their core business is. So, I think once we get proof of concept and we're producing this and we have a view as to what our own price metrics are, I think there's a very real opportunity for us to pass this through to our customers, give them certainty of not just supply, but a price. And I think that changes everything. I really do. So, you have to walk before you run, but I feel like – there has been – since 2006, there has been a real move to distance gas prices from oil prices. They've moved in lockstep for decades together. They really split apart in 2006 when oil went to $140 and gas went down. So, the thing really split apart. There definitely is a relationship between the two, but it's not a pure relationship. And I think from the customer standpoint, there's really no interest in having that relationship for the most part. They don't have a Brent based off-take. That's not what they're looking for. That's just what they are forced to take because there's no other alternative. So, this really could be I think a revolutionary step in terms of what price you're able to provide your customers with, and that's a big deal. The math on this is, as I said, $1.2 billion in margin on what we have right now, if we build out all the stuff that Andrew and others are working on, that goes to $1.6 billion. If we then build incremental FLNG to service all that, it adds another billion dollars. So, you're taking yourself from a negligible margin a year ago to a really a bright prospect of $2.5 billion and growing beyond that. So, it's a big, big moment for us. And so, a lot of work to do, obviously, in proving this out. But it's definitely a huge step in the right direction.

And our last question comes from Greg Lewis with BTIG.

Wes, just kind of a big picture question. And I think you kind of touched on it in some of your comments around gas exposure. And as we think about – as you build out the portfolio, clearly, you're short gas, clearly you're going to address that. As we think about, as the business builds out, is this something where we should expect New Fortress to maybe control 50% of its gas, less than the 80% that you'd want to be long gas? And any kind of views on how you're thinking about that would be helpful.

I think that the goal would be eventually to supply the bulk of our activities from this. Geography plays a role in this. This business is, at the end of the day, logistics business, right? You're getting the gas in one place and you're supporting customer activities in other parts. And it's a big world. So, the map back in the early part of the presentation is a great visual because it shows you the distances that you're trying to conduct your businesses in. And I think that there's definitely a role for us to buy gas from our trading counterparties. And there's probably a role for us to sell gas to them as we produce in different places. But on balance, I think the economics are overwhelmingly positive, if you're able to do this successfully of supply your own gas at a material discount to where the market is and also then be able to control your own supply. So, it's a huge benefit from an operational logistics standpoint. And economically, of course, the math is really easy. But we'll see. I think this first one we feel terrific about. We bought the first two rigs. They'll be shipped across the ocean here. In the near term, we've got a great technical team that is working on it. And the next big milestone for us is to identify a gas source. So, we have lots of thoughts about that. And we've had a number of conversations about it. But again, if there's folks that have interest in talking to us about this, they should give us a call. And then, I think you get the first one done, I think there's many that could fall in succession.

Thank you. I would now like to turn the call back over to Wes Edens for any closing remarks.

Great. Well, thank you all for the time to go through this. We have a lot of different materials. I didn't want to have any one element of this dominate the conversation. Obviously, FLNG is a huge, huge step for us. Our operational success in the quarter was a very, very good one. We've added material to our terminals portfolio. And last and certainly not least, I think that the whole move to kind of zero emissions on the hydrogen side is material. And so, Jake did a great job of summarizing what has been an intense period of activity for us. And I feel like that's got opportunity that is really material. And I said, again, I think the place you're going to see it manifest itself most immediately is on the shipping side. And we think that those economic upsides there are substantial. So, there's a lot to go through. And we've got a big staff that Josh and others that can help folks get through it. But thanks for your time. And we look forward to talking to you in our next quarterly update, which is not too far down the road, kind of 45 days from now. So thank you.

Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.