New Fortress Energy's Q1 2025: Key Contradictions in Capital Structure, Project Updates, and Strategic Opportunities

Capital structure and refinancing strategies, FLNG 2 and Nicaragua project updates, restricted cash and capital structure, Puerto Rico power opportunity and strategy, and FLNG 2 CapEx and progress are the key contradictions discussed in New Fortress Energy's latest 2025Q1 earnings call.



Core Earnings and EBITDA Trends:
- New Fortress Energy's core earnings have remained consistent at around $100 million to $116 million over the past quarters.
- EBITDA for the first quarter was $82 million, aligned with EBITDA plus gains expected to reach $1.25 billion to $1.5 billion for the year.
- The trends were influenced by the absence of one-off events and the expectation of significant gains from asset sales.

Asset Sales and Debt Reduction:
- The company's Jamaica asset sale closed with a net proceeds of $800 million and a gain of $430 million.
- This sale represents a significant deleveraging event, with $227 million in debt repayment and $50 million in fees.
- The sale was part of a strategy to simplify the balance sheet and reduce debt costs.

Brazil and Puerto Rico Project Updates:
- In Brazil, the Barcarena complex is expected to reach COD in the second half of this year, with two power plants in progress.
- In Puerto Rico, the company plans to convert 925 megawatts of diesel power to natural gas, representing a $300 million annual fuel cost reduction.
- These developments are aimed at addressing energy system challenges and securing long-term contracts.

Capital Structure and Liquidity:
- New Fortress Energy ended Q1 with $448 million in cash on hand and $275 million available under their revolving credit facility.
- Post-Jamaica sale, the company has over $1.1 billion in pro forma liquidity, enhancing its ability to address debt maturities.
- The company plans to refinance its corporate balance sheet, extending terms to align with the duration of underlying cash flows.