New Fortress Energy Retains Restructuring Advisors, Suggests Sell

New Fortress Energy has retained restructuring advisors, indicating potential financial difficulties. The company previously retained Alvarez & Marsal to advise on a potential debt restructuring. New Fortress Energy's stock price has declined significantly since its IPO in 2019.

Excelerate Energy (NYSE: EE) has raised its full-year 2025 adjusted EBITDA guidance to reflect the acquisition of New Fortress Energy's business in Jamaica. The company's stock price gained 15.1% post-market on Tuesday, driven by the updated financial outlook [1].

The acquisition, closed in May, has positioned Excelerate as the sole LNG infrastructure provider in the Caribbean. The company now forecasts FY 2025 adjusted EBITDA of $420M-$440M, with pro forma adjusted EBITDA for both the March 2025 quarter and the full year ended 2024 aligning with management expectations [2].

The strategic value of the acquisition extends beyond Jamaica. The Caribbean's geographic centrality makes it a natural hub for LNG bunkering, a sector expected to grow as shipping regulations tighten. Excelerate's existing expertise in floating storage and regasification units (FSRUs) and its ability to integrate Venture Global LNG's supply create a seamless, low-risk supply chain [2].

Meanwhile, New Fortress Energy's recent retention of restructuring advisors indicates potential financial difficulties. The company previously retained Alvarez & Marsal to advise on a potential debt restructuring, and its stock price has declined significantly since its IPO in 2019. This development may have implications for Excelerate's acquisition, as New Fortress Energy's financial health could impact the value of the acquired assets [1].

Despite these external challenges, Excelerate's strategic focus on high-margin, long-term assets and operational synergies positions it to outperform sector averages. The company's ability to generate stable cash flows from long-term contracts, combined with growth levers in LNG bunkering and CHP expansion, offers a balanced risk-reward profile [2].

For investors, Excelerate's acquisition represents a high-conviction play in the LNG infrastructure sector. The company's disciplined capital structure and operational expertise mitigate potential risks, such as regulatory delays or geopolitical shifts in LNG markets [2].

References:
[1] https://seekingalpha.com/news/4473940-excelerate-energy-hikes-full-year-ebitda-guidance-to-reflect-jamaica-acquisition
[2] https://www.ainvest.com/news/excelerate-energy-strategic-jamaica-acquisition-raising-2025-ebitda-guidance-2507/