New Fortress Energy Inc. (NFEGP)

New Fortress Energy Inc. is a global energy infrastructure company that owns and operates natural gas and liquefied natural gas (LNG) infrastructure, along with an integrated fleet of ships and logistics assets to deliver turnkey energy solutions to global markets. The company's business model spans the entire production and delivery chain from natural gas procurement and liquefaction to shipping, logistics, facilities, and conversion or development of natural gas-fired power generation. The industry is highly competitive, with competition based on brand recognition, product quality, price, and innovation, and the company competes for sales of LNG and natural gas primarily with LNG distribution companies, major integrated marketers, producer marketers, small geographically focused marketers, and aggregators.

The company's competitive positioning is supported by its integrated LNG supply and delivery model, which includes its own floating liquefaction unit, FLNG 1, which began producing LNG in July 2024. The company has binding contracts for LNG volumes from two separate U.S. LNG facilities, each with a 20-year term, expected to commence in 2027 and 2029. The company's downstream customers include power, transportation, and industrial users, as well as local power generation and distribution companies, including private and government-owned entities. Revenue from one customer constituted 30% of total revenue in 2025 ¹, and no other customers comprised more than 10% of revenue.

The company generates revenue through an integrated gas-to-power model, with revenue streams including operating revenue from the sale of LNG, natural gas, steam, and power, vessel charter revenue, contract novation income, and other revenue. The company's business is conducted through two operating segments: Terminals and Infrastructure, which includes the entire production and delivery chain, and Ships, which includes vessels chartered under long-term arrangements to third parties. The company seeks to enter into long-term take-or-pay contracts to deliver natural gas or LNG, with pricing largely based on the Henry Hub index price plus a fixed fee component.

The Terminals and Infrastructure segment includes the San Juan Facility in Puerto Rico, which became fully operational in July 2020 and serves as a supply hub for the PREPA San Juan Power Plant and industrial end-users. In December 2025, the company was awarded a new 7-year gas supply agreement with PREPA to deliver up to 75 TBtu of natural gas annually from the San Juan Facility ². The La Paz Facility in Baja California Sur, Mexico, commenced operations in the fourth quarter of 2021 and supplies natural gas to CFE power plants and the La Paz Power Plant, which has a maximum capacity of up to 135 MW of power. In the third quarter of 2024, the company executed a 10-year gas sales agreement to supply natural gas to additional CFE facilities on a take-or-pay basis. The Santa Catarina Facility in Brazil was placed in service in the fourth quarter of 2024 and is expected to have a total addressable market of 15 million cubic meters per day of natural gas. The Barcarena Facility in Brazil is capable of delivering almost 600,000 MMBtu from LNG per day and storing up to 160,000 cubic meters of LNG, and will supply a new 630 MW combined cycle natural gas-fired power plant. The company is also developing the Puerto Sandino Facility in Nicaragua, which is expected to supply gas to a new approximately 300 MW natural gas-fired power plant under a 25-year power purchase agreement, and the Ireland Facility, where in March 2025, An Coimisiún Pleanála granted the company's application to construct a 600 MW power plant.

The Ships segment includes one vessel, the Nusantara Regas Satu, an FSRU with a capacity of 125,000 cubic meters of LNG, which is chartered under a long-term arrangement to a third party and is part of the Energos Infrastructure platform. The company also has vessels in the Terminals and Infrastructure segment, including the Orion Sea, Energy Endurance, Energos Celsius, NFE Penguin, Gaslog Singapore, Energos Maria, Energos Grand, and Energos Princess, which are used in the company's terminal or logistics operations or sub-chartered to third parties.

On May 14, 2025, the company completed the sale of its Jamaica Business, receiving cash proceeds of approximately $678.5 million ³, with an additional $98.6 million of proceeds held in escrow ⁴. The proceeds were partially used to repay all outstanding South Power Bonds of $227.2 million ⁵ and certain transaction costs. In November 2025, the company completed a transaction with Energos, early terminating long-term charter agreements for certain vessels and novating associated sub-charter agreements in exchange for cash consideration of $150.0 million ⁶, resulting in a gain of $217.1 million ⁷. In December 2025, the company entered into a settlement agreement to receive a total of $142.0 million ⁸ as equitable adjustment related to the early termination of a contract to provide emergency power services in Puerto Rico. On March 17, 2026, the company entered into a restructuring support agreement with certain lenders and noteholders to implement a comprehensive restructuring of its principal funded debt obligations, which contemplates the separation of the company into two independent entities, BrazilCo and CoreCo, and the exchange of debt for new debt and equity securities, including approximately $571.3 million in senior secured term loans ⁹ and CoreCo Convertible Preferred Stock with an aggregate liquidation preference of approximately $2.46 billion ¹⁰.

Total revenues for the year ended December 31, 2025 were $1,504.037 million ¹¹, compared to $2,358.944 million ¹² for the year ended December 31, 2024. Net loss for the year ended December 31, 2025 was $1,831.953 million ¹³, compared to a net loss of $244.537 million ¹⁴ for the prior year. The company reported a basic and diluted loss per share of $6.63 ¹⁵ for 2025, compared to a basic loss per share of $1.25 ¹⁶ and a diluted loss per share of $1.26 ¹⁷ for 2024. The company's operating loss was $1,120.414 million ¹⁸ for 2025, compared to operating income of $528.479 million ¹⁹ for 2024. The company recognized asset impairment expense of $860.865 million ²⁰ and goodwill impairment expense of $598.110 million ²¹ in 2025.

A primary growth vector is the development of the Puerto Sandino Facility in Nicaragua, where construction of the power plant is substantially complete, and the company expects to complete the construction of the terminal and commission both the terminal and the power plant during 2026. The company has entered into a 25-year power purchase agreement with Nicaragua's electricity distribution companies and expects to utilize approximately 57,000 MMBtu from LNG per day to provide natural gas to the power plant ²². Another growth vector is the Ireland Facility, where in March 2025, An Coimisiún Pleanála granted the company's application to construct a 600 MW power plant and a separate application to construct the 220kV electricity interconnect. The company is able to fuel this power plant via its LNG marine import terminal, if approved, or using gas provided from its permitted pipeline interconnection. The company also has binding contracts for LNG volumes from two separate U.S. LNG facilities, each with a 20-year term, which are expected to commence in 2027 and 2029, providing a long-term supply source for expansion.

The company's margin and cost outlook is influenced by its LNG supply strategy. Pricing for feed gas purchased for own Fast LNG production is based on Henry Hub, which allows the company to mitigate exposure to variability in LNG prices. The company's long-term supply contracts also contain pricing based on Henry Hub. However, until the commencement of these long-term supply contracts, a portion of the company's LNG needs will be purchased on the open market, which exposes the company to volatility in LNG pricing. The company's cost of LNG increased to $8.93 per MMBtu for the year ended December 31, 2025 ²³ compared to $7.20 per MMBtu for the year ended December 31, 2024 ²⁴, primarily driven by higher gas prices as the average Henry Hub index pricing increased by 51% ²⁵.

The company's operational outlook includes a focus on operational efficiency of its facilities and cost-effective completion of in-process development projects following the Restructuring Transaction. The company does not plan to incur significant capital expenditures to develop its second 1.4 MTPA Fast LNG unit (FLNG 2) and is in active discussions with third parties to co-develop FLNG 2, which is expected to take approximately 24 months to complete from the time a partner is engaged. The estimated remaining cost to complete FLNG 2 is expected to be between $750.0 million and $1,500.0 million ²⁶. The company expects to place the Barcarena Power Plant into service in the first half of 2026 and expects the PortoCem Power Plant to be completed in 2026.

The company's capital allocation strategy is significantly impacted by the Restructuring Transaction. The company did not declare or pay any dividends on its Class A common stock during the year ended December 31, 2025 ²⁷. Under certain intercompany agreements entered into in conjunction with the debt exchange and refinancing transactions completed in the fourth quarter of 2024, New Fortress Energy Inc. is no longer permitted to pay dividends to common shareholders declared after September 30, 2024. The company's capital expenditures for the year ended December 31, 2025 were $908.8 million ²⁸, of which $257.9 million ²⁹ was paid significantly beyond vendors' customary payment terms and presented as a financing activity. The company's remaining committed capital expenditures towards development projects is approximately $271 million ³⁰.

A significant headwind is the company's liquidity challenges and the substantial doubt as to its ability to continue as a going concern. The company did not make certain interest and principal payments that were due during the fiscal quarters ended December 31, 2025 and March 31, 2026 on the New 2029 Notes, Term Loan A Credit Agreement, Term Loan B Credit Agreement, Revolving Credit Agreement, and EB-5 Loan Agreement, resulting in events of default. Additionally, the company did not make interest and principal payments due on March 15 and March 31, 2026, respectively, on the 2026 Notes and the 2029 Notes, which will result in events of default under each series of notes on April 15 and April 30, 2026, respectively. The indentures and credit agreements underlying substantially all of the company's outstanding debt include cross-acceleration and/or cross-default provisions that, upon such acceleration, all of the company's other outstanding debt would be payable on demand.

Another constraint is the regulatory environment, particularly in Ireland, where the continued development of the Ireland Facility is uncertain due to multiple risks, including regulatory risks, that could preclude the development of the project. The company also faces risks related to the FERC determination that the San Juan Facility is subject to its jurisdiction, with the application for authorization to operate remaining pending. Additionally, the company's operations in Puerto Rico are subject to ongoing USCG regulatory actions, including a Letter of Warning issued in September 2024 regarding ship-to-ship transfers of LNG operations within the San Juan port limits.

Management's message emphasizes the company's focus on executing the Restructuring Transaction to address its capital structure and restore financial stability. The company entered into a restructuring support agreement on March 17, 2026, with certain lenders and noteholders representing over 95% of its approximately $5.8 billion principal amount of aggregate indebtedness ³³, including approximately 93% of holders of the 2026 Notes ³⁴, 87% of holders of the 2029 Notes ³⁵, 98% of holders of the New 2029 Notes ³⁶, 100% of lenders under the Term Loan A Credit Agreement ³⁷, 88% of lenders under the Term Loan B Credit Agreement ³⁸, and 100% of lenders of the Revolving Credit Facility ³⁹ as of April 1, 2026. The strategic priorities emphasized for the period ahead include focusing on operational efficiency of the company's facilities and cost-effective completion of in-process development projects, with the objective of returning to profitability and generating shareholder value. Management also highlights the planned separation of the company into two independent entities, BrazilCo and CoreCo, as part of the Restructuring Transaction, and the expectation that the company will no longer own BrazilCo, including the Barcarena Facility, Barcarena Power Plant, Santa Catarina Facility, and PortoCem Power Plant, upon effectuation of the Restructuring Transaction.

For the year ended December 31, 2025, total revenues were $1,504.037 million ⁴⁰, compared to $2,358.944 million ⁴¹ for the year ended December 31, 2024. Net loss was $1,831.953 million ⁴² for 2025, compared to a net loss of $244.537 million ⁴³ for 2024. Diluted loss per share was $6.63 ⁴⁴ for 2025, compared to a diluted loss per share of $1.26 ⁴⁵ for 2024. Operating loss was $1,120.414 million ⁴⁶ for 2025, compared to operating income of $528.479 million ⁴⁷ for 2024. The company recognized asset impairment expense of $860.865 million ⁴⁸ in 2025, primarily related to the Fast LNG project and the ZeroParks hydrogen project, and goodwill impairment expense of $598.110 million ⁴⁹ in 2025, primarily in the Terminals and Infrastructure segment. The company recorded a gain on sale of $670.938 million ⁵⁰ in 2025, including a gain of $453.8 million ⁵¹ from the sale of the Jamaica Business and a gain of $217.1 million ⁵² from the vessel sale transaction with Energos. Interest expense was $777.845 million ⁵³ for 2025, compared to $316.337 million ⁵⁴ for 2024, driven by higher debt balances and increased borrowing rates, as well as lower capitalized interest of $339.6 million ⁵⁵ in 2025 compared to $501.9 million ⁵⁶ in 2024. The company's cash and cash equivalents were $226.453 million ⁵⁷ as of December 31, 2025, and total debt (current and long-term) was $8,178.919 million ⁵⁸. The Terminals and Infrastructure segment reported total revenues of $1,384.693 million ⁵⁹ and a Segment Operating Margin of $243.172 million ⁶⁰ for 2025. The Ships segment reported total revenues of $119.344 million ⁶¹ and a Segment Operating Margin of $97.157 million ⁶² for 2025.

The company faces substantial doubt as to its ability to continue as a going concern, dependent on completing the Restructuring Transaction, which is subject to numerous conditions, milestones, and approvals, including sanction by the UK High Court and recognition in the United States under chapter 15 of the U.S. Bankruptcy Code. The company is in default on approximately $8.3 billion aggregate principal amount of indebtedness as of December 31, 2025 ³¹, with events of default under the New 2029 Notes, Term Loan A Credit Agreement, Term Loan B Credit Agreement, Revolving Credit Agreement, and EB-5 Loan Agreement, and pending defaults on the 2026 Notes and 2029 Notes. The company's operations are concentrated on a limited number of customers, with revenue from one customer constituting 30% of total revenue in 2025 ³², and the loss of a significant customer could adversely affect operating results. The company is subject to extensive regulation, including the FERC determination that the San Juan Facility is subject to its jurisdiction, with the application for authorization to operate remaining pending, and ongoing USCG regulatory actions regarding ship-to-ship transfers in San Juan. The company has identified material weaknesses in its internal control over financial reporting, including deficiencies related to the assessment and disclosure of debt covenant events, insufficient personnel with US GAAP knowledge, IT general controls, classification of cash transactions, and accounting for income taxes.